Budget Implementation Act, 2003 (S.C. 2003, c. 15)

R.S., c. E-15Excise Tax Act

Marginal note:R.S., c. 7 (2nd Supp.), s. 3(1)

• 94. (1) Subsection 7(1) of the Excise Tax Act is replaced by the following:

  Marginal note:Penalty for default

  • 7. (1) Every person who refuses or neglects to make a return as required by subsection 5(1) is liable to a penalty of five per cent of the amount of tax unpaid at the expiration of the time for filing the return.

• (2) Subsection (1) applies in respect of any period for which a return is required to be filed after June 2003.

• 95. (1) Subsection 58.1(1) of the Act is amended by adding the following in alphabetical order:

  “fiscal month”

  « mois d’exercice »

  “fiscal month” means a fiscal month as determined under subsection 78(1);

  “month”

  « mois »

  “month” means a period beginning on a particular day in a calendar month and ending on

  • (a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day, or

  • (b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month;

• (2) Subsection (1) comes into force or is deemed to have come into force on July 1, 2003.

96. Section 59 of the Act is amended by adding the following after subsection (3.3):

Marginal note:2002, c. 22, s. 428

• 97. (1) Subsection 68.5(7) of the Act is amended by adding the word “and” at the end of paragraph (a), by striking out the word “and” at the end of paragraph (b) and by repealing paragraph (c).

• Marginal note:2002, c. 22, s. 428

  (2) Paragraph 68.5(9)(b) of the Act is replaced by the following:

  • (b) interest at the prescribed rate in respect of the excess rebate for the period beginning on the first day after the day on which the rebate is paid to the person and ending on the earlier of the day on which the excess rebate is paid to the Receiver General and the day on or before which the reconciliation report is required to be filed.

• Marginal note:2002, c. 22, s. 428

  (3) Subsections 68.5(11) to (13) of the Act are repealed.

• Marginal note:2002, c. 22, s. 428

  (4) Paragraph 68.5(14)(b) of the Act is replaced by the following:

  • (b) paid all excess rebates in respect of rebate periods ending before that time and any interest that has accrued to that time.

• (5) Subsection (1) applies in respect of rebate periods ending after June 2003.

• (6) Subsections (2) to (4) apply in respect of amounts owing after June 2003.

Marginal note:R.S., c. 7 (2nd Supp.), s. 34(1); 2001, c. 16, s. 30(2)

• 98. (1) Subsections 72(7) and (8) of the Act are replaced by the following:

  • Marginal note:Interest on payment

    (7) If an amount is paid to an applicant under subsection (6), the Minister shall pay interest at the prescribed rate to the applicant on the amount for the period beginning on the day that is 30 days after the day on which the application was received by the Minister and ending on the day on which the amount is paid.

• (2) Subsection (1) applies in respect of an application received by the Minister of National Revenue after June 2003.

Marginal note:R.S., c. 7 (2nd Supp.), s. 34(1)

• 99. (1) Subsections 74(3) and (4) of the Act are replaced by the following:

  • Marginal note:Interest on deduction

    (3) If a deduction is authorized under subsection (1), interest shall be authorized at the prescribed rate as a deduction in accordance with that subsection for the period beginning on the day that is 30 days after the day on which the application for the payment in respect of which the deduction was authorized was received by the Minister and ending on the day on which the notice of determination was sent.

• (2) Subsection (1) applies in respect of an application received by the Minister of National Revenue after June 2003.

Marginal note:R.S., c. 15 (1st Supp.), s. 26(1), c. 7 (2nd Supp.), ss. 35(2) and (3) and 36(2), c. 12 (4th Supp.), ss. 31(1) and (2) and 32(1) to (4); 2000, c. 30, s. 14(1); 2001, c. 16, ss. 32(1) to (3)

• 100. (1) Sections 78 and 79 of the Act are replaced by the following:

  Marginal note:Determination of fiscal months

  • 78. (1) The fiscal months of a person shall be determined in accordance with the following rules:

    • (a) if fiscal months of the person have been determined under subsection 243(2) or (4) for the purposes of Part IX, each of those fiscal months is a fiscal month of the person for the purposes of this Act;

    • (b) if fiscal months of the person have not been determined under subsection 243(2) or (4) for the purposes of Part IX, the person may select for the purposes of this Act fiscal months that meet the requirements set out in subsection 243(2); and

    • (c) if neither paragraph (a) nor paragraph (b) applies, each calendar month is a fiscal month of the person for the purposes of this Act.

  • Marginal note:Notification of Minister

    (2) Every person who is required to file a return shall notify the Minister of their fiscal months in the prescribed form and manner.

  Marginal note:Returns and payments

  • 79. (1) Every person who is required to pay tax under Part III or IV and every person who holds a licence granted under or in respect of those Parts shall, not later than the last day of the first month after each fiscal month of the person,

    • (a) file a return with the Minister, in the prescribed form and manner, for that fiscal month;

    • (b) calculate, in the return, the total amount of the tax payable, if any, by the person for that fiscal month; and

    • (c) pay that amount to the Receiver General.

  • Marginal note:Authority for extended reporting period

    (2) Despite subsection (1), the Minister may authorize a person to file a return and pay tax in respect of

    • (a) any period longer than one fiscal month but not longer than six fiscal months, if the tax payable by that person under Parts III and IV for the preceding twelve fiscal months did not exceed $4,800; or

    • (b) any period longer than one fiscal month but not longer than six fiscal months, if

      • (i) the activities of the person that give rise to tax payable by that person under Part III or IV are predominantly limited to a seasonal period of operation, and

      • (ii) the tax payable by that person under Parts III and IV for the equivalent period in the preceding twelve fiscal months did not exceed an average of $400 per fiscal month during that equivalent period.

  • Marginal note:Filing of return for extended reporting period

    (3) If the Minister authorizes a person under subsection (2) to file a return and pay tax in respect of a period longer than one fiscal month, the person shall, not later than the last day of the first month after the end of the period, file the return and pay any tax owing.

  Marginal note:Transition to reporting based on fiscal months

  79.01 For the purposes of sections 78, 79 and 79.1, if the period that includes July 1, 2003 for which a person would have been required to file a return under section 78 as it read before that day (which period is referred to in this section as the “pre-existing accounting period”) overlaps one or more fiscal months of the person, including any part of a fiscal month, the following rules apply:

  • (a) the person shall file a return and pay any amounts owing in respect of the pre-existing accounting period in the same manner and at the same time as the person would have been required to under section 78 as it read before that day; and

  • (b) in the case of a particular fiscal month that includes the last day of the pre-existing accounting period, the portion of that particular fiscal month after that last day is deemed to be part of the first fiscal month following the particular fiscal month and, for this purpose, that following fiscal month may exceed 35 days in length.

  Marginal note:Amounts owing of $2 or less in total

  • 79.02 (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty in right of Canada under this Act does not exceed two dollars, those amounts are deemed to be nil.

  • Marginal note:Amounts payable of $2 or less in total

    (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister shall apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada under this Act. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts payable are deemed to be nil.

  Marginal note:Compound interest on amounts not paid when required

  • 79.03 (1) If a person fails to pay an amount to the Receiver General as and when required under this Act, the person shall pay to the Receiver General interest on the amount. The interest shall be compounded daily at the prescribed rate and computed for the period beginning on the first day after the day on which the amount was required to be paid and ending on the day on which the amount is paid.

  • Marginal note:Payment of interest that is compounded

    (2) For the purposes of subsection (1), interest that is compounded on a particular day on an unpaid amount of a person is deemed to be required to be paid by the person to the Receiver General at the end of the particular day, and, if the person has not paid the interest so computed by the end of the day after the particular day, the interest shall be added to the unpaid amount at the end of the particular day.

  • Marginal note:Period where interest not payable

    (3) Despite any other provision of this Act, if the Minister notifies a person that the person is required to pay a specified amount under this Act and the person pays the specified amount in full before the end of the period that the Minister specifies with the notice, interest is not payable on the specified amount for the period.

  • Marginal note:Interest amounts of $25 or less

    (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest, owing at that time to Her Majesty in right of Canada under this Act for a fiscal month of the person and the total amount of interest payable by the person under this Act for that month is not more than $25.00, the Minister may cancel the interest.

  Marginal note:Compound interest on amounts owed by Her Majesty

  79.04 Interest shall be compounded daily at the prescribed rate on any amount payable by the Minister to a person. The interest shall be computed for the period beginning on the first day after the day on which the amount is required to be paid and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty in right of Canada, unless this Act provides otherwise.

  Marginal note:Application of interest provisions if Act amended

  79.05 For greater certainty, if a provision of an Act amends this Act and provides that the amendment comes into force on, or applies as of, a particular day that is before the day on which the provision is assented to, the provisions of this Act that relate to the calculation and payment of interest apply in respect of the amendment as though the provision had been assented to on the particular day.

• (2) Sections 78 to 79.01 of the Act, as enacted by subsection (1), come into force or are deemed to have come into force on July 1, 2003.

• (3) Sections 79.02 to 79.04 of the Act, as enacted by subsection (1), apply in respect of amounts owing by a person to Her Majesty in right of Canada, and in respect of amounts payable by the Minister of National Revenue, after June 2003.

Marginal note:R.S., c. 12 (4th Supp.), s. 33(1)

• 101. (1) Subparagraphs 79.1(1)(a)(i) to (iii) of the Act are replaced by the following:

  • (i) for a fiscal month is the lesser of

    • (A) the tax payable under Parts III and IV, as the case may be, other than tax payable in accordance with the Customs Act, by that person in that month, and

    • (B) the tax so payable in the last preceding fiscal month, and

  • (ii) for any period authorized under subsection 79(2) is the lesser of

    • (A) the tax payable under Parts III and IV, as the case may be, other than tax payable in accordance with the Customs Act, by that person in that period, and

    • (B) the tax so payable in the last preceding period so authorized multiplied by the ratio that the number of days in the period to which the return relates is to the number of days in that last preceding period; and

• Marginal note:R.S., c. 12 (4th Supp.), s. 33(1); 1999, c. 31, par. 247(b)(F)

  (2) Subparagraph 79.1(1)(b)(ii) of the Act is replaced by the following:

  • (ii) the person

    • (A) was, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days if that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Parts III and IV, other than taxes payable in accordance with the Customs Act, by the group in that year exceeded twelve million dollars, and

    • (B) is not, at that time, authorized under subsection 79(2) to file a return for a period longer than one fiscal month.

• Marginal note:R.S., c. 12 (4th Supp.), s. 33(1)

  (3) Subsections 79.1(2) to (8) of the Act are replaced by the following:

  • Marginal note:Instalment payments by large taxpayers

    (2) A large taxpayer who is required to file a return and pay tax under subsection 79(1) shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the fiscal month in which the tax became payable or the sales were made, as the case may be, the first to be paid not later than the last day of that month and the second not later than the day that is 15 days after that last day.

  • Marginal note:Instalment payments by other persons

    (3) A person, other than a large taxpayer, who is required under subsection 79(1) or (3) to file a return and pay tax in respect of a fiscal month or other period authorized under subsection 79(2) shall, not later than 21 days after the end of the month or period, as the case may be, pay an instalment on account of the tax equal to the person’s instalment base for the month or period.

• (4) Subsections (1) to (3) come into force or are deemed to have come into force on July 1, 2003.

Marginal note:R.S., c. 12 (4th Supp.), s. 33(1); 1999, c. 17, s. 150(E) and par. 156(a)

• 102. (1) Section 79.2 of the Act is replaced by the following:

  Marginal note:Filing of return by mail

  • 79.2 (1) If a person who is required under this Act to file a return with the Minister does so by mailing the return, the return is deemed to have been filed with the Minister on the day on which the return was mailed and the date of the postmark is evidence of that day.

  • Marginal note:Payment or remittance of amounts

    (2) A person who is required under this Act to pay or remit an amount to the Receiver General shall not be considered as having paid or remitted the amount until it is received by the Receiver General.

• (2) Subsection (1) comes into force or is deemed to have come into force on July 1, 2003.

Marginal note:1990, c. 45, s. 11(1)

• 103. (1) Subsection 80(2) of the Act is replaced by the following:

  • Marginal note:Alternate reporting

    (2) Any person filing a return under section 79 may, in lieu of submitting a report under subsection (1), include in the return a report in the prescribed form containing details of the person’s sales, taxes paid under this Act and deductions under subsection 69(2) in the period to which the return relates and any other prescribed information.

• (2) Subsection (1) applies in respect of fiscal months that begin after June 2003.