News and Insights

CRA Excise Duty Notice ETSL-069

Tax Development May 15, 2008

“Proposed Amendment to the Ships’ Stores Regulations to Include Renewable Fuels”

Prior to April 1, 2008, sections 23.4 and 23.5 of the Excise Tax Act provided for an excise tax exemption in the case of the alcohol portion of gasoline-alcohol and diesel-alcohol blended fuel and bio-diesel fuel, whether blended or not. These exemptions were repealed effective April 1, 2008. The Canada Revenue Agency has issued this notice to advise taxpayers that the Government is proposing to amend the Schedule to the Ships’ Stores Regulations to include renewable fuels in the list of goods that qualify as ships’ stores. The current list of goods eligible for exemption in the Schedule to these Regulations includes “petroleum products”, but does not extend relief to renewable fuels.