Excise Tax Act (R.S.C., 1985, c. E-15)

Act current to 2014-11-11 and last amended on 2014-11-01. Previous Versions

Tax Imposed

Marginal note:Tax imposed
  •  (1) There shall be imposed, levied and collected an air transportation tax, determined under section 11, on each amount paid or payable in Canada for transportation of a person by air where that transportation begins at a point in the taxation area and ends at a point in the taxation area.

  • Marginal note:Idem

    (2) There shall be imposed, levied and collected an air transportation tax, determined under section 11, on each amount paid or payable outside Canada for the transportation of a person by air where that transportation

    • (a) begins at a point in the taxation area and ends at a point in the taxation area, and

    • (b) includes an emplanement by the person on an aircraft at an airport in Canada on a specific flight having as a destination an airport in the taxation area outside Canada and subsequent deplanement by the person from the flight at an airport outside Canada,

    payable by the person at the time when, in respect of the transportation, he emplanes at the airport in Canada described in paragraph (b) on the aircraft therein described, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person, in a manner and form and to a member of a class of persons prescribed by regulation of the Governor in Council.

  • Marginal note:Transportation by air

    (3) For the purposes of subsection (1), transportation by air begins at a point in the taxation area and ends at a point in the taxation area if the transportation does not include a departure, destination or intermediate stop, other than a transfer stop, outside the taxation area.

  • Marginal note:Idem

    (4) For the purposes of subsection (2), transportation by air begins at a point in the taxation area and ends at a point in the taxation area if the transportation

    • (a) does not include a departure, destination or intermediate stop, other than a transfer stop, outside the taxation area; and

    • (b) includes at least one departure from a point in Canada, other than a departure resulting from a transfer stop.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. E-15, s. 10;
  • R.S., 1985, c. 15 (1st Supp.), s. 3.
Marginal note:Amount of tax
  •  (1) Subject to subsections (2) and (2.1), the tax imposed under subsection 10(1) or (2) on each amount paid or payable for transportation of a person by air shall be an amount that is the lesser of

    • (a) the aggregate of

      • (i) the amount that is

        • (A) 4% of each amount paid or payable, if the amount is paid or payable in Canada after December 31, 1997 for transportation of a person by air that begins after February 28, 1998,

        • (B) 4% of each amount paid or payable, if the amount is paid or payable outside Canada after December 31, 1997 and the first emplanement by the person, as described in paragraph 10(2)(b), occurs after February 28, 1998, or

        • (C) 7% of each amount paid or payable, in any other case, and

      • (ii) $6 or such lesser amount as may, for the purposes of this subparagraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, and

    • (b) such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport.

  • Marginal note:Charter flights

    (2) Where the amount paid or payable in Canada for air transportation is for transportation by an aircraft that has been chartered for the purpose by one or more charterers, the tax imposed under subsection 10(1) on the amount paid or payable to a certified air carrier by each charterer shall be an amount that is the lesser of

    • (a) the aggregate of

      • (i) the amount that is

        • (A) 4% of each amount paid or payable, if the amount is paid or payable after December 31, 1997 to a certified air carrier by the charterer for transportation of a person by air that begins after February 28, 1998, or

        • (B) 7% of each amount paid or payable to a certified air carrier by the charterer, in any other case, and

      • (ii) the amount that is

        • (A) $1.50 in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person, if the amount is paid or payable to a certified air carrier by the charterer after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or

        • (B) $3 in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person, in any other case, and

    • (b) the aggregate of such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person.

  • Marginal note:Amount of tax imposed on amount paid outside Canada where tax payable in Canada

    (2.1) Where the tax imposed under subsection 10(2) on an amount paid or payable outside Canada for transportation of a person by air is payable by the person at the time he emplanes at an airport in Canada and evidence of the amount paid or payable for the transportation is not submitted, in the manner and form prescribed by regulation of the Governor in Council, by the person to the licensed air carrier required by this Part to collect the tax in Canada, and an amount is prescribed by order of the Governor in Council pursuant to paragraph (1)(b), the tax payable by the person shall be the amount so prescribed.

  • Marginal note:When tax not payable

    (3) The tax imposed by subsection 10(1), as determined under subsection (1), on each amount paid or payable for transportation of a person by air is not payable in the case of transportation purchased as part of a continuous journey where

    • (a) the journey includes a charter flight in respect of which tax is imposed under section 10 or 12; and

    • (b) evidence of the continuous journey is submitted by the person to the licensed air carrier or his agent from whom the transportation by air is purchased.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. E-15, s. 11;
  • R.S., 1985, c. 15 (1st Supp.), s. 4, c. 7 (2nd Supp.), s. 4, c. 42 (2nd Supp.), s. 1, c. 12 (4th Supp.), s. 2;
  • 1990, c. 45, s. 2;
  • 1994, c. 29, s. 2;
  • 1998, c. 21, s. 84.