Section 84 — Excise Tax Act: Garnishment

Where the Minister has knowledge or suspects that a person is or is about to become liable to make a payment to a tax debtor, the Minister may, by a notice served personally or by registered or certified mail, require that person to pay to the Receiver General, on account of the tax debtor’s liability under this Act, the whole or any part of the moneys that would otherwise, within ninety days after the service of the notice, be paid or become payable to the tax debtor. Where the Minister has, under subsection (1), required a person to pay to the Receiver General moneys otherwise payable to a tax debtor, the requirement applies in respect of all moneys that are or will become payable by that person to the tax debtor within the ninety day period referred to in that subsection until the tax debtor’s liability under this Act is satisfied. Where the Minister has knowledge or suspects that a person has received, or is about to receive, an assignment of a book debt or of a negotiable instrument of title to a book debt from a tax debtor, the Minister may, by a notice served personally or by registered or certified mail, require that person to pay to the Receiver General, on account of the tax debtor’s liability under this Act, out of any moneys received by that person on account of the debt within ninety days after service of the notice, an amount equal to the amount of any tax, penalty, interest or other sum payable under this Act in respect of the transaction giving rise to the debt assigned. Any person on whom a notice is served under this section shall pay the Receiver General according to the terms thereof and, in default of payment, is liable to pay to Her Majesty an amount equal to the lesser of in the case of a person served under subsection (1), the amount of the tax debtor’s liability under this Act, and the amount payable to the tax debtor by that person, and in the case of a person served under subsection (3), the amount of any tax, penalty, interest or other sum payable under this Act in respect of the transaction giving rise to the debt assigned to that person, and the amount received by that person on account of the debt assigned after receipt of the notice. Any moneys paid by a person under subsection (4) shall, in addition to being applied to that person’s liability under this section, be applied on account of the tax debtor’s liability under this Act. The receipt by the Receiver General of moneys paid as required under this section is a good and sufficient discharge of the liability to the tax debtor to the extent of the amount received. In this section, tax debtor means a person by whom any tax, penalty, interest or other sum is payable under this Act. [Repealed, 2003, c. 15, s. 108]