VIII, s. 153]
Marginal note:Withholding tax
(11)Provisions of this Act requiring a person to deduct or withhold an amount in respect of taxes from amounts payable to a taxpayer are applicable to Her Majesty in right of Canada or a province.
Marginal note:Agreement not to deduct void
(12)Where this Act requires an amount to be deducted or withheld, an agreement by the person on whom that obligation is imposed not to deduct or withhold is void.
Marginal note:Minister’s receipt discharges debtor
(13)The receipt of the Minister for an amount deducted or withheld by any person as required by or under this Act is a good and sufficient discharge of the liability of any debtor to the debtor’s creditor with respect thereto to the extent of the amount referred to in the receipt.
Marginal note:Application of other Parts
(14)Parts IV, IV.1, VI and VI.1 do not apply to any corporation for any period throughout which it is exempt from tax because of section 149.
Marginal note:Partnership included in “person”
(15)In this section, a reference to a “person” with respect to any amount deducted or withheld or required to be deducted or withheld is deemed to include a partnership.
Marginal note:Municipal or provincial corporation excepted
(16)A corporation that at any time in a taxation year would be a corporation described in any of paragraphs 149(1)(d) to (d.6) but for a provision of an appropriation Act is deemed not to be a private corporation for the purposes of Part IV with respect to that year.
Marginal note:Liability of directors for failure to deduct
227.1(1)Where a corporation has failed to deduct or withhold an amount as required by subsection 135(3) or 135.1(7) or section 153 or 215, has failed to remit such an amount or has failed to pay an amount of tax for a taxation year as required under Part VII or VIII, the directors of the corporation at the time the corporation was required to deduct, withhold, remit or pay the amount are jointly and severally, or solidarily, liable, together with the corporation, to pay that amount and any interest or penalties relating to it.
Marginal note:Limitations on liability
(2)A director is not liable under subsection 227.1(1), unless
(a)a certificate for the amount of the corporation’s liability referred to in that subsection has been registered in the Federal Court under section 223 and execution for that amount has been returned unsatisfied in whole or in part;
(b)the corporation has commenced liquidation or dissolution proceedings or has been dissolved and a claim for the amount of the corporation’s liability referred to in that subsection has been proved within six months after the earlier of the date of commencement of the proceedings and the date of dissolution; or
(c)the corporation has made an assignment or a bankruptcy order has been made against it under theBankruptcy and Insolvency Actand a claim for the amount of the corporation’s liability referred to in that subsection has been proved within six months after the date of the assignment or bankruptcy order.
Marginal note:Idem
(3)A director is not liable for a failure under subsection 227.1(1) where the director exercised the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would have exercised in comparable circumstances.
Marginal note:Limitation period
(4)No action or proceedings to recover any amount payable by a director of a corporation under subsection 227.1(1) shall be commenced more than two years after the director last ceased to be a director of that corporation.
Marginal note:Amount recoverable
(5)Where execution referred to in paragraph 227.1(2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution.
Marginal note:Preference
(6)Where a director pays an amount in respect of a corporation’s liability referred to in subsection 227.1(1) that is proved in liquidation, dissolution or bankruptcy proceedings, the director is entitled to any preference that Her Majesty in right of Canada would have been entitled to had that amount not been so paid and, where a certificate that relates to that amount has been registered, the director is entitled to an assignment of the certificate to the extent of the director’s payment, which assignment the Minister is hereby empowered to make.
Marginal note:Contribution
(7)A director who has satisfied a claim under this section is entitled to contribution from the other directors who were liable for the claim.
Marginal note:Applying payments under collection agreements
228Where a payment is made to the Minister on account of tax under this Act, an Act of a province that imposes a tax similar to the tax imposed under this Act, or any two or more such Acts, such part of that payment as is applied by the Minister in accordance with the provisions of a collection agreement entered into under Part III of theFederal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Actagainst the tax payable by a taxpayer for a taxation year under this Act discharges the liability of the taxpayer for that tax only to the extent of the part of the payment so applied, notwithstanding that the taxpayer directed that the payment be applied in a manner other than that provided in the collection agreement or made no direction as to its application.
Marginal note:Repeal of s. 229
229.1(1)Section 229 is repealed.
Marginal note:Coming into force
(2)Subsection 229.1(1) shall come into force on a day to be fixed by proclamation.
Marginal note:Records and books
230(1)Every person carrying on business and every person who is required, by or pursuant to this Act, to pay or collect taxes or other amounts shall keep records and books of account (including an annual inventory kept in prescribed manner) at the person’s place of business or residence in Canada or at such other place as may be designated by the Minister, in such form and containing such information as will enable the taxes payable under this Act or the taxes or other amounts that should have been deducted, withheld or collected to be determined.
Marginal note:Records and books
(2)Every qualified donee referred to in paragraphs (a) to (c) of the definitionqualified doneein subsection 149.1(1) shall keep records and books of account — in the case of a qualified donee referred to in any of subparagraphs (a)(i) and (iii) and paragraphs (b), (b.1) and (c) of that definition, at an address in Canada recorded with the Minister or designated by the Minister — containing
(a)information in such form as will enable the Minister to determine whether there are any grounds for the revocation of its registration under this Act;
(b)a duplicate of each receipt containing prescribed information for a donation received by it; and
(c)other information in such form as will enable the Minister to verify the donations to it for which a deduction or tax credit is available under this Act.
Marginal note:Idem, lawyers
(2.1)For greater certainty, the records and books of account required by subsection 230(1) to be kept by a person carrying on business as a lawyer (within the meaning assigned by subsection 232(1)) whether by means of a partnership or otherwise, include all accounting records of the lawyer, including supporting vouchers and cheques.
Marginal note:Minister’s requirement to keep records, etc.
(3)Where a person has failed to keep adequate records and books of account for the purposes of this Act, the Minister may require the person to keep such records and books of account as the Minister may specify and that person shall thereafter keep records and books of account as so required.
Marginal note:Limitation period for keeping records, etc.
(4)Every person required by this section to keep records and books of account shall retain
(a)the records and books of account referred to in this section in respect of which a period is prescribed, together with every account and voucher necessary to verify the information contained therein, for such period as is prescribed; and
(b)all other records and books of account referred to in this section, together with every account and voucher necessary to verify the information contained therein, until the expiration of six years from the end of the last taxation year to which the records and books of account relate.
Marginal note:Electronic records
(4.1)Every person required by this section to keep records who does so electronically shall retain them in an electronically readable format for the retention period referred to in subsection 230(4).
Marginal note:Exemptions
(4.2)The Minister may, on such terms and conditions as are acceptable to the Minister, exempt a person or a class of persons from the requirement in subsection 230(4.1).
Marginal note:Exception where no return filed
(5)Where, in respect of any taxation year, a person referred to in subsection 230(1) has not filed a return with the Minister as and when required by section 150, that person shall retain every record and book of account that is required by this section to be kept and that relates to that taxation year, together with every account and voucher necessary to verify the information contained therein, until the expiration of six years from the day the return for that taxation year is filed.
Marginal note:Exception where objection or appeal
(6)Where a person required by this section to keep records and books of account serves a notice of objection or where that person is a party to an appeal to the Tax Court of Canada under this Act, that person shall retain every record, book of account, account and voucher necessary for dealing with the objection or appeal until, in the case of the serving of a notice of objection, the time provided by section 169 to appeal has elapsed or, in the case of an appeal, until the appeal is disposed of and any further appeal in respect thereof is disposed of or the time for filing any such further appeal has expired.
Marginal note:Exception where demand by Minister
(7)Where the Minister is of the opinion that it is necessary for the administration of this Act, the Minister may, by registered letter or by a demand served personally, require any person required by this section to keep records and books of account to retain those records and books of account, together with every account and voucher necessary to verify the information contained therein, for such period as is specified in the letter or demand.
Marginal note:Permission for earlier disposal
(8)A person required by this section to keep records and books of account may dispose of the records and books of account referred to in this section, together with every account and voucher necessary to verify the information contained therein, before the expiration of the period in respect of which those records and books of account are required to be kept if written permission for their disposal is given by the Minister.
Marginal note:Records re monetary contributions -Canada Elections Act
230.1(1)Every agent authorized under theCanada Elections Actto accept monetary contributions referred to in that Act shall keep records, sufficient to enable each monetary contribution within the meaning assigned by subsection 127(4.1) that they receive and the expenditures that they make to be verified, (including a duplicate of the receipt referred to in subsection 127(3) for each of those monetary contributions) at
(a)in the case of an agent other than an official agent of a candidate, the address recorded in the registry of political parties or of electoral district associations referred to in theCanada Elections Act; and
(b)in the case of an official agent of a candidate, the agent’s address set out in the nomination papers filed under that Act with the returning officer when the candidate was a prospective candidate or any other address that the Minister designates.
Marginal note:Information Return
(2)Each agent to whom subsection (1) applies shall file with the Minister an information return in prescribed form and containing prescribed information