(2) The Agency must, in respect of every carbon credit surrendered under subsection (1), remove the carbon credit from the registry account, and the registered person is treated as having paid the tax in relation to the taxable facility, to the extent of the total carbon price of the carbon credits so surrendered and removed.
Cancellation of carbon credits
29.—(1) Where—
- (a) a registered person has failed to pay any tax in accordance with section 17 in relation to any taxable facility of the registered person; and
- (b) the registered person has any carbon credit in the registry account for that taxable facility,
the Agency may cancel the carbon credit and remove it from the registry account, and the registered person is treated as having paid the tax in relation to the taxable facility to the extent of the carbon price of the carbon credit so cancelled and removed.
(2) Where any carbon credit in a registry account for a taxable facility of a registered person has been obtained by the registered person through fraud or any other unlawful means, the Agency may cancel the carbon credit and remove it from the registry account.
(3) A registered person that has any carbon credit cancelled and removed under subsection (2)—
- (a) is not treated as having paid any tax in relation to the taxable facility to which the registry account relates, to the extent of the carbon price of the carbon credit; and
- (b) is not entitled to any refund on the carbon credit.
(4) The Agency must not exercise the power under subsection (1) or (2) without prior notice to the registered person.
Refunds on carbon credits
30. A registered person is not entitled to any refund on any carbon credit except to the extent permitted by section 33.
