Tax rebate discounting is a process in Canada

Income taxes in Canada

Income taxes in Canada constitute the majority of the annual revenues of the Government of Canada, and of the governments of the Provinces of Canada...

 where a tax preparation firm purchases the right to the anticipated tax rebate in exchange for a percentage of the rebate amount. Canada Revenue Agency

Canada Revenue Agency

The Canada Revenue Agency is a federal agency that administers tax laws for the Government of Canada and for most provinces and territories, international trade legislation, and various social and economic benefit and incentive programs delivered through the tax system...

 rules establish the maximum discounting fee as 15% of the first 300 C$

Canadian dollar

The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...

 and 5% of any remaining amount. No other fees for preparation or filing the return are permitted. This commonly works out to a high effective interest rate, although in a small number of cases the discount may be comparable or even less than an ordinary tax return preparation fee.

This process is somewhat similar to a refund anticipation loan

Refund Anticipation Loan

A refund anticipation loan is a short-term consumer loan secured by a taxpayer’s expected tax refund, and designed to offer customers quicker access to funds than waiting for their tax refund...

in the United States.