Section 21.24 — Excise Tax Act: Imposition of tax

There shall be imposed, levied and collected a tax at the rate of eleven per cent on the amount charged for a taxable service acquired from a licensee, payable by the person charged for the service at the time the amount charged is paid or payable, whichever is the earlier. Notwithstanding subsection (1), where long distance telephone service is acquired and paid for by means of a coin-operated telephone and the amount charged for the service exceeds fifty cents, the tax payable in respect of the service shall be calculated at the rate of five cents for every fifty cents or part thereof charged for the service in excess of twenty-four cents. Notwithstanding subsection (1), where a paging service is acquired, the tax payable in respect of the service shall be calculated at the rate of thirty cents, in respect of each paging terminal device by means of which the service is acquired, for each month or fraction of a month in which the service is acquired. Notwithstanding subsection (1), where telecommunication service between a place in Canada and a place outside Canada is provided by means of a telecommunication line, channel or other facility that is dedicated to the sole use of a person, the tax payable in respect of the service shall be calculated on the amount charged for the service only to the extent that the amount charged is for service provided in Canada.