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

Full Document:  

Act current to 2023-01-11 and last amended on 2022-12-15. Previous Versions

PART VIIGeneral (continued)

Deductions, Refunds and Drawbacks (continued)

Marginal note:Drawback on certain goods

  •  (1) On application, the Minister may, under regulations of the Governor in Council, grant a drawback of the tax imposed under Part III and paid on or in respect of

    • (a) goods exported from Canada;

    • (b) goods supplied as ships’ stores;

    • (c) goods used for the equipment, repair or reconstruction of ships or aircraft; or

    • (d) goods delivered to telegraph cable ships proceeding on an ocean voyage for use in laying or repairing oceanic telegraph cables outside Canadian waters.

  • Marginal note:Specific sum

    (2) The Minister may, under regulations of the Governor in Council, pay a specific sum in lieu of a drawback under subsection (1) in any case where a specific sum in lieu of a drawback of duties is granted under section 117 of the Customs Tariff.

  • Marginal note:Drawback on imported goods

    (2.1) On application, the Minister of Public Safety and Emergency Preparedness may, under section 113 of the Customs Tariff, grant a drawback of the tax imposed under Part III and paid on or in respect of goods imported into Canada.

  • Marginal note:Application for drawback

    (3) An application for a drawback under subsection (1) shall be made in the prescribed form and contain the prescribed information and shall be filed with the Minister within such time and in such manner as the Governor in Council may, by regulation, prescribe.

  • Marginal note:Evidence

    (4) No drawback shall be granted under subsection (1) unless the person applying for the drawback provides such evidence in support of the application as the Minister may require.

  • (5) [Repealed, 2002, c. 22, s. 381]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 70
  • R.S., 1985, c. 7 (2nd Supp.), ss. 25, 34, 75
  • 1991, c. 42, s. 4
  • 1993, c. 25, s. 62
  • 1995, c. 41, s. 114
  • 1996, c. 31, s. 81
  • 2002, c. 22, ss. 381, 429(F)
  • 2005, c. 38, ss. 101, 145

Marginal note:Definitions

  •  (1) In this section,

    adjustment

    adjustment to the sale price of goods means the giving of a discount, allowance, rebate or other amount as a reduction in the sale price; (redressement)

    other enactment

    other enactment means

    • (a) a provision of an Act of Parliament, other than this Act, enacted before 1991, or

    • (b) a provision of a regulation or order enacted under an Act of Parliament before 1991; (autre texte)

    refund

    refund of tax means

    • (a) a refund of that tax, or other payment calculated with reference to that tax, provided for under any of sections 68, 68.1, 68.17, 68.19, 68.2 or 68.23 to 68.3,

    • (b) a drawback of that tax, or payment in lieu of a drawback of that tax, provided for under section 70, or

    • (c) a refund, rebate, drawback or remission of that tax, or other payment in respect of or calculated with reference to that tax, provided for under any other enactment; (remboursement)

    registrant

    registrant has the meaning assigned by subsection 123(1); (inscrit)

    tax

    tax means tax imposed under Part VI. (taxe)

  • Marginal note:Adjustments after 1990

    (2) A refund of tax shall not be paid to a person (in this subsection referred to as the “vendor”) in respect of an adjustment made after 1990 to the sale price of goods sold by the vendor to a purchaser unless

    • (a) the vendor sold the goods to the purchaser under an agreement in writing, paid tax in respect of the sale of the goods, calculated on the sale price, and granted the adjustment within two years after the day on or before which the vendor was required to pay the tax under section 78; and

    • (b) the adjustment is provided for in the agreement and the making of the adjustment is not dependent on the performance of any service or other act by the purchaser.

  • Marginal note:Exports after 1990

    (3) A refund of tax provided for under section 68.1 or 70 or any other enactment in respect of goods exported from Canada shall not be paid to a person in respect of goods exported by the person after 1990 unless

    • (a) the person had possession of the goods in Canada at the end of 1990 and was not a registrant on January 1, 1991; or

    • (b) the person imported the goods, had possession of the goods in Canada at the end of 1990 and was not entitled to be paid a rebate in respect of the goods under section 120, and the goods suffered damage or deterioration at any time before the goods were released, were of inferior quality to those in respect of which the person paid tax, were defective or were not the goods ordered by the person.

  • Marginal note:Goods sold after 1990

    (4) A refund of tax provided for under section 68.17, 68.2 or 70 or any other enactment in respect of goods sold or otherwise supplied or transferred by a person to a purchaser or other transferee shall not be paid to the person unless the person transferred ownership or possession of the goods to the purchaser or other transferee of the goods before 1991.

  • Marginal note:Goods for use by a province

    (5) A refund of tax shall not be paid under section 68.19 in respect of goods supplied, transferred or delivered to, or purchased by, Her Majesty in right of a province unless

    • (a) Her Majesty in that right acquired ownership or possession of the goods before 1991; or

    • (b) the goods were supplied or transferred to Her Majesty in that right by a person in the course of performing services under an agreement in writing with Her Majesty in that right and the person had possession of the goods in Canada at the end of 1990 and was not entitled to be paid a rebate in respect of the goods under section 120.

  • Marginal note:System goods acquired after 1990

    (6) A refund of tax shall not be paid under section 68.23 to a person in respect of system goods unless the person acquired ownership or possession of the goods before 1991 and was not entitled to be paid a rebate in respect of the goods under section 120.

  • Marginal note:Goods acquired by certain organizations after 1990

    (7) A refund of tax shall not be paid under any of sections 68.24 to 68.27 to a person (in this subsection referred to as the “organization”) unless

    • (a) in the case of goods purchased by the organization, the organization acquired ownership or possession of the goods before 1991; or

    • (b) in the case of goods acquired or used by another person for a purpose for which a refund of tax to the organization is provided for under that section, the other person acquired ownership or possession of the goods before 1991 and was not entitled to be paid a rebate in respect of the goods under section 120.

  • Marginal note:Other goods acquired after 1990

    (8) A refund of tax in respect of goods purchased or otherwise acquired by a person shall not be paid under any of sections 68.28 to 68.3 or 70 or any other enactment to the person unless the person acquired ownership or possession of the goods before 1991.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 3

Marginal note:Statutory recovery rights only

 Except as provided in this or any other Act of Parliament, no person has a right of action against Her Majesty for the recovery of any moneys paid to Her Majesty that are taken into account by Her Majesty as taxes, penalties, interest or other sums under this Act.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 71
  • R.S., 1985, c. 7 (2nd Supp.), ss. 26, 34

Definition of application

  •  (1) In this section, application means an application under any of sections 68 to 69.

  • Marginal note:Form and contents of application

    (2) An application shall be made in the prescribed form and contain the prescribed information.

  • Marginal note:Filing of application

    (3) An application shall be filed with the Minister in any manner that the Governor in Council may, by regulation, prescribe.

  • Marginal note:Determination

    (4) On receipt of an application, the Minister shall, with all due dispatch, consider the application and determine the amount, if any, payable to the applicant.

  • Marginal note:Minister not bound

    (5) In considering an application, the Minister is not bound by any application or information supplied by or on behalf of any person.

  • Marginal note:Notice and payment

    (6) After considering an application, the Minister shall

    • (a) send to the applicant a notice of determination in the prescribed form setting out

      • (i) the date of the determination,

      • (ii) the amount, if any, payable to the applicant,

      • (iii) a brief explanation of the determination, where the Minister rejects the application in whole or in part, and

      • (iv) the period within which an objection to the determination may be made under section 81.17; and

    • (b) pay to the applicant the amount, if any, payable to him.

  • Marginal note:Interest on payment

    (7) If an amount is paid to an applicant under subsection (6), the Minister shall pay interest at the prescribed rate to the applicant on the amount for the period beginning on the day that is 30 days after the day on which the application was received by the Minister and ending on the day on which the amount is paid.

  • (8) [Repealed, 2003, c. 15, s. 98]

  • Marginal note:Determination valid and binding

    (9) A determination under subsection (4), including a determination varied under section 81.17, subject to being varied or vacated on an objection or appeal under this Part and subject to an assessment, shall be deemed to be valid and binding notwithstanding any irregularity, informality, error, defect or omission therein or in any proceeding under this Act relating thereto.

  • Marginal note:Irregularities

    (10) No determination under subsection (4) shall be varied or vacated on an appeal by reason only of an irregularity, informality, error, defect or omission by any person in the observance of any directory provision of this Act.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 72
  • R.S., 1985, c. 7 (2nd Supp.), ss. 27, 34
  • 1994, c. 29, s. 8
  • 2001, c. 16, s. 30
  • 2003, c. 15, s. 98

Marginal note:Deductions of tax, other than Part I tax, where no application

  •  (1) Any person authorized pursuant to subsection (4) who files a return under section 20, 21.32 or 78 and to whom an amount would be payable under any of sections 68 to 68.153 or 68.17 to 69 if that person duly applied therefor on the day on which he files the return, in lieu of applying for that amount, may in that return report that amount and deduct it or any part thereof from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in that return.

  • Marginal note:Deductions of Part I tax

    (2) Any person who makes a return under subsection 5(1) and to whom an amount would be payable under section 68 if the person duly applied therefor on the day on which that return is made, in lieu of applying for that amount, may in that return report that amount and deduct it or any part thereof from the amount of any payment of tax, penalty, interest or other sum that is reported in that return.

  • Marginal note:Subsequent deductions

    (3) Where a person reports an amount in accordance with subsection (1) or (2) and does not deduct the whole amount in the return in which it is reported, the person may, in any subsequent return, report the amount not previously deducted under this section and deduct it or any part thereof from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in that subsequent return.

  • Marginal note:Authorizations and terms

    (4) The Minister may, in writing,

    • (a) authorize a specified person, a person of a specified class of persons or persons generally to make deductions under subsections (1) and (3) either generally or with respect to any transaction of a specified class of transactions;

    • (b) amend an authorization made pursuant to paragraph (a) or suspend or revoke any such authorization either generally or with respect to a specified person or a person of a specified class of persons; and

    • (c) specify the terms and conditions on which, and the manner in which, deductions may be made under subsection (1), (2) or (3).

  • Marginal note:Presumption

    (5) Where a person deducts an amount under this section,

    • (a) the person is deemed to have paid, on the day he filed or made the return in which the amount was deducted, an amount equal to that amount on account of his tax, penalty, interest or other sum payable under this Act in respect of the period for which the return was filed or made; and

    • (b) the Minister is deemed to have paid, on that day, an amount equal to that amount to that person in accordance with section 72.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 73
  • R.S., 1985, c. 7 (2nd Supp.), ss. 28, 34, c. 12 (4th Supp.), s. 29

 [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 7 (2nd Supp.), ss. 29, 34

Marginal note:Deductions of tax, other than Part I tax, where application

  •  (1) In lieu of making a payment, other than a payment in respect of Part I, pursuant to an application under any of sections 68 to 68.11 or 68.17 to 69, the Minister may, on request of the applicant, authorize the applicant to deduct, on such terms and conditions and in such manner as the Minister may specify, the amount that would otherwise be paid to the applicant from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in a return under section 78 by the applicant.

  • Marginal note:Notification of applicant

    (2) Where the Minister authorizes an applicant to make a deduction under subsection (1), the Minister shall notify the applicant to that effect in the notice of determination sent to the applicant.

  • Marginal note:Interest on deduction

    (3) If a deduction is authorized under subsection (1), interest shall be authorized at the prescribed rate as a deduction in accordance with that subsection for the period beginning on the day that is 30 days after the day on which the application for the payment in respect of which the deduction was authorized was received by the Minister and ending on the day on which the notice of determination was sent.

  • (4) [Repealed, 2003, c. 15, s. 99]

  • Marginal note:Presumption

    (5) Where an applicant deducts an amount under this section,

    • (a) the applicant is deemed to have paid, on the day he filed the return in which the amount was deducted, an amount equal to that amount on account of his tax, penalty, interest or other sum payable under this Act in respect of the period for which the return was filed; and

    • (b) the Minister is deemed to have paid, on the day the notice of determination is sent to the applicant, an amount equal to that amount to the applicant in accordance with section 72.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 74
  • R.S., 1985, c. 7 (2nd Supp.), s. 34, c. 12 (4th Supp.), s. 30
  • 1997, c. 26, s. 69
  • 2001, c. 16, s. 31
  • 2003, c. 15, s. 99
 
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