Budget Implementation Act, 2024, No. 1 (S.C. 2024, c. 17)

PART 3Amendments to the Excise Tax Act, the Excise Act, the Excise Act, 2001, the Underused Housing Tax Act, the Greenhouse Gas Pollution Pricing Act and Other Related Texts

DIVISION 1R.S., c. E-15Excise Tax Act (GST/HST)

• 112 (1) Sections 2 to 5 of Part II.1 of Schedule VI to the Excise Tax Act are repealed.

• (2) Subsection (1) applies to supplies made after April 2024.

DIVISION 2Excise Act, Excise Act, 2001 and Other Related Texts (Alcohol, Tobacco and Vaping Products)

R.S., c. E-14Excise Act

• 113 (1) Section 170.2 of the Excise Act is amended by adding the following after subsection (2.1):

  • Marginal note:Adjustment — 2024

    (2.2) In respect of the inflationary adjusted year that is 2024, the description of B in paragraph (2)(a) is deemed to be equal to 1.02.

  • Marginal note:Adjustment — 2025

    (2.3) In respect of the inflationary adjusted year that is 2025, if the amount determined for B in paragraph (2)(a) without reference to this subsection is greater than 1.02, the description of B in that paragraph is deemed to be equal to 1.02.

• (2) Subsection (1) is deemed to have come into force on April 1, 2024.

• 114 (1) Paragraphs 1(a) to (c) of Part II.1 of the schedule to the Act are amended by replacing “10%” with “5%”.

• (2) Paragraphs 1(a) to (c) of Part II.1 of the schedule to the Act, as amended by subsection (1), are amended by replacing “5%” with “10%”.

• (3) Subsection (1) is deemed to have come into force on April 1, 2024.

• (4) Subsection (2) comes into force on April 1, 2026.

• 115 (1) Paragraphs 2(a) to (c) of Part II.1 of the schedule to the Act are amended by replacing “20%” with “10%”.

• (2) Paragraphs 2(a) to (c) of Part II.1 of the schedule to the Act, as amended by subsection (1), are amended by replacing “10%” with “20%”.

• (3) Subsection (1) is deemed to have come into force on April 1, 2024.

• (4) Subsection (2) comes into force on April 1, 2026.

• 116 (1) Paragraphs 3(a) to (c) of Part II.1 of the schedule to the Act are amended by replacing “40%” with “20%”.

• (2) Paragraphs 3(a) to (c) of Part II.1 of the schedule to the Act, as amended by subsection (1), are amended by replacing “20%” with “40%”.

• (3) Subsection (1) is deemed to have come into force on April 1, 2024.

• (4) Subsection (2) comes into force on April 1, 2026.

2002, c. 22Excise Act, 2001

• 117 (1) Subsection 38(3) of the Excise Act, 2001 is replaced by the following:

  • Marginal note:Exception for specified manufactured tobacco brands

    (3) A container of manufactured tobacco does not require tobacco markings to be printed on or affixed to it if the brand of the tobacco is not commonly sold in Canada and is specified by the Minister.

• (2) Paragraph 38(4)(a) of the Act is replaced by the following:

  • (a) cigarettes of the particular type or formulation exported under that brand are cigarettes specified by the Minister; and

• (3) Subsections (1) and (2) come into force on the first day of the month after the month in which this Act receives royal assent.

• 118 (1) Paragraph 58(1)(a) of the Act is replaced by the following:

  • (a) the tobacco product of that brand is specified by the Minister;

• (2) Paragraph 58(2)(a) of the Act is replaced by the following:

  • (a) cigarettes of the particular type or formulation exported under that brand are cigarettes specified by the Minister; and

• (3) Subsections (1) and (2) come into force on the first day of the month after the month in which this Act receives royal assent.

• 119 (1) The definition adjustment day in section 58.1 of the Act is amended by striking out “or” at the end of paragraph (a.2) and by adding the following after that paragraph:

  • (a.3) April 17, 2024; or

• (2) Subsection (1) is deemed to have come into force on April 17, 2024.

• 120 (1) Section 58.2 of the Act is amended by adding the following after subsection (1.2):

  • Marginal note:Imposition of tax — 2024 increase

    (1.3) Subject to section 58.3, every person shall pay to His Majesty a tax on all taxed cigarettes of the person held at the beginning of April 17, 2024 at the rate of $0.02 per cigarette.

• (2) Subsection (1) is deemed to have come into force on April 17, 2024.

• 121 (1) Subsection 58.5(1) of the Act is amended by striking out “or” at the end of paragraph (a.2) and by adding the following after that paragraph:

  • (a.3) in the case of the tax imposed under subsection 58.2(1.3), June 30, 2024; or

• (2) Subsection (1) is deemed to have come into force on April 17, 2024.

• 122 (1) Subsection 58.6(1) of the Act is amended by striking out “or” at the end of paragraph (a.2) and by adding the following after that paragraph:

  • (a.3) in the case of the tax imposed under subsection 58.2(1.3), June 30, 2024; or

• (2) Subsection (1) is deemed to have come into force on April 17, 2024.

• 123 (1) Section 123.1 of the Act is amended by adding the following after subsection (2.1):

  • Marginal note:Adjustment — 2024

    (2.2) In respect of the inflationary adjusted year that is 2024, the description of B in paragraph (2)(a) is deemed to be equal to 1.02.

  • Marginal note:Adjustment — 2025

    (2.3) In respect of the inflationary adjusted year that is 2025, if the amount determined for B in paragraph (2)(a) without reference to this subsection is greater than 1.02, the description of B in that paragraph is deemed to be equal to 1.02.

• (2) Subsection (1) is deemed to have come into force on April 1, 2024.

• 124 (1) Section 135.1 of the Act is amended by adding the following after subsection (2.1):

  • Marginal note:Adjustment — 2024

    (2.2) In respect of the inflationary adjusted year that is 2024, the description of B in paragraph (2)(a) is deemed to be equal to 1.02.

  • Marginal note:Adjustment — 2025

    (2.3) In respect of the inflationary adjusted year that is 2025, if the amount determined for B in paragraph (2)(a) without reference to this subsection is greater than 1.02, the description of B in that paragraph is deemed to be equal to 1.02.

• (2) Subsection (1) is deemed to have come into force on April 1, 2024.

125 Subparagraph 211(6)(e)(x) of the Act is replaced by the following:

• 126 (1) Paragraph 1(a) of Schedule 1 to the Act is replaced by the following:

  • (a) $0.92883; or

• (2) Subsection (1) is deemed to have come into force on April 17, 2024.

• 127 (1) Paragraph 2(a) of Schedule 1 to the Act is replaced by the following:

  • (a) $0.18576; or

• (2) Subsection (1) is deemed to have come into force on April 17, 2024.

• 128 (1) Paragraph 3(a) of Schedule 1 to the Act is replaced by the following:

  • (a) $11.61031; or

• (2) Subsection (1) is deemed to have come into force on April 17, 2024.

• 129 (1) Paragraph 4(a) of Schedule 1 to the Act is replaced by the following:

  • (a) $40.43121; or

• (2) Subsection (1) is deemed to have come into force on April 17, 2024.

• 130 (1) Subparagraph (a)(i) of Schedule 2 to the Act is replaced by the following:

  • (i) $0.14533, or

• (2) Subsection (1) is deemed to have come into force on April 17, 2024.

• 131 (1) Subparagraphs 1(a)(i) and (ii) of Schedule 8 to the Act are replaced by the following:

  • (i) for the first 10 millilitres of vaping substance in the vaping device or immediate container, $1.12 per 2 millilitres of vaping substance or fraction thereof, and

  • (ii) for any additional amount of vaping substance in the vaping device or immediate container, $1.12 per 10 millilitres of vaping substance or fraction thereof; and

• (2) Subparagraphs 1(b)(i) and (ii) of Schedule 8 to the Act are replaced by the following:

  • (i) for the first 10 grams of vaping substance in the vaping device or immediate container, $1.12 per 2 grams of vaping substance or fraction thereof, and

  • (ii) for any additional amount of vaping substance in the vaping device or immediate container, $1.12 per 10 grams of vaping substance or fraction thereof.

• (3) Subsections (1) and (2) come into force or are deemed to have come into force on July 1, 2024.

• 132 (1) Subparagraphs 2(a)(i) and (ii) of Schedule 8 to the Act are replaced by the following:

  • (i) for the first 10 millilitres of vaping substance, $1.12 per 2 millilitres of vaping substance or fraction thereof, and

  • (ii) for any additional amount of vaping substance, $1.12 per 10 millilitres of vaping substance or fraction thereof; and

• (2) Subparagraphs 2(b)(i) and (ii) of Schedule 8 to the Act are replaced by the following:

  • (i) for the first 10 grams of vaping substance, $1.12 per 2 grams of vaping substance or fraction thereof, and

  • (ii) for any additional amount of vaping substance, $1.12 per 10 grams of vaping substance or fraction thereof.

• (3) Subsections (1) and (2) come into force or are deemed to have come into force on July 1, 2024.

SOR/2003-202Regulations Relieving Special Duty on Certain Tobacco Products

• 133 (1) The Regulations Relieving Special Duty on Certain Tobacco Products are repealed.

• (2) Subsection (1) comes into force on the first day of the month after the month in which this Act receives royal assent.

SOR/2003-288; 2018, c. 12, s. 108; 2022, c. 10, s. 116Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations

• 134 (1) Section 4.01 of the Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations is amended by renumbering subsection (2) as subsection (3) and by adding the following after subsection (1):

  • (2) If the Minister holds, at any time in a calendar month, security that a person has provided under subsection 25.1(3) of the Act and if the person is not a tobacco licensee throughout the calendar month, the person must file with the Minister an information return for the calendar month in respect of the possession and use of any tobacco excise stamps issued to the person.

• (2) Subsection (1) comes into force on the first day of the month after the month in which this Act receives royal assent.

SOR/2011-7 Regulations Respecting Prescribed Brands of Manufactured Tobacco and Prescribed Cigarettes

• 135 (1) The Regulations Respecting Prescribed Brands of Manufactured Tobacco and Prescribed Cigarettes are repealed.

• (2) Subsection (1) comes into force on the first day of the month after the month in which this Act receives royal assent.

DIVISION 3Underused Housing Tax Act and Underused Housing Tax Regulations

2022, c. 5, s. 10Underused Housing Tax Act

• 136 (1) The definition excluded owner in section 2 of the Underused Housing Tax Act is replaced by the following:

  excluded owner

  excluded owner of a residential property for a calendar year means a person (other than a prescribed person) that, on December 31 of the calendar year, is an owner of the residential property

  • (a) in the person’s capacity as a trustee of a trust that is

    • (i) a specified Canadian trust,

    • (ii) a mutual fund trust as defined in subsection 248(1) of the Income Tax Act,

    • (iii) a real estate investment trust as defined in subsection 122.1(1) of the Income Tax Act, or

    • (iv) a SIFT trust as defined in subsection 122.1(1) of the Income Tax Act;

  • (b) in the person’s capacity as a partner of a partnership that is a specified Canadian partnership;

  • (c) in a capacity other than as a trustee of a trust or partner of a partnership if the person is

    • (i) an individual who is a citizen or permanent resident,

    • (ii) a specified Canadian corporation,

    • (iii) a corporation incorporated or continued under the laws of Canada or a province whose shares are listed on a stock exchange in Canada for which a designation under section 262 of the Income Tax Act is in effect,

    • (iv) a registered charity as defined in subsection 248(1) of the Income Tax Act,

    • (v) a cooperative housing corporation, a hospital authority, a municipality, a public college, a school authority, or a university, as those terms are defined in subsection 123(1) of the Excise Tax Act, or a para-municipal organization as defined in section 1 of Part VI of Schedule V to that Act,

    • (vi) an Indigenous governing body as defined in section 2 of the Department of Indigenous Services Act,

    • (vii) His Majesty in right of Canada or a province or an agent of His Majesty in right of Canada or a province,

    • (viii) a corporation incorporated or continued under the laws of Canada or a province, all or substantially all of the shares of which are owned or controlled by

      • (A) a trust referred to in any of subparagraphs (a)(ii) to (iv),

      • (B) a corporation referred to in subparagraph (iii), or

      • (C) any combination of corporations or trusts referred to in clauses (A) and (B); or

  • (d) if the person is

    • (i) an individual who is a citizen or permanent resident and an owner of the residential property as a personal representative in respect of a deceased individual, or

    • (ii) a prescribed person. (propriétaire exclu)

• (2) The definition ownership percentage in section 2 of the Act is replaced by the following:

  ownership percentage

  ownership percentage, in respect of a particular person that is an owner of a residential property for a calendar year, means

  • (a) if prescribed circumstances exist, a prescribed percentage;

  • (b) if paragraph (a) does not apply, if section 4.1 applies in respect of the particular person, if the land registration system or other similar system applicable where the residential property is located does not separately indicate a percentage of the ownership in respect of the residential property for each capacity in respect of which this Act applies to the particular person as a separate person under section 4.1, if the particular person indicates a particular percentage in their return for the residential property for the calendar year and if the Minister is satisfied that the particular percentage reasonably reflects the particular person’s percentage of the ownership in respect of the residential property, the particular percentage; and

  • (c) if paragraphs (a) and (b) do not apply,

    • (i) if the land registration system or other similar system applicable where the residential property is located indicates that the particular person holds a percentage of the ownership in respect of the residential property, that percentage,

    • (ii) if the land registration system or other similar system applicable where the residential property is located indicates that a group of persons that includes the particular person holds a percentage of the ownership in respect of the residential property, that percentage divided by the total number of persons in the group, and

    • (iii) in any other case, the percentage determined by the formula

      (100% − A) ÷ B

      where

      A

      is the sum of all percentages, each of which is a percentage of the ownership in respect of the residential property that is indicated in the land registration system or other similar system applicable where the residential property is located as being held by another person or a group of persons, and

      B

      is the total number of persons, determined without reference to section 4.1, each of which is an owner of the residential property in respect of which no percentage of the ownership in respect of the residential property is indicated in the land registration system or other similar system applicable where the residential property is located. (pourcentage de propriété)

• (3) Paragraph (e) of the definition owner in section 2 of the Act is replaced by the following:

  • (e) a person that gives continuous possession of the land on which the residential property is situated to another person referred to in paragraph (b) or (c), or

• (4) Paragraph (a) of the definition specified Canadian partnership in section 2 of the Act is replaced by the following:

  • (a) a partnership, each member of which is, on December 31 of the calendar year,

    • (i) a person referred to in paragraph (c) of the definition excluded owner,

    • (ii) a trust referred to in paragraph (a) of that definition, or

    • (iii) a specified Canadian partnership; or

• (5) Paragraph (a) of the definition specified Canadian trust in section 2 of the Act is replaced by the following:

  • (a) a trust under which each beneficiary having a beneficial interest in the residential property is, on December 31 of the calendar year,

    • (i) a person referred to in paragraph (c) of the definition excluded owner,

    • (ii) a trust referred to in paragraph (a) of that definition, or

    • (iii) a specified Canadian partnership; or

• (6) Subsections (1), (4) and (5) are deemed to have come into force on January 1, 2023.

• (7) Subsections (2) and (3) are deemed to have come into force on January 1, 2022.