Section 21.15 — Excise Tax Act: Security

A small undertaking that proposes to provide a taxable service in respect of which tax is or will be imposed by section 21.12 shall, if required by the Minister, provide security in accordance with subsection (2) for payment of the tax. The security to be provided by a small undertaking pursuant to subsection (1) shall be provided within the time fixed by the Minister, but not later than the day immediately preceding the day on which provision of the taxable service commences; be in an amount of not less than six per cent of the aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service, or where the aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service cannot be determined prior to the commencement of the service by the small undertaking, the aggregate of the amounts that, in accordance with the agreement between the small undertaking and that other person, are paid or payable by the small undertaking for the service, computed as of seven days prior to the commencement of the service or such later day as may be fixed by the Minister;

and be provided by a chartered bank or by depositing with the Minister a bond, acceptable to the Minister, of an incorporated guarantee company authorized to do business in Canada, or a bond or other security of or guaranteed by the Government of Canada. Notwithstanding that a bond of a guarantee company given under this section has been cancelled, the bond shall be deemed to remain in force in relation to taxable services provided or to be provided for an amount charged at the time of cancellation until all liabilities to pay amounts on account of tax, penalties, interest or other amounts in relation to such taxable services are discharged.