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

Marginal note:Payment where use by hospital cleaning establishments

68.25 Where tax under Part VI has been paid in respect of any goods and the goods have been purchased for the sole purpose of constructing, equipping or operating an establishment

• (a) that is wholly owned, directly or indirectly, by or on behalf of one or more bona fide public hospitals each of which has been certified as such by the Department of Health, and

• (b) that is established for the sole purpose of providing laundry services, cleaning services or linen supply services to one or more hospitals described in paragraph (a),

an amount equal to the amount of that tax shall, subject to this Part, be paid to that establishment if it applies therefor within two years after the goods were purchased.

Marginal note:Payment where use by educational institutions

68.26 Where tax under Part VI has been paid in respect of any materials and the materials have been purchased by or on behalf of

• (a) a school, university or other similar educational institution for use exclusively in the construction of a building for that institution,

• (b) any organization for use exclusively in the construction of a building for that organization that is to be used exclusively or mainly as a public library operated by or on behalf of that organization on a non-commercial basis, or

• (c) a corporation wholly owned and controlled by Her Majesty in right of a province that is established for the sole purpose of providing residences for students of universities or other similar educational institutions, for use exclusively in the construction of those residences,

an amount equal to the amount of that tax shall, subject to this Part, be paid to that institution, organization or corporation if it applies therefor within two years after the materials were purchased.

Definition of incinerator goods

• 68.27 (1) In this section, incinerator goods means

  • (a) materials for use exclusively in the construction of, or

  • (b) machinery or apparatus, including equipment to be installed in a chimney or smoke stack, and repair and replacement parts therefor, for use directly and exclusively in the operation of

  an incinerator owned or to be owned by a municipality and used or to be used primarily for the incineration of waste for the municipality, but does not include motor vehicles, attachments therefor or office equipment.

• Marginal note:Payment where use in incinerators

  (2) Where tax under Part VI has been paid in respect of any incinerator goods and the goods have been purchased by or on behalf of a municipality for the sole use of the municipality and not for resale, an amount equal to the amount of that tax shall, subject to this Part, be paid to that municipality if it applies therefor within two years after that purchase of the goods.

Definition of qualified goods

• 68.28 (1) In this section, qualified goods means the goods mentioned in Part XIII of Schedule III, but does not include

  • (a) photocopiers or other office type reproduction equipment for use by persons whose principal business is not printing; and

  • (b) for greater certainty, goods that are expressly excluded or not included in that Part.

• Marginal note:Payment where use by small manufacturer

  (2) Where tax under Part VI has been paid in respect of any qualified goods and the goods have been purchased or imported by a person of a class prescribed pursuant to subsection (3) for the sole use of that person and not for resale, an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if he applies therefor within two years after that purchase or importation of the goods.

• Marginal note:Regulations

  (3) The Governor in Council may, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, make regulations prescribing any class of small manufacturer or producer for the purposes of this section.

Marginal note:Payment where tourist literature printed

68.29 Where tax under Part VI has been paid in respect of any printed matter that has been produced or purchased in Canada by a board of trade, chamber of commerce, municipal or automobile association or other similar organization, or by or on the order of a government, or a department, agency or representative of a government, and that is made available to the general public without charge for the promotion of tourism, an amount equal to the amount of that tax shall, subject to this Part, be paid to the organization, or to the government, department, agency or representative, if it applies therefor within two years after the printed matter was so produced or purchased.

Marginal note:Payment where motor fuel purchased by diplomats

• 68.3 (1) Where taxes under Parts III and VI have been paid in respect of gasoline or diesel fuel purchased by a diplomat for his personal or official use, an amount equal to the amount of the taxes shall, subject to this Part, be paid to the diplomat if the diplomat applies therefor within two years after the purchase of the gasoline or diesel fuel.

• Marginal note:Designation order

  (2) The Governor in Council, on the recommendation of the Minister of Foreign Affairs certifying that Canadian diplomats posted in a foreign country are granted relief from tax on gasoline or diesel fuel, may, by order, designate the foreign country for the purposes of this section.

• Definition of diplomat

  (3) In this section, diplomat means a person referred to in section 2 of Part II of Schedule III who represents a country designated by an order made under subsection (2).

Marginal note:Definitions

• 68.4 (1) In this section,

  air carrier

  air carrier in a calendar year, means a person who is a carrier in the year and whose gross revenue for the year is derived primarily from the business of providing eligible air transportation services; (transporteur aérien)

  aviation fuel

  aviation fuel does not include aviation gasoline; (carburant aviation)

  aviation rebate limit

  aviation rebate limit of a particular air carrier for a calendar year, means

  • (a) where at every time in the year no other air carrier is related to the particular air carrier, $20,000,000, and

  • (b) in any other case, the amount that the particular air carrier and all other persons (in this paragraph referred to as “related air carriers”) each of which is an air carrier in the year and is related to the particular air carrier at any time in the year allocate, in an agreement in prescribed form filed with the Minister with the application described in paragraph (3.1)(b), to the particular air carrier for the year, provided that

    • (i) if the total of the amounts so allocated for the year to the particular air carrier and all related air carriers is greater than $20,000,000, each amount so allocated is deemed to be nil, and

    • (ii) if the particular air carrier and all related air carriers fail to file an agreement under this paragraph for the year, the Minister may allocate an amount to one or more of them for the year, which amount or the total of which amounts shall not exceed $20,000,000, and any amount so allocated by the Minister is deemed to have been so allocated by the particular air carrier and all related air carriers in such an agreement; (plafond de la remise aux transporteurs aériens)

  carrier

  carrier in a calendar year means a person whose gross revenue for the year is derived primarily from the business of providing eligible transportation services and who is not exempt for any period in the year from taxation under Part I of the Income Tax Act by reason of section 149 of that Act; (transporteur)

  eligible air transportation services

  eligible air transportation services means the carriage by aircraft of passengers or goods or both; (service de transport aérien admissible)

  eligible transportation services

  eligible transportation services means the carriage of passengers or goods or both, by aircraft, boat, bus, truck or train, or a combination thereof; (service de transport admissible)

  fuel

  fuel means diesel fuel and aviation fuel in respect of which the tax under Part III has been paid and cannot be recovered under any other section of this Act; (combustible)

  fuel tax rebate

  fuel tax rebate means an amount payable under subsection (2), (3) or (3.1); (remise de taxe sur le combustible)

  gross revenue

  gross revenue for a calendar year of a person means

  • (a) where the person is a taxpayer within the meaning of the Income Tax Act, the gross revenue of the person under that Act for all taxation years of the person ending in the year, and

  • (b) in any other case, the amount that, for the purposes of that Act, would be the gross revenue of the person for all taxation years of the person ending in the year if the person were a corporation; (revenu brut)

  ineligible use

  ineligible use means any use other than the provision of eligible transportation services for commercial purposes or, where a rebate is paid under subsection (3.1), any use other than the provision of eligible air transportation services for commercial purposes, and for greater certainty the sale of fuel is an ineligible use; (fin inadmissible)

  taxation year

  taxation year of a person means

  • (a) where the person is a taxpayer within the meaning of the Income Tax Act, the taxation year of the person for the purposes of that Act, and

  • (b) in any other case, the period that would be the taxation year of the person for the purposes of that Act if the person were a corporation; (année d’imposition)

  trucker

  trucker in a calendar year means a person whose gross revenue for the year is derived primarily from the business of providing carriage of goods by truck and who is not exempt for any period in the year from taxation under Part I of the Income Tax Act by reason of section 149 of that Act. (camionneur)

• Marginal note:Deemed not related

  (1.1) For the purposes of this section, a corporation that is a Canadian-controlled private corporation within the meaning of subsection 125(7) of the Income Tax Act and another corporation to which it would otherwise be related at any time are deemed not to be related to each other at that time where the corporations are not associated with each other at that time within the meaning of subsection 127(1).

• Marginal note:Fuel tax rebate for carriers

  (2) Where a person who is a carrier in a calendar year

  • (a) has, in the year, purchased in Canada or imported fuel for use by the carrier solely in the provision of eligible transportation services,

  • (b) applies before July 1993 to the Minister in prescribed form containing prescribed information for a fuel tax rebate in respect of that fuel, and

  • (c) has not applied under subsection (3) for a fuel tax rebate in respect of any fuel purchased or imported in the year,

  a fuel tax rebate equal to three cents for each litre of the fuel shall, subject to this Part, be paid to the carrier.

• Marginal note:Alternative rebate for truckers

  (3) Where a person who is a trucker in a calendar year

  • (a) has, in the year, purchased in Canada or imported fuel for use by the trucker solely in the provision of eligible transportation services,

  • (b) applies before July 1993 to the Minister in prescribed form containing prescribed information for a fuel tax rebate in respect of that fuel, and

  • (c) has not applied under subsection (2) for a fuel tax rebate in respect of any fuel purchased or imported in the year,

  a fuel tax rebate equal to the lesser of an amount equal to one and one-half cents for each litre of the fuel and $500 shall be paid to the trucker.

• Marginal note:Aviation rebate

  (3.1) Where a person who is an air carrier in a calendar year

  • (a) has, in the year, purchased in Canada or imported aviation fuel for use by the person solely in the provision of eligible air transportation services, and

  • (b) applies to the Minister, before the end of the sixth month following the end of the year in prescribed form for a fuel tax rebate in respect of that fuel,

  the Minister shall, subject to this Part, pay a fuel tax rebate to the person equal to the lesser of four cents for each litre of that fuel and the person’s aviation rebate limit for the year.

• Marginal note:Limitation on rebates

  (4) No fuel tax rebate shall be paid under this section

  • (a) in respect of fuel used or to be used for an ineligible use;

  • (b) where subsection (2) or (3) applies, in respect of fuel that is purchased or imported by the carrier or trucker, as the case may be, before 1991 or after 1992;

  • (c) where subsection (3.1) applies, in respect of fuel that is purchased or imported by the air carrier before 1996 or after 1999; or

  • (d) to a person who is or has been bankrupt or to the trustee in bankruptcy of the person in respect of any fuel purchased or imported by the person or the trustee before the person is discharged from the bankruptcy.

• Marginal note:Idem

  (5) Not more than one application for a fuel tax rebate in respect of fuel purchased or imported in a calendar year may be made by any person.

• Marginal note:Diverting fuel to ineligible uses

  (6) Where a fuel tax rebate is paid to a person under this section in respect of fuel and the person uses the fuel for an ineligible use, the amount of the rebate paid is deemed to be a tax payable under Part III by the person at the time the fuel is so used.

• Marginal note:Repayment of rebate

  (7) Subject to subsections (8) and (9), a person to whom a fuel tax rebate was paid under subsection (2) or (3.1) may repay to the Receiver General all or part of the rebate.

• Marginal note:Time for repayment

  (8) A repayment made under subsection (7) in respect of a fuel tax rebate paid to a person in a taxation year of the person shall be made within the 90 day period that begins on any day on which the Minister sends to the person a notice of assessment of tax payable under Part I of the Income Tax Act by the person for the year, a notice of determination under subsection 152(1.1) of that Act in respect of the person for the year or a notification that no tax is payable under that Part by the person for the year.

• Marginal note:Application of subsections 79(1) to (1.2)

  (9) Where a person repays under subsection (7) all or a part of a fuel tax rebate, subsections 79(1) to (1.2) apply, with such modifications as the circumstances require, as if

  • (a) the repayment were a payment of tax payable under Part III;

  • (b) the person had defaulted in paying the tax within the time prescribed by subsection 78(4);

  • (c) subsection 78(4) had required the tax to be paid on or before

    • (i) in the case of a rebate under subsection (3.1), the later of January 1, 2000 and the last day of the month in which the person received the rebate, and

    • (ii) in any other case, the last day of the month in which the person received the rebate; and

  • (d) the reference in paragraph 79(1)(a) to “a penalty of one-half of one per cent and interest at the prescribed rate” were read as a reference to “a penalty equal to the prescribed rate of interest”.