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: 135525
August 22, 2011
Dear [Client]:
Subject:
Excise Interpretation
Recovery of Federal Excise Tax
Thank you for your fax of January 27, 2011 concerning the application of the Excise Tax Act (ETA) for fuel purchased by the [...] First Nation. We apologize for the delay in responding.
In your fax, you have asked to Canada Revenue Agency (CRA) whether there is an available refund or exemption of the Federal Excise Tax (FET) for the diesel fuel used by your Band in the operation of two boat vessels. It is our understanding that the boats are used to ferry Band members within the reserve.
The FET is an indirect tax imposed at the manufacturing level. For this reason, the exemption from direct taxation under the Indian Act is not applicable. As well, there are no specific provisions within the ETA that would provide for a refund or exemption of the FET for the diesel used by the [...] First Nation. As such, any fuel purchased by your Band must be made on a FET tax-paid basis.
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 Taxes Unit
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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