Section 263.01 — Excise Tax Act: Restriction on rebate, etc.

A rebate of an amount under any provision of this Act (other than sections 252.4 and 252.41) or a refund or abatement of an amount that, because of subsection 215.1(3) or 216(7), may be granted under section 69, 73, 74 or 76 of the Customs Act shall not be paid or granted to a person to the extent that it can reasonably be regarded that the amount is in respect of tax under subsection 165(2) or section 212.1 that became payable by the person at a time when the person was a selected listed financial institution, or that was paid by the person at that time without having become payable, in respect of property or a service acquired or imported by the person for consumption, use or supply in the course of a business of the person or an adventure or concern in the nature of trade of the person. Subsection (1) does not apply to an amount of tax that became payable by an insurer or that was paid by the insurer without having become payable in respect of property or a service acquired or imported exclusively and directly for consumption, use or supply in the course of investigating, settling or defending a claim under an insurance policy that is not in the nature of accident and sickness or life insurance. Subsection (1) does not apply to an amount of tax that became payable by a surety (within the meaning of subsection 184.1(2)) or that was paid by the surety without having become payable in respect of property or a service acquired or imported exclusively and directly for consumption, use or supply in the course of carrying on, or engaging another person to carry on, the construction of real property in Canada that is undertaken in full or partial satisfaction of the surety’s obligations under a performance bond; and otherwise than for use as capital property of the surety or in improving capital property of the surety. Despite subsection (1), a rebate under section 261.31 in respect of a prescribed amount of tax may be paid to a person that is prescribed for the purpose of subsection 261.31(2).