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

Full Document:  

Act current to 2020-02-11 and last amended on 2019-08-28. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VIRebates (continued)

Marginal note:Liability for amount paid or credited

 If, under section 252 or 252.4, a registrant at a particular time pays to, or credits in favour of, a person an amount on account of a rebate and

  • (a) the person does not satisfy the condition (in this section referred to as the “eligibility condition”) that the person would have been entitled to the rebate if the person had paid the tax to which the amount relates and had satisfied the conditions of section 252.2 or, in the case of a rebate under subsection 252.4(1), had applied for the rebate within the time limited by that subsection for filing an application for the rebate, or

  • (b) the amount paid or credited exceeds the rebate to which the person would have been so entitled, which excess is referred to in this section as the “excess amount”,

the following rules apply:

  • (c) if, at the particular time, the registrant knows or ought to know that the person does not satisfy the eligibility condition or that the amount paid or credited exceeds the rebate to which the person is entitled, the registrant and the person are jointly and severally, or solidarily, liable to pay to the Receiver General under section 264 the amount or excess amount, as the case may be, as if it had been paid at the particular time as a rebate under this Division to the registrant and the person, and

  • (d) in any other case, the person is liable to pay to the Receiver General under section 264 the amount or excess amount, as the case may be, as if it had been paid at the particular time to the person as a rebate under this Division.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 107
  • 2017, c. 20, s. 40, c. 33, s. 136(E)

Marginal note:Employees and partners

  •  (1) Where

    • (a) a musical instrument, motor vehicle, aircraft or any other property or a service is or would, but for subsection 272.1(1), be regarded as having been acquired, imported or brought into a participating province by an individual who is

      • (i) a member of a partnership that is a registrant, or

      • (ii) an employee of a registrant (other than a listed financial institution),

    • (a.1) in the case of an individual who is a member of a partnership, the instrument, vehicle, aircraft or other property or service acquired, imported or brought into a participating province was not acquired or imported by the individual on the account of the partnership,

    • (b) the individual has paid the tax (in this subsection referred to as the “tax paid by the individual”) payable in respect of the acquisition or importation of the property or service, or the bringing into a participating province of the property, as the case may be, and

    • (c) in the case of an acquisition, importation or bringing into a participating province, of a musical instrument, the individual is not entitled to claim an input tax credit in respect of the instrument,

    the Minister shall, subject to subsections (2) and (3), pay a rebate in respect of the property or service to the individual for each calendar year equal to the amount determined by the formula

    A × (B - C)

    where

    A
    is
    • (a) where the tax paid by the individual includes only tax imposed under subsection 165(1) or section 212 or 218, the amount determined by the formula

      D/E

      where

      D
      is the rate set out in subsection 165(1), and
      E
      is the total of 100% and the percent­age determined for D,
    • (b) where the tax paid by the individual does not include any tax imposed under any of those provisions, the amount determined by the formula

      F/G

      where

      F
      is the percentage determined in prescribed manner, and
      G
      is the total of 100% and the percent­age determined for F, and
    • (c) in any other case, the amount determined by the formula

      H/I

      where

      H
      is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and
      I
      is the total of 100% and the percent­age determined for H,
    B
    is an amount equal to
    • (a) the capital cost allowance in respect of the instrument, vehicle or aircraft,

    • (b) the amount in respect of the acquisition and importation of the other property imported by the individual (not exceeding the total of the value of that property determined under section 215 and the tax calculated on it), or

    • (c) the amount in respect of

      • (i) the supply by way of lease, licence or similar arrangement of the instrument, vehicle or aircraft,

      • (ii) the supply of the service, or

      • (iii) the supply in Canada of the other property,

      as the case may be, that was deducted under the Income Tax Act in computing the individual’s income for the year from an office or employment or from the partnership, as the case may be, and in respect of which the individual did not receive an allowance from a person, other than an allowance in respect of which the person certifies, in prescribed form containing prescribed information, that, at the time the allowance was paid, the person did not consider

    • (d) the allowance to be a reasonable allowance for the purposes of subparagraph 6(1)(b)(v), (vi), (vii) or (vii.1) of that Act, or

    • (e) where that person is a partnership of which the individual is a member, that the allowance would be a reasonable allowance for the purposes of subparagraph 6(1)(b)(v), (vi), (vii) or (vii.1) of that Act if the individual were an employee of that partnership at that time, and

    C
    is the total of all amounts that the individual received or is entitled to receive from the individual’s employer or the partnership, as the case may be, as a reimbursement in respect of the amount that was so deducted.
  • Marginal note:Restriction on rebate to partner

    (2) The rebate in respect of property or a service payable under subsection (1) for a calendar year to an individual who is a member of a partnership shall not exceed the amount that would be an input tax credit of the partnership in respect of the property or service for the last reporting period of the partnership in its last fiscal year ending in that calendar year if

    • (a) in the case of a musical instrument that is capital property of the individual, the partnership had, in that reporting period,

      • (i) acquired the instrument by way of lease exclusively for use in activities of the partnership and for use in commercial activities thereof to the same extent that the individual’s consumption or use of the instrument during that calendar year in activities of the partnership was in commercial activities thereof, and

      • (ii) paid tax in respect of the instrument equal to the amount determined by the formula

        A × B

        where

        A
        is
        • (A) where the tax paid by the individual includes only tax imposed under subsection 165(1) or section 212 or 218, the amount determined by the formula

          C/D

          where

          C
          is the rate set out in subsection 165(1), and
          D
          is the total of 100% and the percentage determined for C,
        • (B) where the tax paid by the individual does not include any tax imposed under any of those provisions, the amount determined by the formula

          E/F

          where

          E
          is the percentage determined in prescribed manner, and
          F
          is the total of 100% and the percentage determined for E, and
        • (C) in any other case, the amount determined by the formula

          G/H

          where

          G
          is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and
          H
          is the total of 100% and the percentage determined for G, and
        B
        is the capital cost allowance in respect of that instrument that was deductible under the Income Tax Act in computing the individual’s income from the partnership for that calendar year;
    • (b) in the case of a motor vehicle or aircraft that is capital property of the individual,

      • (i) the partnership had acquired the vehicle or aircraft in that reporting period in circumstances in which subsection 202(4) applies and had used the vehicle or aircraft during that last fiscal year of the partnership in commercial activities of the partnership to the same extent that the individual’s use of the vehicle or aircraft during that calendar year in activities of the partnership was in commercial activities thereof, and

      • (ii) the capital cost allowance deductible in respect of that vehicle or aircraft under the Income Tax Act in computing the individual’s income from the partnership for that calendar year were the capital cost allowance so deductible in computing the income of the partnership for that last fiscal year of the partnership; and

    • (c) in any other case, the partnership had

      • (i) acquired the property or service exclusively for use in activities of the partnership and for use in commercial activities thereof to the same extent that the individual’s consumption or use of the property or service during that calendar year in activities of the partnership was in commercial activities thereof, and

      • (ii) paid, in that reporting period, tax in respect of that acquisition equal to the amount determined by the formula

        A × B

        where

        A
        is
        • (A) where the tax paid by the individual includes only tax imposed under subsection 165(1) or section 212 or 218, the amount determined by the formula

          C/D

          where

          C
          is the rate set out in subsection 165(1), and
          D
          is the total of 100% and the percentage determined for C,
        • (B) where the tax paid by the individual does not include any tax imposed under any of those provisions, the amount determined by the formula

          E/F

          where

          E
          is the percentage determined in prescribed manner, and
          F
          is the total of 100% and the percentage determined for E, and
        • (C) in any other case, the amount determined by the formula

          G/H

          where

          G
          is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and
          H
          is the total of 100% and the percentage determined for G, and
        B
        is
        • (A) in the case of property imported by the individual, the amount (not exceeding the total of the value of the property determined under section 215 and the tax calculated on it) in respect of the acquisition and importation of the property by the individual that was deductible under the Income Tax Act in computing the individual’s income from the partnership for that calendar year, and

        • (B) in any other case, the amount in respect of the acquisition of the property or service by the individual that was so deductible in computing that income.

  • Marginal note:Application for rebate

    (3) A rebate for a calendar year shall not be paid under subsection (1) to an individual unless, within four years after the end of the year or on or before such later day as the Minister may allow, the individual files an application for the rebate in prescribed form containing prescribed information with the Minister with a return of the individual’s income under Part I of the Income Tax Act.

  • Marginal note:One application for any year

    (4) An individual shall not make more than one application under this section for a calendar year.

  • Marginal note:Administration of rebates

    (5) Where an individual files an application for a rebate under this section,

    • (a) subsections 160.1(1) and 164(3), (3.1) and (4) of the Income Tax Act apply, with such modifications as the circumstances require, for the purposes of calculating interest on the rebate or any overpayment of the rebate as if the rebate or the overpayment were a refund of tax paid under Part I of that Act or an overpayment of such a refund, as the case may be, and, for those purposes, subsection 280(1) does not apply to the rebate; and

    • (b) sections 165 to 167 and Division J of Part I of the Income Tax Act apply, with such modifications as the circumstances require, to objections to and appeals from an assessment of the amount of the rebate as if it were an assessment of tax payable under Part I of that Act, and sections 301 to 311 do not apply to the assessment.

  • Marginal note:Reassessments

    (6) Despite subsection 298(2), if the Minister has assessed the amount of a rebate of a person payable under subsection (1), the Minister may at any time reassess or make an additional assessment of the amount of the rebate if application for the reassessment or additional assessment has been made by the person.

  • Marginal note:Interest on amount reassessed

    (7) If the Minister pays or applies an amount in respect of a rebate as a result of a reassessment or additional assessment made under subsection (6), subsection 164(3.2) of the Income Tax Act applies, with any modifications that the circumstances require, for the purpose of calculating interest in respect of the amount as if it were an overpayment determined as a result of an assessment made under subsection 152(4.2) of that Act.

  • [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. 108
  • 1997, c. 10, ss. 62, 220
  • 2000, c. 30, s. 71
  • 2006, c. 4, s. 23
  • 2009, c. 32, s. 26
 
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