;

Bill C-13

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1994, c. 35

Yukon First Nations Self-Government Act

98. (1) The Yukon First Nations Self-Government Act is amended by adding the following after section 22.

Definitions

22.1 (1) The following definitions apply in this section.

“band”
« bande »

“band” has the same meaning as in section 2 of the Indian Act.

“Indian”
« Indien »

“Indian” has the same meaning as in section 2 of the Indian Act.

“reserve”
« réserve »

“reserve” has the same meaning as in section 2 of the Indian Act.

“transition period”
« période de transition »

“transition period”, in respect of a first nation, means the period beginning on the day of the year on which the first nation’s final agreement is brought into effect and ending on December 31 of that year.

Taxation exemption — former reserves

(2) During the transition period of a first nation, income of a band or an Indian, other than an Indian enrolled under a final agreement that came into effect before the calendar year that includes the transition period, is exempt from taxation under the Income Tax Act, if the situs of the income is on land of the first nation that was a reserve throughout the portion of that calendar year before the transition period.

Taxation exemption — Indians enrolled

(3) During the transition period of a first nation, income of an Indian who is enrolled under the first nation’s final agreement and is resident in the Yukon is exempt from taxation under the Income Tax Act, if the situs of the income is on a reserve.

(2) Subsection (1) is deemed to have come into force on January 1, 1999.

PART 5

OTHER TAX-RELATED AMENDMENTS

2002, c. 9, s. 5

Air Travellers Security Charge Act

99. (1) Subsection 21(2) of the Air Travellers Security Charge Act is replaced by the following:

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 may apply those amounts against any amount owing, at that time, by the carrier to Her Majesty. However, if the carrier, at that time, does not owe any amount to Her Majesty, those amounts payable are deemed to be nil.

(2) Subsection (1) comes into force on April 1, 2007.

100. (1) Section 25 of the Act is renumbered as subsection 25(1) and is amended by adding the following:

Effect of extension

(2) If the Minister extends the time within which a person shall file a return or provide information under subsection (1),

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

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

(c) any interest payable under section 27 on the amount referred to in paragraph (b) shall be calculated as though the amount were required to be paid on the day on which the extended time expires; and

(d) any penalty payable under section 53 in respect of the return shall be calculated as though the return were required to be filed on the day on which the extended time expires.

(2) Subsection (1) applies in respect of any extension of time that expires on or after April 1, 2007.

101. (1) Subsection 27(1) of the Act is replaced by the following:

Compound interest on amounts not paid when required

27. (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 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.

(2) Section 27 of the Act is amended by adding the following after subsection (2):

Payment before specified date

(3) If the Minister has served a demand that a person pay on or before a specified date all amounts payable by the person under this Act on the date of the demand, and the person pays the amount demanded on or before the specified date, the Minister shall waive any interest that would otherwise apply in respect of the amount demanded for the period beginning on the first day following the date of the demand and ending on the day of payment.

(3) Subsection (1) comes into force on April 1, 2007.

(4) For the purposes of applying subsection 27(1) of the Act, as enacted by subsection (1), any penalty accrued before April 1, 2007 that remains unpaid on April 1, 2007 is deemed to be an amount required to be paid to the Receiver General on March 31, 2007.

(5) Subsection (2) comes into force on April 1, 2007, except that, in respect of any demand served before April 1, 2007 for which a penalty under subsection 53(1) of the Act, as it read on March 31, 2007, is payable, subsection 27(3) of the Act, as enacted by subsection (2), shall be read as follows:

(3) If the Minister has served a demand that a person pay on or before a specified date all amounts payable by the person under this Act on the date of the demand, and the person pays the amount demanded on or before the specified date, the Minister shall waive any penalty and interest that would otherwise apply in respect of the amount demanded for the period beginning on the first day following the date of the demand and ending on the day of payment.

102. (1) Section 30 of the Act is replaced by the following:

Waiving or reducing interest

30. (1) The Minister may, on or before the day that is ten calendar years after the end of a fiscal month of a person, waive or reduce any interest payable by the person under this Act on an amount that is required to be paid by the person under this Act in respect of the fiscal month.

Interest where amounts waived or reduced

(2) If a person has paid an amount of interest and the Minister has waived or reduced under subsection (1) any portion of the amount, the Minister shall pay interest at the prescribed rate on an amount equal to the portion of the amount that was waived or reduced 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 portion is refunded to the person.

(2) Subsection (1) comes into force on April 1, 2007.

103. (1) The Act is amended by adding the following after section 30:

Administrative Charge under the Financial Administration Act

Dishonoured instruments

30.1 For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that becomes payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid.

(2) Subsection (1) applies in respect of any instrument that is dishonoured on or after April 1, 2007.

104. (1) Subsection 40(4) of the Act is replaced by the following:

Restriction

(4) A refund shall not be paid until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under this Act, the Excise Act, 2001, the Excise Tax Act and the Income Tax Act.

(2) Subsection (1) comes into force on April 1, 2007.

105. (1) Section 53 of the Act is replaced by the following:

Failure to file a return when required

53. Every person who fails to file a return for a fiscal month as and when required under this Act shall pay a penalty equal to the sum of

(a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the fiscal month and was not paid on the day on which the return was required to be filed, and

(b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed.

(2) Subsection (1) comes into force on April 1, 2007.

(3) For the purposes of section 53 of the Act, as enacted by subsection (1), a return that is required to be filed before April 1, 2007 and that has not been filed before that day is deemed to be required to be filed on March 31, 2007.

106. (1) Section 54 of the Act is repealed.

(2) Subsection (1) applies in respect of any extension of time that expires on or after April 1, 2007.

107. (1) Section 55 of the Act is replaced by the following:

Waiving or cancelling penalties

55. (1) The Minister may, on or before the day that is ten calendar years after the end of a fiscal month of a person, waive or cancel any penalty payable by the person under section 53 in respect of the fiscal month.

Interest where amount waived or cancelled

(2) If a person has paid an amount of penalty and the Minister waives or 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 to the person.

(2) Subsection (1) comes into force on or after April 1, 2007.

108. (1) Section 56 of the Act is replaced by the following:

Failure to answer demand

56. Every person who fails to file a return as and when required under a demand issued under section 26 is liable to a penalty of $250.

(2) Subsection (1) applies in respect of any demand served under section 26 of the Act by the Minister of National Revenue on or after April 1, 2007.

109. (1) Subsection 61(2) of the Act is replaced by the following:

Saving

(2) A person who is convicted of an offence under subsection (1) for a failure to comply with a provision of this Act is not liable to pay a penalty imposed under section 53, 56 or 57 for the same failure, unless a notice of assessment for the penalty was issued before the information or complaint giving rise to the conviction was laid or made.

(2) Subsection (1) applies in respect of any penalty imposed on or after April 1, 2007.

110. (1) Subsection 62(3) of the Act is replaced by the following:

Penalty on conviction

(3) A person who is convicted of an offence under subsection (1) is not liable to pay a penalty imposed under any of sections 53 and 56 to 58 for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made.

(2) Subsection (1) applies in respect of any penalty imposed on or after April 1, 2007.

111. (1) Subsection 72(3) of the Act is replaced by the following:

Assessment before collection

(3) The Minister may not take any collection action under sections 74 to 79 in respect of any amount payable by a person that may be assessed under this Act, other than interest under section 27, unless the amount has been assessed.

(2) Subsection (1) comes into force on April 1, 2007.

112. (1) Paragraphs 74(12)(a) and (b) of the Act are replaced by the following:

(a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total;

(b) to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the prescribed rate under this Act applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any period; and

(c) to refer to the penalty calculated under section 53 to be charged on the separate amounts making up the amount payable in general terms as a penalty under that section on amounts payable to the Receiver General.

(2) Subsection (1) applies in respect of any certificate made under subsection 74(1) of the Act in respect of amounts that became payable to the Receiver General on or after April 1, 2007.

2002, c. 22

Excise Act, 2001

2003, c. 15, s. 58

113. (1) Subsection 165(2) of the Excise Act, 2001 is replaced by the following:

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 may apply those amounts against any amount owing, at that time, by the person to Her Majesty. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts are deemed to be nil.

(2) Subsection (1) comes into force on April 1, 2007.

114. (1) Subsection 168(2) of the Act is amended by striking out the word “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:

(c) any interest payable under section 170 on any amount payable in respect of the return shall be calculated as though the amount were required to be paid on the day on which the extended time expires; and

(d) any penalty payable under section 251.1 in respect of the return shall be calculated as though the return were required to be filed on the day on which the extended time expires.

(2) Subsection (1) applies in respect of any extension of time that expires on or after April 1, 2007.

2003, c. 15, s. 92(1)

115. (1) Subsection 170(4) of the Act is replaced by the following:

Minimum interest and penalty

(4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty payable under section 251.1, owing at that time to Her Majesty under this Act for a fiscal month of the person and the total amount of interest and the penalty payable by the person under this Act for that month is not more than $25.00, the Minister may waive the total amount.

(2) Subsection (1) applies in respect of any fiscal month of a person that ends on or after April 1, 2007.

116. (1) Section 173 of the Act is replaced by the following:

Waiving or reducing interest

173. The Minister may, on or before the day that is ten calendar years after the day an amount was required to be paid by a person under this Act, waive or reduce any interest on the amount payable by the person under section 170.

(2) Subsection (1) comes into force on April 1, 2007.

117. (1) The portion of subsection 188(3) of the French version of the Act before paragraph (a) is replaced by the following:

Application de sommes non demandées

(3) Le ministre, s’il constate les faits ci-après relativement à un remboursement lors de l’établissement d’une cotisation concernant les droits, intérêts ou autres sommes exigibles d’une personne pour un mois d’exercice de celle-ci ou concernant une autre somme exigible d’une personne en vertu de la présente loi, applique tout ou partie du montant de remboursement en réduction des droits, intérêts ou autres sommes exigibles comme si la personne avait versé, à la date visée aux sous-alinéas a)(i) ou (ii), le montant ainsi appliqué au titre de ces droits, intérêts ou autres sommes :

(2) The portion of subsection 188(3) of the English version of the Act after paragraph (c) is replaced by the following:

the Minister shall apply all or part of the refund against that duty, interest or other amount that is payable as if the person had, on the particular day, paid the amount so applied on account of that duty, interest or other amount.

(3) The portion of subsection 188(4) of the Act before paragraph (a) is replaced by the following:

Application of overpayment

(4) If, in assessing the duty payable by a person for a fiscal month of the person, the Minister determines that there is an overpayment of duty payable for the month, unless the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall

(4) The portion of subsection 188(5) of the Act before paragraph (a) is replaced by the following:

Application of payment

(5) If, in assessing the duty payable by a person for a fiscal month of the person or an amount (in this subsection referred to as the “overdue amount”) payable by a person under this Act, all or part of a refund is not applied under subsection (3) against that duty payable or overdue amount, except if the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall

(5) Subsection 188(6) of the Act is replaced by the following:

Limitation on refunding overpayments

(6) An overpayment of duty payable for a fiscal month of a person and interest on the overpayment shall not be applied under paragraph (4)(b) or refunded under paragraph (4)(c) unless the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with the Minister under this Act, the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act.

(6) Subparagraph 188(7)(b)(ii) of the Act is replaced by the following:

(ii) the person has filed all returns and other records of which the Minister has knowledge and that the person was required to file with the Minister under this Act, the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act before the day on which notice of the assessment is sent to the person.

(7) Section 188 of the Act is amended by adding the following after subsection (9):

Refund of interest or penalty

(9.1) Despite subsection (9), if a person has paid an amount of interest or penalty and the Minister waives or reduces that amount under section 173 or 255.1, as the case may be, the Minister shall refund the amount of the waiver or reduction to the person, together with interest on the amount of the waiver or reduction 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 that section and ending on the day on which the refund is paid.

(8) Subsections (1) to (7) come into force on April 1, 2007.

118. (1) Subsection 189(4) of the Act is replaced by the following:

Restriction

(4) A refund shall not be paid until the person has filed with the Minister all returns and other records of which the Minister has knowledge and that are required to be filed under this Act, the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act.

(2) Subsection (1) comes into force on April 1, 2007.

119. (1) Section 251 of the Act is replaced by the following:

Failure to answer demand

251. Every person who does not file a return as and when required under a demand issued under section 169 is liable to a penalty equal to $250.

Failure to file return

251.1 Every person who fails to file a return for a fiscal month as and when required under this Act shall pay a penalty equal to the sum of

(a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the fiscal month and was not paid before the end of the day on which the return was required to be filed, and

Dishonoured instruments

251.2 For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that becomes payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid.

(2) Section 251 of the Act, as enacted by subsection (1), applies in respect of any demand under section 169 of the Act served by the Minister of National Revenue on or after April 1, 2007.

(3) Section 251.1 of the Act, as enacted by subsection (1), applies

(a) in respect of any return that is required to be filed under the Act on or after April 1, 2007; and

(b) in respect of any return that is required to be filed under the Act before that day if it is not filed on or before March 31, 2007, in which case the day on or before which the return is required to be filed is deemed to be March 31, 2007 for the purposes of calculating any penalty under that section.

(4) Section 251.2 of the Act, as enacted by subsection (1), applies in respect of any instrument that is dishonoured on or after April 1, 2007.

120. (1) Subsection 254(1) of the Act is replaced by the following:

Notice of imposed penalty

254. (1) A penalty that a person is liable to pay under any of sections 233 to 253, other than section 251.1, may be imposed by the Minister by serving on the person a written notice of the imposed penalty or by sending the notice by registered or certified mail to the person’s last known address.

(2) Subsection (1) comes into force on April 1, 2007.

121. (1) The Act is amended by adding the following after section 255:

Waiving or reducing failure to file penalty

255.1 The Minister may, on or before the day that is ten calendar years after the end of a fiscal month of a person, waive or reduce any penalty payable by the person under section 251.1 in respect of a return for the fiscal month.

(2) Subsection (1) comes into force on April 1, 2007.

122. (1) Paragraph 286(1)(e) of the Act is repealed.

(2) Subsection (1) comes into force on April 1, 2007.

123. (1) Paragraphs 288(12)(a) and (b) of the Act are replaced by the following:

(a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total;

(c) to refer to the penalty calculated under section 251.1 to be charged on the separate amounts making up the amount payable in general terms as a penalty under that section on amounts payable to the Receiver General.

(2) Subsection (1) applies in respect of any certificate made under subsection 288(1) of the Act in respect of amounts that became payable to the Receiver General on or after April 1, 2007.

R.S., c. E-15

Excise Tax Act

2003, c. 15, s. 94(1)

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

Definition

7. (1) In this section, “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.

Failure to file a return when required

(1.1) Every person who fails to file a return for a period as and when required under subsection 5(1) shall pay a penalty equal to the sum of

(a) an amount equal to 1% of the amount of tax unpaid at the expiration of the time for filing the return, and

(2) Subsection (1) comes into force on April 1, 2007.

(3) For the purposes of subsections 7(1) and (1.1) of the Act, as enacted by subsection (1), a return that is required to be filed before April 1, 2007 and that has not been filed before that day is deemed to be required to be filed on March 31, 2007.

125. (1) Section 68.5 of the Act is amended by adding the following after subsection (9):

Failure to file a report when required

(9.1) Every person who fails to file a reconciliation report for a period as and when required under this section shall pay a penalty equal to the sum of

(a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the period and was not paid before April 1, 2007, and

(b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from that day to the day on which the report is filed.

(2) Subsection (1) comes into force on April 1, 2007.

126. (1) The Act is amended by adding the following after section 76:

Restriction on refunds and credits

77. A refund shall not be paid, and a credit shall not be allowed, to a person under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act and the Income Tax Act.

(2) Subsection (1) comes into force on April 1, 2007.

127. (1) Section 79 of the Act is amended by adding the following after subsection (3):

Demand for return

(4) The Minister may, by a demand served personally or by registered or certified mail, require a 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.

Failure to answer a demand

(5) Every person who fails to file a return as and when required under a demand issued under subsection (4) is liable to a penalty of $250.

(2) Subsection (1) comes into force on April 1, 2007.

2003, c. 15, s. 100(1)

128. (1) Section 79.01 of the Act is repealed.

(2) Subsection (1) comes into force on April 1, 2007.

2003, c. 15, s. 100(1)

129. (1) Subsection 79.02(2) of the Act is replaced by the following:

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 may 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 in right of Canada, those amounts payable are deemed to be nil.

(2) Subsection (1) comes into force on April 1, 2007.

2003, c. 15, s. 100(1)

130. (1) Subsection 79.03(4) of the Act is replaced by the following:

Interest and penalty 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 and penalty under subsection 7(1.1) or 68.5(9.1) or section 95.1, owing at that time to Her Majesty in right of Canada under this Act for a reporting period of the person and the total amount of interest and penalty payable by the person under this Act for that reporting period is not more than $25.00, the Minister may cancel the interest and penalty.

(2) Subsection (1) applies in respect of any reporting period of a person that ends on or after April 1, 2007.

R.S., c. 12 (4th Supp.), s. 33(1); 2002, c. 22, s. 384(4); 2003, c. 15, ss. 101(1) and (3) and 130(3), (4) and (6)

131. (1) Section 79.1 of the Act is repealed.

(2) Subsection (1) applies to fiscal months that begin after March 31, 2007.

132. (1) The Act is amended by adding the following after section 81.39:

Administrative Charge under the Financial Administration Act

Dishonoured instruments

81.4 For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that becomes payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid.

(2) Subsection (1) applies in respect of any instrument that is dishonoured on or after April 1, 2007.

R.S., c. 7 (2nd Supp.), s. 41(1)

133. (1) Subsection 86(4) of the Act is amended by adding the word “or” at the end of paragraph (b), by striking out the word “or” at the end of paragraph (c) and by repealing paragraph (d).

R.S., c. 7 (2nd Supp.), s. 41(1)

(2) Subsection 86(5) of the Act is replaced by the following:

Delay where objection

(5) If a person has served a notice of objection under section 81.15, otherwise than pursuant to section 81.33, the Minister shall not, for the purpose of collecting the sum in controversy, take any of the actions described in paragraphs (4)(a) to (c) before ninety days after the day on which the notice of decision is sent to that person.

R.S., c. 7 (2nd Supp.), s. 41(1); 2002, c. 8, par. 183(1)(j)

(3) The portion of subsection 86(6) of the Act before paragraph (a) is replaced by the following:

Delay where appeal

(6) If a person has appealed to the Tribunal or the Federal Court under this Part, otherwise than pursuant to section 81.33, in respect of an assessment, the Minister shall not, for the purpose of collecting the sum in controversy, take any of the actions described in paragraphs (4)(a) to (c),

R.S., c. 7 (2nd Supp.), s. 41(1); 2002, c. 8, s. 140

(4) Subsections 86(7) and (8) of the Act are replaced by the following:

Delay where reference

(7) If a person is named in a reference under section 81.36, agrees to a reference under section 81.37 or appears as a party at the hearing of any such reference, the Minister shall not, for the purpose of collecting any sum for which that person has been assessed and of which the liability for payment will be affected by the determination of the question, take any of the actions described in paragraphs (4)(a) to (c) before the day on which the question is determined by the Court.

Delay when agreement

(8) Despite subsections (1) to (7), if a person has served a notice of objection under section 81.15 or has appealed to the Tribunal or the Federal Court under this Part, otherwise than under section 81.33, in respect of an assessment and agrees in writing with the Minister to delay proceedings on the objection or appeal until a decision or judgment is rendered in another action before the Tribunal, the Federal Court, the Federal Court of Appeal or the Supreme Court of Canada in which the issue is the same or substantially the same as that raised in the objection or appeal of that person, the Minister may take any of the actions described in paragraphs (4)(a) to (c) for the purpose of collecting any sum for which that person has been assessed, determined in a manner consistent with the decision or judgment of the Tribunal or Court in the other action, at any time after the Minister notifies the person in writing that the decision or judgment has been rendered.

(5) Subsections (1) to (4) come into force on April 1, 2007.

R.S., c. 7 (2nd Supp.), s. 41(1)

133.1 (1) Subsection 87(1) of the Act is replaced by the following:

Collection in jeopardy

87. (1) Despite section 86, if it may reasonably be considered that the collection of any sum for which a person has been assessed would be jeopardized by a delay under that section and the Minister has, by a notice served personally or by registered or certified mail, so advised that person and directed them to pay that sum or any part of it, the Minister may without delay take any of the actions described in paragraphs 86(4)(a) to (c) with respect to that sum or part.

(2) Subsection (1) comes into force on April 1, 2007.

2003, c. 15, s. 109(1)

134. (1) Subsection 88(1) of the Act is replaced by the following:

Waiver or cancellation of interest or penalty

88. (1) The Minister may, on or before the day that is ten calendar years after the end of a reporting period of a person, waive or cancel any amount otherwise payable to the Receiver General under this Act that is interest or a penalty on an amount that is required to be paid by the person under this Act in respect of the reporting period.

(2) Subsection (1) comes into force on April 1, 2007.

135. (1) The Act is amended by adding the following after section 95:

Failure to file a return when required

95.1 Every person who fails to file a return for a fiscal month as and when required under subsection 79(1) shall pay a penalty equal to the sum of

(2) Subsection (1) comes into force on April 1, 2007.

(3) For the purposes of section 95.1 of the Act, as enacted by subsection (1), a return that is required to be filed before April 1, 2007 and that has not been filed before that day is deemed to be required to be filed on March 31, 2007.

136. (1) The definition “financial service” in subsection 123(1) of the Act is amended by adding the following after paragraph (r.1):

(r.2) a debt collection service, rendered under an agreement between a person agreeing to provide, or arranging for, the service and a particular person other than the debtor, in respect of all or part of a debt, including a service of attempting to collect, arranging for the collection of, negotiating the payment of, or realizing or attempting to realize on any security given for, the debt, but does not include a service that consists solely of accepting from a person (other than the particular person) a payment of all or part of an account unless

(i) under the terms of the agreement the person rendering the service may attempt to collect all or part of the account or may realize or attempt to realize on any security given for the account, or

(ii) the principal business of the person rendering the service is the collection of debt,

(2) Subsection (1) applies to a debt collection service rendered under an agreement for a supply if

(a) any consideration for the supply becomes due after November 17, 2005, or is paid after that day without having become due; or

(b) all of the consideration for the supply became due or was paid on or before that day unless the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply or in respect of any other supply that includes a debt collection service and that is made under the agreement.

1997, c. 10, s. 44(1)

137. (1) Subparagraph 225(3)(b)(ii) of the Act is replaced by the following:

(ii) if the person does not report the error to the Minister at least three months before the time limited by subsection 298(1) for assessing the net tax of the person for that preceding period expires, the person pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable interest to the Receiver General.

(2) Subsection (1) applies for the purpose of determining the net tax for a reporting period of a person if the person’s preceding reporting period referred to in subsection 225(3) of the Act ends on or after April 1, 2007.

1997, c. 10, s. 45(1)

138. (1) Subparagraph 225.1(4)(b)(ii) of the Act is replaced by the following:

(ii) if the charity does not report the error to the Minister at least three months before the time limited by subsection 298(1) for assessing the net tax of the charity for that preceding period expires, the charity pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable interest to the Receiver General.

(2) Subsection (1) applies for the purpose of determining the net tax for a reporting period of a charity if the charity’s preceding reporting period referred to in subsection 225.1(4) of the Act ends on or after April 1, 2007.

1997, c. 10, s. 211(1)

139. (1) Subsection 229(2) of the Act is replaced by the following:

Restriction

(2) A net tax refund for a reporting period of a person shall not be paid to the person under subsection (1) at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister.

1990, c. 45, s. 12(1); 1993, c. 27, s. 203 (Sch. I, par. 1(c)

(2) Subsection 229(3) of the Act is replaced by the following:

Interest on refund

(3) If a net tax refund for a reporting period of a person is paid to the person under subsection (1), interest at the prescribed rate shall be paid to the person on the net tax refund for the period beginning on the day that is 30 days after the later of the day the return in which the refund is claimed is filed with the Minister and the day following the last day of the reporting period and ending on the day the refund is paid.

1990, c. 45, s. 12(1)

(3) Subsection 229(4) of the Act is repealed.

(4) Subsections (1) and (3) come into force on April 1, 2007.

(5) Subsection (2) applies to any net tax refund for a reporting period of a person that ends on or after April 1, 2007.

1990, c. 45, s. 12(1); 1997, c. 10, s. 48(2)

140. (1) Subsection 230(2) of the Act is replaced by the following:

Restriction

(2) An amount paid on account of net tax for a reporting period of a person shall not be refunded to the person under subsection (1) at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister.

1997, c. 10, s. 48(3)

(2) Subsection 230(3) of the Act is replaced by the following:

Interest on refund

(3) If a refund of an amount that was paid on account of net tax for a reporting period of a person is paid to the person under subsection (1), interest at the prescribed rate shall be paid to the person on the refund for the period beginning on the day that is 30 days after the later of the day the return for the reporting period is filed with the Minister and the day following the last day of the reporting period and ending on the day the refund is paid.

1990, c. 45, s. 12(1)

(3) Subsection 230(4) of the Act is repealed.

(4) Subsections (1) and (3) come into force on April 1, 2007.

(5) Subsection (2) applies to any refund in respect of a reporting period of a person that ends on or after April 1, 2007.

2000, c. 30, s. 65(1)

141. (1) Section 236.1 of the Act is replaced by the following:

Adjustment if property not exported or supplied

236.1 If a registrant has received a zero-rated supply of a continuous transmission commodity included in section 15.2 of Part V of Schedule VI and the commodity is neither exported, as described in paragraph (a) of that section, nor supplied, as described in paragraph (b) of that section, by the registrant, the registrant shall, in determining the net tax of the registrant for the reporting period that includes the earliest day on which tax, calculated at the rate set out in subsection 165(1), would, in the absence of that section, have become payable in respect of the supply, add an amount equal to interest, at the prescribed rate, on the total amount of tax that would have been payable in respect of the supply if it were not a zero-rated supply, computed for the period beginning on that earliest day and ending on the day on or before which the return under section 238 for that reporting period is required to be filed.

(2) Subsection (1) applies in respect of any supply of a continuous transmission commodity made to a registrant in respect of which tax would have, in the absence of section 15.2 of Part V of Schedule VI to the Act, first become payable on a particular day that is in a reporting period of the registrant for which the return under section 238 of the Act is required to be filed on or before a day that is after March 31, 2007, except that if the particular day is before April 1, 2007, and the day on or before which the return for the reporting period that includes the particular day is required to be filed is on or after April 1, 2007, section 236.1 of the Act, as enacted by subsection (1), shall be read as follows:

(a) interest, at the rate prescribed for the purposes of paragraph 280(1)(b) plus 4% per year compounded daily, on the total amount of tax that would have been payable in respect of the supply if it were not a zero-rated supply, computed for the period beginning on that earliest day and ending on March 31, 2007, and

(b) interest, at the prescribed rate, on the total amount of tax that would have been payable in respect of the supply if it were not a zero-rated supply plus the interest referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the day on or before which the return under section 238 for that reporting period is required to be filed.

2001, c. 15, s. 11(1)

142. (1) Subsection 236.2(1) of the Act is replaced by the following:

Adjustment if invalid use of export certificate

236.2 (1) If a registrant has received a supply of property (other than a supply that is included in any provision of Schedule VI other than section 1.1 of Part V of that Schedule) from a supplier to whom the registrant has provided an export certificate (within the meaning of section 221.1) for the purpose of that supply and an authorization of the registrant to use the certificate was not in effect at the time the supply was made or the registrant does not export the property in the circumstances described in paragraphs 1(b) to (d) of that Part, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the earliest day on which tax in respect of the supply became payable or would have become payable if the supply were not a zero-rated supply, add an amount equal to interest at the prescribed rate on the total amount of tax in respect of the supply that was payable or would have been payable if the supply were not a zero-rated supply, computed for the period beginning on that earliest day and ending on the day on or before which the return under section 238 for that reporting period is required to be filed.

2001, c. 15, s. 11(1)

(2) The description of B in subsection 236.2(2) of the Act is replaced by the following:

B is the prescribed rate of interest that is in effect on the last day of that first reporting period following the year.

(3) Subsection (1) applies in respect of a supply of property made to a registrant in respect of which tax first became payable, or would have first become payable if the supply were not a zero-rated supply, on a particular day that is in a reporting period of the registrant for which the return under section 238 of the Act is required to be filed on or before a day that is after March 31, 2007, except that if the particular day is before April 1, 2007, and the day on or before which the return for the reporting period that includes the particular day is required to be filed is on or after April 1, 2007, subsection 236.2(1) of the Act, as enacted by subsection (1), shall be read as follows:

236.2 (1) If a registrant has received a supply of property (other than a supply that is included in any provision of Schedule VI other than section 1.1 of Part V of that Schedule) from a supplier to whom the registrant has provided an export certificate (within the meaning of section 221.1) for the purpose of that supply and an authorization of the registrant to use the certificate was not in effect at the time the supply was made or the registrant does not export the property in the circumstances described in paragraphs 1(b) to (d) of that Part, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the earliest day on which tax in respect of the supply became payable, or would have become payable if the supply were not a zero-rated supply, add an amount equal to the total of

(a) interest, at the rate prescribed for the purposes of paragraph 280(1)(b) plus 4% per year compounded daily, on the total amount of tax that was payable or would have been payable if the supply were not a zero-rated supply, computed for the period beginning on that earliest day and ending on March 31, 2007, and

(b) interest, at the prescribed rate, on the total amount of tax that was payable or would have been payable if the supply were not a zero-rated supply, plus the interest referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the day on or before which the return under section 238 for that reporting period is required to be filed.

(4) Subsection (2) applies in respect of any reporting period of a registrant following a fiscal year of the registrant that ends on or after April 1, 2007, except that if the fiscal year of the registrant includes April 1, 2007, subsection 236.2(2) of the Act, as amended by subsection (2), shall be read as follows:

(2) If a registrant’s authorization to use an export certificate (within the meaning of section 221.1) is deemed to have been revoked under subsection 221.1(6) effective immediately after the last day of a fiscal year of the registrant, the registrant shall, in determining the net tax for the first reporting period of the registrant following that year, add the total of all amounts each of which is determined by the formula

A × B/12

where

A is

(a) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount of consideration that was paid or became payable before April 1, 2007, by the registrant for a supply made in a non-participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period,

(b) the product obtained when the total of the rates set out in subsections 165(1) and (2) is multiplied by an amount of consideration that was paid or became payable before April 1, 2007, by the registrant for a supply made in a participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period,

(c) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount of consideration not included in paragraph (a) that was paid or became payable on or after April 1, 2007, by the registrant for a supply made in a non-participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, and

(d) the product obtained when the total of the rates set out in subsections 165(1) and (2) is multiplied by an amount of consideration not included in paragraph (b) that was paid or became payable on or after April 1, 2007, by the registrant for a supply made in a participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period; and

B is

(a) in the case where paragraph (a) or (b) of the description of A applies, the total of 4% and the rate of interest prescribed for the purposes of paragraph 280(1)(b) (expressed as a percentage per year) that is in effect on March 31, 2007, and

(b) in any other case, the prescribed rate of interest that is in effect on the last day of that first reporting period following the year.

2001, c. 15, s. 11(1)

143. (1) Subsection 236.3(1) of the Act is replaced by the following:

Adjustment if invalid use of export distribution centre certificate

236.3 (1) If a registrant has received a supply of property (other than a supply that is included in any provision of Schedule VI other than section 1.2 of Part V of that Schedule) from a supplier to whom the registrant has provided an export distribution centre certificate (within the meaning of section 273.1) for the purpose of that supply and an authorization of the registrant to use the certificate was not in effect at the time the supply was made or the property was not acquired by the registrant for use or supply as domestic inventory or as added property (as those expressions are defined in subsection 273.1(1)) in the course of commercial activities of the registrant, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the earliest day on which tax in respect of the supply became payable or would have become payable if the supply were not a zero-rated supply, add an amount equal to interest, at the prescribed rate, on the total amount of tax in respect of the supply that was payable or that would have been payable in respect of the supply if the supply were not a zero-rated supply, computed for the period beginning on that earliest day and ending on the day on or before which the return under section 238 for that reporting period is required to be filed.

2001, c. 15, s. 11(1)

(2) The description of B in subsection 236.3(2) of the Act is replaced by the following:

B is the prescribed rate of interest that is in effect on the last day of that first reporting period following the year.

(3) Subsection (1) applies in respect of a supply of property made to a registrant in respect of which tax first became payable, or would have first become payable if the supply were not a zero-rated supply, on a particular day that is in a reporting period of the registrant for which the return under section 238 of the Act is required to be filed on or before a day that is after March 31, 2007, except that if the particular day is before April 1, 2007, and the day on or before which the return for the reporting period that includes the particular day is required to be filed is on or after April 1, 2007, subsection 236.3(1) of the Act, as enacted by subsection (1), shall be read as follows:

(a) interest, at the rate prescribed for the purposes of paragraph 280(1)(b) plus 4% per year compounded daily, on the total amount of tax in respect of the supply that was payable or that would have been payable in respect of the supply if it were not a zero-rated supply, computed for the period beginning on that earliest day and ending on March 31, 2007, and

(b) interest, at the prescribed rate, on the total amount of tax in respect of the supply that was payable or that would have been payable in respect of the supply if it were not a zero-rated supply plus the interest referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the day on or before which the return under section 238 for that reporting period is required to be filed.

(4) Subsection (2) applies in respect of any reporting period of a registrant following a fiscal year of the registrant that ends on or after April 1, 2007, except that if the fiscal year of the registrant includes April 1, 2007, subsection 236.3(2) of the Act, as amended by subsection (2), shall be read as follows:

(2) If an authorization granted to a registrant under subsection 273.1(7) is in effect at any time in a fiscal year of the registrant and the export revenue percentage of the registrant (as defined in subsection 273.1(1)) for that year is less than 90% or the circumstances described in paragraph 273.1(11)(a) or (b) exist with respect to the year, the registrant shall, in determining the net tax for the first reporting period of the registrant following the year, add the total of all amounts each of which is determined by the formula

A × B/12

where

A is

(a) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount of consideration that was paid or became payable before April 1, 2007, by the registrant for a supply made in a non-participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period,

(b) the product obtained when the total of the rates set out in subsections 165(1) and (2) is multiplied by an amount of consideration that was paid or became payable before April 1, 2007, by the registrant for a supply made in a participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period,

(c) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount which is the value that is or would be, but for subsection 215(2), deemed under subsection 215(1) to be the value, for the purposes of Division III, of a good that was imported before April 1, 2007, by the registrant in the year and in respect of which, by reason only of section 11 of Schedule VII, tax under that Division did not apply,

(d) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount of consideration not included in paragraph (a) that was paid or became payable on or after April 1, 2007, by the registrant for a supply made in a non-participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period,

(e) the product obtained when the total of the rates set out in subsections 165(1) and (2) is multiplied by an amount of consideration not included in paragraph (b) that was paid or became payable on or after April 1, 2007, by the registrant for a supply made in a participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, and

(f) the product obtained when the rate set out in subsection 165(1) is multiplied by an amount which is the value that is or would be, but for subsection 215(2), deemed under subsection 215(1) to be the value, for the purposes of Division III, of a good that was imported on or after April 1, 2007, by the registrant in the year and in respect of which, by reason only of section 11 of Schedule VII, tax under that Division did not apply; and

B is

(a) in the case where paragraph (a), (b) or (c) of the description of A applies, the total of 4% and the rate of interest prescribed for the purposes of paragraph 280(1)(b) (expressed as a percentage per year) that is in effect on March 31, 2007, and

(b) in any other case, the prescribed rate of interest that is in effect on the last day of that first reporting period following the year.

2001, c. 15, s. 16(1)

144. (1) Subsection 256.2(10) of the Act is replaced by the following:

Repayment of rebate

(10) If a person was entitled to claim a rebate under subsection (3) in respect of a qualifying residential unit (other than a unit located in a multiple unit residential complex) and, within one year after the unit is first occupied as a place of residence after the construction or last substantial renovation of the unit was substantially completed, the person makes a supply by way of sale (other than a supply deemed under section 183 or 184 to have been made) of the unit to a purchaser who is not acquiring the unit for use as the primary place of residence of the purchaser or of a relation of the purchaser, the person shall pay to the Receiver General an amount equal to the rebate plus interest at the prescribed rate less 2% per year, calculated on that amount for the period beginning on the day the rebate was paid or applied to a liability of the person and ending on the day the amount of the rebate is paid by the person to the Receiver General.

(2) Subsection (1) applies in respect of any rebate that a person was entitled to claim if the amount of the rebate is paid by the person to the Receiver General on or after April 1, 2007, except that if the rebate was paid to the person before that day, subsection 256.2(10) of the Act, as enacted by subsection (1), shall be read as follows:

(a) interest at the rate prescribed for the purposes of paragraph 280(1)(b), calculated on that amount for the period beginning on the day the rebate was paid or applied to a liability of the person and ending on March 31, 2007, and

(b) interest at the prescribed rate less 2% per year, calculated on the total of that amount plus the interest referred to in paragraph (a) for the period beginning on April 1, 2007, and ending on the day the amount of the rebate is paid by the person to the Receiver General.

145. (1) The Act is amended by adding the following after section 263.01:

Restriction on rebate

263.02 A rebate under this Part shall not be paid to a person at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister.

(2) Subsection (1) comes into force on April 1, 2007.

1990, c. 45, s. 12(1); 2000, c. 30, s. 83(1)(F)

146. (1) Subsection 280(1) of the Act is replaced by the following:

Interest

280. (1) Subject to this section and section 281, if a person fails to remit or pay an amount to the Receiver General when required under this Part, the person shall pay interest at the prescribed rate on the amount, computed for the period beginning on the first day following the day on or before which the amount was required to be remitted or paid and ending on the day the amount is remitted or paid.

1997, c. 10, s. 235(1); 2000, c. 30, s. 83(2)(F)

(2) Subsection 280(1.1) of the Act is replaced by the following:

Interest on net tax of selected listed financial institutions

(1.1) Despite subsection (1), if a selected listed financial institution that is required to pay an amount under subsection 228(2.1) on account of the financial institution’s net tax for a reporting period fails to pay all of that amount within the time specified in that subsection, the financial institution shall pay, on the amount not paid, interest at the prescribed rate, computed for the period beginning on the first day following that time and ending on the earlier of

(a) the day the total of the amount and interest is paid, and

(b) the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period.

1990, c. 45, s. 12(1); 2000, c. 30, s. 83(3)(F)

(3) Subsection 280(2) of the Act is replaced by the following:

Interest on instalments

(2) Despite subsection (1), if a person fails to pay all of an instalment payable by the person under subsection 237(1) within the time specified in that subsection, the person shall pay, on the amount of the instalment not paid, interest at the prescribed rate, computed for the period beginning on the first day following that time and ending on the earlier of

(a) the day the total of the amount and interest is paid, and

(b) the day on or before which the tax on account of which the instalment was payable is required to be remitted.

1990, c. 45, s. 12(1)

(4) Subsection 280(3) of the Act is replaced by the following:

Interest on instalments

(3) Despite subsection (2), the total interest payable by a person under that subsection for the period beginning on the first day of a reporting period for which an instalment on account of tax is payable and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted shall not exceed the amount, if any, by which

(a) the amount of interest that would be payable under subsection (2) for the period by the person if no amount were paid by the person on account of instalments payable in the period

exceeds

(b) the total of all amounts each of which is an amount of interest at the prescribed rate that applies in the case of interest to be paid to the Receiver General, calculated on an instalment of tax paid for the period beginning on the day of that payment and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted.

1993, c. 27, s. 126(1)

(5) Subsection 280(4) of the Act is replaced by the following:

Unpaid interest on instalments

(4) If a person is required to pay interest under subsection (2) in respect of an instalment required under subsection 237(1) to be paid within the time specified in that subsection and the interest has not been paid on or before the day on or before which the tax on account of which the instalment was payable is required to be remitted, the interest is deemed, for the purposes of this Part, to be an amount required to be remitted by the person on or before that day that has not been remitted on or before that day.

1997, c. 10, s. 235(2)

(6) Subsection 280(4.01) of the Act is replaced by the following:

Unpaid interest on net tax of selected listed financial institutions

(4.01) If a selected listed financial institution is required to pay interest under subsection (1.1) in respect of an amount required under subsection 228(2.1) to be paid within the time specified in that paragraph and the interest has not been paid on or before the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period, the interest is deemed, for the purposes of this Part, to be an amount required to be remitted by the financial institution on or before that day that has not been remitted on or before that day.

1993, c. 27, s. 126(1)

(7) Subsection 280(4.1) of the Act is replaced by the following:

Payment of interest

(4.1) If interest is compounded on a particular day on an amount that a person has failed to pay or remit when required under this Part, the interest so compounded is deemed, for the purposes of this section, 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 next following day, the interest shall be added to the amount at the end of the particular day.

1990, c. 45, s. 12(1)

(8) Subsection 280(5) of the Act is repealed.

1990, c. 45, s. 12(1)

(9) Subsection 280(6) of the Act is repealed.

1990, c. 45, s. 12(1)

(10) Subsection 280(7) of the Act is replaced by the following:

Payment before specified date

(7) If the Minister has served a demand that a person pay or remit on or before a specified date all tax, net tax, instalments, amounts under section 264, penalties and interest payable by the person under this Part on the date of the demand, and the person pays the total on or before the specified date, the Minister may waive interest for the period beginning on the first day following the date of the demand and ending on the day of payment.

(11) Subsections (1) and (7) come into force on April 1, 2007.

(12) Subsection (2) applies in respect of any reporting period of a selected listed financial institution that ends on or after April 1, 2007, and for the purposes of calculating any penalty and interest in respect of an amount that the selected listed financial institution is required to pay under subsection 228(2.1) of the Act before that day and fails to pay before that day, subsection 280(1.1) of the Act, as enacted by subsection (2), shall be read as follows:

(a) a penalty of 6% per year and interest at the prescribed rate on the amount not paid, computed for the period beginning on the first day following that time and ending on March 31, 2007; and

(b) interest at the prescribed rate on the total of the amount that remains unpaid on March 31, 2007, plus the interest and penalty referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the earlier of

(i) the day the total of the amount, penalty and interest is paid, and

(ii) the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period.

(13) Subsection (3) applies in respect of any instalment payable by a person on or after April 1, 2007, and for the purposes of calculating any penalty and interest in respect of an instalment that the person is required to pay under subsection 237(1) of the Act before that day and fails to pay before that day, subsection 280(2) of the Act, as enacted by subsection (3), shall be read as follows:

(2) Despite subsection (1), if a person fails to pay all of an instalment payable by the person under subsection 237(1) within the time specified in that subsection, the person shall pay

(a) a penalty of 6% per year and interest at the prescribed rate on the amount of the instalment not paid, computed for the period beginning on the first day following that time and ending on March 31, 2007; and

(b) interest at the prescribed rate on the total of the amount of the instalment that remains unpaid on March 31, 2007, plus the interest and penalty referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the earlier of

(i) the day the total of the amount, penalty and interest is paid, and

(ii) the day on or before which the tax on account of which the instalment was payable is required to be remitted.

(14) Subsection (4) applies in respect of any reporting period of a person that begins on or after April 1, 2007. However, if the person is required to pay an instalment under subsection 237(1) of the Act before April 1, 2007, fails to pay the instalment before the time provided under section 237 of the Act and is required to remit the tax on account of which the instalment was payable on or before a day that is on or after that day, for the purposes of calculating any penalty or interest in respect of the instalment, subsection 280(3) of the Act, as enacted by subsection (4), shall be read as follows:

(a) the total of the interest and penalties that would be payable under subsection (2) for the period by the person if no amount were paid by the person on account of instalments payable in the period

exceeds

(b) the total of all amounts each of which is

(i) an amount of interest at the prescribed rate plus 6% per year, calculated on a particular instalment of tax paid before April 1, 2007, for the period beginning on the day of that payment and ending on March 31, 2007,

(ii) an amount of interest at the prescribed rate that applies in the case of interest to be paid to the Receiver General, calculated on that particular instalment of tax for the period beginning on April 1, 2007, and ending on the day on or before which the tax on account of which the particular instalment was payable is required to be remitted, and

(iii) an amount of interest at the prescribed rate that applies in the case of interest to be paid to the Receiver General, calculated on an instalment of tax paid after March 31, 2007, for the period beginning on the day of that payment and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted.

(15) Subsection (5) applies in respect of any instalment that a person first fails to pay on or after April 1, 2007.

(16) Subsection (6) applies in respect of any amount that a selected listed financial institution is required to pay under subsection 228(2.1) of the Act and first fails to pay on or after April 1, 2007.

(17) Subsection (8) applies in respect of any amount that a person fails to remit or pay on or after April 1, 2007.

(18) Subsection (9) applies in respect of any reporting period of a person that ends on or after April 1, 2007.

(19) Subsection (10) applies in respect of any demand served on or after April 1, 2007, by the Minister of National Revenue.

147. (1) The Act is amended by adding the following after section 280:

Failure to file a return

280.1 Every person who fails to file a return for a reporting period as and when required under this Part is liable to pay a penalty equal to the sum of

(a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be remitted or paid for the reporting period and was not remitted or paid, as the case may be, on or before the day on or before which the return was required to be filed, and

(b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on or before which the return was required to be filed to the day on which the return is filed.

Minimum interest and penalty

280.2 If at any time a person pays or remits all tax, net tax, instalments and amounts under section 264 payable by the person under this Part for a reporting period of the person and, immediately before that time, the total, for the reporting period, of all interest payable by the person under section 280 and penalties payable under section 280.1 is not more than $25, the Minister may cancel the total of the penalties and interest.

Dishonoured instruments

280.3 For the purposes of this Part and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under that Act in respect of an instrument tendered in payment or settlement of an amount that is payable or remittable under this Part is deemed to be an amount that becomes payable by the person at that time under this Part. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of that Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Part is paid.

(2) Section 280.1 of the Act, as enacted by subsection (1), applies

(a) in respect of any return that is required to be filed under Part IX of the Act on or after April 1, 2007; and

(b) in respect of any return that is required to be filed under Part IX of the Act before that day if it is not filed on or before March 31, 2007, in which case the day on or before which the return is required to be filed is deemed to be March 31, 2007, for the purposes of calculating any penalty under that section.

(3) Section 280.2 of the Act, as enacted by subsection (1), applies in respect of any reporting period of a person that ends on or after April 1, 2007.

(4) Section 280.3 of the Act, as enacted by subsection (1), applies in respect of any instrument that is dishonoured on or after April 1, 2007.

1990, c. 45, s. 12(1)

148. (1) Paragraphs 281(2)(c) and (d) of the Act are replaced by the following:

(c) any interest payable under section 280 on any tax or net tax payable that the person is required to report in the return shall be calculated as though the tax or net tax were required to be paid on or before the day on which the extended time expires; and

(d) any penalty payable under section 280.1 in respect of the return shall be calculated as though the return were required to be filed on or before the day on which the extended time expires.

(2) Subsection (1) applies in respect of any extension of time that expires on or after April 1, 2007.

1993, c. 27, s. 127(1)

149. (1) Section 281.1 of the Act is replaced by the following:

Waiving or cancelling interest

281.1 (1) The Minister may, on or before the day that is ten calendar years after the end of a reporting period of a person, waive or cancel interest payable by the person under section 280 on an amount that is required to be remitted or paid by the person under this Part in respect of the reporting period.

Waiving or cancelling penalties

(2) The Minister may, on or before the day that is ten calendar years after the end of a reporting period of a person, waive or cancel all or any portion of any

(a) penalty that became payable by the person under section 280 before April 1, 2007, in respect of the reporting period; and

(b) penalty payable by the person under section 280.1 in respect of a return for the reporting period.

(2) Subsection (1) comes into force on April 1, 2007.

1990, c. 45, s. 12(1)

150. (1) Section 283 of the Act is replaced by the following:

Failure to answer demand

283. Every person who fails to file a return when required pursuant to a demand issued under section 282 is liable to a penalty equal to $250.

(2) Subsection (1) applies in respect of any demand under section 282 of the Act served by the Minister of National Revenue on or after April 1, 2007.

1997, c. 10, s. 78(2)

151. (1) The portion of subsection 296(2) of the French version of the Act before paragraph (a) is replaced by the following:

Application d’un crédit non demandé

(2) Le ministre, s’il constate les faits ci-après relativement à un montant (appelé « crédit déductible » au présent paragraphe) lors de l’établissement d’une cotisation concernant la taxe nette d’une personne pour une période de déclaration donnée de celle-ci, prend en compte le crédit déductible dans l’établissement de la taxe nette pour cette période comme si la personne avait demandé le crédit déductible dans une déclaration produite pour cette pé- riode :

1997, c. 10, s. 78(2)

(2) The portion of subsection 296(2) of the English version of the Act after paragraph (c) is replaced by the following:

the Minister shall take the allowable credit into account in assessing the net tax for the particular reporting period as if the person had claimed the allowable credit in a return filed for the period.

1997, c. 10, s. 78(2)

(3) The portion of subsection 296(2.1) of the French version of the Act before paragraph (a) is replaced by the following:

Application d’un montant de remboursement non demandé

(2.1) Le ministre, s’il constate les faits ci-après relativement à un montant (appelé « montant de remboursement déductible » au présent paragraphe) lors de l’établissement d’une cotisation concernant la taxe nette d’une personne pour une période de déclaration de celle-ci ou concernant un montant (appelé « montant impayé » au présent paragraphe) qui est devenu payable par une personne en vertu de la présente partie, applique tout ou partie du montant de remboursement déductible en réduction de la taxe nette ou du montant impayé comme si la personne avait payé ou versé, à la date visée aux sous-alinéas a)(i) ou (ii), le montant ainsi appliqué au titre de la taxe nette ou du montant impayé :

1997, c. 10, s. 78(2)

(4) The portion of subsection 296(2.1) of the English version of the Act after paragraph (c) is replaced by the following:

the Minister shall apply all or part of the allowable rebate against that net tax or overdue amount as if the person had, on the particular day, paid or remitted the amount so applied on account of that net tax or overdue amount.

1997, c. 10, s. 78(2)

(5) The portion of subsection 296(3) of the Act before paragraph (a) is replaced by the following:

Application or payment of credit

(3) If, in assessing the net tax of a person for a particular reporting period of the person, the Minister determines that there is an overpayment of net tax for the particular period, except where the assessment is made in the circumstances described in paragraph 298(4)(a) or (b) after the time otherwise limited for the assessment by paragraph 298(1)(a), the Minister shall

1997, c. 10, s. 78(2)

(6) The portion of subparagraph 296(3)(b)(i) of the Act before clause (A) is replaced by the following:

(i) all or part of the overpayment that was not applied under paragraph (a) together with interest at the prescribed rate on all or that part of the overpayment, computed for the period beginning on the day that is 30 days after the latest of

1997, c. 10, s. 78(2)

(7) The portion of paragraph 296(3)(c) of the Act before subparagraph (i) is replaced by the following:

(c) refund to the person that part of the overpayment that was not applied under paragraphs (a) and (b) together with interest at the prescribed rate on that part of the overpayment, computed for the period beginning on the day that is 30 days after the latest of

1997, c. 10, s. 78(2)

(8) The portion of subsection 296(3.1) of the Act before paragraph (a) is replaced by the following:

Application or payment of rebate

(3.1) If, in assessing the net tax of a person for a particular reporting period of the person or an amount (in this subsection referred to as the “overdue amount”) that became payable by a person under this Part, all or part of an allowable rebate referred to in subsection (2.1) is not applied under that subsection against that net tax or overdue amount, except where the assessment is made in the circumstances described in paragraph 298(4)(a) or (b) after the time otherwise limited for the assessment by paragraph 298(1)(a), the Minister shall

1997, c. 10, s. 78(2)

(9) The portion of subparagraph 296(3.1)(b)(i) of the Act before clause (A) is replaced by the following:

(i) all or part of the allowable rebate that was not applied under subsection (2.1) or paragraph (a) together with interest at the prescribed rate on all or that part of the allowable rebate, computed for the period beginning on the day that is 30 days after the later of

1997, c. 10, s. 78(2)

(10) The portion of paragraph 296(3.1)(c) of the Act before subparagraph (i) is replaced by the following:

(c) refund to the person that part of the allowable rebate that was not applied under any of subsection (2.1) and paragraphs (a) and (b) together with interest at the prescribed rate on that part of the allowable rebate, computed for the period beginning on the day that is 30 days after the later of

1997, c. 10, s. 78(2)

(11) Paragraph 296(4)(b) of the Act is replaced by the following:

(b) shall not be refunded under paragraph (3)(c) unless the input tax credit or deduction would have been allowed as an input tax credit or deduction, as the case may be, in determining the net tax for another reporting period of the person if the person had claimed the input tax credit or deduction in a return under Division V filed on the day notice of the assessment is sent to the person.

1997, c. 10, s. 78(2)

(12) Paragraph 296(4.1)(b) of the Act is replaced by the following:

(b) shall not be refunded under paragraph (3.1)(c) unless the allowable rebate would have been payable to the person as a rebate if the person had claimed it in an application under this Part filed on the day notice of the assessment is sent to the person, and, where the rebate is in respect of an amount that is being assessed, if the person had paid or remitted that amount.

1990, c. 45, s. 12(1)

(13) Subsection 296(7) of the Act is replaced by the following:

Interest on cancelled amounts

(6.1) Despite subsection (6), if a person has paid an amount of interest or penalty and the Minister cancels that amount under section 281.1, the Minister shall refund the amount to the person, together with interest on the amount 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 that section and ending on the day on which the refund is paid.

Restriction on refunds

(7) An amount under this section shall not be refunded to a person at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister.

(14) Subsections (1) to (5), (8) and (11) to (13) come into force on April 1, 2007.

(15) Subsections (6), (7), (9) and (10) apply to any reporting period of a person that ends on or after April 1, 2007.

1990, c. 45, s. 12(1); 1993, c. 27, s. 130(4)

152. (1) Subsection 297(4) of the Act is replaced by the following:

Interest on rebate

(4) If a rebate under section 215.1 or Division VI (other than section 253) is paid to a person under subsection (3), the Minister shall pay interest at the prescribed rate to the person on the rebate for the period beginning on the day that is 30 days after the day the application in which the rebate is claimed is filed with the Minister and ending on the day the rebate is paid.

1990, c. 45, s. 12(1)

(2) Subsection 297(5) of the Act is repealed.

(3) Subsection (1) applies

(a) to any rebate under section 259, 259.1 or 261.01 of the Act if the claim period for the rebate ends on or after April 1, 2007; and

(b) to any other rebate if the application in which the rebate is claimed is filed with the Minister of National Revenue on or after April 1, 2007.

(4) Subsection (2) applies in respect of interest payable by the Minister of National Revenue under subsection 297(4) of the Act on or after April 1, 2007.

153. (1) The Act is amended by adding the following after section 297:

Minimum amounts owed to Her Majesty

297.1 (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 Part does not exceed two dollars, those amounts are deemed to be nil.

Minimum amounts payable by Minister

(2) If, at any time, the total of all amounts payable by the Minister to a person under this Part does not exceed two dollars, the Minister may 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 in right of Canada, those amounts payable are deemed to be nil.

(2) Subsection (1) comes into force on April 1, 2007.

2000, c. 19, s. 71

154. (1) Paragraph 298(1)(e) of the Act is replaced by the following:

(e) in the case of any penalty payable by the person, other than a penalty under section 280.1, 285 or 285.1, more than four years after the person became liable to pay the penalty;

(2) Subsection (1) applies in respect of any penalty that becomes payable on or after April 1, 2007.

1990, c. 45, s. 12(1)

155. (1) Subsection 313(3) of the Act is replaced by the following:

Interest on judgments

(3) If a judgment is obtained for any tax, net tax, penalty, interest or other amount payable or remittable under this Part, including a certificate registered under section 316, the provisions of this Part by which interest is payable for failure to pay or remit the amount apply, with such modifications as the circumstances require, to failure to pay the judgment debt, and the interest is recoverable in like manner as the judgment debt.

(2) Subsection (1) applies in respect of any judgment obtained for amounts that became payable or remittable to the Receiver General on or after April 1, 2007.

1990, c. 45, s. 12(1)

156. (1) Subsection 315(1) of the Act is replaced by the following:

Assessment before collection

315. (1) The Minister may not take any collection action under sections 316 to 321 in respect of any amount payable or remittable by a person that may be assessed under this Part, other than interest, unless the amount has been assessed.

(2) Subsection (1) comes into force on April 1, 2007.

2000, c. 30, s. 94(3)

157. (1) Subparagraphs 316(11)(b)(i) and (ii) of the Act are replaced by the following:

(i) in the case of interest, interest at the prescribed rate under this Part applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any particular period of time, or

(ii) in the case of a penalty, a penalty under section 280.1 on amounts payable to the Receiver General.

(2) Subsection (1) applies in respect of any certificate made under subsection 316(1) of the Act in respect of amounts that became payable or remittable to the Receiver General on or after April 1, 2007.

2000, c. 14, s. 36

158. (1) Paragraph 322.1(3)(f) of the Act is replaced by the following:

(f) sections 280, 280.1 and 284 apply as if the net tax for the assessed period were not required to be remitted, and the return for that period were not required to be filed, until the last day of the period described in subsection (9).

(2) Subsection (1) comes into force on April 1, 2007.

1990, c. 45, s. 12(1)

159. (1) Subsection 326(3) of the Act is replaced by the following:

Saving

(3) A person who is convicted under this section of failing to comply with a provision of this Part or a regulation made under this Part is not liable to pay a penalty imposed under section 280.1, 283 or 284 for the same failure, unless a notice of assessment for the penalty was issued before the information or complaint giving rise to the conviction was laid or made.

(2) Subsection (1) comes into force on April 1, 2007.

2000, c. 19, s. 72

160. (1) Subsection 327(3) of the Act is replaced by the following:

Penalty on conviction

(3) A person who is convicted of an offence under this section is not liable to pay a penalty imposed under any of sections 280.1 and 283 to 285.1 for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made.

(2) Subsection (1) comes into force on April 1, 2007.