ETSL45 - Air Travellers Security Charge (ATSC) - Refunds

From: Canada Revenue Agency

ET/SL 45

October 28, 2002

Notice to all Air Carriers

Travellers pay the Air Travellers Security Charge (ATSC) on air transportation within Canada and from Canada to foreign destinations. This notice explains when a refund of the ATSC may be allowed and how to apply for a refund.

For more information about the ATSC, please see "Contact us" at the end of this notice.

General

Section 32 of the Air Travellers Security Charge Act (ATSCA) authorizes a designated air carrier, in certain circumstances, to refund or credit an amount that it collected as a charge. Section 33 of the ATSCA states that people also have the option of applying to the Canada Customs and Revenue Agency (CCRA) for a refund.

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

The following examples show how the ATSCA refund provisions apply when an air transportation service is not used or is only partially used. Briefly:

  • in the examples where a refund is not allowed, there is a chargeable emplanement in Canada;
  • in the examples where a refund is allowed, there is no chargeable emplanement in Canada.

(A) Air transportation acquired in Canada for air travel within the continental zone

The continental zone includes Canada, the United States (except Hawaii), and the islands of St. Pierre and Miquelon.

Example 1

If a passenger on a Toronto-Montréal-Toronto journey uses no part of the air transportation service, he or she would be entitled to a full refund of $22.43 ATSC plus GST.

Example 2

If a passenger on a Toronto-Montréal-Toronto journey uses only the Toronto-Montréal portion, he or she would not be entitled to a partial refund of $11.22 ATSC for the unused portion.

(B) Air transportation acquired in or outside Canada for air travel within the continental zone

Example 1

If a passenger on a Toronto-Miami-Toronto journey uses only the Toronto-Miami portion, he or she would not be entitled to a full refund of $11.22 ATSC.

Example 2

If a passenger on a Miami-Toronto-Miami journey uses only the Miami-Toronto portion, he or she would be entitled to a full refund of $12 ATSC.

(C) Air transportation acquired in or outside Canada for air travel outside the continental zone

Example 1

If a passenger on a Montréal-Paris-Montréal journey uses only the Montréal-Paris portion, he or she would not be entitled to a full refund of $24 ATSC.

Example 2

If a passenger on a Paris-Montréal-Paris journey uses only the Paris-Montréal portion, he or she would be entitled to a full refund of $24 ATSC.

Example 3

If a passenger on a Vancouver-Tokyo-Vancouver journey uses only the Vancouver-Tokyo portion, he or she would not be entitled to a full refund of $24 ATSC.

Example 4

If a passenger on a Tokyo-Vancouver-Tokyo journey uses only the Tokyo-Vancouver portion, he or she would be entitled to a full refund of $24 ATSC.

Refund process

People who choose to apply to the CCRA for their refund must submit Form B254, Application for Refund of the Air Travellers Security Charge, no later than two years after they paid the ATSC. Form B254 is available on the CCRA Web site or by calling (877) 432-5472 (toll-free) or (902) 432-5472.

The completed form should be mailed to the following address:

Excise and Other Levies Unit
CCRA Summerside Tax Centre
275 Pope Road, Suite 101
Summerside PE C1N 6E7
CANADA

Supporting documents, such as unused airline tickets and receipts, should be included with the ATSC refund claim. The CCRA may request and review any information it deems necessary to determine whether a refund is allowed and the amount of ATSC to be refunded. See Form B254 for more details on this process.

Legislative references

Sections 32 and 33 of the ATSCA are available at www.parl.gc.ca (click on "Bills" in the upper navigation bar, then on "House of Commons/Government Bills" in the left-hand menu, then on "37th Parliament, 1st Session" in the left-hand menu, and then on Bill "C-49").

Contact us

More information about the ATSC is available in Excise Taxes and Special Levies Notice 0043 or by calling the Excise and Other Levies Unit at (877) 432-5472 toll-free from Canada or the United States. If you reside outside these countries, call (902) 432-5472. Service is available in both English and French.

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