11 May 2007 Excise Interpretation 87268 - Excise Tax Status for Fuel Used in Medivac Flights

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 (ETA) to the operations of XXXXX. We apologize for the delay in responding.

In your letter, you have asked whether XXXXX is able to file for a refund of the $0.04 per litre Federal Excise Tax (FET) on aviation fuel purchased in Canada. The aviation fuel is used in medivac flights flown within Canada.

Subsection 23(1) of the ETA 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 aviation fuel.

There are no provisions within the ETA that provide for relief of the FET on aviation fuel sold and used for medivac flights within Canada. For this reason, XXXXX would not be eligible to file for a refund of the FET.

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) 954-5899.

Yours truly,

Darren Weiner
Excise Taxes and Other Levies Unit
Excise Duties and Taxes Division
Excise and GST/HST Rulings Directorate

2007/04/11 — RITS 82897 — Excise Tax on Gasoline Delivered to Reserve