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.
[Addressee]
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 132836
March 7, 2011
Dear [Client]:
Subject:
Excise Interpretation
Excise Tax Refund for On Board Truck Heaters
Thank you for your fax of February 15, 2011 concerning the application of the Excise Tax Act (ETA) to the operations of [...] [(the Company)]. In your letter, you have asked the Canada Revenue Agency (CRA) to comment as to whether diesel fuel consumed in on board truck heaters would qualify for a refund of excise tax.
Our understanding of the facts [is] as follows:
1. [The Company] operates a fleet of trucks that use on board heaters to heat the cab of the truck when the engine is off.
2. The heaters produce heat by burning diesel fuel. The diesel fuel used by the heaters is drawn from the fuel tanks of the truck.
3. By analysing on board monitors and specifications provided by the company that manufacture the heaters, [the Company] is able to calculate the amount of diesel fuel that is consumed by any given heater.
Subsection 23(1) of the ETA, subject to subsections (6) to (8), imposes excise tax on items listed in Schedule I to the ETA, at the rate specified in the Schedule. Section 9.1 of Schedule I to the ETA specifies a tax rate of $0.04 per litre on diesel fuel.
Subsection 2(1) of the ETA defines diesel fuel to include any fuel oil that is suitable for use in internal combustion engines of the compression-ignition type, other that any such fuel oil that is intended for use and actually used as heating oil. As such, diesel fuel intended and actually used as heating oil is not subject to excise tax.
Subparagraph 68.01(1)(a)(ii) provides for an end-user refund to a purchaser who uses diesel fuel as heating oil. Therefore, [the Company] would be eligible to apply for a refund of excise tax for the diesel fuel that has been consumed in the on board truck heaters.
[The Company] can file for a refund by using form N15 Excise Tax Act - Application for Refund/Rebate. Please ensure that adequate documentation is kept in order to substantiate the quantity of diesel fuel that is being claimed in your refund application.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 954-5899.
Yours truly,
Darren Weiner
Softwood Lumber and Other Levies Unit
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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