Select Luxury Items Tax Act (S.C. 2022, c. 10, s. 135)

Marginal note:Estate or succession of deceased individual

• 61 (1) Subject to subsections 60(4) and (5) and sections 62 and 63, if an individual dies, this Act (other than section 75) applies as though the estate or succession of the individual were the individual and the individual had not died, except that

  • (a) the reporting period of the individual during which the individual died ends on the day the individual died; and

  • (b) a reporting period of the estate or succession begins on the day after the individual died and ends on the day the reporting period of the individual would have ended if the individual had not died.

• Marginal note:Extension

  (2) Despite any other provision of this Act, if the return for the reporting period referred to in paragraph (1)(a) would, in the absence of this subsection, have been required to be filed earlier than the particular day that is the last day of the third month after the month in which the individual died, that return is required to be filed not later than the particular day and any amount payable under this Act in respect of that reporting period is payable to the Receiver General on the particular day.

Marginal note:Definitions

• 62 (1) The following definitions apply in this section and in section 63.

  trust

  trust includes the estate or succession of a deceased individual. (fiducie)

  trustee

  trustee includes the personal representative of a deceased individual, but does not include a receiver as defined in subsection 60(1). (fiduciaire)

• Marginal note:Trustee’s liability

  (2) Subject to subsection (3), each trustee of a trust is liable to satisfy every obligation imposed on the trust under this Act, whether the obligation was imposed during or before the period during which the trustee acts as trustee of the trust, but the satisfaction of an obligation of a trust by one of the trustees of the trust discharges the liability of all other trustees of the trust to satisfy that obligation.

• Marginal note:Joint and several or solidary liability

  (3) A trustee of a trust is jointly and severally, or solidarily, liable with the trust and each of the other trustees, if any, for the payment of all amounts that are required to be paid by the trust under this Act before or during the period during which the trustee acts as trustee of the trust except that

  • (a) the trustee is liable for the payment of amounts that are required to be paid by the trust under this Act before the period only to the extent of the property of the trust under the control of the trustee; and

  • (b) the payment by the trust or the trustee of an amount in respect of the liability discharges their liability to the extent of that amount.

• Marginal note:Waiver

  (4) The Minister may, in writing, waive the requirement for the personal representative of a deceased individual to file a return for a reporting period of the individual ending on or before the day the individual died.

• Marginal note:Activities of trustee

  (5) For the purposes of this Act, if a person acts as trustee of a trust, anything done by the person in the person’s capacity as trustee of the trust is deemed to have been done by the trust and not by the person.

Marginal note:Distribution by trust

63 For the purposes of this Act, if a trustee of a trust distributes, at a particular time, property of the trust to one or more persons, the distribution of the property is deemed to be a transfer of ownership of the property by the trust to the persons at the particular time and the property is deemed to be delivered to the persons the location at which the property is located at the particular time.

SUBDIVISION BAmalgamation and Winding-up

Marginal note:Amalgamations

• 64 (1) If two or more corporations (each of which is referred to in this section as a “predecessor”) are merged or amalgamated to form one corporation (in this section referred to as the “new corporation”), otherwise than as the result of the acquisition of property of one corporation by another corporation pursuant to the purchase of the property by the other corporation or as the result of the distribution of the property to the other corporation on the winding-up of the corporation, except for prescribed purposes, the new corporation is, for the purposes of this Act, deemed to be the same corporation as, and a continuation of, each predecessor.

• Marginal note:Reporting period

  (2) If subsection (1) applies in respect of predecessors that are merged or amalgamated at a particular time

  • (a) the reporting period of each predecessor that includes the particular time ends on the day that includes the particular time; and

  • (b) a reporting period of the new corporation begins on the day following the day that includes the particular time and ends on the last day of the reporting period of the new corporation, if that reporting period were determined in the absence of this subsection, that includes the particular time.

Marginal note:Winding-up

• 65 (1) If at a particular time a particular corporation is wound up and not less than 90% of the issued shares of each class of the capital stock of the particular corporation were, immediately before the particular time, owned by another corporation, except for prescribed purposes, the other corporation is, for the purposes of this Act, deemed to be the same corporation as, and a continuation of, the particular corporation.

• Marginal note:Reporting period

  (2) If the other corporation referred to in subsection (1) is deemed to be the same corporation as, and a continuation of, the particular corporation referred to in that subsection

  • (a) the reporting period of the particular corporation that includes the particular time referred to in that subsection ends on the day that includes the particular time; and

  • (b) a reporting period of the other corporation begins on the day following the day that includes the particular time and ends on the last day of the reporting period of the other corporation, if that reporting period were determined in the absence of this subsection, that includes the particular time.

SUBDIVISION CPartnerships and Joint Ventures

Marginal note:Partnerships

• 66 (1) For the purposes of this Act, anything done by a person as a member of a partnership is deemed to have been done by the partnership in the course of the partnership’s activities and not to have been done by the person.

• Marginal note:Joint and several or solidary liability

  (2) A partnership and each member or former member (each of which is referred to in this subsection as the “member”) of the partnership (other than a member that is a limited partner and is not a general partner) are jointly and severally, or solidarily, liable for

  • (a) the payment of all amounts that are required to be paid by the partnership under this Act before or during the period during which the member is a member of the partnership or, if the member was a member of the partnership at the time the partnership was dissolved, after the dissolution of the partnership, except that

    • (i) the member is liable for the payment of amounts that become payable before the period only to the extent of the property that is regarded as property of the partnership under the relevant laws of general application in force in a province relating to partnerships, and

    • (ii) the payment by the partnership or by any member of the partnership of an amount in respect of the liability discharges their liability to the extent of that amount; and

  • (b) all other obligations under this Act that arose before or during that period for which the partnership is liable or, if the member was a member of the partnership at the time the partnership was dissolved, the obligations that arose upon or as a consequence of the dissolution.

Marginal note:Joint ventures

• 67 (1) For the purposes of this Act, anything done by a participant in a joint venture, or by an operator of the joint venture, in the course of the activities for which the joint venture agreement was entered into are deemed to have been done by the joint venture in the course of the joint venture’s activities and not to have been done by the participant or operator.

• Marginal note:Joint and several or solidary liability

  (2) A joint venture and each participant in, or operator of, the joint venture (each of which is referred to in this subsection as the “member”) are jointly and severally, or solidarily, liable for

  • (a) the payment of all amounts that become payable by the joint venture under this Act before or during the period during which the member is a participant in, or operator of, the joint venture, except that the payment by the joint venture or by any member of an amount in respect of the liability discharges their liability to the extent of that amount; and

  • (b) all other obligations under this Act that arose before or during that period for which the joint venture is liable.

SUBDIVISION DAnti-avoidance

Marginal note:Definitions

• 68 (1) The following definitions apply in this section.

  tax benefit

  tax benefit means a reduction, an avoidance or a deferral of an amount of tax or other amount payable by a person under this Act or an increase in a rebate or other amount payable to a person under this Act. (avantage fiscal)

  tax-related consequences

  tax-related consequences to a person means the amount of tax, net tax, rebate or other amount payable by, or payable to, the person under this Act, or any other amount that is relevant for the purposes of computing that amount. (attribut fiscal)

  transaction

  transaction includes an arrangement or event. (opération)

• Marginal note:General anti-avoidance provision

  (2) If a transaction is an avoidance transaction, the tax-related consequences to a person must be determined as is reasonable in the circumstances in order to deny a tax benefit that, in the absence of this section, would result directly or indirectly from that transaction or from a series of transactions that includes that transaction.

• Marginal note:Avoidance transaction

  (3) An avoidance transaction means any transaction

  • (a) that, in the absence of this section, would result directly or indirectly in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit; or

  • (b) that is part of a series of transactions, which series, in the absence of this section, would result directly or indirectly in a benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit.

• Marginal note:Provision not applicable

  (4) For greater certainty, subsection (2) does not apply in respect of a transaction if it may reasonably be considered that the transaction would not result directly or indirectly in a misuse of the provisions of this Act or in an abuse having regard to the provisions of this Act (other than this section) read as a whole.

• Marginal note:Determination of tax-related consequences

  (5) Without restricting the generality of subsection (2), in determining the tax-related consequences to a person, as is reasonable in the circumstances, in order to deny a tax benefit that would, in the absence of this section, result directly or indirectly from an avoidance transaction

  • (a) any rebate or any deduction in net tax may be allowed or disallowed, in whole or in part;

  • (b) any rebate or deduction referred to in paragraph (a) may, in whole or in part, be allocated to any person;

  • (c) the nature of any payment or other amount may be recharacterized; and

  • (d) the effects that would otherwise result from the application of other provisions of this Act may be ignored.

• Marginal note:Exception

  (6) Despite any other provision of this Act, the tax-related consequences to any person following the application of this section must only be determined through an assessment, reassessment or additional assessment involving the application of this section.

Marginal note:Definitions

• 69 (1) The following definitions apply in this section.

  parameter change

  parameter change means a change in any of the following:

  • (a) a formula, or an element of a formula, in a provision of this Act;

  • (b) a price threshold in respect of a subject item;

  • (c) a manner for determining the taxable amount of a subject item or the amount of tax payable in respect of a subject item;

  • (d) an activity described in subsection 11(3) or (4); or

  • (e) words or expressions defined in a provision of this Act. (modification de paramètre)

  tax benefit

  tax benefit has the meaning assigned by subsection 68(1). (avantage fiscal)

  transaction

  transaction has the meaning assigned by subsection 68(1). (opération)

• Marginal note:Parameter change — transactions

  (2) If

  • (a) a transaction, or a series of transactions, involving property is made between two or more persons, all of whom are not dealing with each other at arm’s length at the time any of those transactions are made,

  • (b) the transaction, any of the transactions in the series of transactions or the series of transactions would in the absence of this section result directly or indirectly in a tax benefit to one or more of the persons involved in the transaction or series of transactions, and

  • (c) it may not reasonably be considered that the transaction, or the series of transactions, has been undertaken or arranged primarily for bona fide purposes other than to obtain a tax benefit, arising from a parameter change, for one or more of the persons involved in the transaction or series of transactions,

  the amount of tax, net tax, rebate or other amount payable by, or payable to, any of those persons under this Act, or any other amount that is relevant for the purposes of computing that amount must be determined as is reasonable in the circumstances in order to deny the tax benefit to any of those persons.

• Marginal note:Denying tax benefit on transactions

  (3) Despite any other provision of this Act, a tax benefit must only be denied under subsection (2) through an assessment, reassessment or additional assessment.

DIVISION 2Administration and Enforcement

SUBDIVISION APayments

Marginal note:Set-off of rebate

70 If, at any time, a person files a particular return under section 55 in which the person reports an amount that is required to be paid by the person under this Act and the person claims a rebate under Subdivision B of Division 4 of Part 1 or subsection 57(4) payable to the person under this Act at that time, in the particular return or in another return, or in a separate application filed under this Act with the particular return, the person is deemed to have paid at that time, and the Minister is deemed to have rebated at that time, an amount equal to the lesser of the amount required to be paid and the amount of the rebate.

Marginal note:Definition of electronic payment

• 71 (1) In this section, electronic payment means any payment to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (2)(a) to (d) or by any electronic means specified by the Minister.

• Marginal note:Electronic payment

  (2) Every person that is required under this Act to pay an amount to the Receiver General must, if the amount is $10,000 or more, make the payment by way of electronic payment, unless the person cannot reasonably pay the amount in that manner, to the account of the Receiver General at or through

  • (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 that is 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 indebtedness on the security of mortgages on real property or hypothecs on immovables.