Only one claim may be made by a collector in any twelve month period.

1. Rebate of tax may NOT be claimed by a collector with respect to uncollectible debts which are still included as assets in the collector's books of account or which have resulted from taxable sales:

to customers who have made their purchases by the use of credit cards or other credit arrangements through persons other than the collector who made the sale;
which are not within four years of the purchaser's last credit purchase;
made to a customer more than 180 days prior to the date of the final credit sale to the customer.

2. With respect to uncollectible debts other than those in 1. above, all payments on account and the proceeds of the sale from goods repossessed must be applied to the earliest unpaid amounts (both taxable and non-taxable).

3. Interest, finance, carrying, collection or similar charges must be excluded when calculating the amount written off for this claim.

4. Separate calculations must be made for any uncollectible accounts incurred as follows:

where Health Services Tax was charged at 4%;
where Health Services Tax was charged at 10%;
where Health Services Tax was charged at 11%;
where tobacco tax was charged, debts written off on or after June 18, 1996 only;
where gasoline or diesel oil tax was charged, debts written off on or after June 18, 1996 only.

All documentation supporting this claim must be retained by the collector for audit purposes.

Contact the Provincial Tax Commission, Refund Section for a Claim for a tax included in Uncollectible Accounts pursuant to Regulation 3A (Revenue Act Regulations) form.

For more information please see Tax Bulletin 5022