Bill C-24

55 ELIZABETH II

——————

CHAPTER 13

An Act to impose a charge on the export of certain softwood lumber products to the United States and a charge on refunds of certain duty deposits paid to the United States, to authorize certain payments, to amend the Export and Import Permits Act and to amend other Acts as a consequence

[Assented to 14th December, 2006]

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

1. This Act may be cited as the Softwood Lumber Products Export Charge Act, 2006.

INTERPRETATION

2. The following definitions apply in this Act.

“Agency” means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act.

“assessment” means an assessment or a reassessment under this Act.

“bank” means a bank as defined in section 2 of the Bank Act or an authorized foreign bank, as defined in that section, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act.

“board foot” means a unit of measurement of lumber equal to 12 inches × 12 inches × 1 inch, and one thousand board feet is equal to 2.35974 cubic metres or 92.90227 square metres of lumber.

“calendar quarter” means a period of three months beginning on the first day of January, April, July or October.

“Commissioner” means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act.

“data” means representations, in any form, of information or concepts.

“judge”, in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court.

“Minister” means the Minister of National Revenue.

“person” means an individual, partnership, corporation, or a body that is a union or association.

“prescribed” means

(a) in the case of a form or the manner of filing a form, authorized by the Minister;

(b) in the case of the information to be given on or with a form, specified by the Minister; and

(c) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation.

“primary processing” means the production of softwood lumber products from softwood sawlogs.

“record” means any material on which data are recorded or marked and that is capable of being read or understood by a person or a computer system or other device.

“region” has the same meaning as in subsection 6.3(1) of the Export and Import Permits Act.

“reporting period” means the month in respect of which a person is required to file a return under section 26.

“softwood lumber product” means, other than in section 18, a product referred to in section 8.4 of the Export and Import Permits Act.

“United States” means the customs territory of the United States and the foreign trade zones located in the United States.

3. If a conversion of board feet to cubic metres or to square metres is required for the purposes of this Act, the conversion is to be made on a nominal measurement basis and shall not be rounded up to the nearest cubic metre or square metre.

4. (1) For the purposes of every provision of this Act that requires interest to be paid at a specified rate, the specified rate in effect during any particular calendar quarter is the total of

(a) the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the calendar quarter preceding the particular calendar quarter, and

(b) 4 %.

(2) For the purposes of every provision of this Act that requires interest at a specified rate to be paid on an amount payable by the Minister to a person or applied by the Minister against an amount owed by a person, the specified rate in effect during any particular calendar quarter is the total of

(a) the rate determined under paragraph (1)(a) in respect of the particular calendar quarter, and

(b) 2 %.

5. (1) For the purposes of this Act, the time at which an exported softwood lumber product is considered to be exported is the time at which the product was last loaded aboard a conveyance for export.

(2) However, if the softwood lumber product is exported by rail, the time at which it is considered to be exported is the time at which the railcar that contains it was released to the railway for assembly to form part of a train for export.

(3) For greater certainty, if a softwood lumber product is transshipped through a Canadian reload or other inventory location, the time at which it is considered to be exported is the time at which the product last leaves a reload or other inventory location for export.

6. (1) For the purposes of this Act,

(a) related persons are deemed not to deal with each other at arm’s length; and

(b) it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length.

(2) For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that

(a) a reference in those subsections to “corporation” shall be read as a reference to “corporation or partnership”; and

(b) a reference in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as a reference to “rights” or “partners”, respectively.

7. For the purposes of this Act, a person is deemed to be resident in Canada at any time

(a) in the case of a corporation, if the corporation is incorporated or continued in Canada and not continued elsewhere;

(b) in the case of a partnership or an association, or a branch of one of them, if the member, or a majority of the members, having management and control of it is or are resident in Canada at that time;

(c) in the case of a union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; and

(d) in the case of an individual, if the individual is deemed under any of paragraphs 250(1)(b) to (f) of the Income Tax Act to be resident in Canada at that time.

HER MAJESTY

8. This Act is binding on Her Majesty in right of Canada or a province.

APPLICATION

9. (1) This Act does not apply to a softwood lumber product that is exported to a country other than the United States but that passes in transit through the United States.

(2) For greater certainty, this Act applies in respect of a softwood lumber product that is exported to the United States but that passes in transit through a country other than the United States.

SOFTWOOD LUMBER PRODUCTS EXPORT CHARGE

Export Charge

10. (1) Subject to the exclusions provided for in subsection 11(1), every person who exports a softwood lumber product to the United States after October 11, 2006, shall pay to Her Majesty in right of Canada a charge as determined under this Act in respect of the export.

(2) The charge becomes payable at the time that the softwood lumber product is exported.

11. (1) The following exports of softwood lumber products are excluded from the charge referred to in section 10:

(a) exports from Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador;

(b) exports from Yukon, the Northwest Territories or Nunavut; and

(c) exports by a person referred to in section 16.

(2) An exported softwood lumber product is deemed to be exported from Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador if the product underwent its first primary processing in one of those provinces from softwood sawlogs originating in one of those provinces or in the State of Maine.

(3) An exported softwood lumber product is deemed to be exported from Yukon, the Northwest Territories or Nunavut if the product underwent its first primary processing in one of those territories from softwood sawlogs originating in one of those territories.

12. (1) If a softwood lumber product is exported from a region in a particular month, the amount of the charge in respect of that export is the amount calculated by applying the rate applicable for the month under subsection (3) or (4) to the export price of the product as determined under section 13.

(2) An exported softwood lumber product is deemed to be exported from the region where the product underwent its first primary processing. If, however, the exported product underwent its first primary processing in Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Yukon, the Northwest Territories or Nunavut from softwood sawlogs originating in a particular region, it is deemed to be exported from that region.

(3) In the case of an export for which an export allocation issued under paragraph 6.3(3)(b) of the Export and Import Permits Act is required, the applicable rate of charge for the particular month is

(a) 0% if the reference price for the month is more than US$355;

(b) 2.5% if the reference price for the month is at least US$336 but not more than US$355;

(c) 3% if the reference price for the month is at least US$316 but not more than US$335; or

(d) 5% if the reference price for the month is not more than US$315.

(4) In the case of an export for which an export allocation referred to in subsection (3) is not required, the applicable rate of charge for the particular month is

(a) 0% if the reference price for the month is more than US$355;

(b) 5% if the reference price for the month is at least US$336 but not more than US$355;

(c) 10% if the reference price for the month is at least US$316 but not more than US$335; or

(d) 15% if the reference price for the month is not more than US$315.

(5) The reference price for a particular month is the most recent four-week average of the weekly Framing Lumber Composite Price, published by Random Lengths Publications Incorporated, that is available at least 21 days before the start of the particular month.

(6) If Random Lengths Publications Incorporated changes, at any time after April 27, 2006, the weights it uses to calculate the Framing Lumber Composite Price or ceases to publish the Framing Lumber Composite Price or any of its constituent prices, the reference price for a particular month is to be calculated according to a prescribed formula.

(7) Each reference price shall be rounded to the nearest multiple of one dollar or, if the amount is equidistant from two multiples of one dollar, to the higher multiple.

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

“FOB value” means a value consisting of all costs payable by a purchaser, including those incurred in the placement aboard the conveyance for shipment, but not including the actual shipping costs and the amount of a charge payable under section 10.

“independent remanufacturer” means a person who is certified under section 25.

“remanufactured” means, in relation to a softwood lumber product, that the softwood lumber product, in order to produce a semi-finished or finished softwood lumber product, has been subjected to changes including changes in thickness, width, length, profile, texture, moisture or grading, has been joined together by finger jointing or has been turned.

(2) The export price of a softwood lumber product is to be determined in accordance with the following rules:

(a) if the product has undergone only primary processing, the export price is the FOB value that is determined at the facility where the product underwent its last primary processing before export;

(b) if the product was last remanufactured before export by an independent remanufacturer, the export price is the FOB value that is determined at the facility where the softwood lumber used to make the remanufactured product underwent its last primary processing before export;

(c) if the product was last remanufactured before export by a remanufacturer that is not an independent remanufacturer, the export price is the FOB value that is determined at the facility where the product underwent its last processing before export;

(d) for a product described in paragraph (a), (b) or (c) in respect of which an FOB value cannot be determined, the export price is the market price for identical products sold in Canada at approximately the same time and in one of the following arm’s length transactions, listed in order of precedence:

(i) a transaction at substantially the same trade level but in different quantities,

(ii) a transaction at a different trade level but in similar quantities, or

(iii) a transaction at a different trade level and in different quantities; and

(e) if the export price determined in accord-ance with any of paragraphs (a) to (d) is greater than US$500 per thousand board feet, the export price is deemed to be US$500 per thousand board feet.

(3) For the purposes of subsection (2), the rate of exchange in order to determine the export price in Canadian dollars of a softwood lumber product is the rate of exchange as quoted by the Bank of Canada at noon on the day before the day on which the charge referred to in section 10 becomes payable.

14. (1) The amount of the charge applicable to an export of a softwood lumber product from a region during a month is increased by 50% if

(a) the export is one that does not require an export allocation under paragraph 6.3(3)(b) of the Export and Import Permits Act; and

(b) the exports of softwood lumber from the region during that month exceed the monthly trigger volume applicable to that region.

(2) Exports from a region for a month are considered to have exceeded the monthly trigger volume if the volume of exports from that region for that month exceed 101% of the monthly trigger volume for that region for that month.

(3) The monthly trigger volume applicable to a region, other than the BC Coast as defined in subsection 6.3(1) of the Export and Import Permits Act, is the amount determined by the formula

[A x (B/100) x 1.1] - C

where

A      is the expected monthly American consumption of softwood lumber products, as calculated in accordance with the prescribed formula;

B      is

(a) in respect of Ontario, 3.15,

(b) in respect of Quebec, 4.39,

(c) in respect of Manitoba, 0.29,

(d) in respect of Saskatchewan, 0.42,

(e) in respect of Alberta, 2.49, and

(f) in respect of the BC Interior, as defined in subsection 6.3(1) of the Export and Import Permits Act, 17.43; and

C      is the amount by which the exports from the region of softwood lumber products during the previous month exceeded the trigger volume for the region for the previous month, if those exports exceeded the trigger volume for the previous month by 1% or less of that trigger volume.

(4) The monthly trigger volume applicable to the BC Coast as defined in subsection 6.3(1) of the Export and Import Permits Act is the amount determined by the formula

(A x 0.0186 x 1.1 x B) - C

where

A      is the expected monthly American consumption of softwood lumber products, as calculated in accordance with the prescribed formula;

B      is

(a) in respect of January, the quotient obtained by dividing 0.7212 by 0.9288,

(b) in respect of February, the quotient obtained by dividing 0.9767 by 0.8944,

(c) in respect of March, the quotient obtained by dividing 0.9025 by 1.0014,

(d) in respect of April, the quotient obtained by dividing 1.3557 by 1.0707,

(e) in respect of May, the quotient obtained by dividing 1.1461 by 1.0679,

(f) in respect of June, the quotient obtained by dividing 1.1771 by 1.0405,

(g) in respect of July, the quotient obtained by dividing 0.9213 by 1.0508,

(h) in respect of August, the quotient obtained by dividing 1.0719 by 1.0501,

(i) in respect of September, the quotient obtained by dividing 1.0584 by 0.9953,

(j) in respect of October, the quotient obtained by dividing 0.9477 by 1.0636,

(k) in respect of November, the quotient obtained by dividing 0.8466 by 0.9435, and

(l) in respect of December, the quotient obtained by dividing 0.8746 by 0.8930; and

C      is the amount by which the exports from the region of softwood lumber products during the previous month exceeded the trigger volume for the region for the previous month, if those exports exceeded the trigger volume for the previous month by 1% or less of that trigger volume.

15. (1) If, during a particular calendar quarter, total exports of softwood lumber products from Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador, as provided in subsection 11(2), exceed the aggregate sum of total production in that calendar quarter and total inventory at the beginning of that calendar quarter, of softwood lumber products that underwent their first primary processing in one of those provinces from softwood sawlogs originating in one of those provinces or in the State of Maine, each person responsible for excess exports as determined under subsection (2) shall pay to Her Majesty in right of Canada a charge calculated by applying $200 per thousand board feet of exported lumber products to that person’s excess exports.

(1.1) The charge becomes payable at the time that the softwood lumber product is exported.

(2) A person’s excess exports shall equal the amount by which its exports exceed in a particular calendar quarter the sum of the person’s total production in that calendar quarter and total inventory at the beginning of that calendar quarter of softwood products that underwent their first primary processing in New Brunswick, Nova Scotia, Prince Edward Island or Newfoundland and Labrador from softwood sawlogs originating in one of those provinces or in the State of Maine.

Exemptions

16. (1) Despite section 10, a person whose name is set out in the schedule is exempt from the charge referred to in that section in respect of the export of softwood lumber products that the person produces if the person satisfies the prescribed conditions.

(2) The Governor in Council may, by regulation, amend the schedule by adding, deleting or changing the name of a person.

17. (1) The Governor in Council may, on the recommendation of the Minister for International Trade, by regulation, conditionally or unconditionally, exempt from the charge referred to in section 10 the export of softwood lumber products from a region.

(2) The Governor in Council may, on the recommendation of the Minister for International Trade, by regulation, conditionally or unconditionally, exempt any softwood lumber product from the charges referred to in sections 10 and 15.

(3) Any person exempted from registering under subsection 22(2) is exempted from the charges referred to in sections 10 and 15.

CHARGE ON REFUNDS OF DUTY DEPOSITS

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

“covered entry” means an entry that, on October 12, 2006, has not been liquidated and in respect of which a duty deposit has been made.

“duty deposit” means an amount deposited under a United States duty order.

“duty deposit refund” of a specified person means the refund of a duty deposit and all interest on that deposit accrued under United States law up to the earlier of

(a) the day on which the refund is issued to the specified person or a designate of the specified person, and

(b) the day on which the specified person sells the rights to the refund to Her Majesty in right of Canada.

“revocation” means a revocation of a United States duty order including any direction to end any suspension of liquidation of a covered entry or to refund any duty deposit.

“specified person” means a person that filed the documents and information required under the applicable United States law in respect of the importation of any softwood lumber product into the United States during the period beginning on May 22, 2002 and ending on October 11, 2006.

“specified rate” means the rate determined by the formula

A/B

where

A      is US$1,000,000,000; and

B      is the total, expressed in United States dollars, of all duty deposits and all interest accrued on them under United States law as of October 12, 2006.

“United States duty order” means

(a) the Notice of Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order: Certain Softwood Lumber Products from Canada, 67 Fed. Reg. 36,068 (May 22, 2002), as amended; or

(b) the Notice of Amended Final Affirmative Countervailing Duty Determination and Notice of Countervailing Duty Order: Certain Softwood Lumber Products from Canada, 67 Fed. Reg. 36,070 (May 22, 2002), as amended.

(2) The specified rate shall be expressed as a decimal fraction rounded off to four digits after the decimal point, but if the fifth digit is five or greater, the fourth digit is increased by one.

(3) Every specified person in respect of whom a covered entry is to be liquidated as a result of a revocation shall pay to Her Majesty in Right of Canada a charge at the specified rate on the amount of any duty deposit refund that relates to the covered entry.

(4) The charge under subsection (3) is payable by the specified person even if the refund is issued to a designate of the specified person.

(5) The charge under subsection (3) becomes payable by the specified person on the later of

(a) the day on which this Act is assented to, and

(b) the day that is the earlier of

(i) the day on which the duty deposit refund is issued to the specified person or a designate of the specified person, and

(ii) the day on which the specified person sells the rights to the duty deposit refund to Her Majesty in right of Canada.

(6) If, at any time after September 18, 2006, a specified person sells or otherwise disposes of the rights to a duty deposit refund to a person other than Her Majesty in right of Canada, the specified person and the other person are jointly and severally, or solidarily, liable to pay the charge under subsection (3) and any penalties and interest payable under this Act in relation to that charge.

GENERAL PROVISIONS CONCERNING CHARGES AND OTHER AMOUNTS PAYABLE

Administration, Enforcement and Officers

19. The Minister shall administer and enforce this Act and the Commissioner may exercise the powers and perform the duties of the Minister under this Act.

20. (1) The persons that are necessary to administer and enforce this Act are to be appointed, employed or engaged in the manner authorized by law.

(2) The Minister may authorize any person employed or engaged by the Agency or who occupies a position of responsibility in the Agency to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial power or duty of the Minister, under this Act.

21. Any person, if designated by the Minister for the purpose, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act, and every person so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.

Registration and Certification

22. (1) Every person who exports a softwood lumber product to the United States is required to be registered for the purposes of this Act.

(2) On the recommendation of the Minister for International Trade, the Governor in Council may, by regulation, exempt persons or classes of persons from the requirement to register.

(3) A person required to be registered shall apply to the Minister for registration on or before the day on which the softwood lumber product is exported.

(4) An application for registration must be made in the prescribed form containing the prescribed information and must be filed with the Minister in the prescribed manner.

(5) An applicant who is not resident in Canada or who does not have a permanent establishment in Canada shall give and maintain security, in an amount and in a form satisfactory to the Minister, for the purposes of securing all amounts payable by the person under this Act.

(6) For the purposes of subsection (5), “permanent establishment” in respect of an applicant means a fixed place of business of the applicant, including a place of management, a branch, an office, a factory or a workshop or any timberland.

23. The Minister may register any person applying for registration and, if the Minister does so, shall notify the person of the effective date of the registration.

24. (1) The Minister may cancel the registration of a person registered under section 23 if the Minister is satisfied that the registration is not required for the purposes of this Act or the person has failed to maintain security in accordance with subsection 22(5).

(2) If the Minister cancels the registration of a person, the Minister shall notify the person in writing of the cancellation and the effective date of the cancellation.

25. (1) The Minister may, on application in prescribed form containing prescribed information and filed in the prescribed manner, certify a person registered under section 23 to be an independent remanufacturer.

(2) The Minister may amend, suspend, renew, cancel or reinstate a certification as required for the purposes of this Act.

(3) If the Minister cancels the certification of a person, the Minister shall notify the person in writing of the cancellation and of its effective date.

(4) The Minister shall establish and maintain a publicly accessible registry containing the following information with respect to each certification:

(a) the name of the person that is certified;

(b) the date of the certification;

(c) any amendment made to the certification and the date of the amendment; and

(d) the date of any suspension, renewal, cancellation or reinstatement of the certification.

Returns and Payment of Charges

26. A person who is, at any time during a particular month, registered under section 23 or required to be registered under section 22 — or a specified person as defined in subsection 18(1) by whom a charge under section 18 becomes payable at any time during a particular month — shall, on or before the last day of the month following the particular month,

(a) file with the Minister a return for that month in the prescribed form and manner and containing the prescribed information;

(b) calculate in the return the total amount of the charges payable for that month; and

(c) pay that amount, if any, to the Receiver General.

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

(a) a bank;

(b) a credit union;

(c) a corporation authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

(d) a corporation authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in mortgages on real property or hypothecs on immovables.

28. (1) If, at any time, the total of all unpaid amounts owing by a person to Her Majesty in right of Canada under this Act does not exceed two dollars, the amount owing by the person is deemed to be nil.

(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.

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

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

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

(a) the branch or division can be separately identified by reference to its location or the nature of the activities engaged in by it; and

(b) separate records, books of account and accounting systems are maintained in respect of the branch or division.

(3) The Minister may revoke an authorization if

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

(b) the person fails to comply with any condition of the authorization or with any provision of this Act;

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

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

(4) If the Minister revokes the authorization of a person, the Minister shall notify the person in writing of the revocation and the effective date of the revocation.

31. A return or other document made under this Act by a person that is not an individual shall be signed on behalf of the person by an individual duly authorized to do so by the person or the governing body of the person. If the person is a corporation or an association that has duly elected or appointed officers, the president, vice-president, secretary and treasurer, or other equivalent officers, of the corporation or association, are deemed to be so duly authorized.

32. (1) The Minister may at any time extend, in writing, the time for filing a return or providing information under this Act.

(2) If the Minister extends the time within which a person is required to 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 34 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 64 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.

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

Interest

34. (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 specified rate and computed for the period beginning on the first day after the day on or before which the amount was required to be paid and ending on the day on which the amount is paid.

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

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

(4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and a penalty payable under section 64, owing at that time to Her Majesty in right of Canada under this Act for a reporting period and the total amount of interest and penalty payable by the person under this Act for that reporting period is not more than $25, the Minister may cancel the interest and penalty.

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

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

37. (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period, or on application by a person on or before that day, waive or cancel any amount otherwise payable to the Receiver General under this Act that is interest or a penalty payable under section 64 on an amount that is required to be paid by the person under this Act in respect of that reporting period.

(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.

Administrative Charge under the Financial Administration Act

38. 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.

Refunds

39. Except as specifically provided under this Act or the Financial Administration Act, no person has a right to recover any money paid to Her Majesty in right of Canada as or on account of, or that has been taken into account by Her Majesty in right of Canada as, an amount payable under this Act.

40. (1) The Minister shall pay to a person who has paid the charge referred to in section 10 in respect of the export of softwood lumber products from a region during two consecutive calendar quarters a refund of the amount calculated under subsection (2) or (3) if all of the following occur in each of two consecutive calendar quarters when compared respectively with each of the same two consecutive calendar quarters from the preceding year:

(a) the share of American consumption of softwood lumber products from imports not originating in Canada, as calculated in accordance with the prescribed formula, is at least 20% greater;

(b) the Canadian market share of American consumption of softwood lumber products, as calculated in accordance with the prescribed formula, has decreased; and

(c) the American market share of American consumption of softwood lumber products, as calculated in accordance with the prescribed formula, has increased.

(2) If the amount of the charge was calculated using the applicable rate under subsection 12(3), the amount of the refund is the amount of the charge paid.

(3) If the amount of the charge was calculated using the applicable rate under subsection 12(4), the amount of the refund is, subject to subsection (4), the lesser of

(a) the amount of the charge paid, and

(b) 5% of the export price of the softwood lumber product exported as determined in accordance with section 13.

(4) If exports from a region for a month exceeded (within the meaning of subsection 14(2)) the monthly trigger volume during any month of the two consecutive calendar quarters, the amount of the refund is nil.

(5) A refund in respect of an amount shall not be paid under subsection (1) to a person unless the person files, in the prescribed manner, an application for the refund in the prescribed form and containing prescribed information within two years after the day on which the amount was paid by the person.

(6) Subject to subsection (7), not more than one application for a refund under this section may be made by a person in any calendar quarter.

(7) If a person who is entitled to a refund under this section is engaged in one or more activities in separate branches or divisions and is authorized under subsection 30(2) to file separate returns in relation to a branch or division, the person may file separate applications under this section in respect of the branch or division but not more than one application for a refund under this section in respect of the branch or division may be made by the person in any calendar quarter.

41. (1) If a person has paid an amount as or on account of, or that was taken into account as, a charge, a penalty, interest or other obligation under this Act in circumstances where the amount was not payable by the person, whether the amount was paid by mistake or otherwise, the Minister shall, subject to subsections (2) and (3), pay a refund of that amount to the person.

(2) A refund in respect of an amount shall not be paid under subsection (1) to a person to the extent that the Minister has assessed the person for the amount under section 50.

(3) A refund in respect of an amount shall not be paid under subsection (1) to a person unless the person files, in the prescribed manner, an application for the refund in prescribed form and containing prescribed information within two years after the day on which the amount was paid by the person.

(4) Subject to subsection (5), not more than one application for a refund under this section may be made by a person in any reporting period.

(5) If a person who is entitled to a refund under this section is engaged in one or more activities in separate branches or divisions and is authorized under subsection 30(2) to file separate returns in relation to a branch or division, the person may file separate applications under this section in respect of the branch or division but not more than one application for a refund under this section in respect of the branch or division may be made by the person in any reporting period.

42. (1) A refund of an amount under this Act shall not be paid to a person to the extent that it can reasonably be regarded that

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

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

(c) the amount has been or will be refunded to the person under this Act.

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

43. If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a refund under this Act that the bankrupt was entitled to claim before the appointment shall not be paid after the appointment unless all returns required under this Act to be filed before the appointment have been filed and all amounts required under this Act to be paid by the bankrupt have been paid.

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

(2) For the purpose of subsection (1), if a refund or other payment has been paid to a person in excess of the amount to which the person was entitled and the amount of the excess has, by reason of section 42, reduced the amount of any other refund or other payment to which the person would, but for the payment of the excess, be entitled, the person is deemed to have paid the amount of the reduction to the Receiver General.

Bankruptcies and Corporate Reorganizations

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

“bankrupt” has the same meaning as in section 2 of the Bankruptcy and Insolvency Act.

“business” includes a part of a business.

“receiver” means a person who

(a) under the authority of a debenture, bond or other debt security, of a court order or of an Act of Parliament or of the legislature of a province, is empowered to manage or operate a business or a property of another person;

(b) is appointed by a trustee under a trust deed in respect of a debt security to exercise the authority of the trustee to manage or operate a business or a property of the debtor under the debt security;

(c) is appointed by a bank to act as an agent or mandatary of the bank in the exercise of the authority of the bank under subsection 426(3) of the Bank Act in respect of property of another person;

(d) is appointed as a liquidator to liquidate the assets of a corporation or to wind up the affairs of a corporation; or

(e) is appointed as a committee, guardian, curator, tutor or mandatary in case of incapacity with the authority to manage and care for the affairs and assets of an individual who is incapable of managing those affairs and assets.

It includes a person who is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to manage or operate a business or a property of another person, but, if a person is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to manage or operate a business or a property of another person, it does not include that creditor.

“relevant assets” of a receiver means

(a) if the receiver’s authority relates to all the properties, businesses, affairs and assets of a person, all those properties, businesses, affairs and assets; and

(b) if the receiver’s authority relates to only part of the properties, businesses, affairs or assets of a person, that part of the properties, businesses, affairs or assets.

“representative” means a person, other than a trustee in bankruptcy or a receiver, who is administering, winding up, controlling or otherwise dealing with any property, business, estate or succession.

(2) For the purposes of this Act, if on a particular day a person becomes a bankrupt,

(a) the trustee in bankruptcy, and not the person, is liable for the payment of any amount (other than an amount that relates solely to activities in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate) that becomes payable by the person under this Act during the period beginning on the day immediately after the day on which the trustee became the trustee in bankruptcy of the person and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act, except that

(i) the trustee is liable for the payment of any amount that became payable by the person after the particular day in respect of reporting periods that ended on or before the particular day, or of any amount that became payable by the person after the particular day, only to the extent of the property of the person in possession of the trustee available to satisfy the liability,

(ii) the trustee is not liable for the payment of any amount for which a receiver is liable under subsection (3), and

(iii) the payment by the person of an amount in respect of the liability shall discharge the liability of the trustee to the extent of that amount;

(b) if, on the particular day the person is registered under section 23, the registration continues in relation to the activities of the person to which the bankruptcy relates as though the trustee in bankruptcy were the registered person in respect of those activities and ceases to apply to the activities of the person in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate;

(c) the reporting period of the person begins and ends on the day on which it would have begun and ended if the bankruptcy had not occurred, except that

(i) the reporting period of the person during which the person becomes a bankrupt shall end on the particular day and a new reporting period of the person in relation to the activities of the person to which the bankruptcy relates shall begin on the day immediately after the particular day, and

(ii) the reporting period of the person, in relation to the activities of the person to which the bankruptcy relates, during which the trustee in bankruptcy is discharged under the Bankruptcy and Insolvency Act shall end on the day on which the discharge is granted;

(d) subject to paragraph (f), the trustee in bankruptcy shall file with the Minister in the prescribed form and manner all returns in respect of the activities of the person to which the bankruptcy relates for the reporting periods of the person ending in the period beginning on the day immediately after the particular day and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act and that are required under this Act to be filed by the person, as if those activities were the only activities of the person;

(e) subject to paragraph (f), if the person has not on or before the particular day filed a return required under this Act to be filed by the person for a reporting period of the person ending on or before the particular day, the trustee in bankruptcy shall, unless the Minister waives in writing the requirement for the trustee to file the return, file with the Minister in the prescribed form and manner a return for that reporting period of the person; and

(f) if there is a receiver with authority in respect of any business, property, affairs or assets of the person, the trustee in bankruptcy is not required to include in any return any information that the receiver is required under subsection (3) to include in a return.

(3) For the purposes of this Act, if on a particular day a receiver is vested with authority to manage, operate, liquidate or wind up any business or property, or to manage and care for the affairs and assets, of a person,

(a) if the relevant assets of the receiver are a part and not all of the person’s businesses, properties, affairs or assets, the relevant assets of the receiver are deemed to be, throughout the period during which the receiver is acting as receiver of the person, separate from the remainder of the businesses, properties, affairs or assets of the person as though the relevant assets were businesses, properties, affairs or assets, as the case may be, of a separate person;

(b) the person and the receiver are jointly and severally or solidarily liable for the payment of any amount that becomes payable by the person under this Act before or during the period during which the receiver is acting as receiver of the person to the extent that the amount can reasonably be considered to relate to the relevant assets of the receiver or to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person at the time the amount became payable, except that

(i) the receiver is liable for the payment of any amount that became payable before that period only to the extent of the property of the person in possession or under the control and management of the receiver after

(A) satisfying the claims of creditors whose claims ranked, on the particular day, in priority to the claim of the Crown in respect of the amount, and

(B) paying any amounts that the receiv-er is required to pay to a trustee in bankruptcy of the person,

(ii) the person is not liable for the payment of any amount payable by the receiver, and

(iii) the payment by the person or the receiver of an amount in respect of the liability shall discharge the joint and several or solidary liability to the extent of that amount;

(c) the reporting period of the person begins and ends on the day on which it would have begun and ended if the vesting had not occurred, except that

(i) the reporting period of the person, in relation to the relevant assets of the receiver, during which the receiver begins to act as receiver of the person, shall end on the particular day and a new reporting period of the person in relation to the relevant assets shall begin on the day immediately after the particular day, and

(ii) the reporting period of the person, in relation to the relevant assets, during which the receiver ceases to act as receiver of the person, shall end on the day on which the receiver ceases to act as receiver of the person;

(d) the receiver shall file with the Minister in the prescribed form and manner all returns in respect of the relevant assets of the receiver for reporting periods of the person ending in the period during which the receiver is acting as receiver and that are required under this Act to be made by the person, as if the relevant assets were the only businesses, properties, affairs and assets of the person; and

(e) if the person has not on or before the particular day filed a return required under this Act to be filed by the person for a reporting period of the person ending on or before the particular day, the receiver shall, unless the Minister waives in writing the requirement for the receiver to file the return, file with the Minister in the prescribed form and manner a return for that reporting period that relates to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person during that reporting period.

(4) Every receiver and representative who controls property of another person who is required to pay any amount under this Act shall, before distributing the property to any person, obtain a certificate from the Minister certifying that the following amounts have been paid or that security for the payment of them has, in accordance with this Act, been accepted by the Minister:

(a) all amounts that are payable by the other person under this Act in respect of the reporting period during which the distribution is made, or any previous reporting period; and

(b) all amounts that are, or can reasonably be expected to become, payable under this Act by the representative or receiver in that capacity in respect of the reporting period during which the distribution is made, or any previous reporting period.

(5) Any receiver or representative who distributes property without obtaining a certificate in respect of the amounts referred to in subsection (4) is personally liable for the payment of those amounts to the extent of the value of the property so distributed.

46. If two or more corporations (each of which is referred to in this section as a “predecessor”) are merged or amalgamated to form one corporation (in this section referred to as the “new corporation”), the new corporation is deemed to be a separate person from each of the predecessors for the purposes of this Act except that, for the purposes of sections 26 to 45 and 48 to 98, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor.

Partnerships

47. (1) For the purposes of this Act, anything done by a person as a member of a partnership is deemed to have been done by the partnership in the course of the partnership’s activities and not to have been done by the person.

(2) A partnership and each member or former member (each of which is referred to in this subsection as the “member”) of the partnership, other than a member who is a limited partner and is not a general partner, are jointly and severally or solidarily liable for

(a) the payment of all amounts that become payable by the partnership under this Act before or during the period during which the member is a member of the partnership or, if the member was a member of the partnership at the time the partnership was dissolved, after the dissolution of the partnership, except that

(i) the member is liable for the payment of amounts that become payable before the period only to the extent of the property and money that is regarded as property or money of the partnership under the relevant laws of general application in force in a province relating to partnerships, and

(ii) the payment by the partnership or by any member of the partnership of an amount in respect of the liability discharges the joint liability to the extent of that amount; and

(b) all other obligations under this Act that arose before or during that period for which the partnership is liable or, if the member was a member of the partnership at the time the partnership was dissolved, the obligations that arose upon or as a consequence of the dissolution.

(3) If a partnership would, but for this subsection, be regarded as having ceased to exist, the partnership is deemed for the purposes of this Act not to have ceased to exist until the registration of the partnership is cancelled.

(4) Where

(a) a partnership (in this subsection referred to as the “predecessor partnership”) would, but for this section, be regarded as having ceased at any time to exist,

(b) a majority of the members of the predecessor partnership that together had, at or immediately before that time, more than a 50% interest in the capital of the predecessor partnership become members of another partnership of which they comprise more than half of the members, and

(c) the members of the predecessor partnership who become members of the other partnership transfer to the other partnership all or substantially all of the property distributed to them in settlement of their capital interests in the predecessor partnership,

the other partnership is deemed to be a continuation of and the same person as the predecessor partnership, except where the other partnership is registered under section 23 or applies for registration under section 22.

Records and Information

48. (1) Every person who is required to pay an amount under this Act shall keep all records that are necessary to determine whether they have complied with this Act.

(2) The Minister may specify in writing the form that a record is to take and any information that the record must contain.

(3) Unless otherwise authorized by the Minister, the records shall be kept in Canada, in English or French.

(4) Every person required under this Act to keep a record who does so electronically shall ensure that all equipment and software necessary to make the record intelligible are available during the retention period required for the record.

(5) If a person fails to keep adequate records for the purposes of this Act, the Minister may, in writing, require the person to keep any records that the Minister may specify, and the person shall keep the records specified by the Minister.

(6) Every person who is required to keep records shall retain them until the expiry of six years after the end of the year to which they relate or for any other period that may be prescribed.

(7) If a person who is required under this Act to keep records serves a notice of objection or is a party to an appeal or reference under this Act, the person shall retain every record that pertains to the subject-matter of the objection, appeal or reference until the objection, appeal or reference is finally disposed of.

(8) If the Minister is of the opinion that it is necessary for the administration or enforcement of this Act, the Minister may, by a demand served personally or sent by mail, require any person required under this Act to keep records to retain those records for any period that is specified in the demand, and the person shall comply with the demand.

(9) A person who is required under this Act to keep records may dispose of them before the expiry of the period during which they are required to be kept if written permission for their disposal is given by the Minister.

49. (1) Despite any other provision of this Act but subject to subsection (2), the Minister may, for any purpose related to the administration or enforcement of this Act, including the collection of any amount payable under this Act by any person, by notice served personally or sent by mail, require that any person provide the Minister, within any reasonable time that is stipulated in the notice, with

(a) any information or additional information, including a return under this Act; or

(b) any record.

(2) The Minister shall not impose on any person (in this section referred to as a “third party”) a requirement under subsection (1) to provide information or any record relating to one or more unnamed persons unless the Minister first obtains the authorization of a judge under subsection (3).

(3) On ex parte application by the Minister, a judge may, subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (1) relating to an unnamed person or more than one unnamed person (in this section referred to as the “group”) if the judge is satisfied by information on oath that

(a) the person or group is ascertainable; and

(b) the requirement is made to verify compliance by the person or persons in the group with any duty or obligation under this Act.

(4) An authorization granted under subsection (3) shall be attached to the notice referred to in subsection (1).

(5) If an authorization is granted under subsection (3), a third party on whom a notice is served or to whom a notice is sent under subsection (1) may, within 15 days after the service or sending, apply to the judge who granted the authorization or, if that judge is unable to act, to another judge of the same court for a review of the authorization.

(6) On hearing an application under subsection (5), a judge may

(a) cancel the authorization previously granted if the judge is not then satisfied that the conditions in paragraphs (3)(a) and (b) have been met; or

(b) confirm or vary the authorization if the judge is satisfied that those conditions have been met.

Assessments

50. (1) The Minister may assess a person for any charge or other amount payable by the person under this Act and may, despite any previous assessment covering, in whole or in part, the same matter, vary the assessment, reassess the person assessed or make any additional assessments that the circumstances require.

(2) The liability of a person to pay an amount under this Act is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

(3) The Minister is not bound by any return, application or information provided by or on behalf of any person and may make an assessment despite any return, application or information provided or not provided.

(4) If a person has paid an amount assessed under this section in respect of a reporting period and the amount paid exceeds the amount determined on reassessment to have been payable by the person in respect of that reporting period, the Minister shall refund to the person the amount of the excess and, for the purpose of section 35, the refund is deemed to have been required to be paid on the day on which the amount was paid to the Minister.

(5) In making an assessment, the Minister may take into account any refund payable to the person being assessed under this Act. If the Minister does so, the person is deemed to have applied for the refund under this Act on the day on which the notice of assessment is sent.

51. (1) On receipt of an application made by a person for a refund under this Act, the Minister shall, without delay, consider the application and assess the amount of the refund, if any, payable to the person.

(2) The Minister may reassess or make an additional assessment of the amount of a refund despite any previous assessment of the amount of the refund.

(3) If, on assessment under this section, the Minister determines that a refund is payable to a person, the Minister shall pay the refund to the person.

(4) A refund shall not be paid 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 this Act.

(5) If a refund is paid to a person, the Minister shall pay interest at the specified rate to the person on the refund for the period beginning on the day that is 30 days after the day on which the application for the refund is filed with the Minister and ending on the day on which the refund is paid.

52. (1) After making an assessment under this Act, the Minister shall send to the person assessed a notice of the assessment.

(2) If the Minister has assessed a person for an amount, any portion of that amount remaining unpaid is payable to the Receiver General as of the date of the notice of assessment.

53. (1) Subject to subsections (2) to (4), no assessment in respect of any charge or other amount payable by a person under this Act shall be made more than four years after the day on which the person filed the person’s return under section 26.

(2) A variation of an assessment, or a reassessment, in respect of any charge or other amount payable under this Act by a person may be made at any time if the variation or reassessment is made

(a) to give effect to a decision on an objection or appeal; or

(b) with the written consent of an appellant to dispose of an appeal.

(3) An assessment in respect of any matter may be made at any time if the person to be assessed has, in respect of that matter,

(a) made a misrepresentation that is attribut-able to their neglect, carelessness or wilful default; or

(b) committed fraud with respect to a return or an application for a refund filed under this Act.

(4) An assessment in respect of any matter specified in a waiver filed under subsection (5) may be made at any time within the period specified in the waiver unless the waiver has been revoked under subsection (6), in which case an assessment may be made at any time during the six months that the waiver remains in effect.

(5) Any person may, within the time otherwise limited by subsection (1) for an assessment, waive the application of that subsection by filing with the Minister a waiver in the prescribed form specifying the period for which, and the matter in respect of which, the person waives the application of that subsection.

(6) Any person who has filed a waiver may revoke it by filing with the Minister a notice of revocation of the waiver in the prescribed form and manner. The waiver remains in effect for six months after the notice is filed.

Objections to Assessment

54. (1) Any person who has been assessed and who objects to the assessment may, within 90 days after the date of the notice of the assessment, file with the Minister a notice of objection in the prescribed form and manner setting out the reasons for the objection and all relevant facts.

(2) A notice of objection shall

(a) reasonably describe each issue to be decided;

(b) specify in respect of each issue the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and

(c) provide the facts and reasons relied on by the person in respect of each issue.

(3) Despite subsection (2), if a notice of objection does not include the information required under paragraph (2)(b) or (c) in respect of an issue to be decided that is described in the notice, the Minister may, in writing, request the person to provide the information, and that paragraph is deemed to be complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister.

(4) Despite subsection (1), if a person has filed a notice of objection to an assessment (in this section referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (8) as a result of the notice of objection, unless the earlier assessment was made in accordance with an order of a court vacating, varying or restoring an assessment or referring an assessment back to the Minister for reconsideration and reassessment, the person may object to the particular assessment in respect of an issue

(a) only if the person complied with subsection (2) in the notice with respect to that issue; and

(b) only with respect to the relief sought in respect of that issue as specified by the person in the notice.

(5) Subsection (4) does not limit the right of the person to object to the particular assessment in respect of an issue that was part of the particular assessment and not part of the earlier assessment.

(6) Despite subsection (1), no objection may be made by a person in respect of an issue for which the right of objection has been waived in writing by the person.

(7) The Minister may accept a notice of objection even if it was not filed in the prescribed form and manner.

(8) On receipt of a notice of objection, the Minister shall, without delay, reconsider the assessment and vacate or confirm it or make a reassessment.

(9) If, in a notice of objection, a person who wishes to appeal directly to the Tax Court of Canada requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration.

(10) After reconsidering an assessment under subsection (8) or confirming an assessment under subsection (9), the Minister shall notify the person objecting to the assessment of the Minister’s decision by mail.

55. (1) If no objection to an assessment is filed under section 54 within the time limited under this Act, a person may make an application to the Minister to extend the time for filing a notice of objection and the Minister may grant the application.

(2) An application must set out the reasons why the notice of objection was not filed within the time limited under this Act for doing so.

(3) An application must be made by delivering or mailing, to the Assistant Commissioner of the Appeals Branch of the Agency, the application accompanied by a copy of the notice of objection.

(4) The Minister may accept an application even if it was not made in accordance with subsection (3).

(5) On receipt of an application, the Minister shall, without delay, consider the application and grant or refuse it, and shall notify the person of the decision by mail.

(6) If an application is granted, the notice of objection is deemed to have been filed on the day of the decision of the Minister.

(7) No application shall be granted under this section unless

(a) the application is made within one year after the expiry of the time limited under this Act for objecting; and

(b) the person demonstrates that

(i) within the time limited under this Act for objecting, the person

(A) was unable to act or to give a mandate to act in their name, or

(B) had a bona fide intention to object to the assessment,

(ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and

(iii) the application was made as soon as circumstances permitted it to be made.

Appeal

56. (1) A person who has made an application under section 55 may apply to the Tax Court of Canada to have the application granted after either

(a) the Minister has refused the application; or

(b) 90 days have elapsed after the application was made and the Minister has not notified the person of the Minister’s decision.

(2) No application may be made after the expiry of 30 days after the decision referred to in subsection 55(5) was mailed to the person.

(3) An application must be filed in the Registry of the Tax Court of Canada, in accordance with the rules of the Court made under the Tax Court of Canada Act.

(4) The Tax Court of Canada must send a copy of the application to the Commissioner.

(5) The Tax Court of Canada may dispose of an application by dismissing or granting it and, in granting it, the Court may impose any terms that it considers just or order that the notice of objection be deemed to be a valid objection as of the date of the order.

(6) No application shall be granted under this section unless

(a) the application under subsection 55(1) was made within one year after the expiry of the time limited under this Act for objecting; and

(b) the person demonstrates that

(i) within the time limited under this Act for objecting, the person

(A) was unable to act or to give a mandate to act in their name, or

(B) had a bona fide intention to object to the assessment,

(ii) given the reasons set out in the application under this section and the circumstances of the case, it would be just and equitable to grant the application, and

(iii) the application under subsection 55(1) was made as soon as circumstances permitted it to be made.

57. (1) Subject to subsection (2), a person who has filed a notice of objection to an assessment may appeal to the Tax Court of Canada to have the assessment vacated or a reassessment made after

(a) the Minister has confirmed the assessment or has reassessed; or

(b) 180 days have elapsed after the filing of the notice of objection and the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has reassessed.

(2) No appeal under subsection (1) may be instituted after the expiry of 90 days after notice that the Minister has reassessed or confirmed the assessment is sent to the person under subsection 54(10).

(3) The Tax Court of Canada may, on any terms that it sees fit, authorize a person who has instituted an appeal in respect of a matter to amend the appeal to include any further assessment in respect of the matter that the person is entitled under this section to appeal.

58. (1) If no appeal to the Tax Court of Canada under section 57 has been instituted within the time limited by that section for doing so, a person may make an application to the Tax Court of Canada for an order extending the time within which an appeal may be instituted, and the Court may make an order extending the time for appealing and may impose any terms that it considers just.

(2) An application must set out the reasons why the appeal was not instituted within the time limited under section 57 for doing so.

(3) An application must be filed in the Registry of the Tax Court of Canada, in accordance with the rules of the Court made under the Tax Court of Canada Act.

(4) The Tax Court of Canada must send a copy of the application to the office of the Deputy Attorney General of Canada.

(5) No order shall be made under this section unless

(a) the application was made within one year after the expiry of the time limited under section 57 for appealing; and

(b) the person demonstrates that

(i) within the time limited under section 57 for appealing, the person

(A) was unable to act or to give a mandate to act in their name, or

(B) had a bona fide intention to appeal,

(ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application,

(iii) the application was made as soon as circumstances permitted it to be made, and

(iv) there are reasonable grounds for the appeal.

59. (1) Despite section 57, if a person has filed a notice of objection to an assessment, the person may appeal to the Tax Court of Canada to have the assessment vacated, or a reassessment made, only with respect to

(a) an issue in respect of which the person has complied with subsection 54(2) in the notice and the relief sought in respect of the issue as specified by the person in the notice; or

(b) an issue described in subsection 54(5) if the person was not required to file a notice of objection to the assessment that gave rise to the issue.

(2) Despite section 57, a person may not appeal to the Tax Court of Canada to have an assessment vacated or varied in respect of an issue for which the right of objection or appeal has been waived in writing by the person.

60. An appeal to the Tax Court of Canada under this Act shall be instituted in accordance with the Tax Court of Canada Act.

61. The Tax Court of Canada may dispose of an appeal from an assessment by

(a) dismissing it; or

(b) allowing it and

(i) vacating the assessment, or

(ii) referring the assessment back to the Minister for reconsideration and reassessment.

62. (1) If the Minister and another person agree in writing that a question arising under this Act, in respect of any assessment or proposed assessment of the person, should be determined by the Tax Court of Canada, that question shall be determined by that Court.

(2) For the purposes of making an assessment, filing a notice of objection to an assessment or instituting an appeal from an assessment, the time between the day on which proceedings are instituted in the Tax Court of Canada to have a question determined and the day on which the question is finally determined shall not be counted in the computation of

(a) the four-year period referred to in subsection 53(1);

(b) the period within which a notice of objection to an assessment may be filed under subsection 54(1); or

(c) the period within which an appeal may be instituted under subsection 57(2).

63. (1) If the Minister is of the opinion that a question arising out of one and the same transaction or occurrence or series of transactions or occurrences is common to assessments or proposed assessments in respect of two or more persons, the Minister may apply to the Tax Court of Canada for a determination of the question.

(2) An application shall set out

(a) the question in respect of which the Minister requests a determination;

(b) the names of the persons that the Minister seeks to have bound by the determination; and

(c) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of each person named in the application.

(3) A copy of the application shall be served by the Minister on each of the persons named in it and on any other person who, in the opinion of the Tax Court of Canada, is likely to be affected by the determination of the question.

(4) If the Tax Court of Canada is satisfied that a determination of a question set out in an application will affect assessments or proposed assessments in respect of two or more persons who have been served with a copy of the application and who are named in an order of the Tax Court of Canada under this subsection, it may

(a) if none of the persons so named has appealed from such an assessment, proceed to determine the question in any manner that it considers appropriate; or

(b) if one or more of the persons so named has or have appealed, make any order that it considers appropriate joining a party or parties to that appeal or those appeals and proceed to determine the question.

(5) Subject to subsection (6), if a question set out in an application is determined by the Tax Court of Canada, the determination is final and conclusive for the purposes of any assessments of persons named by the Court under subsection (4).

(6) If a question set out in an application is determined by the Tax Court of Canada, the Minister or any person who has been served with a copy of the application and who is named in an order of the Court under subsection (4) may appeal from the determination, in accord-ance with the provisions of this Act, the Tax Court of Canada Act or the Federal Courts Act, as those provisions relate to appeals from the Tax Court of Canada.

(7) The parties who are bound by a determination are parties to any appeal from the determination.

(8) For the purpose of making an assessment of a person, filing a notice of objection to an assessment or instituting an appeal from an assessment, the periods described in subsection (9) shall not be counted in the computation of

(a) the four-year period referred to in subsection 53(1);

(b) the period within which a notice of objection to an assessment may be filed under subsection 54(1); or

(c) the period within which an appeal may be instituted under subsection 57(2).

(9) The period that is not to be counted in the computation of the periods described in paragraphs (8)(a) to (c) is the time between the day on which an application that is made under this section is served on a person under subsection (3) and

(a) in the case of a person named in an order of the Tax Court of Canada under subsection (4), the day on which the determination becomes final and conclusive and not subject to any appeal; or

(b) in the case of any other person, the day on which the person is served with a notice that the person has not been named in an order of the Tax Court of Canada under subsection (4).