21. (1) Every employer paying remuneration to an employee employed by the employer at any time in pensionable employment shall deduct from that remuneration as or on account of the employee’s contribution for the year in which the remuneration for the pensionable employment is paid to the employee such amount as is determined in accordance with prescribed rules and shall remit that amount, together with such amount as is prescribed with respect to the contribution required to be made by the employer under this Act, to the Receiver General at such time as is prescribed and, where at that prescribed time the employer is a prescribed person, the remittance shall be made to the account of the Receiver General at a financial institution (within the meaning that would be assigned by the definition “financial institution” in subsection 190(1) of the Income Tax Act if that definition were read without reference to paragraphs (d) and (e) thereof).

(2) Subject to subsection (3), every employer who fails to deduct and remit an amount from the remuneration of an employee as and when required under subsection (1) is liable to pay to Her Majesty the whole amount that should have been deducted and remitted from the time it should have been deducted.

(3) An employer is not liable for any amount that the employer fails to deduct as required by this Act from the remuneration of an employee, or for any interest or penalties for that failure, if

(a) the employer is informed in writing in a ruling under section 26.1 that the employer is not required to make the deduction;

(b) the ruling is not based on information provided by the employer to the Minister that was incorrect in a material particular; and

(c) it is subsequently decided under subsection 27.2(3) or section 28 that the deduction should have been made.

(3.1) Once the decision under subsection 27.2(3) or section 28 is communicated to the employer, the employer is liable without interest or penalties under this Act to pay the contribution required to be paid by the employer with respect to the employee. On payment by the employer of any amount as or on account of that contribution, the employee is deemed to have notified the Minister as required by paragraph 15(1)(b) of the employer’s failure to deduct the amount of that contribution from the remuneration of the employee.

(4) Any employer who fails to deduct an amount that is required by subsection (1) to be deducted from a payment of remuneration to an employee may deduct an amount equal to the amount from any subsequent payment of remuneration made to the employee within 12 months after the making of the payment from which the amount was required to be deducted, but no employer may deduct from a payment of remuneration made to an employee, in addition to the amount required by subsection (1) to be deducted therefrom, any amount with respect to more than one such amount that the employer previously failed to deduct.

(5) Where an amount has been deducted under subsection (1), it shall be deemed for all purposes to have been received at that time by the employee to whom the remuneration was payable.

(6) Where an employer has failed to remit to the Receiver General an amount that the employer was required to remit at the time when he was required to do so, the employer shall pay to the Receiver General interest on that amount at the prescribed rate computed from the day on which the employer was so required to remit the amount to the day of remittance of the amount to the Receiver General.

(7) Every employer who in a calendar year fails to remit to the Receiver General an amount that the employer is required to remit at the time when he is required to do so is liable to a penalty of

(a) ten per cent of the amount; or

(b) where at the time of the failure a penalty under this subsection was payable by the employer in respect of an amount that the employer was required to remit during the year and the failure was made knowingly or under circumstances amounting to gross negligence, twenty per cent of the amount.

R.S., 1985, c. C-8, s. 21; R.S., 1985, c. 6 (1st Supp.), s. 1, c. 46 (4th Supp.), s. 1; 1991, c. 49, s. 205; 1993, c. 24, s. 143; 1997, c. 40, s. 62.

21.1 (1) If an employer who fails to deduct or remit an amount as and when required under subsection 21(1) is a corporation, the persons who were the directors of the corporation at the time when the failure occurred are jointly and severally or solidarily liable, together with the corporation, to pay to Her Majesty that amount and any interest or penalties relating to it.

(2) Subsections 227.1(2) to (7) of the Income Tax Act apply, with such modifications as the circumstances require, in respect of a director of a corporation referred to in subsection (1).

(3) The provisions of this Act respecting the assessment of an employer for an amount payable by the employer under this Act and respecting the rights and obligations of an employer so assessed apply in respect of a director of a corporation in respect of an amount payable by the director under subsection (1) in the same manner and to the same extent as if the director were the employer referred to in those provisions.

R.S., 1985, c. 6 (1st Supp.), s. 2; 2004, c. 25, s. 112(E).

22. (1) The Minister may assess an employer for an amount payable by him under this Act, or may re-assess the employer or make additional assessments as the circumstances require, and the expression “assessment” when used in this Act with reference to any action so taken by the Minister under this section includes any such re-assessment or additional assessment.

(2) After assessing an employer for an amount payable by him under this Act, the Minister shall send the employer a notice of assessment, and on that notice being sent to the employer, the assessment shall be deemed to be valid and binding, subject to being varied or vacated on appeal under this Act, and the employer is liable to pay to Her Majesty the amount thereof forthwith.

(3) Notwithstanding subsection (1) or (2), no assessment, re-assessment or additional assessment of an amount payable by an employer under this Act may be made by the Minister under this section after four years have elapsed from the earliest of the days on or before which any contribution in relation to which that amount is payable should have been paid, unless the employer has made any misrepresentation or committed any fraud in filing any return or in supplying any information pursuant to this Part in relation thereto.

R.S., c. C-5, s. 23.

23. (1) All contributions, interest, penalties and other amounts payable by a person under this Act are debts due to Her Majesty and recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided for by this Act.

(2) Section 160, subsections 161(11) and 220(3.1), (4) and (5), sections 221.1 and 223 to 224.3, subsections 227(9.1) and (10), sections 229, 236 and 244 (except subsections 244(1) and (4)) and subsections 248(7) and (11) of the Income Tax Act apply, with such modifications as the circumstances require, in relation to all contributions, interest, penalties and other amounts payable by a person under this Act, and for the purposes of this subsection,

(a) the reference in subsection 224(1.2) of that Act to “subsection 227(10.1) or a similar provision” shall be read as a reference to "section 22 of the Canada Pension Plan"; and

(b) subsection 224(1.2) of the Income Tax Act shall apply to employer’s contributions, employee’s contributions, and related interest, penalties or other amounts, subject to subsections 69(1) and 69.1(1) of the Bankruptcy and Insolvency Act and section 11.4 of the Companies’ Creditors Arrangement Act.

(3) Where an employer has deducted an amount from the remuneration of an employee as or on account of any contribution required to be made by the employee but has not remitted the amount to the Receiver General, the employer is deemed, notwithstanding any security interest (as defined in subsection 224(1.3) of the Income Tax Act) in the amount so deducted, to hold the amount separate and apart from the property of the employer and from property held by any secured creditor (as defined in subsection 224(1.3) of the Income Tax Act) of that employer that but for the security interest would be property of the employer, in trust for Her Majesty and for payment to Her Majesty in the manner and at the time provided under this Act.

(4) Notwithstanding the Bankruptcy and Insolvency Act (except sections 81.1 and 81.2 of that Act), any other enactment of Canada, any enactment of a province or any other law, where at any time an amount deemed by subsection (3) to be held by an employer in trust for Her Majesty is not paid to Her Majesty in the manner and at the time provided under this Act, property of the employer and property held by any secured creditor (as defined in subsection 224(1.3) of the Income Tax Act) of that employer that but for a security interest (as defined in subsection 224(1.3) of the Income Tax Act) would be property of the employer, equal in value to the amount so deemed to be held in trust is deemed

(a) to be held, from the time the amount was deducted by the employer, separate and apart from the property of the employer, in trust for Her Majesty whether or not the property is subject to such a security interest, and

(b) to form no part of the estate or property of the employer from the time the amount was so deducted, whether or not the property has in fact been kept separate and apart from the estate or property of the employer and whether or not the property is subject to such a security interest

and is property beneficially owned by Her Majesty notwithstanding any security interest in such property or in the proceeds thereof, and the proceeds of such property shall be paid to the Receiver General in priority to all such security interests.

(4.1) For the purposes of subsections (3) and (4), a security interest does not include a prescribed security interest.

(5) Every person, other than a trustee in bankruptcy, who is an assignee, liquidator, receiver, receiver-manager, administrator, executor, liquidator of a succession or any other like person, in this section referred to as the "responsible representative" , administering, winding-up, controlling or otherwise dealing with a property, business or estate of another person, before distributing to one or more persons any property over which he or she has control in his or her capacity as the responsible representative, shall obtain a certificate from the Minister certifying that all amounts

(a) for which any employer is liable under this Act up to and including the date of distribution, and

(b) for the payment of which the responsible representative is or can reasonably be expected to become liable in his capacity as the responsible representative

have been paid or that security for the payment thereof has been accepted by the Minister.

(5.1) Where a responsible representative distributes to one or more persons property over which he has control in his capacity as the responsible representative, without obtaining a certificate under subsection (5) in respect of the amounts referred to in that subsection, the responsible representative is personally liable for the payment of those amounts to the extent of the value of the property distributed and the Minister may assess the responsible representative therefor in the same manner and with the same effect as an assessment made under section 22.

(6) Where an employer has become a bankrupt, the trustee in bankruptcy shall be deemed to be the agent of the bankrupt for all purposes of this Act.

(7) to (13) [Repealed, 1993, c. 24, s. 154]

R.S., 1985, c. C-8, s. 23; R.S., 1985, c. 5 (2nd Supp.), s. 1, c. 38 (3rd Supp.), s. 1; 1991, c. 49, s. 206; 1992, c. 27, s. 90; 1993, c. 24, s. 154; 1994, c. 21, s. 123; 1997, c. 40, s. 63; 1998, c. 19, s. 252; 2000, c. 30, s. 155; 2004, c. 25, s. 113.

24. (1) Every employer paying remuneration to an employee employed by him in pensionable employment shall keep records and books of account at his place of business or residence in Canada, or at such other place as may be designated by the Minister, in such form and containing such information as will enable any contributions payable under this Act or any contributions or other amounts that should have been deducted or paid to be determined, and where any such employer has failed to keep adequate records and books of account, the Minister may require him to keep such records and books of account as he may specify, and the employer shall thereafter keep records and books of account as so required.

(2) Every employer required by this section to keep records and books of account shall retain those records and books of account and every account and voucher necessary to verify the information contained therein until the expiration of six years from the end of the year in respect of which those records and books of account are kept or until written permission for their prior disposal is given by the Minister.

(2.1) Every employer required by this section to keep records who does so electronically shall retain them in an electronically readable format for the retention period referred to in subsection (2).

(2.2) The Minister may, on such terms and conditions as are acceptable to the Minister, exempt an employer or a class of employers from the requirement in subsection (2.1).

(3) If the employer or an employee of the employer is subject to a ruling under section 26.1 or has made an appeal to the Minister under section 27 or 27.1, the employer shall retain every record, book of account, account and voucher necessary for dealing with the ruling or the appeal until the ruling is made or the appeal is disposed of and any further appeal is disposed of or the time for filing a further appeal has expired.

R.S., 1985, c. C-8, s. 24; 1991, c. 49, s. 207; 1997, c. 40, s. 64; 1998, c. 19, s. 253.

25. (1) In this section,

“authorized person” means a person authorized by the Minister for the purposes of this section;

“documents” includes money, securities and any of the following, whether computerized or not: books, records, letters, telegrams, vouchers, invoices, accounts and statements (financial or otherwise);

“dwelling-house” means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence and includes

(a) a building within the curtilage of a dwelling-house that is connected to it by a doorway or by a covered and enclosed passageway, and

(b) a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as such a residence;

“judge” means a judge of a superior court having jurisdiction in the province where the matter arises or a judge of the Federal Court.

(2) An authorized person may, at any reasonable time, for any purpose relating to the administration or enforcement of this Act, inspect, audit or examine any document that relates or may relate to the information that is or should be contained in the records or books of account or to the amount of any contribution payable under this Act and, for those purposes, the authorized person may

(a) subject to subsection (3), enter any premises or place where any records or books of account are or should be kept; and

(b) require the owner, occupant or person in charge of the premises or place to give to the authorized person all reasonable assistance and to answer all proper questions relating to the administration or enforcement of this Act and, for that purpose, require the owner, occupant or person in charge of the premises or place to attend at such premises or place with the authorized person.

(3) Where a premises or place referred to in subsection (2) is a dwelling-house, an authorized person may not enter that dwelling-house without the consent of the occupant except under the authority of a warrant issued under subsection (4).

(4) Where, on ex parte application by the Minister, a judge is satisfied by information on oath

(a) that there are reasonable grounds to believe that a dwelling-house is a premises or place referred to in subsection (2),

(b) that entry into the dwelling-house is necessary for any purpose relating to the administration or enforcement of this Act, and

(c) that entry into the dwelling-house has been refused or that there are reasonable grounds for believing that entry thereto will be refused,

the judge shall issue a warrant authorizing an authorized person to enter that dwelling-house subject to such conditions as may be specified in the warrant but, where the judge is not satisfied that entry into that dwelling-house is necessary for any purpose relating to the administration or enforcement of this Act, the judge shall

(d) order the occupant of the dwelling-house to provide an authorized person with reasonable access to any document that is or should be kept therein, and

(e) make such other order as is appropriate in the circumstances to carry out the purposes of this Act

to the extent that access has been or may be expected to be refused and that the document is or may be expected to be kept in the dwelling-house.

(5) Notwithstanding any other provision of this Act, the Minister may, subject to subsection (6), for any purpose related to the administration or enforcement of this Act, by notice served personally or by registered or certified mail, require that any person provide, within such reasonable time as is stipulated in the notice,

(a) any information or additional information, including a return of income or a supplementary return; or

(b) any document.

(6) The Minister shall not impose on any person, in this section referred to as a “third party”, a requirement under subsection (5) to provide information or any document relating to one or more unnamed persons unless the Minister first obtains the authorization of a judge under subsection (7).

(7) On ex parte application by the Minister, a judge may, subject to such conditions as the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (5) relating to an unnamed person or more than one unnamed person, in this section referred to as the “group”, where the judge is satisfied by information on oath that

(a) the person or group is ascertainable; and

(b) the requirement is made to verify compliance by the person or persons in the group with any duty or obligation under this Act.

(c) and (d) [Repealed, 1998, c. 19, s. 254]

(8) Where an authorization is granted under subsection (7), the authorization shall be served together with the notice referred to in subsection (5).

(9) Where an authorization is granted under subsection (7), a third party on whom a notice is served under subsection (5) may, within 15 days after the service of the notice, apply to the judge who granted the authorization or, where the judge is unable to act, to another judge of the same court for a review of the authorization.

(10) On hearing an application under subsection (9), a judge may cancel the authorization previously granted if the judge is not then satisfied that the conditions in paragraphs (7)(a) and (b) have been met and the judge may confirm or vary the authorization if satisfied that those conditions have been met.

(11) Where a person is found guilty of an offence under subsection 41(2) for failing to comply with a requirement under subsection (5), the court may make such order as it deems proper in order to enforce compliance with the requirement.

(12) Where any document is inspected, audited, examined or provided under this section, the person by whom it is inspected, audited or examined or to whom it is provided or any officer of the Canada Revenue Agency may make, or cause to be made, one or more copies thereof and, in the case of an electronic document, make or cause to be made a print-out of the electronic document, and any document purporting to be certified by the Minister or an authorized person to be a copy of the document, or to be a print-out of an electronic document, made pursuant to this subsection is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way.

(13) No person shall hinder, molest or interfere with any person doing anything that he is authorized to do by or pursuant to this section or prevent or attempt to prevent any person from doing any such thing and, notwithstanding any other Act or law, every person shall, unless he is unable to do so, do everything he is required to do by or pursuant to this section.

R.S., 1985, c. C-8, s. 25; R.S., 1985, c. 5 (2nd Supp.), s. 2; 1991, c. 49, s. 208; 1994, c. 13, s. 8; 1998, c. 19, s. 254; 1999, c. 17, s. 111; 2005, c. 38, s. 138.

26. (1) No action lies against any person for deducting any sum of money in compliance or intended compliance with this Act.

(2) The receipt of the Minister for an amount deducted by any person as required by or under this Act is a good and sufficient discharge of the liability of any debtor to his creditor with respect thereto to the extent of the amount referred to in the receipt.

R.S., c. C-5, s. 27.

26.1 (1) The Minister of Social Development, an employer, an employee or a person claiming to be an employer or an employee may request an officer of the Canada Revenue Agency authorized by the Minister of National Revenue to make a ruling on any of the following questions:

(a) whether an employment is pensionable;

(b) how long an employment lasts, including the dates on which it begins and ends;

(c) what is the amount of any earnings from pensionable employment;

(d) whether a contribution is payable;

(e) what is the amount of a contribution that is payable; and

(f) who is the employer of a person in pensionable employment.

(2) The Minister of Social Development may request a ruling at any time, but a request by any other person must be made before June 30 of the year after the year in respect of which the question relates.

(3) The authorized officer shall make the ruling within a reasonable time after receiving the request.

(4) Unless a ruling has been requested with respect to a person in pensionable employment,

(a) an amount deducted from the remuneration of the person or paid by an employer as a contribution for the person is deemed to have been deducted or paid in accordance with this Act; or

(b) an amount that has not been so deducted or paid is deemed not to have been required to be deducted or paid in accordance with this Act.

1997, c. 40, s. 65; 1999, c. 17, s. 111; 2005, c. 35, s. 67, c. 38, s. 138.

27. An appeal to the Minister from a ruling may be made by the Minister of Social Development at any time, and by any other person concerned within 90 days after the person is notified of the ruling.

R.S., 1985, c. C-8, s. 27; 1993, c. 24, s. 144; 1994, c. 13, s. 8; 1997, c. 40, s. 65; 2005, c. 35, s. 67.

27.1 An employer who has been assessed under section 22 may appeal to the Minister for a reconsideration of the assessment, either as to whether an amount should be assessed as payable or as to the amount assessed, within 90 days after being notified of the assessment.

1997, c. 40, s. 65.

27.2 (1) Where an appeal is made to the Minister under section 27 or 27.1, the Minister shall

(a) notify any person who may be affected by the appeal that the Minister intends to decide the appeal, including the Minister of Social Development in the case of an appeal of a ruling; and

(b) give the person an opportunity to provide information and to make representations to protect the person’s interests, as the circumstances require.

(2) An appeal shall be addressed to the Assistant Director of Appeals in a Tax Services Office of the Canada Revenue Agency and delivered or mailed to that office.

(3) The Minister shall decide the appeal within a reasonable time after receiving it and shall notify the affected persons of the decision in any manner that the Minister considers adequate.

1997, c. 40, s. 65; 1999, c. 17, s. 111; 2005, c. 35, s. 67, c. 38, s. 138.

27.3 Nothing in sections 26.1 to 27.2 restricts the authority of the Minister to make a decision under this Part on the Minister’s own initiative or to make an assessment after the date mentioned in subsection 26.1(2).

1997, c. 40, s. 65.

28. (1) A person affected by a decision on an appeal to the Minister under section 27 or 27.1, or the person’s representative, may, within 90 days after the decision is communicated to the person, or within any longer time that the Tax Court of Canada on application made to it within 90 days after the expiration of those 90 days allows, appeal from the decision to that Court in accordance with the Tax Court of Canada Act and the applicable rules of court made thereunder.

(1.1) The determination of the time at which a decision on an appeal to the Minister under section 27 or 27.1 is communicated to a person shall be made in accordance with the rule, if any, made under paragraph 20(1.1)(h.1) of the Tax Court of Canada Act.

(1.2) Section 167, except paragraph 167(5)(a), of the Income Tax Act applies, with such modifications as the circumstances require, in respect of applications made under subsection (1).

(2) On an appeal under this section, the Tax Court of Canada may vacate, confirm or vary a decision on an appeal under section 27 or an assessment that is the subject of an appeal under section 27.1 or, in the case of an appeal under section 27.1, may refer the matter back to the Minister for reconsideration and reassessment, and shall without delay

(a) notify the parties to the appeal in writing of its decision; and

(b) give reasons for its decision, but, except where the Court deems it advisable in a particular case to give reasons in writing, the reasons given by it need not be in writing.

R.S., 1985, c. C-8, s. 28; R.S., 1985, c. 51 (4th Supp.), s. 9; 1993, c. 27, s. 212; 1997, c. 40, s. 65; 1998, c. 19, s. 255.

29. (1) The authority of the Minister or the Tax Court of Canada to decide an appeal under section 27, 27.1 or 28 includes the authority to decide any question of fact or law necessary to be decided in the course of the appeal and to decide whether a person is or may be affected by the decision of the appeal.

(2) Except as otherwise provided in this Act, the decision of the Minister or the Tax Court of Canada of an appeal under section 27, 27.1 or 28 and a ruling of an authorized officer under section 26.1 is final and binding for all purposes of this Act.

(3) If, on an appeal to the Tax Court of Canada from a decision of the Minister, a person affected by the decision is requested by the Court to attend before it on the consideration of the appeal and so attends, the person shall be paid such travel and other allowances, including compensation for loss of remunerative time, as are approved by the Treasury Board.

R.S., 1985, c. C-8, s. 29; R.S., 1985, c. 51 (4th Supp.), s. 9; 1990, c. 8, ss. 45, 78; 1997, c. 40, s. 65.

30. (1) Where a person is required to make a contribution for a year in respect of self-employed earnings, a return of the person’s self-employed earnings for the year shall, without notice or demand for it, be filed with the Minister in the prescribed form and manner and containing the prescribed information, by that person (or, if the person is unable for any reason to file the return, by their representative) on or before the day on or before which the person’s return of income under Part I of the Income Tax Act is required by that Part to be filed or would be required by that Part to be filed if tax under that Part were payable for the year.

(2) Whether or not he is liable to make a contribution for a year in respect of his self-employed earnings and whether or not a return has been filed under subsection (1), every person shall, on demand from the Minister, served personally or by registered letter, file with the Minister in prescribed form and containing prescribed information, within such reasonable time as may be stipulated in the demand, a return of his self-employed earnings for the year designated therein.

(3) Every trustee in bankruptcy, assignee, liquidator, curator, receiver, trustee or committee and every agent or other person administering, managing, winding-up, controlling or otherwise dealing with the property, business, estate or income of a person who has not filed a return of his self-employed earnings for a year as required by this section shall file with the Minister a return in prescribed form of that person’s self-employed earnings for the year.

(4) The prescribed information to be contained in any return of the self-employed earnings of a person for a year required by this section to be filed with the Minister shall identify the province in which that person was resident on the last day of that year.

(5) The amount of any contribution required by this Act to be made by a person for a year in respect of their self-employed earnings for the year is deemed to be zero where

(a) the return of those earnings required by this section to be filed with the Minister is not filed with the Minister before the day that is four years after the day on or before which the return is required by subsection (1) to be filed; and

(b) the Minister does not assess the contribution before the end of those four years.

R.S., 1985, c. C-8, s. 30; 1991, c. 49, s. 209; 1997, c. 40, s. 66.

31. Every person required by section 30 to file a return of his self-employed earnings shall in the return estimate the amount of the contribution to be made by him in respect thereof.

R.S., c. C-5, s. 32.

32. The Minister shall, with all due dispatch, examine each return of self-employed earnings and assess the contribution for the year in respect thereof and the interest and penalties, if any, payable, and, after the examination, shall send a notice of assessment to the person by whom the return was filed.

R.S., c. C-5, s. 33.

33. (1) Where

(a) the amount of the contribution required to be made by a person for a year in respect of his self-employed earnings is forty dollars or less, or

(b) a person who is required by this Act to make a contribution for a year in respect of his self-employed earnings is not required by section 155 or 156 of the Income Tax Act to pay instalments for that year in respect of his income tax,

the person shall, on or before the person’s balance-due day for the year, pay to the Receiver General the whole amount of the contribution.

(2) Every person to whom section 155 of the Income Tax Act applies, other than a person to whom subsection (1) applies, shall pay to the Receiver General on or before December 31 in each year, two thirds of

(a) the contribution required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person, or

(b) the contribution required in respect of the person’s self-employed earnings for the preceding year,

and, on or before the person’s balance-due day for the year, the remainder of the contribution as estimated under section 31, except that paragraphs (a) and (b) shall not require the payment of any amount in respect of the person that would otherwise become due after the death of the person.

(3) Every person, other than a person to whom subsection (1) or (2) applies, shall pay to the Receiver General in respect of each year

(a) on or before March 15, June 15, September 15 and December 15 in the year, an amount equal to one quarter of

(i) the contribution required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person, or

(ii) the contribution required in respect of the person’s self-employed earnings for the preceding year, or

(b) on or before

(i) March 15 and June 15 in the year, an amount equal to one quarter of the contribution required in respect of the person’s self-employed earnings for the second preceding year, and

(ii) September 15 and December 15 in the year, an amount equal to one half of the amount, if any, by which

(A) the contribution required in respect of the person’s self-employed earnings for the preceding year

exceeds

(B) one half of the contribution required in respect of the person’s self-employed earnings for the second preceding year,

and, on or before the person’s balance-due day for the year, the remainder of the contribution as estimated under section 31, except that paragraphs (a) and (b) shall not require the payment of any amount in respect of the person that would otherwise become due after the death of the person.

R.S., 1985, c. C-8, s. 33; 1991, c. 49, s. 210; 1993, c. 24, s. 145.

34. (1) Where the amount paid by a person on or before the person’s balance-due day for a year on account of contributions required to be made by the person for the year in respect of the person’s self-employed earnings is less than the amount of the contribution so required to be made, interest at a prescribed rate per annum is payable by the person on the difference between those amounts from the balance-due day for the year to the day of payment.

(2) In addition to any interest payable under subsection (1), where a person, being required by section 33 to pay a part or instalment of a contribution, has failed to pay all or any part thereof as required, he shall, on payment of the amount he failed so to pay, pay interest thereon at a prescribed rate per annum from the day on or before which he was required to make the payment to the day of payment or the beginning of the period in respect of which he is liable to pay interest thereon under subsection (1), whichever is the earlier.

(3) For the purposes of subsection (2), where a person is required by subsection 33(2) to pay a part or instalment of a contribution in respect of the person’s self-employed earnings, the person shall be deemed to have been liable to pay on or before the day referred to in subsection 33(2) a part or instalment computed by reference to

(a) the contribution required to be made by the person for the year in respect of the person’s self-employed earnings, minus forty dollars,

(b) the contribution required in respect of the person’s self-employed earnings for the preceding year, or

(c) the amount stated to be the amount of the instalment payable by the person for the year in the notice, if any, sent to the person by the Minister,

whichever method gives rise to the least amount required to be paid by the person on or before that day.

(4) For the purposes of subsection (2), where a person is required by subsection 33(3) to pay a part or instalment of a contribution in respect of the person’s self-employed earnings, the person shall be deemed to have been liable to pay on or before each day referred to in subsection 33(3) a part or instalment computed by reference to

(a) the contribution required to be made by the person for the year in respect of the person’s self-employed earnings, minus forty dollars,

(b) the contribution required in respect of the person’s self-employed earnings for the preceding year,

(c) the amounts determined under paragraph 33(3)(b) in respect of the person for the year, or

(d) the amounts stated to be the amounts of instalment payable by the person for the year in the notices, if any, sent to the person by the Minister,

whichever method gives rise to the least total amount of those parts or instalments required to be paid by the person by that day.

R.S., 1985, c. C-8, s. 34; 1991, c. 49, s. 211; 1993, c. 24, s. 146; 1994, c. 21, s. 124.

35. (1) Every person who fails to file a return of that person’s self-employed earnings for a year as and when required by section 30 is liable to a penalty of five per cent of such part of the amount of the contribution required to be made by that person for the year in respect thereof as remained unpaid at the expiration of the time the return was required to be filed, except that, where that person is liable to a penalty under subsection 162(1) or (2) of the Income Tax Act in respect of the year, the Minister may reduce the penalty to which that person is liable under this section or may remit the penalty in whole or in part.

(2) Every person who fails to file a return as required by subsection 30(3) is liable to a penalty of five dollars for each day of default, but not exceeding in all fifty dollars.

R.S., 1985, c. C-8, s. 35; 1991, c. 49, s. 212.

36. Subject to this Part and except as otherwise provided by regulation, the provisions of Divisions I and J of Part I of the Income Tax Act with respect to payment of tax, assessments, objections to assessments, appeals, interest, penalties and excess refunds, and the provisions of Part XV (except section 221) and subsections 248(7) and (11) of that Act apply, with such modifications as the circumstances require, in relation to any amount paid or payable as or on account of the contribution for a year in respect of self-employed earnings as though that amount were an amount paid or payable as or on account of tax under that Act.

R.S., 1985, c. C-8, s. 36; R.S., 1985, c. 38 (3rd Supp.), s. 2; 1991, c. 49, s. 213.

37. Where any payment is made by a person to the Minister on account of taxes specified in section 228 of the Income Tax Act and of a contribution under this Act in respect of self-employed earnings, notwithstanding any direction made by the person making the payment with respect to its application, the part of the payment that would be applied under that section in payment of tax under the Income Tax Act shall be applied in payment of the contribution under this Act and shall be deemed to be a payment on account thereof, and to the extent of the amount so applied shall not discharge liability for tax under the Income Tax Act, and any amount then remaining shall be applied in payment of tax under the Income Tax Act and shall discharge the liability of the person making the payment for that tax to the extent of that amount.

R.S., c. C-5, s. 38; 1970-71-72, c. 43, s. 3, c. 63, s. 4.