Excise Act, 2001 (S.C. 2002, c. 22)

Marginal note:Refund of duty — destroyed imported tobacco

• 181.1 (1) The Minister may refund to a duty free shop licensee the duty under section 53 that was paid on imported manufactured tobacco that is destroyed by the licensee in accordance with the Customs Act if the licensee applies for the refund within two years after the tobacco is destroyed.

• Marginal note:Refund of inventory tax — destroyed imported cigarettes

  (2) The Minister may refund to a duty free shop licensee the tax imposed and payable under Part 3.1 on taxed cigarettes, as defined in section 58.1, of the licensee in respect of which duty has been imposed under section 53, if

  • (a) the licensee provides evidence satisfactory to the Minister that

    • (i) the cigarettes were taxed cigarettes of the licensee and the tax was paid by the licensee, and

    • (ii) the cigarettes were destroyed by the licensee in accordance with the Customs Act; and

  • (b) the licensee applies for the refund within two years after the cigarettes are destroyed.

Marginal note:Refund of tax to importer if foreign taxes paid

• 182 (1) The Minister may refund, to a person who has imported into a foreign country a tobacco product (as defined in section 55) that was manufactured in Canada and exported by the tobacco licensee who manufactured it to the foreign country in accordance with paragraph 50(4)(a), an amount determined in accordance with subsection (2) in respect of the product if

  • (a) the person provides evidence satisfactory to the Minister that

    • (i) all taxes and duties imposed on the product under the laws of the foreign country having national application have been paid, and

    • (ii) the container containing the product has printed on it or affixed to it tobacco markings; and

  • (b) the person applies to the Minister for the refund within two years after the product was exported to the foreign country.

• Marginal note:Determination of refund

  (2) The amount of the refund under subsection (1) is equal to the lesser of

  • (a) the total of the taxes and duties referred to in subparagraph (1)(a)(i) that are paid in respect of the tobacco product, and

  • (b) the amount of the special duty imposed under paragraph 56(1)(a) in respect of the product that is paid by the tobacco licensee who manufactured it.

• Marginal note:Overpayment of refund or interest

  (3) If an amount has been paid to a person as a refund in respect of a tobacco product exported by the tobacco licensee who manufactured it or as interest in respect of such a refund and a special duty under paragraph 56(1)(b) was imposed in respect of the product, the amount is deemed to be duty payable under this Act by the licensee that became payable during the fiscal month of the licensee in which the amount was paid to the person.

• Marginal note:Refund of special duty to tobacco licensee if foreign taxes paid

  (4) If a refund under subsection (1) has been paid in respect of an exported tobacco product, the Minister may refund to the tobacco licensee who manufactured the product the amount, if any, by which the special duty imposed under paragraph 56(1)(a) in respect of the product and paid by the licensee exceeds the amount of the refund under subsection (1) if the licensee applies to the Minister for the refund under this subsection within two years after the product was exported.

Marginal note:Refund of special duty to duty free shop licensee

• 183 (1) If a duty free shop licensee who holds a licence issued under section 22 sells, in accordance with the Customs Act, imported manufactured tobacco to an individual who is not a resident of Canada and who is about to depart Canada, the Minister may refund to the licensee the special duty paid under section 53 in respect of that portion of the total quantity of the tobacco exported by the individual on their departure that does not exceed

  • (a) in the case of cigarettes, 200 cigarettes;

  • (b) in the case of tobacco sticks, 200 sticks; and

  • (c) in the case of manufactured tobacco other than cigarettes and tobacco sticks, 200 g.

• Marginal note:Application

  (2) No refund shall be paid to a duty free shop licensee in respect of a sale of imported manufactured tobacco unless the licensee applies to the Minister for the refund within two years after the sale.

Marginal note:Payment if bad debt

• 184 (1) If an ad valorem duty under section 43 has been paid by a tobacco licensee in respect of an arm’s length sale of cigars and the licensee has established that any debt owing to the licensee in respect of the sale has become in whole or in part a bad debt and has accordingly written off all or part of the debt as a bad debt in the licensee’s books of account, an amount equal to the proportion of the amount of that duty that the amount of the debt written off is of the price for which the cigars were sold may, subject to this Act, be paid to that licensee if the licensee applies for a refund of the amount within two years after the end of the licensee’s fiscal month during which the debt was so written off.

• Marginal note:Recovery of payment

  (2) If a tobacco licensee recovers all or any part of a debt in respect of which an amount is paid to the licensee under subsection (1) (in this subsection referred to as the “refunded amount”), that licensee shall immediately pay to the Receiver General an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid.

• Marginal note:Definition of arm’s length sale

  (3) In this section, arm’s length sale in respect of cigars means a sale of cigars by a tobacco licensee to a person with whom the licensee is dealing at arm’s length at the time of the sale.

Marginal note:Refund — imported bulk spirits

• 185 (1) If imported bulk spirits on which special duty has been paid are returned by a licensed user to the spirits licensee who supplied them to the licensed user, the Minister may refund the duty to the spirits licensee who paid the duty if the licensee applies for the refund within two years after the spirits are returned.

• Marginal note:Refund — packaged imported spirits

  (2) If imported spirits that are packaged and on which special duty has been paid are returned under prescribed conditions by a licensed user to the excise warehouse of the excise warehouse licensee who supplied them to the licensed user, the Minister may refund the duty to the excise warehouse licensee who paid the duty if the excise warehouse licensee applies for the refund within two years after the spirits are returned.

Marginal note:Refund — alcohol returned to warehouse

186 If packaged alcohol that has been removed from the excise warehouse of an excise warehouse licensee for entry into the duty-paid market is returned in accordance with section 152 to the warehouse, the Minister may refund to the licensee the duty paid on the alcohol if the licensee applies for the refund within two years after the alcohol is returned.

Marginal note:Refund — alcohol in special container

187 If a marked special container of alcohol is returned to the excise warehouse licensee who paid duty on the alcohol, the Minister may refund to the licensee the duty on the alcohol remaining in the container when it is returned if the licensee

• (a) destroys the alcohol in the manner approved by the Minister; and

• (b) applies for the refund within two years after the container is returned.

Marginal note:Refund of duty — destroyed cannabis

187.1 The Minister may refund to a cannabis licensee the duty paid on a cannabis product that is re-worked or destroyed by the cannabis licensee in accordance with section 158.16 if the cannabis licensee applies for the refund within two years after the cannabis product is re-worked or destroyed.

Marginal note:Refund of duty — destroyed vaping product

187.2 The Minister may refund to a vaping product licensee the duty paid on a vaping product that is re-worked or destroyed by the licensee in accordance with section 158.53 if the licensee applies for the refund within two years after the vaping product is re-worked or destroyed.

Assessments

Marginal note:Assessments

• 188 (1) The Minister may assess

  • (a) the duty payable by a person for a reporting period of the person; and

  • (b) subject to section 190, interest and any other amount payable by a person under this Act.

• Marginal note:Reassessment

  (2) The Minister may reassess or make an additional assessment of any duty, interest or other amount that may be assessed under subsection (1).

• Marginal note:Allowance of unclaimed amounts

  (3) If, in assessing the duty, interest or other amount payable by a person for a reporting period of the person or other amount payable by a person under this Act, the Minister determines that

  • (a) a refund would have been payable to the person if it had been claimed in an application under this Act filed on the particular day that is

    • (i) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was required to be filed, or

    • (ii) if the assessment is in respect of interest or other amount, the day on which the interest or other amount became payable by the person,

  • (b) the refund was not claimed by the person in an application filed before the day on which notice of the assessment is sent to the person, and

  • (c) the refund would be payable to the person if it were claimed in an application under this Act filed on the day on which notice of the assessment is sent to the person or would be disallowed if it were claimed in that application only because the period for claiming the refund expired before that day,

  the Minister shall apply all or part of the refund against that duty, interest or other amount that is payable as if the person had, on the particular day, paid the amount so applied on account of that duty, interest or other amount.

• Marginal note:Application of overpayment

  (4) If, in assessing the duty payable by a person for a reporting period of the person, the Minister determines that there is an overpayment of duty payable for the period, unless the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall

  • (a) apply

    • (i) all or part of the overpayment

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on the particular day on which the person was required to file a return for the period, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the particular day, paid the amount so applied on account of the outstanding amount;

  • (b) apply

    • (i) all or part of the overpayment that was not applied under paragraph (a) together with interest on the overpayment at the prescribed rate, computed for the period beginning on the day that is 30 days after the latest of

      • (A) the particular day,

      • (B) the day on which the return for the reporting period was filed, and

      • (C) in the case of an overpayment that is attributable to a payment made on a day subsequent to the days referred to in clauses (A) and (B), that subsequent day,

      and ending on the day on which the person defaulted in paying the outstanding amount referred to in subparagraph (ii)

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the later day, paid the amount and interest so applied on account of the outstanding amount; and

  • (c) refund to the person the part of the overpayment that was not applied under paragraphs (a) and (b) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the latest of

    • (i) the particular day,

    • (ii) the day on which the return for the reporting period was filed, and

    • (iii) in the case of an overpayment that is attributable to a payment made on a day subsequent to the days referred to in subparagraphs (i) and (ii), that subsequent day,

    and ending on the day on which the refund is paid to the person.

• Marginal note:Application of payment

  (5) If, in assessing the duty payable by a person for a reporting period of the person or an amount (in this subsection referred to as the “overdue amount”) payable by a person under this Act, all or part of a refund is not applied under subsection (3) against that duty payable or overdue amount, except if the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall

  • (a) apply

    • (i) all or part of the refund that was not applied under subsection (3)

    against

    • (ii) any other amount (in this paragraph referred to as the “outstanding amount”) that, on the particular day that is

      • (A) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was required to be filed, or

      • (B) if the assessment is in respect of an overdue amount, the day on which the overdue amount became payable by the person,

      the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the particular day, paid the refund so applied on account of the outstanding amount;

  • (b) apply

    • (i) all or part of the refund that was not applied under subsection (3) or paragraph (a) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the later of

      • (A) the particular day, and

      • (B) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was filed,

      and ending on the day on which the person defaulted in paying the outstanding amount referred to in subparagraph (ii)

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the later day, paid the refund and interest so applied on account of the outstanding amount; and

  • (c) refund to the person the part of the refund that was not applied under any of subsection (3) and paragraphs (a) and (b) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the later of

    • (i) the particular day, and

    • (ii) if the assessment is in respect of duty payable for the reporting period, the day on which the return for the period was filed,

    and ending on the day on which the refund is paid to the person.

• Marginal note:Limitation on refunding overpayments

  (6) An overpayment of duty payable for a reporting period of a person and interest on the overpayment shall not be applied under paragraph (4)(b) or refunded under paragraph (4)(c) unless the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with

  • (a) the Minister under this Act, the Excise Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Underused Housing Tax Act, the Select Luxury Items Tax Act, the Digital Services Tax Act and the Global Minimum Tax Act; or

  • (b) the Minister of Public Safety and Emergency Preparedness under the Customs Act.

• Marginal note:Limitation

  (7) A refund or a part of the refund that was not applied under subsection (3) and interest on the refund under paragraphs (5)(b) and (c)

  • (a) shall not be applied under paragraph (5)(b) against an amount (in this paragraph referred to as the “outstanding amount”) that is payable by a person unless the refund would have been payable to the person as a refund if the person had claimed it in an application under this Act filed on the day on which the person defaulted in paying the outstanding amount and, in the case of a payment under section 176, if that section allowed the person to claim the payment within four years after the person paid the amount in respect of which the payment would be so payable; and

  • (b) shall not be refunded under paragraph (5)(c) unless

    • (i) the refund would have been payable to the person as a refund if the person had claimed it in an application under this Act filed on the day on which notice of the assessment is sent to the person, and

    • (ii) the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with

      • (A) the Minister under this Act, the Excise Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Underused Housing Tax Act, the Select Luxury Items Tax Act, the Digital Services Tax Act and the Global Minimum Tax Act, or

      • (B) the Minister of Public Safety and Emergency Preparedness under the Customs Act.

• Marginal note:Deemed claim or application

  (8) If, in assessing any duty, interest or other amount payable by a person under this Act, the Minister applies or refunds an amount under subsection (3), (4) or (5),

  • (a) the person is deemed to have claimed the amount in a return or application filed under this Act; and

  • (b) to the extent that an amount is applied against any duty, interest or other amount payable by the person, the Minister is deemed to have refunded or paid the amount to the person and the person is deemed to have paid the duty, interest or other amount payable against which it was applied.

• Marginal note:Refund on reassessment

  (9) If a person has paid an amount on account of any duty, interest or other amount assessed under this section in respect of a reporting period and the amount paid exceeds the amount determined on reassessment to have been payable by the person, the Minister may refund to the person the amount of the excess, together with interest on the excess amount at the prescribed rate for the period that

  • (a) begins on the day that is 30 days after the latest of

    • (i) the day on which the person was required to file a return for the reporting period,

    • (ii) the day on which the person filed a return for the reporting period, and

    • (iii) the day on which the amount was paid by the person; and

  • (b) ends on the day on which the refund is paid.

• Marginal note:Refund of interest or penalty

  (9.1) Despite subsection (9), if a person has paid an amount of interest or penalty and the Minister waives or reduces that amount under section 173 or 255.1, as the case may be, the Minister shall refund the amount of the waiver or reduction to the person, together with interest on the amount of the waiver or reduction at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that section and ending on the day on which the refund is paid.

• Marginal note:Meaning of overpayment of duty payable

  (10) In this section, overpayment of duty payable of a person for a reporting period of the person means the amount, if any, by which the total of all amounts paid by the person on account of duty payable for the period exceeds the total of

  • (a) the duty payable for the period, and

  • (b) all amounts paid to the person under this Act as a refund for the period.