Refund re uncollectible debt
 26. (1) A collector may apply to the Minister for a refund of the amount paid by it on account of taxes paid under the Act in respect of liquor sold by it if all or part of the sale price has not been paid and has become an uncollectible debt. O. Reg. 257/10, s. 26 (1); O. Reg. 744/21, s. 17 (1). (2), (2.1) Revoked: O. Reg. 744/21, s. 17 (2). (3) The applicant shall deliver the application to the Minister, in a form acceptable to the Minister, within four years after the following date: 1.  For an uncollectible debt that is not a receivership debt or a bankruptcy debt, the last day of the applicant’s fiscal year in which it writes off the debt as an uncollectible account. 2.  For a receivership debt, the date on which the applicant files its claim with the debtor’s receiver. 3.  For a bankruptcy debt, the date on which the applicant files its claim with the trustee in bankruptcy. O. Reg. 257/10, s. 26 (3). (4) The application must include the following information and documents and such other information as the Minister may request: 1.  Copies of all invoices for the sale of liquor in respect of which the refund is claimed. 2.  Proof satisfactory to the Minister that the amount claimed was remitted to the Minister under the Act or was paid over as required under the Act for remittance to the Minister. 3.  A signed statement by the applicant certifying the amount of the debt and certifying that the applicant does not have any right to receive any payment in satisfaction of all or part of the debt from any person other than the debtor or the debtor’s representative. 4.  Proof satisfactory to the Minister that all reasonable collection action has been taken to obtain payment of the debt, that the debt is unsecured, that the debt is uncollectible and that the applicant has written off the debt as uncollectible in accordance with generally accepted accounting principles. 5.  If the debt is a receivership debt, a signed statement by the applicant certifying that the applicant has filed with the debtor’s receiver a claim in respect of the debt to which the refund relates. 6.  If the debt is a bankruptcy debt, a copy of the applicant’s proof of claim in the bankruptcy in respect of the debt to which the refund relates, proof satisfactory to the Minister that the proof of claim was not disallowed and proof satisfactory to the Minister that the applicant will not receive payment of the debt from the trustee in bankruptcy or another person. 7.  If the debt is a receivership debt or a bankruptcy debt, an assignment to the Minister in a form satisfactory to the Minister of the portion of the debt equal to the amount of the refund claimed. O. Reg. 257/10, s. 26 (4); O. Reg. 189/17, s. 7 (2). (5) The Minister may refund to the applicant the amount that has been remitted to the Minister under the Act or paid over as required under the Act for remittance to the Minister in respect of the uncollectible debt as determined using the formula, (A/B) × C in which, “A”  is the amount of the uncollectible debt, “B”  is the total sale price of the liquor, and “C”  is the amount remitted to the Minister or paid over for remittance to the Minister in respect of the liquor. O. Reg. 257/10, s. 26 (5); O. Reg. 189/17, s. 7 (3). (6) The Minister shall not make a refund to an applicant if any of the following circumstances exist: 1.  If the sale was made in contravention of any applicable law. 2.  If the Minister is not satisfied that the debt is uncollectible. 3.  For uncollectible debt relating to the sale of beer, if any portion of the sale price has been assigned by contract, with or without recourse, to a person other than the Minister unless it has been assigned for security purposes only. 4.  If the applicant and the debtor were not dealing at arm’s length within the meaning of section 251 of the Income Tax Act (Canada) at the time of the sale of the liquor. 5.  If a refund of an amount on account of the tax has previously been made, or if the applicant is otherwise entitled under the Act to apply to receive a refund of the amount or to receive an allowance in compensation for the amount. O. Reg. 257/10, s. 26 (6); O. Reg. 189/17, s. 7 (4). (7) Instead of paying a refund, the Minister may permit the applicant to deduct the amount of the refund from a future remittance under the Act if the liquor was manufactured by the applicant. O. Reg. 257/10, s. 26 (7); O. Reg. 189/17, s. 7 (5). (8) In this section, “bankruptcy debt” means a debt incurred by a person who subsequently becomes a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada); (“créance de faillite”) “receivership debt” means a debt owed by a debtor who is in receivership and whose property is under the control of a receiver; (“créance de mise sous sequester”) “sale price” includes the tax or amount on account of the tax under the Act and any other applicable sales tax in respect of the liquor. (“prix de vente”) O. Reg. 257/10, s. 26 (8); O. Reg. 189/17, s. 7 (6).