General Excise and Sales Tax Regulations

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/C.R.C.,_c._594/FullText.html

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General Excise and Sales Tax Regulations

C.R.C., c. 594EXCISE TAX ACT
Regulations Respecting Excise and Sales TaxesShort Title

1 These Regulations may be cited as the General Excise and Sales Tax Regulations.

Interpretation

2 In these Regulations,

Act
Act means the Excise Tax Act; (Loi)
Department
Department means the Department of National Revenue; (ministère)
licensee
licensee means any person licensed under the Excise Tax Act; (détenteur de licence)
manufacturer
manufacturer includes a producer; (fabricant)
manufacture
manufacture includes produce; (fabriquer)
Minister
Minister means the Minister of National Revenue. (ministre)

Licences

3 (1) An application for a manufacturer’s sales tax licence or a manufacturer’s excise tax licence, or both, shall be submitted to the Department in the form set out in Form L15 of Schedule III.
(2) An application for a wholesaler’s sales tax licence shall be submitted to the Department in the form set out in Form L16 of Schedule IV.
(3) Where a licence has been issued to an individual or a partnership and any change occurs in the ownership of the business, an application for a new licence shall be submitted forthwith to the Department.
(4) Where a licensee changes the name under which he carries on business, he shall apply forthwith for a new licence.
(5) Where a licensee’s operations at any place of business covered by his licence are changed or discontinued, the licensee shall notify the Department forthwith of such change or discontinuance.
(6) Where a licensee commences to manufacture goods that are subject to tax under the Act at any place not specified in his licence, he shall notify the Department forthwith.
(7) Where a licensed wholesaler commences operations from a new division or branch not specified in his licence he shall notify the Department forthwith.

Exemption for Small Manufacturers

4 Pursuant to subsection 40(2) of the Act, the following class of persons is exempted from obtaining a licence in respect of Parts III and IV of the Act:

(a) a manufacturer who is a member of a class of small manufacturers or producers that is exempted, pursuant to subsection 31(2) of the Act, from payment of consumption or sales tax on goods manufactured or produced by persons who are members of that class.
(b) to (i) [Revoked, SOR/82-328, s. 1]
(j) [Revoked, SOR/80-284, s. 1]

SOR/78-485, s. 1;
SOR/78-704, s. 1(F);
SOR/79-948, s. 1;
SOR/80-7, s. 1;
SOR/80-284, s. 1;
SOR/82-328, s. 1.

Security Given by Wholesalers

5 (1) Where security is given by a wholesaler or jobber at the time of application for a wholesaler’s sales tax licence pursuant to section 32 of the Act, the amount of that security shall, subject to subsection 32(3) of the Act, be for an amount equal to double the amount of sales tax paid or payable on goods sold during the three months immediately preceding the month in which the application is made and thereafter the security shall be for an amount equal to double the amount of sales tax paid or payable on the three largest monthly totals of taxable sales during the last calendar year.

(2) Where the security given by a wholesaler or jobber pursuant to section 32 of the Act is in the form of a bond of or guaranteed by the Government of Canada, the bond shall

(a) be fully registered, both as to principal and interest; and
(b) be accompanied by a transfer form in favour of the Receiver General, and, where required, the signature of the transferor and the authority to sign shall be attested to by a bank or other financial institution acceptable to the Bank of Canada.

(3) Where the security given by a wholesaler or jobber pursuant to section 32 of the Act is by a chartered bank, it shall be in a form satisfactory to the Minister.

Returns and Payment of Tax

6 (1) Subject to subsections (2) and (3), every person who is required by or pursuant to Part III, IV or V of the Act to pay sales tax or excise tax and every person holding a licence granted under or in respect of Part III, IV or V of the Act shall, each month, make a return in the form set out in Form B93 of Schedule II showing the total amount of his taxable sales during the period to which the return relates and the amount of sales tax and of excise tax payable thereon.
(2) Any person referred to in subsection (1) may make a return, in the form and showing the information as required by subsection (1), in respect of any accounting period of less than one month, where he maintains corresponding accounting periods.

(3) Any person referred to in subsection (1) may make a return, in the form and showing the information as required by subsection (1),

(a) where his tax payable under Parts III, IV and V of the Act for the last preceding calendar year did not exceed $2,400, and

(i) where his tax payable under Parts III, IV and V of the Act for the period to which the return relates is nil, in respect of any period longer than one month but not longer than six consecutive months commencing on January 1st or on July 1st, and
(ii) where he has tax payable under Parts III, IV and V of the Act for the period to which the return relates, in respect of any period longer than one month but not longer than three consecutive months commencing on January 1st, April 1st, July 1st or October 1st, and

(b) where his sales are predominantly limited to a seasonal period of operation, and

(i) where his tax payable under Parts III, IV and V of the Act for the period to which the return relates is nil, in respect of any period longer than one month but not longer than six consecutive months, and
(ii) where his tax payable under Parts III, IV and V of the Act for the period to which the return relates does not exceed an average of $200 per month, in respect of any period longer than one month but not longer than three consecutive months, where the tax payable by him under Parts III, IV and V of the Act for the equivalent period in the last preceding calendar year did not exceed an average of $200 per month throughout that period,

if the Minister has received written notification of that person’s intention to file a return in accordance with this subsection not later than the last day of the first month of the period to which the return relates.

(4) Where a person who is eligible to file a return in accordance with subsection (2) or (3) fails to do so and fails to file a return in accordance with subsection (1), or where a person defaults in payment of the tax payable or any portion thereof within the time prescribed by

(a) paragraph 50(3)(b) of the Act, in the case of a return filed in accordance with subsection (2), and
(b) paragraph 50(3)(c) of the Act, in the case of a return filed in accordance with subsection (3),

he shall, on being notified by the Minister of his failure or default, file a return in accordance with subsection 50(1) or (2) of the Act.

(5) Certificates on a return made in accordance with this section shall be signed

(a) by the proprietor or by a partner of the business to which the return relates; or
(b) where a company makes the return, by the president, vice-president, secretary, treasurer or manager of the company or by any person duly authorized to sign the certificate on behalf of the company.

(6) Every person who makes a return in accordance with this section shall deliver or mail the return

(a) to the Regional Director, Excise, for the region in which his licence was issued, or
(b) in the case of a person who is required by or pursuant to the Act to pay taxes but is not duly licensed under the Act, to the Regional Director, Excise, for the region in which his business is located,

unless otherwise authorized or directed by the Regional Director.

SOR/78-821, s. 1;
SOR/81-762, s. 1.

Goods Exported

7 Where goods on which sales tax or excise tax has been paid under the Act are exported without having been used in Canada, a refund of the taxes so paid or a deduction from future taxes payable may be granted,

(a) if evidence of payment of the tax on the purchase of the goods, in the case of domestic goods, or
(b) if evidence of payment of the tax on the importation of the goods in the form of a receipted copy of the original import entry, in the case of goods imported into Canada,

is maintained on file by the exporter for examination by officers of the Department and evidence satisfactory to the Minister is produced to establish that the goods have been exported from Canada.

SCHEDULE I
[Revoked, SOR/78-821, s. 2]

SCHEDULE II(Section 6)Excise Tax Return

GRAPHIC IS NOT DISPLAYED, SEE SOR/78-821, S. 2
SOR/78-821, s. 2.

SCHEDULE III(Section 3)Application for Licence Under the Provisions of the Excise Tax Act

GRAPHIC IS NOT DISPLAYED, SEE C.R.C., C. 594, PAGE 3947

SCHEDULE IV(Section 3)Application for a Wholesaler’s Sales Tax Licence Under Section 32 of the Excise Tax Act

GRAPHIC IS NOT DISPLAYED, SEE C.R.C., C. 594, PAGE 3949