Excise Act, 2001 (S.C. 2002, c. 22)

Assented to 2002-06-13

R.S., c. E-15Excise Tax Act

Marginal note:R.S., c. 7 (2nd Supp.), s. 21(3); 1993, c. 25, s. 58
  •  (1) Subsection 59(3.2) of the Excise Tax Act is replaced by the following:

    • Marginal note:Regulations

      (3.2) The Governor in Council may make regulations

      • (a) designating certain classes of goods as ships’ stores for use on board a conveyance of a prescribed class, including a class based on

        • (i) the physical attributes, functions or legal descriptions of conveyances,

        • (ii) areas within which conveyances voyage,

        • (iii) requirements, or limitations, related to voyages of conveyances, or

        • (iv) any combination of the bases mentioned in subparagraphs (i) to (iii); and

      • (b) limiting the quantity of goods referred to in paragraph (a) that may be used as described in that paragraph during any prescribed period or periods.

  • (2) A regulation, or any provision of a regulation, made before January 1, 2004 under paragraph 59(3.2)(a) or (b) of the Excise Tax Act, as enacted by subsection (1), may, if it so provides, be retroactive and have effect for any period before it is made that begins on or after June 1, 2002.

  • (3) Subsection (1) is deemed to have come into force on December 12, 1988.

 The Act is amended by adding the following after section 68.4:

Marginal note:Definitions
  • 68.5 (1) The definitions in this subsection apply in this section.

    “eligible ship”

    « navire admissible »

    “eligible ship” means a ship that is a tug, ferry or passenger ship engaged in trade on an inland voyage and that

    • (a) is not proceeding outside Canada other than to

      • (i) a part that lies within the United States of any lake or river a part of which is included in the inland waters of Canada, or

      • (ii) Lake Michigan; and

    • (b) is not engaged in international trade.

    “inland voyage”

    « voyage en eaux internes »

    “inland voyage” means a voyage (other than a minor waters voyage)

    • (a) on the inland waters of Canada, together with those parts that lie within the United States of any lake or river included in the inland waters of Canada; or

    • (b) on Lake Michigan.

    “inland waters of Canada”

    « eaux internes du Canada »

    “inland waters of Canada” means all the rivers, lakes and other navigable fresh waters within Canada, and includes the St. Lawrence River as far seaward as a straight line drawn

    • (a) from Cap des Rosiers to West Point Anticosti Island; and

    • (b) from Anticosti Island to the north shore of the St. Lawrence River along the meridian of longitude sixty-three degrees west.

    “minor waters of Canada”

    « eaux secondaires du Canada »

    “minor waters of Canada” means all inland waters of Canada (other than Lake Ontario, Lake Erie, Lake Huron including Georgian Bay, Lake Superior and the St. Lawrence River east of a line drawn from Father Point to Point Orient) and includes all bays, inlets and harbours of or on those lakes or Georgian Bay.

    “minor waters voyage”

    « voyage en eaux secondaires »

    “minor waters voyage” means a voyage within the minor waters of Canada together with those parts that lie within the United States of any lake or river included in the minor waters of Canada.

    “rebate period”

    « période de remise »

    “rebate period” means the period

    • (a) that begins on June 1, 2002 and that ends on December 31, 2002;

    • (b) that begins on January 1, 2003 and that ends on December 31, 2003; or

    • (c) that begins on January 1, 2004 and that ends on December 31, 2004.

  • Marginal note:Rebate in respect of fuel for eligible ship

    (2) If a person purchases or intends to purchase fuel that is, or is to be, used by the person to operate or maintain an eligible ship during a rebate period, subject to this Part, the Minister shall, on application by the person, pay to the person a rebate for the period determined in accordance with subsection (3).

  • Marginal note:Determination of rebate

    (3) The amount of the rebate payable to a person under subsection (2) for a rebate period is equal to

    • (a) if the amount applied for is based on an estimate, acceptable to the Minister and made within any period specified by the Minister, of the quantity of fuel that is, or is to be, purchased after May 2002 by the person and is, or is to be, used by the person to operate or maintain an eligible ship during the rebate period, the total amount of tax under Part III that would be imposed on that fuel; or

    • (b) in any other case, the total amount of tax under Part III imposed on fuel that is purchased by the person after May 2002 and is used by the person to operate or maintain an eligible ship during the rebate period.

  • Marginal note:One application per period

    (4) A person shall not file more than one application (other than an application referred to in paragraph (8)(b)) under this section for any rebate period.

  • Marginal note:Reconciliation report

    (5) If a person is paid a rebate for a rebate period based on an estimate referred to in paragraph (3)(a), the person shall, not later than 60 days after the end of the period, file with the Minister in prescribed manner a reconciliation report in prescribed form that indicates

    • (a) the amount of the rebate paid to the person; and

    • (b) the amount of tax under Part III imposed on the fuel purchased by the person after May 2002 and used by the person to operate or maintain an eligible ship during the rebate period.

  • Marginal note:Extension for filing

    (6) The Minister may at any time, in writing, extend the time required by subsection (5) for filing a reconciliation report.

  • Marginal note:Effect of extension for filing

    (7) If the Minister has, under subsection (6), extended the time required by subsection (5) for filing a reconciliation report

    • (a) the report shall be filed within the time so extended;

    • (b) any amount of excess rebate that is required to be paid within the time otherwise required by subsection (9) shall be paid within the time so extended; and

    • (c) any interest or penalty payable under this section shall be calculated on the basis that the person has until the expiry of the period so extended to file the reconciliation report.

  • Marginal note:Additional amount payable to rebate recipient

    (8) If a person files a reconciliation report for a rebate period and the amount referred to in paragraph (5)(b) exceeds the amount referred to in paragraph (5)(a) in respect of the period,

    • (a) the Minister shall pay to the person an amount equal to that excess amount; and

    • (b) the filing of the reconciliation report is deemed to be an application to the Minister for payment of that excess amount.

  • Marginal note:Liability for excess rebate and interest up to due date of reconciliation

    (9) If the rebate paid to a person for a rebate period is determined on the basis of an estimate referred to in paragraph (3)(a) and the amount paid exceeds the amount referred to in paragraph (5)(b) in respect of the period, the person shall pay to the Receiver General

    • (a) on or before the day on or before which the reconciliation report for the rebate period is required to be filed, an amount (in this section referred to as the “excess rebate”) equal to that excess amount; and

    • (b) interest at the prescribed rate, in respect of each month or fraction of a month in the period that begins on the first day following the day on which the rebate is paid to the person and that ends on the earlier of the day the total of the excess rebate and all interest under this paragraph is paid and the day on or before which the reconciliation report is required to be filed, calculated on the total of the amount of the excess rebate that has not been paid to the Receiver General, and of the amount of interest that is outstanding, in the month or fraction of a month.

  • Marginal note:Deemed tax liability

    (10) The portion of the total of the excess rebate payable by a person in respect of a rebate period, and of the interest payable by the person under paragraph (9)(b), that is outstanding at the end of the day on or before which the reconciliation report for the period is required to be filed is deemed to be an amount of tax payable under this Act that is required to be, and that has not been, paid by the person on or before that day.

  • Marginal note:Interest and penalty on deemed tax

    (11) A person who is in default in paying an amount of tax referred to in subsection (10) shall pay to the Receiver General interest at the prescribed rate, and penalty of one-half of one percent, in respect of each month or fraction of a month in the period that begins on the first day following the day on or before which the reconciliation report is required to be filed and that ends on the day the total of that tax is paid, calculated on the total of the tax, penalty and interest outstanding in that month or fraction of a month.

  • Marginal note:Time for paying interest and penalty

    (12) Any interest under paragraph (9)(b) or subsection (11) and any penalty under that subsection shall be paid not later than the last day of the month in respect of which the interest or penalty was calculated.

  • Marginal note:Interest and penalty under ten dollars

    (13) No interest under paragraph (9)(b) or subsection (11) and no penalty under that subsection is required to be paid if the person who would otherwise be liable to pay the interest or the penalty pays all taxes under this section payable by the person and, on the payment, the total interest and penalty otherwise payable by the person under those provisions is less than ten dollars.

  • Marginal note:Restriction

    (14) The Minister shall not, at a particular time, pay an amount to a person under this section unless the person has

    • (a) filed with the Minister all reconciliation reports for rebate periods ending before that time for which a rebate was paid to the person that was based on an estimate referred to in paragraph (3)(a); and

    • (b) paid all excess rebates in respect of rebate periods ending before that time and all interest and penalty under this section that have accrued to that time.

  • Marginal note:Limitation period

    (15) An application may not be made under subsection (2) after December 31, 2006.