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Select Luxury Items Tax Act (S.C. 2022, c. 10, s. 135)

Act current to 2024-04-01 and last amended on 2022-09-01. Previous Versions

PART 1Select Luxury Items Tax (continued)

DIVISION 5Registration, Reporting Periods, Returns and Requirement to Pay (continued)

Marginal note:Cancellation of registration

  •  (1) The Minister may, after giving a person that is registered under this Division reasonable written notice, cancel a registration of the person as a vendor in respect of a type of subject item under this Division if the Minister is satisfied that the registration is not required for the purposes of this Act.

  • Marginal note:Request for cancellation

    (2) If a person files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have a registration of the person as a vendor in respect of a type of subject item cancelled, the Minister must cancel the registration of the person if the Minister is satisfied that the registration is not required for the purposes of this Act.

  • Marginal note:Cancellation in prescribed circumstances

    (3) The Minister must cancel a registration of a person as a vendor in respect of a type of subject item under this Division in prescribed circumstances.

  • Marginal note:Notice of cancellation

    (4) If the Minister cancels a registration of a person under this Division, the Minister must notify the person of the cancellation and the effective date of the cancellation.

Marginal note:Security — registration

  •  (1) For the purposes of this Act, the Minister may require a person that applies to be registered, or that is required to be registered, under this Division to give and maintain security, in an amount determined by the Minister and subject to any terms and conditions that the Minister may specify, for the payment of any amount that is or may become payable by the person under this Act.

  • Marginal note:Security — importation

    (2) For the purposes of this Act, the Minister may require a person referred to in subsection 20(1) to give and maintain security, in an amount determined by the Minister and subject to any terms and conditions that the Minister may specify, for the payment of any amount that is or may become payable by the person under this Act, if the provisions of the Customs Act, the Customs Tariff or any other laws relating to customs under which security may be required do not apply to the payment of that amount.

  • Marginal note:Failure to comply

    (3) If, at any time, a person referred to in subsection (1) or (2) fails to give or maintain 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 to the person under this Act, the Excise Tax Act, the Excise Act, 2001 or Part 1 of the Greenhouse Gas Pollution Pricing Act, an amount not exceeding the amount determined by the formula

    A – B

    where

    A
    is the amount of security that would, at that time, be satisfactory to the Minister if it were given by the person in accordance with subsection (1) or (2), as the case may be; and
    B
    is the amount of security, if any, given and maintained by the person in accordance with subsection (1) or (2), as the case may be.
  • Marginal note:Amount deemed paid

    (4) The amount retained under subsection (3) is deemed to have been paid, at the time referred to in that subsection, by the Minister to the person, and to have been given, immediately after that time, by the person as security in accordance with subsection (1) or (2), as the case may be.

Marginal note:Reporting periods

  •  (1) For the purposes of this Act, a reporting period of a person is

    • (a) before 2023, the period that begins on September 1, 2022 and ends on December 31, 2022; and

    • (b) after 2022

      • (i) unless subparagraph (ii) applies, a calendar quarter, or

      • (ii) if prescribed conditions are met, a prescribed period.

  • Marginal note:Reporting period — registration or cancellation

    (2) Despite subsection (1), if at a particular time the Minister registers a person, or cancels a registration of a person, under this Division

    • (a) the particular reporting period of the person that includes the particular time ends on the day that includes the particular time; and

    • (b) a reporting period of the person begins on the day after the day that includes the particular time and ends on the day that is the last day of the calendar quarter that includes the particular time.

Marginal note:Filing of return

  •  (1) Every person that is registered or required to be registered under this Division must file a return with the Minister for each reporting period of the person. The return is to be filed on or before the last day of the first month after the end of the reporting period.

  • Marginal note:Filing of return — non-registered persons

    (2) Every person that is not registered and not required to be registered under this Division must file a return with the Minister for each reporting period of the person in which tax (other than tax under section 20) becomes payable by the person. The return is to be filed on or before the last day of the first month after the end of the reporting period.

  • Marginal note:Filing of return — regulations

    (3) Despite subsections (1) and (2), if prescribed circumstances exist, a return for a reporting period that is a prescribed reporting period is to be filed with the Minister in accordance with prescribed rules.

  • Marginal note:Filing not required — regulations

    (4) Despite subsections (1) and (2), if prescribed circumstances exist, a return for a reporting period that is a prescribed reporting period is not required to be filed.

Marginal note:Form and content

 Every return that is required to be filed under section 55 is to be made in prescribed form containing prescribed information and is to be filed in prescribed manner.

Marginal note:Net tax — obligation

  •  (1) Every person that is required to file a return under section 55 must, in the return, determine the net tax for the reporting period of the person for which the return is required to be filed.

  • Marginal note:Determination of net tax

    (2) Subject to this Act, the net tax for a particular reporting period of a person is, for the purposes of this Act, the positive or negative amount determined by the formula

    (A − B) + C

    where

    A
    is the total of all amounts, each of which is an amount of tax (other than tax under section 20) that becomes payable by the person in the particular reporting period;
    B
    is the total of all amounts, each of which is an amount of a rebate under Subdivision A of Division 4 payable by the Minister in respect of a reporting period and that is claimed by the person in the return under section 55 for the particular reporting period; and
    C
    is a prescribed amount.
  • Marginal note:Requirement to pay

    (3) If the net tax for a reporting period of a person is a positive amount, the person must pay that amount to the Receiver General on or before the day on or before which the return for the reporting period is required to be filed.

  • Marginal note:Rebate of net tax

    (4) If the net tax for a reporting period of a person is a negative amount, the person may claim in the return for the reporting period the amount of that net tax as a rebate for the reporting period payable to the person by the Minister. The Minister must pay the rebate to the person with all due dispatch after the return is filed.

  • Marginal note:Restriction — rebate of net tax

    (5) The Minister is not required to pay a rebate under subsection (4) to a person unless the Minister is satisfied that all information, that is contact information or that is information relating to the identification and business activities of the person, to be given by the person on any application for registration made by the person under this Division has been provided and is accurate.

  • Marginal note:Restriction — rebate of net tax

    (6) A rebate under subsection (4) is not to be paid to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and Part 1 of the Greenhouse Gas Pollution Pricing Act have been filed with the Minister.

  • Marginal note:Interest on rebate of net tax

    (7) If a rebate for a reporting period of a person is paid to the person under subsection (4), interest at the specified rate is to be paid to the person on the rebate for the period that begins on the day that is 30 days after the later of the day the return in which the rebate is claimed is filed with the Minister and the day following the last day of the reporting period and that ends on the day the rebate is paid.

Marginal note:Overpayment of rebate or interest

 If an amount is paid to, or applied to a liability of, a person as a rebate, or as interest, under this Act and the person is not entitled to the rebate or interest, as the case may be, or the amount paid or applied exceeds the rebate or interest, as the case may be, to which the person is entitled, the person must pay to the Receiver General an amount equal to the rebate, interest or excess, as the case may be, on the day the rebate, interest or excess, as the case may be, is paid to, or applied to a liability of, the person.

Marginal note:Information return

  •  (1) A person (other than a prescribed person) must file with the Minister an information return for a reporting period of the person if

    • (a) the person is required under section 55 to file a return for the reporting period;

    • (b) the person sells a subject item to a purchaser, the sale is completed during the reporting period, the taxable amount of the subject item determined under section 18 in respect of the sale exceeds the price threshold in respect of the subject item and

      • (i) an exemption certificate applies in respect of the sale in accordance with section 36,

      • (ii) tax under section 18 in respect of the sale of the subject item is payable by the purchaser, or

      • (iii) tax under section 18 is not payable by the person because of the application of subsection 19(3);

    • (c) the person imports a subject item, the subject item is accounted for in accordance with section 32 of the Customs Act at any time during the reporting period, the taxable amount of the subject item determined under section 20 in respect of the importation exceeds the price threshold in respect of the subject item and tax is not payable by the person under section 20 because of the application of subsection 21(3); or

    • (d) prescribed circumstances exist.

  • Marginal note:Information return — form and content

    (2) An information return in respect of a reporting period of a person that is required to be filed under this section must

    • (a) be made in prescribed form containing prescribed information;

    • (b) be filed with the Minister in prescribed manner on or before the last day of the first month after the end of the reporting period of the person;

    • (c) specify the identification number of each subject item that is sold by the person and in respect of which the following conditions are met:

      • (i) the sale of the subject item is completed during the reporting period,

      • (ii) the taxable amount of the subject item determined under section 18 in respect of the sale exceeds the price threshold in respect of the subject item, and

      • (iii) it is the case that

        • (A) an exemption certificate applies in respect of the sale in accordance with section 36,

        • (B) tax under section 18 in respect of the sale of the subject item is payable by the purchaser, or

        • (C) tax under section 18 is not payable by the person because of the application of subsection 19(3); and

    • (d) specify the identification number of each subject item that is imported by the person and in respect of which the following conditions are met:

      • (i) the subject item is accounted for in accordance with section 32 of the Customs Act at any time during the reporting period,

      • (ii) the taxable amount of the subject item determined under section 20 in respect of the importation exceeds the price threshold in respect of the subject item, and

      • (iii) tax is not payable by the person under section 20 because of the application of subsection 21(3).

  • Marginal note:Information return — regulations

    (3) If prescribed circumstances exist, an information return for a reporting period must be filed in accordance with prescribed rules.

PART 2Administration

DIVISION 1Miscellaneous

SUBDIVISION ATrustees, Receivers and Personal Representatives

Marginal note:Definitions

  •  (1) The following definitions apply in this section.

    bankrupt

    bankrupt has the same meaning as in section 2 of the Bankruptcy and Insolvency Act. (failli)

    business

    business includes a part of a business. (entreprise)

    receiver

    receiver means a person that

    • (a) under the authority of a debenture, bond or other debt security, of a court order or of an Act of Parliament or of the legislature of a province, is empowered to operate or manage a business or a property of another person;

    • (b) is appointed by a trustee under a trust deed in respect of a debt security to exercise the authority of the trustee to manage or operate a business or a property of the debtor under the debt security;

    • (c) is appointed by a bank or an authorized foreign bank, as those terms are defined in section 2 of the Bank Act, to act as an agent or mandatary of the bank in the exercise of the authority of the bank under subsection 426(3) of that Act in respect of property of another person;

    • (d) is appointed as a liquidator to liquidate the assets of a corporation or to wind up the affairs of a corporation; or

    • (e) is appointed as a committee, guardian, curator, tutor or mandatary in case of incapacity with the authority to manage and care for the affairs and assets of an individual who is incapable of managing those affairs and assets.

    It includes a person that is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person, but, if a person is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person, it does not include that creditor. (séquestre)

    relevant assets

    relevant assets of a receiver means

    • (a) if the receiver’s authority relates to all the properties, businesses, affairs and assets of a person, all those properties, businesses, affairs and assets; and

    • (b) if the receiver’s authority relates to only part of the properties, businesses, affairs or assets of a person, that part of the properties, businesses, affairs or assets. (actif pertinent)

    representative

    representative means a person, other than a trustee in bankruptcy or a receiver, that is administering, winding up, controlling or otherwise dealing with any property, business, estate or succession of another person. (représentant)

  • Marginal note:Trustee in bankruptcy — obligations

    (2) For the purposes of this Act, if on a particular day a person becomes a bankrupt,

    • (a) the trustee in bankruptcy, and not the person, is liable for the payment of any amount (other than an amount that relates solely to activities in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate) that is required to be paid by the person under this Act, during the period beginning on the day immediately after the day on which the trustee became the trustee in bankruptcy of the person and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act, except that

      • (i) the trustee is liable for the payment of any amount that is required to be paid by the person under this Act after the particular day in respect of reporting periods that ended on or before the particular day but only to the extent of the property of the person in possession of the trustee available to satisfy the liability,

      • (ii) the trustee is not liable for the payment of any amount for which a receiver is liable under subsection (3), and

      • (iii) the payment by the person of an amount in respect of the liability discharges the liability of the trustee to the extent of that amount;

    • (b) if, on the particular day, the person is registered under Division 5 of Part 1, the registration continues in relation to the activities of the person to which the bankruptcy relates as though the trustee in bankruptcy were registered under that Division in the same capacity as the person in respect of those activities and ceases to apply to the activities of the person in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate;

    • (c) the reporting periods of the person begin and end on the day on which they would have begun and ended if the bankruptcy had not occurred, except that

      • (i) the reporting period of the person during which the person becomes a bankrupt ends on the particular day and a new reporting period of the person in relation to the activities of the person to which the bankruptcy relates begins on the day immediately after the particular day, and

      • (ii) the reporting period of the person, in relation to the activities of the person to which the bankruptcy relates, during which the trustee in bankruptcy is discharged under the Bankruptcy and Insolvency Act ends on the day on which the discharge is granted;

    • (d) subject to paragraph (f), the trustee in bankruptcy must file with the Minister in the prescribed form and manner all returns in respect of the activities of the person to which the bankruptcy relates for the reporting periods of the person ending in the period beginning on the day immediately after the particular day and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act and that are required under this Act to be filed by the person, as if those activities were the only activities of the person;

    • (e) subject to paragraph (f), if the person has not on or before the particular day filed a return required under this Act to be filed by the person for a reporting period of the person ending on or before the particular day, the trustee in bankruptcy must, unless the Minister waives in writing the requirement for the trustee to file the return, file with the Minister in the prescribed form and manner a return for that reporting period of the person; and

    • (f) if there is a receiver with authority in respect of any business, property, affairs or assets of the person, the trustee in bankruptcy is not required to include in any return any information that the receiver is required under subsection (3) to include in a return.

  • Marginal note:Receiver’s obligations

    (3) For the purposes of this Act, if on a particular day a receiver is vested with authority to manage, operate, liquidate or wind up any business or property, or to manage and care for the affairs and assets, of a person,

    • (a) if the relevant assets of the receiver are a part and not all of the person’s businesses, properties, affairs or assets, the relevant assets of the receiver are deemed to be, throughout the period during which the receiver is acting as receiver of the person, separate from the remainder of the businesses, properties, affairs or assets of the person as though the relevant assets were businesses, properties, affairs or assets, as the case may be, of a separate person;

    • (b) the person and the receiver are jointly and severally, or solidarily, liable for the payment of any amount that is required to be paid by the person under this Act before or during the period during which the receiver is acting as receiver of the person to the extent that the amount can reasonably be considered to relate to the relevant assets of the receiver or to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person at the time the amount became payable except that

      • (i) the receiver is liable for the payment of any amount that is required to be paid by the person under this Act before that period only to the extent of the property of the person in possession or under the control and management of the receiver after

        • (A) satisfying the claims of creditors whose claims ranked, on the particular day, in priority to the claim of the Crown in respect of the amount, and

        • (B) paying any amounts that the receiver is required to pay to a trustee in bankruptcy of the person,

      • (ii) the person is not liable for the payment of any amount payable by the receiver, and

      • (iii) the payment by the person or the receiver of an amount in respect of the liability discharges the joint and several, or solidary, liability to the extent of that amount;

    • (c) the reporting periods of the person begin and end on the day on which they would have begun and ended if the vesting had not occurred, except that

      • (i) the reporting period of the person, in relation to the relevant assets of the receiver, during which the receiver begins to act as receiver of the person, ends on the particular day and a new reporting period of the person in relation to the relevant assets begins on the day immediately after the particular day, and

      • (ii) the reporting period of the person, in relation to the relevant assets, during which the receiver ceases to act as receiver of the person, ends on the day on which the receiver ceases to act as receiver of the person;

    • (d) the receiver must file with the Minister in the prescribed form and manner all returns in respect of the relevant assets of the receiver for reporting periods ending in the period during which the receiver is acting as receiver and that are required under this Act to be made by the person, as if the relevant assets were the only businesses, properties, affairs and assets of the person; and

    • (e) if the person has not on or before the particular day filed a return required under this Act to be filed by the person for a reporting period of the person ending on or before the particular day, the receiver must, unless the Minister waives in writing the requirement for the receiver to file the return, file with the Minister in the prescribed form and manner a return for that reporting period that relates to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person during that reporting period.

  • Marginal note:Certificates for receivers and representatives

    (4) Every receiver and representative that controls property of another person that is required to pay any amount under this Act must, before distributing the property to any person, obtain a certificate from the Minister certifying that the following amounts have been paid or that security for the payment of them has, in accordance with this Act, been accepted by the Minister:

    • (a) all amounts that are payable by the other person under this Act in respect of the reporting period during which the distribution is made, or any previous reporting period; and

    • (b) all amounts that are, or can reasonably be expected to become, payable under this Act by the representative or receiver in that capacity in respect of the reporting period during which the distribution is made, or any previous reporting period.

  • Marginal note:Liability for failure to obtain certificate

    (5) Any receiver or representative that distributes property without obtaining a certificate in respect of the amounts referred to in subsection (4) is personally liable for the payment of those amounts to the extent of the value of the property so distributed.

 

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