Bill C-49

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	(b) by delivery of an amount to an agency located within Canada for transmission to a ticket office, travel agency, air carrier or any representative of any of them located outside Canada; or
	(c) by any other arrangement with a person outside Canada for the benefit or convenience of a person who is resident in Canada.
Charter flights	(2) If an air transportation service that begins in Canada is acquired outside Canada by a person in the course of a charter operation, the service is deemed to have been acquired in Canada and not outside Canada.
	COLLECTION OF CHARGE
Duty of designated air carrier to collect charge	14. (1) Subject to subsections (2) and (3), every designated air carrier from whom all or part of an air transportation service is acquired by a person who is required by this Act to pay a charge in respect of that service shall, as an agent of Her Majesty, collect the charge not later than the time the charge becomes payable by the person.
Multiple carriers - service acquired in Canada	(2) If an air transportation service acquired in Canada is comprised of transportation of an individual by air by two or more designated air carriers, any charge that is payable in respect of the service shall be collected
	(a) if all of the tickets for the service are issued by a designated air carrier, by that carrier; or
	(b) in any other case, by the designated air carrier operating the aircraft on which the individual first makes a chargeable emplanement.
Issuing carrier deemed to be supplier of service	(3) If a ticket for an air transportation service acquired in Canada is issued to a person by a designated air carrier that does not provide any part of the air transportation service, the air transportation service is deemed to have been acquired by the person from that designated air carrier.
Multiple carriers - service acquired outside Canada	(4) If an air transportation service acquired outside Canada is comprised of transportation of an individual by air by two or more designated air carriers, any charge that is payable in respect of the service shall be collected by the designated air carrier operating the first aircraft that transports the individual to a destination outside Canada and on which the individual makes a chargeable emplanement included in the service.
Joint and several or solidary liability	(5) If a designated air carrier issues a ticket and accepts consideration on behalf of another designated air carrier for an air transportation service acquired outside Canada in respect of which the other carrier is required to collect a charge, those carriers are jointly and severally or solidarily liable for all obligations under this Act arising from, or as a consequence of, the acquisition of the service or any failure to collect or pay the charge.
Trust for amounts collected	15. (1) Every person who collects an amount as or on account of a charge is deemed, for all purposes and despite any security interest (other than a prescribed security interest) in the amount, to hold the amount in trust for Her Majesty, separate and apart from the property of the person and from property held by any secured creditor of the person that, but for a security interest, would be property of the person, until the amount is paid to the Receiver General or withdrawn under subsection (3).
Amounts collected before bankruptcy	(2) Subsection (1) does not apply, at or after the time a person becomes a bankrupt (within the meaning of the Bankruptcy and Insolvency Act), to any amounts that, before that time, were collected or became collectible by the person as or on account of a charge.
Withdrawal from trust	(3) A person who holds amounts in trust by reason of subsection (1) may withdraw from the amounts any amount refunded by the person under section 32.
Extension of trust	(4) Despite any other provision of this Act, any other enactment of Canada (except the Bankruptcy and Insolvency Act), any enactment of a province or any other law, if at any time an amount deemed by subsection (1) to be held by a person in trust for Her Majesty is not remitted to the Receiver General or withdrawn in the manner and at the time provided under this Part, property of the person and property held by any secured creditor of the person that, but for a security interest, would be property of the person, equal in value to the amount so deemed to be held in trust, is deemed
	(a) to be held, from the time the amount was collected by the person, in trust for Her Majesty, separate and apart from the property of the person, whether or not the property is subject to a security interest, and
	(b) to form no part of the estate or property of the person from the time the amount was collected, whether or not the property has in fact been kept separate and apart from the estate or property of the person and whether or not the property is subject to a security interest
	and is property beneficially owned by Her Majesty despite any security interest in the property or in the proceeds thereof, and the proceeds of the property shall be paid to the Receiver General in priority to all security interests.
	GENERAL PROVISIONS CONCERNING CHARGES AND OTHER AMOUNTS PAYABLE
	Fiscal Month
Determination of fiscal months	16. The fiscal months of a designated air carrier shall be determined in accordance with the following rules:
	(a) if fiscal months of the carrier 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 carrier for the purposes of this Act;
	(b) if fiscal months of the carrier 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 carrier may choose, at the time of registration under section 17, as their fiscal months for the purposes of this Act, fiscal months that meet the requirements set out in subsection 243(2) of the Excise Tax Act; and
	(c) if paragraph (a) does not apply and the carrier has not chosen their fiscal months under paragraph (b), each calendar month is a fiscal month of the carrier for the purposes of this Act.
	Returns and Payments of Charges and Other Amounts
Registration	17. (1) Every designated air carrier that is required to collect a charge shall register with the Minister in the prescribed form and manner before the end of the first fiscal month in which the carrier collects or is required to collect charges.
Returns and payments	(2) Every designated air carrier that is registered or is required to register shall, not later than the last day of the first month after each fiscal month of the carrier,
	(a) file a return with the Minister, in the prescribed form and manner containing all prescribed information, for that fiscal month;
	(b) calculate, in the return, the total of
	(i) all charges required to be collected by the carrier during that fiscal month other than such a charge that was collected by the carrier before that fiscal month,
	(ii) all amounts each of which is a charge collected by the carrier during that fiscal month at a time before the charge became payable under subsection 11(2) if the time at which the charge becomes so payable is after the end of that fiscal month, and
	(iii) all other amounts collected as or on account of charges by the carrier during that fiscal month that were not included in a calculation under subparagraph (i) or (ii) for a previous fiscal month; and
	(c) pay an amount equal to that total to the Receiver General.
Amount collected as charge by person not required to collect	18. Every person who collects an amount as or on account of a charge and who is not required to pay it to the Receiver General under subsection 17(2) shall, without delay, pay that amount to the Receiver General and report the matter to the Minister in the prescribed form and manner.
Set-off of refunds	19. If, at any time, a designated air carrier files a return under section 17 in which the carrier reports an amount that is required to be paid under this Act by it and the carrier claims a refund payable to it under this Act at that time, in the return or in another return, or in a separate application filed under this Act with the return, the carrier 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	20. Every person who is required under this Act to pay an 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) a credit union;
	(c) 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
	(d) 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.
Small amounts owing	21. (1) If, at any time, the total of all unpaid amounts owing by a designated air carrier to the Receiver General under this Act does not exceed $2.00, the amount owing by the carrier is deemed to be nil.
Small amounts payable	(2) If, at any time, the total of all amounts payable by the Minister to a designated air carrier under this Act does not exceed $2.00, the Minister is not required to pay any of the amounts payable. The Minister may apply those amounts against a liability of the carrier.
Authority for separate returns	22. (1) A designated air carrier that 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 designated air carrier 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 designated air carrier, in writing, requests the Minister to revoke the authorization;
	(b) the designated air carrier 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 designated air carrier 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 designated air carrier and shall specify in the notice the effective date of the revocation.
Meaning of ``electronic filing''	23. (1) For the purposes of this section, ``electronic filing'' means using electronic media in a manner specified in writing by the Minister.
Electronic filing of return	(2) A designated air carrier that is required to file with the Minister a return under this Act, and that 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 designated air carrier files a return by way of electronic filing, the return 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.	24. A return (other than a return filed by way of electronic filing under section 23) or other document made under this Act by a person that is not an individual 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	25. The Minister may at any time extend, in writing, the time for filing a return or providing information under this Act.
Demand for return	26. The Minister may, by a demand served personally or by registered or certified mail, require a designated air carrier 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	27. (1) If a person fails to pay an amount, other than an amount of penalty under subsection 53(1), 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 that begins on the first day after the day on or before which the amount was required to be paid and that ends 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.
Compound interest on amounts owed by Her Majesty	28. 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	29. 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	30. The Minister may at any time waive or reduce any interest payable by a person under this Act.

Bill C-49

COLLECTION OF CHARGE

GENERAL PROVISIONS CONCERNING CHARGES AND OTHER AMOUNTS PAYABLE

Fiscal Month

Returns and Payments of Charges and Other Amounts

Interest