Section 263.01

Subsection 263.01(1)

Administrative Policy

19 January 2019 Interpretation 165888

tax paid in error was not tax that was subject to the s. 263.01 restriction

CRA allowed a rebate claim of ACo (a SLFI) for amounts of federal tax paid in error. No provincial HST was refunded based on the understanding that the s. 263.01 restriction applied.

Headquarters indicated that the s. 123(1) definition of tax “is interpreted by it to include only amounts of tax that are actually payable under Part IX, such as tax under subsections 165(1) and (2),” so that “an amount paid in error as or on account of tax is not tax for GST/HST purposes. After finding on this basis that the rebate amount should not be included in s. (iii) of G2 of s. 46(a) of the Selected Listed Financial Institution Attribution Method (GST/HST) Regulations (SLFI Regulations) in determining Element G of ACo’s special attribution method (SAM) formula calculation, Headquarters went on to find that s. 263.01(1) was inapplicable in this situation, stating:

Given the definition of the word tax in subsection 123(1) and the use of the phrase “an amount is in respect of tax” in subsection 263.01(1), the restriction in that subsection would not apply to the rebate of an amount paid in error as or on account of tax by a person that was an SLFI at the time the amount was paid.

Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Regulations - Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations - Section 46 - Paragraph 46(a) - Element G - Subparagraph (iii) refund of tax paid in error not included in refunded tax referred to in G 230
Tax Topics - Excise Tax Act - Section 225.2 - Subsection 225.2(2) tax paid in error not included in A and F of formula 257
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Tax tax does not include tax paid in error 102