Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 146468
Business Number: […]
November 26, 2012
Dear [Client]:
Subject: EXCISE INTERPRETATION
Excise Tax on Detergent Portion of Unleaded Gasoline
Thank you for your [correspondence] of August 1, 2012 concerning the application of the Excise Tax Act to the detergent portion of unleaded gasoline.
All legislative references are to the Excise Tax Act and the regulations therein, unless otherwise specified.
We understand that:
* […] [Company A] imports and sells gasoline detergent to a Canadian customer.
* The Canadian customer will be adding the detergent to their unleaded gasoline.
* [Company A] imports the detergent from […] [Country X].
* The unleaded gasoline will be sold by the Canadian customer at their Canadian locations via pumps and tanks they have installed.
* The Canadian customer pays all the excise tax due on the sales of the unleaded gasoline to their suppliers.
* The Canadian customer has asked [Company A] to remit excise tax on the detergent portion of the unleaded gasoline to the Canada Revenue Agency.
INTERPRETATION REQUESTED
You would like to know the registration and filing requirements necessary to collect and remit excise tax on the detergent portion of the gasoline to the Canada Revenue Agency.
INTERPRETATION GIVEN
Based on the information provided, your production of fuel additives as described above would not attract the federal excise tax of $0.10 per litre of unleaded fuel. However, at the point your client blends your product with gasoline, they in turn are deemed to be manufacturing gasoline and are required to charge and account for $0.10 per litre per blended volume to the Canada Revenue Agency.
Subsection 2(1) of the Act defines “gasoline” as meaning “gasoline type fuels for use in internal combustion engines other than aircraft engines.”
In our telephone conversation of [mm/dd/yyyy], you confirmed to me that there is no fuel or gasoline of any type in the detergent manufactured by [Company A]. You further confirmed that the detergent is not itself suitable for use in internal combustion engines.
Accordingly, the detergent does not meet the definition of “gasoline” and cannot be taxed as such. Further, there is no excise tax applicable to the type of detergent described.
The foregoing comments represent our general views with respect to the subject matter of your request. These comments are not rulings and, in accordance with the guidelines set out in GST/HST Memorandum 1.4, Goods and Services Tax Rulings, do not bind the Canada Revenue Agency with respect to a particular situation. Future changes to the Excise Tax Act, regulations, or our interpretative policy could affect this interpretation.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 957-1140.
Yours truly,
Neil Varan
Excise Taxes and Other Levies Unit
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
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