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Excise Tax Act

Version of section 68.5 from 2007-04-01 to 2022-07-25:


Marginal note:Definitions

  •  (1) The definitions in this subsection apply in this section.

    eligible ship

    eligible ship means a ship that is a tug, ferry or passenger ship engaged in trade on an inland voyage and that

    • (a) is not proceeding outside Canada other than to

      • (i) a part that lies within the United States of any lake or river a part of which is included in the inland waters of Canada, or

      • (ii) Lake Michigan; and

    • (b) is not engaged in international trade. (navire admissible)

    inland voyage

    inland voyage means a voyage (other than a minor waters voyage)

    • (a) on the inland waters of Canada, together with those parts that lie within the United States of any lake or river included in the inland waters of Canada; or

    • (b) on Lake Michigan. (voyage en eaux internes)

    inland waters of Canada

    inland waters of Canada means all the rivers, lakes and other navigable fresh waters within Canada, and includes the St. Lawrence River as far seaward as a straight line drawn

    • (a) from Cap des Rosiers to West Point Anticosti Island; and

    • (b) from Anticosti Island to the north shore of the St. Lawrence River along the meridian of longitude sixty-three degrees west. (eaux internes du Canada)

    minor waters of Canada

    minor waters of Canada means all inland waters of Canada (other than Lake Ontario, Lake Erie, Lake Huron including Georgian Bay, Lake Superior and the St. Lawrence River east of a line drawn from Father Point to Point Orient) and includes all bays, inlets and harbours of or on those lakes or Georgian Bay. (eaux secondaires du Canada)

    minor waters voyage

    minor waters voyage means a voyage within the minor waters of Canada together with those parts that lie within the United States of any lake or river included in the minor waters of Canada. (voyage en eaux secondaires)

    rebate period

    rebate period means the period

    • (a) that begins on June 1, 2002 and that ends on December 31, 2002;

    • (b) that begins on January 1, 2003 and that ends on December 31, 2003; or

    • (c) that begins on January 1, 2004 and that ends on December 31, 2004. (période de remise)

  • Marginal note:Rebate in respect of fuel for eligible ship

    (2) If a person purchases or intends to purchase fuel that is, or is to be, used by the person to operate or maintain an eligible ship during a rebate period, subject to this Part, the Minister shall, on application by the person, pay to the person a rebate for the period determined in accordance with subsection (3).

  • Marginal note:Determination of rebate

    (3) The amount of the rebate payable to a person under subsection (2) for a rebate period is equal to

    • (a) if the amount applied for is based on an estimate, acceptable to the Minister and made within any period specified by the Minister, of the quantity of fuel that is, or is to be, purchased after May 2002 by the person and is, or is to be, used by the person to operate or maintain an eligible ship during the rebate period, the total amount of tax under Part III that would be imposed on that fuel; or

    • (b) in any other case, the total amount of tax under Part III imposed on fuel that is purchased by the person after May 2002 and is used by the person to operate or maintain an eligible ship during the rebate period.

  • Marginal note:One application per period

    (4) A person shall not file more than one application (other than an application referred to in paragraph (8)(b)) under this section for any rebate period.

  • Marginal note:Reconciliation report

    (5) If a person is paid a rebate for a rebate period based on an estimate referred to in paragraph (3)(a), the person shall, not later than 60 days after the end of the period, file with the Minister in prescribed manner a reconciliation report in prescribed form that indicates

    • (a) the amount of the rebate paid to the person; and

    • (b) the amount of tax under Part III imposed on the fuel purchased by the person after May 2002 and used by the person to operate or maintain an eligible ship during the rebate period.

  • Marginal note:Extension for filing

    (6) The Minister may at any time, in writing, extend the time required by subsection (5) for filing a reconciliation report.

  • Marginal note:Effect of extension for filing

    (7) If the Minister has, under subsection (6), extended the time required by subsection (5) for filing a reconciliation report

    • (a) the report shall be filed within the time so extended; and

    • (b) any amount of excess rebate that is required to be paid within the time otherwise required by subsection (9) shall be paid within the time so extended.

    • (c) [Repealed, 2003, c. 15, s. 97]

  • Marginal note:Additional amount payable to rebate recipient

    (8) If a person files a reconciliation report for a rebate period and the amount referred to in paragraph (5)(b) exceeds the amount referred to in paragraph (5)(a) in respect of the period,

    • (a) the Minister shall pay to the person an amount equal to that excess amount; and

    • (b) the filing of the reconciliation report is deemed to be an application to the Minister for payment of that excess amount.

  • Marginal note:Liability for excess rebate and interest up to due date of reconciliation

    (9) If the rebate paid to a person for a rebate period is determined on the basis of an estimate referred to in paragraph (3)(a) and the amount paid exceeds the amount referred to in paragraph (5)(b) in respect of the period, the person shall pay to the Receiver General

    • (a) on or before the day on or before which the reconciliation report for the rebate period is required to be filed, an amount (in this section referred to as the “excess rebate”) equal to that excess amount; and

    • (b) interest at the prescribed rate in respect of the excess rebate for the period beginning on the first day after the day on which the rebate is paid to the person and ending on the earlier of the day on which the excess rebate is paid to the Receiver General and the day on or before which the reconciliation report is required to be filed.

  • Marginal note:Failure to file a report when required

    (9.1) Every person who fails to file a reconciliation report for a period as and when required under this section shall pay a penalty equal to the sum of

    • (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the period and was not paid before April 1, 2007, and

    • (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from that day to the day on which the report is filed.

  • Marginal note:Deemed tax liability

    (10) The portion of the total of the excess rebate payable by a person in respect of a rebate period, and of the interest payable by the person under paragraph (9)(b), that is outstanding at the end of the day on or before which the reconciliation report for the period is required to be filed is deemed to be an amount of tax payable under this Act that is required to be, and that has not been, paid by the person on or before that day.

  • (11) to (13) [Repealed, 2003, c. 15, s. 97]

  • Marginal note:Restriction

    (14) The Minister shall not, at a particular time, pay an amount to a person under this section unless the person has

    • (a) filed with the Minister all reconciliation reports for rebate periods ending before that time for which a rebate was paid to the person that was based on an estimate referred to in paragraph (3)(a); and

    • (b) paid all excess rebates in respect of rebate periods ending before that time and any interest that has accrued to that time.

  • Marginal note:Limitation period

    (15) An application may not be made under subsection (2) after December 31, 2006.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2002, c. 22, s. 428
  • 2003, c. 15, s. 97
  • 2006, c. 4, s. 125
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