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

Full Document:  

Act current to 2022-09-22 and last amended on 2022-09-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VIRebates (continued)

Marginal note:Rebate in respect of goods removed from a participating province

  •  (1) If a supply by way of sale of property that is tangible personal property (other than property included in paragraph 252(1)(a) or (c)), a mobile home or a floating home is made in a particular participating province to a person that is resident in Canada, if the person removes the property from the participating province to another province within thirty days after it is delivered to the person and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner.

  • Marginal note:Stored goods

    (2) For the purposes of subsection (1), where a person places property in storage after it is delivered to the person in a participating province, the period during which the person holds the property in storage shall not be taken into account in determining whether the person removes the property from the province within thirty days after delivery.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 229
  • 2009, c. 32, s. 31

Marginal note:Rebate in respect of goods imported at a place in a province

 If a person that is resident in a particular participating province pays tax under subsection 212.1(2) in respect of property described in paragraph 212.1(2)(b) that the person imports at a place in another province for consumption or use exclusively in any province (other than the particular participating province) and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 229
  • 2009, c. 32, s. 32
  • 2012, c. 19, s. 23

Marginal note:Rebate in respect of intangible personal property or services supplied in a participating province

  •  (1) If a person that is resident in Canada is the recipient of a supply made in a participating province of intangible personal property or a service that is acquired by the person for consumption, use or supply in whole or in part outside the participating province and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner.

  • (2) [Repealed, 2012, c. 31, s. 89]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 229
  • 2009, c. 32, s. 33
  • 2012, c. 31, s. 89
  •  (1) [Repealed, 2012, c. 31, s. 90]

  • Marginal note:Rebate for tax payable by investment plans

    (2) If tax under subsection 165(2), sections 212.1 or 218.1 or Division IV.1 is payable by a listed financial institution described in subparagraph 149(1)(a)(vi) or (ix), other than a selected listed financial institution, or by a prescribed person and prescribed conditions are satisfied, the Minister must, subject to section 261.4, pay a rebate to the financial institution or person equal to the amount determined in prescribed manner.

  • Marginal note:Election by segregated fund and insurer

    (3) An insurer and a segregated fund of the insurer may elect, in prescribed form containing prescribed information, to have the insurer pay to, or credit in favour of, the segregated fund the amount of any rebates payable to the segregated fund under subsection (2) in respect of supplies made by the insurer to the segregated fund.

  • Marginal note:Filing of election

    (4) An election made under subsection (3) by an insurer and a segregated fund of the insurer shall be filed with the Minister in prescribed manner on or before the day the insurer files a return of the insurer under Division V for a reporting period of the insurer in which the insurer pays or credits a rebate under subsection (2) to or in favour of the segregated fund.

  • Marginal note:Application to insurer

    (5) An insurer may pay or credit to or in favour of a segregated fund of the insurer the amount of a rebate under subsection (2) in respect of a taxable supply made by the insurer to the segregated fund that, if the segregated fund complied with section 261.4 in relation to the supply, would be payable to the segregated fund if

    • (a) the insurer and the segregated fund have filed an election made under subsection (3) that is in effect when tax in respect of the supply becomes payable; and

    • (b) the segregated fund, within one year after the day on which tax becomes payable in respect of the supply, submits to the insurer an application for the rebate in prescribed form containing prescribed information.

  • Marginal note:Forwarding of application by insurer

    (6) Where an application of a segregated fund of an insurer for a rebate under subsection (2) is submitted to the insurer in the circumstances described in subsection (5),

    • (a) the insurer shall transmit the application to the Minister with the insurer’s return filed under Division V for the reporting period of the insurer in which the rebate was paid or credited to the segregated fund; and

    • (b) interest under subsection 297(4) is not payable in respect of the rebate.

  • Marginal note:Joint and several liability

    (7) If an insurer, in determining its net tax for a reporting period, deducts an amount under subsection 234(5) that the insurer paid or credited to a segregated fund of the insurer on account of a rebate under subsection (2) and the insurer knows or ought to know that the segregated fund is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the segregated fund is entitled, the insurer and the segregated fund are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 229
  • 2009, c. 32, s. 34
  • 2012, c. 31, s. 90
  • 2017, c. 33, s. 141(E)

Marginal note:Restriction

  •  (1) A rebate shall not be paid under any of sections 261.1 to 261.31 unless

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

      • (i) in the case of a rebate under section 261.1 in respect of property supplied in a participating province, the day the person removes the property from the participating province, and

      • (ii) in the case of a rebate under any of sections 261.2 to 261.31 in respect of tax payable by the person, the day that tax became payable;

    • (b) except where the application is a prescribed application, where the person is an individual, the individual has not made another application under this section in the calendar quarter in which the application is made;

    • (c) where the person is not an individual, the person has not made another application under this section in the calendar month in which the application is made; and

    • (d) prescribed circumstances, if any, exist.

    • (e) [Repealed, 2009, c. 32, s. 35]

  • Marginal note:Exception for investment plans, etc.

    (2) A rebate under any of sections 261.1 to 261.3 in respect of tax paid or payable by a listed financial institution described in subparagraph 149(1)(a)(vi) or (ix) must not be paid.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 229
  • 2009, c. 32, s. 35
  • 2012, c. 31, s. 91

 [Repealed, 2000, c. 30, s. 78]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 229
  • 2000, c. 30, s. 78

Marginal note:Form and filing of application

  •  (1) An application for a rebate under this Division (other than section 253) shall be made in prescribed form containing prescribed information and shall be filed with the Minister in prescribed manner.

  • Marginal note:Single application

    (2) Only one application may be made under this Division for a rebate with respect to any matter.

  • Marginal note:Group of individuals

    (3) If a supply of a residential complex or a share of the capital stock of a cooperative housing corporation is made to two or more individuals or if two or more individuals construct or substantially renovate, or engage another person to construct or substantially renovate, a residential complex, the following rules apply in respect of those individuals:

    • (a) subject to paragraphs (b) and (c), the references in sections 254 to 256 to a particular individual shall be read as references to all of those individuals as a group;

    • (b) the references in paragraphs 254(2)(b), 254.1(2)(b) and 255(2)(c) and 256(2)(a) and (2.2)(b) to the primary place of residence of the particular individual or a relation of the particular individual are to be read as references to the primary place of residence of any of those individuals or a relation of any of those individuals;

    • (c) the references in clause 254(2)(g)(i)(A), subparagraphs 254.1(2)(g)(i), 255(2)(f)(i) and 256(2)(d)(i) and paragraph 256(2.2)(c) to the particular individual or a relation of the particular individual are to be read as references to any of those individuals or a relation of any of those individuals; and

    • (d) only one of those individuals may apply for the rebate under section 254, 254.1, 255 or 256, as the case may be, in respect of the complex or share.

  • [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. 117
  • 2001, c. 15, s. 18
  • 2021, c. 23, s. 109

Marginal note:Restriction on rebate

 A rebate of an amount under subsection 215.1(1) or (2) or 216(6) or any of sections 252 to 261.31, or a refund or abatement of an amount that, because of subsection 215.1(3) or 216(7), may be granted under section 69, 73, 74 or 76 of the Customs Act, shall not be paid or granted to a person to the extent that it can reasonably be regarded that

  • (a) the amount has previously been rebated, refunded or remitted to that person under this or any other Act of Parliament;

  • (b) the person has claimed or is entitled to claim an input tax credit in respect of the amount;

  • (c) the person has obtained or is entitled to obtain a rebate, refund or remission of the amount under any other section of this Act or under any other Act of Parliament; or

  • (d) a credit note referred to in subsection 232(3) has been received by the person, or a debit note referred to in that subsection has been issued by the person, for an adjustment, refund or credit that includes the amount.

  • [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. 118
  • 1997, c. 10, s. 230
  • 2000, c. 30, s. 79

Marginal note:Restriction on rebate, etc.

  •  (1) A rebate of an amount under any provision of this Act (other than sections 252.4 and 252.41) or a refund or abatement of an amount that, because of subsection 215.1(3) or 216(7), may be granted under section 69, 73, 74 or 76 of the Customs Act shall not be paid or granted to a person to the extent that it can reasonably be regarded that the amount is in respect of tax under subsection 165(2) or section 212.1 that became payable by the person at a time when the person was a selected listed financial institution, or that was paid by the person at that time without having become payable, in respect of property or a service acquired or imported by the person for consumption, use or supply in the course of a business of the person or an adventure or concern in the nature of trade of the person.

  • Marginal note:Exception — insurer

    (2) Subsection (1) does not apply to an amount of tax that became payable by an insurer or that was paid by the insurer without having become payable in respect of property or a service acquired or imported exclusively and directly for consumption, use or supply in the course of investigating, settling or defending a claim under an insurance policy that is not in the nature of accident and sickness or life insurance.

  • Marginal note:Exception — surety

    (3) Subsection (1) does not apply to an amount of tax that became payable by a surety (within the meaning of subsection 184.1(2)) or that was paid by the surety without having become payable in respect of property or a service acquired or imported

    • (a) exclusively and directly for consumption, use or supply in the course of carrying on, or engaging another person to carry on, the construction of real property in Canada that is undertaken in full or partial satisfaction of the surety’s obligations under a performance bond; and

    • (b) otherwise than for use as capital property of the surety or in improving capital property of the surety.

  • Marginal note:Exception — prescribed person

    (4) Despite subsection (1), a rebate under section 261.31 in respect of a prescribed amount of tax may be paid to a person that is prescribed for the purpose of subsection 261.31(2).

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2000, c. 30, s. 80
  • 2012, c. 31, s. 92

Marginal note:Restriction on rebate

 A rebate under this Part shall not be paid to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act and the Select Luxury Items Tax Act have been filed with the Minister.

Marginal note:Idem

 Where a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a rebate under this Part that the bankrupt was entitled to claim before the appointment shall not be paid to the bankrupt after the appointment unless all returns required under this Part to be filed for, or in respect of acquisitions of real property made in, reporting periods of the bankrupt ending before the appointment have been filed and all amounts required under this Part to be remitted by the bankrupt and all amounts payable under this Part by the bankrupt as penalty, interest, an instalment or a repayment in respect of those reporting periods have been remitted or paid, as the case may be.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 119

Marginal note:Rebates in respect of beverages in returnable containers

 For the purposes of sections 252, 260 and 261.1, if a person is the recipient of a supply of a beverage in a filled and sealed returnable container or of a used and empty returnable container (or the material resulting from its compaction) and the supplier is deemed under paragraph 226(2)(b) or (4)(b) to have made to the person a taxable supply of a service in respect of the returnable container, tax paid in respect of the supply of the service is deemed to have been paid in respect of the supply of the beverage, empty returnable container or material, as the case may be.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2007, c. 18, s. 45
 
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