Air Travellers Security Charge Act

An Act to implement an air travellers security charge

Canada (Federal)· A-10.5· 687 sections· current to 2026-03-26In force

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1Short title
This Act may be cited as the Air Travellers Security Charge Act.
2Definitions
The definitions in this section apply in this Act.
2[p2]
accredited representative means a person who is entitled under the Foreign Missions and International Organizations Act to the tax exemptions specified in Article 34 of the Convention set out in Schedule I to that Act or in Article 49 of the Convention set out in Schedule II to that Act. (représentant accrédité)
2[p3]
Agency means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act. (Agence)
2[p4]
air carrier means a person who carries on a business of transporting individuals by air. (transporteur aérien)
2[p5]
air transportation service means all of the transportation of an individual by air, by one or more air carriers, included in a continuous journey of the individual. (service de transport aérien)
2[p6]
assessment means an assessment under this Act and includes a reassessment. (cotisation)
2[p7]
bank means a bank as defined in section 2 of the Bank Act or an authorized foreign bank, as defined in that section, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act. (banque)
2[p8]
charge, except in the definition “security interest” and section 74, means a charge payable under section 11. (droit)
2[p9]
chargeable emplanement means an embarkation by an individual at a listed airport on an aircraft operated by a particular air carrier, except if
2[p9](a)
the embarkation
2[p9](a)(i)
is for the purpose of transferring from a particular flight to a connecting flight and
2[p9](a)(i)(A)
in the case of an air transportation service acquired in Canada, the particular flight included a chargeable emplanement by the individual,
2[p9](a)(i)(B)
the individual embarked on the particular flight outside Canada, or
2[p9](a)(i)(C)
the particular flight included an embarkation that, because of this subparagraph, is not a chargeable emplanement,
2[p9](a)(ii)
is a reboarding of the aircraft to resume a direct flight,
2[p9](a)(iii)
is a boarding of an aircraft that is being used to transport, on a direct flight, the individual to a destination in Canada that is not a listed airport, or
2[p9](a)(iv)
results from the provision of emergency or ground services to an aircraft or its occupants;
2[p9](b)
the individual is
2[p9](b)(i)
an accredited representative,
2[p9](b)(ii)
an infant (other than an infant who has been issued a ticket that entitles the infant to occupy a seat for a part of the service that includes a chargeable emplanement),
2[p9](b)(iii)
an employee or
2[p9](b)(iii)(A)
of the particular carrier, or of another air carrier that is a subsidiary wholly-owned corporation (in this subparagraph having the same meaning as in the Income Tax Act) of the particular carrier or of which the particular carrier is a subsidiary wholly-owned corporation, and
2[p9](b)(iii)(B)
whose embarkation is in the course of that employment,
2[p9](b)(iv)
a prescribed individual;
2[p9](c)
the embarkation is
2[p9](c)(i)
on an aircraft whose maximum certified take-off weight does not exceed 2 730 kg,
2[p9](c)(ii)
on an aircraft referred to in subsection 56(1) of the Canada Transportation Act,
2[p9](c)(iii)
in the course of a service listed in, or prescribed under, subsection 56(2) of the Canada Transportation Act, or
2[p9](c)(iv)
in the course of an air ambulance service; or
2[p9](d)
the embarkation is made in prescribed circumstances. (embarquement assujetti)
2[p31]
Commissioner means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act. (commissaire)
2[p32]
continental zone means
2[p32](a)
Canada;
2[p32](b)
the United States (except Hawaii); and
2[p32](c)
the Islands of St. Pierre and Miquelon. (zone continentale)
2[p36]
continuous journey means a journey of an individual
2[p36](a)
for which one ticket is issued; or
2[p36](b)
for which two or more tickets are issued if
2[p36](b)(i)
there is no stopover between any of the legs of the journey for which separate tickets are issued,
2[p36](b)(ii)
all the tickets are issued by the same issuer or by two or more issuers through one agent acting on behalf of all such issuers, and
2[p36](b)(iii)
evidence satisfactory to the Minister that there is no stopover between any of the legs of the journey for which separate tickets are issued is
2[p36](b)(iii)(A)
maintained by the issuer or agent if the tickets are issued at the same time, or
2[p36](b)(iii)(B)
submitted by the issuer or agent if the tickets are issued at different times. (voyage continu)
2[p44]
data means representations, in any form, of information or concepts. (données)
2[p45]
designated air carrier means an air carrier that is authorized by the Canadian Transportation Agency under Part II of the Canada Transportation Act to operate a domestic service or an international service, but does not include an air carrier that provides services that include only emplanements that are described in paragraph (c) or (d) of the definition chargeable emplanement. (transporteur aérien autorisé)
2[p46]
fiscal half-year means a fiscal half-year as determined under subsection 16(2). (semestre d’exercice)
2[p47]
fiscal month means a fiscal month as determined under subsection 16(1). (mois d’exercice)
2[p48]
fiscal year of a designated air carrier means the same period that is the carrier’s fiscal year under Part IX of the Excise Tax Act. (exercice)
2[p49]
Her Majesty means Her Majesty in right of Canada. (Sa Majesté)
2[p50]
judge, in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court. (juge)
2[p51]
listed airport means an airport listed in the schedule. (aéroport désigné)
2[p52]
Minister means the Minister of National Revenue. (ministre)
2[p53]
month means a period beginning on a particular day in a calendar month and ending on
2[p53](a)
the day immediately before the day in the next calendar month that has the same calendar number as the particular day; or
2[p53](b)
if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month. (mois)
2[p56]
person means an individual, partnership, corporation, trust or estate, or a body that is a society, union, club, association, commission or other organization of any kind whatever. (personne)
2[p57]
prescribed means
2[p57](a)
in the case of a form or the manner of filing a form, authorized by the Minister;
2[p57](b)
in the case of the information to be given on or with a form, specified by the Minister; and
2[p57](c)
in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation. (Version anglaise seulement)
2[p61]
record means any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device. (registre)
2[p62]
registered charity has the same meaning as in subsection 248(1) of the Income Tax Act. (organisme de bienfaisance enregistré)
2[p63]
reporting period means a reporting period as determined under section 16.1. (période de déclaration)
2[p64]
secured creditor means
2[p64](a)
a particular person who has a security interest in the property of another person; or
2[p64](b)
a person who acts for or on behalf of the particular person with respect to the security interest and includes
2[p64](b)(i)
a trustee appointed under a trust deed relating to a security interest,
2[p64](b)(ii)
a receiver or receiver-manager appointed by the particular person or appointed by a court on the application of the particular person,
2[p64](b)(iii)
a sequestrator, or
2[p64](b)(iv)
any other person performing a function similar to that of a person referred to in any of subparagraphs (i) to (iii). (créancier garanti)
2[p71]
security interest means, for the purposes of the definition “secured creditor”, section 15 and subsection 75(3), any interest in property that secures payment or performance of an obligation and includes an interest created by or arising out of a debenture, mortgage, hypothec, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatever, however or whenever arising, created, deemed to arise or otherwise provided for. (garantie)
2[p72]
stopover means the disembarkation of an individual from an aircraft other than a disembarkation
2[p72](a)
that is solely for the purpose of transferring to a connecting flight;
2[p72](b)
that is in the course of a direct flight if the individual reboards the aircraft to resume the flight; or
2[p72](c)
that results from the provision of emergency or ground services to an aircraft or its occupants. (escale)
2[p76]
Tax Court means the Tax Court of Canada. (Cour de l’impôt)
3Meaning of administration or enforcement of this Act
For greater certainty, a reference in this Act to administration or enforcement of this Act includes the collection of any amount payable under this Act.
4Deemed issuance of ticket
If no ticket is issued for all or part of a journey, and it is reasonable to consider that a ticket would ordinarily be issued by a person for the journey or for that part, as the case may be, such a ticket is, except for the purposes of paragraph 11(2)(c), deemed to have been issued by the person.
5Separate journeys deemed
A journey that would, if this Act were read without reference to this section, be a continuous journey of an individual that includes more than one chargeable emplanement by the individual at a particular listed airport is, despite any other provision of this Act, deemed
5(a)
not to be a continuous journey; and
5(b)
to be a series of separate continuous journeys each of which commences with the second and any subsequent chargeable emplanement from the particular listed airport.
5.1Associated persons
5.1(1)
For the purposes of this Act, a particular corporation is associated with another corporation if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.
5.1(2)Corporations controlled by same person or group
For the purposes of this Act, a person other than a corporation is associated with a particular corporation if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others.
5.1(3)Partnership or trust
For the purposes of this Act, a person is associated with
5.1(3)(a)
a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and
5.1(3)(b)
a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.
5.1(4)Association with third person
For the purposes of this Act, a person is associated with another person if each of them is associated with the same third person.
6Binding on Her Majesty
This Act is binding on Her Majesty in right of Canada or a province.
7Application to air transportation services
This Act applies in respect of
7(a)
the acquisition, on or before March 31, 2002, of an air transportation service for which any consideration is paid or becomes payable after March 31, 2002 and that includes a chargeable emplanement
7(a)(i)
made after March 31, 2002, if the service is acquired in Canada, or
7(a)(ii)
made after May 31, 2002, if the service is acquired outside Canada; and
7(b)
the acquisition after March 31, 2002 of an air transportation service that includes a chargeable emplanement
7(b)(i)
made after March 31, 2002, if the service is acquired in Canada, or
7(b)(ii)
made after May 31, 2002, if the service is acquired outside Canada.
8Minister’s duty
The Minister shall administer and enforce this Act and the Commissioner may exercise the powers and perform the duties of the Minister under this Act.
9Officers and employees
9(1)
The officers, employees and agents that are necessary to administer and enforce this Act shall be appointed, employed or engaged in the manner authorized by law.
9(2)Delegation of powers
The Minister may authorize an officer or agent or a class of officers or agents to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial power or duty of the Minister, under this Act.
10Administration of oaths
Any officer, if designated by the Minister for the purpose, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act, and every officer so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.
11Charge payable
11(1)
Every person who acquires from a designated air carrier all or part of an air transportation service that includes a chargeable emplanement shall pay to Her Majesty a charge as determined under this Act in respect of the service.
11(1.1)Exceptions
No charge is payable in respect of an air transportation service that is acquired
11(1.1)(a)
by a person for the purpose of re-selling the service, if the person sells the service to another person before April 1, 2002 and makes full and final payment to the air carrier in respect of the service before May 1, 2002; or
11(1.1)(b)
by a registered charity from an air carrier for no consideration, if the service is donated by the charity to an individual for no consideration and in pursuit of its charitable purposes.
11(2)When charge payable
The charge in respect of the air transportation service is payable
11(2)(a)
if any consideration is paid or payable for the service, at the time any consideration for the service is first paid or becomes payable;
11(2)(b)
if no consideration is paid or payable for the service, at the time a ticket is issued for the service; or
11(2)(c)
if no consideration is paid or payable for the service and no ticket is issued for the service, at the time of emplanement.
12Amount of charge if service acquired in Canada
12(1)
Subject to subsection (3), if an air transportation service is acquired in Canada, the amount of the charge in respect of the service is
12(1)(a)
$9.46 for each chargeable emplanement included in the service, to a maximum of $18.92, if
12(1)(a)(i)
the service does not include transportation to a destination outside Canada, and
12(1)(a)(ii)
tax under subsection 165(1) of the Excise Tax Act is required to be paid in respect of the service;
12(1)(b)
$9.94 for each chargeable emplanement included in the service, to a maximum of $19.87, if
12(1)(b)(i)
the service does not include transportation to a destination outside Canada, and
12(1)(b)(ii)
tax under subsection 165(1) of the Excise Tax Act is not required to be paid in respect of the service;
12(1)(c)
$16.08 for each chargeable emplanement included in the service, to a maximum of $32.16, if
12(1)(c)(i)
the service includes transportation to a destination outside Canada and does not include transportation to a destination outside the continental zone, and
12(1)(c)(ii)
tax under subsection 165(1) of the Excise Tax Act is required to be paid in respect of the service;
12(1)(d)
$16.89 for each chargeable emplanement included in the service, to a maximum of $33.77, if
12(1)(d)(i)
the service includes transportation to a destination outside Canada and does not include transportation to a destination outside the continental zone, and
12(1)(d)(ii)
tax under subsection 165(1) of the Excise Tax Act is not required to be paid in respect of the service; or
12(1)(e)
$34.42, if the service includes transportation to a destination outside the continental zone.
12(2)Amount of charge if service acquired outside Canada
Subject to subsection (3), if an air transportation service is acquired outside Canada, the amount of the charge in respect of the service is
12(2)(a)
$16.08 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $32.16, if
12(2)(a)(i)
the service does not include transportation to a destination outside the continental zone, and
12(2)(a)(ii)
tax under subsection 165(1) of the Excise Tax Act is required to be paid in respect of the service;
12(2)(b)
$16.89 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $33.77, if
12(2)(b)(i)
the service does not include transportation to a destination outside the continental zone, and
12(2)(b)(ii)
tax under subsection 165(1) of the Excise Tax Act is not required to be paid in respect of the service; or
12(2)(c)
$34.42, if the service includes transportation to a destination outside the continental zone.
12(3)Prescribed amount of charge
The amount of the charge in respect of a prescribed air transportation service is the lesser of
12(3)(a)
the amount that is determined in respect of the service under subsection (1) or (2), as the case may be, and
12(3)(b)
the amount that is prescribed, or determined in accordance with prescribed rules, in respect of the service.
13Air transportation service deemed to be acquired in Canada
13(1)
An air transportation service that is acquired outside Canada is deemed to have been acquired in Canada and not outside Canada if any consideration for the service is paid
13(1)(a)
by transmission from within Canada to a place outside Canada, by mail or electronic means, of cash, a cheque, a money order, a credit or debit card payment or any similar means of payment, to a ticket office, travel agency or air carrier or any representative of any of them;
13(1)(b)
by delivery of an amount to an agency located within Canada for transmission to a ticket office, travel agency, air carrier or any representative of any of them located outside Canada; or
13(1)(c)
by any other arrangement with a person outside Canada for the benefit or convenience of a person who is resident in Canada.
13(2)Charter flights
If an air transportation service that begins in Canada is acquired outside Canada by a person in the course of a charter operation, the service is deemed to have been acquired in Canada and not outside Canada.
14Duty of designated air carrier to collect charge
14(1)
Subject to subsections (2) and (3), every designated air carrier from whom all or part of an air transportation service is acquired by a person who is required by this Act to pay a charge in respect of that service shall, as an agent of Her Majesty, collect the charge not later than the time the charge becomes payable by the person.
14(2)Multiple carriers — service acquired in Canada
If an air transportation service acquired in Canada is comprised of transportation of an individual by air by two or more designated air carriers, any charge that is payable in respect of the service shall be collected
14(2)(a)
if all of the tickets for the service are issued by a designated air carrier, by that carrier; or
14(2)(b)
in any other case, by the designated air carrier operating the aircraft on which the individual first makes a chargeable emplanement.
14(3)Issuing carrier deemed to be supplier of service
If a ticket for an air transportation service acquired in Canada is issued to a person by a designated air carrier that does not provide any part of the air transportation service, the air transportation service is deemed to have been acquired by the person from that designated air carrier.
14(4)Multiple carriers — service acquired outside Canada
If an air transportation service acquired outside Canada is comprised of transportation of an individual by air by two or more designated air carriers, any charge that is payable in respect of the service shall be collected by the designated air carrier operating the first aircraft that transports the individual to a destination outside Canada and on which the individual makes a chargeable emplanement included in the service.
14(5)Joint and several or solidary liability
If a designated air carrier issues a ticket and accepts consideration on behalf of another designated air carrier for an air transportation service acquired outside Canada in respect of which the other carrier is required to collect a charge, those carriers are jointly and severally or solidarily liable for all obligations under this Act arising from, or as a consequence of, the acquisition of the service or any failure to collect or pay the charge.
15Trust for amounts collected
15(1)
Every person who collects an amount as or on account of a charge is deemed, for all purposes and despite any security interest (other than a prescribed security interest) in the amount, to hold the amount in trust for Her Majesty, separate and apart from the property of the person and from property held by any secured creditor of the person that, but for a security interest, would be property of the person, until the amount is paid to the Receiver General or withdrawn under subsection (3).
15(2)Amounts collected before bankruptcy
Subsection (1) does not apply, at or after the time a person becomes a bankrupt (within the meaning of the Bankruptcy and Insolvency Act), to any amounts that, before that time, were collected or became collectible by the person as or on account of a charge.
15(3)Withdrawal from trust
A person who holds amounts in trust by reason of subsection (1) may withdraw from the amounts any amount refunded by the person under section 32.
15(4)Extension of trust
Despite any other provision of this Act, any other enactment of Canada (except the Bankruptcy and Insolvency Act), any enactment of a province or any other law, if at any time an amount deemed by subsection (1) to be held by a person in trust for Her Majesty is not remitted to the Receiver General or withdrawn in the manner and at the time provided under this Part, property of the person and property held by any secured creditor of the person that, but for a security interest, would be property of the person, equal in value to the amount so deemed to be held in trust, is deemed and is property beneficially owned by Her Majesty despite any security interest in the property or in the proceeds thereof, and the proceeds of the property shall be paid to the Receiver General in priority to all security interests.
15(4)(a)
to be held, from the time the amount was collected by the person, in trust for Her Majesty, separate and apart from the property of the person, whether or not the property is subject to a security interest, and
15(4)(b)
to form no part of the estate or property of the person from the time the amount was collected, whether or not the property has in fact been kept separate and apart from the estate or property of the person and whether or not the property is subject to a security interest
15.1No action for collection of charge
No person, other than Her Majesty, may bring an action or proceeding against any person for acting in compliance or intended compliance with this Act by collecting an amount as or on account of the charge.
16Determination of fiscal months
16(1)
The fiscal months of a designated air carrier shall be determined in accordance with the following rules:
16(1)(a)
if fiscal months of the carrier have been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, each of those fiscal months is a fiscal month of the carrier for the purposes of this Act;
16(1)(b)
if fiscal months of the carrier have not been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, the carrier may choose, at the time of registration under section 17, as their fiscal months for the purposes of this Act, fiscal months that meet the requirements set out in subsection 243(2) of the Excise Tax Act; and
16(1)(c)
if paragraph (a) does not apply and the carrier has not chosen their fiscal months under paragraph (b), each calendar month is a fiscal month of the carrier for the purposes of this Act.
16(2)Determination of fiscal half-years
The fiscal half-years of a designated air carrier shall be determined in accordance with the following rules:
16(2)(a)
the period beginning on the first day of the first fiscal month in a fiscal year of the carrier and ending on the earlier of the last day of the sixth fiscal month and the last day in the fiscal year is a fiscal half-year of the carrier; and
16(2)(b)
the period, if any, beginning on the first day of the seventh fiscal month and ending on the last day in the fiscal year of the carrier is a fiscal half-year of the carrier.
16.1Reporting period — general
16.1(1)
Subject to this section, the reporting period of a designated air carrier is a fiscal month.
16.1(2)Reporting period — semi-annual
On application in the prescribed form and manner by a designated air carrier, the Minister may, in writing, authorize the reporting period of that carrier to be a fiscal half-year in a particular fiscal year if
16.1(2)(a)
the carrier has been registered for a period exceeding twelve consecutive fiscal months;
16.1(2)(b)
the total of all charges and amounts collected or required to be collected under this Act by the carrier and any person associated with the carrier in the fiscal year ending immediately before the particular fiscal year did not exceed $120,000;
16.1(2)(c)
the total of all charges and amounts collected or required to be collected under this Act by the carrier and any person associated with the carrier in the particular fiscal year does not exceed $120,000; and
16.1(2)(d)
the carrier is in compliance with the Act.
16.1(3)Deemed revocation
An authorization under subsection (2) is deemed to be revoked if the total of all charges and amounts collected or required to be collected under this Act by the carrier and any person associated with the carrier exceeds $120,000 in a fiscal year, which revocation is effective as of the first day after the end of the fiscal half-year in which the excess occurs.
16.1(4)Revocation — other
The Minister may revoke an authorization if
16.1(4)(a)
the carrier requests in writing the Minister to do so;
16.1(4)(b)
the carrier fails to comply with the Act; or
16.1(4)(c)
the Minister considers that the authorization is no longer required.
16.1(5)Notice of revocation
If the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the carrier and shall specify in the notice the fiscal month for which the revocation becomes effective.
16.1(6)Deemed reporting period on revocation
If a revocation under subsection (4) becomes effective before the last day of a fiscal half-year of a carrier that is authorized under subsection (2), the period beginning on the first day of the fiscal half-year and ending immediately before the first day of the fiscal month for which the revocation becomes effective is deemed to be a reporting period of the carrier.
17Registration
17(1)
Every designated air carrier that is required to collect a charge shall register with the Minister in the prescribed form and manner before the end of the first fiscal month in which the carrier collects or is required to collect charges.
17(2)Returns and payments
Every designated air carrier that is registered or is required to register shall, not later than the last day of the first month after each reporting period of the carrier,
17(2)(a)
file a return with the Minister, in the prescribed form and manner containing all prescribed information, for that reporting period;
17(2)(b)
calculate, in the return, the total of
17(2)(b)(i)
all charges required to be collected by the carrier during that reporting period other than such a charge that was collected by the carrier before that reporting period,
17(2)(b)(ii)
all amounts each of which is a charge collected by the carrier during that reporting period at a time before the charge became payable under subsection 11(2) if the time at which the charge becomes so payable is after the end of that reporting period, and
17(2)(b)(iii)
all other amounts collected as or on account of charges by the carrier during that reporting period that were not included in a calculation under subparagraph (i) or (ii) for a previous reporting period; and
17(2)(c)
pay an amount equal to that total to the Receiver General.
18Amount collected as charge by person not required to collect
Every person who collects an amount as or on account of a charge and who is not required to pay it to the Receiver General under subsection 17(2) shall, without delay, pay that amount to the Receiver General and report the matter to the Minister in the prescribed form and manner.
19Set-off of refunds
If, at any time, a designated air carrier files a return under section 17 in which the carrier reports an amount that is required to be paid under this Act by it and the carrier claims a refund payable to it under this Act at that time, in the return or in another return, or in a separate application filed under this Act with the return, the carrier is deemed to have paid at that time, and the Minister is deemed to have refunded at that time, an amount equal to the lesser of the amount required to be paid and the amount of the refund.
20Definition of electronic payment
20(1)
In this section, electronic payment means any payment to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (2)(a) to (d) or by any electronic means specified by the Minister.
20(a)
20(2)Electronic payment
Every person that is required under this Act to pay an amount to the Receiver General shall, if the amount is $10,000 or more, make the payment by way of electronic payment, unless the person cannot reasonably pay the amount in that manner, to the account of the Receiver General at or through
20(b)
20(2)(a)
a bank;
20(c)
20(2)(b)
a credit union;