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

Full Document:  

Act current to 2022-11-16 and last amended on 2022-10-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VIRebates (continued)

 [Repealed, 2017, c. 20, s. 37]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 107
  • 1997, c. 10, s. 59
  • 2000, c. 30, s. 68
  • 2007, c. 18, s. 34(F), c. 29, s. 47
  • 2017, c. 20, s. 37

Marginal note:Restriction

 A rebate shall not be paid under section 252 to a person unless

  • (a) the person files an application for the rebate within one year after

    • (i) in the case of a rebate under subsection 252(1), the day the person exports the property to which the rebate relates, and

    • (ii) in the case of a rebate under subsection 252(2), the day the tax to which the rebate relates became payable;

    • (iii) [Repealed, 2017, c. 20, s. 38]

  • (b) and (c) [Repealed, 2000, c. 30, s. 69]

  • (d) at the time the application is made, the person is non-resident;

  • (d.1) in the case of a rebate under subsection 252(1), the rebate is substantiated by a receipt for an amount that includes consideration, totalling at least $50, for taxable supplies (other than zero-rated supplies) in respect of which the person is otherwise eligible for a rebate under that subsection; and

  • (e) the total of all amounts, each of which is consideration for a taxable supply (other than a zero-rated supply) in respect of which the rebate application is made, is at least $200.

  • (f) [Repealed, 2007, c. 29, s. 48]

  • (g) [Repealed, 2017, c. 20, s. 38]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 107
  • 1997, c. 10, s. 60
  • 2000, c. 30, s. 69
  • 2007, c. 18, s. 35(F), c. 29, s. 48
  • 2017, c. 20, s. 38

Marginal note:Rebate for non-resident exhibitors

 Where a non-resident person who is not registered under Subdivision D of Division V is the recipient of a supply by way of lease, licence or similar arrangement of real property that is acquired by the person exclusively for use as a site for the promotion, at a convention, of property or services supplied by, or a business of, the person, the Minister shall, on the application of the person filed within one year after the day the convention ends, pay to the person

  • (a) a rebate equal to the tax paid by the person in respect of that supply; and

  • (b) a rebate equal to the tax paid by the person in respect of a supply to the person of related convention supplies in respect of the convention.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 107

Marginal note:Definitions

  •  (0.1) The following definitions apply in this section.

    camping accommodation

    camping accommodation means a campsite at a recreational trailer park or campground (other than a campsite included in the definition short-term accommodation in subsection 123(1) or included in that part of a tour package that is not the taxable portion, as defined in subsection 163(3), of the tour package) that is supplied by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the campsite is less than one month. It includes water, electricity and waste disposal services, or the right to their use, if they are accessed by means of an outlet or hook-up at the campsite and are supplied with the campsite. (emplacement de camping)

    tour package

    tour package has the same meaning as in subsection 163(3), but does not include a tour package that includes a convention facility or related convention supplies. (voyage organisé)

  • Marginal note:Rebate in respect of foreign convention

    (1) Where a sponsor of a foreign convention pays tax in respect of

    • (a) a supply of property or services relating to the convention made by a registrant who is the organizer of the convention,

    • (b) a supply, made by a registrant who is not the organizer of the convention, of property or services that are acquired for consumption, use or supply by the sponsor as related convention supplies or of the convention facility, or

    • (c) property that is imported or brought into a participating province by the sponsor, or an imported taxable supply (as defined in section 217) of property or services that are acquired by the sponsor, for consumption, use or supply by the sponsor as related convention supplies,

    the Minister shall, subject to subsection (2) and on the application of the sponsor filed within one year after the day the convention ends, pay a rebate to the sponsor equal to

    • (d) in the case of a supply made by the organizer, the total of

      • (i) the tax paid by the sponsor calculated on that part of the consideration for the supply that is reasonably attributable to the convention facility or related convention supplies other than property or services that are food or beverages or are supplied under a contract for catering, and

      • (ii) 50% of the tax paid by the sponsor calculated on that part of the consideration for the supply that is reasonably attributable to related convention supplies that are food or beverages or are supplied under a contract for catering, and

    • (e) in any other case,

      • (i) if the property or service is food or beverages or is supplied under a contract for catering, 50% of the tax paid by the sponsor in respect of the supply or importation of the property or service, or the bringing into a participating province of the property, and

      • (ii) in any other case, the tax paid by the sponsor in respect of the supply or importation of the property or service, or the bringing into a participating province of the property.

  • Marginal note:Rebate paid by organizer

    (2) Where a registrant who is the organizer of a foreign convention pays to, or credits in favour of, the sponsor of the convention an amount on account of a rebate under subsection (1) to which the sponsor would be entitled in respect of a supply made by the registrant to the sponsor if the sponsor had paid the tax in respect of the supply and had applied for the rebate in accordance with that subsection, the registrant may claim a deduction under subsection 234(2) in respect of the amount paid or credited, and the sponsor is not entitled to any rebate, refund or remission in respect of the tax to which the amount relates.

  • Marginal note:Rebate to organizer

    (3) If an organizer of a foreign convention who is not registered under Subdivision D of Division V pays tax in respect of a supply of the convention facility or a supply, importation or bringing into a participating province of related convention supplies, the Minister shall, on the application of the organizer filed within one year after the convention ends, pay a rebate to the organizer equal to the total of

    • (a) the tax paid by the organizer calculated on that part of the consideration for the supply or on that part of the value of property that is reasonably attributable to the convention facility or related convention supplies other than property or services that are food or beverages or are supplied under a contract for catering, and

    • (b) 50% of the tax paid by the organizer calculated on that part of the consideration for the supply or on that part of the value of property that is reasonably attributable to related convention supplies that are food or beverages or are supplied under a contract for catering.

  • Marginal note:Rebate paid by supplier

    (4) Where

    • (a) a person who is

      • (i) the organizer of a foreign convention and who is not registered under Subdivision D of Division V, or

      • (ii) the sponsor of a foreign convention

      is the recipient of

      • (iii) a taxable supply of the convention facility, or related convention supplies, made by the operator of the facility who is not the organizer of the convention, or

      • (iv) a taxable supply, made by a registrant other than the organizer of the convention, of short-term accommodation or camping accommodation that is acquired by the person exclusively for supply in connection with the convention, and

    • (b) the operator of the facility or supplier of accommodation pays to, or credits in favour of, the person an amount on account of a rebate to which the person would be entitled under subsection (1) or (3) in respect of the supply of the facility or accommodation, as the case may be, if the person had paid the tax in respect of the supply and had applied for the rebate in accordance with that subsection,

    the operator or supplier of accommodation, as the case may be, may claim a deduction under subsection 234(2) in respect of the amount paid or credited, and the person is not entitled to any rebate, refund or remission in respect of the tax to which the amount relates.

  • Marginal note:Filing of information

    (5) If, in accordance with subsection (2) or (4), a registrant

    • (a) pays to, or credits in favour of, a person an amount on account of a rebate, and

    • (b) in determining the registrant’s net tax for a reporting period, claims a deduction under subsection 234(2) in respect of the amount paid or credited,

    the registrant shall file with the Minister prescribed information in respect of the amount in prescribed form and in prescribed manner on or before the day on or before which the registrant’s return under Division V for the reporting period in which the amount is deducted is required to be filed.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 107
  • 1997, c. 10, s. 219
  • 2000, c. 30, s. 70
  • 2007, c. 18, s. 36(F), c. 29, s. 49
  • 2017, c. 20, s. 39

Marginal note:Non-resident rebate respecting installation services

  •  (1) Where tangible personal property is supplied on an installed basis by a non-resident supplier who is not registered under Subdivision D of Division V to a particular person who is so registered and the supplier or another non-resident person who is not so registered is the recipient of a taxable supply in Canada of a service of installing, in real property located in Canada, the tangible personal property so that it can be used by the particular person,

    • (a) the Minister shall, on the application of the non-resident recipient of the service filed within one year after the completion of the service, pay a rebate to the non-resident recipient equal to the tax paid by the non-resident recipient in respect of the supply of the service to the non-resident recipient; and

    • (b) the particular person is deemed, for the purposes of this Part, to have received from the non-resident supplier of the tangible personal property a taxable supply of the service that is separate from and not incidental to the supply of the property and is for consideration equal to that part of the total consideration paid or payable by the particular person for the property and the installation of the property that can reasonably be attributed to the installation.

  • Marginal note:Application to supplier

    (2) Where a non-resident person submits to a supplier an application for a rebate under subsection (1) to which the non-resident person would be entitled in respect of a supply made by the supplier to the non-resident person if the non-resident person had paid the tax in respect of the supply and had applied for the rebate in accordance with that subsection, the supplier may pay to, or credit in favour of, the non-resident person the amount of the rebate in which event the supplier shall transmit the application to the Minister with the supplier’s return filed under Division V for the reporting period in which the rebate is paid or credited and interest under subsection 297(4) is not payable in respect of the rebate.

  • Marginal note:Joint and several liability

    (3) If, under subsection (2), a supplier pays to, or credits in favour of, a person an amount on account of a rebate and the supplier knows or ought to know that the person is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the person is entitled, the supplier and the person are jointly and severally, or solidarily, liable to pay to the Receiver General under section 264 the amount that was paid or credited on account of the rebate or the excess amount, as the case may be.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 61
  • 2017, c. 33, s. 135(E)

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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