On so filing and without affecting the person’s liability for tax otherwise payable under Part I, the person is, in lieu of paying tax under this Part on any amount paid, or deemed by this Part to have been paid, in that subsequent taxation year in respect of any interest in, or for civil law any right in, that property to the person or to a partnership of which the person is a member, liable to pay tax under Part I for that subsequent taxation year as though
(a)the person were a person resident in Canada and not exempt from tax under section 149;
(b)the person’s income from the person’s interest in real property, or real right in immovables, in Canada or interest in, or for civil law right in, timber resource properties and timber limits in Canada, and the person’s share of the income of a partnership of which the person was a member from its interest in real property, or real right in immovables, in Canada or interest in, or for civil law right in, timber resource properties and timber limits in Canada, were the person’s only income;
(c)the person were entitled to no deductions from income for the purpose of computing the person’s taxable income; and
(d)the person were entitled to no deductions under sections 118 to 118.9 in computing the person’s tax payable under Part I for the year.
Marginal note:Saving provision
(6)Subsection 216(5) does not apply to require a non-resident person
(a)to file a return of income under Part I for a taxation year unless, by filing that return, there would be included in computing the non-resident person’s income under Part I for that year an amount by virtue of section 13; or
(b)to include in computing the non-resident person’s income for a taxation year any amount to the extent that that amount has been included in computing the non-resident person’s taxable income earned in Canada for that taxation year by virtue of any provision of this Act other than subsection 216(5).
(7)[Repealed, 2013, c. 34, s. 349]
Marginal note:Restriction on deduction
(8)For greater certainty, in determining the amount of tax payable by a non-resident person under Part I for a taxation year by reason of subsection 216(1) or 216(5), no deduction in computing the non-resident person’s income or tax payable under Part I for the year shall be made to the extent that such a deduction by non-resident persons is not permitted under Part I.
Marginal note:Alternative re: acting services
216.1(1)No tax is payable under this Part on any amount described in subsection 212(5.1) that is paid, credited or provided to a non-resident person in a taxation year if the person
(a)files with the Minister, on or before the person’s filing-due date for the year, a return of income under Part I for the year; and
(b)elects in the return to have this section apply for the year.
Marginal note:Deemed Part I payment
(2)If in respect of a particular amount paid, credited or provided in a taxation year, a non-resident person has complied with paragraphs (1)(a) and (b), any amount deducted or withheld and remitted to the Receiver General on behalf of the person on account of tax under subsection 212(5.1) in respect of the particular amount is deemed to have been paid on account of the person’s tax under Part I.
Marginal note:Deemed election and restriction
(3)Where a corporation payment (within the meaning assigned by subsection 212(5.2)) has been made to a non-resident corporation in respect of an actor and at any time the corporation makes an actor payment (within the meaning assigned by subsection 212(5.2)) to or for the benefit of the actor, if the corporation makes an election under subsection (1) for the taxation year in which the corporation payment is made, the actor is deemed to make an election under subsection (1) for the taxation year of the actor in which the corporation makes the actor payment.
Marginal note:Alternative re Canadian benefits
217(1)In this section, a non-resident person’s “Canadian benefits” for a taxation year is the total of all amounts each of which is an amount paid or credited in the year and in respect of which tax under this Part would, but for this section, be payable by the person because of any of paragraphs 212(1)(h), (j) to (m) and (q).
Marginal note:Part I return
(2)No tax is payable under this Part in respect of a non-resident person’s Canadian benefits for a taxation year if the person
(a)files with the Minister, within 6 months after the end of the year, a return of income under Part I for the year; and
(b)elects in the return to have this section apply for the year.
Marginal note:Taxable income earned in Canada
(3)Where a non-resident person elects under paragraph (2)(b) for a taxation year, for the purposes of Part I
(a)the person is deemed to have been employed in Canada in the year; and
(b)the person’s taxable income earned in Canada for the year is deemed to be the greater of
(i)the amount that would, but for subparagraph (ii), be the person’s taxable income earned in Canada for the year if
(A)paragraph 115(1)(a) included the following subparagraph after subparagraph (i):
“(i.1)the non-resident person’s Canadian benefits for the year, within the meaning assigned by subsection 217(1),”, and
(B)paragraph 115(1)(f) were read as follows:
“(f)such of the other deductions permitted for the purpose of computing taxable income as can reasonably be considered wholly applicable to the amounts described in subparagraphs (a)(i) to (vi).”; and
(ii)the person’s income (computed without reference to subsection 56(8)) for the year minus the total of such of the deductions permitted for the purpose of computing taxable income as can reasonably be considered wholly applicable to the amounts described in subparagraphs 115(1)(a)(i) to (vi).
Marginal note:Tax credits — limitation
(4)Sections 118 to 118.91 and 118.94 do not apply in computing the tax payable under Part I for a taxation year by a non-resident person who elects under paragraph (2)(b) for the year, unless
(a)where section 114 applies to the person for the year, all or substantially all of the person’s income for the year is included in computing the person’s taxable income for the year; or
(b)in any other case, all or substantially all of the person’s income for the year is included in computing the amount determined under subparagraph (3)(b)(i) in respect of the person for the year.
Marginal note:Tax credits allowed
(5)In computing the tax payable under Part I for a taxation year by a non-resident person to whom neither paragraph (4)(a) nor paragraph (4)(b) applies for the year there may, notwithstanding section 118.94 and subsection (4), be deducted the lesser of
(a)the total of
(i)such of the amounts that would have been deductible under any of section 118.2, subsections 118.3(2) and (3) and sections 118.8 and 118.9 in computing the person’s tax payable under Part I for the year if the person had been resident in Canada throughout the year, as can reasonably be considered wholly applicable, and
(ii)the amounts that would have been deductible under any of sections 118 and 118.1, subsection 118.3(1) and sections 118.5 and 118.7 in computing the person’s tax payable under Part I for the year if the person had been resident in Canada throughout the year, and
(b)the appropriate percentage for the year of the person’s Canadian benefits for the year.
Marginal note:Special credit
(6)In computing the tax payable under Part I for a taxation year by a non-resident who elects under paragraph (2)(b) for the year, there may be deducted the amount determined by the formula
A × [(B - C) / B]
where
Marginal note:Loan to wholly-owned subsidiary
218(1)For the purposes of this Act, where
(a)a non-resident corporation (in this section referred to as the “parent corporation”) is indebted to
(i)a person resident in Canada, or
(ii)a non-resident insurance corporation carrying on business in Canada,
(in this section referred to as the “creditor”) under an arrangement whereby the parent corporation is required to pay interest in Canadian currency, and
(b)the parent corporation has lent the money in respect of which it is so indebted, or a part thereof, to a subsidiary wholly-owned corporation resident in Canada whose principal business is the making of loans (in this section referred to as the “subsidiary corporation”) under an arrangement whereby the subsidiary corporation is required to repay the loan to the parent corporation with interest at the same rate as is payable by the parent corporation to the creditor,
the amount so lent by the parent corporation to the subsidiary corporation shall be deemed to have been borrowed by the parent corporation as agent of the subsidiary corporation and interest paid by the subsidiary corporation to the parent corporation that has been paid by the parent corporation to the creditor shall be deemed to have been paid by the subsidiary corporation to the creditor and not by the subsidiary corporation to the parent corporation or by the parent corporation to the creditor.
Marginal note:Idem
(2)Where a parent corporation has lent money to a subsidiary wholly-owned corporation resident in Canada whose principal business is not the making of loans and the money has been lent by that corporation to a subsidiary corporation wholly-owned by it and resident in Canada whose principal business is the making of loans, the loan by the parent corporation shall be deemed, for the purpose of subsection 218(1), to have been a loan to a subsidiary wholly-owned corporation whose principal business is the making of loans.
Marginal note:Election
(3)This section does not apply in respect of any payment of interest unless the parent corporation and the creditor have executed, and filed with the Minister, an election in prescribed form.
Marginal note:Application of election
(4)An election filed under subsection 218(3) does not apply in respect of any payment of interest made more than 12 months before the date on which the election was filed with the Minister.
Marginal note:Application of s. 138.1
218.1In respect of life insurance policies for which all or any part of an insurer’s reserves vary in amount depending on the fair market value of a specified group of properties, the rules contained in section 138.1 apply for the purposes of this Part.
Marginal note:Branch interest tax
218.2(1)Every authorized foreign bank shall pay a tax under this Part for each taxation year equal to 25% of its taxable interest expense for the year.
Marginal note:Taxable interest expense
(2)The taxable interest expense of an authorized foreign bank for a taxation year is 15% of the amount, if any, by which
(a)the total of all amounts on account of interest that are deducted under section 20.2 in computing the bank’s income for the year from its Canadian banking business
exceeds
(b)the total of all amounts that are included in paragraph (a) and that are in respect of a liability of the bank to another person or partnership.
Marginal note:Where tax not payable
(3)No tax is payable under this Part for a taxation year by an authorized foreign bank if
(a)the bank is resident in a country with which Canada has a tax treaty at the end of the year; and
(b)no tax similar to the tax under this Part would be payable in that country for the year by a bank resident in Canada carrying on business in that country during the year.
Marginal note:Rate limitation
(4)Notwithstanding any other provision of this Act, the reference in subsection (1) to 25% shall, in respect of a taxation year of an authorized foreign bank that is resident in a country with which Canada has a tax treaty on the last day of the year, be read as a reference to,
(a)if the treaty specifies the maximum rate of tax that Canada may impose under this Part for the year on residents of that country, that rate;
(b)if the treaty does not specify a maximum rate as described in paragraph (a) but does specify the maximum rate of tax that Canada may impose on a payment of interest in the year by a person resident in Canada to a related person resident in that country, that rate; and
(c)in any other case, 25%.
Marginal note:Provisions applicable to Part
(5)Sections 150 to 152, 158, 159, 160.1 and 161 to 167 and Division J of Part I apply to this Part with any modifications that the circumstances require.
Marginal note:Definitions
218.3(1)The following definitions apply in this Part.
assessable distribution, in respect of a Canadian property mutual fund investment, means the portion of any amount that is paid or credited (otherwise than as a SIFT trust wind-up event), by the mutual fund that issued the investment, to a non-resident investor who holds the investment, and that is not otherwise subject to tax under Part I or Part XIII. (distribution déterminée)
Canadian property mutual fund investmentmeans a share of the capital stock of a mutual fund corporation, or a unit of a mutual fund trust, if
(a)the share or unit is listed on a designated stock exchange; and
(b)more than 50% of the fair market value of the share or unit is attributable to one or more properties each of which is real property in Canada, a Canadian resource property or a timber resource property. (placement collectif en biens canadiens)
Canadian property mutual fund loss— of a non-resident investor for a taxation year for which the non-resident investor has filed, on or before their filing-due date for the taxation year, a return of income under this Part in prescribed form, in respect of a Canadian property mutual fund investment — means the lesser of
(a)the non-resident investor’s loss (for greater certainty as determined under section 40) for the taxation year from the disposition of the Canadian property mutual fund investment, and
(b)the total of all assessable distributions that were paid or credited on the Canadian property mutual fund investment after the non-resident investor last acquired the investment and at or before the time of the disposition. (perte collective en biens canadiens)
non-resident investormeans a non-resident person or a partnership other than a Canadian partnership. (investisseur non résident)
unused Canadian property mutual fund loss, of a non-resident investor for a taxation year, means the portion of the total of the non-resident investor’s Canadian mutual fund property losses for preceding taxation years that has neither reduced under subsection (3) the amount of tax payable, nor increased under subsection (5) the amount of a refund of tax paid, under this Part for any preceding taxation year. (perte collective en biens canadiens inutilisée)
Marginal note:Tax payable
(2)If at any time a person (referred to in this section as the “payer”) pays or credits, to a non-resident investor who holds a Canadian property mutual fund investment, an amount as, on account of, in lieu of payment of or in satisfaction of, an assessable distribution,
(a)the non-resident investor is deemed for the purposes of this Act, other than section 150, to have disposed at that time, for proceeds equal to the amount of the assessable distribution, of a property
(i)that is a taxable Canadian property the adjusted cost base of which to the non-resident investor immediately before that time is nil, and
(ii)that is in all other respects identical to the Canadian property mutual fund investment;
(b)the non-resident investor is liable to pay an income tax of 15% on the amount of any gain (for greater certainty as determined under section 40) from the disposition; and
(c)the payer shall, notwithstanding any agreement or law to the contrary,
(i)deduct or withhold 15% from the amount paid or credited,
(ii)immediately remit that amount to the Receiver General on behalf of the non-resident investor on account of the tax, and
(iii)submit with the remittance a statement in prescribed form.
Marginal note:Use of losses
(3)If a non-resident investor files, on or before their filing-due date for a taxation year, a return of income under this Part in prescribed form for the taxation year, the non-resident investor is liable, instead of paying tax under paragraph (2)(b) in respect of any amount paid or credited in the taxation year, to pay an income tax of 15% for the taxation year on the amount, if any, by which
(a)the total of the non-resident investor’s gains under subsection (2) for the taxation year
exceeds
(b)the total of the non-resident investor’s Canadian property mutual fund losses for the year and the non-resident investor’s unused Canadian property mutual fund loss for the taxation year.
Marginal note:Deemed tax paid
(4)If a non-resident investor files, on or before their filing-due date for a taxation year, a return of income under this Part in prescribed form for the taxation year, any amount that is remitted to the Receiver General in respect of an assessable distribution paid or credited to the non-resident investor in the taxation year is deemed to have been paid on account of the non-resident investor’s tax under subsection (3) for the taxation year.
Marginal note:Refund
(5)The amount, if any, by which the total of all amounts paid on account of a non-resident investor’s tax under subsection (3) for a taxation year exceeds the non-resident investor’s liability for tax under this Part for the taxation year shall be refunded to the non-resident investor.
Marginal note:Excess loss — carryback
(6)If a non-resident investor files, on or before their filing-due date for a taxation year, a return of income under this Part in prescribed form for the taxation year, the Minister shall refund to the non-resident investor an amount equal to the lesser of
(a)the total amount of tax under this Part paid by the non-resident investor in each of the three preceding taxation years, to the extent that the Minister has not previously refunded that tax, and
(b)15% of the amount, if any, by which
(i)the total of the non-resident investor’s Canadian property mutual fund losses for the taxation year and the non-resident investor’s unused Canadian property mutual fund loss for the taxation year
exceeds
(ii)the total of all assessable distributions paid or credited to the non-resident investor in the taxation year.
Marginal note:Ordering
(7)In applying subsection (6), amounts of tax are to be considered to be refunded in the order in which they were paid.
Marginal note:Partnership filing-due date
(8)For the purposes of this Part, the taxation year of a partnership is its fiscal period and the filing-due date for the taxation year is to be determined as if the partnership were a corporation.
Marginal note:Partnership — member resident in Canada
(9)If a non-resident investor is a partnership a member of which is resident in Canada, the portion of the tax paid by the partnership under this Part in respect of an assessable distribution paid or credited to the partnership in a particular taxation year of the partnership (or, if the partnership files a return of income for the particular taxation year in accordance with subsection (3), the portion of the tax paid by the partnership under that subsection for the taxation year) that can reasonably be considered to be the member’s share is deemed
(a)to be an amount paid on account of that member’s liability for tax under Part I for that member’s taxation year in which the particular taxation year of the partnership ends; and
(b)except for the purposes of this subsection, to be neither a tax paid on account of the partnership’s tax under this Part nor a tax paid by the partnership.
Marginal note:Provisions applicable
(10)Section 150.1, subsections 161(1), (7) and (11), sections 162 to 167, Division J of Part I, paragraph 214(3)(f), subsections 215(2), (3) and (6) and sections 227 and 227.1 apply to this Part with any modifications that the circumstances require.
Marginal note:Additional tax
219(1)Every corporation that is non-resident in a taxation year shall, on or before its balance-due day for the year, pay a tax under this Part for the year equal to 25% of the amount, if any, by which the total of
(a)the corporation’s taxable income earned in Canada for the year (in this subsection referred to as the corporation’s “base amount”),
(b)the amount deducted because of section 112 and paragraph 115(1)(e) in computing the corporation’s base amount,
(c)[Repealed, 2003, c. 28, s. 17]
(d)the amount, if any, by which the total of all amounts each of which is a taxable capital gain of the corporation for the year from a disposition of a taxable Canadian property exceeds the total of all amounts each of which is
(i)an allowable capital loss of the corporation for the year from a disposition of a taxable Canadian property, or
(ii)an amount deductible because of paragraphs 111(1)(b) and 115(1)(d) in computing the corporation’s base amount,
(e)the total of all amounts each of which is an amount in respect of a grant or credit that
(i)can reasonably be considered to have been received by the corporation in the year as a reimbursement or repayment of, or as indemnification or compensation for, an amount deducted because of paragraph (j), as it read in its application to the 1995 taxation year, in computing the amount determined under this subsection for a preceding taxation year that began before 1996, and
(ii)was not included in computing the corporation’s base amount for any taxation year,
(f)where, at any time in the year, the corporation has made one or more dispositions described in paragraph 219(219)(l) of qualified property, the total of all amounts each of which is an amount in respect of one of those dispositions equal to the amount, if any, by which the fair market value of the qualified property at the time of the disposition exceeds the corporation’s proceeds of disposition of the property, and
(g)the amount, if any, claimed for the immediately preceding taxation year under paragraph 219(1)(j) by the corporation,
exceeds the total of
(h)that proportion of the total of
(i)the total of the taxes payable under Parts I, I.3 and VI for the year by the corporation, determined without reference to subsection 219(1.1), and
(ii)the total of the income taxes payable to the government of a province for the year by the corporation, determined without reference to subsection 219(1.1),
that the corporation’s base amount is of the amount that would, if this Act were read without reference to subsection 219(1.1), be the corporation’s base amount,
(i)the total of all amounts each of which is the amount of interest or a penalty paid by the corporation in the year
(i)under this Act, or
(ii)on or in respect of an income tax payable by it to the government of a province under a law of the province relating to income tax,
to the extent that the interest or penalty was not deductible in computing its base amount for any taxation year,
(j)where the corporation was carrying on business in Canada at the end of the year, the amount claimed by the corporation for the year, not exceeding the amount prescribed to be its allowance for the year in respect of its investment in property in Canada, and
(k)[Repealed, 2003, c. 28, s. 17]
(l)where the corporation has at any time in the year disposed of property (in this paragraph and paragraph 219(1)(f) referred to as “qualified property”) used by it immediately before that time for the purpose of gaining or producing income from a business carried on by it in Canada to a Canadian corporation (in this paragraph referred to as the “purchaser corporation”) that was, immediately after the disposition, a qualified related corporation of the corporation for consideration that includes a share of the capital stock of the purchaser corporation, the total of all amounts each of which is an amount in respect of a disposition in the year of a qualified property equal to the amount, if any, by which
(i)the fair market value of the qualified property at the time of the disposition
exceeds the total of
(ii)the amount, if any, by which the paid-up capital in respect of the issued and outstanding shares of the capital stock of the purchaser corporation increased because of the disposition, and
(iii)the fair market value, at the time of receipt, of the consideration (other than shares) given by the purchaser corporation for the qualified property.
Marginal note:Excluded gains
(1.1)For the purposes of subsection (1), the definitiontaxable Canadian propertyin subsection 248(1) shall be read without reference to paragraphs (a) and (c) to (e) of that definition and as if the only options, interests or rights referred to in paragraph (f) of that definition were those in respect of property described in paragraph (b) of that definition.
Marginal note:Exempt corporations
(2)No tax is payable under this Part for a taxation year by a corporation that was, throughout the year,
(a)[Repealed, 2001, c. 17, s. 177]
(b)a corporation whose principal business was
(i)the transportation of persons or goods,
(ii)communications, or
(iii)mining iron ore in Canada; or
(c)a corporation exempt from tax under section 149.
Marginal note:Provisions applicable to Part
(3)Sections 150 to 152, 154, 158, 159 and 161 to 167 and Division J of Part I are applicable to this Part with such modifications as the circumstances require.
Marginal note:Non-resident insurers
(4)No tax is payable under subsection 219(1) for a taxation year by a non-resident insurer, but where it elects, in prescribed manner and within the prescribed time, to deduct, in computing its Canadian investment fund as of the end of the immediately following taxation year, an amount not greater than the amount, if any, by which
(a)the amount, if any, by which the total of
(i)the insurer’s surplus funds derived from operations as of the end of the year, and
(i.1)where, in any particular taxation year that began before the end of the year, the insurer transferred to a taxable Canadian corporation with which it did not deal at arm’s length any designated insurance property of the insurer for the particular year, and
(A)the property was transferred before December 16, 1987 and subsection 138(11.5) of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, applied in respect of the transfer, or
(B)the property was transferred before November 22, 1985 and subsection 85(1) of that Act applied in respect of the transfer,
the amount, if any, by which
(C)the total of the fair market value, at the time of the transfer, of all such property
exceeds
(D)the total of the insurer’s proceeds of disposition of all such property,
exceeds the total of
(ii)each amount on which the insurer has paid tax under this Part for a previous taxation year,
(iii)the amount, if any, by which the insurer’s accumulated 1968 deficit exceeds the amount of the insurer’s maximum tax actuarial reserves for its 1968 taxation year for its life insurance policies in Canada,
(iv)the insurer’s loss, if any, for each of its 5 consecutive taxation years ending with its 1968 taxation year, from all insurance businesses (other than its life insurance business) carried on by it in Canada (computed without reference to section 30 of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, as it read in its application to those years), except to the extent that any such loss was deductible in computing its taxable income for any of its taxation years ending before 1969, and
(v)the total of all amounts in respect of which the insurer has filed an election under subsection 219(5.2) for a previous taxation year in accordance with that subsection,
exceeds
(b)the amount of the insurer’s attributed surplus for the year,
the insurer shall, on or before the day on or before which it is required to file a return under Part I for the year, pay a tax for the year equal to 25% of the amount, if any, by which the amount it has so elected to deduct exceeds the amount in respect of which it filed an election under subsection 219(5.2) for the year in accordance with that subsection.
Marginal note:Additional tax on insurer
(5.1)Where a non-resident insurer ceases in a taxation year to carry on all or substantially all of an insurance business in Canada, it shall, on or before its filing-due date for the year, pay a tax for the year equal to 25% of the amount, if any, by which
(a)that portion of the amount determined under paragraph 219(4)(a) for the year in respect of the insurer that can reasonably be attributed to the business, including the disposition by it of property that was its designated insurance property in respect of the business for the year in which the disposition occurred,
exceeds
(b)the amount the insurer and a qualified related corporation of the insurer jointly elect in accordance with subsection 219(5.2) for the year in respect of the business.
Marginal note:Election by non-resident insurer
(5.2)Where
(a)a non-resident insurer has ceased to carry on all or substantially all of an insurance business in Canada in a taxation year, and
(b)the insurer has transferred the business to a qualified related corporation of the insurer and the insurer and the corporation have elected to have subsection 138(11.5) apply in respect of the transfer,
the insurer and the corporation may elect, in prescribed manner and within prescribed time, to reduce the amount in respect of which the insurer would otherwise be liable to pay tax under subsection 219(5.1) by an amount not exceeding the lesser of
(c)the amount determined under paragraph 219(5.1)(a) in respect of the insurer in respect of the business, and
(d)the total of the paid-up capital of the shares of the capital stock of the corporation received by the insurer as consideration for the transfer of the business and any contributed surplus arising on the issue of those shares.
Marginal note:Deemed payment of dividend
(5.3)Where, at any time in a taxation year,
(a)a qualified related corporation of a non-resident insurer ceases to be a qualified related corporation of that insurer, or
(b)the tax deferred account of a qualified related corporation of a non-resident insurer exceeds the total of the paid-up capital in respect of all the shares of the capital stock of the corporation and its contributed surplus,
the corporation shall be deemed to have paid, immediately before that time, a dividend to the insurer in an amount equal to
(c)where paragraph 219(5.3)(a) is applicable, the balance of the tax deferred account of the corporation at that time, or
(d)where paragraph 219(5.3)(b) is applicable, the amount of the excess referred to in that paragraph at that time.
Marginal note:Definitions
(7)In this Part,
accumulated 1968 deficitof a life insurer means such amount as can be established by the insurer to be its deficit as of the end of its 1968 taxation year from carrying on its life insurance business in Canada on the assumption that the amounts of its assets and liabilities (including reserves of any kind)
(a)as of the end of any taxation year before its 1968 taxation year, were the amounts thereof determined for the purposes of the Superintendent of Insurance for Canada or other similar officer, and
(b)as of the end of its 1968 taxation year, were
(i)in respect of depreciable property, the capital cost thereof as of the first day of its 1969 taxation year,
(ii)in respect of policy reserves, the insurer’s maximum tax actuarial reserves for its 1968 taxation year for life insurance policies issued by it in the course of carrying on its life insurance business in Canada, and
(iii)in respect of other assets and liabilities, the amounts thereof determined as of the end of that year for the purpose of computing its income for its 1969 taxation year; (déficit accumulé pour 1968)
attributed surplusof an insurer for a taxation year has the meaning assigned by regulation; (surplus attribué)
Canadian investment fundhas the meaning prescribed for that expression; (fonds de placement canadien)
maximum tax actuarial reserveshas the meaning assigned by subsection 138(12); (provision actuarielle maximale aux fins d’impôt)
surplus funds derived from operationshas the meaning assigned by subsection 138(12); (fonds excédentaire résultant de l’activité)
tax deferred accountof a qualified related corporation at any time means the amount determined by the formula
A - B
where
Meaning ofqualified related corporation
(8)For the purposes of this Part, a corporation is aqualified related corporationof a particular corporation if it is resident in Canada and all of the issued and outstanding shares (other than directors’ qualifying shares) of its capital stock (having full voting rights under all circumstances) are owned by
(a)the particular corporation,
(b)a subsidiary wholly-owned corporation of the particular corporation,
(c)a corporation of which the particular corporation is a subsidiary wholly-owned corporation,
(d)a subsidiary wholly-owned corporation of a corporation of which the particular corporation is also a subsidiary wholly-owned corporation, or
(e)any combination of corporations each of which is a corporation described in paragraph 219(8)(a), 219(8)(b), 219(8)(c) or 219(8)(d),
and, for the purpose of this subsection, a subsidiary wholly-owned corporation of a particular corporation includes any subsidiary wholly-owned corporation of a corporation that is a subsidiary wholly-owned corporation of the particular corporation.
Marginal note:Corporate emigration
219.1(1)If a taxation year of a corporation (in this subsection and subsection (2) referred to as the “emigrating corporation”) is deemed by paragraph 128.1(4)(a) to have ended at any time, the emigrating corporation shall, on or before its filing-due date for the year, pay a tax under this Part for the year equal to the amount determined by the formula
25% × (A – B)
where
(a)the paid-up capital in respect of all the shares of the capital stock of the emigrating corporation immediately before that time,
(b)all amounts (other than amounts payable by the emigrating corporation in respect of dividends and amounts payable under this section) each of which is a debt owing by the emigrating corporation, or an obligation of the emigrating corporation to pay an amount, that is outstanding at that time, and
(c)if a tax was payable by the emigrating corporation under subsection 219(1) or this section for a preceding taxation year that began before 1996 and after the emigrating corporation last became resident in Canada, four times the total of all amounts that would, but for sections 219.2 and 219.3 and any tax treaty, have been so payable.
Marginal note:Foreign affiliate dumping — emigrating corporation
(2)The paid-up capital referred to in paragraph (a) of the description of B in subsection (1) is deemed to be nil if
(a)one or more shares of the emigrating corporation are, at the time the emigrating corporation ceases to be resident in Canada, owned by another corporation resident in Canada;
(b)the other corporation is controlled, at that time, by a non-resident person or a group of non-resident persons not dealing with each other at arm’s length; and
(c)the emigrating corporation is, immediately after that time — or becomes, as part of a transaction or event or series of transactions or events that includes the emigrating corporation ceasing to be resident in Canada — a foreign affiliate of the other corporation.
Marginal note:Application of subsection (4)
(3)Subsection (4) applies if
(a)a corporation ceases to be resident in Canada at any time (referred to in subsection (4) as the “emigration time”);
(b)an amount is required by paragraph 212.3(2)(b) or subsection 212.3(7) to be deducted in computing the paid-up capital in respect of a class of shares of the capital stock of the corporation because of an investment in a subject corporation made by a CRIC that is described in any of paragraphs 212.3(10)(a) to (f);
(c)subsection 212.3(9) has not applied in respect of any reduction of the paid-up capital in respect of a class of shares of the capital stock of the corporation or a specified predecessor corporation (as defined in subsection 95(1)) of the corporation; and
(d)subsection (2) does not apply in respect of the cessation of residence.
Marginal note:Paid-up capital reinstatement
(4)If this subsection applies, the paid-up capital referred to in paragraph (a) of the description of B in subsection (1) is to be increased, immediately before the time that is immediately before the emigration time, by the lesser of
(a)the total of all amounts each of which is an amount by which the paid-up capital of a class of shares of the capital stock of the corporation was required by paragraph 212.3(2)(b) or subsection 212.3(7) to be reduced in respect of an investment in a subject corporation made by the CRIC that is described in any of paragraphs 212.3(10)(a) to (f); and
(b)the total of all amounts each of which is
(i)the fair market value of a share of the capital stock of a subject corporation that is owned by the corporation immediately before the emigration time,
(ii)the portion of the fair market value of a particular share of the capital stock of a foreign affiliate of the corporation owned by the corporation immediately before the emigration time that may reasonably be considered to relate to a share of the capital stock of a subject corporation that was previously owned by the corporation and for which the particular share was substituted, or
(iii)the fair market value of a debt obligation, other than a pertinent loan or indebtedness (as defined in subsection 212.3(11)), of a subject corporation that is owned by the corporation immediately before the emigration time.
Marginal note:Assigned meanings from section 212.3
(5)For the purposes of subsections (3) and (4),CRICandsubject corporationhave the meaning assigned to those terms by subsection 212.3(1) andinvestmenthas the same meaning as in subsection 212.3(10).
Marginal note:Limitation on rate of branch tax
219.2Notwithstanding any other provision of this Act, where an agreement or convention between the Government of Canada and the government of another country that has the force of law in Canada
(a)does not limit the rate of tax under this Part on corporations resident in that other country, and
(b)provides that, where a dividend is paid by a corporation resident in Canada to a corporation resident in that other country that owns all of the shares of the capital stock of the corporation resident in Canada, the rate of tax imposed on the dividend shall not exceed a specified rate,
any reference in section 219 to a rate of tax shall, in respect of a taxation year of a corporation to which that agreement or convention applies on the last day of that year, be read as a reference to the specified rate.
Marginal note:Effect of tax treaty
219.3For the purpose of section 219.1, where an agreement or convention between the Government of Canada and the government of another country that has the force of law in Canada provides that the rate of tax imposed on a dividend paid by a corporation resident in Canada to a corporation resident in the other country that owns all of the shares of the capital stock of the corporation resident in Canada shall not exceed a specified rate, the reference in section 219.1 to “25%” shall, in respect of a corporation that ceased to be resident in Canada and to which the agreement or convention applies at the beginning of its first taxation year after its taxation year that is deemed by paragraph 128.1(4)(a) to have ended, be read as a reference to the specified rate unless it can reasonably be concluded that one of the main reasons that the corporation became resident in the other country was to reduce the amount of tax payable under this Part or Part XIII.
Marginal note:Minister’s duty
220(1)The Minister shall administer and enforce this Act and the Commissioner of Revenue may exercise all the powers and perform the duties of the Minister under this Act.
Marginal note:Officers, clerks and employees
(2)Such officers, clerks and employees as are necessary to administer and enforce this Act shall be appointed or employed in the manner authorized by law.
Marginal note:Delegation
(2.01)The Minister may authorize an officer or a class of officers to exercise powers or perform duties of the Minister under this Act.
Marginal note:Waiver of filing of documents
(2.1)Where any provision of this Act or a regulation requires a person to file a prescribed form, receipt or other document, or to provide prescribed information, the Minister may waive the requirement, but the person shall provide the document or information at the Minister’s request.
Marginal note:Exception
(2.2)Subsection (2.1) does not apply in respect of a prescribed form, receipt or document, or prescribed information, that is filed with the Minister on or after the day specified, in respect of the form, receipt, document or information, in subsection 37(11) or paragraph (m) of the definitioninvestment tax creditin subsection 127(9).
Marginal note:Extensions for returns
(3)The Minister may at any time extend the time for making a return under this Act.
Marginal note:Waiver of penalty or interest
(3.1)The Minister may, on or before the day that is ten calendar years after the end of a taxation year of a taxpayer (or in the case of a partnership, a fiscal period of the partnership) or on application by the taxpayer or partnership on or before that day, waive or cancel all or any portion of any penalty or interest otherwise payable under this Act by the taxpayer or partnership in respect of that taxation year or fiscal period, and notwithstanding subsections 152(4) to (5), any assessment of the interest and penalties payable by the taxpayer or partnership shall be made that is necessary to take into account the cancellation of the penalty or interest.
Marginal note:Late, amended or revoked elections
(3.2)The Minister may extend the time for making an election or grant permission to amend or revoke an election if
(a)the election was otherwise required to be made by a taxpayer or by a partnership, under a prescribed provision, on or before a day in a taxation year of the taxpayer (or in the case of a partnership, a fiscal period of the partnership); and
(b)the taxpayer or the partnership applies, on or before the day that is ten calendar years after the end of the taxation year or the fiscal period, to the Minister for that extension or permission.
Marginal note:Joint election — pension income split
(3.201)On application by a taxpayer, the Minister may extend the time for making an election, or grant permission to amend or revoke an election, under section 60.03 if
(a)the application is made on or before the day that is three calendar years after the taxpayer’s filing-due date for the taxation year to which the election applies; and
(b)the taxpayer is resident in Canada
(i)if the taxpayer is deceased at the time of the application, at the time that is immediately before the taxpayer’s death, or
(ii)in any other case, at the time of the application.
Marginal note:Designations and allocations
(3.21)For the purpose of subsection (3.2),
(a)a designation in any form prescribed for the purpose of paragraph 80(2)(i) or any of subsections 80(5) to (11) or 80.03(7) is deemed to be an election under a prescribed provision of this Act;
(a.1)a designation is deemed to be an election under a prescribed provision of this Act if the designation is made under the definitionprincipal residencein section 54; and
(b)a designation or allocation under subsection 132.11(6) is deemed to be an election under a prescribed provision of this Act.
Marginal note:Date of late election, amended election or revocation
(3.3)Where, under subsection 220(3.2), the Minister has extended the time for making an election or granted permission to amend or revoke an election,
(a)the election or the amended election, as the case may be, shall be deemed to have been made on the day on or before which the election was otherwise required to be made and in the manner in which the election was otherwise required to be made, and, in the case of an amendment to an election, that election shall be deemed, otherwise than for the purposes of this section, never to have been made; and
(b)the election that was revoked shall be deemed, otherwise than for the purposes of this section, never to have been made.
Marginal note:Assessments
(3.4)Notwithstanding subsections 152(4), 152(4.01), 152(4.1) and 152(5), such assessment of the tax, interest and penalties payable by each taxpayer in respect of any taxation year that began before the day an application is made under subsection 220(3.2) to the Minister shall be made as is necessary to take into account the election, the amended election or the revocation, as the case may be, referred to in subsection 220(3.3).
Marginal note:Penalty for late filed, amended or revoked elections
(3.5)Where, on application by a taxpayer or a partnership, the Minister extends the time for making an election or grants permission to amend or revoke an election (other than an extension or permission under subsection (3.201)), the taxpayer or the partnership, as the case may be, is liable to a penalty equal to the lesser of
(a)$8,000, and
(b)the product obtained when $100 is multiplied by the number of complete months from the day on or before which the election was required to be made to the day the application was made in a form satisfactory to the Minister.
Marginal note:Unpaid balance of penalty
(3.6)The Minister shall, with all due dispatch, examine each election, amended election and revoked election referred to in subsection 220(3.3), assess any penalty payable and send a notice of assessment to the taxpayer or the partnership, as the case may be, and the taxpayer or the partnership, as the case may be, shall pay forthwith to the Receiver General the amount, if any, by which the penalty so assessed exceeds the total of all amounts previously paid on account of that penalty.
Marginal note:Idem
(3.7)The provisions of Divisions I and J of Part I apply, with such modifications as the circumstances require, to an assessment made under this section as though it had been made under section 152.
Marginal note:Dishonoured instruments
(3.8)For the purposes of this Act and section 155.1 of theFinancial Administration Act
(a)any charge that becomes payable at any time by a person under theFinancial Administration Actin respect of an instrument tendered in payment or settlement of an amount that is payable or remittable under this Act is deemed to be an amount that becomes payable or remittable by the person at that time under this Act;
(b)sections 152, 158 and 159, subsections 161(1), (2) and (11), sections 162 to 167 and Division J of this Part are applicable to the amount deemed to become payable or remittable by this subsection with any modifications that the circumstances require;
(c)Part II of theInterest and Administrative Charges Regulationsdoes not apply to the charge; and
(d)any debt under subsection 155.1(3) of theFinancial Administration Actin 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.
Marginal note:Security
(4)The Minister may, if the Minister considers it advisable in a particular case, accept security for payment of any amount that is or may become payable under this Act.
Marginal note:Idem
(4.1)Where a taxpayer has objected to or appealed from an assessment under this Act, the Minister shall, while the objection or appeal is outstanding, accept adequate security furnished by or on behalf of the taxpayer for payment of the amount in controversy except to the extent that the Minister may collect the amount because of subsection 225.1(7).
Marginal note:Surrender of excess security
(4.2)Where at any time a taxpayer requests in writing that the Minister surrender any security accepted by the Minister under subsection 220(4) or 220(4.1), the Minister shall surrender the security to the extent that the value of the security exceeds the total of payable under this Act by the taxpayer at that time.
Marginal note:Security furnished by a member institution of a deposit insurance corporation
(4.3)The Minister shall accept adequate security furnished by or on behalf of a taxpayer that is a member institution in relation to a deposit insurance corporation (within the meaning assigned by subsection 137.1(5)) for payment of
(a)the tax payable under this Act by the taxpayer for a taxation year, to the extent that the amount of that tax exceeds the amount that that tax would be if no amount that the taxpayer is obliged to repay to the corporation were included under paragraph 137.1(10)(a) or 137.1(10)(b) in computing the taxpayer’s income for the year or a preceding taxation year, and
(b)interest payable under this Act by the taxpayer on the amount determined under paragraph 220(4.3)(a),
until the earlier of
(c)the day on which the taxpayer’s obligation referred to in paragraph 220(4.3)(a) to repay the amount to the corporation is settled or extinguished, and
(d)the day that is 10 years after the end of the year.
Marginal note:Additional security
(4.4)The adequacy of security furnished by or on behalf of a taxpayer under subsection 220(4.3) shall be determined by the Minister and the Minister may require additional security to be furnished from time to time by or on behalf of the taxpayer where the Minister determines that the security that has been furnished is no longer adequate.
Marginal note:Security for departure tax
(4.5)If an individual who is deemed by subsection 128.1(4) to have disposed of a property (other than a right to a benefit under, or an interest in a trust governed by, an employee benefit plan) at any particular time in a taxation year (in this section referred to as the individual’s “emigration year”) elects, in prescribed manner on or before the individual’s balance-due day for the emigration year, that this subsection and subsections (4.51) to (4.54) apply in respect of the emigration year,
(a)the Minister shall, until the individual’s balance-due day for a particular taxation year that begins after the particular time, accept adequate security furnished by or on behalf of the individual on or before the individual’s balance-due day for the emigration year for the lesser of
(i)the amount determined by the formula
A - B - [((A - B)/A) × C]
where
(ii)if the particular year immediately follows the emigration year, the amount determined under subparagraph (i), and in any other case, the amount determined under this paragraph in respect of the individual for the taxation year that immediately precedes the particular year, and
(b)except for the purposes of subsections 161(2), (4) and (4.01),
(i)interest under this Act for any period that ends on the individual’s balance-due day for the particular year and throughout which security is accepted by the Minister, and
(ii)any penalty under this Act computed with reference to an individual’s tax payable for the year that was, without reference to this paragraph, unpaid
shall be computed as if the particular amount for which adequate security has been accepted under this subsection were an amount paid by the individual on account of the particular amount.
Marginal note:Deemed security
(4.51)If an individual (other than a trust) elects under subsection (4.5) that that subsection apply in respect of a taxation year, for the purposes of this subsection and subsections (4.5) and (4.52) to (4.54), the Minister is deemed to have accepted at any time after the election is made adequate security for a total amount of taxes payable under Parts I and I.1 by the individual for the emigration year equal to the lesser of
(a)the total amount of those taxes that would be payable for the year by a trust resident in Canada (other than a graduated rate estate or a qualified disability trust as defined in subsection 122(3)) the taxable income of which for the year is $50,000, and
(b)the greatest amount for which the Minister is required to accept security furnished by or on behalf of the individual under subsection (4.5) at that time in respect of the emigration year,
and that security is deemed to have been furnished by the individual before the individual’s balance-due day for the emigration year.
Marginal note:Limit
(4.52)Notwithstanding subsections (4.5) and (4.51), the Minister is deemed at any time not to have accepted security under subsection (4.5) in respect of an individual’s emigration year for any amount greater than the amount, if any, by which
(a)the total amount of taxes that would be payable by the individual under Parts I and I.1 for the year if the exclusion or deduction of each amount referred to in paragraph 161(7)(a), in respect of which the day determined under paragraph 161(7)(b) is after that time, were not taken into account
exceeds
(b)the total amount of taxes that would be determined under paragraph (a) if this Act were read without reference to subsection 128.1(4).
Marginal note:Inadequate security
(4.53)Subject to subsection (4.7), if it is determined at any particular time that security accepted by the Minister under subsection (4.5) is not adequate to secure the particular amount for which it was furnished by or on behalf of an individual,
(a)subject to a subsequent application of this subsection, the security shall be considered after the particular time to secure only the amount for which it is adequate security at the particular time;
(b)the Minister shall notify the individual in writing of the determination and shall accept adequate security, for all or any part of the particular amount, furnished by or on behalf of the individual within 90 days after the day of notification; and
(c)any security accepted in accordance with paragraph (b) is deemed to have been accepted by the Minister under subsection (4.5) on account of the particular amount at the particular time.
Marginal note:Extension of time
(4.54)If in the opinion of the Minister it would be just and equitable to do so, the Minister may at any time extend
(a)the time for making an election under subsection (4.5);
(b)the time for furnishing and accepting security under subsection (4.5); or
(c)the 90-day period for the acceptance of security under paragraph (4.53)(b).
Marginal note:Security for tax on distributions of taxable Canadian property to non-resident beneficiaries
(4.6)Where
(a)solely because of the application of subsection 107(5), paragraphs 107(2)(a) to (c) do not apply to a distribution by a trust in a particular taxation year (in this section referred to as the trust’s “distribution year”) of taxable Canadian property, and
(b)the trust elects, in prescribed manner on or before the trust’s balance-due day for the distribution year, that this subsection and subsections (4.61) to (4.63) apply in respect of the distribution year,
the following rules apply:
(c)the Minister shall, until the trust’s balance-due day for a subsequent taxation year, accept adequate security furnished by or on behalf of the trust on or before the trust’s balance-due day for the distribution year for the lesser of
(i)the amount determined by the formula
A - B - [((A - B)/A) × C]
where
(ii)where the subsequent year immediately follows the distribution year, the amount determined under subparagraph (i), and in any other case, the amount determined under this paragraph in respect of the trust for the taxation year that immediately precedes the subsequent year, and
(d)except for the purposes of subsections 161(2), (4) and (4.01),
(i)interest under this Act for any period that ends on the trust’s balance-due day for the subsequent year and throughout which security is accepted by the Minister, and
(ii)any penalty under this Act computed with reference to the trust’s tax payable for the year that was, without reference to this paragraph, unpaid
shall be computed as if the particular amount for which adequate security has been accepted under this subsection were an amount paid by the trust on account of the particular amount.
Marginal note:Limit
(4.61)Notwithstanding subsection (4.6), the Minister is deemed at any time not to have accepted security under that subsection in respect of a trust’s distribution year for any amount greater than the amount, if any, by which
(a)the total amount of taxes that would be payable by the trust under Parts I and I.1 for the year if the exclusion or deduction of each amount referred to in paragraph 161(7)(a), in respect of which the day determined under paragraph 161(7)(b) is after that time, were not taken into account
exceeds
(b)the total amount of taxes that would be determined under paragraph (a) if paragraphs 107(2)(a) to (c) had applied to each distribution by the trust in the year of property to which paragraph (1)(a) applies.
Marginal note:Inadequate security
(4.62)Subject to subsection (4.7), where it is determined at any particular time that security accepted by the Minister under subsection (4.6) is not adequate to secure the particular amount for which it was furnished by or on behalf of a trust,
(a)subject to a subsequent application of this subsection, the security shall be considered after the particular time to secure only the amount for which it is adequate security at the particular time;
(b)the Minister shall notify the trust in writing of the determination and shall accept adequate security, for all or any part of the particular amount, furnished by or on behalf of the trust within 90 days after the notification; and
(c)any security accepted in accordance with paragraph (b) is deemed to have been accepted by the Minister under subsection (4.6) on account of the particular amount at the particular time.
Marginal note:Extension of time
(4.63)Where in the opinion of the Minister it would be just and equitable to do so, the Minister may at any time extend
(a)the time for making an election under subsection (4.6);
(b)the time for furnishing and accepting security under subsection (4.6); or
(c)the 90-day period for the acceptance of the security under paragraph (4.62)(b).
Marginal note:Undue hardship
(4.7)If, in respect of any period of time, the Minister determines that an individual who has made an election under either subsection (4.5) or (4.6)
(a)cannot, without undue hardship, pay or reasonably arrange to have paid on the individual’s behalf, an amount of taxes to which security under that subsection would relate, and
(b)cannot, without undue hardship, provide or reasonably arrange to have provided on the individual’s behalf, adequate security under that subsection,
the Minister may, in respect of the election, accept for the period security different from, or of lesser value than, that which the Minister would otherwise accept under that subsection.
Marginal note:Limit
(4.71)In making a determination under subsection (4.7), the Minister shall ignore any transaction that is a disposition, lease, encumbrance, mortgage, hypothec, or other voluntary restriction by a person or partnership of the person’s or partnership’s rights in respect of a property, if the transaction can reasonably be considered to have been entered into for the purpose of influencing the determination.
Marginal note:Administration of oaths
(5)Any officer or servant employed in connection with the administration or enforcement of this Act, if designated by the Minister for the purpose, may, in the course of that employment, administer oaths and take and receive affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act or regulations made thereunder, and every officer or servant so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.
Marginal note:Assignment by corporation
(6)Notwithstanding section 67 of the Financial Administration Act and any other provision of a law of Canada or a province, a corporation may assign any amount payable to it under this Act.
Marginal note:Effect of assignment
(7)An assignment referred to in subsection 220(6) is not binding on Her Majesty in right of Canada and, without limiting the generality of the foregoing,
(a)the Minister is not required to pay to the assignee the assigned amount;
(b)the assignment does not create any liability of Her Majesty in right of Canada to the assignee; and
(c)the rights of the assignee are subject to all equitable and statutory rights of set-off in favour of Her Majesty in right of Canada.
Marginal note:Regulations
221(1)The Governor in Council may make regulations
(a)prescribing anything that, by this Act, is to be prescribed or is to be determined or regulated by regulation;
(b)prescribing the evidence required to establish facts relevant to assessments under this Act;
(c)to facilitate the assessment of tax where deductions or exemptions of a taxpayer have changed in a taxation year;
(d)requiring any class of persons to make information returns respecting any class of information required in connection with assessments under this Act;
(d.1)requiring any person or partnership to provide any information — including their name, address, business number, Social Insurance Number or trust account number — to any class of persons required to make an information return containing that information;
(d.2)requiring any class of persons to make information available to the public for the purpose of making information returns respecting any class of information required in connection with assessments under this Act;
(e)requiring a person who is, by a regulation made under paragraph 221(1)(d), required to make an information return to supply a copy of the information return or of a prescribed part thereof to the person to whom the information return or part thereof relates;
(f)[Repealed, 1998, c. 19, s. 222(2)]
(g)providing for the retention by way of deduction or set-off of the amount of a taxpayer’s income tax or other indebtedness under this Act out of any amount or amounts that may be or become payable by Her Majesty to the taxpayer in respect of salary or wages;
(h)defining the classes of persons who may be regarded as dependent for the purposes of this Act;
(i)defining the classes of non-resident persons who may be regarded for the purposes of this Act
(i)as a spouse or common-law partner supported by a taxpayer, or
(ii)as a person dependent or wholly dependent on a taxpayer for support,
and specifying the evidence required to establish that a person belongs to any such class; and
(j)generally to carry out the purposes and provisions of this Act.
Marginal note:Effect
(2)A regulation made under this Act shall have effect from the date it is published in theCanada Gazetteor at such time thereafter as may be specified in the regulation unless the regulation provides otherwise and it
(a)has a relieving effect only;
(b)corrects an ambiguous or deficient enactment that was not in accordance with the objects of this Act or theIncome Tax Regulations;
(c)is consequential on an amendment to this Act that is applicable before the date the regulation is published in theCanada Gazette; or
(d)gives effect to a budgetary or other public announcement, in which case the regulation shall not, except where paragraph 221(2)(a), 221(2)(b) or 221(2)(c) applies, have effect
(i)before the date on which the announcement was made, in the case of a deduction or withholding from an amount paid or credited, and
(ii)before the taxation year in which the announcement is made, in any other case.
Marginal note:Regulations binding Crown
(3)Regulations made under paragraph 221(1)(d) or 221(1)(e) are binding on Her Majesty in right of Canada or a province.
Marginal note:Incorporation by reference
(4)A regulation made under this Act may incorporate by reference material as amended from time to time.
Marginal note:Providing information returns in electronic format
221.01A person may provide an information return electronically under subsection 209(5) of theIncome Tax Regulationsif the criteria specified by the Minister are met.
Marginal note:Application of interest
221.1For greater certainty, where an amendment to this Act or an amendment or enactment that relates to this Act applies to or in respect of any transaction, event or time, or any taxation year, fiscal period or other period of time or part thereof (in this section referred to as the “application time”) occurring, or that is, before the day on which the amendment or enactment is assented to or promulgated, for the purposes of the provisions of this Act that provide for payment of, or liability to, any interest, the amendment or enactment shall, unless a contrary intention is evident, be deemed to have come into force at the beginning of the last taxation year beginning before the application time.
Marginal note:Re-appropriation of amounts
221.2(1)Where a particular amount was appropriated to an amount (in this section referred to as the “debt”) that is or may become payable by a person under any enactment referred to in paragraphs 223(1)(a) to 223(1)(d), the Minister may, on application by the person, appropriate the particular amount, or a part thereof, to another amount that is or may become payable under any such enactment and, for the purposes of any such enactment,
(a)the later appropriation shall be deemed to have been made at the time of the earlier appropriation;
(b)the earlier appropriation shall be deemed not to have been made to the extent of the later appropriation; and
(c)the particular amount shall be deemed not to have been paid on account of the debt to the extent of the later appropriation.
Marginal note:Re-appropriation of amounts
(2)If a particular amount was appropriated to an amount (in this section referred to as the “debt”) that is or may become payable by a person under this Act, theExcise Tax Act, theAir Travellers Security Charge Act, theExcise Act, 2001, theUnderused Housing Tax Actor theSelect Luxury Items Tax Act, the Minister may, on application by the person, appropriate the particular amount, or a part of it, to another amount that is or may become payable under any of those Acts and, for the purposes of any of those Acts,
(a)the later appropriation is deemed to have been made at the time of the earlier appropriation;
(b)the earlier appropriation is deemed not to have been made to the extent of the later appropriation; and
(c)the particular amount is deemed not to have been paid on account of the debt to the extent of the later appropriation.
Marginal note:Definitions
222(1)The following definitions apply in this section.
actionmeans an action to collect a tax debt of a taxpayer and includes a proceeding in a court and anything done by the Minister under subsection 129(2), 131(3), 132(2) or 164(2), section 203 or any provision of this Part. (action)
tax debtmeans any amount payable by a taxpayer under this Act. (dette fiscale)
Marginal note:Debts to Her Majesty
(2)A tax debt is a debt due to Her Majesty and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.
Marginal note:No actions after limitation period
(3)The Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt.
Marginal note:Limitation period
(4)The limitation period for the collection of a tax debt of a taxpayer
(a)begins
(i)if a notice of assessment, or a notice referred to in subsection 226(1), in respect of the tax debt is sent to or served on the taxpayer, after March 3, 2004, on the day that is 90 days after the day on which the last one of those notices is sent or served, and
(ii)if subparagraph (i) does not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; and
(b)ends, subject to subsection (8), on the day that is 10 years after the day on which it begins.
Marginal note:Limitation period restarted
(5)The limitation period described in subsection (4) for the collection of a tax debt of a taxpayer restarts (and ends, subject to subsection (8), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which
(a)the taxpayer acknowledges the tax debt in accordance with subsection (6);
(b)the Minister commences an action to collect the tax debt; or
(c)the Minister, under subsection 159(3) or 160(2) or paragraph 227(10)(a), assesses any person in respect of the tax debt.
Marginal note:Acknowledgement of tax debts
(6)A taxpayer acknowledges a tax debt if the taxpayer
(a)promises, in writing, to pay the tax debt;
(b)makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or
(c)makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt.
Marginal note:Agent or legal representative
(7)For the purposes of this section, an acknowledgement made by a taxpayer’s agent or legal representative has the same effect as if it were made by the taxpayer.
Marginal note:Extension of limitation period
(8)In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case:
(a)the Minister may not, because of any of subsections 225.1(2) to (5), take any of the actions described in subsection 225.1(1) in respect of the tax debt;
(b)the Minister has accepted and holds security in lieu of payment of the tax debt;
(c)if the taxpayer was resident in Canada on the applicable date described in paragraph (4)(a) in respect of the tax debt, the taxpayer is non-resident; or
(d)an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of theBankruptcy and Insolvency Act, of theCompanies’ Creditors Arrangement Actor of theFarm Debt Mediation Act.
Marginal note:Bar to claims
(9)Notwithstanding any law of Canada or a province, Her Majesty is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004.
Marginal note:Orders after March 3, 2004 and before effect
(10)Notwithstanding any order or judgment made after March 3, 2004 that declares a tax debt not to be payable by a taxpayer, or that orders the Minister to reimburse to a taxpayer a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable on March 4, 2004.
Marginal note:Court costs
222.1Where an amount is payable by a person to Her Majesty because of an order, judgment or award of a court in respect of the costs of litigation relating to a matter to which this Act applies, subsections 220(4) and 220(4.2) and sections 223, 224 to 225 and 226 apply to the amount as if the amount were a debt owing by the person to Her Majesty on account of tax payable by the person under this Act.
Definition ofamount payable
223(1)For the purposes of subsection 223(2), anamount payableby a person means any or all of
(a)an amount payable under this Act by the person;
(b)an amount payable under theEmployment Insurance Actby the person;
(b.1)an amount payable under theUnemployment Insurance Actby the person;
(c)an amount payable under theCanada Pension Planby the person; and
(d)an amount payable by the person under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act.
Marginal note:Certificates
(2)An amount payable by a person (in this section referred to as a “debtor”) that has not been paid or any part of an amount payable by the debtor that has not been paid may be certified by the Minister as an amount payable by the debtor.
Marginal note:Registration in court
(3)On production to the Federal Court, a certificate made under subsection 223(2) in respect of a debtor shall be registered in the Court and when so registered has the same effect, and all proceedings may be taken thereon, as if the certificate were a judgment obtained in the Court against the debtor for a debt in the amount certified plus interest thereon to the day of payment as provided by the statute or statutes referred to in subsection 223(1) under which the amount is payable and, for the purpose of any such proceedings, the certificate shall be deemed to be a judgment of the Court against the debtor for a debt due to Her Majesty, enforceable in the amount certified plus interest thereon to the day of payment as provided by that statute or statutes.
Marginal note:Costs
(4)All reasonable costs and charges incurred or paid in respect of the registration in the Court of a certificate made under subsection 223(2) or in respect of any proceedings taken to collect the amount certified are recoverable in like manner as if they had been included in the amount certified in the certificate when it was registered.
Marginal note:Charge on property
(5)A document issued by the Federal Court evidencing a certificate in respect of a debtor registered under subsection (3), a writ of that Court issued pursuant to the certificate or any notification of the document or writ (such document, writ or notification in this section referred to as a “memorial”) may be filed, registered or otherwise recorded for the purpose of creating a charge, lien or priority on, or a binding interest in, property in a province, or any interest in, or for civil law any right in, such property, held by the debtor in the same manner as a document evidencing
(a)a judgment of the superior court of the province against a person for a debt owing by the person, or
(b)an amount payable or required to be remitted by a person in the province in respect of a debt owing to Her Majesty in right of the province
may be filed, registered or otherwise recorded in accordance with or pursuant to the law of the province to create a charge, lien or priority on, or a binding interest in, the property or interest.
Marginal note:Creation of charge
(6)If a memorial has been filed, registered or otherwise recorded under subsection (5),
(a)a charge, lien or priority is created on, or a binding interest is created in, property in the province, or any interest in, or for civil law any right in, such property, held by the debtor, or
(b)such property, or interest or right in the property, is otherwise bound,
in the same manner and to the same extent as if the memorial were a document evidencing a judgment referred to in paragraph (5)(a) or an amount referred to in paragraph (5)(b), and the charge, lien, priority or binding interest created shall be subordinate to any charge, lien, priority or binding interest in respect of which all steps necessary to make it effective against other creditors were taken before the time the memorial was filed, registered or otherwise recorded.
Marginal note:Proceedings in respect of memorial
(7)If a memorial is filed, registered or otherwise recorded in a province under subsection 223(5), proceedings may be taken in the province in respect of the memorial, including proceedings
(a)to enforce payment of the amount evidenced by the memorial, interest on the amount and all costs and charges paid or incurred in respect of
(i)the filing, registration or other recording of the memorial, and
(ii)proceedings taken to collect the amount,
(b)to renew or otherwise prolong the effectiveness of the filing, registration or other recording of the memorial,
(c)to cancel or withdraw the memorial wholly or in respect of any of the property, or interests or rights, affected by the memorial, or
(d)to postpone the effectiveness of the filing, registration or other recording of the memorial in favour of any right, charge, lien or priority that has been or is intended to be filed, registered or otherwise recorded in respect of any property, or interest or right, affected by the memorial,
in the same manner and to the same extent as if the memorial were a document evidencing a judgment referred to in paragraph 223(5)(a) or an amount referred to in paragraph 223(5)(b), except that if in any such proceeding or as a condition precedent to any such proceeding any order, consent or ruling is required under the law of the province to be made or given by the superior court of the province or a judge or official of the court, a like order, consent or ruling may be made or given by the Federal Court or a judge or official of the Federal Court and, when so made or given, has the same effect for the purposes of the proceeding as if it were made or given by the superior court of the province or a judge or official of the court.
Marginal note:Presentation of documents
(8)If
(a)a memorial is presented for filing, registration or other recording under subsection (5) or a document relating to the memorial is presented for filing, registration or other recording for the purpose of any proceeding described in subsection (7) to any official in the land registry system, personal property or movable property registry system, or other registry system, of a province, it shall be accepted for filing, registration or other recording, or
(b)access is sought to any person, place or thing in a province to make the filing, registration or other recording, the access shall be granted
in the same manner and to the same extent as if the memorial or document relating to the memorial were a document evidencing a judgment referred to in paragraph 223(5)(a) or an amount referred to in paragraph 223(5)(b) for the purpose of a like proceeding, as the case may be, except that, if the memorial or document is issued by the Federal Court or signed or certified by a judge or official of the Court, any affidavit, declaration or other evidence required under the law of the province to be provided with or to accompany the memorial or document in the proceedings is deemed to have been provided with or to have accompanied the memorial or document as so required.
Marginal note:Sale, etc.
(9)Notwithstanding any law of Canada or of a province, a sheriff or other person shall not, without the written consent of the Minister, sell or otherwise dispose of any property, or publish any notice or otherwise advertise in respect of any sale or other disposition of any property pursuant to any process issued or charge, lien, priority or binding interest created in any proceeding to collect an amount certified in a certificate made under subsection 223(2), interest on the amount and costs, but if that consent is subsequently given, any property that would have been affected by such a process, charge, lien, priority or binding interest if the Minister’s consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be, shall be bound, seized, attached, charged or otherwise affected as it would be if that consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be.
Marginal note:Completion of notices, etc.
(10)If information required to be set out by any sheriff or other person in a minute, notice or document required to be completed for any purpose cannot, by reason of subsection 223(9), be so set out, the sheriff or other person shall complete the minute, notice or document to the extent possible without that information and, when the consent of the Minister is given under that subsection, a further minute, notice or document setting out all the information shall be completed for the same purpose, and the sheriff or other person having complied with this subsection is deemed to have complied with the Act, regulation or rule requiring the information to be set out in the minute, notice or document.
Marginal note:Application for an order
(11)A sheriff or other person who is unable, by reason of subsection 223(9) or 223(10), to comply with any law or rule of court is bound by any order made by a judge of the Federal Court, on anex parteapplication by the Minister, for the purpose of giving effect to the proceeding, charge, lien, priority or binding interest.
Marginal note:Deemed security
(11.1)When a charge, lien, priority or binding interest created under subsection 223(6) by filing, registering or otherwise recording a memorial under subsection 223(5) is registered in accordance with subsection 87(1) of theBankruptcy and Insolvency Act, it is deemed
(a)to be a claim that is secured by a security and that, subject to subsection 87(2) of that Act, ranks as a secured claim under that Act; and
(b)to also be a claim referred to in paragraph 86(2)(a) of that Act.
Marginal note:Details in certificates and memorials
(12)Notwithstanding any law of Canada or of a province, in any certificate made under subsection 223(2) in respect of a debtor, in any memorial evidencing the certificate or in any writ or document issued for the purpose of collecting an amount certified, it is sufficient for all purposes
(a)to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate making up that total; and
(b)to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the rate prescribed under this Act applicable from time to time on amounts payable to the Receiver General without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any particular period of time.
Marginal note:Application of ss. 223(1) to (8) and (12)
223.1(1)Subsections 223(1) to 223(8) and 223(12) are applicable with respect to certificates made under section 223 or section 223 of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, after 1971 and documents evidencing such certificates that were issued by the Federal Court and that were filed, registered or otherwise recorded after 1977 under the laws of a province, except that, where any such certificate or document was the subject of an action pending in a court on February 10, 1988 or the subject of a court decision given on or before that date, section 223 shall be read, for the purposes of applying it with respect to that certificate or document, as section 223 of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, read at the time the certificate was registered or the document was issued, as the case may be.
Marginal note:Application of ss. 223(9) to (11)
(2)Subsections 223(9) to 223(11) are applicable with respect to certificates made under section 223, or section 223 of theIncome Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, after September 13, 1988.
Marginal note:Garnishment
224(1)Where the Minister has knowledge or suspects that a person is, or will be within one year, liable to make a payment to another person who is liable to make a payment under this Act (in this subsection and subsections 224(1.1) and 224(3) referred to as the “tax debtor”), the Minister may in writing require the person to pay forthwith, where the moneys are immediately payable, and in any other case as and when the moneys become payable, the moneys otherwise payable to the tax debtor in whole or in part to the Receiver General on account of the tax debtor’s liability under this Act.
Marginal note:Idem
(1.1)Without limiting the generality of subsection 224(1), where the Minister has knowledge or suspects that within 90 days
(a)a bank, credit union, trust company or other similar person (in this section referred to as the “institution”) will lend or advance moneys to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by, a tax debtor who is indebted to the institution and who has granted security in respect of the indebtedness, or
(b)a person, other than an institution, will lend or advance moneys to, or make a payment on behalf of, a tax debtor who the Minister knows or suspects
(i)is employed by, or is engaged in providing services or property to, that person or was or will be, within 90 days, so employed or engaged, or
(ii)where that person is a corporation, is not dealing at arm’s length with that person,
the Minister may in writing require the institution or person, as the case may be, to pay in whole or in part to the Receiver General on account of the tax debtor’s liability under this Act the moneys that would otherwise be so lent, advanced or paid and any moneys so paid to the Receiver General shall be deemed to have been lent, advanced or paid, as the case may be, to the tax debtor.
Marginal note:Garnishment
(1.2)Notwithstanding any other provision of this Act, theBankruptcy and Insolvency Act, any other enactment of Canada, any enactment of a province or any law, but subject to subsections 69(1) and 69.1(1) of theBankruptcy and Insolvency Actand section 11.09 of theCompanies’ Creditors Arrangement Act, if the Minister has knowledge or suspects that a particular person is, or will become within one year, liable to make a payment
(a)to another person (in this subsection referred to as the “tax debtor”) who is liable to pay an amount assessed under subsection 227(10.1) or a similar provision, or
(b)to a secured creditor who has a right to receive the payment that, but for a security interest in favour of the secured creditor, would be payable to the tax debtor,
the Minister may in writing require the particular person to pay forthwith, where the moneys are immediately payable, and in any other case as and when the moneys become payable, the moneys otherwise payable to the tax debtor or the secured creditor in whole or in part to the Receiver General on account of the tax debtor’s liability under subsection 227(10.1) or the similar provision, and on receipt of that requirement by the particular person, the amount of those moneys that is so required to be paid to the Receiver General shall, notwithstanding any security interest in those moneys, become the property of Her Majesty to the extent of that liability as assessed by the Minister and shall be paid to the Receiver General in priority to any such security interest.
Marginal note:Definitions
(1.3)In subsection 224(1.2),
secured creditormeans a person who has a security interest in the property of another person or who acts for or on behalf of that person with respect to the security interest and includes a trustee appointed under a trust deed relating to a security interest, a receiver or receiver-manager appointed by a secured creditor or by a court on the application of a secured creditor, a sequestrator or any other person performing a similar function; (créancier garanti)
security interestmeans any interest in, or for civil law any right in, property that secures payment or performance of an obligation and includes an interest, or for civil law a right, created by or arising out of a debenture, mortgage, hypothec, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatever, however or whenever arising, created, deemed to arise or otherwise provided for; (garantie)
similar provisionmeans a provision, similar to subsection 227(10.1), of any Act of a province that imposes a tax similar to the tax imposed under this Act, where the province has entered into an agreement with the Minister of Finance for the collection of the taxes payable to the province under that Act. (disposition semblable)
Marginal note:Garnishment
(1.4)Provisions of this Act that provide that a person who has been required to do so by the Minister must pay to the Receiver General an amount that would otherwise be lent, advanced or paid to a taxpayer who is liable to make a payment under this Act, or to that taxpayer’s secured creditor, apply to Her Majesty in right of Canada or a province.
Marginal note:Minister’s receipt discharges original liability
(2)The receipt of the Minister for moneys paid as required under this section is a good and sufficient discharge of the original liability to the extent of the payment.
Marginal note:Idem
(3)Where the Minister has, under this section, required a person to pay to the Receiver General on account of a liability under this Act of a tax debtor moneys otherwise payable by the person to the tax debtor as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the requirement applies to all such payments to be made by the person to the tax debtor until the liability under this Act is satisfied and operates to require payments to the Receiver General out of each such payment of such amount as is stipulated by the Minister in the requirement.
Marginal note:Failure to comply with s. (1), (1.2) or (3) requirement
(4)Every person who fails to comply with a requirement under subsection 224(1), 224(1.2) or 224(3) is liable to pay to Her Majesty an amount equal to the amount that the person was required under subsection 224(1), 224(1.2) or 224(3), as the case may be, to pay to the Receiver General.
Marginal note:Failure to comply with s. (1.1) requirement
(4.1)Every institution or person that fails to comply with a requirement under subsection 224(1.1) with respect to moneys to be lent, advanced or paid is liable to pay to Her Majesty an amount equal to the lesser of
(a)the total of moneys so lent, advanced or paid, and
(b)the amount that the institution or person was required under that subsection to pay to the Receiver General.
Marginal note:Service of garnishee
(5)Where a person carries on business under a name or style other than the person’s own name, notification to the person of a requirement under subsection 224(1), 224(1.1) or 224(1.2) may be addressed to the name or style under which the person carries on business and, in the case of personal service, shall be deemed to be validly served if it is left with an adult person employed at the place of business of the addressee.
Marginal note:Idem
(6)Where persons carry on business in partnership, notification to the persons of a requirement under subsection 224(1), 224(1.1) or 224(1.2) may be addressed to the partnership name and, in the case of personal service, shall be deemed to be validly served if it is served on one of the partners or left with an adult person employed at the place of business of the partnership.
Marginal note:Recovery by deduction or set-off
224.1Where a person is indebted to Her Majesty under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of the taxes payable to the province under that Act, the Minister may require the retention by way of deduction or set-off of such amount as the Minister may specify out of any amount that may be or become payable to the person by Her Majesty in right of Canada.
Marginal note:Acquisition of debtor’s property
224.2For the purpose of collecting debts owed by a person to Her Majesty under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act, the Minister may purchase or otherwise acquire any interest in, or for civil law any right in, the person’s property that the Minister is given a right to acquire in legal proceedings or under a court order or that is offered for sale or redemption and may dispose of any interest or right so acquired in such manner as the Minister considers reasonable.
Marginal note:Payment of moneys seized from tax debtor
224.3(1)Where the Minister has knowledge or suspects that a particular person is holding moneys that were seized by a police officer in the course of administering or enforcing the criminal law of Canada from another person (in this section referred to as the “tax debtor”) who is liable to make a payment under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act and that are restorable to the tax debtor, the Minister may in writing require the particular person to turn over the moneys otherwise restorable to the tax debtor in whole or in part to the Receiver General on account of the tax debtor’s liability under this Act or under the Act of the province, as the case may be.
Marginal note:Receipt of Minister
(2)The receipt of the Minister for moneys turned over as required by this section is a good and sufficient discharge of the requirement to restore the moneys to the tax debtor to the extent of the amount so turned over.
Marginal note:Seizure of goods, chattels or movable property
225(1)If a person has failed to pay an amount as required by this Act, the Minister may give 30 days notice to the person by registered mail addressed to the person’s latest known address of the Minister’s intention to direct that the person’s goods and chattels, or movable property, be seized and sold, and, if the person fails to make the payment before the expiration of the 30 days, the Minister may issue a certificate of the failure and direct that the person’s goods and chattels, or movable property, be seized.
Marginal note:Sale of seized property
(2)Property seized under this section shall be kept for 10 days at the cost and charges of the owner and, if the owner does not pay the amount owing together with the costs and charges within the 10 days, the property seized shall be sold by public auction.
Marginal note:Notice of sale
(3)Except in the case of perishable goods, notice of the sale setting out the time and place thereof, together with a general description of the property to be sold shall, a reasonable time before the goods are sold, be published at least once in one or more newspapers of general local circulation.
Marginal note:Surplus returned to owner
(4)Any surplus resulting from the sale after deduction of the amount owing and all costs and charges shall be paid or returned to the owner of the property seized.
Marginal note:Exemptions from seizure
(5)Goods and chattels, or movable property, of any person in default that would be exempt from seizure under a writ of execution issued out of a superior court of the province in which the seizure is made are exempt from seizure under this section.
Marginal note:Collection restrictions
225.1(1)If a taxpayer is liable for the payment of an amount assessed under this Act, other than an amount assessed under subsection 152(4.2), 169(3) or 220(3.1), the Minister shall not, until after the collection-commencement day in respect of the amount, do any of the following for the purpose of collecting the amount:
(a)commence legal proceedings in a court,
(b)certify the amount under section 223,
(c)require a person to make a payment under subsection 224(1),
(d)require an institution or a person to make a payment under subsection 224(1.1),
(e)[Repealed, 2006, c. 4, s. 166]
(f)require a person to turn over moneys under subsection 224.3(1), or
(g)give a notice, issue a certificate or make a direction under subsection 225(1).
Marginal note:Collection-commencement day
(1.1)The collection-commencement day in respect of an amount is
(a)in the case of an amount assessed under subsection 188(1.1) in respect of a notice of intention to revoke given under subsection 168(1) or any of subsections 149.1(2) to (4.1), one year after the day on which the notice was mailed;
(b)in the case of an amount assessed under section 188.1, one year after the day on which the notice of assessment was sent; and
(c)in any other case, 90 days after the day on which the notice of assessment was sent.
Marginal note:No action by Minister
(2)If a taxpayer has served a notice of objection under this Act to an assessment of an amount payable under this Act, the Minister shall not, for the purpose of collecting the amount in controversy, take any of the actions described in paragraphs (1)(a) to (g) until after the day that is 90 days after the day on which notice is sent to the taxpayer that the Minister has confirmed or varied the assessment.
Marginal note:Idem
(3)Where a taxpayer has appealed from an assessment of an amount payable under this Act to the Tax Court of Canada, the Minister shall not, for the purpose of collecting the amount in controversy, take any of the actions described in paragraphs (1)(a) to (g) before the day of mailing of a copy of the decision of the Court to the taxpayer or the day on which the taxpayer discontinues the appeal, whichever is the earlier.
Marginal note:Idem
(4)Where a taxpayer has agreed under subsection 173(1) that a question should be determined by the Tax Court of Canada, or where a taxpayer is served with a copy of an application made under subsection 174(1) to that Court for the determination of a question, the Minister shall not take any of the actions described in paragraphs (1)(a) to (g) for the purpose of collecting that part of an amount assessed, the liability for payment of which will be affected by the determination of the question, before the day on which the question is determined by the Court.
Marginal note:Idem
(5)Notwithstanding any other provision in this section, where a taxpayer has served a notice of objection under this Act to an assessment or has appealed to the Tax Court of Canada from an assessment and agrees in writing with the Minister to delay proceedings on the objection or appeal, as the case may be, until judgment has been given in another action before the Tax Court of Canada, the Federal Court of Appeal or the Supreme Court of Canada in which the issue is the same or substantially the same as that raised in the objection or appeal of the taxpayer, the Minister may take any of the actions described in paragraphs (1)(a) to (g) for the purpose of collecting the amount assessed, or a part thereof, determined in a manner consistent with the decision or judgment of the Court in the other action at any time after the Minister notifies the taxpayer in writing that
(a)the decision of the Tax Court of Canada in that action has been mailed to the Minister,
(b)judgment has been pronounced by the Federal Court of Appeal in that action, or
(c)judgment has been delivered by the Supreme Court of Canada in that action,
as the case may be.
Marginal note:Where ss. (1) to (4) do not apply
(6)Subsections (1) to (4) do not apply with respect to
(a)an amount payable under Part VIII;
(a.1)an amount payable under section 281;
(b)an amount required to be deducted or withheld, and required to be remitted or paid, under this Act or the Regulations;
(c)an amount of tax required to be paid under section 116 or a regulation made under subsection 215(4) but not so paid;
(d)the amount of any penalty payable for failure to remit or pay an amount referred to in paragraph (b) or (c) as and when required by this Act or a regulation made under this Act; and
(e)any interest payable under a provision of this Act on an amount referred to in this paragraph or any of paragraphs (a) to (d).
Marginal note:One-half collection
(7)If an amount has been assessed under this Act in respect of a corporation for a taxation year in which it was a large corporation, or in respect of a particular amount claimed under section 110.1 or 118.1 where the particular amount was claimed in respect of a tax shelter, then subsections (1) to (4) do not limit any action of the Minister to collect
(a)at any time on or before the particular day that is 90 days after the day of the sending of the notice of assessment, 1/2 of the amount so assessed; and
(b)at any time after the particular day, the amount, if any, by which the amount so assessed exceeds the total of
(i)all amounts collected before that time with respect to the assessment, and
(ii)1/2 of the amount in controversy at that time.
Marginal note:Definition oflarge corporation
(8)For the purposes of this section and section 235, a corporation (other than a corporation described in subsection 181.1(3)) is alarge corporationin a particular taxation year if the total of the taxable capital employed in Canada of the corporation, at the end of the particular taxation year, and the taxable capital employed in Canada of any other corporation, at the end of the other corporation’s last taxation year that ends at or before the end of the particular taxation year, if the other corporation is related (within the meaning assigned for the purposes of section 181.5) to the corporation at the end of the particular taxation year, exceeds $10 million, and, for the purpose of this subsection, a corporation formed as a result of the amalgamation or merger of 2 or more predecessor corporations is deemed to be the same corporation as, and a continuation of, each predecessor corporation.
Definition ofjudge
225.2(1)In this section,judgemeans a judge or a local judge of a superior court of a province or a judge of the Federal Court.
Marginal note:Authorization to proceed forthwith
(2)Notwithstanding section 225.1, where, onex parteapplication by the Minister, a judge is satisfied that there are reasonable grounds to believe that the collection of all or any part of an amount assessed in respect of a taxpayer would be jeopardized by a delay in the collection of that amount, the judge shall, on such terms as the judge considers reasonable in the circumstances, authorize the Minister to take forthwith any of the actions described in paragraphs 225.1(1)(a) to 225.1(1)(g) with respect to the amount.
Marginal note:Notice of assessment not sent
(3)An authorization under subsection 225.2(2) in respect of an amount assessed in respect of a taxpayer may be granted by a judge notwithstanding that a notice of assessment in respect of that amount has not been sent to the taxpayer at or before the time the application is made where the judge is satisfied that the receipt of the notice of assessment by the taxpayer would likely further jeopardize the collection of the amount, and for the purposes of sections 222, 223, 224, 224.1, 224.3 and 225, the amount in respect of which an authorization is so granted shall be deemed to be an amount payable under this Act.
Marginal note:Affidavits
(4)Statements contained in an affidavit filed in the context of an application under this section may be based on belief with the grounds therefor.
Marginal note:Service of authorization and of notice of assessment
(5)An authorization granted under this section in respect of a taxpayer shall be served by the Minister on the taxpayer within 72 hours after it is granted, except where the judge orders the authorization to be served at some other time specified in the authorization, and, where a notice of assessment has not been sent to the taxpayer at or before the time of the application, the notice of assessment shall be served together with the authorization.
Marginal note:How service effected
(6)For the purposes of subsection 225.2(5), service on a taxpayer shall be effected by
(a)personal service on the taxpayer; or
(b)service in accordance with directions, if any, of a judge.
Marginal note:Application to judge for direction
(7)Where service on a taxpayer cannot reasonably otherwise be effected as and when required under this section, the Minister may, as soon as practicable, apply to a judge for further direction.
Marginal note:Review of authorization
(8)Where a judge of a court has granted an authorization under this section in respect of a taxpayer, the taxpayer may, on 6 clear days notice to the Deputy Attorney General of Canada, apply to a judge of the court to review the authorization.
Marginal note:Limitation period for review application
(9)An application under subsection 225.2(8) shall be made
(a)within 30 days from the day on which the authorization was served on the taxpayer in accordance with this section; or
(b)within such further time as a judge may allow, on being satisfied that the application was made as soon as practicable.
Marginal note:Hearingin camera
(10)An application under subsection 225.2(8) may, on the application of the taxpayer, be heardin camera, if the taxpayer establishes to the satisfaction of the judge that the circumstances of the case justifyin cameraproceedings.
Marginal note:Disposition of application
(11)On an application under subsection 225.2(8), the judge shall determine the question summarily and may confirm, set aside or vary the authorization and make such other order as the judge considers appropriate.
Marginal note:Directions
(12)Where any question arises as to the course to be followed in connection with anything done or being done under this section and there is no direction in this section with respect thereto, a judge may give such direction with regard thereto as, in the opinion of the judge, is appropriate.
Marginal note:No appeal from review order
(13)No appeal lies from an order of a judge made pursuant to subsection 225.2(11).
Marginal note:Taxpayer leaving Canada
226(1)Where the Minister suspects that a taxpayer has left or is about to leave Canada, the Minister may, before the day otherwise fixed for payment, by notice served personally or by registered letter addressed to the taxpayer’s latest known address, demand payment of the amount of all taxes, interest and penalties for which the taxpayer is liable or would be liable if the time for payment had arrived, and that amount shall be paid forthwith by the taxpayer notwithstanding any other provision of this Act.
Marginal note:Seizure in case of default of payment
(2)If a taxpayer fails to pay, as required, any tax, interest or penalties demanded under this section, the Minister may direct that the goods and chattels, or movable property, of the taxpayer be seized and subsections 225(2) to (5) apply, with respect to the seizure, with any modifications that the circumstances require.
Marginal note:Withholding taxes
227(1)No action lies against any person for deducting or withholding any sum of money in compliance or intended compliance with this Act.
Marginal note:Return filed with person withholding
(2)Where a person (in this subsection referred to as the “payer”) is required by regulations made under subsection 153(1) to deduct or withhold from a payment to another person an amount on account of that other person’s tax for the year, that other person shall, from time to time as prescribed, file a return with the payer in prescribed form.
Marginal note:Failure to file return
(3)Every person who fails to file a return as required by subsection (2) is liable to have the deduction or withholding under section 153 on account of the person’s tax made as though the person were a person who is neither married nor in a common-law partnership and is without dependants.
Marginal note:Trust for moneys deducted
(4)Every person who deducts or withholds an amount under this Act is deemed, notwithstanding any security interest (as defined in subsection 224(1.3)) in the amount so deducted or withheld, to hold the amount separate and apart from the property of the person and from property held by any secured creditor (as defined in subsection 224(1.3)) of that person that but for the security interest would be property of the person, in trust for Her Majesty and for payment to Her Majesty in the manner and at the time provided under this Act.
Marginal note:Extension of trust
(4.1)Notwithstanding any other provision of this Act, theBankruptcy and Insolvency Act(except sections 81.1 and 81.2 of that Act), any other enactment of Canada, any enactment of a province or any other law, where at any time an amount deemed by subsection 227(4) to be held by a person in trust for Her Majesty is not paid to Her Majesty in the manner and at the time provided under this Act, property of the person and property held by any secured creditor (as defined in subsection 224(1.3)) of that person that but for a security interest (as defined in subsection 224(1.3)) would be property of the person, equal in value to the amount so deemed to be held in trust is deemed
(a)to be held, from the time the amount was deducted or withheld by the person, separate and apart from the property of the person, in trust for Her Majesty whether or not the property is subject to such a security interest, and
(b)to form no part of the estate or property of the person from the time the amount was so deducted or withheld, whether or not the property has in fact been kept separate and apart from the estate or property of the person and whether or not the property is subject to such a security interest
and is property beneficially owned by Her Majesty notwithstanding any security interest in such property and in the proceeds thereof, and the proceeds of such property shall be paid to the Receiver General in priority to all such security interests.
Marginal note:Meaning of security interest
(4.2)For the purposes of subsections 227(4) and 227(4.1), a security interest does not include a prescribed security interest.
Marginal note:Application to Crown
(4.3)For greater certainty, subsections (4) to (4.2) apply to Her Majesty in right of Canada or a province where Her Majesty in right of Canada or a province is a secured creditor (within the meaning assigned by subsection 224(1.3)) or holds a security interest (within the meaning assigned by that subsection).
Marginal note:Payments by trustees, etc.
(5)Where a specified person in relation to a particular person (in this subsection referred to as the “payer”) has any direct or indirect influence over the disbursements, property, business or estate of the payer and the specified person, alone or together with another person, authorizes or otherwise causes a payment referred to in subsection 135(3), 135.1(7) or 153(1), or on or in respect of which tax is payable under Part XII.5 or XIII, to be made by or on behalf of the payer, the specified person
(a)is, for the purposes of subsections 135(3) and 153(1), section 215 and this section, deemed to be a person who made the payment;
(a.1)is, for the purposes of subsections 135.1(7) and 211.8(2), deemed to be a person who redeemed, acquired or cancelled a share and made the payment as a consequence of the redemption, acquisition or cancellation;
(b)is jointly and severally, or solidarily, liable with the payer to pay to the Receiver General
(i)all amounts payable by the payer because of any of subsections 135(3), 135.1(7), 153(1) and 211.8(2) and section 215 in respect of the payment, and
(ii)all amounts payable under this Act by the payer because of any failure to comply with any of those provisions in respect of the payment; and
(c)is entitled to deduct or withhold from any amount paid or credited by the specified person to the payer or otherwise recover from the payer any amount paid under this subsection by the specified person in respect of the payment.
Definition ofspecified person
(5.1)In subsection 227(5), aspecified personin relation to a particular person means a person who is, in relation to the particular person or the disbursements, property, business or estate of the particular person,
(a)a trustee;
(b)a liquidator;
(c)a receiver;
(d)an interim receiver;
(e)a receiver-manager;
(f)a trustee in bankruptcy or other person appointed under theBankruptcy and Insolvency Act;
(g)an assignee;
(h)a secured creditor (as defined in subsection 224(1.3));
(i)an executor, a liquidator of a succession or an administrator;
(j)any person acting in a capacity similar to that of a person referred to in any of paragraphs 227(5.1)(a) to 227(5.1)(i);
(k)a person appointed (otherwise than as an employee of the creditor) at the request of, or on the advice of, a secured creditor in relation to the particular person to monitor, or provide advice in respect of, the disbursements, property, business or estate of the particular person under circumstances such that it is reasonable to conclude that the person is appointed to protect or advance the interests of the creditor; or
(l)an agent of a specified person referred to in any of paragraphs 227(5.1)(a) to 227(5.1)(k).
Personincludes partnership
(5.2)For the purposes of this section, references in subsections 227(5) and 227(5.1) to persons include partnerships.
Marginal note:Excess withheld, returned or applied
(6)Where a person on whose behalf an amount has been paid under Part XII.5 or XIII to the Receiver General was not liable to pay tax under that Part or where the amount so paid is in excess of the amount that the person was liable to pay, the Minister shall, on written application made no later than 2 years after the end of the calendar year in which the amount was paid, pay to the person the amount so paid or such part of it as the person was not liable to pay, unless the person is or is about to become liable to make a payment to Her Majesty in right of Canada, in which case the Minister may apply the amount otherwise payable under this subsection to that liability and notify the person of that action.
Marginal note:Repayment of non-resident shareholder loan
(6.1)Where, in respect of a loan from or indebtedness to a corporation or partnership, a person on whose behalf an amount was paid to the Receiver General under Part XIII because of subsection 15(2) and paragraph 214(3)(a) repays the loan or indebtedness or a portion of it and it is established by subsequent events or otherwise that the repayment was not made as part of a series of loans or other transactions and repayments, the Minister shall, on written application made no later than 2 years after the end of the calendar year in which the repayment is made, pay to the person an amount equal to the lesser of
(a)the amount so paid to the Receiver General in respect of the loan or indebtedness or portion of it, as the case may be, and
(b)the amount that would be payable to the Receiver General under Part XIII if a dividend described in paragraph 212(2)(a) equal in amount to the amount of the loan or indebtedness repaid were paid by the corporation or partnership to the person at the time of the repayment,
unless the person is or is about to become liable to make a payment to Her Majesty in right of Canada, in which case the Minister may apply the amount otherwise payable under this subsection to that liability and notify the person of that action.
Marginal note:Foreign affiliate dumping  — late-filed form
(6.2)If, in respect of an investment described in subsection 212.3(10), a corporation is deemed by subparagraph 212.3(7)(d)(ii) to pay a dividend and the corporation subsequently complies with the requirements of subparagraph 212.3(7)(d)(i) in respect of the investment,
(a)subject to paragraph (b), the Minister shall, on written application made on a particular day that is, or is no more than two years after, the day on which the form described in subparagraph 212.3(7)(d)(i) is filed, pay to the corporation an amount equal to the lesser of
(i)the total of all amounts, if any, paid to the Receiver General, on or prior to the particular day, on behalf of a person and in respect of the liability of the person to pay an amount under Part XIII in respect of the dividend, and
(ii)the amount that the person was liable to pay in respect of the dividend under Part XIII;
(b)where the corporation or the person is or is about to become liable to make a payment to Her Majesty in right of Canada, the Minister may apply the amount otherwise payable under paragraph (a) to that liability and notify the corporation, and, if applicable, the person, of that action; and
(c)for the purposes of this Part (other than subparagraph (a)(i)), if the amount described in subparagraph (a)(ii) exceeds the amount described in subparagraph (a)(i), the corporation is deemed to pay that excess to the Receiver General on the day on which the form described in subparagraph 212.3(7)(d)(i) is filed.
Marginal note:Application for assessment
(7)Where, on application under subsection 227(6) by or on behalf of a person to the Minister in respect of an amount paid under Part XII.5 or XIII to the Receiver General, the Minister is not satisfied
(a)that the person was not liable to pay any tax under that Part, or
(b)that the amount paid was in excess of the tax that the person was liable to pay,
the Minister shall assess any amount payable under that Part by the person and send a notice of assessment to the person, and sections 150 to 163, subsections 164(1) and 164(1.4) to 164(7), sections 164.1 to 167 and Division J of Part I apply with any modifications that the circumstances require.
Marginal note:Application for determination
(7.1)Where, on application under subsection 227(6.1) by or on behalf of a person to the Minister in respect of an amount paid under Part XIII to the Receiver General, the Minister is not satisfied that the person is entitled to the amount claimed, the Minister shall, at the person’s request, determine, with all due dispatch, the amount, if any, payable under subsection 227(6.1) to the person and shall send a notice of determination to the person, and sections 150 to 163, subsections 164(1) and 164(1.4) to 164(7), sections 164.1 to 167 and Division J of Part I apply with such modifications as the circumstances require.
Marginal note:Penalty
(8)Subject to subsection (9.5), every person who in a calendar year has failed to deduct or withhold any amount as required by subsection 153(1) or section 215 is liable to a penalty of
(a)10% of the amount that should have been deducted or withheld; or
(b)where at the time of the failure a penalty under this subsection was payable by the person in respect of an amount that should have been deducted or withheld during the year and the failure was made knowingly or under circumstances amounting to gross negligence, 20% of that amount.
Marginal note:Joint and several, or solidary, liability
(8.1)If a particular person has failed to deduct or withhold an amount as required under subsection 153(1) or section 215 in respect of an amount that has been paid to a non-resident person, the non-resident person is jointly and severally, or solidarily, liable with the particular person to pay any interest payable by the particular person pursuant to subsection (8.3) in respect thereof.
Marginal note:Retirement compensation arrangement deductions
(8.2)Where a person has failed to deduct or withhold any amount as required under subsection 153(1) in respect of a contribution under a retirement compensation arrangement, that person is liable to pay to Her Majesty an amount equal to the amount of the contribution, and each payment on account of that amount is deemed to be, in the year in which the payment is made,
(a)for the purposes of paragraph 20(1)(r), a contribution by the person to the arrangement; and
(b)an amount on account of tax payable by the custodian under Part XI.3.
Marginal note:Interest on amounts not deducted or withheld
(8.3)A person who fails to deduct or withhold any amount as required by subsection 135(3), 135.1(7), 153(1) or 211.8(2) or section 215 shall pay to the Receiver General interest on the amount at the prescribed rate, computed
(a)in the case of an amount required by subsection 153(1) to be deducted or withheld from a payment to another person, from the fifteenth day of the month immediately following the month in which the amount was required to be deducted or withheld, or from such earlier day as may be prescribed for the purposes of subsection 153(1), to,
(i)where that other person is not resident in Canada, the day of payment of the amount to the Receiver General, and
(ii)where that other person is resident in Canada, the earlier of the day of payment of the amount to the Receiver General and April 30 of the year immediately following the year in which the amount was required to be deducted or withheld;
(b)in the case of an amount required by subsection 135(3) or 135.1(7) or section 215 to be deducted or withheld, from the day on which the amount was required to be deducted or withheld to the day of payment of the amount to the Receiver General; and
(c)in the case of an amount required by subsection 211.8(2) to be withheld, from the day on or before which the amount was required to be remitted to the Receiver General to the day of the payment of the amount to the Receiver General.
Marginal note:Liability to pay amount not deducted or withheld
(8.4)A person who fails to deduct or withhold any amount as required under subsection 135(3) or 135.1(7) in respect of a payment made to another person or under subsection 153(1) in respect of an amount paid to another person who is non-resident or who is resident in Canada solely because of paragraph 250(1)(a) is liable to pay as tax under this Act on behalf of the other person the whole of the amount that should have been so deducted or withheld and is entitled to deduct or withhold from any amount paid or credited by the person to the other person or otherwise to recover from the other person any amount paid by the person as tax under this Part on behalf of the other person.
Marginal note:No penalty — certain deemed payments
(8.5)Subsection (8) does not apply to a corporation in respect of
(a)an amount of interest deemed by subsection 214(16) to have been paid as a dividend by the corporation unless, if the Act were read without reference to subsection 214(16), a penalty under subsection (8) would have applied in respect of the amount; and
(b)an amount deemed by subparagraph 212.3(7)(d)(ii) or subsection 247(12) to have been paid as a dividend by the corporation.
Marginal note:No penalty — qualifying non-resident employers
(8.6)Subsection (8) does not apply to aqualifying non-resident employer(as defined in subsection 153(6)) in respect of a payment made to an employee if, after reasonable inquiry, the employer had no reason to believe at the time of the payment that the employee was not aqualifying non-resident employee(as defined in subsection 153(6)).
Marginal note:Penalty
(9)Subject to subsection 227(9.5), every person who in a calendar year has failed to remit or pay as and when required by this Act or a regulation an amount deducted or withheld as required by this Act or a regulation or an amount of tax that the person is, by section 116 or by a regulation made under subsection 215(4), required to pay is liable to a penalty of
(a)subject to paragraph (b), if
(i)the Receiver General receives that amount on or before the day it was due, but that amount is not paid in the manner required, 3% of that amount,
(ii)the Receiver General receives that amount
(A)no more than three days after it was due, 3% of that amount,
(B)more than three days and no more than five days after it was due, 5% of that amount, or
(C)more than five days and no more than seven days after it was due, 7% of that amount, or
(iii)that amount is not paid or remitted on or before the seventh day after it was due, 10% of that amount; or
(b)where at the time of the failure a penalty under this subsection was payable by the person in respect of an amount that should have been remitted or paid during the year and the failure was made knowingly or under circumstances amounting to gross negligence, 20% of that amount.
Marginal note:Penalty
(9.1)Notwithstanding any other provision of this Act, any other enactment of Canada, any enactment of a province or any other law, the penalty for failure to remit an amount required to be remitted by a person on or before a prescribed date under subsection 153(1), subsection 21(1) of theCanada Pension Plan, subsection 53(1) of theUnemployment Insurance Actand subsection 82(1) of theEmployment Insurance Actshall, unless the person who is required to remit the amount has, knowingly or under circumstances amounting to gross negligence, delayed in remitting the amount or has, knowingly or under circumstances amounting to gross negligence, remitted an amount less than the amount required, apply only to the amount by which the total of all so required to be remitted on or before that date exceeds $500.
Marginal note:Interest on amounts deducted or withheld but not remitted
(9.2)Where a person has failed to remit as and when required by this Act or a regulation an amount deducted or withheld as required by this Act or a regulation, the person shall pay to the Receiver General interest on the amount at the prescribed rate computed from the day on which the person was so required to remit the amount to the day of remittance of the amount to the Receiver General.
Marginal note:Interest on certain tax not paid
(9.3)Where a person fails to pay an amount of tax that, because of section 116, subsection 212(19) or a regulation made under subsection 215(4), the person is required to pay, as and when the person is required to pay it, the person shall pay to the Receiver General interest on the amount at the prescribed rate computed from the day on or before which the amount was required to be paid to the day of payment of the amount to the Receiver General.
Marginal note:Liability to pay amount not remitted
(9.4)A person who has failed to remit as and when required by this Act or a regulation an amount deducted or withheld from a payment to another person as required by this Act or a regulation is liable to pay as tax under this Act on behalf of the other person the amount so deducted or withheld.
Marginal note:Payment from same establishment
(9.5)In applying paragraphs 227(8)(b) and 227(9)(b) in respect of an amount required by paragraph 153(1)(a) to be deducted or withheld, each establishment of a person shall be deemed to be a separate person.
Marginal note:Assessment
(10)The Minister may at any time assess any amount payable under
(a)subsection 227(8), 227(8.1), 227(8.2), 227(8.3) or 227(8.4) or 224(4) or 224(4.1) or section 227.1 or 235 by a person,
(b)subsection 237.1(7.4) or (7.5) or 237.3(8) by a person or partnership,
(c)subsection 227(10.2) by a person as a consequence of a failure of a non-resident person to deduct or withhold any amount, or
(d)Part XIII by a person resident in Canada,
and, where the Minister sends a notice of assessment to that person or partnership, Divisions I and J of Part I apply with any modifications that the circumstances require.
Marginal note:Part XII.5
(10.01)The Minister may at any time assess any amount payable under Part XII.5 by a person resident in Canada and, where the Minister sends a notice of assessment to that person, Divisions I and J of Part I apply with any modifications that the circumstances require.
Marginal note:Idem
(10.1)The Minister may at any time assess
(a)any amount payable under section 116 or subsection 227(9), 227(9.2), 227(9.3) or 227(9.4) by any person,
(a.1)[Repealed, 1997, c. 25, s. 67(7)]
(b)any amount payable under subsection 227(10.2) by any person as a consequence of a failure by a non-resident person to remit any amount, and
(c)any amount payable under Part XII.5 or XIII by any non-resident person,
and, where the Minister sends a notice of assessment to the person, sections 150 to 163, subsections 164(1) and 164(1.4) to 164(7), sections 164.1 to 167 and Division J of Part I apply with such modifications as the circumstances require.
Marginal note:Joint and several, or solidary, liability re contributions to RCA
(10.2)If a non-resident person fails to deduct, withhold or remit an amount as required by subsection 153(1) in respect of a contribution under a retirement compensation arrangement that is paid on behalf of the employees or former employees of an employer with whom the non-resident person does not deal at arm’s length, the employer is jointly and severally, or solidarily, liable with the non-resident person to pay any amount payable under subsection (8), (8.2), (8.3), (9), (9.2) or (9.4) by the non-resident person in respect of the contribution.
(10.3) to (10.9)[Repealed, 1994, c. 7, Sch