T-0.1 - Act respecting the Québec sales tax

Section 41.0.1 Disposition versions

2019-06-19

41.0.1. Where a registrant, in the course of a commercial activity of the registrant, acts as mandatary in making a supply, otherwise than by auction, on behalf of a person who is required to collect tax in respect of the supply otherwise than as a consequence of the application of paragraph 1 of section 41.1 and the registrant and the person jointly elect in prescribed form containing prescribed information, the following rules apply:

(1)  the tax collectible in respect of the supply or any amount charged or collected by the registrant on behalf of the person as or on account of tax in respect of the supply is deemed to be collectible, charged or collected, as the case may be, by the registrant, and not by the person, for the purpose of

(a)  determining the net tax of the registrant and the net tax, or the specified net tax, of the person, and

(b)  applying sections 447 to 450 and 477.16 and section 20 of the Tax Administration Act (chapter A-6.002);

(2)  the registrant and the person are solidarily liable for all obligations that arise from the application of this Title because of

(a)  the tax becoming collectible,

(b)  a failure to account for or pay, in the manner and within the time specified in this Title, an amount of net tax of the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to the supply,

(c)  the registrant claiming, in respect of the supply, an amount as a deduction under sections 443.1 to 446.1 or sections 447 to 450 and 477.16 to which the registrant was not entitled or in excess of the amount to which the registrant was entitled,

(d)  a failure to pay, in the manner and within the time specified in this Title, the amount of any underpayment of net tax by the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to a claim referred to in subparagraph c,

(e)  a recovery of all or part of a bad debt relating to the supply in respect of which the registrant claimed a deduction under sections 443.1 to 446.1, or

(f)  a failure to account for or pay, in the manner and within the time specified in this Title, an amount of net tax of the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to an amount required under section 446 to be added to the net tax of the registrant in respect of a bad debt referred to in subparagraph e; and

(3)  the threshold amounts of the registrant and of the person under sections 462 and 462.1 must be determined as if all or part of the consideration that became due to the person, or was paid to the person without having become due, in respect of the supply had become due to the registrant, or had been paid to the registrant without having become due, as the case may be, and not to the person.

1995, c. 63, s. 314; 1997, c. 85, s. 439; 2009, c. 5, s. 597; 2010, c. 31, s. 175; 2019, c. 14, s. 535.

2011-04-01

41.0.1. Where a registrant, in the course of a commercial activity of the registrant, acts as mandatary in making a supply, otherwise than by auction, on behalf of a person who is required to collect tax in respect of the supply otherwise than as a consequence of the application of paragraph 1 of section 41.1 and the registrant and the person jointly elect in prescribed form containing prescribed information, the following rules apply:

(1)  the tax collectible in respect of the supply or any amount charged or collected by the registrant on behalf of the person as or on account of tax in respect of the supply is deemed to be collectible, charged or collected, as the case may be, by the registrant, and not by the person, for the purpose of

(a)  determining the net tax of the registrant and of the person, and

(b)  applying sections 447 to 450 and section 20 of the Tax Administration Act (chapter A-6.002);

(2)  the registrant and the person are solidarily liable for all obligations that arise from the application of this Title because of

(a)  the tax becoming collectible,

(b)  a failure to account for or pay, in the manner and within the time specified in this Title, an amount of net tax of the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to the supply,

(c)  the registrant claiming, in respect of the supply, an amount as a deduction under sections 443.1 to 446.1 or sections 447 to 450 to which the registrant was not entitled or in excess of the amount to which the registrant was entitled,

(d)  a failure to pay, in the manner and within the time specified in this Title, the amount of any underpayment of net tax by the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to a claim referred to in subparagraph c,

(e)  a recovery of all or part of a bad debt relating to the supply in respect of which the registrant claimed a deduction under sections 443.1 to 446.1, or

(f)  a failure to account for or pay, in the manner and within the time specified in this Title, an amount of net tax of the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to an amount required under section 446 to be added to the net tax of the registrant in respect of a bad debt referred to in subparagraph e; and

(3)  the threshold amounts of the registrant and of the person under sections 462 and 462.1 must be determined as if all or part of the consideration that became due to the person, or was paid to the person without having become due, in respect of the supply had become due to the registrant, or had been paid to the registrant without having become due, as the case may be, and not to the person.

1995, c. 63, s. 314; 1997, c. 85, s. 439; 2009, c. 5, s. 597; 2010, c. 31, s. 175.

2009-05-15

41.0.1. Where a registrant, in the course of a commercial activity of the registrant, acts as mandatary in making a supply, otherwise than by auction, on behalf of a person who is required to collect tax in respect of the supply otherwise than as a consequence of the application of paragraph 1 of section 41.1 and the registrant and the person jointly elect in prescribed form containing prescribed information, the following rules apply:

(1)  the tax collectible in respect of the supply or any amount charged or collected by the registrant on behalf of the person as or on account of tax in respect of the supply is deemed to be collectible, charged or collected, as the case may be, by the registrant, and not by the person, for the purpose of

(a)  determining the net tax of the registrant and of the person, and

(b)  applying sections 447 to 450 and section 20 of the Act respecting the Ministère du Revenu (chapter M-31);

(2)  the registrant and the person are solidarily liable for all obligations that arise from the application of this Title because of

(a)  the tax becoming collectible,

(b)  a failure to account for or pay, in the manner and within the time specified in this Title, an amount of net tax of the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to the supply,

(c)  the registrant claiming, in respect of the supply, an amount as a deduction under sections 443.1 to 446.1 or sections 447 to 450 to which the registrant was not entitled or in excess of the amount to which the registrant was entitled,

(d)  a failure to pay, in the manner and within the time specified in this Title, the amount of any underpayment of net tax by the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to a claim referred to in subparagraph c,

(e)  a recovery of all or part of a bad debt relating to the supply in respect of which the registrant claimed a deduction under sections 443.1 to 446.1, or

(f)  a failure to account for or pay, in the manner and within the time specified in this Title, an amount of net tax of the registrant, or an amount that was paid to the registrant or applied on account of a refund or rebate under Divisions II to IV of Chapter VIII to which the registrant was not entitled or that exceeds the refund or rebate to which the registrant was entitled, that is reasonably attributable to an amount required under section 446 to be added to the net tax of the registrant in respect of a bad debt referred to in subparagraph e; and

(3)  the threshold amounts of the registrant and of the person under sections 462 and 462.1 must be determined as if all or part of the consideration that became due to the person, or was paid to the person without having become due, in respect of the supply had become due to the registrant, or had been paid to the registrant without having become due, as the case may be, and not to the person.

1995, c. 63, s. 314; 1997, c. 85, s. 439; 2009, c. 5, s. 597.

1997-12-19

41.0.1. Where a registrant, in the course of a commercial activity of the registrant, acts as mandatary in making a supply, otherwise than by auction, on behalf of a person who is required to collect tax in respect of the supply otherwise than as a consequence of the application of paragraph 1 of section 41.1 and the registrant and the person jointly elect in prescribed form containing prescribed information, the following rules apply:

(1)  the tax collectible in respect of the supply shall be included in determining the net tax of the registrant and not of the person as if the tax were collectible by the registrant; and

(2)  the registrant and the person are solidarily liable for all obligations that arise upon or as a consequence of the tax becoming collectible or any failure to account for or remit the tax.

1995, c. 63, s. 314; 1997, c. 85, s. 439.

1995-12-15

41.0.1. Where a registrant (in this section referred to as the “mandatary”), acting as mandatary of another registrant (in this section referred to as the “mandator”) in the course of a commercial activity of the mandatary, makes a taxable supply, otherwise than by auction, of property or a service on behalf of the mandator to a recipient and the mandatary does not disclose to the recipient in writing the name of the mandator and the registration number assigned to the mandator under Division I of Chapter VIII, the following rules apply:

(1)  the mandator is deemed not to have made the supply to the recipient;

(2)  the mandatary is deemed to have made the supply to the recipient;

(3)  the mandatary is deemed not to have made a supply to the mandator of a service relating to the supply to the recipient;

(4)  the mandator is deemed to have made a supply of the property or service to the mandatary, and the mandatary is deemed to have received that supply from the mandator; and

(5)  where a particular amount of consideration for the supply of the property or service to the recipient becomes due or is paid and at one or more times the mandatary remits to, or credits in favour of, the mandator an amount on account of the particular amount, the mandatary is deemed to have paid, and the mandator is deemed to have received, at the earliest of those times, consideration for the supply deemed under subparagraph 4 to have been made to the mandatary equal to the amount determined by the formula

A - B.

For the purposes of this formula,

(1)  A is the particular amount; and

(2)  B is the consideration that would be determined in respect of the supply of a service relating to the supply to the recipient that, but for this section and subsection 1 of section 177 of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15), would be made by the mandatary to the mandator and that has become due or been paid or, where the supply to the recipient was made by way of lease, licence or similar arrangement, the portion of that consideration that is reasonably attributable to the period to which the particular amount relates and that has not been attributed to a preceding…period.

1995, c. 63, s. 314.