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

SUBDIVISION DRegistration

Marginal note:Registration required

• 240 (1) Every person who makes a taxable supply in Canada in the course of a commercial activity engaged in by the person in Canada is required to be registered for the purposes of this Part, except where

  • (a) the person is a small supplier;

  • (b) the only commercial activity of the person is the making of supplies of real property by way of sale otherwise than in the course of a business; or

  • (c) the person is a non-resident person who does not carry on any business in Canada.

• Marginal note:Taxi business

  (1.1) Notwithstanding subsection (1), every small supplier who carries on a taxi business is required to be registered for the purposes of this Part in respect of that business.

• Marginal note:Prescribed selected listed financial institutions

  (1.2) Every selected listed financial institution that is prescribed is required to be registered for the purposes of this Part.

• Marginal note:Group registration of selected listed financial institutions

  (1.3) The following rules apply in respect of a prescribed group of selected listed financial institutions:

  • (a) the group is required to be registered for the purposes of this Part;

  • (b) a person that is prescribed in respect of the group must apply to the Minister for registration of the group before the day that is prescribed;

  • (c) each member of the group is deemed to be a registrant for the purposes of this Part; and

  • (d) despite subsections (1) to (1.2), each member of the group is not required to be separately registered.

• Marginal note:Additional member of group

  (1.4) If a selected listed financial institution becomes, on a particular day, a member of an existing group that is required to be registered for the purposes of this Part or that is registered under this Subdivision, the following rules apply:

  • (a) if the group is required to be registered, the application for the registration of the group under paragraph (1.3)(b) must list the financial institution as a member of the group;

  • (b) if the group is registered, the financial institution or the person that is prescribed in respect of the group for the purpose of paragraph (1.3)(b) must, before the day that is 30 days after the particular day, apply to the Minister to add the financial institution to the registration of the group;

  • (c) the financial institution is deemed to be a registrant for the purposes of this Part as of the particular day; and

  • (d) despite subsections (1) to (1.2), the financial institution is not required to be separately registered as of the particular day.

• Marginal note:Non-resident supplier — tangible personal property

  (1.5) Despite subsection (1), every person that is required under section 211.22 to be registered under this Subdivision is required to be registered for the purposes of this Part.

• Marginal note:Non-resident performers, etc.

  (2) Every person (other than a person registered under Subdivision E of Division II) that enters Canada for the purpose of making taxable supplies of admissions in respect of a place of amusement, a seminar, an activity or an event is required to be registered for the purposes of this Part and shall, before making any such supply, apply to the Minister for registration.

• Marginal note:Application

  (2.1) A person required under any of subsections (1) to (1.2) and (1.5) to be registered must apply to the Minister for registration before the day that is 30 days after

  • (a) in the case of a person required under subsection (1.1) to be registered in respect of a taxi business, the day the person first makes a taxable supply in Canada in the course of that business;

  • (a.1) in the case of a selected listed financial institution required under subsection (1.2) to be registered, the day that is prescribed;

  • (a.2) in the case of a person required under subsection (1.5) to be registered, the first day on which the person is required under section 211.22 to be registered under this Subdivision; and

  • (b) in any other case, the day the person first makes a taxable supply in Canada, otherwise than as a small supplier, in the course of a commercial activity engaged in by the person in Canada.

• Marginal note:Registration permitted

  (3) An application for registration for the purposes of this Part may be made to the Minister by any person that is not required under subsection (1), (1.1), (1.2), (1.5), (2) or (4) to be registered, that is not required to be included in, or added to, the registration of a group under subsection (1.3) or (1.4) and that

  • (a) is engaged in a commercial activity in Canada;

  • (b) is a non-resident person who in the ordinary course of carrying on business outside Canada

    • (i) regularly solicits orders for the supply by the person of tangible personal property for export to, or delivery in, Canada, or

    • (ii) has entered into an agreement for the supply by the person of

      • (A) services to be performed in Canada, or

      • (B) intangible personal property to be used in Canada or that relates to

        • (I) real property situated in Canada,

        • (II) tangible personal property ordinarily situated in Canada, or

        • (III) services to be performed in Canada;

  • (c) is a listed financial institution resident in Canada;

  • (d) is resident in Canada and is

    • (i) a particular corporation, partnership or trust that owns units (as defined in subsection 186(0.1)) or holds indebtedness of a corporation that is, for the purposes of section 186, an operating corporation of the particular corporation, partnership or trust, or

    • (ii) a particular corporation that is acquiring, or proposes to acquire, all or substantially all of the issued and outstanding shares of the capital stock of another corporation, having full voting rights under all circumstances, if all or substantially all of the property of the other corporation is, for the purposes of section 186, property that was last manufactured, produced, acquired or imported by the other corporation for consumption, use or supply exclusively in the course of its commercial activities,

  • (e) is the recipient of a qualifying supply (as defined in subsection 167.11(1)), or of a supply that would be a qualifying supply if the recipient were a registrant, and the recipient files an election referred to in subsection 167.11(2) with the Minister in respect of the qualifying supply before the particular day that is referred to in paragraph 167.11(7)(a); or

  • (f) a corporation that would be a temporary member, as defined in subsection 156(1), in the absence of paragraph (a) of that definition.

• Marginal note:Extended registration permitted for taxi business

  (3.1) Where a person who is a small supplier carrying on a taxi business files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the person apply in respect of all commercial activities engaged in by the person in Canada, the Minister may approve the request and shall thereupon notify the person in writing of the date from which the registration so applies.

• Marginal note:Suppliers of prescribed property

  (4) Every person (other than a small supplier), whether or not resident in Canada, who, in Canada, whether through an employee or agent or by means of advertising directed at the Canadian market, solicits orders for the supply by the person of, or offers to supply, property that is prescribed property for the purposes of section 143.1 and that is to be sent by mail or courier to the recipient at an address in Canada

  • (a) shall be deemed, for the purposes of this Part, to be carrying on business in Canada; and

  • (b) is required to be registered for the purposes of this Part.

• Marginal note:Form and contents of application

  (5) An application for registration, or an application to be added to the registration of a group, is to be filed with the Minister in prescribed manner and is to be made in prescribed form containing prescribed information.

• Marginal note:Security

  (6) Every person who

  • (a) is not resident in Canada or would not, but for subsection 132(2), be resident in Canada,

  • (b) does not have a permanent establishment in Canada or would not, but for paragraph (b) of the definition permanent establishment in subsection 123(1), have such an establishment, and

  • (c) applies or is required to be registered for the purposes of this Part

  shall give and thereafter maintain security, in an amount and a form satisfactory to the Minister, that the person will pay or remit all amounts payable or remittable by the person under this Part.

• Marginal note:Failure to comply

  (7) Where, at any time, a person referred to in subsection (6) fails to give or maintain, as required under that subsection, security in an amount satisfactory to the Minister, the Minister may retain as security, out of any amount that may be or may become payable under this Part to the person, an amount not exceeding the amount by which

  • (a) the amount of security that would, at that time, be satisfactory to the Minister if it were given by the person in accordance with that subsection

  exceeds

  • (b) the amount of security, if any, given and maintained by the person in accordance with that subsection,

  and the amount so retained is deemed

  • (c) to have been paid, at that time, by the Minister to the person, and

  • (d) to have been given, immediately after that time, by the person as security in accordance with subsection (6).

Marginal note:Registration

• 241 (1) The Minister may register any person that applies for registration and, upon doing so, must assign a registration number to the person and notify the person in writing of the registration number and the effective date of the registration.

• Marginal note:Group registration

  (1.1) If a person applies to register a group of selected listed financial institutions that is prescribed for the purposes of subsection 240(1.3), the Minister may register the group and, upon doing so, the following rules apply:

  • (a) the Minister must assign a registration number to the group and notify in writing the person that is prescribed in respect of the group for the purpose of paragraph 240(1.3)(b) and each financial institution listed on the application of the registration number and the effective date of the registration of the group;

  • (b) for each member of the group that is registered under this Subdivision on the day preceding the effective date, that registration is cancelled as of the effective date of the registration of the group; and

  • (c) each member of the group is deemed, for the purposes of this Part other than section 242, to be registered under this Subdivision as of the effective date of the registration of the group and to have a registration number that is the same as the registration number of the group.

• Marginal note:Addition of new member to group registration

  (1.2) If an application is made to add a selected listed financial institution to the registration of a group under paragraph 240(1.4)(b), the Minister may add the financial institution to the registration and, upon doing so, the following rules apply:

  • (a) the Minister must notify in writing the person that is prescribed in respect of the group for the purpose of paragraph 240(1.3)(b) and the financial institution of the effective date of the addition to the registration;

  • (b) if the financial institution is registered under this Subdivision on the day preceding the effective date, that registration of the financial institution is cancelled as of the effective date; and

  • (c) the financial institution is deemed, for the purposes of this Part other than section 242, to be registered under this Subdivision as of the effective date and to have a registration number that is the same as the registration number of the group.

• Marginal note:Notice of intent

  (1.3) If the Minister has reason to believe that a person that is not registered under this Subdivision is required to be registered for the purposes of this Part and has failed to apply for registration under this Subdivision as and when required, the Minister may send a notice in writing (in this section referred to as a “notice of intent”) to the person that the Minister proposes to register the person under subsection (1.5).

• Marginal note:Representations to Minister

  (1.4) Upon receipt of a notice of intent, a person shall apply for registration under this Subdivision or establish to the satisfaction of the Minister that the person is not required to be registered for the purposes of this Part.

• Marginal note:Registration by Minister

  (1.5) If, after 60 days after the particular day on which a notice of intent was sent by the Minister to a person, the person has not applied for registration under this Subdivision and the Minister is not satisfied that the person is not required to be registered for the purposes of this Part, the Minister may register the person and, upon doing so, shall assign a registration number to the person and notify the person in writing of the registration number and the effective date of the registration, which effective date is not to be earlier than 60 days after the particular day.

• Marginal note:Taxi business

  (2) Where, on the day on which the registration under subsection (1) of a person becomes effective or is varied under subsection 242(2.1), the person is a small supplier carrying on a taxi business and an approval under subsection 240(3.1) in respect of the registration does not become effective on that day, the registration does not apply to any other commercial activity engaged in by the person in Canada throughout the period commencing on that day and ending on the earlier of the first day thereafter that the person ceases to be a small supplier and the day, specified in a notice issued under subsection 240(3.1) in respect of that registration or varied registration, as the case may be, from which the registration is to apply to all commercial activities engaged in by the person in Canada.

Marginal note:Cancellation

• 242 (1) The Minister may, after giving a person who is registered under this Subdivision reasonable written notice, cancel the registration of the person if the Minister is satisfied that the registration is not required for the purposes of this Part.

• Marginal note:Cancellation of group registration

  (1.1) The Minister may, after giving reasonable written notice to each member of a group that is registered under this Subdivision and to the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b), cancel the registration of the group if the Minister is satisfied that the registration is not required for the purposes of this Part.

• Marginal note:Cancellation of group registration

  (1.2) The Minister must cancel the registration of a group in prescribed circumstances.

• Marginal note:Removal from group registration

  (1.3) The Minister may, after giving reasonable written notice to a particular person that is a member of a group that is registered under this Subdivision and to the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b), remove the particular person from the registration of the group if the Minister is satisfied that the particular person is not required to be included in the registration for the purposes of this Part.

• Marginal note:Removal from group registration

  (1.4) The Minister must remove a person from the registration of a group in prescribed circumstances.

• Marginal note:Request for cancellation

  (2) The Minister shall cancel the registration of a person who is not carrying on a taxi business, effective after the last day of a fiscal year of the person, where

  • (a) the person is a small supplier and has filed with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to do so; and

  • (b) the person has been registered for a period of not less than one year ending on that day.

• Marginal note:Request for variation

  (2.1) Where a small supplier carrying on a taxi business files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the person varied to apply only to that business, the Minister shall so vary the registration, effective on a day that is the first day of a fiscal year of the person and that is at least one year after the registration of the person last became applicable to all commercial activities engaged in by the person in Canada.

• Marginal note:Request for cancellation

  (2.2) Where at any time that an approval granted under subsection 178.2(3) in respect of a direct seller is in effect, an independent sales contractor (within the meaning assigned by section 178.1) of the direct seller would be a small supplier if the approval had been in effect at all times before that time and the contractor files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the contractor cancelled, the Minister shall cancel the registration of the contractor.

• Marginal note:Request for cancellation

  (2.3) If, at any time when an approval granted under subsection 178(5) in respect of a network seller (as defined in subsection 178(1)) and each of its sales representatives (as defined in that subsection) is in effect, a sales representative of the network seller would be a small supplier if the approval had been in effect at all times before that time and the sales representative files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the sales representative cancelled, the Minister shall cancel the registration of the sales representative.

• Marginal note:Notice of cancellation or variation

  (3) If the Minister cancels or varies the registration of a person, the Minister must notify the person in writing of the cancellation or variation and its effective date.

• Marginal note:Group registration — notice of cancellation

  (4) If the Minister cancels the registration of a group,

  • (a) the Minister must notify in writing each member of the group and the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b) of the cancellation and its effective date; and

  • (b) each member of the group is deemed, for the purposes of this Part, to no longer be registered under this Subdivision as of the effective date of the cancellation.

• Marginal note:Group registration — notice of removal

  (5) If the Minister removes a particular person from the registration of a group,

  • (a) the Minister must notify in writing the particular person and the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b) of the removal and its effective date; and

  • (b) the particular person is deemed, for the purposes of this Part, to no longer be registered under this Subdivision as of the effective date of the removal.