Bill C-47

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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.
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.
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.
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.
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.
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.
Refund - alcohol returned to warehouse	186. If packaged alcohol that has been removed from the excise warehouse of an excise warehouse licensee for entry into the duty-paid market is returned in accordance with section 152 to the warehouse, the Minister may refund to the licensee the duty paid on the alcohol if the licensee applies for the refund within two years after the alcohol is returned.
Refund - alcohol in special container	187. If a marked special container of alcohol is returned to the excise warehouse licensee who paid duty on the alcohol, the Minister may refund to the licensee the duty on the alcohol remaining in the container when it is returned if the licensee
	(a) destroys the alcohol in the manner approved by the Minister; and
	(b) applies for the refund within two years after the container is returned.
	Assessments
Assessments	188. (1) The Minister may assess
	(a) the duty payable by a person for a fiscal month of the person; and
	(b) subject to section 190, interest and any other amount payable by a person under this Act.
Reassessment	(2) The Minister may reassess or make an additional assessment of any duty, interest or other amount that may be assessed under subsection (1).
Allowance of unclaimed amounts	(3) If, in assessing the duty, interest or other amount payable by a person for a fiscal month of the person or other amount payable by a person under this Act, the Minister determines that
	(a) a refund would have been payable to the person if it had been claimed in an application under this Act filed on the particular day that is
	(i) if the assessment is in respect of duty payable for the fiscal month, the day on which the return for the month was required to be filed, or
	(ii) if the assessment is in respect of interest or other amount, the day on which the interest or other amount became payable by the person,
	(b) the refund was not claimed by the person in an application filed before the day on which notice of the assessment is sent to the person, and
	(c) the refund would be payable to the person if it were claimed in an application under this Act filed on the day on which notice of the assessment is sent to the person or would be disallowed if it were claimed in that application only because the period for claiming the refund expired before that day,
	the Minister shall, unless otherwise requested by the person, apply all or part of the refund against that duty, interest or other amount that is payable as if the person had, on the particular day, paid the amount so applied on account of that duty, interest or other amount.
Application of overpayment	(4) If, in assessing the duty payable by a person for a fiscal month of the person, the Minister determines that there is an overpayment of duty payable for the month, unless the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall, unless otherwise requested by the person,
	(a) apply
	(i) all or part of the overpayment
	against
	(ii) any amount (in this paragraph referred to as the ``outstanding amount'') that, on the particular day on which the person was required to file a return for the month, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,
	as if the person had, on the particular day, paid the amount so applied on account of the outstanding amount;
	(b) apply
	(i) all or part of the overpayment that was not applied under paragraph (a) together with interest on the overpayment at the prescribed rate, computed for the period beginning on the day that is 30 days after the latest of
	(A) the particular day,
	(B) the day on which the return for the fiscal month was filed, and
	(C) in the case of an overpayment that is attributable to a payment made on a day subsequent to the days referred to in clauses (A) and (B), that subsequent day,
	and ending on the day on which the person defaulted in paying the outstanding amount referred to in subparagraph (ii)
	against
	(ii) any amount (in this paragraph referred to as the ``outstanding amount'') that, on a day (in this paragraph referred to as the ``later day'') after the particular day, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,
	as if the person had, on the later day, paid the amount and interest so applied on account of the outstanding amount; and
	(c) refund to the person the part of the overpayment that was not applied under paragraphs (a) and (b) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the latest of
	(i) the particular day,
	(ii) the day on which the return for the fiscal month was filed, and
	(iii) in the case of an overpayment that is attributable to a payment made on a day subsequent to the days referred to in subparagraphs (i) and (ii), that subsequent day,
	and ending on the day on which the refund is paid to the person.
Application of payment	(5) If, in assessing the duty payable by a person for a fiscal month of the person or an amount (in this subsection referred to as the ``overdue amount'') payable by a person under this Act, all or part of a refund is not applied under subsection (3) against that duty payable or overdue amount, except if the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall, unless otherwise requested by the person,
	(a) apply
	(i) all or part of the refund that was not applied under subsection (3)
	against
	(ii) any other amount (in this paragraph referred to as the ``outstanding amount'') that, on the particular day that is
	(A) if the assessment is in respect of duty payable for the fiscal month, the day on which the return for the month was required to be filed, or
	(B) if the assessment is in respect of an overdue amount, the day on which the overdue amount became payable by the person,
	the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,
	as if the person had, on the particular day, paid the refund so applied on account of the outstanding amount;
	(b) apply
	(i) all or part of the refund that was not applied under subsection (3) or paragraph (a) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the later of
	(A) the particular day, and
	(B) if the assessment is in respect of duty payable for the fiscal month, the day on which the return for the month was filed,
	and ending on the day on which the person defaulted in paying the outstanding amount referred to in subparagraph (ii)
	against
	(ii) any amount (in this paragraph referred to as the ``outstanding amount'') that, on a day (in this paragraph referred to as the ``later day'') after the particular day, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,
	as if the person had, on the later day, paid the refund and interest so applied on account of the outstanding amount; and
	(c) refund to the person the part of the refund that was not applied under any of subsection (3) and paragraphs (a) and (b) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the later of
	(i) the particular day, and
	(ii) if the assessment is in respect of duty payable for the fiscal month, the day on which the return for the month was filed,
	and ending on the day on which the refund is paid to the person.
Limitation on refunding overpayments	(6) An overpayment of duty payable for a fiscal month of a person and interest on the overpayment shall not be applied under paragraph (4)(b) or refunded under paragraph (4)(c) unless the person has, before the day on which notice of the assessment is sent to the person, filed all returns or other records that the person was required to file with the Minister under this Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act.
Limitation	(7) A refund or a part of the refund that was not applied under subsection (3) and interest on the refund under paragraphs (5)(b) and (c)
	(a) shall not be applied under paragraph (5)(b) against an amount (in this paragraph referred to as the ``outstanding amount'') that is payable by a person unless the refund would have been payable to the person as a refund if the person had claimed it in an application under this Act filed on the day on which the person defaulted in paying the outstanding amount and, in the case of a payment under section 176, if that section allowed the person to claim the payment within four years after the person paid the amount in respect of which the payment would be so payable; and
	(b) shall not be refunded under paragraph (5)(c) unless
	(i) the refund would have been payable to the person as a refund if the person had claimed it in an application under this Act filed on the day on which notice of the assessment is sent to the person, and
	(ii) the person has filed all returns or other records that the person was required to file with the Minister under this Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act before the day on which notice of the assessment is sent to the person.
Deemed claim or application	(8) If, in assessing any duty, interest or other amount payable by a person under this Act, the Minister applies or refunds an amount under subsection (3), (4) or (5),
	(a) the person is deemed to have claimed the amount in a return or application filed under this Act; and
	(b) to the extent that an amount is applied against any duty, interest or other amount payable by the person, the Minister is deemed to have refunded or paid the amount to the person and the person is deemed to have paid the duty, interest or other amount payable against which it was applied.
Refund on reassessment	(9) If a person has paid an amount on account of any duty, interest or other amount assessed under this section in respect of a fiscal month and the amount paid exceeds the amount determined on reassessment to have been payable by the person, the Minister may refund to the person the amount of the excess, together with interest on the excess amount at the prescribed rate for the period that
	(a) begins on the day that is 30 days after the latest of
	(i) the day on which the person was required to file a return for the month,
	(ii) the day on which the person filed a return for the month, and
	(iii) the day on which the amount was paid by the person; and
	(b) ends on the day on which the refund is paid.
Meaning of ``overpaymen t of duty payable''	(10) In this section, ``overpayment of duty payable'' of a person for a fiscal month of the person means the amount, if any, by which the total of all amounts paid by the person on account of duty payable for the month exceeds the total of
	(a) the duty payable for the month, and
	(b) all amounts paid to the person under this Act as a refund for the month.
Assessment of refund	189. (1) On receipt of an application made by a person for a refund under this Act, the Minister shall, without delay, consider the application and assess the amount of the refund, if any, payable to the person.
Reassessment	(2) The Minister may reassess or make an additional assessment of the amount of a refund despite any previous assessment of the amount of the refund.
Payment	(3) If on assessment under this section the Minister determines that a refund is payable to a person, the Minister shall pay the refund to the person.
Restriction	(4) A refund shall not be paid until the person has filed with the Minister all returns or other records that are required to be filed under this Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act.
Interest	(5) If a refund is paid to a person, the Minister shall pay interest at the prescribed rate to the person on the refund for the period beginning on the day that is 30 days after the day on which the application for the refund is filed with the Minister and ending on the day on which the refund is paid.

Bill C-47

Assessments