Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

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

Full Document:  

Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART VIIGeneral (continued)

Deductions, Refunds and Drawbacks (continued)

Marginal note:Payment where use as ships’ stores

 If tax under Part III has been paid in respect of any goods and a manufacturer, producer, wholesaler, jobber or other dealer has sold the goods for use as ships’ stores, an amount equal to the amount of that tax shall, subject to this Part, be paid to that dealer if that dealer applies for it within two years after that sale of the goods.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 7 (2nd Supp.), s. 34
  • 1991, c. 42, s. 2
  • 1993, c. 25, s. 61
  • 2002, c. 22, ss. 378, 429(F)

 [Repealed, 2002, c. 22, s. 378]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2001, c. 16, s. 28
  • 2002, c. 22, s. 378

 [Repealed, 2002, c. 22, s. 378]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2001, c. 16, s. 28
  • 2002, c. 22, s. 378

Marginal note:Payment where goods in inventory

  •  (1) If tax under Part III has been paid in respect of any goods and a person holds the goods in an unused condition in inventory on the day a licence is granted to that person under section 54 or 64 and could thereafter have obtained the goods exempt from tax under subsection 23(7), an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if that person applies for it within two years after the licence was granted.

  • Marginal note:Payment where goods in inventory

    (2) If tax under Part III has been paid in respect of any goods and a person holds the goods in an unused condition in inventory on the day a licence is granted to that person under section 55 and could thereafter have obtained the goods exempt from tax under subsection 23(6), (7) or (8), an amount equal to the lesser of the amount of that tax and the amount of tax under Part III that would be payable if the goods were acquired in a taxable transaction by that person on that day shall, subject to this Part, be paid to that person if that person applies for it within two years after the licence was granted.

  • Marginal note:Exception

    (3) No amount equal to the amount of tax under Part III shall be paid under subsection (2) to a person in respect of any goods that are not subject to tax under that Part on the day a licence is granted to that person under section 55.

  • (3.1) [Repealed, 2002, c. 22, s. 379]

  • Marginal note:Unused condition

    (4) For the purposes of this section, goods are in an unused condition if they are new or have not been used in Canada.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 7 (2nd Supp.), s. 34
  • 2001, c. 16, s. 29
  • 2002, c. 22, s. 379

Marginal note:Payment where use by province

  •  (1) If tax under Part III has been paid in respect of any goods and Her Majesty in right of a province has purchased or imported the goods for any purpose other than

    • (a) resale,

    • (b) use by any board, commission, railway, public utility, university, manufactory, company or agency owned, controlled or operated by the government of the province or under the authority of the legislature or the lieutenant governor in council of the province, or

    • (c) use by Her Majesty in that right, or by any agents or servants of Her Majesty in that right, in connection with the manufacture or production of goods or use for other commercial or mercantile purposes,

    an amount equal to the amount of that tax shall, subject to this Part, be paid either to Her Majesty in that right or to the importer, transferee, manufacturer, producer, wholesaler, jobber or other dealer, as the case may require, if Her Majesty or the dealer applies therefor within two years after Her Majesty purchased or imported the goods.

  • Marginal note:Exception

    (2) No amount shall be paid pursuant to subsection (1) to an importer, transferee, manufacturer, producer, wholesaler, jobber or other dealer who supplies goods to Her Majesty in right of a province in respect of which there is in force at the time the goods are supplied a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 7 (2nd Supp.), s. 34
  • 1991, c. 42, s. 3
  • 2002, c. 22, s. 380

Marginal note:Payment where subsequent exempt sale

  •  (1) Where tax under Part III or VI has been paid in respect of any goods and subsequently the goods are sold to a purchaser in circumstances that, by virtue of the nature of that purchaser or the use to which the goods are to be put or by virtue of both such nature and use, would have rendered the sale to that purchaser exempt or relieved from that tax under subsection 23(6), paragraph 23(8)(b) or subsection 50(5) or 51(1) had the goods been manufactured in Canada and sold to the purchaser by the manufacturer or producer thereof, an amount equal to the amount of that tax shall, subject to this Part, be paid to the person who sold the goods to that purchaser if the person who sold the goods applies therefor within two years after he sold the goods.

  • Marginal note:Application of anti-avoidance rule

    (2) Section 274 applies, with such modifications as the circumstances require, to any transaction

    • (a) that is a sale of goods that would give rise to the application of, or that is the basis of an application under, subsection (1), and

    • (b) that takes place after December 17, 1990 and before 1991,

    and for that purpose, every reference in that section to “an assessment, a reassessment or an additional assessment” shall be read as a reference to “an assessment, a reassessment, an additional assessment, a determination or a redetermination”.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 7 (2nd Supp.), s. 34
  • 1993, c. 27, s. 2

Marginal note:Definitions

  •  (1) In this section,

    arm’s length sale

    arm’s length sale means a sale of goods by a licensed manufacturer to a person with whom the manufacturer is dealing at arm’s length at the time of the sale; (vente sans lien de dépendance)

    fiscal period

    fiscal period means a fiscal period as determined for the purposes of the Income Tax Act. (exercice)

  • Marginal note:Payment where bad debt

    (2) Where ad valorem tax under Part III or VI has been paid by a licensed manufacturer in respect of an arm’s length sale occurring on or after February 16, 1984 and the manufacturer has established, in accordance with generally accepted accounting practices, that any debt owing to him in respect of the sale has become in whole or in part a bad debt and has accordingly written off the debt as a bad debt in his books of account, an amount equal to the proportion of the amount of that tax that the amount of the debt written off is of the price for which the goods were sold shall, subject to this Part, be paid to that manufacturer if he applies therefor in the two years after the end of his fiscal period during which the debt was so written off.

  • Marginal note:Recovery of payment

    (3) Where a licensed manufacturer recovers all or any part of a debt in respect of which an amount is paid to him pursuant to subsection (2), in this subsection referred to as the “refunded amount”, that manufacturer shall forthwith pay to Her Majesty 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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 7 (2nd Supp.), s. 34, c. 12 (4th Supp.), s. 25
  • 1999, c. 31, ss. 231(F), 248(F)

Marginal note:Payment where warranty

 Where tax under Part III or VI has been paid in respect of any goods that a licensed manufacturer gives away as free replacement parts under a written warranty given in respect of the goods into which the parts are to be incorporated and the amount, if any, charged for the warranty is included in the sale price charged by the licensed manufacturer for the goods into which the parts are to be incorporated or, if those goods are imported goods, in the duty paid value thereof, an amount equal to the amount of that tax shall, subject to this Part, be paid to that manufacturer if he applies therefor within two years after he gave away the goods.

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