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Underused Housing Tax Act (S.C. 2022, c. 5, s. 10)

Act current to 2024-04-01 and last amended on 2022-12-15. Previous Versions

PART 6Anti-avoidance

Marginal note:Definitions

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

    tax benefit

    tax benefit means a reduction, an avoidance or a deferral of an amount of tax or other amount payable by a person under this Act or an increase in an amount payable to a person under this Act. (avantage fiscal)

    tax consequences

    tax consequences to a person means the amount of tax or other amount payable by, or payable to, the person under this Act or any other amount that is relevant for the purposes of computing that amount. (attribut fiscal)

    transaction

    transaction includes an arrangement or event. (opération)

  • Marginal note:General anti-avoidance provision

    (2) If a transaction is an avoidance transaction, the tax consequences to a person must be determined as is reasonable in the circumstances in order to deny a tax benefit that, but for this section, would result directly or indirectly from that transaction or from a series of transactions that include that transaction.

  • Marginal note:Avoidance transaction

    (3) An avoidance transaction means any transaction

    • (a) that, but for this section, would result directly or indirectly in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit; or

    • (b) that is part of a series of transactions, which series, but for this section, would result directly or indirectly in a benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit.

  • Marginal note:Provision not applicable

    (4) For greater certainty, subsection (2) does not apply in respect of a transaction if it may reasonably be considered that the transaction would not result directly or indirectly in a misuse of the provisions of this Act or in an abuse having regard to the provisions of this Act (other than this section) read as a whole.

  • Marginal note:Determination of tax consequences

    (5) Without restricting the generality of subsection (2), in determining the tax consequences to a person, as is reasonable in the circumstances, in order to deny a tax benefit that would, but for this section, result directly or indirectly from an avoidance transaction

    • (a) the nature of any payment or other amount may be recharacterized; and

    • (b) the effects that would otherwise result from the application of other provisions of this Act may be ignored.

  • Marginal note:Exception

    (6) Despite any other provision of this Act, the tax consequences to any person following the application of this section must only be determined through an assessment, reassessment or additional assessment involving the application of this section.

Marginal note:Definitions

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

    parameter change

    parameter change means a change in any of the following:

    • (a) a rate;

    • (b) words or expressions defined in a provision of this Act. (modification d’un paramètre)

    tax benefit

    tax benefit has the meaning assigned by subsection 12(1). (avantage fiscal)

    transaction

    transaction has the meaning assigned by subsection 12(1). (opération)

  • Marginal note:Parameter change — transactions

    (2) If

    • (a) a transaction, or a series of transactions, involving property is made between two or more persons, all of whom are not dealing with each other at arm’s length at the time any of those transactions are made,

    • (b) the transaction, any of the transactions in the series of transactions or the series of transactions would in the absence of this section result directly or indirectly in a tax benefit to one or more of the persons involved in the transaction or series of transactions, and

    • (c) it may not reasonably be considered that the transaction, or the series of transactions, has been undertaken or arranged primarily for bona fide purposes other than to obtain a tax benefit, arising from a parameter change, for one or more of the persons involved in the transaction or series of transactions,

    the amount of tax or other amount payable by, or payable to, any of those persons under this Act, or any other amount that is relevant for the purposes of computing that amount must be determined as is reasonable in the circumstances in order to deny the tax benefit to any of those persons.

  • Marginal note:Denying benefit on transactions

    (3) Despite any other provision of this Act, a tax benefit must only be denied under subsection (2) through an assessment, reassessment or additional assessment.

PART 7Administration and Enforcement

DIVISION 1Payments

Marginal note:Large payments

14 Every person that is required under this Act to pay an amount to the Receiver General must, if the amount is $50,000 or more, make the payment to the account of the Receiver General at

  • (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

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

  • Marginal note:Small amounts payable

    (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 Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil.

Marginal note:Execution of returns, etc.

16 A return (other than a return filed by way of electronic filing under section 9), certificate or other document made under this Act by a person that is not an individual must 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.

Marginal note:Extension of time

  • 17 (1) The Minister may at any time extend, in writing, the time for filing a return under this Act.

  • Marginal note:Effect of extension

    (2) If the Minister extends the time within which a person must file a return under subsection (1),

    • (a) the return must be filed within the time so extended;

    • (b) any amount payable that the person is required to declare in the return must be paid within the time so extended;

    • (c) any interest payable under section 23 on the amount referred to in paragraph (b) must be calculated as though the amount were required to be paid on the day on which the extended time expires; and

    • (d) any penalty payable under section 47 in respect of the return must be calculated as though the return were required to be filed on the day on which the extended time expires.

Marginal note:Statutory recovery rights

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

DIVISION 2Administration and Officers

Marginal note:Minister’s duty

19 The Minister must administer and enforce this Act and the Commissioner may exercise the powers and perform the duties of the Minister under this Act.

Marginal note:Staff

  • 20 (1) The persons that are necessary to administer and enforce this Act are to be appointed, employed or engaged in the manner authorized by law.

  • Marginal note:Delegation of powers

    (2) The Minister may authorize any person employed or engaged by the Canada Revenue Agency or who occupies a position of responsibility in the Canada Revenue Agency to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial power or duty of the Minister, under this Act.

Marginal note:Administration of oaths

21 Any person, if designated by the Minister for the purpose, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act, and every person so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.

Marginal note:Inquiry

  • 22 (1) The Minister may, for any purpose related to the administration or enforcement of this Act, authorize any person, whether or not the person is an officer of the Canada Revenue Agency, to make any inquiry that the Minister may deem necessary with reference to anything relating to the administration or enforcement of this Act.

  • Marginal note:Appointment of hearing officer

    (2) If the Minister, under subsection (1), authorizes a person to make an inquiry, the Minister must forthwith apply to the Tax Court of Canada for an order appointing a hearing officer before whom the inquiry will be held.

  • Marginal note:Powers of hearing officer

    (3) For the purposes of an inquiry authorized under subsection (1), a hearing officer appointed under subsection (2) in relation to the inquiry has all the powers conferred on a commissioner by sections 4 and 5 of the Inquiries Act and that may be conferred on a commissioner under section 11 of that Act.

  • Marginal note:When powers to be exercised

    (4) A hearing officer appointed under subsection (2) in relation to an inquiry must exercise the powers conferred on a commissioner by section 4 of the Inquiries Act in relation to any persons that the person authorized to make the inquiry considers appropriate for the conduct of the inquiry, but the hearing officer is not to exercise the power to punish any person unless, on application by the hearing officer, a judge, including a judge of a county court, certifies that the power may be exercised in the matter disclosed in the application and the applicant has given to the person, in respect of whom the power is proposed to be exercised, 24 hours notice of the hearing of the application, or any shorter notice that the judge considers reasonable.

  • Marginal note:Rights of witnesses

    (5) Any person who gives evidence in an inquiry authorized under subsection (1) is entitled to be represented by counsel and, on request made by the person to the Minister, to receive a transcript of that evidence.

  • Marginal note:Rights of person investigated

    (6) Any person whose affairs are investigated in the course of an inquiry authorized under subsection (1) is entitled to be present and to be represented by counsel throughout the inquiry unless the hearing officer appointed under subsection (2), on application by the Minister or a person giving evidence, orders otherwise in relation to the whole or any part of the inquiry, on the ground that the presence of the person and the person’s counsel, or either of them, would be prejudicial to the effective conduct of the inquiry.

DIVISION 3Interest

Marginal note:Specified rate of interest

  • 23 (1) For the purposes of every provision of this Act that requires interest to be computed at a specified rate

    • (a) if the interest is to be paid or applied on an amount payable by the Minister to a person, the specified rate in effect during a calendar quarter — being a period of three months beginning on the first day of January, April, July or October — is

    • (b) in any other case, the specified rate in effect during a calendar quarter is

  • Marginal note:Compound interest

    (2) If a person fails to pay an amount to the Receiver General as and when required under this Act, the person must pay to the Receiver General interest on the amount. The interest must be compounded daily at the specified rate and computed for the period that begins on the first day after the day on or before which the amount was required to be paid and that ends on the day the amount is paid.

  • Marginal note:Payment of interest that is compounded

    (3) For the purposes of subsection (2), 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 at the end of the particular day, and, if the person has not paid the interest so computed 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:Payment before specified date

    (4) If the Minister has served a demand that a person pay on or before a specified date 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 date, the Minister must waive any interest that would otherwise apply in respect of the amount demanded for the period beginning on the first day following the date of the demand and ending on the day of payment.

Marginal note:Compound interest on amounts owed by Her Majesty

24 Interest must be compounded daily at the specified rate on amounts owed under this Act by Her Majesty in right of Canada to a person and computed for the period beginning on the first day after the day on which the amount is required to be paid by Her Majesty in right of Canada and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty in right of Canada.

Marginal note:Interest if Act amended

25 For greater certainty, if a provision of an Act amends this Act and provides that the amendment comes into force on, or applies as of, a particular day that is before the day on which the provision is assented to, the provisions of this Act that relate to the calculation and payment of interest apply in respect of the amendment as though the provision had been assented to on the particular day.

Marginal note:Waiving or reducing interest

  • 26 (1) The Minister may, on or before the day that is 10 calendar years after the end of a calendar year of a person, or on application by the person on or before that day, waive, cancel or reduce any interest payable by the person under this Act on an amount that is required to be paid by the person under this Act in respect of the calendar year.

  • Marginal note:Interest where amounts waived or reduced

    (2) If a person has paid an amount of interest and the Minister has waived or reduced under subsection (1) any portion of the amount, the Minister must pay interest at the specified rate on an amount equal to the portion of the amount that was waived or reduced beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that subsection and ending on the day on which the portion is paid to the person.

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