Excise Tax Act — E-15 296
 amount became payable by the person, the person defaulted in paying or remitting under this Part and that remains unpaid or unremitted on the day notice of the assessment is sent to the person, as if the person had, on the particular day, paid or remitted the amount so applied on account of the outstanding amount; (b) apply (i) all or part of the allowable rebate that was not applied under subsection (2.1) or paragraph (a) together with interest at the prescribed rate on all or that part of the allowable rebate, computed for the period beginning on the day that is 30 days after the later of (A) the particular day, and (B) where the assessment is in respect of net tax for the particular reporting period, the day on which the return for the particular reporting period was filed, and ending on the day on which the person defaulted in paying or remitting the outstanding amount referred to in subparagraph (ii) against (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying or remitting under this Part and that remains unpaid or unremitted on the day notice of the assessment is sent to the person, as if the person had, on the later day, paid the amount and interest so applied on account of the outstanding amount; and (c) refund to the person that part of the allowable rebate that was not applied under any of subsection (2.1) and paragraphs (a) and (b) together with interest at the prescribed rate on that part of the allowable rebate, computed for the period beginning on the day that is 30 days after the later of (i) the particular day, and (ii) where the assessment is in respect of net tax for the particular reporting period, the day on which the return for the particular period was filed, and ending on the day the refund is paid to the person. Limitation on refunding overpayments (4) An overpayment of net tax for a particular reporting period of a person and interest thereon under paragraphs (3)(b) and (c) (a) shall not be applied under paragraph (3)(b) against an amount (in this paragraph referred to as the “outstanding amount”) that is payable or remittable by the person unless the input tax credit or deduction to which the overpayment is attributable would have been allowed as an input tax credit or deduction, as the case may be, in determining the net tax for another reporting period of the person if the person had claimed the input tax credit or deduction in a return under Division V filed on the day the person defaulted in paying or remitting the outstanding amount and the person were not a specified person for the purposes of subsection 225(4); and (b) shall not be refunded under paragraph (3)(c) unless the input tax credit or deduction would have been allowed as an input tax credit or deduction, as the case may be, in determining the net tax for another reporting period of the person if the person had claimed the input tax credit or deduction in a return under Division V filed on the day notice of the assessment is sent to the person. Limitation on refunding allowable rebates (4.1) An allowable rebate referred to in subsection (2.1) or a part thereof that was not applied under that subsection and interest thereon under paragraphs (3.1)(b) and (c) (a) shall not be applied under paragraph (3.1)(b) against an amount (in this paragraph referred to as the “outstanding amount”) that is payable or remittable by a person unless the allowable rebate would have been payable to the person as a rebate if the person had claimed it in an application under this Part filed on the day the person defaulted in paying or remitting the outstanding amount and, in the case of a rebate under section 261, if subsection 261(3) allowed the person to claim the rebate within four years after the person paid or remitted the amount in respect of which the rebate would be so payable; and (b) shall not be refunded