18. (1) In this section,  “accounting principles” means generally accepted accounting principles as recommended by the Accounting Standards Board of the Canadian Institute of Chartered Accountants, as set out in the CICA Handbook; “vendor” includes a person deemed to be a vendor under subsection 13 (3) of the Act.  O. Reg. 444/99, s. 3. (2) In this section, a person shall not be considered to be dealing with another person at arm’s length if they would not be considered to be dealing with each other at arm’s length for the purposes of the Income Tax Act
(Canada).  O. Reg. 444/99, s. 3. (2.1) For the purposes of this section, subsection 13 (3) sets out the circumstances in which a corporation shall be considered to be wholly owned by a person or an individual.  O. Reg. 391/04, s. 3. (3) The Minister may rebate tax to a vendor that has been remitted to the Minister under the Act in respect of a sale if, (a) the vendor shows to the satisfaction of the Minister that there has been a default in the payment to the vendor of all or part of the amount payable to the vendor in respect of the sale; (b) the vendor has written off as a bad debt in the vendor’s books of account the unpaid amount owing to the vendor in respect of the sale; and (c) the write-off of the unpaid amount as a bad debt is in accordance with accounting principles applicable at the time of the write-off.  O. Reg. 444/99, s. 3. (4) Despite subsection (3), no rebate of tax shall be made to a vendor under this section in respect of an unpaid amount if, (a) the vendor does not claim the rebate within four years from the end of the fiscal year in which the vendor wrote off the unpaid amount as a bad debt; (b) the vendor and the purchaser were not dealing at arm’s length at the time of the sale or at the time the vendor wrote off the unpaid amount as a bad debt; (c) the vendor is entitled to offset the unpaid amount against an amount payable by the vendor to the purchaser; (d) the vendor has assigned, without recourse and for consideration, other than for security purposes, part or all of the unpaid amount, whether or not the assignee and the vendor are related persons; or (e) the payment for the purchase was made through the use of a credit card that is not issued by, (i) the vendor, (ii) a corporation that is wholly-owned by the vendor or that wholly owns the vendor, either directly or through one or more wholly-owned corporations, or (iii) a corporation that is wholly-owned by the same corporation that wholly owns the vendor, either directly or through one or more wholly-owned corporations.  O. Reg. 444/99, s. 3. (5) The tax that may be rebated to a vendor under this section in respect of an unpaid amount shall be determined in accordance with the following formula: Rebate = A × B / C where, “A” is the tax remitted by the vendor with respect to the sale, “B” is the unpaid amount less all amounts, if any, required by subsection (6) to be deducted from the unpaid amount for the purposes of determining the amount of the rebate of tax under this section, and “C” is the total amount that was payable in respect of the sale, including the amount of tax imposed by the Act. O. Reg. 444/99, s. 3. (6) For the purposes of determining the amount of a rebate of tax under this section in respect of an unpaid amount, the following amounts, to the extent they are applicable, shall be deducted from the unpaid amount: 1. All interest, finance, carrying, collection or similar charges imposed by the vendor with respect to the sale, except to the extent the charges are deemed to be part of the fair value under subsection 12 (2) for the purposes of determining the amount of tax payable under the Act in respect of the sale. 2. All proceeds of sale received by the vendor on any repossession and resale of the property on account of the unpaid amount. 3. All amounts received by the vendor on the realization of any security given to secure the unpaid amount. 4. If the tangible personal property is repossessed and leased by the vendor or is taken out of inventory and used by the vendor or by others at the vendor’s expense, the fair value of the tangible personal property at the time of the leasing or change in use.  O. Reg. 444/99, s. 3. (7) The following rules apply for the purposes of claiming a rebate of tax under this section: 1. The vendor may claim only one rebate under this section in respect of a sale. 2. The vendor may claim the rebate by making an adjustment to the vendor’s sales tax liability account for the amount of the rebate claimed. 3. The vendor shall make only one adjustment to the vendor’s sales tax liability account during any 12-month period for all claims for rebate of tax under this section, unless the vendor has applied in writing to the Minister for consent to make an additional adjustment and the Minister has consented to the making of the additional adjustment to the account. 4. The vendor shall retain in the vendor’s records sufficient information and documentation to permit the confirmation to the satisfaction of the Minister of the correct amount of the rebate of tax. 5. Where the payment for a purchase was made through the use of a credit card issued by the vendor or by a corporation referred to in subclause (4) (e) (ii) or (iii), but the purchase was not made from the vendor or the corporation, none of the amount of such indebtedness shall be included in the unpaid amount specified as “B” under subsection (5) and where money was paid on the credit card account, such money shall be applied to the earliest indebtedness before determining the unpaid amount specified as “B” under subsection (5).  O. Reg. 444/99, s. 3. (8) If, after claiming a rebate of tax under this section, a vendor recovers from any person or through any means, other than a rebate under this section, any of the unpaid amount in respect of which the rebate of tax was claimed, the vendor shall repay to the Minister by way of adjustment to the vendor’s sales tax liability account the same percentage of the rebate made under this section that the amount recovered by the vendor is of the amount designated as “B” in the formula in subsection (5) in respect of the unpaid amount.  O. Reg. 444/99, s. 3. (9) For the purposes of subsection (8), the repossession of tangible personal property and the sale or use by the vendor or by others at the vendor’s expense of the repossessed property shall be considered to be a recovery of part or all of the unpaid amount in respect of the sale of the property to the extent of the lesser of the unpaid amount and, (a) the proceeds from the sale, if the repossessed property is the subject of a resale; or (b) the fair value of the property if the repossessed property is used by the vendor or by others at the vendor’s expense.  O. Reg. 444/99, s. 3. (10) This section applies in respect of unpaid amounts written off on and after January 1, 1997.  O. Reg. 444/99, s. 3.