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

Full Document:  

Act current to 2024-02-06 and last amended on 2024-01-01. Previous Versions

PART VIIGeneral (continued)

Deductions, Refunds and Drawbacks (continued)

Marginal note:Definitions

  •  (1) The definitions in this subsection apply in this section.

    eligible ship

    eligible ship means a ship that is a tug, ferry or passenger ship engaged in trade on an inland voyage and that

    • (a) is not proceeding outside Canada other than to

      • (i) a part that lies within the United States of any lake or river a part of which is included in the inland waters of Canada, or

      • (ii) Lake Michigan; and

    • (b) is not engaged in international trade. (navire admissible)

    inland voyage

    inland voyage means a voyage (other than a minor waters voyage)

    • (a) on the inland waters of Canada, together with those parts that lie within the United States of any lake or river included in the inland waters of Canada; or

    • (b) on Lake Michigan. (voyage en eaux internes)

    inland waters of Canada

    inland waters of Canada means all the rivers, lakes and other navigable fresh waters within Canada, and includes the St. Lawrence River as far seaward as a straight line drawn

    • (a) from Cap des Rosiers to West Point Anticosti Island; and

    • (b) from Anticosti Island to the north shore of the St. Lawrence River along the meridian of longitude sixty-three degrees west. (eaux internes du Canada)

    minor waters of Canada

    minor waters of Canada means all inland waters of Canada (other than Lake Ontario, Lake Erie, Lake Huron including Georgian Bay, Lake Superior and the St. Lawrence River east of a line drawn from Father Point to Point Orient) and includes all bays, inlets and harbours of or on those lakes or Georgian Bay. (eaux secondaires du Canada)

    minor waters voyage

    minor waters voyage means a voyage within the minor waters of Canada together with those parts that lie within the United States of any lake or river included in the minor waters of Canada. (voyage en eaux secondaires)

    rebate period

    rebate period means the period

    • (a) that begins on June 1, 2002 and that ends on December 31, 2002;

    • (b) that begins on January 1, 2003 and that ends on December 31, 2003; or

    • (c) that begins on January 1, 2004 and that ends on December 31, 2004. (période de remise)

  • Marginal note:Rebate in respect of fuel for eligible ship

    (2) If a person purchases or intends to purchase fuel that is, or is to be, used by the person to operate or maintain an eligible ship during a rebate period, subject to this Part, the Minister shall, on application by the person, pay to the person a rebate for the period determined in accordance with subsection (3).

  • Marginal note:Determination of rebate

    (3) The amount of the rebate payable to a person under subsection (2) for a rebate period is equal to

    • (a) if the amount applied for is based on an estimate, acceptable to the Minister and made within any period specified by the Minister, of the quantity of fuel that is, or is to be, purchased after May 2002 by the person and is, or is to be, used by the person to operate or maintain an eligible ship during the rebate period, the total amount of tax under Part III that would be imposed on that fuel; or

    • (b) in any other case, the total amount of tax under Part III imposed on fuel that is purchased by the person after May 2002 and is used by the person to operate or maintain an eligible ship during the rebate period.

  • Marginal note:One application per period

    (4) A person shall not file more than one application (other than an application referred to in paragraph (8)(b)) under this section for any rebate period.

  • Marginal note:Reconciliation report

    (5) If a person is paid a rebate for a rebate period based on an estimate referred to in paragraph (3)(a), the person shall, not later than 60 days after the end of the period, file with the Minister in prescribed manner a reconciliation report in prescribed form that indicates

    • (a) the amount of the rebate paid to the person; and

    • (b) the amount of tax under Part III imposed on the fuel purchased by the person after May 2002 and used by the person to operate or maintain an eligible ship during the rebate period.

  • Marginal note:Extension for filing

    (6) The Minister may at any time, in writing, extend the time required by subsection (5) for filing a reconciliation report.

  • Marginal note:Effect of extension for filing

    (7) If the Minister has, under subsection (6), extended the time required by subsection (5) for filing a reconciliation report

    • (a) the report shall be filed within the time so extended; and

    • (b) any amount of excess rebate that is required to be paid within the time otherwise required by subsection (9) shall be paid within the time so extended.

    • (c) [Repealed, 2003, c. 15, s. 97]

  • Marginal note:Additional amount payable to rebate recipient

    (8) If a person files a reconciliation report for a rebate period and the amount referred to in paragraph (5)(b) exceeds the amount referred to in paragraph (5)(a) in respect of the period,

    • (a) the Minister shall pay to the person an amount equal to that excess amount; and

    • (b) the filing of the reconciliation report is deemed to be an application to the Minister for payment of that excess amount.

  • Marginal note:Liability for excess rebate and interest up to due date of reconciliation

    (9) If the rebate paid to a person for a rebate period is determined on the basis of an estimate referred to in paragraph (3)(a) and the amount paid exceeds the amount referred to in paragraph (5)(b) in respect of the period, the person shall pay to the Receiver General

    • (a) on or before the day on or before which the reconciliation report for the rebate period is required to be filed, an amount (in this section referred to as the “excess rebate”) equal to that excess amount; and

    • (b) interest at the prescribed rate in respect of the excess rebate for the period beginning on the first day after the day on which the rebate is paid to the person and ending on the earlier of the day on which the excess rebate is paid to the Receiver General and the day on or before which the reconciliation report is required to be filed.

  • Marginal note:Failure to file a report when required

    (9.1) Every person who fails to file a reconciliation report for a period as and when required under this section shall pay a penalty equal to the sum of

    • (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the period and was not paid before April 1, 2007, and

    • (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from that day to the day on which the report is filed.

  • Marginal note:Deemed tax liability

    (10) The portion of the total of the excess rebate payable by a person in respect of a rebate period, and of the interest payable by the person under paragraph (9)(b), that is outstanding at the end of the day on or before which the reconciliation report for the period is required to be filed is deemed to be an amount of tax payable under this Act that is required to be, and that has not been, paid by the person on or before that day.

  • (11) to (13) [Repealed, 2003, c. 15, s. 97]

  • Marginal note:Restriction

    (14) The Minister shall not, at a particular time, pay an amount to a person under this section unless the person has

    • (a) filed with the Minister all reconciliation reports for rebate periods ending before that time for which a rebate was paid to the person that was based on an estimate referred to in paragraph (3)(a); and

    • (b) paid all excess rebates in respect of rebate periods ending before that time and any interest that has accrued to that time.

  • Marginal note:Limitation period

    (15) An application may not be made under subsection (2) after December 31, 2006.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2002, c. 22, s. 428
  • 2003, c. 15, s. 97
  • 2006, c. 4, s. 125

Marginal note:Definitions

  •  (1) In this section,

    in bulk

    in bulk, in respect of a sale of gasoline or diesel fuel, means

    • (a) in a quantity of five hundred litres or more, where the gasoline or diesel fuel is delivered to the purchaser at a retail outlet of the vendor, and

    • (b) in any quantity, in any other case; (en vrac)

    logging

    logging means the felling, limbing, bucking and marking of trees, construction of logging roads, off-highway transportation of logs to a mill-pond or mill yard, log salvaging and reforestation, but does not include any production activity on logs after transportation to a mill-pond or mill yard; (opérations forestières)

    mineral resource

    mineral resource means

    • (a) a base or precious metal deposit,

    • (b) a coal deposit, or

    • (c) a mineral deposit in respect of which

      • (i) the Minister of Natural Resources has certified that the principal mineral extracted is an industrial mineral contained in a non-bedded deposit,

      • (ii) the principal mineral extracted is sylvite, halite or gypsum, or

      • (iii) the principal mineral extracted is silica that is extracted from sandstone or quartzite; (ressource minérale)

    mining

    mining means the extracting of minerals from a mineral resource, the processing of ore, other than iron ore, from a mineral resource to the prime metal stage or its equivalent, the processing of iron ore from a mineral resource to the pellet stage or its equivalent and the restoration of strip-mined land to a usable condition, but does not include activities related to the exploration for or development of a mineral resource; (opérations minières)

    qualified

    qualified, in respect of a farmer, fisherman, hunter, trapper or other person, means a farmer, fisherman, hunter, trapper or person who holds a sales tax bulk permit issued under regulations made pursuant to subsection (10); (admissible)

    registered vendor

    registered vendor means a person who is registered under regulations made pursuant to subsection (10). (vendeur enregistré)

  • Marginal note:Fuel tax rebate to vendor

    (2) Where gasoline or diesel fuel has been sold by a licensed manufacturer or licensed wholesaler to

    • (a) [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]

    • (b) a qualified fisherman for commercial fishing,

    • (c) a qualified hunter for commercial hunting,

    • (d) a qualified trapper for commercial trapping,

    • (e) a qualified person for use in logging, or

    • (f) a qualified person for use in mining,

    for the sole use of the purchaser and not for resale and the taxes imposed by Parts III and VI are payable in respect of the sale, the manufacturer or wholesaler may, in such circumstances and on such terms and conditions as the Minister may prescribe, deduct, within two years after the sale, a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) from the amount of any payment of any tax, penalty, interest or other sum that the manufacturer or wholesaler is liable or is about to become liable to make under those Parts or under this Part in respect of taxes under those Parts.

  • Marginal note:Fuel tax rebate to vendor selling to farmer

    (2.1) Where gasoline or diesel fuel has been sold by a licensed manufacturer or licensed wholesaler to a qualified farmer for farming purposes, for the sole use of the qualified farmer and not for resale and the tax imposed by Parts III and VI is payable in respect of the sale, the manufacturer or wholesaler may, in such circumstances and on such terms and conditions as the Minister may prescribe, deduct, within two years after the sale, a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) from the amount of any payment of any tax, penalty, interest or other sum that the manufacturer or wholesaler is liable or is about to become liable to make under those Parts or under this Part in respect of tax under those Parts.

  • Marginal note:Condition

    (3) No deduction shall be made by a licensed manufacturer or licensed wholesaler under subsection (2) or (2.1) unless the manufacturer or wholesaler has reduced the amount charged for the gasoline or diesel fuel to the purchaser by an amount equal to the amount of the deduction and the amount of the reduction is shown separately on an invoice for the sale given to the purchaser by the manufacturer or wholesaler.

  • Marginal note:Fuel tax rebate to registered vendor

    (4) Where gasoline or diesel fuel has been sold in bulk by a registered vendor to

    • (a) [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]

    • (b) a qualified fisherman for commercial fishing,

    • (c) a qualified hunter for commercial hunting,

    • (d) a qualified trapper for commercial trapping,

    • (e) a qualified person for use in logging, or

    • (f) a qualified person for use in mining,

    for the sole use of the purchaser and not for resale and the taxes imposed by Parts III and VI have been paid or are payable in respect of the gasoline or fuel, a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) shall, subject to this Part, be paid to that registered vendor if he applies therefor within two years after he sold the gasoline or fuel.

  • Marginal note:Fuel tax rebate to registered vendor selling to farmer

    (4.1) Where gasoline or diesel fuel has been sold in bulk by a registered vendor to a qualified farmer for farming purposes, for the sole use of the qualified farmer and not for resale and the tax imposed by Parts III and VI has been paid or is payable in respect of the gasoline or fuel, a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) shall, subject to this Part, be paid to that registered vendor if he applies therefor within two years after the sale of the gasoline or fuel.

  • Marginal note:Condition

    (5) No fuel tax rebate shall be paid to a registered vendor under subsection (4) or (4.1) unless the registered vendor has reduced the amount charged for the gasoline or diesel fuel to the purchaser by an amount equal to the amount of the fuel tax rebate applied for and the amount of the reduction is shown separately on an invoice for the sale given to the purchaser by the registered vendor.

  • Marginal note:Fuel tax rebate to purchaser or importer

    (6) Where gasoline or diesel fuel has been sold to or imported by

    • (a) [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]

    • (b) a fisherman for commercial fishing,

    • (c) a hunter for commercial hunting,

    • (d) a trapper for commercial trapping,

    • (e) a person for use in logging, or

    • (f) a person for use in mining,

    for the sole use of the purchaser or importer and not for resale and the taxes imposed by Parts III and VI have been paid or are payable in respect of the gasoline or fuel and, in the case of a sale, the amount charged therefor has not been reduced in accordance with subsection (3) or (5), a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) shall, subject to this Part, be paid to that purchaser or importer if he applies therefor within two years after he purchased or imported the gasoline or fuel.

  • Marginal note:Fuel tax rebate to farmer

    (6.1) Where gasoline or diesel fuel has been sold to or imported by a farmer for farming purposes, for the sole use of the farmer for farming purposes and not for resale and the tax imposed by Parts III and VI has been paid or is payable in respect of the gasoline or fuel and, in the case of a sale, the amount charged therefor has not been reduced in accordance with subsection (3) or (5), a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) shall, subject to this Part, be paid to that farmer if he applies therefor within two years after the purchase or importation of the gasoline or fuel.

  • Marginal note:Limitation

    (7) Subsections (2), (2.1), (4), (4.1), (6) and (6.1) do not apply in respect of gasoline or diesel fuel

    • (a) that is to be used to propel a vehicle on a public highway;

    • (b) that is to be used other than for a commercial purpose; or

    • (c) that is sold or imported

      • (i) on or after January 1, 1990, in respect of the tax imposed by Part III, or

      • (ii) on or after January 1, 1991, in respect of the tax imposed by Part VI.

  • Marginal note:Amount of fuel tax rebate: Part VI

    (8) For the purposes of subsections (2), (4) and (6), the amount of the fuel tax rebate in respect of the tax imposed by Part VI shall be calculated at such rate, not exceeding five cents, per litre of gasoline or diesel fuel sold or imported as the Governor in Council may, on the recommendation of the Minister of Finance, prescribe by order or, if no rate is so prescribed, at the rate of three cents per litre of gasoline or diesel fuel sold or imported.

  • Marginal note:Amount of fuel tax rebate: Part III

    (8.01) For the purposes of subsections (2), (4) and (6), the amount of the fuel tax rebate in respect of the tax imposed by Part III shall be calculated

    • (a) in the case of gasoline, at the rate of

      • (i) one cent per litre, where the gasoline was sold or imported on or after January 1, 1988 and before April 1, 1988, and

      • (ii) two cents per litre, where the gasoline was sold or imported on or after April 1, 1988 and before January 1, 1990; and

    • (b) in the case of diesel fuel, at the rate of one cent per litre, where the diesel fuel was sold or imported on or after January 1, 1988 and before January 1, 1990.

  • Marginal note:Farmers’ rate: Part VI

    (8.1) For the purposes of subsections (2.1), (4.1) and (6.1), the amount of the fuel tax rebate in respect of the tax imposed by Part VI shall be calculated at such rate, not exceeding five cents, per litre of gasoline or diesel fuel sold or imported as the Governor in Council may, on the recommendation of the Minister of Finance, prescribe by order or, if no rate is so prescribed, at the rate of three and one-half cents per litre of gasoline or diesel fuel sold or imported.

  • Marginal note:Farmers’ rate: Part III

    (8.2) For the purposes of subsections (2.1), (4.1) and (6.1), the amount of the fuel tax rebate in respect of the tax imposed by Part III shall be calculated

    • (a) in the case of gasoline, at the rate of

      • (i) three cents per litre, where the gasoline was sold or imported on or after January 1, 1987 and before January 1, 1988,

      • (ii) four cents per litre, where the gasoline was sold or imported on or after January 1, 1988 and before April 1, 1988, and

      • (iii) five cents per litre, where the gasoline was sold or imported on or after April 1, 1988 and before January 1, 1990; and

    • (b) in the case of diesel fuel, at the rate of

      • (i) three cents per litre, where the diesel fuel was sold or imported on or after January 1, 1987 and before January 1, 1988, and

      • (ii) four cents per litre, where the diesel fuel was sold or imported on or after January 1, 1988 and before January 1, 1990.

  • Marginal note:Diversion

    (9) Where the amount charged for gasoline or diesel fuel to a purchaser is reduced in accordance with subsection (3) or (5) or a payment is made under subsection (6) or (6.1) to a purchaser or importer of gasoline or diesel fuel and that person sells the gasoline or fuel or uses it for a purpose for which the reduction or payment could not, at the time of the purchase or importation, have been made, the amount of the reduction or payment shall be deemed to be a tax under this Act payable by that person,

    • (a) where that person sells the gasoline or fuel, at the time of delivery thereof to the purchaser from him; and

    • (b) where that person uses the gasoline or fuel, at the time of the use.

  • Marginal note:Regulations

    (10) The Governor in Council may make regulations

    • (a) authorizing the issue of sales tax bulk permits to farmers, fishermen, hunters, trappers or other persons who use gasoline or diesel fuel for a purpose described in subsection (2) or (2.1) and prescribing the terms and conditions of the permits;

    • (b) prescribing the records to be maintained and returns to be filed by farmers, fishermen, hunters, trappers or other persons holding sales tax bulk permits;

    • (c) prescribing the times at which returns referred to in paragraph (b) are to be filed;

    • (d) authorizing the cancellation of any sales tax bulk permit where any term or condition of that permit is not complied with or where any provision of this Act or the regulations applicable to the person holding the permit is not complied with; and

    • (e) providing for a system of registration by the Minister of persons who regularly sell in bulk gasoline or diesel fuel to qualified farmers, qualified fishermen, qualified hunters, qualified trappers or qualified persons engaged in logging or mining, including, without limiting the generality of the foregoing,

      • (i) the form and manner of applying for, and the procedure for granting, registration,

      • (ii) the terms and conditions on which registration may be granted, and

      • (iii) the authorization of the Minister to cancel any registration where any term or condition of the registration is not complied with or where any provision of this Act or the regulations applicable to the registered vendor is not complied with.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 69
  • R.S., 1985, c. 7 (2nd Supp.), ss. 24, 34, c. 42 (2nd Supp.), s. 9, c. 42 (3rd Supp.), s. 1, c. 12 (4th Supp.), s. 28
  • 1989, c. 22, s. 4
  • 1994, c. 41, s. 37
 

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