Legislative Proposals Relating to the Excise Tax Act
1 (1) Subsection 123(1) of the Excise Tax Act is amended by adding the following in alphabetical order:
emission allowance means
(a) an allowance, credit or similar instrument (other than a prescribed allowance, credit or instrument) that
(i) is issued or created by, or on behalf of,
(A) a government, a government of a foreign country, a government of a political subdivision of a country, a supranational organization or an international organization (each of which is in this definition referred to as a "regulator"),
(B) a board, commission or other body established by a regulator, or
(C) an agency of a regulator,
(ii) can be used to satisfy a requirement under
(A) a scheme or arrangement implemented by, or on behalf of, a regulator to regulate greenhouse gas emissions, or
(B) a prescribed scheme or arrangement, and
(iii) represents a specific quantity of greenhouse gas emissions expressed as carbon dioxide equivalent, or
(b) a prescribed property; (unité d'émission)
(2) Subsection (1) is deemed to have come into force on Announcement Date but also applies in respect of any supply made before Announcement Date if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day.
2 (1) Section 221 of the Act is amended by adding the following after subsection (2):
Exception — emission allowance
(2.1) A supplier (other than a prescribed supplier) that makes a taxable supply of an emission allowance is not required to collect tax under Division II payable by the recipient in respect of the supply.
(2) Subsection (1) is deemed to have come into force on Announcement Date but also applies in respect of any supply of an emission allowance made before Announcement Date if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day, except that in respect of those supplies subsection 221(2.1) of the Act, as enacted by subsection (1), is to be read as follows:
(2.1) A supplier (other than a prescribed supplier) that makes a taxable supply of an emission allowance is not required to collect any amount of tax under Division II that is payable by the recipient in respect of the supply and that was not collected before Announcement Date.
3 (1) The portion of subsection 228(4) of the Act before paragraph (a) is replaced by the following:
Real property and emission allowance — self-assessment
(4) If tax under Division II is payable by a person in respect of a supply of property that is real property or an emission allowance and the supplier is not required to collect the tax and is not deemed to have collected the tax,
(2) Subsection (1) is deemed to have come into force on Announcement Date but also applies in respect of any supply of an emission allowance made before Announcement Date if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day, except that in respect of those supplies subsection 228(4) of the Act, as amended by subsection (1), is to be read as follows:
(4) If a supply of an emission allowance is made to a person, the following rules apply in respect of the tax under Division II that is payable in respect of the supply and that has not been collected before Announcement Date (in this subsection referred to as the "uncollected tax"):
(a) to the extent that the uncollected tax became payable before Announcement Date,
(i) if the person is a registrant and acquired the emission allowance for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person's return for the reporting period that includes Announcement Date is required to be filed, pay the uncollected tax to the Receiver General and report the uncollected tax in that return, and
(ii) in any other case, the person shall, on or before the last day of the month following the calendar month that includes Announcement Date, pay the uncollected tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the uncollected tax in prescribed form containing prescribed information; and
(b) to the extent that the uncollected tax became payable on or after Announcement Date,
(i) if the person is a registrant and acquired the emission allowance for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person's return for the reporting period in which the uncollected tax became payable is required to be filed, pay the uncollected tax to the Receiver General and report the uncollected tax in that return, and
(ii) in any other case, the person shall, on or before the last day of the month following the calendar month in which the uncollected tax became payable, pay the uncollected tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the uncollected tax in prescribed form containing prescribed information.
4 (1) The portion of subsection 261(1) of the English version of the Act after paragraph (b) is replaced by the following:
tax, net tax, penalty, interest or other obligation under this Part in circumstances where the amount was not payable or remittable by the person, whether the amount was paid by mistake or otherwise, the Minister shall, subject to subsections (2) to (3), pay a rebate of that amount to the person.
(2) Section 261 of the Act is amended by adding the following after subsection (2):
Restriction — emission allowance
(2.1) A rebate in respect of an amount paid in respect of a supply of an emission allowance is not to be paid under subsection (1) to a person unless
(a) the person paid the amount to the Receiver General; or
(b) prescribed circumstances exist or prescribed conditions are met.
(3) Subsections (1) and (2) are deemed to have come into force on Announcement Date but do not apply in respect of an amount that was, before Announcement Date, paid as or on account of, or taken into account as, tax, net tax, penalty, interest or other obligation under Part IX of the Act.
5 (1) Paragraph 298(1)(b) of the Act is replaced by the following:
(b) in the case of an assessment of tax payable by the person under Division II in respect of a supply to which subsection 221(2) or (2.1) applies, more than four years after the later of the day on or before which the person was required to file the return in which that tax was required to be reported and the day the return was filed;
(2) Subsection (1) is deemed to have come into force on Announcement Date.
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