Guide for Completing the Application for Refund Summary and Schedule 3 PRL - Loss of Product/Overpayment of Tax

Published: March 2010
Content last reviewed: March 2010

The information in this guide will help you complete the Loss of Product/Overpayment of Tax Tobacco/Cigars/Cigarettes Schedule 3 – PRL [PDF - 232 KB]. The guide also provides information about supporting documents, records retention, time limit for applying for a refund, direct bank deposit, and will help you to determine whether you are eligible to claim a refund. The information in this guide is provided as a guideline only and does not replace the law found in the Tobacco Tax Act and related regulations.

Who May Use This Form?

The refund is available to retailers and wholesalers who paid tobacco tax on cigarettes, tobacco or cigars that were lost, destroyed, stolen or contaminated.

Supporting Documents

The refund application Summary and Schedule must be accompanied by the following supporting documents.

  • A copy of an insurance company's settlement offer or written confirmation confirming settlement of any claim.
  • Acceptable proof that the tax amount claimed was remitted to your supplier or directly to the Ministry of Finance (ministry). A copy of a cancelled cheque, a letter from the supplier stating that payment was made in full or a receipted purchase invoices are evidence of the payment of the tax and the date of payment.
  • A copy of any police report for a loss due to theft.
  • A copy of any fire marshal's report for a loss due to fire.
  • Any other information that may be required by the ministry to verify the loss, destruction, theft or contamination.

Claims under $500

If your annual claim total is less than $500, you are not required to send the supporting documentation to the Ministry of Finance with your refund application. However, you must retain the supporting documentation noted in the above section, for a period of seven years and provide the information to the ministry upon request.

Change of Information (Preprinted Application Only)

When completing a preprinted form please make any required corrections by hand on the refund application before submitting.

Tax Rates

The Ontario tax rates are found on the tax rate table provided on the Application for Refund Loss of Product (PRL) Overpayment of Tax.

When completing the Application for Refund online the Ontario tax rates are automatically provided on the schedules.

Identification Number

Provide your federal business number or your MFTT reference number as your Identification No. on the Application. When communicating with the ministry, include your identification number on all correspondence and forms.

Direct Bank Deposit

If you want your refund deposited directly into your bank account, please attach a cheque, marked VOID and showing your name and address, to your refund application or mail it to the Ministry of Finance with a letter requesting direct deposit. Remember to quote your Identification Number on your letter.

If you want to cancel direct deposit, please send a letter to the Ministry of Finance requesting a cancellation.

Records Retention and Time Limit

The refund application must be received by the ministry, within four years from the date of payment of the tax. All records, documents and receipts pertaining to your tax refund claim must be kept for seven years for audit purposes.

For further information regarding records retention, please refer to the Tax Information Bulletin entitled Retention/Destruction of Books and Records. Copies are available at ontario.ca/finance or by calling the ministry at 1 866 ONT-TAXS (1 866 668-8297).

Freedom of Information

Personal information contained within the Application for Refund is collected under the authority of the Tobacco Tax Act, R.S.O. 1990, c.T.10 and will be used for the purposes of the Tobacco Tax Act. Questions about this information collection should be directed to:

Senior Manager, Account Management
Client Services Branch
Ministry of Finance
33 King Street West, PO Box 625
Oshawa ON  L1H 8H9

Mailing Address and Enquiries

Ministry of Finance
Motor Fuels and Tobacco Tax
33 King Street West, PO Box 625
Oshawa ON  L1H 8H9

Toll free 1 866 ONT-TAXS (1 866 668-8297)

Hours of Service Monday to Friday 8:30am to 5:00pm

Teletypewriter (TTY) 1 800 263-7776

Fax 905 433-5680

Website ontario.ca/finance

PLEASE NOTE:

  1. An application for refund includes the Application for Refund – Summary form and an Application for Refund Schedule(s).
  2. Separate applications must be submitted for each incident of loss and each type of loss (Stolen, Destroyed, Contaminated, Loss (e.g. vehicle accident).
  3. When completing the refund application online, you will be automatically taken from the application summary to the schedule(s) and back. The calculation of your entries and carry forward of totals are usually performed automatically.
  4. When completing the refund application by hand, carry forward the totals from the schedule(s) to the Application for Refund – Summary form.
  5. The Application for Refund – Summary form must be signed. Please mail the completed application to the ministry.

DETAILED INSTRUCTIONS

Step 1 Completing the Upper Portion of the Application for Refund - Summary

  • When completing the application manually, provide your legal name and address along with your identification number. If preprinted, verify information and make the necessary corrections on the application.
  • When completing the application online, provide your legal name and address along with your identification number and this information will be carried forward throughout the application process.
  • Select the Tobacco – cigars, cigarettes box for the Product type.
  • Below the Schedule # Name, select box 3 as the Schedule to be completed. When completing the application online you will be taken to the schedule automatically.

Step 2 Completing Application for Refund - Schedule Loss of Product (PRL) - Tobacco Schedule 3

  • When completing the application manually, provide your Identification number. If preprinted, verify information and make the necessary corrections on the application.
  • When completing the application online, your identification number will be carried forward from the Application of Refund – Summary Page 2.

Step 3 Application for Refund – Schedule Loss of Product (PRL) - Tobacco Schedule 3

[A] Loss Of Product

  • A separate schedule must be completed for each incident/date of loss and each type of loss (Stolen, Destroyed, Contaminated, or Loss).
  • Enter the date of the incident.
  • Check the type of loss.

Step 4 Application for Refund - Schedule Loss of Product (PRL) - Tobacco Schedule 3

[B] Refund Calculation

For each loss, by type of product (Cigarettes, Tobacco or Cigars) complete lines 1 to 9.

Group the invoices by date that fall within the same tax rate period. If there is a tax rate change, complete a separate refund claim form.

Cigarettes

Line 1. Total Refundable Cartons of 200 cigarettes
Enter the total number of cartons or partial cartons lost for the date of loss that you have recorded in section [A] on the Application for Refund - Schedule.

Line 2. Ontario Tax Rate
Enter the applicable tax rate per carton. Refer to tax rate table found on the Application for Refund – Page 1.

Line 3. Subtotal ($)
Multiply Total Refundable Cartons (line 1) by Ontario Tax Rate (line 2).

Tobacco

Line 4. Total Refundable Grams
Enter the total number of grams lost for the date of loss that you have recorded in section [A] on the Application for Refund - Schedule.

Line 5. Ontario Tax Rate
Enter the applicable Ontario tax rate per gram. Refer to tax rate table found on the Application for Refund – Page 1.

Line 6. Subtotal ($)
Multiply Total Refundable Grams (line 4) by Ontario Tax Rate (line 5).

Cigars

Line 7. Tobacco Tax Paid on Cigars Purchased ($)
Enter the tobacco tax paid on cigars purchased and in inventory immediately before the date of loss that you have recorded in section [A] on the Application for Refund Schedule.

Line 8. Tobacco Tax Paid on Cigars Loss ($)
Enter the tobacco tax paid on the cigars lost. Must be included in Line 7.

Refund Amount

Line 9. Refund Amount ($)
Add line 3 + line 6 + line 8.

Carry forward this refund amount to line B on the Application for Refund - Summary form.

Step 5 Completing the Lower Portion of the Application for Refund - Summary

  • When completing the application manually, carry forward the refund amount calculated on Line 9 – Refund amount ($) of the Application for Refund – Schedule to line B of the Application for Refund – Summary. When completing the application online the amount will be transferred automatically.
  • On line A Invoice dates, enter the date of the first invoice and the date of the last invoice that are being submitted in support of the refund claim.
  • When completing the application online print 2 copies of the Application for Refund – Summary and Application for Refund – Schedule.
  • Complete the Certification section of the Application for Refund – Summary including an authorized signature and date.
  • Mail one completed Application for Refund – Summary and Schedule along with all supporting documentation to the ministry at the address shown at the top of the Application for Refund – Summary Loss of Product (PRL) / Overpayment of Tax.
  • Maintain one copy for your records.

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