Questions and Answers - Air Travellers Security Charge (ATSC)

1. What are the applicable ATSC rates?
2. What is a chargeable emplanement?
3. What is not considered a chargeable emplanement?
4. Which airports are considered listed airports?
5. Will air travel still be subject to the ATSC if I am traveling from a listed airport, where I am not required to pass through security, to another listed airport?
6. What is the maximum ATSC rate for a continuous journey?
7. Will air travel by an infant under the age of two be subject to the ATSC?
8. Can you provide some examples on how the ATSC is applied to domestic air travel?
9. How will the ATSC be calculated on the purchase of an airline ticket?
10. Will the ATSC be refunded if I cancel my airline ticket?
11. Will a ticket acquired using the redemption of Air Miles, AeroPlan Points, or similar reward programs be subject to  the ATSC?
12. Will the ATSC apply to free air travel donated by an air carrier to a registered charity?
13. Who is required to register for the collection of the ATSC?
14. What are the reporting requirements for ATSC registrants?
15. What is the due date for registrants to submit ATSC remittances?
16. Can the monthly ATSC reporting period be determined using fiscal months?
17. Can branches or divisions of an ATSC registrant file separate returns?
18. Will Canadian financial institutions accept ATSC remittances?
19. Who can I contact to get additional information on the ATSC?

1. What are the applicable ATSC rates?

For more information, refer to Excise Taxes and Other Levies Notice ETSL81, Increases to Air Travellers Security Charge Rates Effective May 1, 2024, and go to Air Travellers Security Charge (ATSC) Rates.

2. What is a chargeable emplanement?

A chargeable emplanement means an embarkation by an individual at a listed airport on an aircraft operated by a particular air carrier.

3. What is not considered a chargeable emplanement?

The following will not be considered a chargeable emplanement:

• An individual embarks from a listed airport on a direct flight to a destination in Canada that is not a listed airport;
• Embarkation of an air service is provided on an aircraft for which the maximum take-off weight does not exceed 2,730 kilograms;
• Embarkation of an air service is in the course of an air ambulance service;
• An airline employee of a particular carrier or of another air carrier that is a subsidiary wholly-owned corporation of the particular air carrier whose embarkation is in the course of employment travel;
• An infant under the age of two that has not been issued a ticket that entitles the infant to occupy a seat for part of the air service that includes a chargeable emplanement; and
• Travel by diplomats.

4. Which airports are considered listed airports?

The following airports are considered listed airports:

For more information, see Excise Taxes and Other Levies Notice ETSL52, Notice to All Air Carriers: Changes to the List of Airports Where the Air Travellers Security Charge is Levied.

5. Will air travel still be subject to the ATSC if I am traveling from a listed airport, where I am not required to pass through security, to another listed airport?

Whether or not an individual passes through security, air travel from a listed airport to another listed airport is considered a chargeable emplanement and is, therefore, subject to the ATSC.

6. What is the maximum ATSC rate for a continuous journey?

For more information, refer to Excise Taxes and Other Levies Notice ETSL81, Increases to Air Travellers Security Charge Rates Effective May 1, 2024, and go to Air Travellers Security Charge (ATSC) Rates.

7. Will air travel by an infant under the age of two be subject to the ATSC?

The ATSC does not apply to an infant under the age of two if the infant has not been issued a ticket entitling him or her to occupy a seat for part of the air service that includes a chargeable emplanement.

8. Can you provide some examples on how the ATSC is applied to domestic air travel?

The following chart illustrates some examples on when the ATSC is applied to domestic air travel acquired in Canada:

Any examples involving connections or stopovers are not considered direct flights.

Connections
For domestic or transborder continental travel, a passenger's waiting time between flights is considered a connection if the time is:

• 4 hours or less; or
• the time until the next available flight.

For international travel, a passenger's waiting time between flights is considered a connection if the time is:

• 24 hours or less; or
• the time until the next available flight.

Stopovers
For domestic and transborder continental travel, a passenger's waiting time between flights is considered a stopover if the time is longer than:

• 4 hours; or
• the time until the next available flight.

For international travel, a passenger's waiting time between flights is considered a stopover if the time is longer than:

• 24 hours; or
• the time until the next available flight.

9. How will the ATSC be calculated on the purchase of an airline ticket?

The following examples illustrate the application of the ATSC on an airline ticket:

For more information, refer to Excise Taxes and Other Levies Notice ETSL81, Increases to Air Travellers Security Charge Rates Effective May 1, 2024, and go to Air Travellers Security Charge (ATSC) Rates.

10. Will the ATSC be refunded if I cancel my airline ticket?

When a passenger uses no part of an air transportation service, a designated air carrier or the CRA may credit or refund the ATSC. When an air transportation service is only partially used, a designated air carrier or the CRA may credit or refund the ATSC if the used part of the air transportation service was not subject to a charge.

For more information, see Excise Taxes and Other Levies Notice ETSL45, Notice to all Air Carriers : Air Travellers Security Charge (ATSC) - Refunds.

11. Will a ticket acquired using the redemption of Air Miles, AeroPlan Points, or similar reward programs be subject to the ATSC?

The ATSC is applicable.

12. Will the ATSC apply to free air travel donated by an air carrier to a registered charity?

The ATSC will not apply to air travel that is donated for no consideration by an air carrier to a registered charity that arranges free flights for individuals (for example, for medical purposes) as part of carrying out its charitable purposes. For more information, see Hope Air v. The Queen (Tax Court of Canada).

13. Who is required to register for the collection of the ATSC?

All designated air carriers who provide air transportation to individuals on an aircraft having a maximum certified take-off weight greater than 2,730 kilograms and whose service includes chargeable emplanements must register to collect the ATSC.

For more information, see Excise Taxes and Other Levies Notice ETSL43, Notice to all Air Carriers - Imposition of the air travellers security charge.

14. What are the reporting requirements for ATSC registrants?

Every designated air carrier is required to file Form B249, Air Travellers Security Charge Return by the last day of each month, indicating the total ATSC collected or collectible by the carrier or its agent for the preceding month. If no amounts have been collected or are collectible in that month, a nil return must still be filed.

15. What is the due date for registrants to submit ATSC remittances?

All ATSC registrants shall remit by the last day of each month all amounts collected or collectible by the carrier or its agents for the preceding month.

16. Can the monthly ATSC reporting period be determined using fiscal months?

Yes. Reporting periods for the ATSC can be determined using fiscal months.

17. Can branches or divisions of an ATSC registrant file separate returns?

An ATSC registrant can apply to have their branches or divisions file separate returns, provided the branches or divisions can be separately identified by reference to the location or nature of activities and separate books and records are maintained.

18. Will Canadian financial institutions accept ATSC remittances?

All Canadian financial institutions will accept ATSC remittance form B250. As well, all ATSC payments in excess of $50,000 must be remitted at a Canadian financial institution.

19. Who can I contact to get additional information on the ATSC?

Individuals in Canada and the United States with ATSC registration or account-related questions (e.g., relating to Form B248 or Form B249) can call the Specialty Business Returns Unit of the Summerside Tax Centre at 1-877-432-5472 . Individuals outside these countries can call 902-432-5472 . Individuals with technical questions can call 1-866-330-3304 .