Tax Rebate Discounting Act

Marginal note:Payment and disclosure

• 4 (1) Any discounter who does not, at or before the time a right to a refund of tax is acquired from a client,

  • (a) pay by cash or by a cheque or other bill of exchange drawn on a financial institution in Canada that is payable on demand and negotiable in Canada at the time it is given the amount by which

    • (i) the full amount of the minimum consideration for the right based on the estimated refund of tax

    exceeds the total of

    • (ii) any tax imposed under Part IX of the Excise Tax Act that the discounter is required to collect from the client in respect of a taxable supply deemed under section 158 of that Act to have been made by the discounter to the client, and

    • (iii) any tax imposed under An Act respecting the Quebec sales tax and amending various fiscal legislation, being Chapter 67 of the Statutes of Quebec, 1991, that the discounter is required to collect from the client in respect of a taxable supply deemed under section 39 of that Act to have been made by the discounter to the client,

  • (b) provide the client with

    • (i) a statement in prescribed form describing the discounting transaction, and

    • (ii) if the client has so requested, a true copy of the client’s return of income and any related information return, and

  • (c) obtain from the client an address of record for the purposes of section 5,

  is guilty of an offence.

• Marginal note:Failure to file disclosure statement

  (2) Any discounter who, having acquired from a client a right to a refund of tax, files a client’s return of income on the client’s behalf without

  • (a) including with the return of income, other than a return of income deemed by subsection 150.1(3) of the Income Tax Act to have been filed for the purposes of section 150 of that Act, a true copy of the statement referred to in subparagraph (1)(b)(i) as provided to the client and signed by the client to acknowledge receipt thereof, and

  • (b) providing to such person and within such period of time as the Minister may specify a true copy of the statement referred to in subparagraph (1)(b)(i) as provided to the client and signed by the client to acknowledge receipt thereof,

  is guilty of an offence.