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

Full Document:  

Act current to 2019-08-15 and last amended on 2019-06-21. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VCollection and Remittance of Division II Tax (continued)

SUBDIVISION BRemittance of Tax (continued)

Marginal note:Payment of net tax refund

  •  (1) Where a net tax refund payable to a person is claimed in a return filed under this Division by the person, the Minister shall pay the refund to the person with all due dispatch after the return is filed.

  • Marginal note:Restriction

    (2) A net tax refund for a reporting period of a person shall not be paid to the person under subsection (1) at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister.

  • Marginal note:Restriction

    (2.1) The Minister is not required to pay a net tax refund under subsection (1) to a person that is a registrant unless the Minister is satisfied that all information, that is contact information or that is information relating to the identification and business activities of the person, to be given by the person on the application for registration made by the person under section 240 has been provided and is accurate.

  • Marginal note:Interest on refund

    (3) If a net tax refund for a reporting period of a person is paid to the person under subsection (1), interest at the prescribed rate shall be paid to the person on the net tax refund for the period beginning on the day that is 30 days after the later of the day the return in which the refund is claimed is filed with the Minister and the day following the last day of the reporting period and ending on the day the refund is paid.

  • (4) [Repealed, 2006, c. 4, s. 139]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 203
  • 1997, c. 10, s. 211
  • 2006, c. 4, s. 139
  • 2013, c. 33, s. 45

Marginal note:Refund of payment

  •  (1) Where a person has paid instalments or interim net tax for a reporting period of the person, or any other amounts on account of the person’s net tax for the period, that exceed the amount of the net tax remittable by the person for the period and the person claims a refund of the excess in a return (other than an interim return) for the period filed under this Division by the person, the Minister shall refund the excess to the person with all due dispatch after the return is filed.

  • Marginal note:Restriction

    (2) An amount paid on account of net tax for a reporting period of a person shall not be refunded to the person under subsection (1) at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister.

  • Marginal note:Interest on refund

    (3) If a refund of an amount that was paid on account of net tax for a reporting period of a person is paid to the person under subsection (1), interest at the prescribed rate shall be paid to the person on the refund for the period beginning on the day that is 30 days after the later of the day the return for the reporting period is filed with the Minister and the day following the last day of the reporting period and ending on the day the refund is paid.

  • (4) [Repealed, 2006, c. 4, s. 140]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1997, c. 10, ss. 48, 212
  • 2006, c. 4, s. 140

Marginal note:Overpayment of refund or interest

 Where an amount is paid to, or applied to a liability of, a person as a refund, or as interest, under this Division and the person is not entitled to the refund or interest, as the case may be, or the amount paid or applied exceeds the refund or interest, as the case may be, to which the person is entitled, the person shall pay to the Receiver General an amount equal to the refund, interest or excess, as the case may be, on the day the refund, interest or excess, as the case may be, is paid to, or applied to a liability of, the person.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 92

Marginal note:Definitions

  •  (1) In this section,

    certified institution

    certified institution has the meaning assigned by section 2 of Part XIV of Schedule III; (institution agréée)

    specified property

    specified property means goods described in section 1 of Part XIV of Schedule III. (biens déterminés)

  • Marginal note:Deduction from net tax

    (2) Where a registrant is a certified institution in a particular reporting period of the registrant, the registrant may, in determining the net tax for the particular reporting period or for a reporting period that ends within four years after the end of the particular period, deduct

    • (a) the total of all amounts that became collectible, or were collected without having become collectible, by the registrant in the particular period and in 1991 as or on account of tax under Division II in respect of specified property;

    • (b) 75% of the total of all amounts that became collectible, or were collected without having become collectible, by the registrant in the particular period and in 1992 as or on account of tax under Division II in respect of specified property;

    • (c) 50% of the total of all amounts that became collectible, or were collected without having become collectible, by the registrant in the particular period and in 1993 as or on account of tax under Division II in respect of specified property; and

    • (d) 25% of the total of all amounts that became collectible, or were collected without having become collectible, by the registrant in the particular period and in 1994 or 1995 as or on account of tax under Division II in respect of specified property.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 92
  • 1997, c. 10, s. 49

Marginal note:Bad debt — deduction from net tax

  •  (1) If a supplier has made a taxable supply (other than a zero-rated supply) for consideration to a recipient with whom the supplier was dealing at arm’s length, it is established that all or a part of the total of the consideration and tax payable in respect of the supply has become a bad debt and the supplier at any time writes off the bad debt in the supplier’s books of account, the reporting entity for the supply may, in determining the reporting entity’s net tax for the reporting period that includes that time or for a subsequent reporting period, deduct the amount determined by the formula

    A × B/C

    where

    A
    is the tax in respect of the supply;
    B
    is the total of the consideration, tax and applicable provincial tax remaining unpaid in respect of the supply that was written off at that time as a bad debt; and
    C
    is the total of the consideration, tax and applicable provincial tax in respect of the supply.
  • Marginal note:Reporting and remittance conditions

    (1.1) A reporting entity is not entitled to deduct an amount under subsection (1) in respect of a supply unless

    • (a) the tax collectible in respect of the supply is included in determining the amount of net tax reported in the reporting entity’s return under this Division for the reporting period in which the tax became collectible; and

    • (b) all net tax remittable, if any, as reported in that return is remitted.

  • (2) [Repealed, 2000, c. 30, s. 58]

  • Marginal note:Recovery of bad debt

    (3) If all or part of a bad debt in respect of which a person has made a deduction under this section is recovered at any time, the person shall, in determining the person’s net tax for the reporting period that includes that time, add the amount determined by the formula

    A × B/C

    where

    A
    is the amount of the bad debt recovered at that time;
    B
    is the tax in respect of the supply to which the bad debt relates; and
    C
    is the total of the consideration, tax and applicable provincial tax in respect of the supply.
  • Marginal note:Limitation period

    (4) A person may not claim a deduction under this section in respect of a bad debt relating to a supply unless the deduction is claimed in a return under this Division filed within four years after the day on or before which a return of the person was required to be filed for the reporting period in which the supplier has written off the bad debt in its books of account.

  • Marginal note:Definitions

    (5) The following definitions apply in this section.

    applicable provincial tax

    applicable provincial tax, in respect of a supply, means any amount that can reasonably be attributed to a tax, duty or fee imposed under an Act of the legislature of a province in respect of the supply that is a prescribed tax, duty or fee for the purposes of section 154. (taxe provinciale applicable)

    reporting entity

    reporting entity for a supply means

    • (a) if an election has been made under subsection 177(1.1) in respect of the supply, the person who is required, under that subsection, to include the tax collectible in respect of the supply in determining the person’s net tax; and

    • (b) in any other case, the supplier. (déclarant)

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1997, c. 10, s. 50
  • 2000, c. 30, s. 58
  • 2007, c. 18, s. 31
 
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