Excise Tax Act

261.31 (1) [Repealed, 2012, c. 31, s. 90]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.