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Bill C-28

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Amount payable after recovery of payment

(4) If a person is liable to pay an amount under subsection 68.15(3) or 68.21(3), that amount is deemed to be a tax under this Act payable by that person on the day the liability arose.

(2) Subsection (1) applies in respect of amounts paid to a person after June 2003.

R.S., c. 7 (2nd Supp.), s. 41(1), c. 12 (4th Supp.), s. 35(1)

108. (1) Subsections 84(5) to (9) of the Act are replaced by the following:

Application of payments

(5) Any moneys paid by a person under subsection (4) shall, in addition to being applied to that person's liability under this section, be applied on account of the tax debtor's liability under this Act.

Receipt by Minister

(6) The receipt by the Minister of moneys paid as required under this section is a good and sufficient discharge of the liability to the tax debtor to the extent of the amount received .

Definition of ``tax debtor''

(7) In this section, ``tax debtor'' means a person by whom any tax, penalty, interest or other sum is payable under this Act.

(2) Subsection (1) applies in respect of an amount payable by a person after June 2003.

2001, c. 15, s. 3(1)

109. (1) Section 88 of the Act is replaced by the following:

Waiver or cancellation of interest or penalty

88. (1) The Minister may waive or cancel any amount otherwise payable to the Receiver General under this Act that is interest or a penalty.

Interest where amounts cancelled

(2) If a person has paid an amount of interest or penalty and the Minister cancels that amount under subsection (1), the Minister shall pay interest on the amount paid by the person beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that subsection and ending on the day on which the amount is refunded or applied against an amount owed by the person to Her Majesty in right of Canada.

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

R.S., c. 7 (2nd Supp.), s. 51(1)

110. (1) The portion of paragraph 116(4)(a) of the Act before subparagraph (i) is replaced by the following:

    (a) the purchaser and not the manufacturer or wholesaler from whom the goods were purchased is liable to pay the tax and any interest under subsection 79.03(1) , if

R.S., c. 7 (2nd Supp.), s. 51(1)

(2) Paragraph 116(4)(b) of the Act is replaced by the following:

    (b) in any other case, the purchaser and the manufacturer or wholesaler from whom the goods were purchased are jointly and severally liable to pay the tax and any interest under subsection 79.03(1) .

(3) Subsections (1) and (2) apply in respect of amounts owing by a person after June 2003.

R.S., c. 1 (5th Supp.)

Income Tax Act

111. (1) Paragraph 129(2.1)(b) of the Income Tax Act is replaced by the following:

    (b) the day that is 30 days after the day on which the corporation's return of income under this Part for the year was filed under section 150, unless the return was filed on or before the day on or before which it was required to be filed,

(2) Subsection (1) applies to taxation years that end after June 2003.

112. (1) Paragraph 131(3.1)(b) of the Act is replaced by the following:

    (b) the day that is 30 days after the day on which the corporation's return of income under this Part for the year was filed under section 150, unless the return was filed on or before the day on or before which it was required to be filed,

(2) Subsection (1) applies to taxation years that end after June 2003.

113. (1) The portion of subsection 132(2.1) of the Act before paragraph (a) is replaced by the following:

Interest on capital gains refund

(2.1) If a capital gains refund for a taxation year is paid to, or applied to a liability of, a mutual fund trust, the Minister shall pay or apply interest on the refund at the prescribed rate for the period beginning on the day that is 30 days after the later of

(2) Subsection (1) applies to taxation years that end after June 2003.

114. (1) Paragraph 133(7.01)(b) of the Act is replaced by the following:

    (b) the day that is 30 days after the day on which the corporation's return of income under this Part for the year was filed under section 150, unless the return was filed on or before the day on or before which it was required to be filed,

(2) Subsection (1) applies to taxation years that end after June 2003.

115. (1) Subsection 157(2) of the Act is repealed.

(2) Subsection (1) applies to taxation years that begin after June 2003.

116. (1) Subsection 161(2.1) of the Act is repealed.

(2) The portion of paragraph 161(7)(b) of the Act before subparagraph (i) is replaced by the following:

    (b) the amount by which the tax payable under this Part and Parts I.3, VI and VI.1 by the taxpayer for the year is reduced as a consequence of the deduction or exclusion of amounts described in paragraph (a) is deemed to have been paid on account of the taxpayer's tax payable under this Part for the year on the day that is 30 days after the latest of

(3) Subsection (1) applies to taxation years that end after June 2003.

(4) Subsection (2) applies in respect of applications received after June 2003.

117. (1) The Act is amended by adding the following after section 161.1:

Period where interest not payable

161.2 Notwithstanding any other provision of this Act, if the Minister notifies a taxpayer that the taxpayer is required to pay a specified amount under this Act and the taxpayer 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.

Small Amounts Owing

Interest and penalty amounts of $25 or less

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

Taxpayer

161.4 (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.

Minister

(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. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts payable are deemed to be nil.

(2) Section 161.2 of the Act, as enacted by subsection (1), comes into force or is deemed to have come into force on July 1, 2003.

(3) Section 161.3 of the Act, as enacted by subsection (1), applies to taxation years that end after June 2003.

(4) Section 161.4 of the Act, as enacted by subsection (1), applies to amounts owing or payable, as the case may be, after June 2003.

118. (1) Subsection 164(3) of the Act is replaced by the following:

Interest on refunds and repayments

(3) Where under this section an amount in respect of a taxation year (other than an amount or portion of it that can reasonably be considered to arise from the operation of section 122.5, 122.61 or 126.1) is refunded or repaid to a taxpayer or applied to another liability of the taxpayer, the Minister shall pay or apply interest on it at the prescribed rate for the period beginning on the day that is the latest of the days referred to in the following paragraphs and ending on the day on which the amount is refunded, repaid or applied:

    (a) if the taxpayer is an individual, the day that is 30 days after the individual's balance-due day for the year;

    (b) if the taxpayer is a corporation, the day that is 120 days after the end of the year;

    (c) if the taxpayer is

      (i) a corporation, the day that is 30 days after the day on which its return of income for the year was filed under section 150, unless the return was filed on or before the corporation's filing-due date for the year, and

      (ii) an individual, the day that is 30 days after the day on which the individual's return of income for the year was filed under section 150;

    (d) in the case of a refund of an overpayment, the day on which the overpayment arose; and

    (e) in the case of a repayment of an amount in controversy, the day on which an overpayment equal to the amount of the repayment would have arisen if the total of all amounts payable on account of the taxpayer's liability under this Part for the year were the amount by which

      (i) the lesser of the total of all amounts paid on account of the taxpayer's liability under this Part for the year and the total of all amounts assessed by the Minister as payable under this Part by the taxpayer for the year

    exceeds

      (ii) the amount repaid.

(2) Subsection 164(3.2) of the Act is replaced by the following:

Interest where amounts cancelled

(3.2) Notwithstanding subsection (3), if an overpayment of a taxpayer for a taxation year is determined because of an assessment made under subsection 152(4.2) or 220(3.1) or (3.4) and an amount in respect of the overpayment is refunded to, or applied to another liability of, the taxpayer under subsection (1.5) or (2), the Minister shall pay or apply interest on the overpayment at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply those subsections and ending on the day on which the amount is refunded or applied.

(3) The portion of subsection 164(5) of the Act after paragraph (h.3) and before paragraph (i) is replaced by the following:

is deemed to have arisen on the day that is 30 days after the latest of

(4) Subsections (1) and (3) apply to taxation years that end after June 2003.

(5) Subsection (2) applies in respect of requests received by the Minister of National Revenue after June 2003.

119. (1) The portion of subsection 183.1(2) of the Act after paragraph (b) is replaced by the following:

the corporation shall, on or before its balance-due day for its taxation year that includes that time, pay tax of 45% of that amount or portion of it , as the case may be.

(2) Subsection (1) applies to taxation years that begin after June 2003.

120. (1) The portion of subsection 186(1) of the Act before paragraph (a) is replaced by the following:

Tax on assessable dividends

186. (1) Every corporation (in this section referred to as the ``particular corporation'') that is at any time in a taxation year a private corporation or a subject corporation shall, on or before its balance-due day for the year, pay a tax under this Part for the year equal to the amount, if any, by which the total of

(2) Subsection (1) applies to taxation years that begin after June 2003.

121. (1) Section 187.2 of the Act is replaced by the following:

Tax on dividends on taxable preferred shares

187.2 Every corporation shall, on or before its balance-due day for a taxation year, pay a tax under this Part for the year equal to 10% of the total of all amounts each of which is a dividend, other than an excepted dividend, received by the corporation in the year on a taxable preferred share (other than a share of a class in respect of which an election under subsection 191.2(1) has been made) to the extent that an amount in respect of the dividend was deductible under section 112 or 113 or subsection 138(6) in computing its taxable income for the year or under subsection 115(1) in computing its taxable income earned in Canada for the year.

(2) Subsection (1) applies to taxation years that begin after June 2003.

122. (1) Subsection 187.3(1) of the Act is replaced by the following:

Tax on dividends on taxable RFI shares

187.3 (1) Every restricted financial institution shall, on or before its balance-due day for a taxation year, pay a tax under this Part for the year equal to 10% of the total of all amounts each of which is a dividend, other than an excepted dividend, received by the institution at any time in the year on a share acquired by any person before that time and after 8:00 p.m. Eastern Daylight Saving Time, June 18, 1987 that was, at the time the dividend was paid, a taxable RFI share to the extent that an amount in respect of the dividend was deductible under section 112 or 113 or subsection 138(6) in computing its taxable income for the year or under subsection 115(1) in computing its taxable income earned in Canada for the year.

(2) Subsection (1) applies to taxation years that begin after June 2003.

123. (1) Paragraph 196(3)(b) of the Act is replaced by the following:

    (b) the remainder, if any, of the tax payable by it under this Part for the year, on or before its balance-due day for the year.

(2) Subsection (1) applies to taxation years that begin after June 2003.

124. (1) Paragraph 204.86(1)(c) of the Act is replaced by the following:

    (c) on or before its balance-due day for the year, pay to the Receiver General the amount of tax and penalties, if any, payable under this Part by it for the year.

(2) Paragraph 204.86(2)(c) of the Act is replaced by the following:

    (c) on or before its balance-due day for the year, pay to the Receiver General the amount of tax payable under this Part by it for the year.

(3) Subsections (1) and (2) apply to taxation years that begin after June 2003.

125. (1) The portion of subsection 208(2) of the Act before paragraph (a) is replaced by the following:

Return and payment of tax

(2) A person liable to pay a tax under this Part in respect of a year shall, on or before its balance-due day for a taxation year ,

(2) Subsection (1) applies to taxation years that begin after June 2003.

126. (1) Paragraph 209(4)(b) of the Act is replaced by the following:

    (b) the remainder, if any, of the tax payable by the person under this Part for the year, on or before the person's balance-due day for the year.

(2) Subsection (1) applies to taxation years that begin after June 2003.

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