Excise Tax Act

Marginal note:Liability for amount paid or credited

252.5 Where, under section 252, 252.1 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.