Section 21.33 — Excise Tax Act: Interpretation

For the purposes of this section, a licensee’s “instalment base” for a month is the lesser of the tax imposed by this Part that was collected or collectible by that licensee in that month, and the tax so collected or collectible in the last preceding month, for an accounting period is the lesser of the tax imposed by this Part that was collected or collectible by that licensee in that accounting period, and the tax so collected or collectible in the last preceding accounting period, and for any other period to which a return relates is the lesser of the tax imposed by this Part that was collected or collectible by that licensee in that period, and the tax so collected or collectible in the last preceding period multiplied by the ratio that the number of days in the period to which the return relates is to the number of days in the last preceding period; and a licensee is a “large taxpayer” at any particular time if the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act , and collected or collectible under Part II and this Part by that licensee in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time exceeded twelve million dollars, or the licensee was, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act ) and the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act , and collected or collectible under Part II and this Part by the group in that year exceeded twelve million dollars, and is not, at that time, authorized to make a return in accordance with a regulation made under paragraph 21.32(3)(b) or (c). A large taxpayer who is required to file a return and remit tax within the time prescribed by subsection 21.32(4) shall pay instalments on account of the tax in accordance with the following rules: in the case where the return is required to be made in accordance with subsection 21.32(1), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the month in which the tax was collected or became collectible, the first to be paid not later than the last day of that month and the second not later than the fifteenth day of the next following month;

and in the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(a), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the accounting period to which the return relates, the first to be paid not later than the last day of that accounting period and the second not later than the fifteenth day of the next following accounting period. A licensee, other than a large taxpayer, who is required to file a return and remit tax within the time prescribed by subsection 21.32(4) shall pay an instalment on account of the tax in accordance with the following rules: in the case where the return is required to be made in accordance with subsection 21.32(1), the licensee shall pay an instalment, equal to the licensee’s instalment base for the month in which the tax was collected or became collectible, not later than the twenty-first day of the next following month; in the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(a), the licensee shall pay an instalment, equal to the licensee’s instalment base for the accounting period to which the return relates, not later than the twenty-first day of the next following accounting period;

and in the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(b) or (c), the licensee shall pay an instalment, equal to the licensee’s instalment base for the period to which the return relates, not later than the twenty-first day of the month next following the end of that period. Subject to subsections (6) to (8), a large taxpayer who defaults in paying an instalment within the time prescribed by subsection (2) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable in the case of an instalment required to be paid not later than the last day of a month or an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, calculated on the amount by which one-half of the taxpayer’s instalment base for that month or accounting period exceeds the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day;

and in the case of an instalment required to be paid not later than the fifteenth day of a month or an accounting period, a penalty of one-quarter of one per cent and interest at one-half of the prescribed rate, calculated on the amount by which one-half of the taxpayer’s instalment base for the last preceding month or accounting period exceeds the amount by which the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day exceeds the lesser of the aggregate of all taxes on account of which the instalment was payable that were remitted not later than the last day of the last preceding month or accounting period, and one-half of the taxpayer’s instalment base for the last preceding month or accounting period. Subject to subsections (6) to (8), a licensee who defaults in paying an instalment within the time prescribed by subsection (3) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable in the case of an instalment required by paragraph (3)(a) or (b) to be paid not later than the twenty-first day of a month or an accounting period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by which the licensee’s instalment base for the last preceding month or accounting period exceeds the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day;

and in the case of an instalment required by paragraph (3)(c) to be paid not later than the twenty-first day of a month next following the end of a period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by which the licensee’s instalment base for that period exceeds the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day. No penalty or interest is payable under subsection (4) or (5) if the large taxpayer or other licensee liable to pay the instalment remits all taxes collected or collectible by the taxpayer or other licensee under this Part and, at the time of the remittance, the total penalty and interest payable in respect of the instalment is less than five dollars and in respect of all those taxes is less than ten dollars. A large taxpayer or other licensee who is liable to pay penalty or interest under subsection (4) or (5) in respect of a default in paying an instalment shall pay the penalty or interest within the time prescribed by subsection 21.32(4) for the remittance of the tax on account of which the instalment is payable. The Minister may, before or after the expiration of the time prescribed by subsection (2) or (3), extend in writing the time for paying an instalment, for any period within the time prescribed by subsection 21.32(4) for the remittance of the tax on account of which the instalment is payable, and where the Minister so extends the time the instalment shall be paid within the time as so extended; interest accrues under subsection (4) or (5), as the case may be, in respect of the instalment as if the time had not been so extended; no penalty accrues or shall be deemed to have accrued under subsection (4) or (5), as the case may be, in respect of the instalment before the expiration of the time as so extended; and penalty accrues under subsection (4) or (5), as the case may be, in respect of a default in paying an instalment within the time as so extended as if the default were a default referred to in that subsection.