20 (1) The Minister may assess under this section any person who has received a refund or rebate under this Act or the regulations and who is not entitled to such refund or rebate, and such assessment shall be for the amount of the refund or rebate to which the person is not entitled and shall be accompanied by a brief statement in writing of the grounds upon which the person assessed is claimed not to be entitled to the amount claimed in the assessment.  R.S.O. 1990, c. R.31, s. 20 (1); 2010, c. 26, Sched. 17, s. 10 (1). Disallowance of rebate or refund (2) Where a person has, in accordance with this Act and the regulations, applied for a refund or rebate under this Act or the regulations, and the person’s claim is in whole or in part refused, the Minister shall cause to be served on such person a statement of disallowance and the statement shall specify the amount of the disallowance and the reasons therefor.  R.S.O. 1990, c. R.31, s. 20 (2); 2010, c. 26, Sched. 17, s. 10 (2). Interpretation, certain rebates, etc. (2.1) Subsections (1) and (2) apply with respect to a credit or payment under a regulation made under subsection 51.1 (1) (Rebates for First Nations) as if the credit or payment were a refund of tax to the person under this Act.  2010, c. 26, Sched. 17, s. 10 (3). Penalty for non-collection of tax (3) The Minister may assess against every vendor who has failed to collect tax that the vendor is responsible to collect under this Act a penalty equal to the amount of tax that the vendor failed to collect, but, where the Minister has assessed such tax against the purchaser from whom it should have been collected, the Minister shall not assess the vendor.  1994, c. 13, s. 15 (1). Penalty for wilful non-collection of tax (4) Where the Minister is satisfied that a vendor’s failure to collect tax that the vendor is responsible to collect under this Act or the regulations is attributable to neglect, carelessness, wilful default or fraud, the Minister may assess a penalty against such vendor, (a)  in an amount equal to the greater of $25 or 25 per cent of the tax that the vendor failed to collect, where a penalty has been assessed against the vendor under subsection (3) in respect of the failure to collect; and (b)  in an amount equal to the greater of $25 or one and one-quarter times the amount of tax that the vendor failed to collect where no penalty has been assessed against the vendor under subsection (3).  R.S.O. 1990, c. R.31, s. 20 (4). Interpretation, certain rebates, etc. (4.1) If a supplier credits or pays an amount under a regulation made under subsection 51.1 (1) (Rebates for First Nations) to a person who is not entitled to the credit or payment, subsections (3), (4) and (5) to (5.4) apply with respect to the supplier as if the supplier were a vendor who fails to collect tax that the vendor is responsible to collect under this Act and as if the amount to which the person was not entitled were uncollected taxes.  2010, c. 26, Sched. 17, s. 10 (3). Assessment, certain rebates (4.2) If a supplier files an incorrect return or other information with the Canada Revenue Agency, the Minister of Revenue or any other tax authority indicating that the supplier has credited an amount to a person under a regulation made under subsection 51.1 (1) (Rebates for First Nations) when the supplier has not in fact credited that amount, the Minister may assess the supplier under this section, and the assessment shall be for the amount incorrectly reported as having been credited and shall be accompanied by a brief statement in writing of the grounds upon which the person is assessed.  2010, c. 26, Sched. 17, s. 10 (3). Penalty for false return, certain rebates (4.3) If the Minister is satisfied that a supplier, by neglect, carelessness, wilful default or fraud, filed a false return or other information with the Canada Revenue Agency, the Minister of Revenue or any other tax authority indicating that the supplier has credited an amount to a person under a regulation made under subsection 51.1 (1) (Rebates for First Nations) when the supplier has not in fact credited that amount, the Minister may assess a penalty against the supplier in an amount equal to the greater of $25 or 25 per cent of the amount that was not in fact credited.  2010, c. 26, Sched. 17, s. 10 (3). Same (4.4) If the Minister assesses a penalty against a supplier under subsection (4.2), subsections (5) to (5.4) apply with respect to the supplier as if the supplier were a vendor and as if the penalty was imposed under subsection (3).  2010, c. 26, Sched. 17, s. 10 (3). Same (4.5) Expressions used in subsections (4.1) to (4.4) have the same meaning as in section 51.1 unless the context requires otherwise.  2010, c. 26, Sched. 17, s. 10 (3). Restriction, four-year limitation (5) No penalty imposed under subsection (3) shall be imposed with respect to tax that should have been collected more than four years immediately preceding the day of the assessment under subsection (3).  2004, c. 31, Sched. 33, s. 4. Exception, waiver of limitation (5.1) The restriction in subsection (5) does not apply if the vendor has filed with the Minister a waiver in a form approved by the Minister within four years from the date on which the tax should have been collected.  2004, c. 31, Sched. 33, s. 4. Revocation of waiver (5.2) If a vendor files a waiver under subsection (5.1), the vendor may file a notice of revocation of the waiver in a form approved by the Minister.  2004, c. 31, Sched. 33, s. 4. Effect of revocation (5.3) If a vendor files a notice of revocation of waiver under subsection (5.2), the Minister shall not assess a penalty under subsection (3) in reliance on the waiver more than one year after the date on which the notice of revocation is filed.  2004, c. 31, Sched. 33, s. 4. Waiver, transitional (5.3.1) If, before December 16, 2004, the vendor provided the Minister with a written waiver of the time limit, the restriction in subsection (5) does not apply and subsections (5.2) and (5.3) apply with necessary modifications in respect of the waiver.  2005, c. 31, Sched. 19, s. 7. Exception, misrepresentation or fraud (5.4) The restriction in subsection (5) does not apply if the Minister establishes that the vendor has made any misrepresentation that is attributable to neglect, carelessness or wilful default, or has committed any fraud in making a return or in supplying any information under this Act or in omitting to disclose any information.  2004, c. 31, Sched. 33, s. 4. Penalty for understating fair value (6) Every purchaser who acquires or purchases from a person who is not a vendor within the meaning of this Act tangible personal property for the consumption of which the purchaser is liable to pay tax under this Act and who understates the fair value of such tangible personal property in any written statement or document shall pay a penalty assessed by the Minister of, (a)  not less than an amount equal to the greater of, (i)  $50, or (ii)  the tax applicable to the amount by which the purchaser understated the fair value of such tangible personal property; and (b)  not more than $2,500, and such penalty shall be in addition to the tax properly payable by the purchaser on the consumption of such tangible personal property.  R.S.O. 1990, c. R.31, s. 20 (6); 1994, c. 13, s. 15 (2); 1997, c. 10, s. 33. Penalty, s. 18 assessment (7) Where, under section 18, the Minister has assessed a vendor for tax collected or a purchaser or registrant for tax payable, the Minister may further assess the vendor, purchaser or registrant a penalty equal to the greater of $100 or 25 per cent of the tax so assessed under section 18, but no penalty shall be assessed under this subsection unless the Minister is satisfied that the non-compliance with the Act or regulations by the vendor, purchaser or registrant that gave rise to the assessment made under section 18 was attributable to neglect, carelessness, wilful default or fraud.  R.S.O. 1990, c. R.31, s. 20 (7); 2001, c. 23, s. 196. Notice of assessment (8) A statement under subsection (2) or a notice of an assessment made under this section may be served by sending such statement or notice by prepaid mail to the person whose claim is refused or against whom an assessment is made under this section, as the case may be, at the person’s last known address in Ontario, or by serving such notice on the person personally.  R.S.O. 1990, c. R.31, s. 20 (8). Assessment conclusive (9) Subject to being vacated on an objection or appeal and subject to a reassessment, a statement or assessment under this section shall be deemed to be valid and binding, and the amount assessed in any such assessment shall, for the purposes of the collection or recovery thereof, be deemed to be tax owing under this Act and to be conclusively established as a debt owing to Her Majesty in right of Ontario.  R.S.O. 1990, c. R.31, s. 20 (9). Payment of assessment (10) Every person who is assessed under this section shall pay the amount assessed whether or not an objection to or appeal from the assessment is outstanding.  R.S.O. 1990, c. R.31, s. 20 (10); 1994, c. 13, s. 15 (3). Section Amendments with date in force (d/m/y) 1994, c. 13, s. 15 (1-3) - 23/06/1994; 1997, c. 10, s. 33 - 26/06/1997 2001, c. 23, s. 196
- 01/10/2001 2004, c. 31, Sched. 33, s. 4 - 16/12/2004 2005, c. 31, Sched. 19, s. 7 - 16/12/2004 2010, c. 26, Sched. 17, s. 10 (1-3) - 08/12/2010 Tax assessment, miscellaneous