Marginal note:Assessments
188 (1) The Minister may assess
(a) the duty payable by a person for a reporting period of the person; and
(b) subject to section 190, interest and any other amount payable by a person under this Act.
Marginal note:Reassessment
(2) The Minister may reassess or make an additional assessment of any duty, interest or other amount that may be assessed under subsection (1).
Marginal note:Allowance of unclaimed amounts
(3) If, in assessing the duty, interest or other amount payable by a person for a reporting period of the person or other amount payable by a person under this Act, the Minister determines that
(a) a refund would have been payable to the person if it had been claimed in an application under this Act filed on the particular day that is
(i) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was required to be filed, or
(ii) if the assessment is in respect of interest or other amount, the day on which the interest or other amount became payable by the person,
(b) the refund was not claimed by the person in an application filed before the day on which notice of the assessment is sent to the person, and
(c) the refund would be payable to the person if it were claimed in an application under this Act filed on the day on which notice of the assessment is sent to the person or would be disallowed if it were claimed in that application only because the period for claiming the refund expired before that day,
the Minister shall apply all or part of the refund against that duty, interest or other amount that is payable as if the person had, on the particular day, paid the amount so applied on account of that duty, interest or other amount.
Marginal note:Application of overpayment
(4) If, in assessing the duty payable by a person for a reporting period of the person, the Minister determines that there is an overpayment of duty payable for the period, unless the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall
(a) apply
(i) all or part of the overpayment
against
(ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on the particular day on which the person was required to file a return for the period, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,
as if the person had, on the particular day, paid the amount so applied on account of the outstanding amount;
(b) apply
(i) all or part of the overpayment that was not applied under paragraph (a) together with interest on the overpayment at the prescribed rate, computed for the period beginning on the day that is 30 days after the latest of
(A) the particular day,
(B) the day on which the return for the reporting period was filed, and
(C) in the case of an overpayment that is attributable to a payment made on a day subsequent to the days referred to in clauses (A) and (B), that subsequent day,
and ending on the day on which the person defaulted in paying the outstanding amount referred to in subparagraph (ii)
against
(ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,
as if the person had, on the later day, paid the amount and interest so applied on account of the outstanding amount; and
(c) refund to the person the part of the overpayment that was not applied under paragraphs (a) and (b) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the latest of
(i) the particular day,
(ii) the day on which the return for the reporting period was filed, and
(iii) in the case of an overpayment that is attributable to a payment made on a day subsequent to the days referred to in subparagraphs (i) and (ii), that subsequent day,
and ending on the day on which the refund is paid to the person.
Marginal note:Application of payment
(5) If, in assessing the duty payable by a person for a reporting period of the person or an amount (in this subsection referred to as the “overdue amount”) payable by a person under this Act, all or part of a refund is not applied under subsection (3) against that duty payable or overdue amount, except if the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall
(a) apply
(i) all or part of the refund that was not applied under subsection (3)
against
(ii) any other amount (in this paragraph referred to as the “outstanding amount”) that, on the particular day that is
(A) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was required to be filed, or
(B) if the assessment is in respect of an overdue amount, the day on which the overdue amount became payable by the person,
the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,
as if the person had, on the particular day, paid the refund so applied on account of the outstanding amount;
(b) apply
(i) all or part of the refund that was not applied under subsection (3) or paragraph (a) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the later of
(A) the particular day, and
(B) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was filed,
and ending on the day on which the person defaulted in paying the outstanding amount referred to in subparagraph (ii)
against
(ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,
as if the person had, on the later day, paid the refund and interest so applied on account of the outstanding amount; and
(c) refund to the person the part of the refund that was not applied under any of subsection (3) and paragraphs (a) and (b) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the later of
(i) the particular day, and
(ii) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was filed,
and ending on the day on which the refund is paid to the person.
Marginal note:Limitation on refunding overpayments
(6) An overpayment of duty payable for a reporting period of a person and interest on the overpayment shall not be applied under paragraph (4)(b) or refunded under paragraph (4)(c) unless the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with
(a) the Minister under this Act, the Excise Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Underused Housing Tax Act, the Select Luxury Items Tax Act, the Digital Services Tax Act and the Global Minimum Tax Act; or
(b) the Minister of Public Safety and Emergency Preparedness under the Customs Act.
Marginal note:Limitation
(7) A refund or a part of the refund that was not applied under subsection (3) and interest on the refund under paragraphs (5)(b) and (c)
(a) shall not be applied under paragraph (5)(b) against an amount (in this paragraph referred to as the “outstanding amount”) that is payable by a person unless the refund would have been payable to the person as a refund if the person had claimed it in an application under this Act filed on the day on which the person defaulted in paying the outstanding amount and, in the case of a payment under section 176, if that section allowed the person to claim the payment within four years after the person paid the amount in respect of which the payment would be so payable; and
(b) shall not be refunded under paragraph (5)(c) unless
(i) the refund would have been payable to the person as a refund if the person had claimed it in an application under this Act filed on the day on which notice of the assessment is sent to the person, and
(ii) the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with
(A) the Minister under this Act, the Excise Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Underused Housing Tax Act, the Select Luxury Items Tax Act, the Digital Services Tax Act and the Global Minimum Tax Act, or
(B) the Minister of Public Safety and Emergency Preparedness under the Customs Act.
Marginal note:Deemed claim or application
(8) If, in assessing any duty, interest or other amount payable by a person under this Act, the Minister applies or refunds an amount under subsection (3), (4) or (5),
(a) the person is deemed to have claimed the amount in a return or application filed under this Act; and
(b) to the extent that an amount is applied against any duty, interest or other amount payable by the person, the Minister is deemed to have refunded or paid the amount to the person and the person is deemed to have paid the duty, interest or other amount payable against which it was applied.
Marginal note:Refund on reassessment
(9) If a person has paid an amount on account of any duty, interest or other amount assessed under this section in respect of a reporting period and the amount paid exceeds the amount determined on reassessment to have been payable by the person, the Minister may refund to the person the amount of the excess, together with interest on the excess amount at the prescribed rate for the period that
(a) begins on the day that is 30 days after the latest of
(i) the day on which the person was required to file a return for the reporting period,
(ii) the day on which the person filed a return for the reporting period, and
(iii) the day on which the amount was paid by the person; and
(b) ends on the day on which the refund is paid.
Marginal note:Refund of interest or penalty
(9.1) Despite subsection (9), if a person has paid an amount of interest or penalty and the Minister waives or reduces that amount under section 173 or 255.1, as the case may be, the Minister shall refund the amount of the waiver or reduction to the person, together with interest on the amount of the waiver or reduction at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that section and ending on the day on which the refund is paid.
Marginal note:Meaning of overpayment of duty payable
(10) In this section, overpayment of duty payable of a person for a reporting period of the person means the amount, if any, by which the total of all amounts paid by the person on account of duty payable for the period exceeds the total of
(a) the duty payable for the period, and
(b) all amounts paid to the person under this Act as a refund for the period.
- 2002, c. 22, s. 188
- 2005, c. 38, ss. 95, 145
- 2006, c. 4, s. 117
- 2007, c. 18, s. 111
- 2010, c. 25, s. 116
- 2022, c. 5, s. 32
- 2022, c. 5, s. 33
- 2022, c. 10, s. 164
- 2022, c. 10, s. 173
- 2024, c. 15, s. 119
- 2024, c. 17, s. 103
- 2024, c. 17, s. 111
- Date modified: