Petroleum and Gas Revenue Tax Act — P-12 28
Actions for deducting, etc., prohibited 28 (1) No action lies against any person for deducting or withholding any sum of money in compliance or intended compliance with this Part. Deduction, etc., deemed held in trust (2) Every person who deducts or withholds any amount that is required under this Part to be remitted shall be deemed to hold that amount in trust for Her Majesty in right of Canada and all such amounts shall be kept separate and apart from that person’s own moneys and, in the event of any liquidation, assignment or bankruptcy, those amounts shall remain apart and form no part of the estate in liquidation, assignment or bankruptcy. Payment by Minister where no liability for tax (3) Where a person on whose behalf an amount has been deducted or withheld under this Part is not liable to pay any tax under this Part or the amount deducted or withheld is in excess of the tax that the person is liable to pay, the Minister shall, on application in writing by or on behalf of the person made to the Minister within two years from the end of the calendar year in which the amount was so deducted or withheld, pay to that person the amount or such part thereof as he was not liable to pay, unless he is otherwise liable or about to become liable to make a payment under this Act, in which case the Minister may apply the amount otherwise payable under this subsection to that payment and notify the person of that fact. Assessment in certain cases (4) Where, on application by or on behalf of a person pursuant to subsection (3) in respect of an amount that was deducted or withheld under this Part, the Minister is not satisfied (a) that the person was not liable to pay any tax under this Part, or (b) that the amount was in excess of the tax that the person was liable to pay, the Minister shall assess that person for any amount payable by him under this Part and send a notice of assessment to that person, whereupon subsections 13(3), (4) and (7) and sections 18 to 25 apply, with such modifications as the circumstances require, in respect of the assessment of that person. Liability (5) Any person who fails to deduct or withhold tax as required by this Part is liable to pay to Her Majesty the amount that should have been deducted or withheld together with interest thereon at the rate per annum prescribed for the purposes of subsection 227(8) of the Income Tax Act . Penalty (6) Every person who fails to remit as required by this Part the amount of tax deducted or withheld under this Part is liable to a penalty of ten per cent of that amount or ten dollars, whichever is the greater, in addition to the amount itself, together with interest on the amount at the rate per annum referred to in subsection (5). Assessment generally (7) The Minister may assess any person for any amount payable by that person under this Part and send a notice of assessment to that person, whereupon subsections 13(3), (4) and (7), 14(6), (7), (9) and (10) and sections 18 to 25 apply, with such modifications as the circumstances require, in respect of the assessment of that person. Certain agreements void (8) Where under this Part an amount is required to be deducted or withheld, an agreement by the person on whom the obligation is imposed not to deduct or withhold is void. Receipt of Minister sufficient (9) The receipt of the Minister for tax deducted or withheld by any person as required by this Part 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. 1980-81-82-83, c. 68, s. 101