Digital Services Tax Act (S.C. 2024, c. 15, s. 96)

Marginal note:Payment in Canadian dollars

• 53 (1) Every person that is required under this Act to pay an amount to the Receiver General for Canada must pay the amount in Canadian dollars.

• Marginal note:Exception

  (2) The Minister may, at any time, waive the requirement under subsection (1) and accept a currency other than Canadian dollars. If such a waiver is granted, the amount is to be converted from Canadian dollars to the other currency using a rate of exchange that is acceptable to the Minister.

Marginal note:Definition of electronic payment

• 54 (1) In this section, electronic payment means any payment to the Receiver General for Canada that is made through electronic services offered by a person described in any of paragraphs (2)(a) to (d) or by any electronic means specified by the Minister.

• Marginal note:Electronic payment

  (2) Every person that is required under this Act to pay an amount to the Receiver General for Canada must, if the amount is $10,000 or more, make the payment by way of electronic payment, unless the person cannot reasonably pay the amount in that manner, to the account of the Receiver General for Canada at or through

  • (a) a bank;

  • (b) a credit union;

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

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

Marginal note:Small amounts owing by a person

• 55 (1) If, at any time, the total of all unpaid amounts owing by a person to the Receiver General for Canada under this Act does not exceed $2.00, the amount owing by the person is deemed to be nil.

• Marginal note:Small amounts payable to a person

  (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed $2.00, the Minister may apply those amounts against any amount owing, at that time, by the person to His Majesty in right of Canada. However, if the person, at that time, does not owe any amount to His Majesty in right of Canada, those amounts payable are deemed to be nil.

DIVISION EInterest

Marginal note:Compound interest

• 56 (1) If a person fails to pay an amount to the Receiver General for Canada as and when required under this Act, the person must pay to the Receiver General for Canada interest on the amount. The interest must be compounded daily at the rate prescribed by regulation and determined for the period beginning on the first day after the day on or before which the amount was required to be paid and ending on the day on which the amount is paid.

• Marginal note:Payment of compounded interest

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

• Marginal note:Period when interest not payable

  (3) If the Minister has served a demand that a person pay on or before a specified day all amounts payable by the person under this Act on the date of the demand, and the person pays the amount demanded on or before the specified day, the Minister must waive any interest that would otherwise apply in respect of the amount demanded for the period beginning on the first day after the date of the demand and ending on the day of payment.

• Marginal note:Interest and penalty amounts of $25 or less

  (4) If, at any time, a person pays an amount that is not less than the total of all amounts, other than interest and penalties, owing at that time to His Majesty in right of Canada under this Act in respect of a calendar year and the total amount of interest and penalties payable by the person under this Act in respect of the year is not more than $25, the Minister may cancel the interest and penalties.

Marginal note:Waiving or cancelling interest

• 57 (1) The Minister may, on or before the day that is 10 calendar years after the end of a particular calendar year, or on application by a person on or before that day, waive, cancel or reduce any interest otherwise payable by the person under this Act on an amount that is required to be paid by the person in respect of the particular calendar year, and may despite subsection 70(1), make any assessment of the interest payable by the person that is necessary to take into account the waiver, cancellation or reduction of the interest.

• Marginal note:Interest on amounts waived or cancelled

  (2) If a person has paid an amount of interest and the Minister waives, cancels or reduces any portion of that amount under subsection (1), the Minister must refund the portion of the amount and pay interest on it at the rate prescribed by regulation beginning on the day that is 30 days after the day on which the Minister received an application in a manner satisfactory to the Minister to apply that subsection (or, if there is no such application, on the day on which the Minister waives, cancels or reduces the portion of the amount) and ending on the day on which the portion of the amount is paid as a refund or applied against another amount owed by the person to His Majesty in right of Canada.

DIVISION FAdministrative Charge under Financial Administration Act

Marginal note:Dishonoured instruments

58 For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that is payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that is payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid.

DIVISION GRefunds

Marginal note:Statutory recovery rights

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

Marginal note:Refund — payment in error

• 60 (1) If a person, otherwise than because of an assessment, has paid any moneys in error to His Majesty in right of Canada, whether by reason of mistake of fact or law or otherwise, and the moneys have been taken into account by His Majesty in right of Canada as taxes, penalties, interest or other amounts under this Act, then an amount equal to the amount of the moneys must, subject to this Act, be refunded to the person if the person applies for the refund of the amount within two years after the day on which the moneys were paid.

• Marginal note:Form and contents of application

  (2) An application under subsection (1) must be made in the form and manner, and containing the information, prescribed by the Minister.

• Marginal note:Determination

  (3) On receipt of an application made under subsection (1), the Minister must, without delay, consider the application and determine the amount of the refund, if any, payable to the applicant.

• Marginal note:Minister not bound

  (4) In considering an application made under subsection (1), the Minister is not bound by any application made or information provided by or on behalf of any person.

• Marginal note:Notice and payment

  (5) After considering an application made under subsection (1), the Minister must

  • (a) send to the applicant a notice of the determination made under subsection (3); and

  • (b) pay to the applicant the amount of the refund, if any, payable to the applicant.

• Marginal note:Objections and appeals

  (6) For the purposes of Divisions J and K and subsections 67(5) and 122(7) and (13), a determination made under subsection (3) is deemed to be an assessment.

• Marginal note:Interest on payment

  (7) If an amount is paid to an applicant under subsection (5), the Minister must pay interest, at the rate prescribed by regulation, to the applicant on the amount for the period beginning on the day that is 30 days after the day on which the application was received (or deemed received under subsection 67(4)) by the Minister and ending on the day on which the amount is paid.

• Marginal note:Determination valid and binding

  (8) A determination made under subsection (3), subject to being varied or vacated on an objection or appeal under this Act and subject to an assessment, is deemed to be valid and binding despite any irregularity, informality, error, defect or omission in the notice of the determination or in any proceeding under this Act relating to the determination.

Marginal note:Restriction — application to other debts

61 Instead of paying to a person a refund that might otherwise be paid under this Act, the Minister may, if the person is, or is about to become, liable to make any payment to His Majesty in right of Canada or a province, apply the amount of the refund to that liability and notify the person of that action.

Marginal note:Restriction — unfulfilled filing requirements

62 The Minister must not, in respect of a person, refund, repay, apply to other debts or set off amounts under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under this Act, the Income Tax Act, the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act, the Greenhouse Gas Pollution Pricing Act, the Underused Housing Tax Act, the Select Luxury Items Tax Act and the Global Minimum Tax Act.

Marginal note:Restriction — trustees

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

Marginal note:Overpayment of refund or interest

64 If an amount is paid to, or applied to a liability of, a person as a refund or as interest under this Act and the person is not entitled to the refund or interest or the amount paid or applied exceeds the refund or interest to which the person is entitled, the Minister may, despite subsection 70(1), assess the person at any time and the person must pay to the Receiver General for Canada an amount equal to the refund, interest or excess on the day on which the refund, interest or excess is paid to, or applied to a liability of, the person.

DIVISION HRecords and Information

Marginal note:Keeping records

• 65 (1) A person must keep all records that are necessary to determine whether the person has complied with this Act and, if the person is or was a constituent entity of a consolidated group, all of that person’s records that are necessary to determine whether other entities of the group have complied with this Act.

• Marginal note:Minister may specify information

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

• Marginal note:Electronic records

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

• Marginal note:General period for retention

  (4) Subject to subsection (5), every person that is required to keep records must retain them for a period of eight years after the end of the calendar year to which they relate or for any other period that may be prescribed by regulation.

• Marginal note:Exception — general period for retention

  (5) If, for a calendar year, a person has not filed a return as and when required by section 45 and subsequently files a return for the year, then the person must retain the records that are required by this section to be kept and that relate to the year for a period of eight years after the day on which the return is filed.

• Marginal note:Inadequate records

  (6) If a person fails to keep adequate records for the purposes of this Act, the Minister may require the person to keep any records that the Minister may specify and the person must keep the records specified.

• Marginal note:Objection or appeal

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

• Marginal note:Demand by Minister

  (8) If the Minister is of the opinion that it is necessary for the administration or enforcement of this Act, the Minister may, by a demand served personally, sent by confirmed delivery service or sent electronically, require any person to keep records and retain them for any period that is specified in the demand, and the person must comply with the demand.

• Marginal note:Permission for earlier disposal

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

Marginal note:Requirement to provide information or records

• 66 (1) Subject to subsection (2), but despite any other provision of this Act, the Minister may — for any purpose related to the administration or enforcement of this Act by notice served personally, sent by confirmed delivery service or sent electronically — require that any person provide the Minister, within such reasonable time as is specified in the notice, with any information or record.

• Marginal note:Unnamed persons

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

• Marginal note:Judicial authorization

  (3) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (1) relating to an unnamed person, or a group of unnamed persons, if the judge is satisfied by information on oath that

  • (a) the unnamed person or the group is ascertainable; and

  • (b) the requirement is imposed to verify compliance by the unnamed person, or persons in the group, with any obligation under this Act.

• Marginal note:Time period not to count

  (4) If a person is sent or served with a notice of requirement under subsection (1), the period between the day on which an application for judicial review in respect of the requirement is made and the day on which the application is finally disposed of is not to be counted in the computation of the period within which an assessment of the person may be made under subsection 70(1).

DIVISION IAssessments

Marginal note:Assessment

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

• Marginal note:Liability not affected

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

• Marginal note:Minister not bound

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

• Marginal note:Determination of refunds

  (4) In assessing a person under subsection (1), the Minister may determine whether a refund under section 60 is payable to the person. If the Minister makes such a determination, the person is deemed to have made an application under section 60 within two years after the day on which the moneys were paid and the Minister is deemed to have received the application on the date of the notice of assessment.

• Marginal note:Irregularities

  (5) No assessment is to be vacated or varied on an appeal by reason only of an irregularity, informality, error, defect or omission by any person in the observance of any directory provision of this Act.