Excise Tax Act (R.S.C., 1985, c. E-15)

SUBDIVISION BReturns, Penalties and Interest

Marginal note:Place of filing

• 278 (1) Every person who is required under this Part to file a return shall file the return with the Minister in the prescribed manner.

• Marginal note:Place of payment

  (2) Every person who is required under this Part to pay or remit an amount shall, except where the amount is required under section 221 to be collected by another person, pay or remit the amount to the Receiver General.

• Marginal note:Idem

  (3) Every person who is required under this Part to pay or remit an amount to the Receiver General shall, where the amount is $50,000 or more, make the payment or remittance to the account of the Receiver General at

  • (a) a bank, other than an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act;

  • (b) a credit union;

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

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

Meaning of electronic filing

• 278.1 (1) For the purposes of this section, electronic filing means using electronic media in a manner specified in writing by the Minister.

• Marginal note:Filing of return by electronic filing

  (2) A person who is required to file with the Minister a return under this Part, and who meets the criteria specified in writing by the Minister for the purposes of this section, may file the return by way of electronic filing.

• Marginal note:Mandatory filing of return by electronic transmission

  (2.1) If a person is, in respect of a reporting period of the person, a prescribed person or a person of a prescribed class, the person shall file its return for the reporting period by way of electronic filing in the manner specified by the Minister for the person.

• Marginal note:Deemed filing

  (3) For the purposes of this Part, where a person files a return by way of electronic filing, it is deemed to be a return in prescribed form filed with the Minister on the day the Minister acknowledges acceptance of it.

• (4) [Repealed, 2001, c. 15, s. 20]

• (5) [Renumbered as (3), 2001, c. 15, s. 20]

Marginal note:Execution of documents

279 A return (other than a return filed by way of electronic filing under section 278.1), certificate or other document made by a person (other than an individual) under this Part or under a regulation made under this Part shall be signed on behalf of the person by an individual duly authorized to do so by the person or the governing body of the person and the following persons are deemed to be so duly authorized:

• (a) if the person is a corporation or an association or organization that has duly elected or appointed officers, the president, vice-president, secretary, treasurer or other equivalent officers of the person; and

• (b) if the person is the estate of a deceased individual, the personal representative of the estate.

Marginal note:Interest

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

• Marginal note:Interest on net tax of selected listed financial institutions

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

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

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

• Marginal note:Interest on instalments

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

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

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

• Marginal note:Interest on instalments

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

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

  exceeds

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

• Marginal note:Unpaid interest on instalments

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

• Marginal note:Unpaid interest on net tax of selected listed financial institutions

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

• Marginal note:Payment of interest

  (4.1) If interest is compounded on a partic­ular day on an amount that a person has failed to pay or remit when required under this Part, the interest so compounded is deemed, for the purposes of this section, to be required to be paid by the person to the Receiver General at the end of the particular day and, if the person has not paid the interest so computed by the end of the next following day, the interest shall be added to the amount at the end of the particular day.

• (5) and (6) [Repealed, 2006, c. 4, s. 146]

• Marginal note:Payment before specified date

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

Marginal note:Failure to file a return

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

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

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