VIII, s. 95, c. 21, s. 781998, c. 19, s. 1852001, c. 17, s. 1542013, c. 34, ss. 140(E), 312
160(0.1)In this section and section 160.01, a transaction includes an arrangement or event.Marginal note:Tax liability re property transferred not at arm’s length(1)Where a person has, on or after May 1, 1951, transferred property, either directly or indirectly, by means of a trust or by any other means whatever, to(a)the person’s spouse or common-law partner or a person who has since become the person’s spouse or common-law partner,(b)a person who was under 18 years of age, or(c)a person with whom the person was not dealing at arm’s length,the following rules apply:(d)the transferee and transferor are jointly and severally, or solidarily, liable to pay a part of the transferor’s tax under this Part for each taxation year equal to the amount by which the tax for the year is greater than it would have been if it were not for the operation of sections 74.1 to 75.1 of this Act and section 74 of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, in respect of any income from, or gain from the disposition of, the property so transferred or property substituted for it, and(e)the transferee and transferor are jointly and severally, or solidarily, liable to pay under this Act an amount equal to the lesser of(i)the amount, if any, by which the fair market value of the property at the time it was transferred exceeds the fair market value at that time of the consideration given for the property, and(ii)the total of all amounts each of which is an amount that the transferor is liable to pay under this Act (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (2) for that amount) in or in respect of the taxation year in which the property was transferred or any preceding taxation year,but nothing in this subsection limits the liability of the transferor under any other provision of this Act or of the transferee for the interest that the transferee is liable to pay under this Act on an assessment in respect of the amount that the transferee is liable to pay because of this subsection.Marginal note:Joint and several, or solidary, liability — subsection 69(11)(1.1)If a particular person or partnership is deemed by subsection 69(11) to have disposed of a property at any time, the person referred to in that subsection to whom a benefit described in that subsection was available in respect of a subsequent disposition of the property or property substituted for the property is jointly and severally, or solidarily, liable with each other taxpayer to pay a part of the other taxpayer’s liabilities under this Act in respect of each taxation year equal to the amount determined by the formulaA - BwhereAis the total of amounts payable under this Act by the other taxpayer in respect of the year, andBis the amount that would, if the particular person or partnership were not deemed by subsection 69(11) to have disposed of the property, be determined for A in respect of the other taxpayer in respect of the year,but nothing in this subsection limits the liability of the other taxpayer under any other provision of this Act or of any person for the interest that the person is liable to pay under this Act on an assessment in respect of the amount that the person is liable to pay because of this subsection.Marginal note:Joint and several, or solidary, liability — tax on split income(1.2)If an amount is required to be added because of subsection 120.4(2) in computing a specified individual’s tax payable under this Part for a taxation year and the specified individual has not attained the age of 24 years before the start of the year, the following rules apply:(a)subject to paragraph (b), a particular individual is jointly and severally, or solidarily, liable with the specified individual for the amount if(i)where the specified individual has not attained the age of 17 years before the year, the particular individual is a parent of the specified individual, and(ii)where the specified individual has attained the age of 17 years before the year,(A)the particular individual is a source individual in respect of the specified individual,(B)the amount was derived directly or indirectly from a related business (within the meaning of paragraph 120.4(1.1)(d)) in respect of the specified individual, and(C)the particular individual meets the conditions in any of paragraphs (a) to (c) in the definitionrelated businessin subsection 120.4(1) in respect of the related business;(b)the particular individual’s liability under paragraph (a) in respect of the specified individual for the year is to be determined as though the only amounts included in the specified individual’s split income for the year are amounts derived from the related business referred to in subparagraph (a)(ii); and(c)nothing in this subsection limits the liability of(i)the specified individual under any other provision of this Act, or(ii)the particular individual for the interest that the particular individual is liable to pay under this Act on an assessment in respect of the amount that the particular individual is liable to pay because of this subsection.Marginal note:Joint liability — tax on split-pension income(1.3)Where a pensioner and a pension transferee (as those terms are defined in section 60.03) make a joint election under section 60.03 in respect of a split-pension amount (as defined in that section) for a taxation year, they are jointly and severally, or solidarily, liable for the tax payable by the pension transferee under this Part for the taxation year to the extent that that tax payable is greater than it would have been if no amount were required to be added because of paragraph 56(1)(a.2) in computing the income of the pension transferee under this Part for the taxation year.Marginal note:Joint liability — spousal and similar trusts(1.4)If subsection 104(13.4) deems an amount to have become payable in a taxation year of a trust to an individual, the individual and the trust are jointly and severally, or solidarily, liable for the tax payable by the individual under this Part for the individual’s taxation year that includes the day on which the individual dies to the extent that that tax payable is greater than it would have been if the amount were not included in computing the individual’s income under this Part for the taxation year.Marginal note:Assessment(2)The Minister may at any time assess a taxpayer in respect of any amount payable because of this section, and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section as though it had been made under section 152 in respect of taxes payable under this Part.Marginal note:Assessment(2.1)The Minister may at any time assess a taxpayer in respect of any amount payable because of paragraph 94(3)(d) or (e) or subsection 94(17) and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section as though it had been made under section 152 in respect of taxes payable under this Part.Marginal note:Discharge of liability(3)If a particular taxpayer has become jointly and severally, or solidarily, liable with another taxpayer under this section or because of paragraph 94(3)(d) or (e) or subsection 94(17) in respect of part or all of a liability under this Act of the other taxpayer,(a)a payment by the particular taxpayer on account of that taxpayer’s liability shall to the extent of the payment discharge their liability; but(b)a payment by the other taxpayer on account of that taxpayer’s liability discharges the particular taxpayer’s liability only to the extent that the payment operates to reduce that other taxpayer’s liability to an amount less than the amount in respect of which the particular taxpayer is, by this section, made jointly and severally, or solidarily, liable.Marginal note:Fair market value of undivided interest or right(3.1)For the purposes of this section and section 160.4, the fair market value at any time of an undivided interest, or for civil law an undivided right, in a property, expressed as a proportionate interest or right in that property, is, subject to subsection (4), deemed to be equal to the same proportion of the fair market value of that property at that time.Marginal note:Special rules re transfer of property to spouse or common-law partner(4)Notwithstanding subsection 160(1), where at any time a taxpayer has transferred property to the taxpayer’s spouse or common-law partner pursuant to a decree, order or judgment of a competent tribunal or pursuant to a written separation agreement and, at that time, the taxpayer and the spouse or common-law partner were separated and living apart as a result of the breakdown of their marriage or common-law partnership, the following rules apply:(a)in respect of property so transferred after February 15, 1984,(i)the spouse or common-law partner shall not be liable under subsection 160(1) to pay any amount with respect to any income from, or gain from the disposition of, the property so transferred or property substituted therefor, and(ii)for the purposes of paragraph 160(1)(e), the fair market value of the property at the time it was transferred shall be deemed to be nil, and(b)in respect of property so transferred before February 16, 1984, where the spouse common-law partner would, but for this paragraph, be liable to pay an amount under this Act by virtue of subsection 160(1), the spouse’s or common-law partner’s liability in respect of that amount shall be deemed to have been discharged on February 16, 1984,but nothing in this subsection shall operate to reduce the taxpayer’s liability under any other provision of this Act.Marginal note:Anti-avoidance rules(5)For the purposes of subsections (1) to (4), if a person (referred to in this section as the “transferor”) has transferred property either directly or indirectly, by means of a trust or by any other means whatever to another person (referred to in this section as the “transferee”) in a transaction or as part of a series of transactions(a)the transferor is deemed to not be dealing at arm’s length with the transferee at all times in the transaction or series of transactions if(i)at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, the transferor and transferee do not deal at arm’s length, and(ii)it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and transferor for an amount payable under this Act;(b)an amount that the transferor is liable to pay under this Act (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (2) for that amount) is deemed to have become payable in the taxation year in which the property was transferred if it is reasonable to conclude that one of the purposes for the transfer of property is to avoid the payment of a future amount payable under this Act by the transferor or transferee; and(c)the amount determined under subparagraph (1)(e)(i) is deemed to be the greater of(i)the amount otherwise determined under that subparagraph without reference to this paragraph, and(ii)the amount determined by the formulaA − BwhereAis the fair market value of the property at the time of the transfer, andBis(A)the lowest fair market value of the consideration (that is held by the transferor) given for the property at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, or(B)if the consideration is in a form that is cancelled or extinguished during the period referred to in clause (A),(I)the amount that is the lowest of the amount determined in clause (A) and the fair market value during the period of any property, other than property that is cancelled or extinguished during the period, that is substituted for the consideration referred to in clause (A), or(II)if there is no property that is substituted for the consideration referred to in clause (A), other than property cancelled or extinguished during the period, nil.
(a)the person’s spouse or common-law partner or a person who has since become the person’s spouse or common-law partner,(b)a person who was under 18 years of age, or(c)a person with whom the person was not dealing at arm’s length,
(d)the transferee and transferor are jointly and severally, or solidarily, liable to pay a part of the transferor’s tax under this Part for each taxation year equal to the amount by which the tax for the year is greater than it would have been if it were not for the operation of sections 74.1 to 75.1 of this Act and section 74 of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, in respect of any income from, or gain from the disposition of, the property so transferred or property substituted for it, and(e)the transferee and transferor are jointly and severally, or solidarily, liable to pay under this Act an amount equal to the lesser of(i)the amount, if any, by which the fair market value of the property at the time it was transferred exceeds the fair market value at that time of the consideration given for the property, and(ii)the total of all amounts each of which is an amount that the transferor is liable to pay under this Act (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (2) for that amount) in or in respect of the taxation year in which the property was transferred or any preceding taxation year,
(i)the amount, if any, by which the fair market value of the property at the time it was transferred exceeds the fair market value at that time of the consideration given for the property, and(ii)the total of all amounts each of which is an amount that the transferor is liable to pay under this Act (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (2) for that amount) in or in respect of the taxation year in which the property was transferred or any preceding taxation year,
(a)subject to paragraph (b), a particular individual is jointly and severally, or solidarily, liable with the specified individual for the amount if(i)where the specified individual has not attained the age of 17 years before the year, the particular individual is a parent of the specified individual, and(ii)where the specified individual has attained the age of 17 years before the year,(A)the particular individual is a source individual in respect of the specified individual,(B)the amount was derived directly or indirectly from a related business (within the meaning of paragraph 120.4(1.1)(d)) in respect of the specified individual, and(C)the particular individual meets the conditions in any of paragraphs (a) to (c) in the definitionrelated businessin subsection 120.4(1) in respect of the related business;(b)the particular individual’s liability under paragraph (a) in respect of the specified individual for the year is to be determined as though the only amounts included in the specified individual’s split income for the year are amounts derived from the related business referred to in subparagraph (a)(ii); and(c)nothing in this subsection limits the liability of(i)the specified individual under any other provision of this Act, or(ii)the particular individual for the interest that the particular individual is liable to pay under this Act on an assessment in respect of the amount that the particular individual is liable to pay because of this subsection.
(i)where the specified individual has not attained the age of 17 years before the year, the particular individual is a parent of the specified individual, and(ii)where the specified individual has attained the age of 17 years before the year,(A)the particular individual is a source individual in respect of the specified individual,(B)the amount was derived directly or indirectly from a related business (within the meaning of paragraph 120.4(1.1)(d)) in respect of the specified individual, and(C)the particular individual meets the conditions in any of paragraphs (a) to (c) in the definitionrelated businessin subsection 120.4(1) in respect of the related business;
(A)the particular individual is a source individual in respect of the specified individual,(B)the amount was derived directly or indirectly from a related business (within the meaning of paragraph 120.4(1.1)(d)) in respect of the specified individual, and(C)the particular individual meets the conditions in any of paragraphs (a) to (c) in the definitionrelated businessin subsection 120.4(1) in respect of the related business;
(i)the specified individual under any other provision of this Act, or(ii)the particular individual for the interest that the particular individual is liable to pay under this Act on an assessment in respect of the amount that the particular individual is liable to pay because of this subsection.
(a)a payment by the particular taxpayer on account of that taxpayer’s liability shall to the extent of the payment discharge their liability; but(b)a payment by the other taxpayer on account of that taxpayer’s liability discharges the particular taxpayer’s liability only to the extent that the payment operates to reduce that other taxpayer’s liability to an amount less than the amount in respect of which the particular taxpayer is, by this section, made jointly and severally, or solidarily, liable.
(a)in respect of property so transferred after February 15, 1984,(i)the spouse or common-law partner shall not be liable under subsection 160(1) to pay any amount with respect to any income from, or gain from the disposition of, the property so transferred or property substituted therefor, and(ii)for the purposes of paragraph 160(1)(e), the fair market value of the property at the time it was transferred shall be deemed to be nil, and(b)in respect of property so transferred before February 16, 1984, where the spouse common-law partner would, but for this paragraph, be liable to pay an amount under this Act by virtue of subsection 160(1), the spouse’s or common-law partner’s liability in respect of that amount shall be deemed to have been discharged on February 16, 1984,
(i)the spouse or common-law partner shall not be liable under subsection 160(1) to pay any amount with respect to any income from, or gain from the disposition of, the property so transferred or property substituted therefor, and(ii)for the purposes of paragraph 160(1)(e), the fair market value of the property at the time it was transferred shall be deemed to be nil, and
(a)the transferor is deemed to not be dealing at arm’s length with the transferee at all times in the transaction or series of transactions if(i)at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, the transferor and transferee do not deal at arm’s length, and(ii)it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and transferor for an amount payable under this Act;(b)an amount that the transferor is liable to pay under this Act (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (2) for that amount) is deemed to have become payable in the taxation year in which the property was transferred if it is reasonable to conclude that one of the purposes for the transfer of property is to avoid the payment of a future amount payable under this Act by the transferor or transferee; and(c)the amount determined under subparagraph (1)(e)(i) is deemed to be the greater of(i)the amount otherwise determined under that subparagraph without reference to this paragraph, and(ii)the amount determined by the formulaA − BwhereAis the fair market value of the property at the time of the transfer, andBis(A)the lowest fair market value of the consideration (that is held by the transferor) given for the property at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, or(B)if the consideration is in a form that is cancelled or extinguished during the period referred to in clause (A),(I)the amount that is the lowest of the amount determined in clause (A) and the fair market value during the period of any property, other than property that is cancelled or extinguished during the period, that is substituted for the consideration referred to in clause (A), or(II)if there is no property that is substituted for the consideration referred to in clause (A), other than property cancelled or extinguished during the period, nil.
(i)at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, the transferor and transferee do not deal at arm’s length, and(ii)it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and transferor for an amount payable under this Act;
(i)the amount otherwise determined under that subparagraph without reference to this paragraph, and(ii)the amount determined by the formulaA − BwhereAis the fair market value of the property at the time of the transfer, andBis(A)the lowest fair market value of the consideration (that is held by the transferor) given for the property at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, or(B)if the consideration is in a form that is cancelled or extinguished during the period referred to in clause (A),(I)the amount that is the lowest of the amount determined in clause (A) and the fair market value during the period of any property, other than property that is cancelled or extinguished during the period, that is substituted for the consideration referred to in clause (A), or(II)if there is no property that is substituted for the consideration referred to in clause (A), other than property cancelled or extinguished during the period, nil.
(A)the lowest fair market value of the consideration (that is held by the transferor) given for the property at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, or(B)if the consideration is in a form that is cancelled or extinguished during the period referred to in clause (A),(I)the amount that is the lowest of the amount determined in clause (A) and the fair market value during the period of any property, other than property that is cancelled or extinguished during the period, that is substituted for the consideration referred to in clause (A), or(II)if there is no property that is substituted for the consideration referred to in clause (A), other than property cancelled or extinguished during the period, nil.
(I)the amount that is the lowest of the amount determined in clause (A) and the fair market value during the period of any property, other than property that is cancelled or extinguished during the period, that is substituted for the consideration referred to in clause (A), or(II)if there is no property that is substituted for the consideration referred to in clause (A), other than property cancelled or extinguished during the period, nil.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 1601998, c. 19, s. 1862000, c. 12, s. 142, c. 19, s. 46, c. 30, s. 1702007, c. 29, s. 232013, c. 34, ss. 16, 141, 3132014, c. 39, s. 572018, c. 12, s. 262022, c. 19, s. 38
160.01(1)The following definitions apply in this section.gross entitlementsgross entitlementsof a person at any time, in respect of a planning activity of the person, means all amounts to which the person, or another person not dealing at arm’s length with the person, is entitled, either before or after that time and either absolutely or contingently, to receive or obtain in respect of the activity. (droits à paiement)personpersonincludes a partnership. (personne)planning activityplanning activityhas the same meaning as in subsection 163.2(1). (activité de planification)section 160 avoidance planningsection 160 avoidance planningby a person, means planning activity in respect of a transaction or series of transactions that(a)is, or is part of, a section 160 avoidance transaction; and(b)one of the purposes of the transaction or series of transactions is to(i)reduce a transferee’s joint and several, or solidary, liability for tax owing under this Act by the transferor (or that would be owing by the transferor if not for a tax attribute transaction), or(ii)reduce the person’s or another person’s ability to pay any amount owing, or that may become owing, under this Act. (planification d’évitement en vertu de l’article 160)section 160 avoidance transactionsection 160 avoidance transactionmeans a transaction or series of transactions in respect of which(a)the conditions set out in paragraph 160(5)(a) or (b) are met; or(b)if subsection 160(5) applied to the transaction or series of transactions, the amount determined under subparagraph 160(5)(c)(ii) would exceed the amount determined under subparagraph 160(5)(c)(i). (opération d’évitement en vertu de l’article 160)tax attributetax attributemeans a balance, pool or other amount determined under this Act that is or may be relevant in computing income or in determining a taxpayer’s liability for tax under this Act in any taxation year and includes(a)a capital loss, non-capital loss, restricted farm loss, farm loss and limited partnership loss;(b)an amount that is deductible in computing a person’s income;(c)any balance of undeducted outlays, expenses or other amounts;(d)paid-up capital in respect of a share of any class of the capital stock of a corporation;(e)cost or capital cost of a property;(f)an amount deductible from an amount otherwise payable under this Act; and(g)an amount that is deemed to have been remitted as an amount payable under this Act. (attribut fiscal)tax attribute transactiontax attribute transactionmeans a transaction or series of transactions in which a tax attribute – of a person that dealt at arm’s length with a transferor or transferee immediately before the transaction or series of transactions – is used, directly or indirectly, to provide a tax benefit for the transferor or transferee (or, if either the transferor or transferee is amalgamated with another corporation, the new corporation within the meaning assigned by subsection 87(1)). (opération d’attribut fiscal)tax benefittax benefithas the same meaning as in subsection 163.2(1). (avantage fiscal)transfereetransfereehas the meaning assigned by subsections 160(1) and (5). (bénéficiaire du transfert)transferortransferorhas the meaning assigned by subsections 160(1) and (5). (auteur du transfert)Marginal note:Penalty(2)Every person that engages in, participates in, assents to or acquiesces in planning activity that they know is section 160 avoidance planning, or would reasonably be expected to know is section 160 avoidance planning, but for circumstances amounting to gross negligence is liable to a penalty that is the lesser of(a)50% of the amount payable under this Act (determined without reference to this subsection), the joint and several, or solidary, liability for which was sought to be avoided through the planning, and(b)the total of $100,000 and the person’s gross entitlements at the time at which the notice of assessment of the penalty is sent to the person in respect of the planning.Marginal note:Clerical or secretarial services(3)Subsection (2) does not apply to a person solely because the person provided clerical services or secretarial services with respect to the planning.
(a)is, or is part of, a section 160 avoidance transaction; and(b)one of the purposes of the transaction or series of transactions is to(i)reduce a transferee’s joint and several, or solidary, liability for tax owing under this Act by the transferor (or that would be owing by the transferor if not for a tax attribute transaction), or(ii)reduce the person’s or another person’s ability to pay any amount owing, or that may become owing, under this Act. (planification d’évitement en vertu de l’article 160)
(i)reduce a transferee’s joint and several, or solidary, liability for tax owing under this Act by the transferor (or that would be owing by the transferor if not for a tax attribute transaction), or(ii)reduce the person’s or another person’s ability to pay any amount owing, or that may become owing, under this Act. (planification d’évitement en vertu de l’article 160)
(a)the conditions set out in paragraph 160(5)(a) or (b) are met; or(b)if subsection 160(5) applied to the transaction or series of transactions, the amount determined under subparagraph 160(5)(c)(ii) would exceed the amount determined under subparagraph 160(5)(c)(i). (opération d’évitement en vertu de l’article 160)
(a)a capital loss, non-capital loss, restricted farm loss, farm loss and limited partnership loss;(b)an amount that is deductible in computing a person’s income;(c)any balance of undeducted outlays, expenses or other amounts;(d)paid-up capital in respect of a share of any class of the capital stock of a corporation;(e)cost or capital cost of a property;(f)an amount deductible from an amount otherwise payable under this Act; and(g)an amount that is deemed to have been remitted as an amount payable under this Act. (attribut fiscal)
(a)50% of the amount payable under this Act (determined without reference to this subsection), the joint and several, or solidary, liability for which was sought to be avoided through the planning, and(b)the total of $100,000 and the person’s gross entitlements at the time at which the notice of assessment of the penalty is sent to the person in respect of the planning.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]2022, c. 19, s. 39
160.1(1)Where at any time the Minister determines that an amount has been refunded to a taxpayer for a taxation year in excess of the amount to which the taxpayer was entitled as a refund under this Act, the following rules apply:(a)the excess shall be deemed to be an amount that became payable by the taxpayer on the day on which the amount was refunded; and(b)the taxpayer shall pay to the Receiver General interest at the prescribed rate on the excess (other than any portion thereof that can reasonably be considered to arise as a consequence of the operation of section 122.5, 122.61 or 122.8) from the day it became payable to the date of payment.Marginal note:Liability for refund by reason of s. 122.5(1.1)If a person is a qualified relation of an individual (within the meaning assigned by subsection 122.5(1)), in relation to one or more months specified for a taxation year, the person and the individual are jointly and severally, or solidarily, liable to pay the lesser of(a)any excess described in subsection (1) that was refunded in respect of the taxation year to, or applied to a liability of, the individual as a consequence of the operation of section 122.5, and(b)the total of the amounts deemed by subsection 122.5(3) or (3.002) to have been paid by the individual during those specified months.Marginal note:Liability for refund — Climate Action Incentive(1.2)If a person is a qualified relation of an individual (within the meaning assigned by subsection 122.8(1)), in relation to one or more months specified for a taxation year, the person and the individual are jointly and severally, or solidarily, liable to pay the lesser of(a)any excess described in subsection (1) that was refunded in respect of the taxation year to, or applied to a liability of, the individual as a consequence of the operation of section 122.8; and(b)the total of the amounts deemed by subsection 122.8(4) to have been paid by the individual during those specified months.Marginal note:Liability under other provisions(2)Subsections (1.1) and (1.2) do not limit a person’s liability under any other provision of this Act.Marginal note:Liability for refunds by reason of section 122.61(2.1)If a person was a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6) of an individual at the end of a taxation year, the person and the individual are jointly and severally, or solidarily, liable to pay any excess described in subsection (1) that was refunded in respect of the year to, or applied to a liability of, the individual as a consequence of the operation of section 122.61 if the person was the individual’s cohabiting spouse or common-law partner at the time the excess was refunded, but nothing in this subsection is deemed to limit the liability of any person under any other provision of this Act.Marginal note:Liability for excess refunds under section 126.1 to partners(2.2)Every taxpayer who, on the day on which an amount has been refunded to, or applied to the liability of, a member of a partnership as a consequence of the operation of subsection 126.1(7) or (13) in excess of the amount to which the member was so entitled, is a member of that partnership is jointly and severally, or solidarily, liable with each other taxpayer who on that day is a member of the partnership to pay the excess and to pay interest on the excess, but nothing in this subsection is deemed to limit the liability of any person under any other provision of this Act.Marginal note:Assessment(3)The Minister may at any time assess a taxpayer in respect of any amount payable by the taxpayer because of any of subsections (1) to (1.2) or for which the taxpayer is liable because of subsection (2.1) or (2.2), and the provisions of this Division (including, for greater certainty, the provisions in respect of interest payable) apply, with any modifications that the circumstances require, in respect of an assessment made under this section, as though it were made under section 152 in respect of taxes payable under this Part, except that no interest is payable on an amount assessed in respect of an excess referred to in subsection (1) that can reasonably be considered to arise as a consequence of the operation of section 122.5, 122.61 or 122.8.Marginal note:Where amount applied to liability(4)Where an amount is applied to a liability of a taxpayer to Her Majesty in right of Canada in excess of the amount to which the taxpayer is entitled as a refund under this Act, this section applies as though that amount had been refunded to the taxpayer on the day it was so applied.
(a)the excess shall be deemed to be an amount that became payable by the taxpayer on the day on which the amount was refunded; and(b)the taxpayer shall pay to the Receiver General interest at the prescribed rate on the excess (other than any portion thereof that can reasonably be considered to arise as a consequence of the operation of section 122.5, 122.61 or 122.8) from the day it became payable to the date of payment.
(a)any excess described in subsection (1) that was refunded in respect of the taxation year to, or applied to a liability of, the individual as a consequence of the operation of section 122.5, and(b)the total of the amounts deemed by subsection 122.5(3) or (3.002) to have been paid by the individual during those specified months.
(a)any excess described in subsection (1) that was refunded in respect of the taxation year to, or applied to a liability of, the individual as a consequence of the operation of section 122.8; and(b)the total of the amounts deemed by subsection 122.8(4) to have been paid by the individual during those specified months.
[NOTE: Application provisions are not included in the consolidated textsee relevant amending Acts and regulations.]R.S., 1985, c. 1 (5th Supp.), s. 160.11994, c. 7, Sch