Marginal note:Compound interest on amounts owed by Her Majesty

171. Interest shall be compounded daily at the prescribed rate on amounts owed by Her Majesty to a person and computed for the period beginning on the first day after the day on which the amount is required to be paid by Her Majesty and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty.

Marginal note:Application of interest provisions if Act amended

172. For greater certainty, if a provision of an Act amends this Act and provides that the amendment comes into force on, or applies as of, a particular day that is before the day on which the provision is assented to, the provisions of this Act that relate to the calculation and payment of interest apply in respect of the amendment as though the provision had been assented to on the particular day.

Marginal note:Waiving or reducing interest

173. The Minister may at any time waive or reduce any interest payable by a person under this Act.

Refunds

Marginal note:Statutory recovery rights

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

Marginal note:Applications for refunds

• 175. (1) An application for a refund under this Act shall be filed with the Minister in the prescribed form and manner.

• Marginal note:Single application

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

Marginal note:Payment if error

• 176. (1) If a person has paid an amount as or on account of, or that was taken into account as, duty, interest or other amount payable under this Act in circumstances in which the amount was not payable by the person, whether the amount was paid by mistake or otherwise, the Minister shall pay a refund of that amount to the person.

• Marginal note:Restriction

  (2) A refund in respect of an amount shall not be paid to a person to the extent that

  • (a) the amount was taken into account as duty for a fiscal month of the person and the Minister has assessed the person for the month under section 188; or

  • (b) the amount paid was duty, interest or other amount assessed under that section.

• Marginal note:Application for refund

  (3) A refund of an amount shall not be paid to a person unless the person files an application for the refund within two years after the person paid the amount.

Marginal note:Restriction on refunds, etc.

177. A refund or a payment of an amount under this Act shall not be paid to a person to the extent that it can reasonably be regarded that

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

• (b) the person has applied for a refund, payment or remission of the amount under any other Act of Parliament.

Marginal note:Restriction re trustees

178. If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a refund or any other payment under this Act that the bankrupt was entitled to claim before the appointment shall not be paid after the appointment unless all returns required under this Act to be filed for fiscal months of the bankrupt ending before the appointment have been filed and all amounts required under this Act to be paid by the bankrupt in respect of those fiscal months have been paid.

Marginal note:Overpayment of refunds, etc.

• 179. (1) If an amount is paid to, or applied to a liability of, a person as a refund or other payment under this Act and the person is not entitled to the amount or the amount paid or applied exceeds the refund or other payment to which the person is entitled, the person shall pay to the Receiver General an amount equal to the refund, payment or excess on the day the amount is paid to, or applied to a liability of, the person.

• Marginal note:Effect of reduction of refund, etc.

  (2) For the purposes of subsection (1), if a refund or other payment has been paid to a person in excess of the amount to which the person was entitled and the amount of the excess has, by reason of section 177, reduced the amount of any other refund or other payment to which the person would, but for the payment of the excess, be entitled, the person is deemed to have paid the amount of the reduction to the Receiver General.

Marginal note:No refund on exported tobacco products or alcohol

180. Subject to this Act, the duty paid on any tobacco product or alcohol entered into the duty-paid market shall not be refunded on the exportation of the tobacco product or alcohol.

Marginal note:Re-worked or destroyed tobacco products

181. The Minister may refund to a tobacco licensee the duty paid on a tobacco product that is re-worked or destroyed by the tobacco licensee in accordance with section 41 if the licensee applies for the refund within two years after the tobacco product is re-worked or destroyed.

Marginal note:Refund of tax to importer if foreign taxes paid

• 182. (1) The Minister may refund, to a person who has imported into a foreign country a tobacco product (as defined in section 55) that was manufactured in Canada and exported by the tobacco licensee who manufactured it to the foreign country in accordance with paragraph 50(4)(a), an amount determined in accordance with subsection (2) in respect of the product if

  • (a) the person provides evidence satisfactory to the Minister that

    • (i) all taxes and duties imposed on the product under the laws of the foreign country having national application have been paid, and

    • (ii) the container containing the product has printed on it or affixed to it tobacco markings; and

  • (b) the person applies to the Minister for the refund within two years after the product was exported to the foreign country.

• Marginal note:Determination of refund

  (2) The amount of the refund under subsection (1) is equal to the lesser of

  • (a) the total of the taxes and duties referred to in subparagraph (1)(a)(i) that are paid in respect of the tobacco product, and

  • (b) the amount of the special duty imposed under paragraph 56(1)(a) in respect of the product that is paid by the tobacco licensee who manufactured it.

• Marginal note:Overpayment of refund or interest

  (3) If an amount has been paid to a person as a refund in respect of a tobacco product exported by the tobacco licensee who manufactured it or as interest in respect of such a refund and a special duty under paragraph 56(1)(b) was imposed in respect of the product, the amount is deemed to be duty payable under this Act by the licensee that became payable during the fiscal month of the licensee in which the amount was paid to the person.

• Marginal note:Refund of special duty to tobacco licensee if foreign taxes paid

  (4) If a refund under subsection (1) has been paid in respect of an exported tobacco product, the Minister may refund to the tobacco licensee who manufactured the product the amount, if any, by which the special duty imposed under paragraph 56(1)(a) in respect of the product and paid by the licensee exceeds the amount of the refund under subsection (1) if the licensee applies to the Minister for the refund under this subsection within two years after the product was exported.

Marginal note:Refund of special duty to duty free shop licensee

• 183. (1) If a duty free shop licensee who holds a licence issued under section 22 sells, in accordance with the Customs Act, imported manufactured tobacco to an individual who is not a resident of Canada and who is about to depart Canada, the Minister may refund to the licensee the special duty paid under section 53 in respect of that portion of the total quantity of the tobacco exported by the individual on their departure that does not exceed

  • (a) in the case of cigarettes, 200 cigarettes;

  • (b) in the case of tobacco sticks, 200 sticks; and

  • (c) in the case of manufactured tobacco other than cigarettes and tobacco sticks, 200 g.

• Marginal note:Application

  (2) No refund shall be paid to a duty free shop licensee in respect of a sale of imported manufactured tobacco unless the licensee applies to the Minister for the refund within two years after the sale.

Marginal note:Payment if bad debt

• 184. (1) If an ad valorem duty under section 43 has been paid by a tobacco licensee in respect of an arm’s length sale of cigars and the licensee has established that any debt owing to the licensee in respect of the sale has become in whole or in part a bad debt and has accordingly written off all or part of the debt as a bad debt in the licensee’s books of account, an amount equal to the proportion of the amount of that duty that the amount of the debt written off is of the price for which the cigars were sold may, subject to this Act, be paid to that licensee if the licensee applies for a refund of the amount within two years after the end of the licensee’s fiscal month during which the debt was so written off.

• Marginal note:Recovery of payment

  (2) If a tobacco licensee recovers all or any part of a debt in respect of which an amount is paid to the licensee under subsection (1) (in this subsection referred to as the “refunded amount”), that licensee shall immediately pay to the Receiver General an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid.

• Definition of “arm’s length sale”

  (3) In this section, “arm’s length sale” in respect of cigars means a sale of cigars by a tobacco licensee to a person with whom the licensee is dealing at arm’s length at the time of the sale.

Marginal note:Refund — imported bulk spirits

• 185. (1) If imported bulk spirits on which special duty has been paid are returned by a licensed user to the spirits licensee who supplied them to the licensed user, the Minister may refund the duty to the spirits licensee who paid the duty if the licensee applies for the refund within two years after the spirits are returned.

• Marginal note:Refund — packaged imported spirits

  (2) If imported spirits that are packaged and on which special duty has been paid are returned under prescribed conditions by a licensed user to the excise warehouse of the excise warehouse licensee who supplied them to the licensed user, the Minister may refund the duty to the excise warehouse licensee who paid the duty if the excise warehouse licensee applies for the refund within two years after the spirits are returned.