Excise Tax Act — E-15 285.01
Definitions 285.01 (1) The following definitions apply in this section. electronic cash register means a device that keeps a register or supporting documents through the means of an electronic device or computer system designed to record transaction data or any other electronic point-of-sale system. ( caisse enregistreuse électronique ) electronic suppression of sales device means (a) a software program that falsifies the records of electronic cash registers, including transaction data and transaction reports; or (b) a hidden programming option, whether preinstalled or installed at a later time, embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that (i) may be used to create a virtual second till, or (ii) may eliminate or manipulate transaction records, which may or may not be preserved in digital formats, in order to represent the actual or manipulated record of transactions in the electronic cash register. ( appareil de suppression électronique des ventes ) Penalty  —  use (2) Every person that uses, or that knowingly, or under circumstances attributable to neglect, carelessness or wilful default, participates in, assents to or acquiesces in the use of, an electronic suppression of sales device or a similar device or software in relation to records that are required to be kept by any person under section 286 is liable to a penalty of (a) unless paragraph (b) applies, $5,000; or (b) $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 163.3 of the Income Tax Act . Penalty  — possession (3) Every person that acquires or possesses an electronic suppression of sales device or a right in respect of an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286 is liable to a penalty of (a) unless paragraph (b) applies, $5,000; or (b) $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 163.3 of the Income Tax Act . Penalty  — manufacturing or making available (4) Every person that designs, develops, manufactures, possesses for sale, offers for sale, sells, transfers or otherwise makes available to another person, or that supplies installation, upgrade or maintenance services for, an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286 is liable to a penalty of (a) unless paragraph (b) or (c) applies, $10,000; (b) unless paragraph (c) applies, $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under subsection (2) or (3) or subsection 163.3(2) or (3) of the Income Tax Act ; or (c) $100,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this subsection or subsection 163.3(4) of the Income Tax Act . Limitation (5) Despite section 296, if at any time the Minister assesses a penalty payable by a person under this section, the Minister is not to assess, at or after that time, another penalty payable by the person under this section that is in respect of an action of the person that occurred before that time. Certain defences not available (6) Except as otherwise provided in subsection (7), a person does not have a defence in relation to a penalty assessed under this section by reason that the person exercised due diligence to prevent the action from occurring. Diligence (7) A person is not liable for a penalty under subsection (3) or (4) in respect of an action of the person if the person exercised the degree of care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances to prevent the action from occurring. Assessmen