April 2019

The information in this notice is for reference purposes only and does not replace the Greenhouse Gas Pollution Pricing Act or its regulations. The information described in this notice is also based, in part, on the Regulations Amending Part 1 of Schedule 1 and Schedule 2 to the Greenhouse Gas Pollution Pricing Act (Regulations), which were approved on March 25, 2019, and the Draft Amendments to the Fuel Charge Regulations (Draft Amendments) issued on March 19, 2019. Any reference that is made in this notice to April 1, 2019 or July 1, 2019 is set out in the Regulations, as is any reference made in this notice to a particular listed province refers to Manitoba, New Brunswick, Nunavut, Ontario, Saskatchewan and Yukon. Any commentary contained in this notice should not be taken as a representation by the Canada Revenue Agency (CRA) that the Draft Amendments will eventually be made in their current form.

Should there be any discrepancy between the information in this notice and the legislative provisions in the Act or its regulations, the legislative provisions apply. For more information about the Act and its regulations, including all related technical publications, go to Fuel charge technical information.

All legislative references in this publication are to the Act, unless otherwise specified.

Table of Contents

• Overview
• Information on registration
  • Mandatory registration
  • Timing of registration
  • Applying for registration
  • Authority for separate returns
  • Applying for more than one type of registration.
  • Cancelling a registration
• Information on the fuel charge
  • Registered rail carrier
  • Registered specified rail carrier
  • Bringing or importing fuel into a listed province
  • Net fuel quantity calculation and annual net fuel adjustment
  • Registered rail carrier or registered specified rail carrier that is also a registered user of fuel
  • Registered rail carrier or registered specified rail carrier that is also a registered user of combustible waste
  • Exemption certificates
  • Filing and reporting
  • Calculating net fuel quantity
  • Calculating the charge payable or the net fuel quantity rebate
  • Annual net fuel adjustment
  • Calculating the net charge
• Special rules
  • Fuel brought into a listed province on behalf of a registered rail carrier or a registered specified rail carrier
  • Fuel in transit through a listed province
  • Fuels in a mixture
  • Biodiesel and biomethane
• Claiming a rebate
  • Fuel removed from a listed province
  • Net fuel quantity rebate
  • Annual net fuel adjustment rebate
  • Payment in excess of the amount payable

Overview

As part of the Government of Canada’s initiative to implement a federal carbon pollution pricing system, and taking into consideration provincial carbon pollution pricing systems, the Government of Canada has developed a federal carbon pollution pricing system composed of a fuel charge that applies to fossil fuels and an output-based pricing system (OBPS) for industrial facilities.^{Footnote 1}

The federal system applies in provinces and territories where a provincial or territorial carbon pollution pricing system has not been put into place or the system does not meet the federal standard. The Canada Revenue Agency (CRA) will be responsible for administering and enforcing the fuel charge component of the federal system beginning April 1, 2019, for the listed provinces of Manitoba, New Brunswick, Ontario and Saskatchewan and July 1, 2019, for the listed provinces of Nunavut and Yukon. For the applicable rates of the charge on the various fuel types and combustible waste, go to Fuel Charge Rates.

This notice provides information on the requirements to register as a rail carrier, as well as on reporting and filing obligations. It also provides information on registration, filing and reporting requirements for registered specified rail carriers that have been prescribed in the Fuel Charge Regulations. Interjurisdictional rail carriers should carefully review the information included in this notice and should also familiarize themselves with the Act, its regulations and other related notices. They may also contact the CRA for additional information and clarification.

Information on registration

Mandatory registration

Under subsection 62(1), a person (other than a registered emitter) that is an interjurisdictional rail carrier in respect of a type of fuel that is a qualifying rail fuel is required to be registered at a particular time if it can reasonably be expected that, during the calendar year that includes the particular time, all or substantially all of the fuel of that type used by the person will be used in vehicles and the greatest proportion of the fuel used in vehicles will be used in locomotives:

1. unless paragraph (b) applies, as a rail carrier in respect of that type of fuel; or
2. as either a specified rail carrier or rail carrier in respect of that type of fuel if the interjurisdictional rail carrier has been prescribed in the Fuel Charge Regulations.

At present, 3 persons are prescribed as specified rail carriers for purposes of paragraph 62(1)(b):

• Canadian National Railway Company
• Canadian Pacific Railway Company
• VIA Rail Canada Inc.

Timing of registration

A person that is required under subsection 62(1) to be registered as a rail carrier or that meets the conditions to register as a specified rail carrier in respect of a type of fuel must apply for registration before the later of:

• April 1, 2019, for Manitoba, New Brunswick, Ontario and Saskatchewan or July 1, 2019, for Nunavut and Yukon; and
• the day on which the person first meets the conditions outlined in the section “Mandatory registration” above.

Applying for registration

To apply for registration as a rail carrier or a specified rail carrier, a person must complete Form L400, Fuel Charge Registration. Even where the person applies for more than one type of registration, only one registration form is required, unless an application for authority to file separate returns under subsection 88(1) is submitted. The person must also complete Form L400-1, Fuel Charge Registration Schedule. Information on other registration types can be found in Fuel Charge Notice FCN1, Registration Under the Greenhouse Gas Pollution Pricing Act.

Registration forms can be submitted electronically using the “Submit documents” function in My Business Account. If the person submits a registration application electronically, that person will be provided with a confirmation number. This confirmation number should be retained for follow-up on the status of the application.

The person can also send the completed registration forms by mail to the following address:

Sudbury Tax Centre
Fuel Charge Program
Post Office Box 20000, Station A
Sudbury ON P3A 5C1

The processing of the fuel charge registration may be delayed in the case of missing or incomplete information.

If the application for registration is approved, the CRA will inform the person in writing of its registration number and the effective date of registration.

Authority for separate returns

Under subsection 88(1), a person that engages in one or more activities in separate branches or divisions may apply to the CRA for authority to file separate returns and rebate applications under Part 1 of the Act for a branch or division. The application to file separate returns must be submitted in the form of a letter at the time of registration.

The person must complete the application and, for each branch or division, confirm that the following requirements are met:

• the branch or division indicated in the application can be separately identified by reference to its location or the nature of the activities in which it is engaged; and
• separate records, books of account and accounting systems are maintained for the branch or division.

A separate Form L400 should be used for each branch or division, along with Form L400-1.

The application and forms can be submitted electronically using the “Submit documents” function in My Business Account or by mail to the Sudbury Tax Centre at the address listed above.

If the application to file separate returns is approved, the CRA will inform the person in writing and the authorization will remain in effect until:

• the person requests the revocation of the authorization in writing;
• the person fails to comply with any condition of the authorization or any provision of Part 1 of the Act;
• the CRA is no longer satisfied that the requirements of the authorization are met; or
• the CRA considers that the authorization is no longer required.

Under these conditions, the CRA will revoke the authorization and send a notice in writing to the person specifying the effective date of the revocation.

Applying for more than one type of registration

In addition to applying for registration as a rail carrier or a specified rail carrier in respect of a type of fuel, a person may also register as a user of fuel if it uses, in the regular course of its business, fuel of that type in a non-covered activity in a listed province. For more information on registered users of fuel, refer to Fuel Charge Notice FCN7, Users Under the Greenhouse Gas Pollution Pricing Act.

A registered rail carrier or a registered specified rail carrier is also required to register as a user of combustible waste if it burns combustible waste, such as tires or asphalt shingles, in a listed province for the purpose of producing heat or energy. For more information about registered users of combustible waste, refer to Fuel Charge Notice FCN7.

Cancelling a registration

Under subsection 65(9), if a person is registered as an air carrier, a marine carrier, a rail carrier, a specified air carrier, a specified marine carrier or a specified rail carrier in respect of a type of fuel, the CRA must cancel whichever of those registrations applies when registering the person as an air carrier or a specified air carrier, in respect of that type of fuel, a marine carrier or a specified marine carrier, in respect of that type of fuel, a rail carrier or specified rail carrier, in respect of that type of fuel, or as an emitter.

Also, a registered rail carrier or a registered specified rail carrier that believes it is no longer required to be registered (for example, if ownership changes or business activity ceases) may request that the CRA cancel its registration. The registered rail carrier or registered specified rail carrier must notify the CRA in writing when this occurs, noting the reason for requesting the cancellation and the effective date. The CRA must cancel the registration if satisfied that the registration is not required.

The registered rail carrier or registered specified rail carrier can submit the request electronically using the “Submit documents” function in My Business Account or by mail to the Sudbury Tax Centre at the address listed in the section “Applying for registration” above. Filing and reporting requirements remain in effect until the effective date of cancellation.

Finally, the CRA may also cancel a registration if it is satisfied that the registration is not required, after giving the person reasonable notice. In this case, the CRA will notify the person of the cancellation and the effective date of the cancellation.

Information on the fuel charge

Generally, a charge applies to 21 types of fuel delivered, transferred, used, produced, imported or brought into Manitoba, New Brunswick, Ontario or Saskatchewan beginning April 1, 2019, and Nunavut or Yukon beginning July 1, 2019. A charge also applies on combustible waste when it is burned in a listed province for the purpose of producing heat or energy.

Registered rail carrier

A fuel charge will be embedded in the price that a registered rail carrier pays for qualifying rail fuel because the registered rail carrier is not eligible to provide an exemption certificate to its supplier (refer to the section “Exemption certificates” later in this notice). A registered distributor or a registered specified rail carrier that delivers qualifying rail fuel in a listed province to a registered rail carrier will have to pay a fuel charge on that fuel and the registered rail carrier will purchase qualifying rail fuel with the fuel charge already embedded in the price.

A registered rail carrier is also liable to pay a fuel charge at the time fuel is imported at a location in a listed province or brought into a listed province from a place in Canada.

Registered specified rail carrier

A registered distributor can deliver qualifying rail fuel to a registered specified rail carrier without the charge being applied at the time of delivery if the registered specified rail carrier provides an exemption certificate to the registered distributor in accordance with section 36. A registered specified rail carrier can also deliver qualifying rail fuel to another registered specified rail carrier without the charge being applied at that time if the registered specified rail carrier that accepts the delivery provides an exemption certificate to the registered specified rail carrier delivering the fuel in accordance with section 36. For more information, refer to the section “Exemption certificates” in this notice.

Bringing or importing fuel into a listed province

Under section 19, a charge applies when a registered rail carrier imports fuel at a location in a listed province or brings fuel into a listed province. The charge becomes payable at the time the fuel is imported or brought into the listed province by the registered rail carrier. The amount of the charge is determined under section 40.

Under subsection 19(4), a charge is not payable by a registered rail carrier if the fuel is brought into the listed province, or is imported at a location in the listed province, in a supply tank of a vehicle and the fuel is for use in the operation of the vehicle or an auxiliary component of the vehicle (for example, the vehicle’s heater or air conditioner) or an auxiliary component of another vehicle attached to the vehicle.

Under subsection 19(5), the exception in subsection 19(4) does not apply to fuel that is brought into a listed province, or imported at a location in a listed province, by a person if the fuel is brought in or imported in a supply tank of a locomotive and the person is an interjurisdictional rail carrier in respect of that type of fuel and is not, in respect of that type of fuel, registered as an air carrier, marine carrier or rail carrier.

Net fuel quantity calculation and annual net fuel adjustment

A registered rail carrier or registered specified rail carrier will pay a charge if the result of the calculation of the net fuel quantity or the annual net fuel adjustment (see below for details) in respect of a type of fuel and a listed province is a positive amount.

Registered rail carrier or registered specified rail carrier that is also a registered user of fuel

A registered rail carrier or a registered specified rail carrier that is also a registered user of fuel is required to comply with all the rules and obligations that apply to registered users of fuel. A registered rail carrier or a registered specified rail carrier that is also a registered user of fuel must pay a charge under section 23 on fuel that is used in a listed province otherwise than in a non-covered activity or delivered to another person, unless the other person is a registered distributor or another registered specified rail carrier in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36.

For more information, refer to Fuel Charge Notice FCN7.

Registered rail carrier or registered specified rail carrier that is also a registered user of combustible waste

A registered rail carrier or a registered specified rail carrier that is also a registered user of combustible waste is required to comply with all the rules and obligations that apply to registered users of combustible waste. A registered rail carrier or a registered specified rail carrier that is also a registered user of combustible waste and that burns combustible waste in a listed province for the purpose of producing heat or energy must pay a charge under section 25.

For more information, refer to Fuel Charge Notice FCN7.

Exemption certificates

An exemption certificate is a document that is provided by certain persons, including registered specified rail carriers, to another person to enable the other person to deliver fuel in a listed province without the application of the charge at the time of delivery.

A registered distributor or a registered specified rail carrier can deliver fuel to a person that is a registered specified rail carrier without a charge being applied at the time of delivery if the registered specified rail carrier provides an exemption certificate to the registered distributor or the registered specified rail carrier in accordance with section 36. Specifically, an exemption certificate applies in respect of deliveries in a listed province only if the exemption certificate includes a declaration by the person that the person is registered as a specified rail carrier in respect of that type of fuel.

To use an exemption certificate, registered specified rail carriers must obtain and complete Form L401-2, Fuel Charge Exemption Certificate for Registered Specified Carriers under section 36 of the Greenhouse Gas Pollution Pricing Act, and the Fuel Charge Regulations. For the purpose of the fuel charge, an exemption certificate does not have an expiry date.

The exemption certificate must be signed and provided to the person that delivers the fuel, and it can be used for subsequent deliveries made by the same person to the same registered specified rail carrier as long as the conditions for the exemption certificate continue to be met. The person to whom the exemption certificate is provided must retain a copy of the exemption certificate.

Section 37 sets out the consequences of making a false declaration on an exemption certificate. Where a particular person delivers fuel in a listed province to another person that provides an exemption certificate and makes a false declaration, the other person must pay the charge otherwise payable, a penalty of 25% of the amount of the charge and any other additional penalties and interest that may be applicable. Paragraph 37(1)(c) further provides that if the particular person knows, or ought to know, that the declaration is, at that particular time, false, both the particular person and the other person are jointly and severally, or solidarily, liable for the payment of the charge in respect of the fuel and the listed province, the penalty mentioned above and any related interest and penalties.

Filing and reporting

The reporting period of a registered rail carrier or a registered specified rail carrier is a calendar month. A registered rail carrier or a registered specified rail carrier must file a return monthly with the CRA, even if there is no amount owing. The return must be filed by the end of the month following the reporting period.

Forms to complete

The quantity of fuel subject to a charge must be reported by type of fuel and listed province. A registered rail carrier or a registered specified rail carrier must file Form B400, Fuel Charge Return – Registrant, for each reporting period, for each registration type, as well as one of the following schedules:

• Form B400-10, Fuel Charge Return Schedule – Registered Rail Carrier, if it is a registered rail carrier; or
• Form B400-11, Fuel Charge Return Schedule – Registered Specified Rail Carrier, if it is a registered specified rail carrier.

More than one type of registration

If the registered rail carrier or registered specified rail carrier holds more than one type of registration, the quantity of fuel or combustible waste subject to a charge must be reported, by type in the case of fuel, and by listed province for each registration type. This means that the registered rail carrier or the registered specified rail carrier must file Form B400 for each registration type and once for each reporting period, as well as:

• Form B400-4, Fuel Charge Return Schedule – Registered User of Fuel, if it is also a registered user of fuel;
• Form B400-5, Fuel Charge Return Schedule – Registered User of Combustible Waste, if it is also a registered user of combustible waste.

Section 104 provides that a registered rail carrier or a registered specified rail carrier must keep its records for 6 years after the end of the year to which they relate.

A registered rail carrier or a registered specified rail carrier must determine the net fuel quantity of each type of fuel for each listed province for a reporting period for which a return and accompanying return schedule(s) must be filed.

A registered rail carrier or a registered specified rail carrier must also determine its annual net fuel adjustment for a particular specified year (for example, from April to March), for a type of fuel and for a listed province. The annual net fuel adjustment is reported on Form B400-10 or B400-11 for the month of September.

Calculating net fuel quantity

Under section 31, the net fuel quantity of a person that is a registered rail carrier in respect of a type of fuel for a reporting period of the person, for that type of fuel and for a listed province, is the amount determined by the formula:

Under section 29, the net fuel quantity of a person that is a registered specified rail carrier in respect of a type of fuel for a reporting period of the person, for that type of fuel and for a listed province, is the amount determined by the formula:

The result from the calculation of the net fuel quantity can be either positive or negative and is required to calculate the net charge of the person.

Under section 34, if the result of the net fuel quantity calculation of a registered rail carrier or a registered specified rail carrier for a reporting period, for a type of fuel and for a listed province is a positive amount, the registered rail carrier or registered specified rail carrier must pay a fuel charge in respect of that net fuel quantity and the listed province in the amount determined using the formula set out in subsection 40(1) and described in the section below. The charge becomes payable on the last day of the reporting period.

If the result of the net fuel quantity calculation is a negative amount, a registered rail carrier or a registered specified rail carrier can claim a rebate under section 46 in respect of that net fuel quantity, the listed province and the applicable reporting period.

Calculating the charge payable or the net fuel quantity rebate

For registered rail carriers and registered specified rail carriers, if the net fuel quantity result is positive, the amount of the charge is calculated using the formula under subsection 40(1). If the net fuel quantity result is negative, a rebate is calculated using the formula under subsection 46(2).

The amount of the charge payable is calculated using the formula:

The amount of the rebate is calculated using the formula:

The result obtained either under subsection 40(1) or subsection 46(2) is used in the calculation of the net charge, as described in the section “Calculating the net charge” later in this notice.

Annual net fuel adjustment

Both registered rail carriers and registered specified rail carriers are required to calculate the difference between the quantity of fuel used in a locomotive in a listed province in a particular specified year (for example, April to March), and the quantity of fuel that has been estimated by the carrier during the same period.

Under section 33, if at any time in a particular specified year, a person is a registered specified rail carrier or registered rail carrier in respect of a type of fuel, the annual net fuel adjustment of the person for the particular specified year, for that type of fuel and for a listed province is the amount determined by the formula:

Under section 35, if the annual net fuel adjustment, determined under section 33, of a registered specified rail carrier or a registered rail carrier for a particular specified year, for that type of fuel and for a listed province is a positive amount, the carrier must pay a charge in respect of that annual net fuel adjustment and the listed province in the amount determined under section 40 (refer to the section “Calculating the charge payable or the net fuel quantity rebate” above). The charge becomes payable on September 30 of the specified year following the particular specified year.

Under subsection 47(1), if an annual net fuel adjustment, determined under section 33, of a registered specified rail carrier or a registered rail carrier, for a specified year, for a type of fuel and for a listed province is a negative amount, the carrier may claim a rebate in respect of that annual net fuel adjustment and the listed province.

The amount of the rebate is determined by the formula:

Calculating the net charge

Under section 71, every person that is required to file a return must, in the return, determine the net charge for the reporting period of the person for which the return is required to be filed.

After calculating the charge(s) payable and the rebate(s),^{Footnote 3} if applicable, in respect of fuel or combustible waste and the listed province(s), the registered rail carrier or registered specified rail carrier must determine the net charge for a particular reporting period.

The net charge is calculated using the following formula, which is set out in section 71:

If the net charge for a reporting period of a registered rail carrier or a registered specified rail carrier is a positive amount, the registered rail carrier or registered specified rail carrier must pay that amount to the Receiver General no later than the day on or before which the return for the reporting period is required to be filed (that is, by the end of the month following the reporting period for which the net charge becomes payable).

Interest and/or penalties may apply to late payments. For information on payment methods, go to Payments to the Canada Revenue Agency.

If the net charge for a reporting period of a registered rail carrier or a registered specified rail carrier is a negative amount, the registered rail carrier or registered specified rail carrier may claim the amount of that net charge as a net charge rebate in the return filed under section 69 for that reporting period. The rebate is payable to the registered rail carrier or registered specified rail carrier by the CRA.

Special rules

Fuel brought into a listed province on behalf of a registered rail carrier or a registered specified rail carrier

Under section 10, when another person transports fuel into a listed province on behalf of a registered rail carrier or a registered specified rail carrier, the registered rail carrier or registered specified rail carrier, and not the person transporting the fuel, is considered to have brought the fuel into the listed province.

Similar rules apply when fuel is removed from a listed province.

Fuel in transit through a listed province

Under section 11, fuel in transit through a listed province is deemed not to have been brought into the listed province if the following conditions are met:

• a quantity of fuel is brought into a listed province from a place in Canada in the course of the transportation of the fuel to a place outside the listed province;
• the fuel is transported without being stored in the listed province (otherwise than in a manner that is solely incidental to the transportation); and
• the person bringing the fuel into the listed province is a registered emitter or is registered otherwise than only as a road carrier in respect of that type of fuel.

Similar rules apply under section 12 for imported fuel that is in transit through a listed province.

Fuels in a mixture

Under section 16, a mixture of 2 or more fuels is deemed to be fuel of the type that is present in the highest proportion in the mixture. Therefore, the rate to be used when calculating the amount of the charge payable in respect of a mixture is the rate for the type of fuel present in the highest proportion in the mixture.

Biodiesel and biomethane

When biodiesel contained in light fuel oil or biomethane contained in natural gas exceeds a certain threshold, the number of litres in the case of light fuel oil or cubic metres in the case of marketable natural gas (MNG) or non-marketable natural gas (NMNG) is adjusted through the following formulas.

Light fuel oil that contains more than 5% biodiesel

Under subsection 8(6), the quantity of light fuel oil is calculated using the formula

Natural gas that contains biomethane

Under subsection 8(7), the quantity of MNG or NMNG is calculated using the formula

Claiming a rebate

A registered rail carrier can claim a rebate under section 43, 46, 47 or 49, as explained below.

A registered specified rail carrier can claim a rebate under section 46, 47 or 49, as explained below.

Under section 51, a rebate will not be paid to a person at any time unless the person has filed all returns of which the CRA has knowledge and that are required to be filed on or before that time by the person under the Excise Tax Act, the Income Tax Act, the Excise Act, 2001, and the Air Travellers Security Charge Act.

Fuel removed from a listed province

Under subsection 43(1), a rebate must be paid to a person that is a registered rail carrier and that removes a quantity of fuel from a listed province at a particular time if, at an earlier time in a particular reporting period:

• the person brought the quantity of fuel into the listed province from a place in Canada or imported the fuel at a location in the listed province;
• a charge under section 19 was payable by the person at the earlier time in respect of the fuel and the listed province; and
• that charge was taken into account in the determination of the net charge for the particular reporting period of the person.

The amount of the rebate is equal to the amount of the charge payable under section 19.

The rebate under section 43 is not to be paid in respect of a particular reporting period unless an application for a rebate is filed as part of Form B400-10 with the CRA:

• no later than the day on or before which the return under section 69 is required to be filed for the last reporting period of the person that ends within 2 years after the end of the particular reporting period; and
• with Form B400 and any related schedule in respect of the reporting period in which the amount of the rebate is taken into account in determining the net charge for the reporting period.

A registered specified rail carrier is not eligible to claim a rebate for fuel removed from a listed province.

Net fuel quantity rebate

A person that is a registered rail carrier or a registered specified rail carrier can claim a net fuel quantity rebate under section 46 if a net fuel quantity, determined under section 29 or 31 of the person for a reporting period, for a type of fuel and for a listed province is a negative amount. The amount of the rebate is calculated using the formula set out in subsection 46(2) (refer to the section “Calculating the charge payable or the net fuel quantity rebate” above).

The rebate under section 46 is not to be paid in respect of a particular reporting period unless an application for a rebate is filed as part of Form B400-10 or Form B400-11 with the CRA:

• no later than the day on or before which the return under section 69 is required to be filed for the last reporting period of the person that ends within 2 years after the end of the particular reporting period; and
• with Form B400 and any related schedule in respect of the reporting period in which the amount of the rebate is taken into account in determining the net charge for the reporting period.

Annual net fuel adjustment rebate

A person that is a registered rail carrier or a registered specified rail carrier can claim a net fuel adjustment rebate in respect of an annual net fuel adjustment and a listed province if the annual net fuel adjustment of the person, determined under section 33 for a specified year, for a type of fuel and for a listed province is a negative amount. The amount of the net fuel adjustment rebate is calculated using the formula set out in subsection 47(2) (refer to the section “Annual net fuel adjustment” above).

The rebate under section 47 is not to be paid in respect of a particular reporting period unless an application for a rebate is filed as part of the fuel charge return schedule Form B400-10 or Form B400-11 with the CRA:

• no later than the day on or before which the return under section 69 is required to be filed for the last reporting period of the person that ends within 2 years after the end of the particular reporting period; and
• with Form B400, and any related schedule in respect of the reporting period in which the amount of the rebate is taken into account in determining the net charge for the reporting period.

Payment in excess of the amount payable

Under section 49, a person may claim a rebate if it paid an amount in excess of the amount of the charge that was payable. The rebate is available whether the amount was paid by mistake or otherwise. The amount of the rebate is equal to the amount of the excess.

The rebate payable under section 49 for an amount paid in excess of the amount payable is not to be paid to a person to the extent that:

• the amount was assessed; or
• the amount was taken into account as an amount required to be paid for a reporting period for which the CRA had assessed the person.

This rebate is not to be included in the calculation of the net charge. Instead, a registered rail carrier or a registered specified rail carrier that intends to claim this rebate must submit an amended Form B400 and any related schedule to the CRA.

Further information