C-49 1 37 49-50-51 Elizabeth II 2001-2002

An Act to implement certain provisions of the budget tabled in Parliament on December 10, 2001

Budget Implementation Act, 2001

Budget Implementation, 2001 2002 3 27 9 2002 90178

SUMMARY

PART 1

Part 1 enacts the Canadian Air Transport Security Authority Act , which establishes the Canadian Air Transport Security Authority to carry out the mandate described therein, including taking actions for the effective and efficient screening of persons who access aircraft or restricted areas through screening points. The Authority is also responsible for ensuring consistency in the delivery of screening across Canada. The Authority is managed by a board of directors composed of eleven members appointed by the Governor in Council on the recommendation of the Minister of Transport.

The Authority may authorize an operator of an aerodrome designated by regulation to deliver screening on its behalf at that aerodrome, subject to any terms and conditions that it establishes. The Authority is subject to

Part X of the Financial Administration Act except for derogations set out in

Part 1 of this enactment.

PART 2

Part 2 enacts the Air Travellers Security Charge Act , which implements the Air Travellers Security Charge announced in Budget 2001. The Charge will take effect on April 1, 2002 and apply in respect of emplanements in Canada. The Charge will be payable by purchasers of air travel and collected by registered air carriers or their agents at the time of sale.

PART 3

Part 3 amends the Employment Insurance Act and the Employment Insurance (Fishing) Regulations to extend the benefit period and the entitlement to special benefits for maternity claimants who, without the amendment, could not receive all of their special benefits. It also amends the Act and the Regulations to extend the benefit period and the period during which a claimant may receive parental benefits, if the claimant’s child is hospitalized. It also makes related amendments to the Canada Labour Code to give employees an option as to when their parental leave begins.

PART 4

Part 4 implements the Income Tax Act measures announced in the Budget of December 10, 2001. These include provisions that

allow apprentice vehicle mechanics to deduct a portion of the cost of new tools acquired after 2001

allow individuals to claim a deduction to offset the inclusion in income of tuition assistance for adult basic education received under certain government programs

extend the education tax credit to students who receive financial assistance for post-secondary education under certain government training programs

provide for tax-deferred intergenerational transfers of commercial woodlot operations that are farming businesses

make permanent the special tax assistance for donations of certain securities to public charities

make entitlements to the goods and services tax credit more responsive to changes in family circumstances

allow small businesses to defer for at least six months corporate tax instalments that would otherwise become payable in the first quarter of 2002

clarify the application of

section 115.2 of the Act to partnerships and their members

allow full deductibility of the costs of meals provided at a temporary work camp established to provide room and board to employees at a construction work site

PART 5

Part 5 enacts the Canada Fund for Africa Act , which establishes a program to provide contributions for the economic and social development of Africa.

PART 6

Part 6 enacts the Canada Strategic Infrastructure Fund Act , which establishes a program. The object of the program is to provide contributions for the carrying out of large-scale strategic infrastructure projects that contribute to economic growth or quality of life in Canada and advance Canada’s objectives with respect to infrastructure.

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Short title

This Act may be cited as the Budget Implementation Act, 2001 .

PART 1

AIR TRANSPORT SECURITY

Canadian Air Transport Security Authority Act

The Canadian Air Transport Security Authority Act is enacted as follows:

An Act to establish the Canadian Air Transport Security Authority

SHORT TITLE

Short title

This Act may be cited as the Canadian Air Transport Security Authority Act .

INTERPRETATION

Definitions

The

definitions in this

section apply in this Act.

Authority

Administration

Authority means the Canadian Air Transport Security Authority established by subsection 5(1).

authorized aerodrome operator

exploitant d’aérodrome autorisé

authorized aerodrome operator means an operator of an aerodrome designated by the regulations who is authorized by the Authority under

section 7 to deliver screening.

board

conseil

board means the board of directors of the Authority established by

section 10.

Minister

ministre

Minister means the Minister of Transport.

screening

contrôle

screening means screening, including a search, performed in the manner and under the circumstances prescribed in the aviation security regulations or in security measures made under the Aeronautics Act .

screening contractor

fournisseur de services de contrôle

screening contractor means a contractor retained by the Authority or an authorized aerodrome operator to deliver screening.

screening officer

agent de contrôle

screening officer means a screening officer who is employed by the Authority, an authorized aerodrome operator or a screening contractor to perform screening.

screening point

point de contrôle

screening point means a point where screening is delivered, either directly or through a screening contractor, by or on behalf of the Authority in order to meet the requirements of the aviation security regulations or security measures made under the Aeronautics Act .

Interpretation

(1) Unless the context otherwise requires, words and expressions used in this Act have the same meaning as in the Aeronautics Act and the aviation security regulations made under it.

Air transport security

(2) Unless specifically provided for, nothing in this Act affects air transport security responsibilities imposed under the Aeronautics Act on persons other than the Authority.

Inconsistencies with other Acts

(3) In the event of any inconsistency between the provisions of this Act and the provisions of

Part X of the Financial Administration Act , the provisions of this Act prevail.

ROLE OF THE MINISTER

Minister responsible

(1) The Minister is the appropriate minister for the Authority for the purposes of

Part X of the Financial Administration Act .

Directions to the Authority

(2) The Minister may issue a written direction to the Authority, addressed to the Chairperson, on any matter related to air transport security.

Directions binding

(3) The Authority and its directors, officers and employees of the Authority must comply with a direction issued under this section.

Directions in Authority’s best interest

(4) Compliance with the direction is deemed to be in the best interests of the Authority.

Directions not statutory instruments

(5) A direction is not a statutory instrument for the purposes of the Statutory Instruments Act .

ESTABLISHMENT AND MANDATE OF THE AUTHORITY

Establishment

(1) There is hereby established a body corporate to be called the Canadian Air Transport Security Authority.

Agent of Her Majesty

(2) The Authority is for all purposes an agent of Her Majesty in right of Canada.

Headquarters

(3) The headquarters of the Authority must be at such place in Canada as may be designated by the Governor in Council.

Financial year

(4) The Authority’s financial year begins on April 1 of one year and ends on March 31 of the following year, unless the Governor in Council directs otherwise.

Mandate

(1) The mandate of the Authority is to take actions, either directly or through a screening contractor, for the effective and efficient screening of persons who access aircraft or restricted areas through screening points, the property in their possession or control and the belongings or baggage that they give to an air carrier for transport. Restricted areas are those established under the Aeronautics Act at an aerodrome designated by the regulations or at any other place that the Minister may designate.

Other responsibilities

(2) The Authority is responsible for ensuring consistency in the delivery of screening across Canada and for any other air transport security function provided for in this Act. It is also responsible for air transport security functions that the Minister may assign to it, subject to any terms and conditions that the Minister may establish.

Carrying out mandate

(3) The Authority must carry out its responsibilities under this

section in the public interest, having due regard to the interest of the travelling public. Those responsibilities are a governmental function.

Authorizing aerodrome operators to deliver screening

(1) The Authority may authorize the operator of an aerodrome designated by the regulations to deliver screening on its behalf at that aerodrome, either directly or through a screening contractor, subject to any terms and conditions that the Authority may establish.

Limitation

(2) The Authority may not authorize the operator to deliver screening unless it is satisfied that the operator can meet the terms and conditions established by the Authority and deliver screening efficiently and effectively, having regard to the following factors:

(

a) the cost and service advantages;

(

b) the operator’s capability to deliver screening; and

(

c) how screening, if done by the operator, would be integrated with other security functions at the aerodrome.

Payments

(3) The Authority may, in the terms and conditions of an authorization, agree to make payments to the authorized aerodrome operator to compensate them for the reasonable costs incurred by them in delivering screening.

Not an agent of Her Majesty

(4) An authorized aerodrome operator does not become an agent of Her Majesty by reason only of delivering screening under an authorization.

Criteria for screening contractors and officers

(1) The Authority must establish criteria respecting the qualifications, training and performance of screening contractors and screening officers, that are as stringent as or more stringent than the standards established in the aviation security regulations made under the Aeronautics Act .

Certification

(2) The Authority must certify all screening contractors and officers against the criteria established under subsection (1).

Varying, suspending or cancelling certification

(3) If the Authority determines that a screening contractor or officer no longer meets the criteria in respect of which they were certified, the Authority may vary, suspend or cancel their certification.

Contracting

(4) The Authority may establish contracting policies specifying minimum requirements respecting wages and terms and conditions of employment that persons must meet in order to be awarded a contract by or on behalf of the Authority for the delivery of screening. The Authority must establish such policies if required to do so by the Minister.

Contracts for services or procurement

(5) The Authority must establish policies and procedures for contracts for services and for procurement that ensure that the Authority’s operational requirements are always met and that promote transparency, openness, fairness and value for money in purchasing.

LEGAL POWERS OF THE AUTHORITY

Legal powers

In carrying out its mandate, the Authority has, subject to this Act, the capacity, rights, powers and privileges of a natural person.

STRUCTURE OF THE AUTHORITY

Board

Establishment

(1) There shall be a board of directors of the Authority consisting of eleven directors, including the Chairperson, appointed by the Governor in Council on the recommendation of the Minister.

Directors nominated by airline industry and aerodrome operators

(2) Two of the directors must be nominees submitted by the representatives of the airline industry designated under

section 11 whom the Minister considers suitable for appointment as directors, and two must be nominees submitted by the representatives of aerodrome operators designated under that

section whom the Minister considers suitable for appointment as directors.

Tenure of directors

(3) Each director holds office during pleasure for any term of not more than five years that will ensure, as far as possible, the expiry in any one year of the terms of office of not more than one half of the directors.

Vacancy on board

(4) If the Governor in Council has not appointed all of the directors referred to in subsection (1) but the number appointed constitutes a quorum, the directors who have been appointed may exercise all the powers of the board.

Designation

The Minister may designate representatives or classes of representatives of the airline industry and of aerodrome operators to propose nominees to the Minister for appointment to the board.

Qualifications of directors

(1) The directors must be persons who, in the opinion of the Governor in Council, have the experience and the capacity required for discharging their duties and functions.

Persons not eligible for appointment

(2) No person may be appointed or continue as a director of the Authority who

(

a) is not a Canadian citizen or a permanent resident under the Immigration and Refugee Protection Act ;

(

b) is a member of the Senate or House of Commons or a member of a legislature;

(

c) is employed on a full-time basis in the public service of Canada or of a province; or

(

d) is a mayor, councillor, officer or employee of a municipality.

Renewal of term

The Governor in Council may renew the term of office of any director for a maximum of one further term of not more than five years.

Part-time office

(1) The directors must carry out the duties and functions of their office on a part-time basis.

Directors’ fees

(2) The directors must be paid by the Authority the remuneration fixed by the Governor in Council for each day that they attend meetings of the board or any of its committees or perform other duties required of them as directors of the Authority.

Expenses

The directors are entitled to be paid reasonable travel and living expenses incurred by them in the course of performing their duties while absent from their ordinary place of residence.

Chairperson

Powers, duties and functions

The Chairperson must preside at meetings of the board and exercise any powers and perform any duties and functions that are assigned by the by-laws of the Authority.

Chief Executive Officer

Appointment and tenure

The board may appoint the chief executive officer of the Authority to hold office during pleasure for a term of not more than five years. The appointment of the chief executive officer is renewable for one or more subsequent terms of not more than five years.

Role of chief executive officer

The chief executive officer is responsible for the day-to-day management of the Authority.

Incapacity or vacancy

In the event of the absence or incapacity of, or vacancy in the office of, the chief executive officer, the board may appoint an employee of the Authority to exercise the powers and perform the duties and functions of the chief executive officer.

Exclusion

The chief executive officer may not be appointed as a director.

Full-time office

(1) The chief executive officer must carry out the duties and functions of his or her office on a full-time basis.

Remuneration

(2) The Authority must pay the chief executive officer the remuneration fixed by the Governor in Council.

Expenses

The chief executive officer is entitled to be paid reasonable travel and living expenses incurred in the course of performing his or her duties while absent from his or her ordinary place of work.

ROLE OF THE BOARD

Role of the board

The board is responsible for the management of the activities and affairs of the Authority.

By-laws

The board may make by-laws respecting the management and conduct of the activities and affairs of the Authority and the carrying out of the duties and functions of the board, including by-laws establishing

(

a) a code of ethics for the directors, officers and employees of the Authority;

(

b) committees of the board, including a human resources committee and an audit committee; and

(

c) contracting policies for the Authority.

STAFF

Staff

The Authority may employ any officers, employees or agents and retain the services of any technical or professional advisers that it considers necessary for the proper conduct of its activities and affairs and may fix the terms and conditions of their engagement.

Accident compensation

The Chairperson, the chief executive officer and the directors, officers and employees of the Authority are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the public service of Canada for the purposes of any regulations made under

section 9 of the Aeronautics Act .

Safety of the public

The provision of screening at an aerodrome is conclusively deemed for all purposes to be a service that is necessary to prevent immediate and serious danger to the safety of the public.

CONTRACTS, AGREEMENTS AND ARRANGEMENTS

Contracts with Her Majesty

(1) The Authority may enter into contracts, agreements or other arrangements with Her Majesty as if it were not an agent of Her Majesty.

Agreements

(2) The Authority may enter into agreements with Her Majesty represented by the Solicitor General of Canada or by the Royal Canadian Mounted Police for the provision of services, including services on aircraft, and may make payments in respect of those services.

Policing

The Authority may, with the approval of the Treasury Board, enter into agreements with designated airport authorities as defined in the Airport Transfer Miscellaneous Matters Act , for the purposes of contributing to the costs of policing incurred by that airport authority in carrying out its responsibilities.

Provision of space

Every operator of an aerodrome designated by the regulations must provide to the Authority, and maintain free of charge, such space at the aerodrome with services reasonably required by the Authority as the Authority and the operator agree on or, in the absence of agreement, such space at the aerodrome with services reasonably required by the Authority as the Minister determines to be necessary to enable the Authority to carry out its mandate.

AUDIT

Audit

The Auditor General of Canada is the auditor of the Authority.

SECURITY-RELATED INFORMATION

Protection of information

(1) Nothing in this Act,

Part X of the Financial Administration Act or the Statutory Instruments Act shall be construed as requiring the tabling before either House of Parliament of any information the publication of which, in the opinion of the Minister, would be detrimental to air transport security or public security.

Requirement of confidentiality

(2) The Authority, authorized aerodrome operators and screening contractors must keep confidential any information the publication of which, in the opinion of the Minister, would be detrimental to air transport security or public security, including financial and other data that might reveal such information.

FIVE-YEAR REVIEW

Review of Act in five years

(1) A review of the provisions and the operation of this Act must be completed by the Minister during the fifth year after this

section comes into force.

Tabling of report

(2) The Minister must cause a report of the results of the review to be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the report has been completed.

REGULATIONS

Regulations by Governor in Council

The Governor in Council may make regulations

(

a) designating aerodromes for the purposes of this Act; and

(

b) requiring the Authority to provide to the Minister such information as the Minister may request.

TRANSITIONAL PROVISIONS

Initial powers

Despite any other provision of this Act, pending the initial appointment of the directors, the Chairperson and any directors who have been appointed have all the powers of the board even if their number does not constitute a quorum.

Transfer of screening equipment

(1) The Governor in Council may require the Air Transport Security Corporation to transfer to the Authority, on such terms as the Governor in Council considers appropriate, good title in any or all screening equipment or other assets owned by the Corporation immediately before the coming into force of this section, free and clear of all liens and encumbrances, for such consideration as the Governor in Council may determine, having regard to the amount that the Corporation paid to acquire it as well as other relevant factors.

Other transfers to Authority

(2) The Governor in Council may require the Air Transport Security Corporation to transfer to the Authority, on such terms as the Governor in Council considers appropriate, any rights, titles, interests or obligations under any contract entered into by the Corporation that is specified by the Minister, despite any contractual restriction on the transfer of those rights, titles, interests or obligations.

Transfer to Authority from air carriers

(3) The Governor in Council may require air carriers to transfer to the Authority, on such terms as the Governor in Council considers appropriate, their rights, titles, interests or obligations under any contract respecting screening specified by the Minister, despite any contractual restriction on the transfer of those rights, titles, interests or obligations.

Transfer of contracts

(4) The transfer to the Authority of responsibility for any existing contracts under this

section does not affect any rights, responsibilities or obligations acquired under the Canada Labour Code by the contractors, their employees or any trade union certified to represent those employees.

Transfer of screening equipment

(5) The Governor in Council may transfer to the Authority any screening equipment owned by Her Majesty, including explosive detection equipment, on such terms and conditions as the Governor in Council considers appropriate.

Transfer of Her Majesty’s rights, etc., under contract

(6) The Governor in Council may transfer to the Authority, on such terms as the Governor in Council considers appropriate, Her Majesty’s rights, titles, interests or obligations under any contract entered into by the Minister before the coming into force of this

section respecting a subject-matter that is within the mandate of the Authority.

Acceptance of transfers

(7) The Authority must accept any transfer made under this section.

Appropriation

The amount of 340 million dollars is appropriated to the Minister from the Consolidated Revenue Fund for payment to the Authority for operating and capital expenditures incurred by it in the fiscal year 2002-2003 in carrying out its mandate, including payments made to authorized aerodrome operators and contributions made to designated airport authorities.

Agreements to continue delivering screening

The Authority may enter into an agreement with an air carrier in order to contribute to the costs of screening at an aerodrome designated by regulation, if the costs are incurred by the air carrier after the day on which this

section comes into force and before the day on which the Authority is required under the Aeronautics Act to deliver that screening.

Financial documents

(1) Despite the period prescribed for submitting a corporate plan, an operating budget and a capital budget under the Financial Administration Act , the Authority must, within six months after the coming into force of this section, submit to the Minister in accordance with that Act a corporate plan, an operating budget and a capital budget for its first financial year.

Expenditure of funds

(2) Until the initial corporate plan, operating budget and capital budget for the Authority have been approved, the Authority may, despite sections 122 to 124 of the Financial Administration Act , expend funds, with the approval of the Minister, that the board considers to be essential for the Authority to become fully operational in a timely manner.

Consequential Amendment

R.S., c. F-11

Financial Administration Act

Part I of

Schedule III to the Financial Administration Act is amended by adding the following in alphabetical order:

Canadian Air Transport Security Authority Administration canadienne de la sûreté du transport aérien

Coming into Force

Coming into force

Sections 2 and 3 or any provisions of the Act enacted by

section 2 come into force on a day or days to be fixed by order of the Governor in Council.

PART 2

AIR SECURITY CHARGES

Air Travellers Security Charge Act

The Air Travellers Security Charge Act is enacted as follows:

An Act to implement an air travellers security charge

SHORT TITLE

Short title

This Act may be cited as the Air Travellers Security Charge Act .

INTERPRETATION

Definitions

The

definitions in this

section apply in this Act.

accredited representative

représentant accrédité

accredited representative means a person who is entitled under the Foreign Missions and International Organizations Act to the tax exemptions specified in

Article 34 of the Convention set out in

Schedule I to that Act or in

Article 49 of the Convention set out in

Schedule II to that Act.

Agency

Agence

Agency means the Canada Customs and Revenue Agency established by subsection 4(1) of the Canada Customs and Revenue Agency Act .

air carrier

transporteur aérien

air carrier means a person who carries on a business of transporting individuals by air.

air transportation service

service de transport aérien

air transportation service means all of the transportation of an individual by air, by one or more air carriers, included in a continuous journey of the individual.

assessment

cotisation

assessment means an assessment under this Act and includes a reassessment.

bank

banque

bank means a bank as defined in

section 2 of the Bank Act or an authorized foreign bank, as defined in that section, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act.

charge

droit

charge , except in the definition security interest and

section 74, means a charge payable under

section 11.

chargeable emplanement

embarquement assujetti

chargeable emplanement means an embarkation by an individual at a listed airport on an aircraft operated by a particular air carrier, except if

(

a) the embarkation

(

i) is for the purpose of transferring from a particular flight to a connecting flight and

(

A) in the case of an air transportation service acquired in Canada, the particular flight included a chargeable emplanement by the individual,

(

B) the individual embarked on the particular flight outside Canada, or

(

C) the particular flight included an embarkation that, because of this subparagraph, is not a chargeable emplanement,

(ii)

is a reboarding of the aircraft to resume a direct flight,

(iii)

is a boarding of an aircraft that is being used to transport, on a direct flight, the individual to a destination in Canada that is not a listed airport, or

(iv)

results from the provision of emergency or ground services to an aircraft or its occupants;

(

b) the individual is

(

i) an accredited representative,

(ii)

an infant (other than an infant who has been issued a ticket that entitles the infant to occupy a seat for a part of the service that includes a chargeable emplanement),

(iii)

an employee

(

A) of the particular carrier, or of another air carrier that is a subsidiary wholly-owned corporation (in this subparagraph having the same meaning as in the Income Tax Act ) of the particular carrier or of which the particular carrier is a subsidiary wholly-owned corporation, and

(

B) whose embarkation is in the course of that employment,

(iv)

a prescribed individual;

(

c) the embarkation is

(

i) on an aircraft whose maximum certified take-off weight does not exceed 2 730 kg,

(ii)

on an aircraft referred to in subsection 56(1) of the Canada Transportation Act ,

(iii)

in the course of a service listed in, or prescribed under, subsection 56(2) of the Canada Transportation Act , or

(iv)

in the course of an air ambulance service; or

(

d) the embarkation is made in prescribed circumstances.

Commissioner

commissaire

Commissioner means the Commissioner of Customs and Revenue appointed under

section 25 of the Canada Customs and Revenue Agency Act .

continental zone

zone continentale

continental zone means

(

a) Canada;

(

b) the United States (except Hawaii); and

(

c) the Islands of St. Pierre and Miquelon.

continuous journey

voyage continu

continuous journey means a journey of an individual

(

a) for which one ticket is issued; or

(

b) for which two or more tickets are issued if

(

i) there is no stopover between any of the legs of the journey for which separate tickets are issued,

(ii)

all the tickets are issued by the same issuer or by two or more issuers through one agent acting on behalf of all such issuers, and

(iii)

evidence satisfactory to the Minister that there is no stopover between any of the legs of the journey for which separate tickets are issued is

(

A) maintained by the issuer or agent if the tickets are issued at the same time, or

(

B) submitted by the issuer or agent if the tickets are issued at different times.

data

données

data means representations, in any form, of information or concepts.

designated air carrier

transporteur aérien autorisé

designated air carrier means an air carrier that is authorized by the Canadian Transportation Agency under

Part II of the Canada Transportation Act to operate a domestic service or an international service, but does not include an air carrier that provides services that include only emplanements that are described in paragraph (

c) or (

d) of the definition chargeable emplanement .

fiscal month

mois d’exercice

fiscal month means a fiscal month as determined under

section 16.

Her Majesty

Sa Majesté

Her Majesty means Her Majesty in right of Canada.

judge

juge

judge , in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court.

listed airport

aéroport désigné

listed airport means an airport listed in the

schedule and a prescribed airport.

Minister

ministre

Minister means the Minister of National Revenue.

month

mois

month means a period beginning on a particular day in a calendar month and ending on

(

a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day; or

(

b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month.

person

personne

person means an individual, partnership, corporation, trust or estate, or a body that is a society, union, club, association, commission or other organization of any kind whatever.

prescribed

Version anglaise seulement

prescribed means

(

a) in the case of a form or the manner of filing a form, authorized by the Minister;

(

b) in the case of the information to be given on or with a form, specified by the Minister; and

(

c) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation.

record

registre

record means any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device.

secured creditor

créancier garanti

secured creditor means

(

a) a particular person who has a security interest in the property of another person; or

(

b) a person who acts for or on behalf of the particular person with respect to the security interest and includes

(

i) a trustee appointed under a trust deed relating to a security interest,

(ii)

a receiver or receiver-manager appointed by the particular person or appointed by a court on the application of the particular person,

(iii)

a sequestrator, or

(iv)

any other person performing a function similar to that of a person referred to in any of subparagraphs (

i) to (iii).

security interest

garantie

security interest means, for the purposes of the definition secured creditor ,

section 15 and subsection 75(3), any interest in property that secures payment or performance of an obligation and includes an interest created by or arising out of a debenture, mortgage, hypothec, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatever, however or whenever arising, created, deemed to arise or otherwise provided for.

stopover

escale

stopover means the disembarkation of an individual from an aircraft other than a disembarkation

(

a) that is solely for the purpose of transferring to a connecting flight;

(

b) that is in the course of a direct flight if the individual reboards the aircraft to resume the flight; or

(

c) that results from the provision of emergency or ground services to an aircraft or its occupants.

Tax Court

Cour de l’impôt

Tax Court means the Tax Court of Canada.

Meaning of administration or enforcement of this Act

For greater certainty, a reference in this Act to administration or enforcement of this Act includes the collection of any amount payable under this Act.

Deemed issuance of ticket

If no ticket is issued for all or part of a journey, and it is reasonable to consider that a ticket would ordinarily be issued by a person for the journey or for that part, as the case may be, such a ticket is, except for the purposes of paragraph 11(2)( c ), deemed to have been issued by the person.

Separate journeys deemed

A journey that would, if this Act were read without reference to this section, be a continuous journey of an individual that includes more than one chargeable emplanement by the individual at a particular listed airport is, despite any other provision of this Act, deemed

(

a) not to be a continuous journey; and

(

b) to be a series of separate continuous journeys each of which commences with the second and any subsequent chargeable emplanement from the particular listed airport.

APPLICATION

Binding on Her Majesty

This Act is binding on Her Majesty in right of Canada or a province.

Application to air transportation services

This Act applies in respect of

(

a) the acquisition, on or before March 31, 2002, of an air transportation service for which any consideration is paid or becomes payable after March 31, 2002 and that includes a chargeable emplanement

(

i) made after March 31, 2002, if the service is acquired in Canada, or

(ii)

made after May 31, 2002, if the service is acquired outside Canada; and

(

b) the acquisition after March 31, 2002 of an air transportation service that includes a chargeable emplanement

(

i) made after March 31, 2002, if the service is acquired in Canada, or

(ii)

made after May 31, 2002, if the service is acquired outside Canada.

ADMINISTRATION AND OFFICERS

Minister’s duty

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

Officers and employees

(1) The officers, employees and agents that are necessary to administer and enforce this Act shall be appointed, employed or engaged in the manner authorized by law.

Delegation of powers

(2) The Minister may authorize an officer or agent or a class of officers or agents to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial power or duty of the Minister, under this Act.

Administration of oaths

Any officer, 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 officer so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.

CHARGE PAYABLE

Charge payable

(1) Every person who acquires from a designated air carrier all or part of an air transportation service that includes a chargeable emplanement shall pay to Her Majesty a charge as determined under this Act in respect of the service.

When charge payable

(2) The charge in respect of the air transportation service is payable

(

a) if any consideration is paid or payable for the service, at the time any consideration for the service is first paid or becomes payable;

(

b) if no consideration is paid or payable for the service, at the time a ticket is issued for the service; or

(

c) if no consideration is paid or payable for the service and no ticket is issued for the service, at the time of emplanement.

Amount of charge if service acquired in Canada

(1) Subject to subsection (3), if an air transportation service is acquired in Canada, the amount of the charge in respect of the service is

( a )

$11.22 for each chargeable emplanement included in the service, to a maximum of $22.43, if

(

i) the service does not include transportation to a destination outside the continental zone, and

(ii)

tax under subsection 165(1) of the Excise Tax Act is required to be paid in respect of the service;

( b )

$12.00 for each chargeable emplanement included in the service, to a maximum of $24.00, if

(

i) the service does not include transportation to a destination outside the continental zone, and

(ii)

tax under subsection 165(1) of the Excise Tax Act is not required to be paid in respect of the service; or

( c )

$24.00, if the service includes transportation to a destination outside the continental zone.

Amount of charge if service acquired outside Canada

(2) Subject to subsection (3), if an air transportation service is acquired outside Canada, the amount of the charge in respect of the service is

( a )

$11.22 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $22.43, if

(

i) the service does not include transportation to a destination outside the continental zone, and

(ii)

tax under subsection 165(1) of the Excise Tax Act is required to be paid in respect of the service;

( b )

$12.00 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $24.00, if

(

i) the service does not include transportation to a destination outside the continental zone, and

(ii)

tax under subsection 165(1) of the Excise Tax Act is not required to be paid in respect of the service; or

( c )

$24.00, if the service includes transportation to a destination outside the continental zone.

Prescribed amount of charge

(3) The amount of the charge in respect of a prescribed air transportation service is the lesser of

(

a) the amount that is determined in respect of the service under subsection (1) or (2), as the case may be, and

(

b) the amount that is prescribed, or determined in accordance with prescribed rules, in respect of the service.

Air transportation service deemed to be acquired in Canada

(1) An air transportation service that is acquired outside Canada is deemed to have been acquired in Canada and not outside Canada if any consideration for the service is paid

(

a) by transmission from within Canada to a place outside Canada, by mail or electronic means, of cash, a cheque, a money order, a credit or debit card payment or any similar means of payment, to a ticket office, travel agency or air carrier or any representative of any of them;

(

b) by delivery of an amount to an agency located within Canada for transmission to a ticket office, travel agency, air carrier or any representative of any of them located outside Canada; or

(

c) by any other arrangement with a person outside Canada for the benefit or convenience of a person who is resident in Canada.

Charter flights

(2) If an air transportation service that begins in Canada is acquired outside Canada by a person in the course of a charter operation, the service is deemed to have been acquired in Canada and not outside Canada.

COLLECTION OF CHARGE

Duty of designated air carrier to collect charge

(1) Subject to subsections (2) and (3), every designated air carrier from whom all or part of an air transportation service is acquired by a person who is required by this Act to pay a charge in respect of that service shall, as an agent of Her Majesty, collect the charge not later than the time the charge becomes payable by the person.

Multiple carriers — service acquired in Canada

(2) If an air transportation service acquired in Canada is comprised of transportation of an individual by air by two or more designated air carriers, any charge that is payable in respect of the service shall be collected

(

a) if all of the tickets for the service are issued by a designated air carrier, by that carrier; or

(

b) in any other case, by the designated air carrier operating the aircraft on which the individual first makes a chargeable emplanement.

Issuing carrier deemed to be supplier of service

(3) If a ticket for an air transportation service acquired in Canada is issued to a person by a designated air carrier that does not provide any part of the air transportation service, the air transportation service is deemed to have been acquired by the person from that designated air carrier.

Multiple carriers — service acquired outside Canada

(4) If an air transportation service acquired outside Canada is comprised of transportation of an individual by air by two or more designated air carriers, any charge that is payable in respect of the service shall be collected by the designated air carrier operating the first aircraft that transports the individual to a destination outside Canada and on which the individual makes a chargeable emplanement included in the service.

Joint and several or solidary liability

(5) If a designated air carrier issues a ticket and accepts consideration on behalf of another designated air carrier for an air transportation service acquired outside Canada in respect of which the other carrier is required to collect a charge, those carriers are jointly and severally or solidarily liable for all obligations under this Act arising from, or as a consequence of, the acquisition of the service or any failure to collect or pay the charge.

Trust for amounts collected

(1) Every person who collects an amount as or on account of a charge is deemed, for all purposes and despite any security interest (other than a prescribed security interest) in the amount, to hold the amount in trust for Her Majesty, separate and apart from the property of the person and from property held by any secured creditor of the person that, but for a security interest, would be property of the person, until the amount is paid to the Receiver General or withdrawn under subsection (3).

Amounts collected before bankruptcy

(2) Subsection (1) does not apply, at or after the time a person becomes a bankrupt (within the meaning of the Bankruptcy and Insolvency Act ), to any amounts that, before that time, were collected or became collectible by the person as or on account of a charge.

Withdrawal from trust

(3) A person who holds amounts in trust by reason of subsection (1) may withdraw from the amounts any amount refunded by the person under

section 32.

Extension of trust

(4) Despite any other provision of this Act, any other enactment of Canada (except the Bankruptcy and Insolvency Act ), any enactment of a province or any other law, if at any time an amount deemed by subsection (1) to be held by a person in trust for Her Majesty is not remitted to the Receiver General or withdrawn in the manner and at the time provided under this Part, property of the person and property held by any secured creditor of the person that, but for a security interest, would be property of the person, equal in value to the amount so deemed to be held in trust, is deemed

(

a) to be held, from the time the amount was collected by the person, in trust for Her Majesty, separate and apart from the property of the person, whether or not the property is subject to a security interest, and

(

b) to form no part of the estate or property of the person from the time the amount was collected, whether or not the property has in fact been kept separate and apart from the estate or property of the person and whether or not the property is subject to a security interest

and is property beneficially owned by Her Majesty despite any security interest in the property or in the proceeds thereof, and the proceeds of the property shall be paid to the Receiver General in priority to all security interests.

GENERAL PROVISIONS CONCERNING CHARGES AND OTHER AMOUNTS PAYABLE

Fiscal Month

Determination of fiscal months

The fiscal months of a designated air carrier shall be determined in accordance with the following rules:

(

a) if fiscal months of the carrier have been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of

Part IX of that Act, each of those fiscal months is a fiscal month of the carrier for the purposes of this Act;

(

b) if fiscal months of the carrier have not been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of

Part IX of that Act, the carrier may choose, at the time of registration under

section 17, as their fiscal months for the purposes of this Act, fiscal months that meet the requirements set out in subsection 243(2) of the Excise Tax Act ; and

(

c) if paragraph (

a) does not apply and the carrier has not chosen their fiscal months under paragraph ( b ), each calendar month is a fiscal month of the carrier for the purposes of this Act.

Returns and Payments of Charges and Other Amounts

Registration

(1) Every designated air carrier that is required to collect a charge shall register with the Minister in the prescribed form and manner before the end of the first fiscal month in which the carrier collects or is required to collect charges.

Returns and payments

(2) Every designated air carrier that is registered or is required to register shall, not later than the last day of the first month after each fiscal month of the carrier,

(

a) file a return with the Minister, in the prescribed form and manner containing all prescribed information, for that fiscal month;

(

b) calculate, in the return, the total of

(

i) all charges required to be collected by the carrier during that fiscal month other than such a charge that was collected by the carrier before that fiscal month,

(ii)

all amounts each of which is a charge collected by the carrier during that fiscal month at a time before the charge became payable under subsection 11(2) if the time at which the charge becomes so payable is after the end of that fiscal month, and

(iii)

all other amounts collected as or on account of charges by the carrier during that fiscal month that were not included in a calculation under subparagraph (

i) or (ii) for a previous fiscal month; and

(

c) pay an amount equal to that total to the Receiver General.

Amount collected as charge by person not required to collect

Every person who collects an amount as or on account of a charge and who is not required to pay it to the Receiver General under subsection 17(2) shall, without delay, pay that amount to the Receiver General and report the matter to the Minister in the prescribed form and manner.

Set-off of refunds

If, at any time, a designated air carrier files a return under

section 17 in which the carrier reports an amount that is required to be paid under this Act by it and the carrier claims a refund payable to it under this Act at that time, in the return or in another return, or in a separate application filed under this Act with the return, the carrier is deemed to have paid at that time, and the Minister is deemed to have refunded at that time, an amount equal to the lesser of the amount required to be paid and the amount of the refund.

Large payments

Every person who is required under this Act to pay an amount to the Receiver General shall, 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 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 mortgages on real property or hypothecs on immovables.

Small amounts owing

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

Small amounts payable

(2) If, at any time, the total of all amounts payable by the Minister to a designated air carrier under this Act does not exceed $2.00, the Minister is not required to pay any of the amounts payable. The Minister may apply those amounts against a liability of the carrier.

Authority for separate returns

(1) A designated air carrier that engages in one or more activities in separate branches or divisions may file an application, in the prescribed form and manner, with the Minister for authority to file separate returns and applications for refunds under this Act in respect of a branch or division specified in the application.

Authorization by Minister

(2) On receipt of the application, the Minister may, in writing, authorize the designated air carrier to file separate returns and applications for refunds in relation to the specified branch or division, subject to any conditions that the Minister may at any time impose, if the Minister is satisfied that

(

a) the branch or division can be separately identified by reference to the location of the branch or division or the nature of the activities engaged in by it; and

(

b) separate records, books of account and accounting systems are maintained in respect of the branch or division.

Revocation of authorization

(3) The Minister may revoke an authorization if

(

a) the designated air carrier, in writing, requests the Minister to revoke the authorization;

(

b) the designated air carrier fails to comply with any condition imposed in respect of the authorization or any provision of this Act;

(

c) the Minister is no longer satisfied that the requirements of subsection (2) in respect of the designated air carrier are met; or

(

d) the Minister considers that the authorization is no longer required.

Notice of revocation

(4) If the Minister revokes an authorization, the Minister shall send a notice in writing of the revocation to the designated air carrier and shall specify in the notice the effective date of the revocation.

Meaning of electronic filing

(1) For the purposes of this section, electronic filing means using electronic media in a manner specified in writing by the Minister.

Electronic filing of return

(2) A designated air carrier that is required to file with the Minister a return under this Act, and that meets the criteria specified in writing by the Minister for the purposes of this section, may file the return by way of electronic filing.

Deemed filing

(3) For the purposes of this Act, if a designated air carrier files a return by way of electronic filing, the return is deemed to be a return in the prescribed form filed with the Minister on the day the Minister acknowledges acceptance of it.

Execution of returns, etc.

A return (other than a return filed by way of electronic filing under

section 23) or other document made under this Act by a person that is not an individual shall 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. If the person is a corporation or an association or organization that has duly elected or appointed officers, the president, vice-president, secretary and treasurer, or other equivalent officers, of the corporation, association or organization, are deemed to be so duly authorized.

Extension of time

The Minister may at any time extend, in writing, the time for filing a return or providing information under this Act.

Demand for return

The Minister may, by a demand served personally or by registered or certified mail, require a designated air carrier to file, within any reasonable time that may be stipulated in the demand, a return under this Act for any period that may be designated in the demand.

Interest

Compound interest on amounts not paid when required

(1) If a person fails to pay an amount, other than an amount of penalty under subsection 53(1), to the Receiver General as and when required under this Act, the person shall pay to the Receiver General interest on the amount. The interest shall be compounded daily at the prescribed 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.

Payment of interest that is compounded

(2) For the purposes of subsection (1), 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 shall be added to the unpaid amount at the end of the particular day.

Compound interest on amounts owed by Her Majesty

Interest shall be compounded daily at the prescribed rate on amounts owed by Her Majesty 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 and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty.

Application of interest provisions if Act amended

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.

Waiving or reducing interest

The Minister may at any time waive or reduce any interest payable by a person under this Act.

Refunds

Statutory recovery rights

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 as or on account of, or that has been taken into account by Her Majesty as, an amount payable under this Act.

Refund of charge if service not provided

(1) A designated air carrier may refund or credit an amount to a person if

(

a) the carrier collected the amount from the person as or on account of a charge in respect of an air transportation service acquired by the person;

(

b) the person was required by this Act to pay a charge in respect of the service; and

(

c) the service

(

i) was not used by any person before all rights to be provided the transportation by air included in the service expired, or

(ii)

was used only partially before all rights to be provided the transportation by air included in the service expired if the part that was used would not, by itself, be subject to a charge.

Refund of charge collected in error

(2) A designated air carrier that has collected from a person an amount as or on account of a charge in excess of the charge that was collectible by the carrier from the person may refund or credit the excess to that person.

Issuance of document evidencing refund

(3) A designated air carrier that refunds or credits an amount to a person in accordance with subsection (1) or (2) within two years after the day the amount was collected shall, within a reasonable time, issue to the person a document containing information specified by the Minister.

Deduction of refund

(4) A designated air carrier that has refunded or credited an amount under subsection (1) or (2) within two years after the day the amount was collected and that has issued to a person a document in accordance with subsection (3) may deduct the amount of the refund or credit from the amount payable by the carrier under subsection 17(2) for the fiscal month of the carrier in which the document is issued to the person, to the extent that the amount of the charge has been included by the carrier in determining the amount payable by the carrier under subsection 17(2) for the fiscal month or a preceding fiscal month of the carrier.

Payment in error

(1) The Minister may pay a refund to a person

(

a) if the person paid an amount in excess of the amount that was payable by that person under this Act; or

(

b) if the person has paid to a designated air carrier an amount as or on account of a charge

(

i) in respect of an air transportation service that was not used by any person before all rights to be provided the transportation by air included in the service expired, or

(ii)

in respect of an air transportation service that was used only partially before all rights to be provided the transportation by air included in the service expired if the part that was used would not, by itself, be subject to a charge.

Amount of refund

(2) The amount of a refund payable by the Minister is, if paragraph (1)(

a) applies, the amount of the excess referred to in that paragraph and, if paragraph (1)(

b) applies, the amount paid as or on account of the charge.

Restriction

(3) A refund under this

section in respect of an amount shall not be paid to a person to the extent that

(

a) the amount was taken into account as an amount required to be paid by the person in respect of one of their fiscal months and the Minister has assessed the person for the month under

section 39; or

(

b) the amount was an amount assessed under

section 39.

Application for refund

(4) A refund of an amount shall not be paid to a person unless the person files with the Minister an application for the refund in the prescribed form and manner within two years after the person paid the amount.

Restriction on refunds, etc.

(1) A refund of an amount under this Act shall not be paid to a person to the extent that it can reasonably be regarded that

(

a) the amount has previously been refunded, remitted, applied or paid to that person under this or any other Act of Parliament;

(

b) the person has applied for a refund, payment or remission of the amount under any other Act of Parliament; or

(

c) the amount has been or will be refunded to the person under

section 32.

Single application

(2) Only one application may be made under this Act for a refund with respect to any matter.

Restriction re trustees

If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a refund under this Act that the bankrupt was entitled to claim before the appointment shall not be paid after the appointment unless all returns required under this Act to be filed for fiscal months of the bankrupt ending before the appointment have been filed and all amounts required under this Act to be paid by the bankrupt in respect of those fiscal months have been paid.

Overpayment of refunds, etc.

(1) If an amount is paid to, or applied to a liability of, a person as a refund under this Act and the person is not entitled to the amount or the amount paid or applied exceeds the refund or other payment to which the person is entitled, the person shall pay to the Receiver General an amount equal to the refund, payment or excess on the day the amount is paid to, or applied to a liability of, the person.

Effect of reduction of refund, etc.

(2) For the purpose of subsection (1), if a refund or other payment has been paid to a person in excess of the amount to which the person was entitled and the amount of the excess has, by reason of

section 34, reduced the amount of any other refund or other payment to which the person would, but for the payment of the excess, be entitled, the person is deemed to have paid the amount of the reduction to the Receiver General.

Records and Information

Keeping records

(1) Every person who collects or is required to collect a charge shall keep all records that are necessary to determine whether they have complied with this Act.

Minister may specify information

(2) The Minister may specify in writing the form a record is to take and any information that the record must contain.

Language and location of record

(3) Unless otherwise authorized by the Minister, a record shall be kept in Canada in English or French.

Electronic records

(4) Every person required under this Act to keep a record who does so electronically shall ensure that all equipment and software necessary to make the record intelligible are available during the retention period required for the record.

Inadequate records

(5) If a person fails to keep adequate records for the purposes of this Act, the Minister may, in writing, require the person to keep any records that the Minister may specify, and the person shall keep the records specified by the Minister.

General period for retention

(6) Every person who is required to keep records shall retain them until the expiry of six years after the end of the year to which they relate or for any other period that may be prescribed.

Objection or appeal

(7) If a person who is required under this Act to keep records serves a notice of objection or is a party to an appeal or reference under this Act, the person shall retain every record that pertains to the subject-matter of the objection, appeal or reference until the objection, appeal or reference is finally disposed of.

Demand by Minister

(8) If the Minister is of the opinion that it is necessary for the administration or enforcement of this Act, the Minister may, by a demand served personally or by registered or certified mail, require any person required under this Act to keep records to retain those records for any period that is specified in the demand, and the person shall comply with the demand.

Permission for earlier disposal

(9) A person who is required under this Act to keep records may dispose of them before the expiry of the period during which they are required to be kept if written permission for their disposal is given by the Minister.

Requirement to provide information

(1) Despite any other provision of this Act, the Minister may, by a notice served personally or by registered or certified mail, require a person resident in Canada or a person who is not resident in Canada but who carries on business in Canada to provide any information or record.

Notice

(2) The notice shall set out

(

a) a reasonable period of not less than 90 days for the provision of the information or record;

(

b) a description of the information or record being sought; and

(

c) the consequences under subsection (7) to the person of any failure to provide the information or record being sought within the period set out in the notice.

Review of information requirement

(3) The person on whom a notice of a requirement is served may, within 90 days after the service of the notice, apply to a judge for a review of the requirement.

Powers on review

(4) On hearing an application in respect of a requirement, a judge may

(

a) confirm the requirement;

(

b) vary the requirement if satisfied that it is appropriate in the circumstances to do so; or

(

c) set aside the requirement if satisfied that it is unreasonable.

Requirement not unreasonable

(5) For the purposes of subsection (4), a requirement to provide information or a record shall not be considered to be unreasonable solely because the information or record is under the control of or available to a person who is not resident in Canada, if that person is related, for the purposes of the Income Tax Act , to the person served with the notice of the requirement.

Time during consideration not to count

(6) The period between the day on which an application for the review of a requirement is made and the day on which the review is decided shall not be counted in the computation of

(

a) the period set out in the notice of the requirement; or

(

b) the period within which an assessment may be made under

section 42.

Consequence of failure

(7) If a person fails to comply substantially with a notice served under subsection (1) and the notice is not set aside under subsection (4), any court having jurisdiction in a civil proceeding relating to the administration or enforcement of this Act shall, on the motion of the Minister, prohibit the introduction by that person of any information or record described in that notice.

Assessments

Assessment

(1) The Minister may assess a person for any charge or other amount payable by the person under this Act and may, despite any previous assessment covering, in whole or in part, the same matter, vary the assessment, reassess the person assessed or make any additional assessments that the circumstances require.

Liability not affected

(2) The liability of a person to pay an amount under this Act is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

Minister not bound

(3) The Minister is not bound by any return, application or information provided by or on behalf of any person and may make an assessment despite any return, application or information provided or not provided.

Refund on reassessment

(4) If a person has paid an amount assessed under this

section in respect of a fiscal month and the amount paid exceeds the amount determined on reassessment to have been payable by the person in respect of that fiscal month, the Minister shall refund to the person the amount of the excess and, for the purpose of

section 28, the refund is deemed to have been required to be paid on the day on which the amount was paid to the Minister.

Determination of refunds

(5) In making an assessment, the Minister may take into account any refund payable to the person being assessed under this Act. If the Minister does so, the person is deemed to have applied for the refund under this Act on the day the notice of assessment is sent.

Assessment of refund

(1) On receipt of an application made by a person for a refund under this Act, the Minister shall, without delay, consider the application and assess the amount of the refund, if any, payable to the person.

Reassessment

(2) The Minister may reassess or make an additional assessment of the amount of a refund despite any previous assessment of the amount of the refund.

Payment

(3) If on assessment under this

section the Minister determines that a refund is payable to a person, the Minister shall pay the refund to the person.

Restriction

(4) A refund shall not be paid until the person has filed with the Minister all returns or other records that are required to be filed under this Act.

Interest

(5) If a refund is paid to a person, the Minister shall pay interest at the prescribed rate to the person on the refund for the period beginning on the day that is 30 days after the day on which the application for the refund is filed with the Minister and ending on the day on which the refund is paid.

Notice of assessment

(1) After making an assessment under this Act, the Minister shall send to the person assessed a notice of the assessment.

Payment of remainder

(2) If the Minister has assessed a person for an amount, any portion of that amount then remaining unpaid is payable to the Receiver General as of the date of the notice of assessment.

Limitation period for assessments

(1) Subject to subsections (2) to (4), no assessment in respect of any charge or other amount payable by a person under this Act shall be made more than four years after it became payable by the person under this Act.

Exception where objection or appeal

(2) A variation of an assessment, or a reassessment, in respect of any charge or other amount payable under this Act by a person may be made at any time if the variation or reassessment is made

(

a) to give effect to a decision on an objection or appeal; or

(

b) with the written consent of an appellant to dispose of an appeal.

Exception where neglect or fraud

(3) An assessment in respect of any matter may be made at any time if the person to be assessed has, in respect of that matter,

(

a) made a misrepresentation that is attributable to their neglect, carelessness or wilful default; or

(

b) committed fraud with respect to a return or an application for a refund filed under this Act.

Exception where waiver

(4) An assessment in respect of any matter specified in a waiver filed under subsection (5) may be made at any time within the period specified in the waiver unless the waiver has been revoked under subsection (6), in which case an assessment may be made at any time during the six months that the waiver remains in effect.

Filing waiver

(5) Any person may, within the time otherwise limited by subsection (1) for an assessment, waive the application of that subsection by filing with the Minister a waiver in the prescribed form specifying the period for which, and the matter in respect of which, the person waives the application of that subsection.

Revoking waiver

(6) Any person who has filed a waiver may revoke it by filing with the Minister a notice of revocation of the waiver in the prescribed form and manner. The waiver remains in effect for six months after the notice is filed.

Objections to Assessment

Objection to assessment

(1) Any person who has been assessed and who objects to the assessment may, within 90 days after the date of the notice of the assessment, file with the Minister a notice of objection in the prescribed form and manner setting out the reasons for the objection and all relevant facts.

Issue to be decided

(2) A notice of objection shall

(

a) reasonably describe each issue to be decided;

(

b) specify in respect of each issue the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and

(

c) provide the facts and reasons relied on by the person in respect of each issue.

Late compliance

(3) Despite subsection (2), if a notice of objection does not include the information required under paragraph (2)(

b) or (

c) in respect of an issue to be decided that is described in the notice, the Minister may, in writing, request the person to provide the information, and that paragraph is deemed to be complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister.

Limitation on objections

(4) Despite subsection (1), if a person has filed a notice of objection to an assessment (in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (8) as a result of the notice of objection, unless the earlier assessment was made in accordance with an order of a court vacating, varying or restoring an assessment or referring an assessment back to the Minister for reconsideration and reassessment, the person may object to the particular assessment in respect of an issue

(

a) only if the person complied with subsection (2) in the notice with respect to that issue; and

(

b) only with respect to the relief sought in respect of that issue as specified by the person in the notice.

Application of subsection (4)

(5) Subsection (4) does not limit the right of the person to object to the particular assessment in respect of an issue that was part of the particular assessment and not part of the earlier assessment.

Limitation on objections

(6) Despite subsection (1), no objection may be made by a person in respect of an issue for which the right of objection has been waived in writing by the person.

Acceptance of objection

(7) The Minister may accept a notice of objection even though it was not filed in the prescribed form and manner.

Consideration of objection

(8) On receipt of a notice of objection, the Minister shall, without delay, reconsider the assessment and vacate or confirm it or make a reassessment.

Waiving reconsideration

(9) If, in a notice of objection, a person who wishes to appeal directly to the Tax Court requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration.

Notice of decision

(10) After reconsidering an assessment under subsection (8) or confirming an assessment under subsection (9), the Minister shall notify the person objecting to the assessment of the Minister’s decision by registered or certified mail.

Extension of time by Minister

(1) If no objection to an assessment is filed under

section 43 within the time limited under this Act, a person may make an application to the Minister to extend the time for filing a notice of objection and the Minister may grant the application.

Contents of application

(2) An application must set out the reasons why the notice of objection was not filed within the time limited under this Act for doing so.

How application made

(3) An application must be made by delivering or mailing, to the Chief of Appeals in a Tax Services Office or Taxation Centre of the Agency, the application accompanied by a copy of the notice of objection.

Defect in application

(4) The Minister may accept an application even though it was not made in accordance with subsection (3).

Duties of Minister

(5) On receipt of an application, the Minister shall, without delay, consider the application and grant or refuse it, and shall notify the person of the decision by registered or certified mail.

Date of objection if application granted

(6) If an application is granted, the notice of objection is deemed to have been filed on the day of the decision of the Minister.

Conditions — grant of application

(7) No application shall be granted under this

section unless

(

a) the application is made within one year after the expiry of the time limited under this Act for objecting; and

(

b) the person demonstrates that

(

i) within the time limited under this Act for objecting, the person

(

A) was unable to act or to give a mandate to act in their name, and

(

B) had a bona fide intention to object to the assessment,

(ii)

given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and

(iii)

the application was made as soon as circumstances permitted it to be made.

Appeal

Extension of time by Tax Court

(1) A person who has made an application under

section 44 may apply to the Tax Court to have the application granted after either

(

a) the Minister has refused the application; or

( b )

90 days have elapsed after the application was made and the Minister has not notified the person of the Minister’s decision.

When application may not be made

(2) No application may be made after the expiry of 30 days after the decision referred to in subsection 44(5) was mailed to the person.

How application made

(3) An application must be made by filing in the Registry of the Tax Court, in accordance with the Tax Court of Canada Act , three copies of the documents delivered or mailed under subsection 44(3).

Copy to the Commissioner

(4) The Tax Court must send a copy of the application to the Commissioner.

Powers of Tax Court

(5) The Tax Court may dispose of an application by dismissing or granting it and, in granting it, the Court may impose any terms that it considers just or order that the notice of objection be deemed to be a valid objection as of the date of the order.

When application to be granted

(6) No application shall be granted under this

section unless

(

a) the application under subsection 44(1) was made within one year after the expiry of the time limited under this Act for objecting; and

(

b) the person demonstrates that

(

i) within the time limited under this Act for objecting, the person

(

A) was unable to act or to give a mandate to act in their name, and

(

B) had a bona fide intention to object to the assessment,

(ii)

given the reasons set out in the application under this

section and the circumstances of the case, it would be just and equitable to grant the application, and

(iii)

the application under subsection 44(1) was made as soon as circumstances permitted it to be made.

Appeal to Tax Court

(1) Subject to subsection (2), a person who has filed a notice of objection to an assessment may appeal to the Tax Court to have the assessment vacated or a reassessment made after

(

a) the Minister has confirmed the assessment or has reassessed; or

( b )

180 days have elapsed after the filing of the notice of objection and the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has reassessed.

No appeal

(2) No appeal under subsection (1) may be instituted after the expiry of 90 days after notice that the Minister has reassessed or confirmed the assessment is sent to the person under subsection 43(10).

Amendment of appeal

(3) The Tax Court may, on any terms that it sees fit, authorize a person who has instituted an appeal in respect of a matter to amend the appeal to include any further assessment in respect of the matter that the person is entitled under this

section to appeal.

Extension of time to appeal

(1) If no appeal to the Tax Court under

section 46 has been instituted within the time limited by that

section for doing so, a person may make an application to the Tax Court for an order extending the time within which an appeal may be instituted, and the Court may make an order extending the time for appealing and may impose any terms that it considers just.

Contents of application

(2) An application must set out the reasons why the appeal was not instituted within the time limited under

section 46 for doing so.

How application made

(3) An application must be made by filing in the Registry of the Tax Court, in accordance with the Tax Court of Canada Act , three copies of the application together with three copies of the notice of appeal.

Copy to Deputy Attorney General of Canada

(4) The Tax Court must send a copy of the application to the office of the Deputy Attorney General of Canada.

When order to be made

(5) No order shall be made under this

section unless

(

a) the application is made within one year after the expiry of the time limited under

section 46 for appealing; and

(

b) the person demonstrates that

(

i) within the time limited under

section 46 for appealing, the person

(

A) was unable to act or to give a mandate to act in their name, and

(

B) had a bona fide intention to appeal,

(ii)

given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application,

(iii)

the application was made as soon as circumstances permitted it to be made, and

(iv)

there are reasonable grounds for the appeal.

Limitation on appeals to the Tax Court

(1) Despite

section 46, if a person has filed a notice of objection to an assessment, the person may appeal to the Tax Court to have the assessment vacated, or a reassessment made, only with respect to

(

a) an issue in respect of which the person has complied with subsection 43(2) in the notice and the relief sought in respect of the issue as specified by the person in the notice; or

(

b) an issue described in subsection 43(5) if the person was not required to file a notice of objection to the assessment that gave rise to the issue.

No appeal if waiver

(2) Despite

section 46, a person may not appeal to the Tax Court to have an assessment vacated or varied in respect of an issue for which the right of objection or appeal has been waived in writing by the person.

Institution of appeals

An appeal to the Tax Court under this Act shall be instituted in accordance with the Tax Court of Canada Act.

Disposition of appeal

The Tax Court may dispose of an appeal from an assessment by

(

a) dismissing it; or

(

b) allowing it and

(

i) vacating the assessment, or

(ii)

referring the assessment back to the Minister for reconsideration and reassessment.

References to Tax Court

(1) If the Minister and another person agree in writing that a question arising under this Act, in respect of any assessment or proposed assessment of the person, should be determined by the Tax Court, that question shall be determined by that Court.

Time during consideration not to count

(2) For the purpose of making an assessment of a person who agreed in writing to the determination of a question, filing a notice of objection to an assessment or instituting an appeal from an assessment, the time between the day on which proceedings are instituted in the Tax Court to have a question determined and the day on which the question is finally determined shall not be counted in the computation of

(

a) the four-year period referred to in subsection 42(1);

(

b) the period within which a notice of objection to an assessment may be filed under

section 43; or

(

c) the period within which an appeal may be instituted under

section 46.

Reference of common questions to Tax Court

(1) If the Minister is of the opinion that a question arising out of one and the same transaction or occurrence or series of transactions or occurrences is common to assessments or proposed assessments in respect of two or more persons, the Minister may apply to the Tax Court for a determination of the question.

Contents of application

(2) An application shall set out

(

a) the question in respect of which the Minister requests a determination;

(

b) the names of the persons that the Minister seeks to have bound by the determination; and

(

c) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of each person named in the application.

Service

(3) A copy of the application shall be served by the Minister on each of the persons named in it and on any other person who, in the opinion of the Tax Court, is likely to be affected by the determination of the question.

Determination by Tax Court of question

(4) If the Tax Court is satisfied that a determination of a question set out in an application will affect assessments or proposed assessments in respect of two or more persons who have been served with a copy of the application and who are named in an order of the Tax Court under this subsection, it may

(

a) if none of the persons so named has appealed from such an assessment, proceed to determine the question in any manner that it considers appropriate; or

(

b) if one or more of the persons so named has or have appealed, make any order that it considers appropriate joining a party or parties to that appeal or those appeals and proceed to determine the question.

Determination final and conclusive

(5) Subject to subsection (6), if a question set out in an application is determined by the Tax Court, the determination is final and conclusive for the purposes of any assessments of persons named by the Court under subsection (4).

Appeal

(6) If a question set out in an application is determined by the Tax Court, the Minister or any of the persons who have been served with a copy of the application and who are named in an order of the Court under subsection (4) may, in accordance with the provisions of this Act, the Tax Court of Canada Act or the Federal Court Act , as they relate to appeals from or applications for judicial review of decisions of the Tax Court, appeal from the determination.

Parties to appeal

(7) The parties who are bound by a determination are parties to any appeal from the determination.

Time during consideration not counted

(8) For the purpose of making an assessment of a person, filing a notice of objection to an assessment or instituting an appeal from an assessment, the periods described in subsection (9) shall not be counted in the computation of

(

a) the four-year period referred to in subsection 42(1);

(

b) the period within which a notice of objection to an assessment may be filed under

section 43; or

(

c) the period within which an appeal may be instituted under

section 46.

Excluded periods

(9) The period that is not to be counted in the computation of the periods described in paragraphs (8)(

a) to (

c) is the time between the day on which an application that is made under this

section is served on a person under subsection (3) and

(

a) in the case of a person named in an order of the Tax Court under subsection (4), the day on which the determination becomes final and conclusive and not subject to any appeal; or

(

b) in the case of any other person, the day on which the person is served with a notice that the person has not been named in an order of the Tax Court under subsection (4).

ENFORCEMENT

Penalties

Penalty

(1) Subject to this

section and

section 54, if a person fails to pay an amount to the Receiver General as and when required under this Act, the person shall pay a penalty of 6% per year, compounded daily, on the amount not paid, 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.

No penalty if security

(2) If on a particular day the Minister holds security under

section 73 in respect of an amount payable by a person under this Act, the penalty under this

section applies on the particular day only to the extent that the total of all amounts payable by the person under this Act that are outstanding on the particular day exceeds the value of the security at the time it was accepted by the Minister.

Payment before specified date

(3) 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 shall waive any penalty or 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.

Effect of extension for returns

If the Minister extends the time within which a return of a person shall be filed, the return is filed at or before the expiry of the time so extended, and any amount that the person is required to pay with the return is paid at or before that time, no penalty under

section 53 is payable in respect of the return or the amount.

Waiving or cancelling penalties

The Minister may waive or cancel penalties payable by a person under

section 53.

Failure to answer demand

Every person who fails to file a return as and when required under a demand issued under

section 26 is liable to a penalty equal to the greater of

( a )

$250, and

( b )

5% of the amount payable under this Act by the person, for the fiscal month to which the demand applies, that was unpaid on the day that the return was due.

Failure to provide information

Every person who fails to provide any information or record as and when required under this Act is liable to a penalty of $100 for every failure unless, in the case of information required in respect of another person, a reasonable effort was made by the person to obtain the information.

False statements or omissions

Every person who knowingly, or under circumstances amounting to gross negligence, makes or participates in, assents to or acquiesces in the making of a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in this

section referred to as a “return”) is liable to a penalty of the greater of $250 and 25% of the total of

(

a) if the false statement or omission is relevant to the determination of an amount payable under this Act by the person, the amount, if any, by which

(

i) the amount payable

exceeds

(ii)

the amount that would be payable by the person if the amount payable were determined on the basis of the information provided in the return, and

(

b) if the false statement or omission is relevant to the determination of a refund or any other payment that may be obtained under this Act, the amount, if any, by which

(

i) the amount that would be the refund or other payment payable to the person if the refund or other payment were determined on the basis of the information provided in the return

exceeds

(ii)

the amount of the refund or other payment payable to the person.

Penalty Imposition

Notice of imposed penalty

A penalty that a person is liable to pay under any of sections 56 to 58 may be imposed by the Minister by a notice served personally or by registered or certified mail to the person’s latest known address, which notice is deemed to be an assessment.

When penalty becomes payable

The amount of penalty imposed on a person under

section 59 is payable by the person to the Receiver General at the time it is imposed.

Offences and Punishment

Offence for failure to file return or to comply with demand or order

(1) Every person who fails to file or make a return as and when required under this Act or who fails to comply with an obligation under subsection 37(5) or (8) or

section 38 or an order made under

section 66 is guilty of an offence and, in addition to any penalty otherwise provided, is liable on

summary conviction to a fine of not less than $1,000 and not more than $25,000 or to imprisonment for a term not exceeding 12 months, or to both.

Saving

(2) A person who is convicted of an offence under subsection (1) for a failure to comply with a provision of this Act is not liable to pay a penalty imposed under

section 56 or 57 for the same failure, unless a notice of assessment for the penalty was issued before the information or complaint giving rise to the conviction was laid or made.

Offences for false or deceptive statement

(1) Every person commits an offence who

(

a) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in a return, application, certificate, record or answer filed or made as required under this Act;

(

b) for the purposes of evading payment of any amount payable under this Act, or obtaining a refund to which the person is not entitled under this Act,

(

i) destroys, alters, mutilates, conceals or otherwise disposes of any records of a person, or

(ii)

makes, or assents to or acquiesces in the making of, a false or deceptive entry, or omits, or assents to or acquiesces in the omission, to enter a material particular in the records of a person;

(

c) wilfully, in any manner, evades or attempts to evade compliance with this Act or payment of an amount payable under this Act;

(

d) wilfully, in any manner, obtains or attempts to obtain a refund to which the person is not entitled under this Act; or

(

e) conspires with any person to commit an offence described in any of paragraphs (

a) to ( d ).

Punishment

(2) Every person who commits an offence under subsection (1) is guilty of an offence punishable on

summary conviction and, in addition to any penalty otherwise provided, is liable to

(

a) a fine of not less than 50%, and not more than 200%, of the amount payable that was sought to be evaded, or of the refund sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $1,000 and not more than $25,000;

(

b) imprisonment for a term not exceeding 18 months; or

(

c) both a fine referred to in paragraph (

a) and imprisonment for a term not exceeding 18 months.

Penalty on conviction

(3) A person who is convicted of an offence under subsection (1) is not liable to pay a penalty imposed under any of sections 56 to 58 for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made.

Stay of appeal

(4) If, in any appeal under this Act, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Tax Court and, on doing so, the proceedings before the Tax Court are stayed pending a final determination of the outcome of the prosecution.

Failure to pay or collect charges

Every person who wilfully fails to pay or collect a charge as and when required under this Act is guilty of an offence punishable on

summary conviction and liable, in addition to any penalty or interest otherwise provided, to

(

a) a fine not exceeding the aggregate of $1,000 and an amount equal to 20% of the amount of charge that should have been paid or collected;

(

b) imprisonment for a term not exceeding six months; or

(

c) both a fine referred to in paragraph (

a) and imprisonment for a term not exceeding six months.

General offence

Every person who fails to comply with any provision of this Act or the regulations made under this Act for which no other offence is specified in this Act is guilty of an offence punishable on

summary conviction and liable to a fine not exceeding $1,000.

Defence of due diligence

No person shall be convicted of an offence under this Act if the person establishes that they exercised all due diligence to prevent the commission of the offence.

Compliance orders

If a person is convicted by a court of an offence for a failure to comply with a provision of this Act, the court may make such order as it deems proper in order to enforce compliance with the provision.

Officers of corporations, etc.

If a person other than an individual commits an offence under this Act, every officer, director or agent of the person who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and liable on conviction to the punishment provided for the offence, whether or not the person has been prosecuted or convicted.

Power to decrease punishment

Despite the Criminal Code or any other law, the court has, in any prosecution or proceeding under this Act, neither the power to impose less than the minimum fine fixed under this Act nor the power to suspend sentence.

Information or complaint

(1) An information or complaint under this Act may be laid or made by any officer of the Agency, by a member of the Royal Canadian Mounted Police or by any person authorized to do so by the Minister and, if an information or complaint purports to have been laid or made under this Act, it is deemed to have been laid or made by a person so authorized by the Minister and shall not be called in question for lack of authority of the informant or complainant, except by the Minister or a person acting for the Minister or for Her Majesty.

Two or more offences

(2) An information or complaint in respect of an offence under this Act may be for one or more offences, and no information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is objectionable or insufficient by reason of the fact that it relates to two or more offences.

Territorial jurisdiction

(3) An information or complaint in respect of an offence under this Act may be heard, tried or determined by any court, if the accused is resident, carrying on a commercial activity, found or apprehended or is in custody within the court’s territorial jurisdiction even though the matter of the information or complaint did not arise within that territorial jurisdiction.

Limitation of prosecutions

(4) An information or complaint under the provisions of the Criminal Code relating to

summary convictions, in respect of an offence under this Act, may be laid or made within two years after the day on which the matter of the information or complaint arose.

Inspections

By whom

(1) A person authorized by the Minister to do so may, at all reasonable times, for any purpose related to the administration or enforcement of this Act, inspect, audit or examine the records, processes, property or premises of a person in order to determine whether that or any other person is in compliance with this Act.

Powers of authorized person

(2) For the purposes of an inspection, audit or examination, the authorized person may

(

a) enter any place in which the authorized person reasonably believes the person keeps records or carries on any activity to which this Act applies; and

(

b) require any individual to be present during the inspection, audit or examination and require that individual to answer all proper questions and to give to the authorized person all reasonable assistance.

Prior authorization

(3) If any place referred to in paragraph (2)(

a) is a dwelling-house, the authorized person may not enter that dwelling-house without the consent of the occupant, except under the authority of a warrant issued under subsection (4).

Warrant to enter dwelling-house

(4) A judge may issue a warrant authorizing a person to enter a dwelling-house subject to the conditions specified in the warrant if, on ex parte application by the Minister, a judge is satisfied by information on oath that

(

a) there are reasonable grounds to believe that the dwelling-house is a place referred to in paragraph (2)( a );

(

b) entry into the dwelling-house is necessary for any purpose related to the administration or enforcement of this Act; and

(

c) entry into the dwelling-house has been, or there are reasonable grounds to believe that entry will be, refused.

Orders if entry not authorized

(5) If the judge is not satisfied that entry into the dwelling-house is necessary for any purpose related to the administration or enforcement of this Act, the judge may, to the extent that access was or may be expected to be refused and that a record or property is or may be expected to be kept in the dwelling-house,

(

a) order the occupant of the dwelling-house to provide a person with reasonable access to any record or property that is or should be kept in the dwelling-house; and

(

b) make any other order that is appropriate in the circumstances to carry out the purposes of this Act.

Definition of dwelling-house

(6) In this section, dwelling-house means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence, and includes

(

a) a building within the curtilage of a dwelling-house that is connected to it by a doorway or by a covered and enclosed passageway; and

(

b) a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as such a residence.

Copies of records

A person who inspects, audits, examines or is provided a record under

section 70 may make, or cause to be made, one or more copies of the record.

Collection

Debts to Her Majesty

(1) Any amount payable under this Act (other than an amount payable by Her Majesty) is a debt due to Her Majesty and is recoverable in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Act.

Limitation

(2) No proceedings for the recovery of an amount payable by a person under this Act shall be commenced in a court

(

a) in the case of an amount that may be assessed under this Act, unless at the time the action is commenced the person has been or may be assessed for that amount; and

(

b) in any other case, more than four years after the person became liable to pay the amount.

Assessment before collection

(3) The Minister may not take any collection action under sections 74 to 79 in respect of any amount payable by a person that may be assessed under this Act, other than interest under

section 27 or penalty under

section 53, unless the amount has been assessed.

Interest on judgments

(4) If a judgment is obtained for any amount payable under this Act, including a certificate registered under

section 74, the provisions of this Act by which interest is payable for a failure to pay an amount apply, with any modifications that the circumstances require, to the failure to pay the judgment debt, and the interest is recoverable in like manner as the judgment debt.

Litigation costs

(5) If an amount is payable by a person to Her Majesty because of an order, judgment or award of a court in respect of the costs of litigation relating to a matter to which this Act applies, sections 73 to 80 apply to the amount as if it were payable under this Act.

Security

(1) The Minister may, if the Minister considers it advisable, accept security in an amount and a form satisfactory to the Minister for the payment of any amount that is or may become payable under this Act.

Surrender of excess security

(2) If a person who has furnished security, or on whose behalf security has been furnished, under this

section requests in writing that the Minister surrender the security or any part of it, the Minister must surrender the security to the extent that its value exceeds, at the time the request is received by the Minister, the amount that is sought to be secured.

Certificates

(1) Any amount payable by a person (in this

section referred to as the “debtor”) under this Act that has not been paid as and when required under this Act may be certified by the Minister as an amount payable by the debtor.

Registration in court

(2) On production to the Federal Court, a certificate in respect of a debtor shall be registered in the Court and when so registered has the same effect, and all proceedings may be taken on the certificate, as if it were a judgment obtained in the Court against the debtor for a debt in the amount certified plus interest on the amount as provided under this Act to the day of payment and, for the purposes of those proceedings, the certificate is deemed to be a judgment of the Court against the debtor for a debt due to Her Majesty and enforceable as such.

Costs

(3) All reasonable costs and charges incurred or paid for the registration in the Federal Court of a certificate or in respect of any proceedings taken to collect the amount certified are recoverable in like manner as if they had been included in the amount certified in the certificate when it was registered.

Charge on property

(4) A document issued by the Federal Court evidencing a registered certificate in respect of a debtor, a writ of that Court issued pursuant to the certificate or any notification of the document or writ (which document, writ or notification is in this

section referred to as a “memorial”) may be filed, registered or otherwise recorded for the purpose of creating a charge, lien or priority on, or a binding interest in, property in a province, or any interest in such property, held by the debtor, in the same manner as a document evidencing

(

a) a judgment of the superior court of the province against a person for a debt owing by the person, or

(

b) an amount payable or required to be remitted by a person in the province in respect of a debt owing to Her Majesty in right of the province

may be filed, registered or otherwise recorded in accordance with the law of the province to create a charge, lien or priority on, or a binding interest in, the property or interest.

Creation of charge

(5) If a memorial has been filed, registered or otherwise recorded under subsection (4),

(

a) a charge, lien or priority is created on, or a binding interest is created in, property in the province, or any interest in such property, held by the debtor, or

(

b) such property or interest in the property is otherwise bound,

in the same manner and to the same extent as if the memorial were a document evidencing a judgment referred to in paragraph (4)(

a) or an amount referred to in paragraph (4)( b ), and the charge, lien, priority or binding interest created is subordinate to any charge, lien, priority or binding interest in respect of which all steps necessary to make it effective against other creditors were taken before the time the memorial was filed, registered or otherwise recorded.

Proceedings in respect of memorial

(6) If a memorial is filed, registered or otherwise recorded in a province under subsection (4), proceedings may be taken in the province in respect of the memorial, including proceedings

(

a) to enforce payment of the amount evidenced by the memorial, interest on the amount and all costs and charges paid or incurred in respect of

(

i) the filing, registration or other recording of the memorial, and

(ii)

proceedings taken to collect the amount,

(

b) to renew or otherwise prolong the effectiveness of the filing, registration or other recording of the memorial,

(

c) to cancel or withdraw the memorial wholly or in respect of any of the property or interests affected by the memorial, or

(

d) to postpone the effectiveness of the filing, registration or other recording of the memorial in favour of any right, charge, lien or priority that has been or is intended to be filed, registered or otherwise recorded in respect of any property or interest affected by the memorial,

in the same manner and to the same extent as if the memorial were a document evidencing a judgment referred to in paragraph (4)(

a) or an amount referred to in paragraph (4)( b ), except that, if in any such proceeding or as a condition precedent to any such proceeding, any order, consent or ruling is required under the law of the province to be made or given by the superior court of the province or by a judge or official of the court, a like order, consent or ruling may be made or given by the Federal Court or by a judge or official of the Federal Court and, when so made or given, has the same effect for the purposes of the proceeding as if it were made or given by the superior court of the province or by a judge or official of the court.

Presentation of documents

(7) (

a) a memorial is presented for filing, registration or other recording under subsection (4), or a document relating to the memorial is presented for filing, registration or other recording for the purpose of any proceeding described in subsection (6), to any official of a property registry system of a province, or

(

b) access is sought to any person, place or thing in a province to make the filing, registration or other recording,

the memorial or document shall be accepted for filing, registration or other recording or the access shall be granted, as the case may be, in the same manner and to the same extent as if the memorial or document relating to the memorial were a document evidencing a judgment referred to in paragraph (4)(

a) or an amount referred to in paragraph (4)(

b) for the purpose of a like proceeding, except that, if the memorial or document is issued by the Federal Court or signed or certified by a judge or official of the Court, any affidavit, declaration or other evidence required under the law of the province to be provided with or to accompany the memorial or document in the proceedings is deemed to have been provided with or to have accompanied the memorial or document as so required.

Sale, etc.

(8) Despite any law of Canada or of a province, a sheriff or other person shall not, without the written consent of the Minister, sell or otherwise dispose of any property or publish any notice or otherwise advertise in respect of any sale or other disposition of any property pursuant to any process issued or charge, lien, priority or binding interest created in any proceeding to collect an amount certified in a certificate made under subsection (1), interest on the amount or costs, but if that consent is subsequently given, any property that would have been affected by such a process, charge, lien, priority or binding interest if the Minister’s consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be, shall be bound, seized, attached, charged or otherwise affected as it would be if that consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be.

Completion of notices, etc.

(9) If information required to be set out by any sheriff or other person in a minute, notice or document required to be completed for any purpose cannot, because of subsection (8), be so set out without the written consent of the Minister, the sheriff or other person shall complete the minute, notice or document to the extent possible without that information and, when that consent of the Minister is given, a further minute, notice or document setting out all the information shall be completed for the same purpose, and the sheriff or other person, having complied with this subsection, is deemed to have complied with the Act, regulation or rule requiring the information to be set out in the minute, notice or document.

Application for an order

(10) A sheriff or other person who is unable, because of subsection (8) or (9), to comply with any law or rule of court is bound by any order made by a judge of the Federal Court, on an ex parte application by the Minister, for the purpose of giving effect to the proceeding, charge, lien, priority or binding interest.

Deemed security

(11) If a charge, lien, priority or binding interest created under subsection (5) by filing, registering or otherwise recording a memorial under subsection (4) is registered in accordance with subsection 87(1) of the Bankruptcy and Insolvency Act , it is deemed

(

a) to be a claim that is secured by a security and that, subject to subsection 87(2) of that Act, ranks as a secured claim under that Act; and

(

b) to also be a claim referred to in paragraph 86(2)(

a) of that Act.

Details in certificates and memorials

(12) Despite any law of Canada or of the legislature of a province, in any certificate in respect of a debtor, any memorial evidencing a certificate or any writ or document issued for the purpose of collecting an amount certified, it is sufficient for all purposes

(

a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total; and

(

b) to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the prescribed rate under this Act applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any period.

Garnishment

(1) If the Minister has knowledge or suspects that a person is, or will be within one year, liable to make a payment to another person who is liable to pay an amount under this Act (in this

section referred to as a “debtor”), the Minister may, by notice in writing, require the person to pay without delay, if the money is immediately payable, and in any other case, as and when the money becomes payable, the money otherwise payable to the debtor in whole or in part to the Receiver General on account of the debtor’s liability under this Act.

Garnishment of loans or advances

(2) Without limiting the generality of subsection (1), if the Minister has knowledge or suspects that within 90 days

(

a) a bank, credit union, trust company or other similar person (in this

section referred to as an “institution”) will loan or advance money to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by, a debtor who is indebted to the institution and who has granted security in respect of the indebtedness, or

(

b) a person, other than an institution, will loan or advance money to, or make a payment on behalf of, a debtor who the Minister knows or suspects

(

i) is employed by, or is engaged in providing services or property to, that person or was or will be, within 90 days, so employed or engaged, or

(ii)

if that person is a corporation, is not dealing at arm’s length with that person,

the Minister may, by notice in writing, require the institution or person, as the case may be, to pay in whole or in part to the Receiver General on account of the debtor’s liability under this Act the money that would otherwise be so loaned, advanced or paid.

Amounts payable to secured creditor

(3) Despite any provision of this or any other Act (other than the Bankruptcy and Insolvency Act ), any enactment of a province or any law, if the Minister has knowledge or suspects that a person is or will become, within 90 days, liable to make a payment to a debtor or to a secured creditor who has a right to receive the payment that, but for a security interest in favour of the secured creditor, would be payable to the debtor, the Minister may, by a notice in writing, require the person to pay without delay, if the moneys are immediately payable, and in any other case, as and when the moneys become payable, the moneys otherwise payable to the debtor or the secured creditor in whole or in part to the Receiver General on account of the debtor’s liability under this Act.

On receipt of that letter by the person, the amount of those moneys that is required by that letter to be paid to the Receiver General becomes, despite any security interest in those moneys, the property of Her Majesty to the extent of that liability as assessed by the Minister and shall be paid to the Receiver General in priority to any such security interest.

Effect of receipt

(4) A receipt issued by the Minister for money paid as required under this

section is a good and sufficient discharge of the original liability to the extent of the payment.

Effect of requirement

(5) If the Minister has, under this section, required a person to pay to the Receiver General on account of the liability under this Act of a debtor money otherwise payable by the person to the debtor as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the requirement applies to all such payments to be made by the person to the debtor until the liability under this Act is satisfied, and operates to require payments to the Receiver General out of each such payment of any amount that is stipulated by the Minister in a notice in writing.

Failure to comply

(6) Every person who fails to comply with a requirement under subsection (1) or (5) is liable to pay to Her Majesty an amount equal to the amount that the person was required under that subsection to pay to the Receiver General.

Other failures to comply

(7) Every institution or person that fails to comply with a requirement under subsection (2) with respect to money to be loaned, advanced or paid is liable to pay to Her Majesty an amount equal to the lesser of

(

a) the total of money so loaned, advanced or paid, and

(

b) the amount that the institution or person was required under that subsection to pay to the Receiver General.

Assessment

(8) The Minister may assess any person for any amount payable under this

section by the person to the Receiver General and, if the Minister sends a notice of assessment, sections 39 to 52 apply with any modifications that the circumstances require.

Time limit

(9) An assessment of an amount payable under this

section by a person to the Receiver General shall not be made more than four years after the notice from the Minister requiring the payment was received by the person.

Effect of payment as required

(10) If an amount that would otherwise have been advanced, loaned or paid to or on behalf of a debtor is paid by a person to the Receiver General in accordance with a notice from the Minister issued under this

section or with an assessment under subsection (8), the person is deemed for all purposes to have advanced, loaned or paid the amount to or on behalf of the debtor.

Recovery by deduction or set-off

If a person is indebted to Her Majesty under this Act, the Minister may require the retention by way of deduction or set-off of any amount that the Minister may specify out of any amount that may be or become payable to that person by Her Majesty.

Acquisition of debtor’s property

For the purpose of collecting debts owed by a person to Her Majesty under this Act, the Minister may purchase or otherwise acquire any interest in the person’s property that the Minister is given a right to acquire in legal proceedings or under a court order or that is offered for sale or redemption, and may dispose of any interest so acquired in any manner that the Minister considers reasonable.

Money seized from debtor

(1) If the Minister has knowledge or suspects that a person is holding money that was seized by a police officer in the course of administering or enforcing the criminal law of Canada from another person who is liable to pay any amount under this Act (in this

section referred to as the “debtor”) and that is restorable to the debtor, the Minister may in writing require the person to turn over the money otherwise restorable to the debtor, in whole or in part, to the Receiver General on account of the debtor’s liability under this Act.

Receipt of Minister

(2) A receipt issued by the Minister for money turned over is a good and sufficien