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

Full Document:  

Act current to 2021-11-17 and last amended on 2021-07-01. Previous Versions

PART VIIGeneral (continued)

Deductions, Refunds and Drawbacks (continued)

Marginal note:Payment to end-users — specially equipped van

  •  (1) If tax under this Act has been paid in respect of a van to which section 6 of Schedule I applies, the Minister may pay an amount equal to the amount of the tax paid at the rate set out in that section

    • (a) if the van was manufactured or produced in Canada, to a person who is the first final consumer of the van if, at the time of the acquisition of the van by the person or within six months after that time, the van has been equipped with a device designed exclusively to assist in placing a wheelchair in the van without having to collapse the wheelchair; or

    • (b) if the van was imported, to a person who is the first final consumer of the van after the importation if, at the time of importation, the van was equipped with a device designed exclusively to assist in placing a wheelchair in the van without having to collapse the wheelchair.

  • Marginal note:Timing of application

    (2) No payment in respect of a van shall be made under this section unless the person to whom the payment can be made applies for it within two years after the person acquires the van.

  • Marginal note:Deemed tax payable

    (3) If, under this section, the Minister pays an amount to a person to which that person is not entitled, or pays an amount to a person in excess of the amount to which that person is entitled, the amount of the payment or the excess is deemed to be a tax payable by that person under this Act on the day on which the Minister made the payment.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2007, c. 29, s. 43

Marginal note:Payment where goods exported

  •  (1) Where tax under this Act has been paid in respect of any goods and a person has, in accordance with regulations made by the Minister, exported the goods from Canada, an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if that person applies therefor within two years after the export of the goods.

  • (2) [Repealed, 2002, c. 22, s. 377, as amended by 2003, c. 15, s. 66]

  • Marginal note:Exception

    (3) For greater certainty, no amount is payable to a person under subsection (1) in respect of tax paid on gasoline or diesel fuel transported out of Canada in the fuel tank of the vehicle that is used for that transportation.

  • [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. 25, s. 60
  • 1995, c. 46, s. 3
  • 2000, c. 30, s. 12
  • 2002, c. 22, s. 377
  • 2003, c. 15, ss. 63, 66

Marginal note:Payment where adjustment

 Where tax under Part II has been remitted by a licensed air carrier and the carrier has, in accordance with subsection 18(1), made an adjustment or refund in respect of the tax, an amount equal to the amount of that adjustment or refund shall, subject to this Part, be paid to that carrier if it applies therefor within two years after the adjustment or refund.

  • [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

Marginal note:Payment where adjustment

 Where tax under Part II.1 has been paid by a licensee in respect of any taxable service and the licensee has made an adjustment or refund of the amount charged because of an error or because the service was not provided, or was only partially provided, by the licensee, an amount equal to the proportion of the amount of that tax that the amount of the adjustment or refund is of the amount charged shall, subject to this Part, be paid to the licensee if he applies therefor within two years after the adjustment or refund.

  • [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

Marginal note:Payment where licence subsequently issued

 Where tax under Part II.1 has been paid by a licensee in respect of any taxable service and the person, in this section referred to as the “purchaser”, acquiring the service from the licensee

  • (a) was required at the time the amount charged to the purchaser for the service was paid or payable, whichever is the earlier, to apply for a licence under that Part and was thereafter issued such a licence, and

  • (b) provided the service, at a time when the purchaser was required to apply for a licence under that Part or held such a licence, to another person for an amount charged that was paid or payable, whichever is the earlier, at that time,

an amount equal to the proportion of the amount of that tax that the amount of the taxable sales of the service by the purchaser is of the amount of the total sales of the service by the purchaser shall, subject to this Part, be paid to the purchaser if he applies therefor within two years after the later of the time the service was provided by the purchaser and the time the licence was issued to the purchaser.

  • [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

Marginal note:Payment where use by province

  •  (1) Where tax under Part II.1 has been paid by a licensee in respect of any taxable service and Her Majesty in right of a province has acquired the service for any purpose other than

    • (a) provision to another person for an amount charged,

    • (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, for any commercial or mercantile purposes,

    an amount equal to the amount of that tax shall, subject to this Part, be paid either to that licensee or to Her Majesty in that right, as the case may require, if the licensee or Her Majesty applies therefor within two years after Her Majesty acquired the service.

  • Marginal note:Exception

    (2) No amount shall be paid pursuant to subsection (1) to a licensee who provides a taxable service to Her Majesty in right of a province in respect of which there is in force at the time the service is provided 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

Marginal note:Definitions

  •  (1) In this section,

    arm’s length sale

    arm’s length sale means the provision of a taxable service for an amount charged by a licensee to a person with whom the licensee is dealing at arm’s length at the time the service is provided; (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 tax under Part II.1 has been paid, or tax under Part II.2 has been remitted, by a licensee in respect of an arm’s length sale occurring on or after February 16, 1984 and the licensee has established, in accordance with generally accepted accounting practices, that any debt owing to the licensee 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 aggregate of the amount charged for the taxable service and the amount of the tax shall, subject to this Part, be paid to that licensee if the licensee 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 licensee 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 licensee 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. 23
  • 1999, c. 31, ss. 230(F), 248(F)

Marginal note:Payment where adjustment

 Where tax under Part II.2 has been remitted by a licensee and the licensee has, in accordance with subsection 21.31(1), made an adjustment or refund in respect of the tax, an amount equal to the amount of that adjustment or refund shall, subject to this Part, be paid to that licensee if the licensee applies therefor within two years after he made the adjustment or refund.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 12 (4th Supp.), s. 24

Marginal note:Payment where licence subsequently issued

 Where tax under Part II.2 has been paid by a person in respect of any taxable service acquired by that person and that person

  • (a) was required, at the time the tax became payable, to apply for a licence under that Part and was thereafter issued such a licence, and

  • (b) at a time when that person was required to apply for a licence under that Part or held such a licence,

    • (i) provided the service to another person for an amount charged that was paid or payable, whichever is the earlier, at that time, or

    • (ii) used the service directly in providing another taxable service, other than a paging service, to another person,

an amount equal to the proportion of the amount of that tax that the uses referred to in paragraph (b) of the taxable service are of the total use of that taxable service by that person shall, subject to this Part, be paid to that person if he applies therefor within two years after the later of the time the service was so provided or used by that person and the time the licence was issued to that person.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 12 (4th Supp.), s. 24

Marginal note:Payment where resale

 Where tax under Part II.2 has been paid in respect of any taxable service by a person who was not a telecommunications carrier at the time the tax became payable and that person has provided the service for an amount charged to another person who acquired the service for a use described in subsection 21.28(1) or (2) and held a licence under that Part or Part II.1 at the time of that acquisition, an amount equal to the proportion of the amount of that tax that the provision of that service to that other person is of the total use of that service by that person shall, subject to this Part, be paid to that person if he applies therefor within two years after he provided the service to that other person.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 12 (4th Supp.), s. 24

Marginal note:Payment where certain uses of gasoline

  •  (1) Where tax under Part III has been paid in respect of any gasoline and the gasoline has been purchased by

    • (a) Her Majesty in right of Canada or a province or any agent of Her Majesty in right of Canada or a province, before 1991,

    • (b) a municipality, before 1991,

    • (c) a person for commercial or business purposes, before 1991,

    • (d) a farmer for farming purposes, before 1991,

    • (e) a fisherman, hunter or trapper for commercial fishing, hunting or trapping, before 1991,

    • (f) a person under conditions for which relief from the consumption or sales tax is provided by any provision of this Act, other than subsection 50(5), before 1991,

    • (g) a person of such other class of persons as the Governor in Council may by regulation prescribe, before 1991,

    • (g.1) a registered charity, within the meaning of the Income Tax Act,

    • (g.2) a registered Canadian amateur athletic association, within the meaning of the Income Tax Act, or

    • (g.3) a person who has been certified by a qualified medical practitioner to be suffering from a permanent impairment of locomotion to such an extent that the use of public transportation by that person would be hazardous,

    for the sole use of the purchaser and not for resale, an amount equal to that portion of the tax equal to one and one-half cents per litre shall, subject to this Part, be paid

    • (h) to the purchaser, or

    • (i) in accordance with such terms and conditions as the Governor in Council may by regulation prescribe, to the manufacturer, producer, wholesaler, jobber or other dealer,

    if the purchaser applies therefor within two years after he purchased the gasoline.

  • Marginal note:Payment where certain uses of aviation gasoline

    (2) Where tax under Part III has been paid in respect of any aviation gasoline and the aviation gasoline has been purchased before 1991 by a person

    • (a) providing public air transportation of passengers, freight or mail,

    • (b) providing air services directly related to

      • (i) the exploration and development of natural resources,

      • (ii) aerial spraying, seeding and pest control,

      • (iii) forestry,

      • (iv) fish cultivation,

      • (v) aerial construction operations using rotating wing aircraft,

      • (vi) aerial fire control, fire protection and fire fighting, or

      • (vii) map making operations, or

    • (c) engaged in the business of testing aircraft engines,

    for the sole use of the purchaser to provide a service mentioned in paragraph (a) or (b) or to test aircraft engines, as the case may be, and not for resale or any other use, an amount equal to that portion of the tax equal to one and one-half cents per litre shall, subject to this Part, be paid

    • (d) to the purchaser, or

    • (e) in accordance with such terms and conditions as the Governor in Council may by regulation prescribe, to the manufacturer, producer, wholesaler, jobber or other dealer,

    if the purchaser applies therefor within two years after he purchased the aviation gasoline.

  • Marginal note:Presumption

    (3) Any payment made to a person referred to in paragraph (1)(i) or (2)(e) shall, for the purposes of subsection (4), paragraph 97.1(1)(b) and sections 98 to 101, be deemed to have been made to the purchaser.

  • Marginal note:Recovery of payment

    (4) Where an amount has been paid pursuant to subsection (1) or (2) to a person who sells or uses the gasoline or aviation gasoline for a purpose that does not entitle its purchaser to that payment, the purchaser shall forthwith pay to Her Majesty an amount equal to the amount of the payment.

  • Marginal note:Commercial or business purposes

    (5) For the purposes of paragraph (1)(c), the expression “commercial or business purposes” shall have such meaning as the Governor in Council may determine by regulation.

  • Marginal note:To whom payment made

    (6) Where a person has purchased gasoline or aviation gasoline in respect of which tax under Part III has been paid and has recovered the cost of that gasoline or aviation gasoline, or any part thereof, from, in the case of gasoline, a person described in any of paragraphs (1)(a) to (g.3) or, in the case of aviation gasoline, a person described in any of paragraphs (2)(a) to (c), for the purpose of paying an amount pursuant to subsection (1) or (2), the Governor in Council may, by regulation, determine

    • (a) the manner in which the amount shall be calculated; and

    • (b) who, between the person who purchased the gasoline or aviation gasoline and the person from whom all or any part of the cost has been recovered, shall be deemed to be the purchaser of that gasoline or aviation gasoline.

  • [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
  • 1990, c. 45, s. 10
  • 1995, c. 36, s. 5
  • 1999, c. 31, s. 246(F)
  • 2014, c. 20, s. 83
 
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