Excise Tax Act (R.S.C., 1985, c. E-15)

Marginal note:Specific tax

• 12 (1) There shall be imposed, levied and collected an air transportation tax, determined under section 13, on each amount paid or payable in Canada for transportation of a person by air where that transportation begins at a point in the taxation area and ends at a point outside the taxation area.

• Marginal note:Idem

  (2) There shall be imposed, levied and collected an air transportation tax, determined under section 13, on each amount paid or payable outside Canada for the transportation of a person by air where such transportation

  • (a) begins at a point in the taxation area and ends at a point outside the taxation area, and

  • (b) includes an emplanement by the person on an aircraft at an airport in Canada on a specific flight having as a destination an airport outside Canada and subsequent deplanement by the person from the flight at an airport outside Canada,

  payable by the person at the time when, in respect of the transportation, he emplanes at the airport in Canada described in paragraph (b) on the aircraft therein described, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person, in a manner and form and to a member of a class of persons prescribed by regulation of the Governor in Council.

• Marginal note:Transportation by air

  (3) For the purposes of subsection (1), transportation by air begins at a point in the taxation area and ends at a point outside the taxation area if the transportation or any part thereof includes at least one departure from a point in the taxation area, other than a departure resulting from a transfer stop, to a destination outside the taxation area.

• Marginal note:Idem

  (4) For the purposes of subsection (2), transportation by air begins at a point in the taxation area and ends at a point outside the taxation area if the transportation or any part thereof includes at least one departure from a point in Canada, other than a departure resulting from a transfer stop, to a destination outside the taxation area, whether or not there are any intermediate stops.

Marginal note:Amount of tax

• 13 (1) Subject to subsection (2), the tax imposed under subsection 12(1) for transportation of a person by air shall be

  • (a) an amount that is the lesser of

    • (i) the amount of

      • (A) $30, if the amount paid or payable for transportation of the person by air is paid or payable after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or

      • (B) $55, in any other case, and

    • (ii) such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport; or

  • (b) fifty per cent of the amount provided in paragraph (a) when the person is a child under twelve years of age and is being transported at a fare reduced fifty per cent or more below the applicable fare.

• Marginal note:Charter flights

  (2) Where the amount paid or payable in Canada for air transportation is for transportation by an aircraft that has been chartered for the purpose by one or more charterers, the tax imposed under subsection 12(1) on the amount paid or payable to a certified air carrier by each charterer shall be an amount that is the aggregate of

  • (a) the lesser of

    • (i) the amount of

      • (A) $30, if the amount paid or payable for the transportation of a person by air is paid or payable to a certified air carrier by the charterer after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or

      • (B) $55, in any other case, and

    • (ii) such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport,

    in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by a person, other than a person described in paragraph (b); and

  • (b) fifty per cent of the amount provided in paragraph (a) in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by a child who is under twelve years of age and is being transported at a fare reduced fifty per cent or more below the applicable fare.

• Definition of emplanement

  (2.1) For the purposes of subsection (2), emplanement means an emplanement by a person at an airport in Canada on a specific flight that has as a destination an airport outside Canada and from which the person deplanes at an airport outside Canada.

• Marginal note:Amount of tax

  (2.2) The tax imposed under subsection 12(2) for transportation of a person by air shall be

  • (a) where the first emplanement of the person occurs at an airport in Canada,

    • (i) an amount that is the lesser of

      • (A) the amount of

        • (I) $30, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 and the first emplanement by the person, within the meaning of subsection (2.1), occurs after February 28, 1998, or

        • (II) $55, in any other case, and

      • (B) such amount as may, for the purposes of this paragraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, or

    • (ii) 50% of the amount provided in subparagraph (i) where the person is a child under twelve years of age and is being transported at a fare reduced 50% or more below the applicable fare; and

  • (b) in any other case,

    • (i) an amount that is the lesser of

      • (A) the amount of

        • (I) $15, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 and the first emplanement by the person, within the meaning of subsection (2.1), occurs after February 28, 1998, or

        • (II) $27.50, in any other case, and

      • (B) such amount as may, for the purposes of this paragraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, or

    • (ii) 50% of the amount provided in subparagraph (i) where the person is a child under twelve years of age and is being transported at a fare reduced 50% or more below the applicable fare.

• Marginal note:Non-application

  (3) Subsections 12(1) and (2) do not apply in respect of the transportation of a person by air at a fare ninety per cent or more below the applicable fare.

Marginal note:More than one amount payable

• 13.1 (1) Notwithstanding sections 11 and 13 but subject to subsection 11(3) and subsection (2) of this section, where two or more amounts are paid or payable at the same time for transportation of a person by air on a continuous journey,

  • (a) the total of the taxes imposed on all such amounts under subsection 10(1) or (2), determined under subsection 11(1), shall not exceed the lesser of

    • (i) the amount that is

      • (A) the total of 4% of the aggregate of all such amounts and $3, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or

      • (B) the total of 7% of the aggregate of all such amounts and $6, in any other case, and

    • (ii) the amount, if any, prescribed by order of the Governor in Council under paragraph 11(1)(b);

  • (b) the total of the taxes imposed on all such amounts under subsections 10(1) and 12(1), determined under subsections 11(1) and 13(1), as applicable, shall not exceed the amount determined under subsection 13(1) in respect of any such amount in respect of which that subsection applies; and

  • (c) the total of the taxes imposed on all such amounts under subsections 10(2) and 12(2), determined under subsections 11(1) and 13(2.2), as applicable, shall not exceed the largest amount determined under subsection 13(2.2) in respect of any such amount.

• Marginal note:Restriction on reduction of tax

  (2) Subsection (1) does not apply to reduce any tax imposed under this Part in respect of transportation of a person by air unless the licensed air carrier or the carrier’s agent from whom the transportation is purchased records on each ticket issued at the same time the following information:

  • (a) ticket numbers, including air carrier codes, for all flights comprising the continuous journey; and

  • (b) flight numbers for all flights comprising the continuous journey.

Marginal note:When and by whom tax payable

14 The tax on each amount paid or payable in Canada for transportation of a person by air is payable

• (a) at the time when the amount is so paid or becomes payable and in any case prior to the provision of the transportation; and

• (b) by the person making the payment.

Marginal note:Employees of foreign country

15 This Part does not apply in the case of any amount paid for transportation by air of a person described in section 2 of Part II of Schedule III.

Marginal note:Amount deemed paid in Canada

• 16 (1) Where an amount is paid or payable outside Canada for the transportation of a person by air

  • (a) by transmission from within Canada to a place outside Canada, by means of telegraph or mail, of cash, cheque, postal telegram, money order or any similar draft to a ticket office, travel agency, air carrier or any representative of any of them,

  • (b) by delivery of the amount to an agency located within Canada for transmission to a ticket office, travel agency, air carrier or any representative of any of them located in any place outside Canada, or

  • (c) by any other arrangement with a person outside Canada for the benefit or convenience of a person in Canada,

  the amount shall, for the purposes of this Part, be deemed to be an amount paid or payable in Canada and not outside Canada.

• Marginal note:Charter flights

  (2) Where an amount is paid or payable outside Canada for the charter of an aircraft for the transportation of a person by air and the transportation begins at a point in Canada, the amount shall, for the purposes of this Part, be deemed to be an amount paid or payable in Canada and not outside Canada.

Marginal note:Elimination of air transportation tax

16.1 No tax shall be imposed, levied or collected on any amount paid or payable for the transportation of a person by air that

• (a) in the case of tax imposed under subsection 10(1) or 12(1), begins after October 31, 1998; or

• (b) in the case of tax imposed under subsection 10(2) or 12(2), does not include an emplanement of the person, within the meaning of subsection 13(2.1), before November 1, 1998.

Licences

Marginal note:Duty to apply for licence

• 17 (1) Subject to this section, every certified air carrier, other than an air carrier that provides only air transportation that is exempt from the operation of this Part pursuant to paragraph 21(d), shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part.

• Marginal note:Granting of licence

  (2) The Minister may grant a licence to any person applying therefor under subsection (1).

• Marginal note:Cancellation

  (3) The Minister may cancel a licence issued under this Part if, in his opinion, it is no longer required for the purposes of this Part.

• Marginal note:Application

  (4) Subsection (1) applies only to a certified air carrier that provides air transportation before November 1, 1998.

Collection of Tax

Marginal note:Duty of licensed air carrier

• 18 (1) Every licensed air carrier is an agent of the Minister and as such shall, as provided in this section,

  • (a) levy and collect any taxes imposed by this Part for the transportation of a person by air; and

  • (b) make adjustments in or refund any portion of the tax paid on the transportation of a person by air that has not been provided or only partially provided or any tax that has been collected in error by the licensed air carrier.

• Marginal note:Collection of tax

  (2) The tax imposed by this Part on each amount paid or payable in Canada for transportation of a person by air shall be collected by the licensed air carrier to whom payment for the transportation is made or is owing.

• Marginal note:Idem

  (3) The tax imposed by this Part on each amount paid or payable outside Canada for transportation of a person by air that is payable by the person at the time when he emplanes on an aircraft at an airport in Canada shall be collected by the licensed air carrier on whose aircraft the person emplanes, in this subsection referred to as the “emplaning air carrier”, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person to the emplaning air carrier in a manner and form prescribed by regulation of the Governor in Council.

• Marginal note:Idem

  (4) In the case of tax imposed by this Part on any amount paid or payable in Canada for transportation of a person by air, where the transportation of a person by air is being provided by several air carriers, one or more of whom are licensed, the tax, where applicable, shall be collected by the licensed air carrier who sells the transportation by air or, if the transportation is not sold by a licensed air carrier, by the first licensed air carrier who provides any part of the transportation.

• Marginal note:Adjustments and refunds where tax reduced for continuous journey

  (5) Where tax has been reduced pursuant to subsection 13.1(1) in respect of two or more amounts paid or payable at the same time for transportation of a person by air on a continuous journey, no adjustment in or refund of all or any portion of the tax paid shall be made unless all of the tickets purchased at the same time for the transportation are cancelled at the same time.