Section 68.21 — Excise Tax Act: Definitions

In this section, arm’s length sale means a sale of goods by a licensed manufacturer to a person with whom the manufacturer is dealing at arm’s length at the time of the sale; ( vente sans lien de dépendance ) fiscal period means a fiscal period as determined for the purposes of the Income Tax Act . ( exercice ) Where ad valorem tax under Part III or VI has been paid by a licensed manufacturer in respect of an arm’s length sale occurring on or after February 16, 1984 and the manufacturer has established, in accordance with generally accepted accounting practices, that any debt owing to him in respect of the sale has become in whole or in part a bad debt and has accordingly written off the debt as a bad debt in his books of account, an amount equal to the proportion of the amount of that tax that the amount of the debt written off is of the price for which the goods were sold shall, subject to this Part, be paid to that manufacturer if he applies therefor in the two years after the end of his fiscal period during which the debt was so written off. Where a licensed manufacturer recovers all or any part of a debt in respect of which an amount is paid to him pursuant to subsection (2), in this subsection referred to as the “refunded amount”, that manufacturer shall forthwith pay to Her Majesty an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid.