23 May 2006 Excise Interpretation 77025 - Packaged Wine Destroyed or Damaged by Fire

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Dear XXXXX:

Thank you for your letter XXXXX concerning the application of the Excise Tax Act to certain fuel additives.

All legislative references are to the Excise Tax Act and the regulations therein, unless otherwise specified.

We understand that you are currently exploring the possibility of converting waste chemicals and alcohols from the automotive, printing, pharmaceutical, and related industries back into useful products such as gas line antifreeze and fuel emission reducers. These products would then be added to fuel to prevent water buildup in automobile fuel tanks and in gas station storage tanks and possibly gasoline delivery trucks.

Interpretation Requested

You would like to know if the federal excise tax on gasoline at a rate of $0.10 per litre would be applied to these types of products.

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 as the additives, by themselves, are not unleaded gasoline or unleaded aviation gasoline as stated in paragraph 9(a) of Schedule [I] to the Excise Tax Act. This would mean that when you sell your products to your clients, you would not charge and account for $0.10 per litre of product. However, at the point that 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.

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) 952-5323.

Yours truly,

David F. Turnbull
Excise Taxes Unit
Excise Duties & Taxes Division
Excise and GST/HST Rulings Directorate

2006/05/23 — RITS 78827 — Digital Up Timer