Sales Tax Amendments Act, 2006 (S.C. 2007, c. 18)
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Assented to 2007-06-22
PART 2AMENDMENTS IN RESPECT OF EXCISE DUTY ON ALCOHOL AND TOBACCO PRODUCTS
2002, c. 22Excise Act, 2001
95. (1) Sections 74 and 75 of the Act are replaced by the following:
Marginal note:Disposal of bulk spirits
74. A person who possesses bulk spirits produced for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol shall, immediately after the analysis is complete, destroy or dispose of the spirits in a manner approved by the Minister.
Marginal note:Importation — bulk spirits
75. (1) No person shall import bulk spirits other than a spirits licensee, a licensed user or, if the spirits are in a special container, an excise warehouse licensee in accordance with section 80.
Marginal note:Importation — bulk wine
(2) No person shall import bulk wine other than a wine licensee, a licensed user or, if the wine is in a special container, an excise warehouse licensee in accordance with section 85.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
96. (1) Subsection 88(2) of the Act is amended by striking out the word “and” at the end of paragraph (g) and by adding the following after paragraph (h):
(i) that is wine referred to in paragraph 135(2)(b) may be possessed by any person; and
(j) that is wine produced or packaged by a wine licensee and removed from the excise warehouse of the licensee and that is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine may be possessed by the licensee or those individuals at those premises.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
97. (1) The Act is amended by adding the following after section 93:
Restricted Formulations
Marginal note:Restriction — licensed user
93.1 A licensed user shall not use or dispose of a restricted formulation other than in accordance with the conditions or restrictions imposed by the Minister under section 143.
Marginal note:Prohibition — possession of restricted formulation
93.2 No person other than a licensed user or an alcohol registrant shall possess a restricted formulation.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
98. (1) The Act is amended by adding the following after section 117:
Marginal note:Responsibility for wine ceases
117.1 If bulk spirits are produced from bulk wine, the wine licensee or licensed user who was responsible for the wine before it was used to produce the spirits ceases to be responsible for the wine at the time the spirits are produced.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
99. (1) Section 131 of the Act is replaced by the following:
Marginal note:Blending wine with spirits
131. A licensed user who is also a spirits licensee may blend bulk wine with spirits if the resulting product is spirits.
Marginal note:Producing spirits from wine
131.1 A licensed user who is also a spirits licensee may use bulk wine to produce spirits.
Marginal note:Deemed production of spirits — blending wine
131.2 (1) If wine is blended with bulk spirits and the resulting product is spirits,
(a) the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the wine is relieved; and
(b) the resulting spirits are deemed to be produced at the time of the blending.
Marginal note:Deemed production of spirits — other blending
(2) If a material or substance, other than spirits or wine, containing absolute ethyl alcohol is blended with bulk spirits or wine and the resulting product is spirits,
(a) the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the material or substance is relieved; and
(b) the resulting spirits are deemed to be produced at the time of the blending.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
100. (1) Paragraph 135(2)(b) of the Act is replaced by the following:
(b) produced by a wine licensee and packaged by or on behalf of the licensee during a fiscal month in a particular fiscal year of the licensee if
(i) the total sales by the licensee of products that are subject to duty under subsection (1), or that would have been so subject to duty in the absence of this subsection, in the fiscal year ending immediately before the particular fiscal year did not exceed $50,000, and
(ii) the total sales by the licensee of those products during the particular fiscal year before the fiscal month did not exceed $50,000.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
101. (1) Section 136 of the Act is replaced by the following:
Marginal note:Duty payable on removal from warehouse
136. (1) Subject to subsection (2), if packaged wine is removed from an excise warehouse for entry into the duty-paid market, duty is payable on the wine at the time of its removal and is payable by the excise warehouse licensee.
Marginal note:Removals for consignment sales
(2) If a small wine licensee removes packaged wine that the licensee produced or packaged from the excise warehouse of the licensee for delivery and sale on a consignment basis at a retail store operated on behalf of two or more small wine licensees and that is not located on the premises of a wine licensee, the wine is deemed to be removed from the warehouse for entry into the duty-paid market at the time the wine is sold.
Meaning of “small wine licensee”
(3) In this section, a wine licensee is a small wine licensee during a fiscal year of the licensee if, in the previous fiscal year, the total amount of wine sold by the licensee did not exceed 60,000 litres.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
102. (1) Subsection 138(1) of the Act is amended by adding the following after paragraph (a):
(a.1) in the case of packaged wine described by subsection 136(2), as being in a store described by that subsection;
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
103. (1) Subsection 145(2) of the Act is amended by striking out the word “or” at the end of paragraph (b), by adding the word “or” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) in the case of wine, taken for use by an excise warehouse licensee if that licensee is also the wine licensee who produced or packaged the wine and the wine is provided free of charge to individuals for consumption as a sample at the premises where the licensee produces or packages wine.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
104. (1) Section 147 of the Act is amended by adding the following after subsection (3):
Marginal note:Duty not payable — wine samples
(4) Duty is not payable on non-duty-paid packaged wine, other than wine contained in a marked special container, that is removed from the excise warehouse of the wine licensee who produced or packaged the wine if the wine is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
105. (1) Paragraph 151(2)(a) of the Act is amended by striking out the word “or” at the end of subparagraph (vii) and by replacing subparagraph (viii) with the following:
(viii) in the case of packaged wine described in subsection 136(2), delivery to a store described in that subsection, or
(ix) export;
(2) Subsection 151(2) of the Act is amended by adding the following after paragraph (a):
(a.1) non-duty-paid packaged wine, other than wine in a marked special container, if the warehouse is the excise warehouse of the wine licensee who produced or packaged the wine and the wine is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine;
(3) Subsections (1) and (2) are deemed to have come into force on July 1, 2003.
106. (1) The Act is amended by adding the following after section 153:
Marginal note:Return of non-duty-paid wine
153.1 If non-duty-paid packaged wine that has been removed from an excise warehouse under subparagraph 151(2)(a)(viii) is returned to that warehouse under prescribed conditions, the wine may, if it had not been entered into the duty-paid market, be entered into the warehouse as non-duty-paid packaged wine.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
107. (1) Subsection 160(1) of the Act is renumbered as section 160 and subsection 160(2) of the Act is repealed.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
108. (1) Section 173 of the Act, as enacted by subsection 116(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following:
Marginal note:Waiving or reducing interest
173. The Minister may, on or before the particular day that is 10 calendar years after the day an amount was required to be paid by a person under this Act, or on application by the person on or before the particular day, waive or reduce any interest on the amount payable by the person under section 170.
(2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007.
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