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

Full Document:  

Act current to 2020-09-09 and last amended on 2020-07-01. Previous Versions

PART VIIGeneral (continued)

Deductions, Refunds and Drawbacks (continued)

Marginal note:Definitions

  •  (1) In this section,

    in bulk

    in bulk, in respect of a sale of gasoline or diesel fuel, means

    • (a) in a quantity of five hundred litres or more, where the gasoline or diesel fuel is delivered to the purchaser at a retail outlet of the vendor, and

    • (b) in any quantity, in any other case; (en vrac)

    logging

    logging means the felling, limbing, bucking and marking of trees, construction of logging roads, off-highway transportation of logs to a mill-pond or mill yard, log salvaging and reforestation, but does not include any production activity on logs after transportation to a mill-pond or mill yard; (opérations forestières)

    mineral resource

    mineral resource means

    • (a) a base or precious metal deposit,

    • (b) a coal deposit, or

    • (c) a mineral deposit in respect of which

      • (i) the Minister of Natural Resources has certified that the principal mineral extracted is an industrial mineral contained in a non-bedded deposit,

      • (ii) the principal mineral extracted is sylvite, halite or gypsum, or

      • (iii) the principal mineral extracted is silica that is extracted from sandstone or quartzite; (ressource minérale)

    mining

    mining means the extracting of minerals from a mineral resource, the processing of ore, other than iron ore, from a mineral resource to the prime metal stage or its equivalent, the processing of iron ore from a mineral resource to the pellet stage or its equivalent and the restoration of strip-mined land to a usable condition, but does not include activities related to the exploration for or development of a mineral resource; (opérations minières)

    qualified

    qualified, in respect of a farmer, fisherman, hunter, trapper or other person, means a farmer, fisherman, hunter, trapper or person who holds a sales tax bulk permit issued under regulations made pursuant to subsection (10); (admissible)

    registered vendor

    registered vendor means a person who is registered under regulations made pursuant to subsection (10). (vendeur enregistré)

  • Marginal note:Fuel tax rebate to vendor

    (2) Where gasoline or diesel fuel has been sold by a licensed manufacturer or licensed wholesaler to

    • (a) [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]

    • (b) a qualified fisherman for commercial fishing,

    • (c) a qualified hunter for commercial hunting,

    • (d) a qualified trapper for commercial trapping,

    • (e) a qualified person for use in logging, or

    • (f) a qualified person for use in mining,

    for the sole use of the purchaser and not for resale and the taxes imposed by Parts III and VI are payable in respect of the sale, the manufacturer or wholesaler may, in such circumstances and on such terms and conditions as the Minister may prescribe, deduct, within two years after the sale, a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) from the amount of any payment of any tax, penalty, interest or other sum that the manufacturer or wholesaler is liable or is about to become liable to make under those Parts or under this Part in respect of taxes under those Parts.

  • Marginal note:Fuel tax rebate to vendor selling to farmer

    (2.1) Where gasoline or diesel fuel has been sold by a licensed manufacturer or licensed wholesaler to a qualified farmer for farming purposes, for the sole use of the qualified farmer and not for resale and the tax imposed by Parts III and VI is payable in respect of the sale, the manufacturer or wholesaler may, in such circumstances and on such terms and conditions as the Minister may prescribe, deduct, within two years after the sale, a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) from the amount of any payment of any tax, penalty, interest or other sum that the manufacturer or wholesaler is liable or is about to become liable to make under those Parts or under this Part in respect of tax under those Parts.

  • Marginal note:Condition

    (3) No deduction shall be made by a licensed manufacturer or licensed wholesaler under subsection (2) or (2.1) unless the manufacturer or wholesaler has reduced the amount charged for the gasoline or diesel fuel to the purchaser by an amount equal to the amount of the deduction and the amount of the reduction is shown separately on an invoice for the sale given to the purchaser by the manufacturer or wholesaler.

  • Marginal note:Fuel tax rebate to registered vendor

    (4) Where gasoline or diesel fuel has been sold in bulk by a registered vendor to

    • (a) [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]

    • (b) a qualified fisherman for commercial fishing,

    • (c) a qualified hunter for commercial hunting,

    • (d) a qualified trapper for commercial trapping,

    • (e) a qualified person for use in logging, or

    • (f) a qualified person for use in mining,

    for the sole use of the purchaser and not for resale and the taxes imposed by Parts III and VI have been paid or are payable in respect of the gasoline or fuel, a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) shall, subject to this Part, be paid to that registered vendor if he applies therefor within two years after he sold the gasoline or fuel.

  • Marginal note:Fuel tax rebate to registered vendor selling to farmer

    (4.1) Where gasoline or diesel fuel has been sold in bulk by a registered vendor to a qualified farmer for farming purposes, for the sole use of the qualified farmer and not for resale and the tax imposed by Parts III and VI has been paid or is payable in respect of the gasoline or fuel, a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) shall, subject to this Part, be paid to that registered vendor if he applies therefor within two years after the sale of the gasoline or fuel.

  • Marginal note:Condition

    (5) No fuel tax rebate shall be paid to a registered vendor under subsection (4) or (4.1) unless the registered vendor has reduced the amount charged for the gasoline or diesel fuel to the purchaser by an amount equal to the amount of the fuel tax rebate applied for and the amount of the reduction is shown separately on an invoice for the sale given to the purchaser by the registered vendor.

  • Marginal note:Fuel tax rebate to purchaser or importer

    (6) Where gasoline or diesel fuel has been sold to or imported by

    • (a) [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]

    • (b) a fisherman for commercial fishing,

    • (c) a hunter for commercial hunting,

    • (d) a trapper for commercial trapping,

    • (e) a person for use in logging, or

    • (f) a person for use in mining,

    for the sole use of the purchaser or importer and not for resale and the taxes imposed by Parts III and VI have been paid or are payable in respect of the gasoline or fuel and, in the case of a sale, the amount charged therefor has not been reduced in accordance with subsection (3) or (5), a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) shall, subject to this Part, be paid to that purchaser or importer if he applies therefor within two years after he purchased or imported the gasoline or fuel.

  • Marginal note:Fuel tax rebate to farmer

    (6.1) Where gasoline or diesel fuel has been sold to or imported by a farmer for farming purposes, for the sole use of the farmer for farming purposes and not for resale and the tax imposed by Parts III and VI has been paid or is payable in respect of the gasoline or fuel and, in the case of a sale, the amount charged therefor has not been reduced in accordance with subsection (3) or (5), a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) shall, subject to this Part, be paid to that farmer if he applies therefor within two years after the purchase or importation of the gasoline or fuel.

  • Marginal note:Limitation

    (7) Subsections (2), (2.1), (4), (4.1), (6) and (6.1) do not apply in respect of gasoline or diesel fuel

    • (a) that is to be used to propel a vehicle on a public highway;

    • (b) that is to be used other than for a commercial purpose; or

    • (c) that is sold or imported

      • (i) on or after January 1, 1990, in respect of the tax imposed by Part III, or

      • (ii) on or after January 1, 1991, in respect of the tax imposed by Part VI.

  • Marginal note:Amount of fuel tax rebate: Part VI

    (8) For the purposes of subsections (2), (4) and (6), the amount of the fuel tax rebate in respect of the tax imposed by Part VI shall be calculated at such rate, not exceeding five cents, per litre of gasoline or diesel fuel sold or imported as the Governor in Council may, on the recommendation of the Minister of Finance, prescribe by order or, if no rate is so prescribed, at the rate of three cents per litre of gasoline or diesel fuel sold or imported.

  • Marginal note:Amount of fuel tax rebate: Part III

    (8.01) For the purposes of subsections (2), (4) and (6), the amount of the fuel tax rebate in respect of the tax imposed by Part III shall be calculated

    • (a) in the case of gasoline, at the rate of

      • (i) one cent per litre, where the gasoline was sold or imported on or after January 1, 1988 and before April 1, 1988, and

      • (ii) two cents per litre, where the gasoline was sold or imported on or after April 1, 1988 and before January 1, 1990; and

    • (b) in the case of diesel fuel, at the rate of one cent per litre, where the diesel fuel was sold or imported on or after January 1, 1988 and before January 1, 1990.

  • Marginal note:Farmers’ rate: Part VI

    (8.1) For the purposes of subsections (2.1), (4.1) and (6.1), the amount of the fuel tax rebate in respect of the tax imposed by Part VI shall be calculated at such rate, not exceeding five cents, per litre of gasoline or diesel fuel sold or imported as the Governor in Council may, on the recommendation of the Minister of Finance, prescribe by order or, if no rate is so prescribed, at the rate of three and one-half cents per litre of gasoline or diesel fuel sold or imported.

  • Marginal note:Farmers’ rate: Part III

    (8.2) For the purposes of subsections (2.1), (4.1) and (6.1), the amount of the fuel tax rebate in respect of the tax imposed by Part III shall be calculated

    • (a) in the case of gasoline, at the rate of

      • (i) three cents per litre, where the gasoline was sold or imported on or after January 1, 1987 and before January 1, 1988,

      • (ii) four cents per litre, where the gasoline was sold or imported on or after January 1, 1988 and before April 1, 1988, and

      • (iii) five cents per litre, where the gasoline was sold or imported on or after April 1, 1988 and before January 1, 1990; and

    • (b) in the case of diesel fuel, at the rate of

      • (i) three cents per litre, where the diesel fuel was sold or imported on or after January 1, 1987 and before January 1, 1988, and

      • (ii) four cents per litre, where the diesel fuel was sold or imported on or after January 1, 1988 and before January 1, 1990.

  • Marginal note:Diversion

    (9) Where the amount charged for gasoline or diesel fuel to a purchaser is reduced in accordance with subsection (3) or (5) or a payment is made under subsection (6) or (6.1) to a purchaser or importer of gasoline or diesel fuel and that person sells the gasoline or fuel or uses it for a purpose for which the reduction or payment could not, at the time of the purchase or importation, have been made, the amount of the reduction or payment shall be deemed to be a tax under this Act payable by that person,

    • (a) where that person sells the gasoline or fuel, at the time of delivery thereof to the purchaser from him; and

    • (b) where that person uses the gasoline or fuel, at the time of the use.

  • Marginal note:Regulations

    (10) The Governor in Council may make regulations

    • (a) authorizing the issue of sales tax bulk permits to farmers, fishermen, hunters, trappers or other persons who use gasoline or diesel fuel for a purpose described in subsection (2) or (2.1) and prescribing the terms and conditions of the permits;

    • (b) prescribing the records to be maintained and returns to be filed by farmers, fishermen, hunters, trappers or other persons holding sales tax bulk permits;

    • (c) prescribing the times at which returns referred to in paragraph (b) are to be filed;

    • (d) authorizing the cancellation of any sales tax bulk permit where any term or condition of that permit is not complied with or where any provision of this Act or the regulations applicable to the person holding the permit is not complied with; and

    • (e) providing for a system of registration by the Minister of persons who regularly sell in bulk gasoline or diesel fuel to qualified farmers, qualified fishermen, qualified hunters, qualified trappers or qualified persons engaged in logging or mining, including, without limiting the generality of the foregoing,

      • (i) the form and manner of applying for, and the procedure for granting, registration,

      • (ii) the terms and conditions on which registration may be granted, and

      • (iii) the authorization of the Minister to cancel any registration where any term or condition of the registration is not complied with or where any provision of this Act or the regulations applicable to the registered vendor is not complied with.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 69
  • R.S., 1985, c. 7 (2nd Supp.), ss. 24, 34, c. 42 (2nd Supp.), s. 9, c. 42 (3rd Supp.), s. 1, c. 12 (4th Supp.), s. 28
  • 1989, c. 22, s. 4
  • 1994, c. 41, s. 37
 
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