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

Marginal note:Limitation on appeals

• 92 (1) Despite section 90, if a person has filed a notice of objection to an assessment, the person may appeal to the Tax Court of Canada to have the assessment vacated, or a reassessment made, only with respect to

  • (a) an issue in respect of which the person has complied with subsection 87(2) in the notice and the relief sought in respect of the issue as specified in the notice; or

  • (b) an issue referred to in subsection 87(5), if the person was not required to file a notice of objection to the assessment that gave rise to the issue.

• Marginal note:No appeal if waiver

  (2) Despite section 90, a person is not permitted to appeal to the Tax Court of Canada to have an assessment vacated or varied in respect of an issue for which the person has waived the right of objection or appeal.

Marginal note:Institution of appeals

93 An appeal to the Tax Court of Canada under this Act must be instituted in accordance with the Tax Court of Canada Act.

Marginal note:Disposition of appeal

• 94 (1) The Tax Court of Canada may dispose of an appeal from an assessment by

  • (a) dismissing it; or

  • (b) allowing it and

    • (i) vacating the assessment,

    • (ii) varying the assessment, or

    • (iii) referring the assessment back to the Minister for reconsideration and reassessment.

• Marginal note:Partial disposition of appeal

  (2) If an appeal raises more than one issue, the Tax Court of Canada may, with the written consent of the parties to the appeal, dispose of a particular issue by

  • (a) dismissing the appeal with respect to the particular issue; or

  • (b) allowing the appeal with respect to the particular issue and

    • (i) varying the assessment, or

    • (ii) referring the assessment back to the Minister for reconsideration and reassessment.

• Marginal note:Disposal of remaining issues

  (3) If a particular issue has been disposed of under subsection (2), the appeal with respect to the remaining issues may continue.

• Marginal note:Appeal to Federal Court of Appeal

  (4) If the Tax Court of Canada has disposed of a particular issue under subsection (2), the parties to the appeal may, in accordance with the provisions of the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from decisions of the Tax Court of Canada, appeal the disposition to the Federal Court of Appeal as if it were a final judgment of the Tax Court of Canada.

Marginal note:References to Tax Court of Canada

• 95 (1) The Minister and a person may agree that a question arising under this Act, in respect of any assessment or proposed assessment of the person, should be determined by the Tax Court of Canada.

• Marginal note:Time during consideration not to count

  (2) For the purposes of making an assessment, filing a notice of objection to an assessment or instituting an appeal from an assessment, the period beginning on the day on which proceedings are instituted in the Tax Court of Canada to have a question determined under subsection (1) and ending on the day on which the question is finally determined is not to be counted in the computation of

  • (a) the seven-year period referred to in subsection 85(1);

  • (b) the period within which a notice of objection to an assessment may be filed under section 87; and

  • (c) the period within which an appeal may be instituted under section 90.

Marginal note:Reference of common questions to Tax Court

• 96 (1) If the Minister is of the opinion that a question arising out of one and the same transaction or occurrence, or series of transactions or occurrences, is common to assessments or proposed assessments in respect of two or more persons, the Minister may apply to the Tax Court of Canada for a determination of the question.

• Marginal note:Contents of application

  (2) An application made under subsection (1) must set out

  • (a) the question in respect of which the Minister requests a determination;

  • (b) the names of the persons that the Minister seeks to have bound by the determination; and

  • (c) the facts and reasons on which the Minister relies and on which the Minister based or intends to base the assessments of each person named in the application.

• Marginal note:Service

  (3) A copy of any application made under subsection (1) must be served by the Minister on each of person named in the application and on any other person that, in the opinion of the Tax Court of Canada, is likely to be affected by the determination of the question.

• Marginal note:Determination of question by Tax Court

  (4) If the Tax Court of Canada is satisfied that a determination of a question set out in an application made under subsection (1) will affect assessments or proposed assessments in respect of two or more persons that have been served with a copy of the application, the Tax Court of Canada may make an order naming the persons in respect of which the question will be determined and may

  • (a) if none of the persons named in the order has appealed from such an assessment, proceed to determine the question in any manner that it considers appropriate; or

  • (b) if one or more of the persons named in the order has or have appealed, make any order that it considers appropriate joining a party or parties to that appeal or those appeals and proceed to determine the question in any manner that it considers appropriate.

• Marginal note:Determination final and conclusive

  (5) Subject to subsection (6), if a question set out in an application made under subsection (1) is determined by the Tax Court of Canada, the determination is final and conclusive for the purposes of any assessments of persons named in an order by the Court under subsection (4).

• Marginal note:Appeal

  (6) If a question set out in an application made under subsection (1) is determined by the Tax Court of Canada, the Minister or any of the persons that have been served with a copy of the application and that are named in an order of the Court under subsection (4) may, in accordance with the provisions of this Act, the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from decisions of the Tax Court of Canada, appeal from the determination.

• Marginal note:Parties to appeal

  (7) The parties that are bound by a determination under subsection (4) are parties to any appeal from the determination.

• Marginal note:Time during consideration not to count

  (8) For the purposes of making an assessment, filing a notice of objection to an assessment or instituting an appeal from an assessment, the period referred to in subsection (9) must not be counted in the computation of

  • (a) the seven-year period referred to in subsection 85(1);

  • (b) the period within which a notice of objection to an assessment may be filed under section 87; and

  • (c) the period within which an appeal may be instituted under section 90.

• Marginal note:Excluded periods

  (9) The period that is not to be counted in the computation of the periods referred to in paragraphs (8)(a) to (c) is the period beginning on the day on which a copy of an application made under this section is served on a person under subsection (3) and

  • (a) in the case of a person named in an order of the Tax Court of Canada under subsection (4), ending on the day on which the determination becomes final and conclusive; and

  • (b) in the case of any other person, ending on the day on which the person is served with a notice that the person has not been named in an order of the Tax Court of Canada under subsection (4).

Marginal note:Payment by Minister on appeal

• 97 (1) If the Tax Court of Canada, the Federal Court of Appeal or the Supreme Court of Canada has, on the disposition of an appeal in respect of taxes, interest or a penalty payable under this Act by a person, referred an assessment back to the Minister for reconsideration and reassessment, or varied or vacated an assessment, the Minister must, without delay, whether or not an appeal from the decision of the Court has been or may be instituted,

  • (a) if the assessment has been referred back to the Minister, reconsider the assessment and make a reassessment in accordance with the decision of the Court unless otherwise directed in writing by the person; and

  • (b) refund any overpayment resulting from the variation, vacation or reassessment.

  The Minister may repay any tax, interest or penalties or surrender any security accepted by the Minister for tax, interest or penalties to that person or any other person that has filed another objection or instituted another appeal if, having regard to the reasons given on the disposition of the appeal, the Minister is satisfied that it would be just and equitable to do so, but for greater certainty, the Minister may, in accordance with the provisions of this Act, the Tax Court of Canada Act, the Federal Courts Act or the Supreme Court Act as they relate to appeals from decisions of the Tax Court of Canada or the Federal Court of Appeal, appeal from the decision of the Court despite any variation or vacation of any assessment by the Court or any reassessment made by the Minister under paragraph (a).

• Marginal note:Interest on refund

  (2) If a refund is made under subsection (1) in respect of an assessment for a particular fiscal year, interest at the rate prescribed under section 4301 of the Income Tax Regulations, with any modifications that the circumstances require, must be paid for the period beginning on the day that is the later of 30 days following the GIR due date for the fiscal year and the day on which the overpayment referred to in that subsection was paid and ending on the day on which the refund is paid.

DIVISION 11Penalties

Marginal note:Failure to file GIR

• 98 (1) If one or more constituent entities of a qualifying MNE group that are located in Canada are required, under subsection 60(1) or subparagraph 60(3)(b)(i), to file with the Minister a GIR, in respect of the MNE group for a fiscal year and any of them fails to file a complete or substantially complete GIR — or, if the GIR is intended to be filed by a qualifying foreign filing entity instead of the one or more of the constituent entities, and no constituent entity that is located in Canada notifies the Minister under subsection 60(4) or subparagraph 60(5)(b)(i) — on or before the GIR due date for the fiscal year, each constituent entity that is located in Canada is jointly and severally, or solidarily, liable to a penalty equal to the amount determined by the formula

  A × B

  where

  A

  is $25,000; and

  B

  is the number of complete months, not exceeding 40, within the period beginning on the GIR due date and ending on the day on which the GIR is filed or notification is made.

• Marginal note:Failure to file GIR after notification

  (2) If one or more constituent entities of a qualifying MNE group that are located in Canada are required, under subsection 60(2), to file with the Minister a GIR in respect of the MNE group for a fiscal year and any of them fails to file a complete or substantially complete GIR, within 30 days of the notification described in paragraph 60(2)(b), each constituent entity that is located in Canada is jointly and severally, or solidarily, liable to a penalty equal to the amount determined by the formula

  A × B

  where

  A

  is $25,000; and

  B

  is the number of complete months, not exceeding 40, within the period beginning on the day that is 30 days after the Minister notifies the constituent entities of the MNE group that are located in Canada, or the designated notification entity, of the requirement to file a GIR, and ending on the day on which the GIR is filed.

• Marginal note:GIR transitional penalty relief

  (3) Subsections (1) and (2) do not apply to a constituent entity of a qualifying MNE group that is required to file a GIR, in respect of the MNE group for a fiscal year, with the Minister under subsection 60(1) or (2) or subparagraph 60(3)(b)(i), or notify the Minister under subsection 60(4) or subparagraph 60(5)(b)(i), if

  • (a) the fiscal year begins before January 1, 2027 and ends before July 1, 2028; and

  • (b) in the opinion of the Minister, the entity used reasonable measures to ensure the correct application of the provisions of this Act.

Marginal note:Failure to file return under section 61

• 99 (1) A person that fails to file a return for a fiscal year as and when required under section 61 is liable to a penalty equal to the total of

  • (a) an amount equal to 5% of the tax payable by the person under this Act in respect of the fiscal year that was unpaid on the day on which the return was required to be filed; and

  • (b) the amount obtained when 1% of that unpaid tax is multiplied by the number of complete months, not exceeding 12, beginning on the day on which the return was required to be filed and ending on the day on which the return is filed.

• Marginal note:Repeated failure to file — conditions

  (2) Subsection (3) applies to a person in respect of a fiscal year if the person

  • (a) fails to file a return for the year as and when required by section 61;

  • (b) fails to comply with a demand sent under section 62 for a return for the year; and

  • (c) was, before the day on which the return referred to in paragraph (a) was required to be filed, liable to a penalty under subsection (1) in respect of a return for any of the three preceding fiscal years.

• Marginal note:Repeated failure to file — penalty

  (3) If this subsection applies to a person in respect of a fiscal year because of subsection (2), the person is liable to a penalty equal to the total of

  • (a) an amount equal to 10% of the tax payable by the person under this Act, in respect of the fiscal year that was unpaid on the day on which the return was required to be filed; and

  • (b) the amount obtained when 2% of that unpaid tax is multiplied by the number of complete months, not exceeding 20, beginning on the day on which the return was required to be filed and ending on the day on which the return is filed.

• Marginal note:False statements or omissions

  (4) A person that knowingly, or under circumstances amounting to gross negligence, makes or participates in, assents to or acquiesces in the making of a false statement or omission in a return, application, form, certificate, statement, document, invoice, record or answer (each of which is referred to in this subsection as a “return”) is liable to a penalty equal to the greater of $5,000 and 25% of the total of

  • (a) if the false statement or omission is relevant to the determination of an amount payable under this Act by the person, the amount, if any, by which

    • (i) the amount that is payable

    exceeds

    • (ii) the amount that would be payable if it were determined on the basis of the information provided in the return; and

  • (b) if the false statement or omission is relevant to the determination of a refund or any other payment that may be obtained under this Act, the amount, if any, by which

    • (i) the amount that would be the refund or other payment that would be payable if it were determined on the basis of the information provided in the return

    exceeds

    • (ii) the amount of the refund or other payment that is payable to the person.

Marginal note:Failure to provide information

100 A person that fails to provide any information or record as and when required under this Act, or as prescribed by regulation, is liable to a penalty of $2,500 for each such failure, in addition to any other penalty imposed under this Act. However, the person is not liable in the case of any information or record required in respect of another person under subsection 81(1) or section 119 if a reasonable effort was made by the person to obtain the information or record.