Excise Tax Act (R.S.C., 1985, c. E-15)

Diversions

Marginal note:Diversions

• 21.16 (1) Where, pursuant to subsection 21.13(1) or (2), a taxable service is relieved from tax by reason of the use for which the service is acquired, in this section referred to as the “relieved use”, and that service is subsequently diverted

  • (a) by the person who acquired the service for the relieved use, or

  • (b) where the person referred to in paragraph (a) acquired the service for provision to another person for broadcasting without charge, by that other person,

  to any other use or purpose in respect of which the service would not, at the time of the acquisition of the service for the relieved use, be so relieved, the person who diverted the service and the person who provided the service to him are, from the time of the diversion, jointly and severally liable to pay tax under this Part in respect of the amount charged for the service.

• Marginal note:Tax payable

  (2) The tax payable pursuant to subsection (1) is payable at the time the service is diverted and shall be computed as the amount of tax that would have been payable at the time of the acquisition of the service for the relieved use had the service not been so relieved.

Licences

Marginal note:Application for licence

• 21.17 (1) Subject to this section, every person who is providing a taxable service for an amount charged on the coming into force of this Part shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which this Part comes into force.

• Marginal note:Idem

  (2) Subject to this section, every person who commences to provide, on or after the coming into force of this Part, a taxable service for an amount charged shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person commences to provide the service.

• Marginal note:Exemption

  (3) Subsections (1) and (2) do not apply to a small undertaking.

• Marginal note:Exemption lifted

  (4) Every person providing a taxable service for an amount charged who ceases to be a small undertaking shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person ceases to be a small undertaking.

Marginal note:Issue of licence

21.18 The Minister may issue a licence for the purposes of this Part to any person applying therefor under section 21.17.

Marginal note:Cancellation

21.19 The Minister may cancel a licence issued under section 21.18 if, in the Minister’s opinion, it is no longer required for the purposes of this Part.

Regulations

Marginal note:Regulations

21.2 The Governor in Council may make regulations

• (a) prescribing, for the purposes of paragraph (g) of the definition taxable service in subsection 21.1(1), any service other than a programming service referred to in paragraph (a) of that definition;

• (b) respecting the method for determining the reasonable amount charged for a taxable service for the purposes of section 21.14; and

• (c) generally for carrying out the purposes and provisions of this Part.

Increase of Amount Charged by Licensee

Marginal note:Override of other laws

21.21 A licensee may,

• (a) notwithstanding the Broadcasting Act or any other Act of Parliament or any regulation or other statutory instrument made thereunder or any other law, and

• (b) notwithstanding

  • (i) any decision or order made, or any licence or renewal of a licence issued, by the Canadian Radio-television and Telecommunications Commission, or

  • (ii) any other act or thing given, done or issued pursuant to the Broadcasting Act or any other Act of Parliament or any other law,

  before or after the coming into force of this Part,

increase the amount charged for a taxable service by an amount not exceeding the tax payable by him under this Part with respect to that service.

PART II.2Telecommunication Services Tax

Interpretation

Marginal note:Definitions

• 21.22 (1) In this Part,

  amount charged

  amount charged, in respect of a service, means any amount paid or payable by a person for the service, before any amount paid or payable in respect of any tax under this Part or imposed under an Act of the legislature of a province respecting retail sales tax is added thereto; (montant exigé)

  approved tariff

  approved tariff, in respect of a licensee, means a current schedule or tariff that sets out or otherwise provides for amounts that may be charged by the licensee for any service and that is approved by

  • (a) the Canadian Radio-television and Telecommunications Commission,

  • (b) the lieutenant governor in council of a province,

  • (c) a commission, board, tribunal, authority or other body established by or pursuant to an Act of the legislature of a province to regulate telecommunications,

  • (d) a person designated by the lieutenant governor in council of a province to regulate telecommunications, or

  • (e) a municipal or local commission, board, tribunal, authority or other body that regulates telecommunications in a municipality; (tarif agréé)

  licensee

  licensee means any person to whom a licence has been issued under subsection 21.3(2) and includes any person who is required by subsection 21.3(1) to apply for a licence; (titulaire de licence ou titulaire)

  separate charge

  separate charge, in respect of a service provided by a person, means an amount charged for the service

  • (a) as set out separately in a contract entered into by that person and the person charged for the service or in an invoice, bill, statement of account or other similar document issued or made available by that person to the person charged for the service, or

  • (b) if no such contract was so entered into and document was so issued or made available and the person providing the service is a licensee, as set out or provided for separately in an approved tariff of the licensee; (redevance distincte)

  taxable service

  taxable service means

  • (a) any telecommunication service,

  • (b) the commencement or cessation of a telecommunication service,

  • (c) the provision of any instrument, device, equipment or apparatus or any part thereof, other than terminal equipment for the provision of which a separate charge is made, that is

    • (i) used in conjunction with a telecommunication service, and

    • (ii) provided by the person providing the telecommunication service or by any person authorized or designated by him for the purpose or acting on his behalf or by any person related to him,

    if the person providing the telecommunication service requires that the instrument, device, equipment, apparatus or part be acquired exclusively from him or any other person referred to in subparagraph (ii), and

  • (d) the installation, disconnection, replacement, repair or maintenance of any instrument, device, equipment or apparatus or any part thereof referred to in paragraph (c) by the person providing the telecommunication service in conjunction with which it is being used or by any other person referred to in subparagraph (c)(ii),

  but does not include a taxable service within the meaning assigned by subsection 21.1(1); (service taxable)

  telecommunication service

  telecommunication service means the transmission of any information by means of a system for telecommunication or any part thereof and includes the making available of such a system or part for that use, whether or not it is so used, but does not include

  • (a) any such service provided for taxi, messenger or other dispatch purposes, if the person providing the service uses, primarily for the person’s own dispatch purposes, the system or part thereof by means of which the service is provided,

  • (b) any such service provided to an occupant in a building or building complex by the owner or manager of the building or complex, if

    • (i) the system or part thereof by means of which the service is provided and that is controlled by the owner or manager is used exclusively to provide the service within the building or complex, and

    • (ii) the owner or manager provides the service exclusively

      • (A) by means of the system or part referred to in subparagraph (i),

      • (B) through the resale of service acquired from another person, or

      • (C) in the manner described in clauses (A) and (B), or

  • (c) the provision, in conjunction with any such service, of a data processing, data storage, information or other service (in this paragraph referred to as the “additional service”) by means of telecommunication for a separate charge, if

    • (i) the service in conjunction with which the additional service is provided is offered separately from the additional service, and

    • (ii) the additional service is, or could be, lawfully provided by means of telecommunication by persons other than telecommunications carriers; (service de télécommunication)

  telecommunications carrier

  telecommunications carrier means

  • (a) any person who, for an amount charged, provides telecommunication service to the general public, or any portion thereof, by means of a telecommunication system owned, or controlled, and operated by that person, and

  • (b) any person to whom a licence has been issued under section 21.18 or who is required by section 21.17 to apply for a licence for the purposes of Part II.1. (exploitant de télécommunication)

• Marginal note:Presumption

  (2) For the purposes of the definitions telecommunication service and telecommunications carrier in subsection (1), a person who provides telecommunication service through the resale of telecommunication service acquired from another person shall be deemed not to control the system for telecommunication of that other person.

Application to Crown

Marginal note:Binding on Her Majesty

21.23 This Part binds Her Majesty in right of Canada or a province.

Imposition of Tax

Marginal note:Imposition of tax

• 21.24 (1) There shall be imposed, levied and collected a tax at the rate of eleven per cent on the amount charged for a taxable service acquired from a licensee, payable by the person charged for the service at the time the amount charged is paid or payable, whichever is the earlier.

• Marginal note:Tax on long distance calls from a pay telephone

  (2) Notwithstanding subsection (1), where long distance telephone service is acquired and paid for by means of a coin-operated telephone and the amount charged for the service exceeds fifty cents, the tax payable in respect of the service shall be calculated at the rate of five cents for every fifty cents or part thereof charged for the service in excess of twenty-four cents.

• Marginal note:Tax on paging service

  (3) Notwithstanding subsection (1), where a paging service is acquired, the tax payable in respect of the service shall be calculated at the rate of thirty cents, in respect of each paging terminal device by means of which the service is acquired, for each month or fraction of a month in which the service is acquired.

• Marginal note:Tax on private international service

  (4) Notwithstanding subsection (1), where telecommunication service between a place in Canada and a place outside Canada is provided by means of a telecommunication line, channel or other facility that is dedicated to the sole use of a person, the tax payable in respect of the service shall be calculated on the amount charged for the service only to the extent that the amount charged is for service provided in Canada.

Determination of Amount Charged in Certain Circumstances

Marginal note:Where service acquired by licensee

• 21.25 (1) Where a licensee has provided a taxable service to itself for use in the administration or management of its business, for the purposes of this Part, the licensee shall be deemed to have acquired the taxable service from itself for an amount charged equal to fifty per cent of the amount charged that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length and the amount charged shall be deemed to be payable at the end of the month in which the service was provided.

• Marginal note:Where service acquired by non-arm’s length person

  (2) Where a licensee has provided a taxable service to a person with whom the licensee was not dealing at arm’s length at the time of the provision for no amount charged or for an amount charged that was less than the amount charged (in this subsection referred to as the “reasonable charge”) that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length, for the purposes of this Part, that person shall be deemed to have acquired the taxable service from the licensee for an amount charged equal to the reasonable charge for the service and, where there was no amount charged, the amount charged shall be deemed to be payable at the end of the month in which the service was provided.

• Marginal note:Where service acquired under certain circumstances

  (3) Subject to subsection (2), where a licensee has provided a taxable service to a person and the amount charged for the service cannot be ascertained, for the purposes of this Part, that person shall be deemed to have acquired the taxable service from the licensee for an amount charged equal to the amount that is reasonable in the circumstances.

• Marginal note:Reasonable charge where approved tariff

  (4) Where the amount that may be charged for a taxable service provided by a licensee was set out or provided for separately in an approved tariff of the licensee at the time of the provision, the amount as so set out or provided for shall be deemed to be

  • (a) for the purposes of subsections (1) and (2), the amount charged that would have been reasonable in the circumstances; and

  • (b) for the purposes of subsection (3), the amount that is reasonable in the circumstances.