Published: May 2012
Content last reviewed: May 2012

The information in this guide will help beer tax collectors that are not required to complete and file monthly returns (i.e., licensees) complete the Application for Refund – Loss of Product (PRL) form, Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996. This guide also provides information about supporting documents, records retention, time limit to apply for a refund, direct bank deposit, and will help a collector determine whether it has an eligible claim for refund.

The information provided is a guideline only and does not replace the law found in the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996, (Act) and related regulations.

Who May Use This Form?

The refund for loss of product application is available to beer tax collectors in Ontario who are not required to complete monthly returns and who paid amounts on account of the beer tax on product that was stolen, destroyed (e.g., by fire), or lost (e.g., vehicle accident) prior to the sale of the product to purchasers. Beer tax collectors who are required to complete and file monthly returns and who experience these types of loss after beer tax has been remitted on that beer claim a credit through their returns.

Do not use this application to submit refund claims for beer that has been returned to the manufacturer for destruction as unconsumable (e.g., stale beer). These returns are processed through the supplier from whom you purchased the beer.

Note: Not all beer sold in Ontario is subject to the beer tax. For example, beer purchased from the Liquor Control Board of Ontario (LCBO) or from a person who purchased from the LCBO is not subject to the beer tax, nor is imported beer. As a result, no beer tax or amounts on account of the beer tax have been paid on such purchases and no refund is available from the ministry. The list of beer manufacturers' brands that are subject to the beer tax (if not purchased from the LCBO) is available at ontario.ca/finance.

General Information

Complete Your Application for Refund – Loss of Product (PRL) Form Online or By Hand

Note: Because the beer basic tax rates are adjusted annually, ensure that the form you complete covers the effective dates that apply to your claim. The effective dates are found at the top right portion of the first page of the form.

Visit the ministry's website ontario.ca/finance for the application (enter webpage number "3067" into the "Find page" field located at the bottom of the website). The refund application can be completed online (with the tax rates, schedules and calculations automatically provided) but cannot be submitted online. It must be printed, signed and mailed to the ministry address noted below.

Blank copies of the application for completion by hand can be requested from the ministry by contacting us at 1 866 ONT-TAXS (1 866 668-8297).

Identification Number

Your Identification Number is your Business Number or the Beer and Wine Taxes reference number assigned to you by the ministry.

Change of Information

Please notify the ministry of any changes to your name or address. The ministry address and telephone number are included at the end of this section. When contacting the ministry be sure to use your Identification Number.

Supporting Documents

The Application for Refund – Loss of Product (PRL) must be accompanied by the following supporting documents (where applicable):

  • A copy of any settlement claim or written confirmation from an insurer of the settlement of a claim in respect of the loss.
  • Acceptable proof that the tax amount claimed was remitted to your supplier or directly to the Ministry of Finance. A copy of a cancelled cheque, a letter from the supplier stating that payment was made in full or 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 theft, destruction, or loss.

Certification

The application form must be signed and dated by an authorized signing officer. The information contained in the application must, to the best of the knowledge and belief of the authorized signing officer, be true, correct and complete.

If this application is signed by a third party (such as your accountant or solicitor), the ministry needs your authorization for the third party to represent you and must have a properly completed Authorizing or Cancelling a Representative form for that person in order to process the application. Forms are available on the ministry's website ontario.ca/finance (enter webpage number "113" into the "Find page" field located at the bottom of the website).

The name and title of the person signing the application must be printed legibly in the space provided.

Penalty

In addition to denying all or part of the amount claimed as a refund, a penalty in an amount not more than the amount denied may be assessed where an applicant or another person on the applicant's behalf misrepresents a material fact on or in connection with the refund application or in a document referred to in or delivered in support of the application.

Charges may also be laid and fines result where a person obtains or attempts to obtain a refund by deceit, falsehood or any other fraudulent means.

Direct Bank Deposit

For your refund to be deposited directly into your bank account, please provide a cheque marked "VOID" showing your name and address and attach it to your refund application or mail it to the ministry with a letter requesting direct deposit. Remember to quote your Identification Number on your letter.

If you wish to cancel direct deposit, please send a letter to the ministry requesting a cancellation.

Records Retention and Time Limit

The refund application must be received by the ministry within four (4) years after the date of your loss.

In order to enable the accurate determination of the tax collectable, payable and refundable under the Act, you are required to keep at your principal place of business or residence in Ontario:

  • records and books of account in support of all entries on the application, and
  • every document which verifies the information in the records and books.

You must retain these items for a period of seven (7) years following the end of your current fiscal year.

For further information regarding records retention, please refer to the Tax Information Bulletin 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 collected within the Application for Refund – Loss of Product (PRL) is collected under the authority of the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996, and will be used for the purposes of ensuring compliance with the legislation and its related regulations. Questions about the collection of this information should be directed to an agent with the ministry at 1 866 ONT-TAXS 1 866 668-8297) or in writing to:

Senior Manager, Account Management
Ministry of Finance
Client Services Branch
33 King Street West
Oshawa ON  L1H 8H5

Telephone: 1 866 ONT-TAXS (1 866 668-8297) ext. 16058

Mail Your Form To:

Mail your completed application with supporting documentation to:

Ministry of Finance
Client Services Branch
33 King St West
PO Box 625
Oshawa ON  L1H 8H9

Enquiries

Address

Ministry of Finance
Client Services Branch
33 King Street West
PO Box 625
Oshawa ON  L1H 8H9

  • Website ontario.ca/finance
  • Toll free 1 866 ONT-TAXS (1 866 668-8297)
  • Teletypewriter (TTY) 1 800 263-7776

Please Note:

  1. An application for refund includes the Application for Refund – Summary form and Application for Refund –Schedule form.
  2. Because the beer basic tax rates are adjusted annually, complete a separate Application for Refund – Loss of Product (PRL) claim with the effective dates that cover the date the amount on account of tax on that beer was paid. Separate applications must be submitted for each incident of loss and each type of loss (Stolen, Destroyed or Loss).
  3. When completing the refund application online, you will be automatically taken from the application summary to the schedule once the 'Product type' is selected. Then, by selecting the 'Back to summary' button, it will automatically bring the page from the Schedule to the Summary page. The calculation of your entries and carry forward of totals are performed automatically. To print, select the 'Print completed package' button at the bottom of the summary page. This is explained further on pages 5 to 9.
  4. When completing the refund application by hand, carry forward the totals from the schedule to the Application for Refund - Summary.
  5. The Application for Refund – Summary must be signed. Please mail the completed application to the Ministry of Finance.

Detailed Instructions

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

  • Note: When completing the application manually, the information you enter must be contained within the box or space provided.
  • Provide your legal name and address along with your Identification Number. If the application contains pre-printed information, verify the 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.
  • Select the product type.
  • When completing the application online, you will automatically be taken from the application summary to the schedule once 'Product type' is selected.

Step 2 – Completing the Application for Refund - Schedule – Loss of Product

  • When completing the application manually, provide your Identification Number. If pre-printed, 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.
  • Complete the following steps. Report the tax being claimed in dollars and cents, to the nearest cent

[A] Loss of Product

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

[B] Refund Calculation

  • There are three components of the Beer Tax for which a refund may be claimed:
    • Basic Tax,
    • Volume Tax, and
    • Environmental Tax (if applicable).

  1. Basic Tax Refund Claim Calculation

    There are four beer types listed in the first column:

    • Beer Manufacturer Draft,
    • Beer Manufacturer Non-Draft,
    • Microbrewer Draft, and
    • Microbrewer Non-Draft.

    For each type of beer that is listed, enter the total litres purchased during the period within the invoice dates in Column A. Enter the sum total at the bottom of the column.

    For each type of beer that is listed, enter the total refundable litres in Column B. This is the number of litres of beer that was subject to the beer tax and that was lost in the loss incident for which a tax refund is being claimed.

    Add the total refundable litres in Column B for each beer type and enter the sum total at the bottom of the column in Box 6.

    Column C contains the basic tax rate that applies to each of the four listed types of beer.

    Using the information in Column B and Column C, calculate the refund claim amount in Column D as follows:

    Column D = Column B × Column C

    Enter the refund claim amount for all four beer types in Column D as applicable. Enter all amounts in dollars and cents, rounded to the nearest cent.

    Line 1: For the beer type: "Beer Manufacturer Draft", multiply the Total refundable litres from Column B by the Ontario beer basic tax rate from Column C and enter the total in Column D on Line 1.

    Line 2: For the beer type: "Beer Manufacturer Non-Draft", multiply the Total refundable litres from Column B by the Ontario beer basic tax rate from Column C and enter the total in Column D on Line 2.

    Line 3: For the beer type: "Microbrewer Draft", multiply the Total refundable litres from Column B by the Ontario beer basic tax rate from Column C and enter the total in Column D on Line 3.

    Line 4: For the beer type: "Microbrewer Non-Draft", multiply the Total refundable litres from Column B by the Ontario beer basic tax rate from Column C and enter the total in Column D on Line 4.

    Line 5: Add Line 1 + Line 2 + Line 3 + Line 4 and enter the total in Line 5.

    This is the total refund claim amount for Basic Tax for all types of beer lost in the loss incident.

  2. Volume Tax Refund Claim Calculation

    Line 6: Enter the total refundable litres for all types of beer on Line 6. This is the same figure that is in Box 6 at the bottom of Column B.

    Line 7: Line 7 contains the volume tax rate which is the same for all four types of beer.

    Line 8: Multiply Line 6 × Line 7 and enter the result, in dollars and cents, rounded to the nearest cent, on Line 8. This is the total refund claim amount for Volume Tax for all types of beer lost in the loss incident.

  3. Environmental Tax Refund Claim Calculation

    Line 9: Enter the total number of non-refillable containers in respect of the beer lost in the loss incident.

    Line 10: Line 10 contains the environmental tax rate which is the same for all non-refillable containers in which the beer is sold.

    Line 11: Multiply Line 9 × Line 10 and enter the result, in dollars and cents, rounded to the nearest cent, on Line 11. This is the total refund claim amount for Environmental Tax for all types of beer lost in the loss incident.

  4. Total Refund Claim Amount ($)

    Line 12: Add Line 5 + Line 8 + Line 11 and enter the total in Line 12.

    This is the total refund claim amount for all beer lost in the loss incident.

    Enter this amount in Box C of the Application for Refund – Summary page 1.

    If completing online, once the schedule is completed, hit the 'Return to summary page' button at the bottom of the schedule page to return to the summary page.

Step 3 – Completing the Lower Portion of the Application for Refund - Summary

  • When completing the application manually, carry forward the refund amount calculated on Line 12 – Total refund claim amount ($) of the Application for Refund – Schedule, to Section C of the "Application for Refund – Summary" page 1.
  • The refund claim amount is transferred from the completed Schedule and filled in automatically when the form is completed online.
  • In Section A, enter the Ownership Information.
  • In Section B, enter the "From" and "To" dates of the invoices supporting the refund claim:
    • The "From" date of a claim period is the date of the earliest invoice that is being submitted by you with the Application for Refund. This represents the earliest invoice of beer purchased by you that was lost in the loss incident.
    • The "To" date of a claim period is the date of the latest invoice that is being submitted by you with the Application for Refund. This represents the most recent invoice of beer purchased by you that was lost in the loss incident.

    Remember that the invoices must be within the period covered by the application form.

  • Complete the Certification section of the Application for Refund – Summary including name, title and telephone number. When completing the application online, print two (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.
  • Keep one copy for your records.

Warning

Penalties may be imposed if an applicant for a refund has misrepresented a material fact on or in connection with an application for a refund or in an invoice supporting the application.

Charges may be laid and fines result where a person obtains or attempts to obtain a refund by deceit, falsehood or any fraudulent means.

The application and any refund payment are subject to audit by the Ministry of Finance.