Income Tax Act — I-3.3 164
f the individual were not liable to make a payment to Her Majesty in right of Canada. Application respecting refunds under section 122.72 (2.22) Where an amount deemed under section 122.72 to be paid by an individual during a month specified for a taxation year is applied under subsection (2) to a liability of the individual and the individual’s return of income for the year is filed on or before the individual’s balance-due day for the year, the amount is deemed to have been so applied on the day on which the amount would have been refunded if the individual were not liable to make a payment to His Majesty in right of Canada. Form deemed to be return of income (2.3) For the purpose of subsection (1), where a taxpayer files the form referred to in paragraph (b) of the definition return of income in section 122.6 for a taxation year, the form is deemed to be a return of the taxpayer’s income for that year and a notice of assessment in respect of that return is deemed to have been sent by the Minister. Interest on refunds and repayments (3) If, under this section, an amount in respect of a taxation year (other than an amount, or a portion of the amount, that can reasonably be considered to arise from the operation of paragraph 60(n.2) or section 122.5, 122.61, 122.72, 122.8, 125.7 or 127.421) is refunded or repaid to a taxpayer or applied to another liability of the taxpayer, the Minister shall pay or apply interest on it at the prescribed rate for the period that begins on the day that is the latest of the days referred to in the following paragraphs and that ends on the day on which the amount is refunded, repaid or applied: (a) if the taxpayer is an individual, the day that is 30 days after the individual’s balance-due day for the year; (b) if the taxpayer is a corporation, the day that is 120 days after the end of the year; (c) if the taxpayer is (i) a corporation, the day that is 30 days after the day on which its return of income for the year was filed under section 150, unless the return was filed on or before the corporation’s filing-due date for the year, and (ii) an individual, the day that is 30 days after the day on which the individual’s return of income for the year was filed under section 150; (d) in the case of a refund of an overpayment, the day on which the overpayment arose; and (e) in the case of a repayment of an amount in controversy, the day on which an overpayment equal to the amount of the repayment would have arisen if the total of all amounts payable on account of the taxpayer’s liability under this Part for the year were the amount by which (i) the lesser of the total of all amounts paid on account of the taxpayer’s liability under this Part for the year and the total of all amounts assessed by the Minister as payable under this Part by the taxpayer for the year exceeds (ii) the amount repaid. Idem (3.1) Where at a particular time interest has been paid to, or applied to a liability of, a taxpayer under subsection 164(3) or 164(3.2) in respect of an overpayment and it is determined at a subsequent time that the actual overpayment was less than the overpayment in respect of which interest was paid or applied, (a) the amount by which the interest that has been paid or applied exceeds the interest, if any, computed in respect of the amount that is determined at the subsequent time to be the actual overpayment shall be deemed to be an amount (in this subsection referred to as “the amount payable”) that became payable under this Part by the taxpayer at the particular time; (b) the taxpayer shall pay to the Receiver General interest at the prescribed rate on the amount payable computed from that particular time to the day of payment; and (c) the Minister may at any time assess the taxpayer in respect of the amount payable and, where the Minister makes such an assessment, the provisions of this Division are applicable, with such modifications as the circumstances require, in respect of the assessment as thou