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Bill C-47

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PART 5

GENERAL PROVISIONS CONCERNING DUTY AND OTHER AMOUNTS PAYABLE

Fiscal Month

Determination of fiscal months

159. (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) of the Excise Tax Act for the purposes of Part IX of that Act, 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) of the Excise Tax Act for the purposes of Part IX of that Act, the person may select for the purposes of this Act fiscal months that meet the requirements set out in that 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.

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.

Returns and Payment of Duty and Other Amounts

Filing by licensee

160. (1) Every person who is licensed under this Act 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 duty payable, if any, by the person for that fiscal month; and

    (c) pay that amount to the Receiver General.

Exception - licensed tobacco dealers

(2) Subsection (1) does not apply to licensed tobacco dealers.

Filing by other persons

161. Every person who is not licensed under this Act and who is required to pay duty under this Act shall, not later than the last day of the first month after the fiscal month of the person in which the duty became payable,

    (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 duty payable by the person for that fiscal month; and

    (c) pay that amount to the Receiver General.

Set-off of refunds

162. If, at any time, a person files a return in which the person reports an amount that is required to be paid under this Act by them and the person claims a refund payable to them at that time, in the return or in another return, or in a separate application filed under this Act with the return, the person is deemed to have paid at that time, and the Minister is deemed to have refunded at that time, an amount equal to the lesser of the amount required to be paid and the amount of the refund.

Large payments

163. Every person who is required under this Act to pay any duty, interest or other amount to the Receiver General shall, if the amount is $50,000 or more, make the payment to the account of the Receiver General at

    (a) a bank;

    (b) an authorized foreign bank, as defined in section 2 of the Bank Act, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act;

    (c) a credit union;

    (d) a corporation 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

    (e) a corporation 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 mortgages on real property or hypothecs on immovables.

Authority for separate returns

164. (1) A licensee who engages in one or more activities in separate branches or divisions may file an application, in the prescribed form and manner, with the Minister for authority to file separate returns and applications for refunds under this Act in respect of a branch or division specified in the application.

Authorization by Minister

(2) On receipt of the application, the Minister may, in writing, authorize the licensee to file separate returns and applications for refunds in relation to the specified branch or division, subject to any conditions that the Minister may at any time impose, if the Minister is satisfied that

    (a) the branch or division can be separately identified by reference to the location of the branch or division 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.

Revocation of authorization

(3) The Minister may revoke an authorization if

    (a) the licensee, in writing, requests the Minister to revoke the authorization;

    (b) the licensee fails to comply with any condition imposed in respect of the authorization or any provision of this Act;

    (c) the Minister is no longer satisfied that the requirements of subsection (2) in respect of the licensee are met; or

    (d) the Minister considers that the authorization is no longer required.

Notice of revocation

(4) If the Minister revokes an authorization, the Minister shall send a notice in writing of the revocation to the licensee and shall specify in the notice the effective date of the revocation.

Small amounts owing

165. (1) If, at any time, the total of all unpaid amounts owing by a person to the Receiver General under this Act does not exceed a prescribed amount, the amount owing by the person is deemed to be nil.

Small amounts payable

(2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed a prescribed amount, the Minister is not required to pay any of the amounts payable. The Minister may apply those amounts against a liability of the person.

Meaning of ``electronic filing''

166. (1) For the purposes of this section, ``electronic filing'' means using electronic media in a manner specified in writing by the Minister.

Filing of return by electronic filing

(2) A person who is required to file with the Minister a return under this Act, and who meets the criteria specified in writing by the Minister for the purposes of this section, may file the return by way of electronic filing.

Deemed filing

(3) For the purposes of this Act, if a person files a return by way of electronic filing, it is deemed to be a return in the prescribed form filed with the Minister on the day the Minister acknowledges acceptance of it.

Execution of returns, etc.

167. A return, other than a return filed by way of electronic filing under section 166, a certificate or other document made by a person, other than an individual, under this Act shall be signed on behalf of the person by an individual duly authorized to do so by the person or the governing body of the person. If the person is a corporation or an association or organization that has duly elected or appointed officers, the president, vice-president, secretary and treasurer, or other equivalent officers, of the corporation, association or organization, are deemed to be so duly authorized.

Extension of time

168. (1) At any time, the Minister may, in writing, extend the time limited under this Act for a person to file a return or provide information.

Effect of extension

(2) If the Minister extends the time under subsection (1),

    (a) the return shall be filed, or the information shall be provided, within the time so extended;

    (b) any duty payable that the person is required to report in the return shall be paid within the time so extended; and

    (c) interest is payable under section 170 as if the time had not been extended.

Demand for return

169. The Minister may, on demand served personally or by registered or certified mail, require any person to file, within any reasonable time that may be stipulated in the demand, a return under this Act for any period that may be designated in the demand.

Interest

Compound interest on amounts not paid when required

170. (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 the amount is paid.

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.

Minister may issue notice

(3) The Minister may serve or send to a person who is required under this Act to pay an amount that may consist of principal and interest a notice specifying the amount owed by the person and a date by which the payment must be made.

Effect of notice

(4) If the person to whom a notice referred to in subsection (3) is served or sent pays in full the specified amount within the specified time, interest is not payable, despite subsection (1), on the amount for the period beginning on the date of the notice and ending on the day on which the amount is paid.

Minimal interest amounts

(5) If at any time a person has paid all amounts, other than interest, owed to Her Majesty under this Act and, immediately before that time, the total amount of interest owed by the person under this Act is less than the prescribed amount, the Minister may write off and cancel the interest owed.

Compound interest on amounts owed by Her Majesty

171. Interest shall be compounded daily at the prescribed rate on amounts owed by Her Majesty to a person and computed for the period beginning on the first day after the day on which the amount is required to be paid by Her Majesty and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty.

Application of interest provisions if Act amended

172. 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.

Waiving or reducing interest

173. The Minister may at any time waive or reduce any interest payable by a person under this Act.

Refunds

Statutory recovery rights

174. Except as specifically provided under this Act, the Customs Act, the Customs Tariff or the Financial Administration Act, no person has a right to recover any money paid to Her Majesty as or on account of, or that has been taken into account by Her Majesty as, duty, interest or other amount payable under this Act.

Applications for refunds

175. (1) An application for a refund under this Act shall be filed with the Minister in the prescribed form and manner.

Single application

(2) Only one application may be made under this Act for a refund with respect to any matter.

Payment if error

176. (1) If a person has paid an amount as or on account of, or that was taken into account as, duty, interest or other amount payable under this Act in circumstances in which the amount was not payable by the person, whether the amount was paid by mistake or otherwise, the Minister shall pay a refund of that amount to the person.

Restriction

(2) A refund in respect of an amount shall not be paid to a person to the extent that

    (a) the amount was taken into account as duty for a fiscal month of the person and the Minister has assessed the person for the month under section 188; or

    (b) the amount paid was duty, interest or other amount assessed under that section.

Application for refund

(3) A refund of an amount shall not be paid to a person unless the person files an application for the refund within two years after the person paid the amount.

Restriction on refunds, etc.

177. A refund or a payment of an amount under this Act shall not be paid to a person to the extent that it can reasonably be regarded that

    (a) the amount has previously been refunded, remitted, applied or paid to that person under this or any other Act of Parliament; or

    (b) the person has applied for a refund, payment or remission of the amount under any other Act of Parliament.

Restriction re trustees

178. If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a refund or any other payment under this Act that the bankrupt was entitled to claim before the appointment shall not be paid after the appointment unless all returns required under this Act to be filed for fiscal months of the bankrupt ending before the appointment have been filed and all amounts required under this Act to be paid by the bankrupt in respect of those fiscal months have been paid.

Overpayment of refunds, etc.

179. (1) If an amount is paid to, or applied to a liability of, a person as a refund or other payment under this Act and the person is not entitled to the amount or the amount paid or applied exceeds the refund or other payment to which the person is entitled, the person shall pay to the Receiver General an amount equal to the refund, payment or excess on the day the amount is paid to, or applied to a liability of, the person.

Effect of reduction of refund, etc.

(2) For the purposes of subsection (1), if a refund or other payment has been paid to a person in excess of the amount to which the person was entitled and the amount of the excess has, by reason of section 177, reduced the amount of any other refund or other payment to which the person would, but for the payment of the excess, be entitled, the person is deemed to have paid the amount of the reduction to the Receiver General.

No refund on exported tobacco products or alcohol

180. Subject to this Act, the duty paid on any tobacco product or alcohol entered into the duty-paid market shall not be refunded on the exportation of the tobacco product or alcohol.

Re-worked or destroyed tobacco products

181. The Minister may refund to a tobacco licensee the duty paid on a tobacco product that is re-worked or destroyed by the tobacco licensee in accordance with section 41 if the licensee applies for the refund within two years after the tobacco product is re-worked or destroyed.

Refund of tax to importer if foreign taxes paid

182. (1) The Minister may refund, to a person who has imported into a foreign country a tobacco product (as defined in section 55) that was manufactured in Canada and exported by the tobacco licensee who manufactured it to the foreign country in accordance with paragraph 50(4)(a), an amount determined in accordance with subsection (2) in respect of the product if

    (a) the person provides evidence satisfactory to the Minister that

      (i) all taxes and duties imposed on the product under the laws of the foreign country having national application have been paid, and

      (ii) the container containing the product has printed on it or affixed to it tobacco markings; and

    (b) the person applies to the Minister for the refund within two years after the product was exported to the foreign country.

Determination of refund

(2) The amount of the refund under subsection (1) is equal to the lesser of

    (a) the total of the taxes and duties referred to in subparagraph (1)(a)(i) that are paid in respect of the tobacco product, and

    (b) the amount of the special duty imposed under paragraph 56(1)(a) in respect of the product that is paid by the tobacco licensee who manufactured it.

Overpayment of refund or interest

(3) If an amount has been paid to a person as a refund in respect of a tobacco product exported by the tobacco licensee who manufactured it or as interest in respect of such a refund and a special duty under paragraph 56(1)(b) was imposed in respect of the product, the amount is deemed to be duty payable under this Act by the licensee that became payable during the fiscal month of the licensee in which the amount was paid to the person.

Refund of special duty to tobacco licensee if foreign taxes paid

(4) If a refund under subsection (1) has been paid in respect of an exported tobacco product, the Minister may refund to the tobacco licensee who manufactured the product the amount, if any, by which the special duty imposed under paragraph 56(1)(a) in respect of the product and paid by the licensee exceeds the amount of the refund under subsection (1) if the licensee applies to the Minister for the refund under this subsection within two years after the product was exported.

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