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Excise Act, 2001 (S.C. 2002, c. 22)

Full Document:  

Act current to 2022-07-13 and last amended on 2022-06-30. Previous Versions

PART 6Enforcement (continued)

Collection (continued)

Marginal note:Recovery by deduction or set-off

 If a person is indebted to Her Majesty under this Act, the Minister may require the retention by way of deduction or set-off of any amount that the Minister may specify out of any amount that may be or become payable to that person by Her Majesty.

Marginal note:Acquisition of debtor’s property

 For the purpose of collecting debts owed by a person to Her Majesty under this Act, the Minister may purchase or otherwise acquire any interest 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 so acquired in any manner that the Minister considers reasonable.

Marginal note:Money seized from debtor

  •  (1) If the Minister has knowledge or suspects that a person is holding money that was seized by a police officer in the course of administering or enforcing the criminal law of Canada from another person who is liable to pay any duty, interest or other amount under this Act (in this section referred to as the “debtor”) and that is restorable to the debtor, the Minister may in writing require the person to turn over the money otherwise restorable to the debtor, in whole or in part, to the Receiver General on account of the debtor’s liability under this Act.

  • Marginal note:Receipt of Minister

    (2) A receipt issued by the Minister for money turned over is a good and sufficient discharge of the requirement to restore the money to the debtor to the extent of the amount so turned over.

Marginal note:Seizure — failure to pay duty, etc.

  •  (1) If a person fails to pay duty, interest or other amount as required under this Act, the Minister may in writing give 30 days notice to the person, addressed to their last known address, of the Minister’s intention to direct that the person’s things be seized and disposed of. If the person fails to make the payment before the expiry of the 30 days, the Minister may issue a certificate of the failure and direct that the person’s things be seized.

  • Marginal note:Disposition

    (2) Things that have been seized under subsection (1) shall be kept for 10 days at the expense and risk of the owner. If the owner does not pay the amount due together with all expenses within the 10 days, the Minister may dispose of the things in a manner the Minister considers appropriate in the circumstances.

  • Marginal note:Proceeds of disposition

    (3) Any surplus resulting from a disposition, after deduction of the amount owing and all expenses, shall be paid or returned to the owner of the things seized.

  • Marginal note:Exemptions from seizure

    (4) Anything of any person in default that would be exempt from seizure under a writ of execution issued by a superior court of the province in which the seizure is made is exempt from seizure under this section.

Marginal note:Person leaving Canada or defaulting

  •  (1) If the Minister suspects that a person has left or is about to leave Canada, the Minister may, before the day otherwise fixed for payment, by notice to the person served personally or sent by registered or certified mail addressed to their last known address, demand payment of any amount for which the person is liable under this Act or would be so liable if the time for payment had arrived, and the amount shall be paid without delay despite any other provision of this Act.

  • Marginal note:Seizure

    (2) If a person fails to pay an amount required under subsection (1), the Minister may direct that things of the person be seized, and subsections 293(2) to (4) apply, with any modifications that the circumstances require.

Marginal note:Liability of directors

  •  (1) If a corporation fails to pay any duty or interest as and when required under this Act, the directors of the corporation at the time it was required to pay the duty or interest are jointly and severally or solidarily liable, together with the corporation, to pay the duty or interest and any interest that is payable on the duty or interest under this Act.

  • Marginal note:Limitations

    (2) A director of a corporation is not liable unless

    • (a) a certificate for the amount of the corporation’s liability has been registered in the Federal Court under section 288 and execution for that amount has been returned unsatisfied in whole or in part;

    • (b) the corporation has commenced liquidation or dissolution proceedings or has been dissolved and a claim for the amount of the corporation’s liability has been proved within six months after the earlier of the date of commencement of the proceedings and the date of dissolution; or

    • (c) the corporation has made an assignment or a bankruptcy order has been made against it under the Bankruptcy and Insolvency Act and a claim for the amount of the corporation’s liability has been proved within six months after the date of the assignment or bankruptcy order.

  • Marginal note:Diligence

    (3) A director of a corporation is not liable for a failure under subsection (1) if the director exercised the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would have exercised in comparable circumstances.

  • Marginal note:Assessment

    (4) The Minister may assess any person for any amount of duty or interest payable by the person under this section and, if the Minister sends a notice of assessment, sections 188 to 205 apply with any modifications that the circumstances require.

  • Marginal note:Time limit

    (5) An assessment of any amount payable by a person who is a director of a corporation shall not be made more than two years after the person ceased to be a director of the corporation.

  • Marginal note:Amount recoverable

    (6) If execution referred to in paragraph (2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution.

  • Marginal note:Preference

    (7) If a director of a corporation pays an amount in respect of the corporation’s liability that is proved in liquidation, dissolution or bankruptcy proceedings, the director is entitled to any preference to which Her Majesty would have been entitled had the amount not been so paid, and if a certificate that relates to the amount has been registered, the director is entitled to an assignment of the certificate to the extent of the director’s payment, which assignment the Minister is empowered to make.

  • Marginal note:Contribution

    (8) A director who satisfies a claim under this section is entitled to contribution from the other directors who were liable for the claim.

  • 2002, c. 22, s. 295
  • 2004, c. 25, s. 198

Marginal note:Compliance by unincorporated bodies

  •  (1) If any duty, interest or other amount is required to be paid or any other thing is required to be done under this Act by a person (in this section referred to as the “body”) that is not an individual, a corporation or a partnership, it shall be the joint and several or solidary liability and responsibility of

    • (a) every member of the body holding office as president, chairperson, treasurer, secretary or similar officer of the body,

    • (b) if there are no such officers of the body, every member of any committee having management of the affairs of the body, and

    • (c) if there are no such officers of the body and no such committee, every member of the body,

    to pay that amount of duty, interest or other amount or to comply with the requirement, and if the amount is paid or the requirement is fulfilled by an officer of the body, a member of such a committee or a member of the body, it shall be considered as compliance with the requirement.

  • Marginal note:Assessment

    (2) The Minister may assess any person for any amount for which the person is liable under this section and, if the Minister sends a notice of assessment, sections 188 to 205 apply with any modifications that the circumstances require.

  • Marginal note:Limitation

    (3) An assessment of a person shall not

    • (a) include any amount that the body was liable to pay before the person became jointly and severally or solidarily liable;

    • (b) include any amount that the body became liable to pay after the person ceased to be jointly and severally or solidarily liable; or

    • (c) be made more than two years after the person ceased to be jointly and severally or solidarily liable unless the person was grossly negligent in the carrying out of any duty or obligation imposed on the body by or under this Act or made, or participated in, assented to or acquiesced in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice or answer made by the body.

Marginal note:Liability re transfers not at arm’s length

  •  (1) If at any time a person transfers property, either directly or indirectly, by a trust or any other means, to

    • (a) their spouse or common-law partner or an individual who has since become their spouse or common-law partner,

    • (b) an individual who was under 18 years of age, or

    • (c) another person with whom the transferor was not dealing at arm’s length,

    the transferee and transferor are jointly and severally or solidarily liable to pay an amount equal to the lesser of

    • (d) the amount determined by the formula

      A - B

      where

      A
      is the amount, if any, by which the fair market value of the property at that time exceeds the fair market value at that time of the consideration given by the transferee for the transfer of the property, and
      B
      is the amount, if any, by which the total of all amounts, if any, the transferee was assessed under subsection 325(2) of the Excise Tax Act, subsection 160(2) of the Income Tax Act or subsection 80(3) of the Underused Housing Tax Act in respect of the property exceeds the amount paid by the transferor in respect of the amounts so assessed, and
    • (e) the total of all amounts each of which is

      • (i) an amount that the transferor is liable to pay under this Act in respect of the reporting period in which the property was transferred or any preceding reporting period, or

      • (ii) interest for which the transferor is liable as of that time.

    However, nothing in this subsection limits the liability of the transferor under any other provision of this Act.

  • Marginal note:Fair market value of undivided interest

    (2) For the purposes of this section, the fair market value at any time of an undivided interest in a property, expressed as a proportionate interest in the property, is, subject to subsection (5), deemed to be equal to the same proportion of the fair market value of the property at that time.

  • Marginal note:Assessment

    (3) The Minister may at any time assess a transferee in respect of any amount payable by reason of this section, and, if the Minister sends a notice of assessment, sections 188 to 205 apply with any modifications that the circumstances require.

  • Marginal note:Rules applicable

    (4) If a transferor and transferee have, by reason of subsection (1), become jointly and severally or solidarily liable in respect of all or part of the liability of the transferor under this Act, the following rules apply:

    • (a) a payment by the transferee on account of the transferee’s liability shall, to the extent of the payment, discharge the joint liability; and

    • (b) a payment by the transferor on account of the transferor’s liability only discharges the transferee’s liability to the extent that the payment operates to reduce the transferor’s liability to an amount less than the amount in respect of which the transferee was, under subsection (1), made jointly and severally or solidarily liable.

  • Marginal note:Special transfers to spouse or common-law partner

    (5) Despite subsection (1), if at any time an individual transfers property to their spouse or common-law partner under a decree, order or judgment of a competent tribunal or under a written separation agreement and, at that time, the individual and their spouse or common-law partner were separated and living apart as a result of a breakdown of their marriage or common-law partnership, for the purposes of paragraph (1)(d), the fair market value at that time of the property so transferred is deemed to be nil. However, nothing in this subsection limits the liability of the individual under any other provision of this Act.

  • Marginal note:Definitions

    (6) The following definitions apply in this section.

    common-law partner

    common-law partner of an individual at any time means a person who is the common-law partner of the individual at that time for the purposes of the Income Tax Act. (conjoint de fait)

    common-law partnership

    common-law partnership means the relationship between two persons who are common-law partners of each other. (union de fait)

Evidence and Procedure

Marginal note:Venue

 A prosecution for an offence under this Act may be instituted, heard and determined in the place where the offence was committed or the subject-matter of the prosecution arose, where the accused was apprehended or where the accused happens to be, or is carrying on business.

Marginal note:Service

  •  (1) If the Minister is authorized or required to serve, issue or send a notice or other document on or to a person that

    • (a) is a partnership, the notice or document may be addressed to the name of the partnership;

    • (b) is a society, club, association, organization or other body, the notice or document may be addressed to the name of the body; and

    • (c) carries on business under a name or style other than the name of the person, the notice or document may be addressed to the name or style under which the person carries on business.

  • Marginal note:Personal service

    (2) If the Minister is authorized or required to serve, issue or send a notice or other document on or to a person that carries on a business, the notice or document is deemed to have been validly served, issued or sent if it is

    • (a) in the case of a person that is a partnership, served personally on one of the partners or left with an adult person employed at the place of business of the partnership; or

    • (b) in any other case, left with an adult person employed at the place of business of the person.

Marginal note:Sending by mail

  •  (1) For the purposes of this Act and subject to subsection (2), anything sent by registered, certified or first class mail is deemed to have been received by the person to whom it was sent on the day it was mailed.

  • Marginal note:Paying by mail

    (2) A person who is required under this Act to pay an amount is deemed not to have paid it until it is received by the Receiver General.

Marginal note:Proof of service by mail

  •  (1) If, under this Act, provision is made for sending by mail a request for information, a notice or a demand, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of the request, notice or demand if the affidavit sets out that

    • (a) the officer has knowledge of the facts in the particular case;

    • (b) such a request, notice or demand was sent by registered or certified mail on a specified day to a specified person and address; and

    • (c) the officer identifies as exhibits attached to the affidavit the post office certificate of registration of the letter or a true copy of the relevant portion of the certificate and a true copy of the request, notice or demand.

  • Marginal note:Proof of personal service

    (2) If, under this Act, provision is made for personal service of a request for information, a notice or a demand, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the personal service and of the request, notice or demand if the affidavit sets out that

    • (a) the officer has knowledge of the facts in the particular case;

    • (b) such a request, notice or demand was served personally on a named day on the person to whom it was directed; and

    • (c) the officer identifies as an exhibit attached to the affidavit a true copy of the request, notice or demand.

  • Marginal note:Proof of electronic delivery

    (2.1) If, under this Act, provision is made for sending a notice to a person electronically, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of the notice if the affidavit sets out that

    • (a) the officer has knowledge of the facts in the particular case;

    • (b) the notice was sent electronically to the person on a named day; and

    • (c) the officer identifies as exhibits attached to the affidavit copies of

      • (i) an electronic message confirming that the notice has been sent to the person, and

      • (ii) the notice.

  • Marginal note:Proof of failure to comply

    (3) If, under this Act, a person is required to make a return, an application, a statement, an answer or a certificate, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that after a careful examination and search of the records the officer has been unable to find in a given case that the return, application, statement, answer or certificate has been made by that person, is evidence that in that case the person did not make the return, application, statement, answer or certificate.

  • Marginal note:Proof of time of compliance

    (4) If, under this Act, a person is required to make a return, an application, a statement, an answer or a certificate, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that after careful examination of the records the officer has found that the return, application, statement, answer or certificate was filed or made on a particular day, is evidence that it was filed or made on that day.

  • Marginal note:Proof of documents

    (5) An affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that a document attached to the affidavit is a document or true copy of a document made by or on behalf of the Minister or a person exercising the powers of the Minister or by or on behalf of a person, is evidence of the nature and contents of the document.

  • Marginal note:Proof of no appeal

    (6) An affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and has knowledge of the practice of the Agency and that an examination of the records shows that a notice of assessment was mailed or otherwise sent to a person on a particular day under this Act and that, after careful examination and search of the records, the officer has been unable to find that a notice of objection or of appeal from the assessment was received within the time allowed for an objection or appeal to be filed under this Act, is evidence of the statements contained in the affidavit.

  • Marginal note:Presumption

    (7) If evidence is offered under this section by an affidavit from which it appears that the person making the affidavit is an officer of the Agency, it is not necessary to prove the signature of the person or that the person is such an officer, nor is it necessary to prove the signature or official character of the person before whom the affidavit was sworn.

  • Marginal note:Proof of documents

    (8) Every document purporting to have been executed under or in the course of the administration or enforcement of this Act over the name in writing of the Minister, the Commissioner of Customs and Revenue, the Commissioner or an officer authorized to exercise the powers or perform the duties of the Minister under this Act is deemed to be a document signed, made and issued by the Minister, the Commissioner of Customs and Revenue, the Commissioner or the officer, unless it has been called into question by the Minister or a person acting for the Minister or for Her Majesty.

  • Marginal note:Proof of documents: Canada Border Services Agency

    (8.1) Every document purporting to have been executed under or in the course of the administration or enforcement of this Act over the name in writing of the Minister of Public Safety and Emergency Preparedness, the President of the Canada Border Services Agency or an officer authorized to exercise the powers or perform the duties of that Minister under this Act is deemed to be a document signed, made and issued by that Minister, the President or the officer, unless it has been called into question by that Minister or a person acting for that Minister or for Her Majesty.

  • Marginal note:Mailing or sending date

    (9) If a notice or demand that the Minister is required or authorized under this Act to send to a person is mailed, or sent electronically, to the person, the day of mailing or sending, as the case may be, is deemed to be the date of the notice or demand.

  • Marginal note:Date electronic notice sent

    (9.1) For the purposes of this Act, if a notice or other communication in respect of a person is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is deemed to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.

  • Marginal note:Date assessment made

    (10) If a notice of assessment has been sent by the Minister as required under this Act, the assessment is deemed to have been made on the day of sending of the notice of assessment.

  • Marginal note:Proof of return

    (11) In a prosecution for an offence under this Act, the production of a return, an application, a certificate, a statement or an answer required under this Act, purporting to have been filed or delivered by or on behalf of the person charged with the offence or to have been made or signed by or on behalf of that person, is evidence that the return, application, certificate, statement or answer was filed or delivered by or on behalf of that person or was made or signed by or on behalf of that person.

  • Marginal note:Proof of return — printouts

    (12) For the purposes of this Act, a document presented by the Minister purporting to be a printout of the information in respect of a person received under section 166 by the Minister shall be received as evidence and, in the absence of evidence to the contrary, is proof of the return filed by the person under that section.

  • Marginal note:Proof of return — production of returns, etc.

    (13) In a proceeding under this Act, the production of a return, an application, a certificate, a statement or an answer required under this Act, purporting to have been filed, delivered, made or signed by or on behalf of a person, is evidence that the return, application, certificate, statement or answer was filed, delivered, made or signed by or on behalf of that person.

  • Marginal note:Evidence

    (14) In a prosecution for an offence under this Act, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that an examination of the records shows that an amount required under this Act to be paid to the Receiver General on account of duty, interest or other amount has not been received by the Receiver General, is evidence of the statements contained in the affidavit.

  • Marginal note:Probative force of copy

    (15) Any copy of an original record made under section 262 that is purported to be certified by the Minister or an officer to be a copy of the original record is evidence of the nature and content of the original record and has the same probative force as the original record would have if it were proven in the ordinary way.

 
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