Select Luxury Items Tax Act (S.C. 2022, c. 10, s. 135)

DIVISION 4Rebates

SUBDIVISION ARebates to Net Tax

Marginal note:Rebate to net tax — export

• 39 (1) If the sale of a subject item to a purchaser by a vendor is completed at a particular time and the purchaser exports the subject item at a later time, the Minister must pay to the vendor a rebate in respect of the reporting period of the vendor that includes the later time if

  • (a) the following conditions are met:

    • (i) the vendor is a registered vendor in respect of that type of subject item at the particular time,

    • (ii) the purchaser is not, at any time during the period beginning at the particular time and ending at the later time, a registered vendor in respect of that type of subject item,

    • (iii) tax under section 18 in respect of the sale of the subject item becomes payable by the vendor at the particular time and the tax is taken into account in the determination of the net tax for the reporting period of the vendor that includes the particular time,

    • (iv) the subject item is not used in Canada at any time before the later time except to the extent reasonably necessary or incidental to its manufacture, offering for sale, transportation or exportation,

    • (v) the subject item is not registered with the Government of Canada or a province before the later time except if the registration is done solely for a purpose incidental to its manufacture, offering for sale, transportation or exportation,

    • (vi) the purchaser exports the subject item as soon after the sale is completed as is reasonable having regard to the circumstances surrounding the exportation, the sale and, if applicable, the normal business practice of the purchaser and vendor, and

    • (vii) the purchaser provides to the vendor, and the vendor retains, evidence satisfactory to the Minister of the exportation of the subject item by the purchaser; or

  • (b) prescribed conditions are met.

• Marginal note:Amount of rebate

  (2) The amount of a rebate under subsection (1) in respect of a sale of a subject item is equal to the amount of the tax in respect of the sale referred to in subparagraph (1)(a)(iii).

Marginal note:Rebate to net tax — regulations

40 The Minister must pay a rebate in respect of a subject item to a prescribed person in the amount determined in prescribed manner if prescribed circumstances exist.

Marginal note:Application for rebate to net tax

41 Despite any other provision of this Act, a rebate under this Subdivision in respect of a particular reporting period of a person is not to be paid unless an application for the rebate

• (a) is made in prescribed form containing prescribed information; and

• (b) is filed with the Minister in prescribed manner

  • (i) on or before the day on or before which the return under section 55 is required to be filed for the last reporting period of the person that ends within two years after the end of the particular reporting period, and

  • (ii) with the return in respect of the reporting period in which the amount of the rebate is taken into account in determining the net tax for the reporting period.

SUBDIVISION BOther Rebates

Marginal note:Rebate — foreign representative

• 42 (1) The Minister must pay to a person a rebate in respect of a sale of a subject item from a vendor to the person if

  • (a) tax under section 18 is payable by the vendor in respect of the sale of the subject item and the tax is taken into account in the determination of the net tax for the reporting period of the vendor that includes the time at which the sale is completed; and

  • (b) the person is entitled to tax relief privileges under the Foreign Missions and International Organizations Act for the tax payable under subsection 165(1) of the Excise Tax Act in respect of the sale.

• Marginal note:Amount of rebate

  (2) The amount of a rebate payable under subsection (1) in respect of a sale of a subject item is equal to the amount of the tax in respect of the sale referred to in paragraph (1)(a).

• Marginal note:Application for rebate

  (3) Despite any other provision of this Act, a rebate under this section is not to be paid unless an application for the rebate is

  • (a) made in prescribed form containing prescribed information; and

  • (b) filed with the Minister in prescribed manner within two years after the day on which the sale is completed.

Marginal note:Rebate — payment in error

• 43 (1) The Minister must pay a rebate to a person if the person paid an amount in excess of the amount that was payable by the person under this Act whether the amount was paid by mistake or otherwise.

• Marginal note:Amount of rebate

  (2) The amount of a rebate payable under subsection (1) by the Minister is the amount of the excess referred to in that subsection.

• Marginal note:Restriction on rebate

  (3) A rebate under this section in respect of an amount is not to be paid to a person to the extent that

  • (a) the amount was taken into account as an amount required to be paid by the person in respect of a reporting period of the person and the Minister has assessed the person for that period under section 92; or

  • (b) the amount was an amount assessed under section 92.

• Marginal note:Application for rebate

  (4) Despite any other provision of this Act, a rebate under this section is not to be paid unless an application for the rebate is

  • (a) made in prescribed form containing prescribed information; and

  • (b) filed with the Minister in prescribed manner within two years after the earlier of the day that the amount was taken into account in determining the net tax for a reporting period of the person and the day that the amount was paid to the Receiver General.

• Marginal note:One application per quarter

  (5) Not more than one application for a rebate under this section may be made by a person in a calendar quarter.

Marginal note:Rebate — regulations

44 The Minister must pay a rebate in respect of a subject item to a prescribed person in the amount determined in prescribed manner if prescribed circumstances exist.

Marginal note:Restriction on rebate

45 A rebate under this Subdivision is not to 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 Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, Part 1 of the Greenhouse Gas Pollution Pricing Act, the Underused Housing Tax Act, the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister.

SUBDIVISION CGeneral Rules for Rebates

Marginal note:Restriction on rebate

46 A rebate of an amount is not to be paid to a person under this Division

• (a) to the extent that it can reasonably be regarded that the person has obtained or is entitled to obtain a rebate, refund or remission of the amount under any other Division of this Act or under any other Act of Parliament; or

• (b) if prescribed circumstances exist.

Marginal note:Single application

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

Marginal note:Restriction — bankruptcy

48 If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate or succession of a bankrupt, a rebate under this Division that the bankrupt was entitled to claim before the appointment must not be paid after the appointment unless all returns required to be filed in respect of the bankrupt under this Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, Part 1 of the Greenhouse Gas Pollution Pricing Act, the Underused Housing Tax Act, the Digital Services Tax Act and the Global Minimum Tax Act in respect of periods ending before the appointment have been filed and all amounts required to be paid under that Part and those Acts by the bankrupt in respect of those periods have been paid.

Marginal note:Statutory recovery rights

49 Except as specifically provided under this Act, the Financial Administration Act or the Customs Act, no person has a right to recover any money paid to Her Majesty in right of Canada as or on account of, or that has been taken into account by Her Majesty in right of Canada as, an amount payable under this Act.

DIVISION 5Registration, Reporting Periods, Returns and Requirement to Pay

Marginal note:Qualifying sale

• 50 (1) For the purposes of this section, a person makes a qualifying sale of a subject item if

  • (a) the person sells the subject item to a purchaser;

  • (b) the subject item

    • (i) in the case of a subject vehicle, has never been registered with the Government of Canada or a province other than a registration that is done only because of the sale, and

    • (ii) in the case of a subject aircraft or subject vessel, has never been registered with the Government of Canada other than a registration that is done solely for a purpose incidental to its manufacture, offering for sale or transportation; and

  • (c) the price threshold in respect of the subject item is less than the greatest of

    • (i) the consideration for the sale,

    • (ii) the retail value of the subject item at the particular time at which the sale is completed, and

    • (iii) if the subject item has a manufacturer’s suggested retail price, the amount that would be the retail value of the subject item at the particular time if the fair market value of the subject item at the particular time were equal to the manufacturer’s suggested retail price of the subject item.

• Marginal note:Qualifying importation

  (2) For the purposes of this section, a person makes a qualifying importation of a subject item if

  • (a) the person imports the subject item;

  • (b) the subject item

    • (i) in the case of a subject vehicle, has never been registered with the Government of Canada or a province other than a registration that is done only because of the importation, and

    • (ii) in the case of a subject aircraft or subject vessel, has never been registered with the Government of Canada other than a registration that is done solely for a purpose incidental to its manufacture, offering for sale or transportation; and

  • (c) the price threshold in respect of the subject item is exceeded by the greatest of

    • (i) the taxable amount of the subject item determined under section 20 in respect of the importation,

    • (ii) the retail value of the subject item at the particular time at which the subject item is accounted for in accordance with section 32 of the Customs Act in respect of the importation, and

    • (iii) if the subject item has a manufacturer’s suggested retail price, the amount that would be the retail value of the subject item at the particular time if the fair market value of the subject item at the particular time were equal to the manufacturer’s suggested retail price of the subject item.

• Marginal note:Registration required

  (3) For the purposes of this Act, a person is required to be registered as a vendor in respect of a type of subject item if the person

  • (a) makes a qualifying sale, or a qualifying importation, of a subject item of that type in the course of a business of offering for sale in Canada subject items of that type that

    • (i) in the case of subject vehicles, have never been registered with the Government of Canada or a province, and

    • (ii) in the case of subject aircraft and subject vessels, have never been registered with the Government of Canada other than registrations that are done solely for a purpose incidental to the manufacture, offering for sale or transportation of the subject items; or

  • (b) is a prescribed person.

• Marginal note:Timing of application

  (4) A person that is required under subsection (3) to be registered as a vendor in respect of a type of subject item must apply to the Minister for registration on or before the earlier of

  • (a) the day on which the first qualifying sale of a subject item of that type made by the person is completed,

  • (b) the day on which, for the first qualifying importation of a subject item of that type made by the person, the subject item is accounted for in accordance with section 32 of the Customs Act, or

  • (c) if prescribed conditions are met, the prescribed day.

• Marginal note:Registration permitted

  (5) For the purposes of this Act, a person that is not required under this section to be registered as a vendor in respect of a type of subject item may apply to the Minister to be registered as a vendor in respect of that type of subject item if the person is a prescribed person.

• Marginal note:Registration not required

  (6) Despite subsection (3), a person is not required to be registered as a vendor in respect of a type of subject item for the purposes of this Act if the person is a prescribed person.

Marginal note:Application for registration

• 51 (1) An application for registration under this Division is to be made in prescribed form containing prescribed information and is to be filed with the Minister in prescribed manner.

• Marginal note:Notification of registration

  (2) If a person that meets the requirements for registration under this Division applies for registration, the Minister may register the person and, upon doing so, the Minister must assign a registration number to the person for the purposes of this Act and notify the person of the registration number and of the effective date of the registration.

• Marginal note:Notice of intent — failure to apply

  (3) If the Minister has reason to believe that a person is not registered as a vendor in respect of a type of subject item for the purposes of this Act, is required to be so registered under this Division and has failed to apply for registration under this Division as and when required, the Minister may send a notice in writing (in this section referred to as a “notice of intent”) to the person that the Minister proposes to so register the person under subsection (5).

• Marginal note:Representations to Minister

  (4) Upon receipt of a notice of intent, a person must apply for the registration under this Division proposed in the notice or establish to the satisfaction of the Minister that the person is not required to be so registered.

• Marginal note:Registration by Minister

  (5) If, after 60 days after the particular day on which a notice of intent was sent by the Minister to a person, the person has not applied under this Division for the registration in respect of a type of subject item proposed in the notice and the Minister is not satisfied that the person is not required to be so registered, the Minister may register the person as a vendor in respect of that type of subject item under this Division and, upon doing so, must assign a registration number to the person for the purposes of this Act and notify the person of the registration number and of the effective date of the registration.