Short Title

Marginal note:Short title

1 This Act may be cited as the Excise Act, 2001.

Interpretation

Marginal note:Definitions

2 The definitions in this section apply in this Act.

absolute ethyl alcohol

alcool éthylique absolu

absolute ethyl alcohol means the substance with the chemical composition C₂H₅OH. (alcool éthylique absolu)

accredited representative

représentant accrédité

accredited representative means a person who is entitled under the Foreign Missions and International Organizations Act to the tax exemptions specified in Article 34 of the Convention set out in Schedule I to that Act or in Article 49 of the Convention set out in Schedule II to that Act. (représentant accrédité)

Agency

Agence

Agency means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act. (Agence)

alcohol

alcool

alcohol means spirits or wine. (alcool)

alcohol licensee

titulaire de licence d’alcool

alcohol licensee means a person who is a spirits licensee or a wine licensee. (titulaire de licence d’alcool)

alcohol registrant

détenteur autorisé d’alcool

alcohol registrant means a person who holds an alcohol registration issued under section 17. (détenteur autorisé d’alcool)

analyst

analyste

analyst means a person who is designated as an analyst under section 11. (analyste)

approved formulation

préparation approuvée

approved formulation means

• (a) any product made with alcohol by a licensed user in accordance with a formula for which the user has approval from the Minister; and

• (b) any imported product that, in the opinion of the Minister, would be a product under paragraph (a) if it were made in Canada by a licensed user. (préparation approuvée)

assessment

cotisation

assessment means an assessment under this Act and includes a reassessment. (cotisation)

beer

bière

beer means beer or malt liquor as defined in section 4 of the Excise Act. (bière)

black stock

non ciblé

black stock, in respect of manufactured tobacco, means that the tobacco is stamped but not marked in accordance with any statute of a province to indicate that it is intended for retail sale in a particular province or in particular provinces. (non ciblé)

bottle-your-own premises

centre de remplissage libre-service

bottle-your-own premises means premises in which, in accordance with the laws of the province in which they are located, alcohol is supplied from a marked special container of alcohol for the purpose of being packaged by a purchaser. (centre de remplissage libre-service)

bulk

en vrac

bulk, in respect of alcohol, means alcohol that is not packaged. (en vrac)

cigar

cigare

cigar includes

• (a) a cigarillo or cheroot; and

• (b) any roll or tubular construction intended for smoking that consists of a filler composed of pieces of natural or reconstituted leaf tobacco, a binder of natural or reconstituted leaf tobacco in which the filler is wrapped and a wrapper of natural or reconstituted leaf tobacco. (cigare)

cigarette

cigarette

cigarette includes any roll or tubular construction intended for smoking, other than a cigar or a tobacco stick. If a cigarette exceeds 102 mm in length, each portion of 76 mm or less is considered to be a separate cigarette. (cigarette)

Commissioner

commissaire

Commissioner means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act. (commissaire)

container

contenant

container, in respect of a tobacco product, means a wrapper, package, carton, box, crate or other container that contains the tobacco product. (contenant)

customs bonded carrier

transporteur cautionné

customs bonded carrier means a person who transports or causes to be transported goods in accordance with section 20 of the Customs Act. (transporteur cautionné)

customs bonded warehouse

entrepôt de stockage

customs bonded warehouse means a place that is licensed as a bonded warehouse under the Customs Tariff. (entrepôt de stockage)

customs bonded warehouse licensee

exploitant agréé d’entrepôt de stockage

customs bonded warehouse licensee means a person licensed under the Customs Tariff to operate a bonded warehouse. (exploitant agréé d’entrepôt de stockage)

data

données

data means representations, in any form, of information or concepts. (données)

denature

dénaturation

denature means to denature spirits into denatured alcohol or specially denatured alcohol using prescribed denaturants in the prescribed manner. (dénaturation)

denatured alcohol

alcool dénaturé

denatured alcohol means any prescribed grade of denatured alcohol made from spirits in accordance with the prescribed specification for that grade. (alcool dénaturé)

duty

droit

duty means, unless a contrary intention appears, the duty imposed under this Act and the duty levied under section 21.1 or 21.2 of the Customs Tariff and, except in Parts 3 and 4, includes special duty. (droit)

duty free shop

boutique hors taxes

duty free shop means a place that is licensed as a duty free shop under the Customs Act. (boutique hors taxes)

duty free shop licensee

exploitant agréé de boutique hors taxes

duty free shop licensee means a person licensed under the Customs Act to operate a duty free shop. (exploitant agréé de boutique hors taxes)

duty-paid market

marché des marchandises acquittées

duty-paid market means the market for goods in respect of which duty, other than special duty, is payable. (marché des marchandises acquittées)

duty-paid value

valeur à l’acquitté

duty-paid value means

• (a) in respect of imported cigars, the value of the cigars as it would be determined for the purpose of calculating an ad valorem duty on the cigars in accordance with the Customs Act, whether or not the cigars are subject to ad valorem duty, plus the amount of any duty imposed on the cigars under section 42 of this Act and section 20 of the Customs Tariff; and

• (b) in respect of imported cigars that, when imported, are contained in containers or otherwise prepared for sale, the total of the value of the cigars as determined in accordance with paragraph (a) and the value similarly determined of the container in which they are contained. (valeur à l’acquitté)

excise warehouse

entrepôt d’accise

excise warehouse means the premises of an excise warehouse licensee that are specified by the Minister as the excise warehouse of the licensee. (entrepôt d’accise)

excise warehouse licensee

exploitant agréé d’entrepôt d’accise

excise warehouse licensee means a person who holds an excise warehouse licence issued under section 19. (exploitant agréé d’entrepôt d’accise)

export

exportation

export means to export from Canada. (exportation)

ferment-on-premises facility

vinerie libre-service

ferment-on-premises facility means the premises of a ferment-on-premises registrant that are specified by the Minister as the registrant’s ferment-on-premises facility. (vinerie libre-service)

ferment-on-premises registrant

exploitant autorisé de vinerie libre-service

ferment-on-premises registrant means a person who holds a ferment-on-premises registration issued under section 15. (exploitant autorisé de vinerie libre-service)

fiscal month

mois d’exercice

fiscal month means a fiscal month as determined under section 159. (mois d’exercice)

foreign duty free shop

boutique hors taxes à l’étranger

foreign duty free shop means a retail store that is located in a country other than Canada and that is authorized under the laws of that country to sell goods free of certain duties and taxes to individuals who are about to leave that country. (boutique hors taxes à l’étranger)

foreign ships’ stores

provisions de bord à l’étranger

foreign ships’ stores means tobacco products taken on board a vessel or aircraft while the vessel or aircraft is outside Canada and that are intended for consumption by or sale to the passengers or crew while the passengers and crew are on board the vessel or aircraft. (provisions de bord à l’étranger)

Her Majesty

Sa Majesté

Her Majesty means Her Majesty in right of Canada. (Sa Majesté)

import

importation

import means to import into Canada. (importation)

intoxicating liquor

boisson enivrante

intoxicating liquor has the same meaning as in section 2 of the Importation of Intoxicating Liquors Act. (boisson enivrante)

judge

juge

judge, in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court. (juge)

licensed tobacco dealer

commerçant de tabac agréé

licensed tobacco dealer means a person who holds a tobacco dealer’s licence issued under section 14. (commerçant de tabac agréé)

licensed user

utilisateur agréé

licensed user means a person who holds a user’s licence issued under section 14. (utilisateur agréé)

liquor authority

administration des alcools

liquor authority means a government board, commission or agency that is authorized by the laws of a province to sell intoxicating liquor. (administration des alcools)

listed international agreement

accord international désigné

listed international agreement means the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time. (accord international désigné)

manufacture

fabrication

manufacture, in respect of a tobacco product, includes any step in the preparation or working up of raw leaf tobacco into the tobacco product. It includes packing, stemming, reconstituting, converting or packaging the raw leaf tobacco or tobacco product. (fabrication)

manufactured tobacco

tabac fabriqué

manufactured tobacco means every article, other than a cigar or packaged raw leaf tobacco, that is manufactured in whole or in part from raw leaf tobacco by any process. (tabac fabriqué)

mark

marquer

mark means, in respect of

• (a) a special container of spirits, to mark in the prescribed form and manner to indicate that the container is intended for

  • (i) delivery to and use by a registered user, or

  • (ii) delivery to and use at a bottle-your-own premises; and

• (b) a special container of wine, to mark in the prescribed form and manner to indicate that the container is intended for delivery to and use at a bottle-your-own premises. (marquer)

Minister

ministre

Minister means the Minister of National Revenue. (ministre)

month

mois

month means a period beginning on a particular day in a calendar month and ending on

• (a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day; or

• (b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month. (mois)

non-duty-paid

non acquitté

non-duty-paid, in respect of packaged alcohol, means that duty, other than special duty, has not been paid on the alcohol. (non acquitté)

officer

préposé

officer means, except in sections 167, 226 and 296,

• (a) a person who is appointed or employed in the administration or enforcement of this Act;

• (b) a member of the Royal Canadian Mounted Police or a member of a police force designated under subsection 10(1); and

• (c) with respect to imported goods that have not been released under the Customs Act, an officer as defined in subsection 2(1) of that Act. (préposé)

packaged

emballé

packaged means

• (a) in respect of raw leaf tobacco or a tobacco product, packaged in a prescribed package; or

• (b) in respect of alcohol, packaged

  • (i) in a container of a capacity of not more than 100 L that is ordinarily sold to consumers without the alcohol being repackaged, or

  • (ii) in a marked special container. (emballé)

partially manufactured tobacco

tabac partiellement fabriqué

partially manufactured tobacco means manufactured tobacco that is cut filler or cut rag or that is manufactured less fully than cut filler or cut rag. (tabac partiellement fabriqué)

peace officer

agent de la paix

peace officer has the same meaning as in section 2 of the Criminal Code. (agent de la paix)

person

personne

person means an individual, a partnership, a corporation, a trust, the estate of a deceased individual, a government or a body that is a society, a union, a club, an association, a commission or another organization of any kind. (personne)

personal use

usage personnel

personal use, in relation to the use of a good by an individual, means the use of the good by the individual or by others at the individual’s expense. It does not include the sale or other commercial use of the good. (usage personnel)

prescribed

Version anglaise seulement

prescribed means

• (a) in the case of a form or the manner of filing a form, authorized by the Minister;

• (b) in the case of the information to be given on or with a form, specified by the Minister; and

• (c) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation. (Version anglaise seulement)

produce

production

produce means

• (a) in respect of spirits, to bring into existence by distillation or other process or to recover; or

• (b) in respect of wine, to bring into existence by fermentation. (production)

raw leaf tobacco

tabac en feuilles

raw leaf tobacco means unmanufactured tobacco or the leaves and stems of the tobacco plant. (tabac en feuilles)

record

registre

record means any material on which data are recorded or marked and which is capable of being read or understood by a person or a computer system or other device. (registre)

registered user

utilisateur autorisé

registered user means a person who holds a user’s registration issued under section 16. (utilisateur autorisé)

responsible

responsable

responsible, in relation to a person, means that the person is responsible for bulk alcohol in accordance with sections 104 to 121. (responsable)

restricted formulation

préparation assujettie à des restrictions

restricted formulation means an approved formulation on which the Minister has imposed the condition or restriction under section 143 that the formulation can only be used by a licensed user or be exported. (préparation assujettie à des restrictions)

sale price

prix de vente

sale price, in respect of cigars, means the total of

• (a) the amount charged as the price for the cigars before an amount payable in respect of a tax under Part IX of the Excise Tax Act is added,

• (b) the amount charged as the price for or in respect of the container in which the cigars are contained,

• (c) any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale of the cigars in addition to the amount charged as the price, whether payable at the same or any other time, including, but not limited to, any amount charged for or to make provision for advertising, financing, commissions or any other matter, and

• (d) the amount of duty imposed on the cigars under section 42. (prix de vente)

SDA registrant

détenteur autorisé d’alcool spécialement dénaturé

SDA registrant means a person who holds a specially denatured alcohol registration issued under section 18. (détenteur autorisé d’alcool spécialement dénaturé)

special container

contenant spécial

special container means

• (a) in respect of spirits, a container of a capacity of more than 100 L but not more than 1,500 L; and

• (b) in respect of wine, a container of a capacity of more than 100 L. (contenant spécial)

special duty

droit spécial

special duty means

• (a) in respect of a tobacco product, a special duty imposed under subsection 53(1), 54(2) or 56(1); and

• (b) in respect of imported spirits, the special duty imposed under subsection 133(1). (droit spécial)

special excise warehouse

entrepôt d’accise spécial

special excise warehouse means the premises of a special excise warehouse licensee that are specified by the Minister as the special excise warehouse of the licensee. (entrepôt d’accise spécial)

special excise warehouse licensee

exploitant agréé d’entrepôt d’accise spécial

special excise warehouse licensee means a person who holds a special excise warehouse licence issued under section 20. (exploitant agréé d’entrepôt d’accise spécial)

specially denatured alcohol

alcool spécialement dénaturé

specially denatured alcohol means any prescribed grade of specially denatured alcohol made from spirits in accordance with the prescribed specification for that grade. (alcool spécialement dénaturé)

specified premises

local déterminé

specified premises, in respect of a licensed user, means the premises of the licensed user that are specified by the Minister under subsection 23(3). (local déterminé)

spirits

spiritueux

spirits means any material or substance containing more than 0.5% absolute ethyl alcohol by volume other than

• (a) wine;

• (b) beer;

• (c) vinegar;

• (d) denatured alcohol;

• (e) specially denatured alcohol;

• (f) fusel oil or other refuse produced as a result of the distillation process;

• (g) an approved formulation; or

• (h) any product containing or manufactured from a material or substance referred to in paragraphs (b) to (g) that is not consumable as a beverage. (spiritueux)

spirits licensee

titulaire de licence de spiritueux

spirits licensee means a person who holds a spirits licence issued under section 14. (titulaire de licence de spiritueux)

stamped

estampillé

stamped, in respect of a tobacco product, means that all prescribed information in a prescribed format is, in the prescribed manner, stamped, impressed, printed or marked on, indented into or affixed to the product or its container to indicate that duty, other than special duty, has been paid on the product. (estampillé)

sufferance warehouse

entrepôt d’attente

sufferance warehouse has the same meaning as in subsection 2(1) of the Customs Act. (entrepôt d’attente)

sufferance warehouse licensee

exploitant agréé d’entrepôt d’attente

sufferance warehouse licensee means a person licensed under the Customs Act to operate a sufferance warehouse. (exploitant agréé d’entrepôt d’attente)

take for use

utilisation pour soi

take for use, in respect of alcohol, means to consume, analyze or destroy alcohol or to use alcohol for any purpose that results in a product other than alcohol. (utilisation pour soi)

Tax Court

Cour de l’impôt

Tax Court means the Tax Court of Canada. (Cour de l’impôt)

tobacco dealer

commerçant de tabac

tobacco dealer means a person, other than a tobacco licensee, who purchases for resale, sells or offers to sell raw leaf tobacco on which duty is not imposed under this Act. (commerçant de tabac)

tobacco licensee

titulaire de licence de tabac

tobacco licensee means a person who holds a tobacco licence issued under section 14. (titulaire de licence de tabac)

tobacco manufacturing equipment

matériel de fabrication du tabac

tobacco manufacturing equipment means any machinery or equipment designed or modified specifically for the manufacture of a tobacco product. (matériel de fabrication du tabac)

tobacco marking

mention obligatoire

tobacco marking means prescribed information that is required under this Act to be printed on or affixed to a container of tobacco products that are not required under this Act to be stamped. (mention obligatoire)

tobacco product

produit du tabac

tobacco product means manufactured tobacco, packaged raw leaf tobacco or cigars. (produit du tabac)

tobacco stick

bâtonnet de tabac

tobacco stick means any roll or tubular construction of tobacco intended for smoking, other than a cigar, that requires further preparation to be consumed. If a tobacco stick exceeds 90 mm in length or 800 mg, each portion of 60 mm or less or each portion of 650 mg or less, respectively, is considered to be a separate stick. (bâtonnet de tabac)

wine

vin

wine means

• (a) a beverage, containing more than 0.5% absolute ethyl alcohol by volume, that is produced without distillation, other than distillation to reduce the absolute ethyl alcohol content, by the alcoholic fermentation of

  • (i) an agricultural product other than grain,

  • (ii) a plant or plant product, other than grain, that is not an agricultural product, or

  • (iii) a product wholly or partially derived from an agricultural product or plant or plant product other than grain;

• (b) sake; and

• (c) a beverage described by paragraph (a) or (b) that is fortified not in excess of 22.9% absolute ethyl alcohol by volume. (vin)

wine licensee

titulaire de licence de vin

wine licensee means a person who holds a wine licence issued under section 14. (titulaire de licence de vin)

Marginal note:References to other enactments

3 A reference in this Act to a repealed enactment, or a portion of it, of the legislature of a province or territory shall, with respect to a subsequent transaction, matter or thing, be read as a reference to the provisions of any enactment replacing the repealed enactment or portion that relate to the same subject-matter as the repealed enactment or portion. If there is no replacement enactment or portion, or if there are no provisions in the replacement enactment that relate to the same subject-matter, the repealed enactment or portion shall be read as unrepealed in so far as is necessary to maintain or give effect to the reference.

Meaning of administration or enforcement of this Act

4 For greater certainty, a reference in this Act to administration or enforcement of this Act includes the collection of any amount payable under this Act.

Marginal note:Constructive possession

• 5 (1) For the purposes of subsections 30(1), 32(1) and 32.1(1), section 61, subsections 70(1) and 88(1) and sections 230 and 231, if one of two or more persons, with the knowledge and consent of the rest of them, has anything in the person’s possession, it is deemed to be in the custody and possession of each and all of them.

• Meaning of possession

  (2) In this section and in subsections 30(1), 32(1) and 32.1(1), section 61 and subsections 70(1) and 88(1), possession means not only having in one’s own personal possession but also knowingly

  • (a) having in the actual possession or custody of another person; or

  • (b) having in any place, whether belonging to or occupied by one’s self or not, for one’s own use or benefit or that of another person.

Marginal note:Arm’s length

• 6 (1) For the purposes of this Act,

  • (a) related persons are deemed not to deal with each other at arm’s length; and

  • (b) it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length.

• Marginal note:Related persons

  (2) For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that

  • (a) a reference in those subsections to “corporation” shall be read as a reference to “corporation or partnership”; and

  • (b) a reference in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as a reference to “rights” or “partners”, respectively.

PART 1Application and Administrative Matters

Application to Her Majesty

Marginal note:Act binding on Her Majesty

7 This Act is binding on Her Majesty and Her Majesty in right of a province.

Administration and Officers

Marginal note:Minister’s duty

8 The Minister shall administer and enforce this Act and the Commissioner may exercise the powers and perform the duties of the Minister under this Act.

Marginal note:Officers and employees

• 9 (1) The officers, employees and agents that are necessary to administer and enforce this Act shall be appointed, employed or engaged in the manner authorized by law.

• Marginal note:Delegation of powers

  (2) The Minister may authorize a designated officer or agent or a class of officers or agents to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial power or duty of the Minister, under this Act.

• Marginal note:Authorization

  (3) The Minister of Public Safety and Emergency Preparedness may authorize a designated officer or agent, or a class of officers or agents, to exercise powers and perform duties of that Minister under section 68.

Marginal note:Designation of police forces

• 10 (1) The Minister and the Minister of Public Safety and Emergency Preparedness may designate any police force in Canada for the purposes of the enforcement of any of the provisions of this Act that are specified in the designation, subject to any terms and conditions specified in the designation, for any period specified in the designation.

• Marginal note:Persons to have powers and duties of officers

  (2) All members of a police force designated under subsection (1) have the powers and duties of an officer for the purposes of the enforcement of the provisions of this Act specified in the designation.

• Marginal note:Designation to be published

  (3) A designation under subsection (1) or any variation or cancellation of that designation must be published in the Canada Gazette and is not effective before it is so published.

Marginal note:Designation of analysts

11 The Minister may designate any person or class of persons as an analyst for the purposes of this Act.

Marginal note:Administration of oaths

12 Any officer, if designated by the Minister for the purpose, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act, and every officer so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.

Inquiries

Marginal note:Authorization of inquiry

• 13 (1) The Minister may, for any purpose related to the administration or enforcement of this Act, authorize any person, whether or not the person is an officer, to make any inquiry that the Minister considers necessary with reference to anything relating to the administration or enforcement of this Act.

• Marginal note:Appointment of hearing officer

  (2) If the Minister authorizes a person to make an inquiry, the Minister shall without delay apply to the Tax Court for an order appointing a hearing officer before whom the inquiry will be held.

• Marginal note:Powers of hearing officer

  (3) For the purposes of an inquiry, a hearing officer has all of the powers conferred on a commissioner under sections 4 and 5 of the Inquiries Act and that may be conferred on a commissioner under section 11 of that Act.

• Marginal note:When powers to be exercised

  (4) A hearing officer shall exercise the powers conferred on a commissioner under section 4 of the Inquiries Act in relation to any person that the person authorized to make the inquiry considers appropriate for the conduct of the inquiry, but the hearing officer shall not exercise the power to punish any person unless, on application by the hearing officer, a judge certifies that the power may be exercised in the matter disclosed in the application and the applicant has given to the person in respect of whom the power is proposed to be exercised 24 hours notice of the hearing of the application, or any shorter notice that the judge considers reasonable.

• Marginal note:Rights of witnesses

  (5) Any person who gives evidence in an inquiry is entitled to be represented by counsel and, on request made by the person to the Minister, to receive a transcript of that evidence.

• Marginal note:Rights of person investigated

  (6) Any person whose affairs are investigated in the course of an inquiry is entitled to be present and to be represented by counsel throughout the inquiry unless the hearing officer, on application by the Minister or a person giving evidence, orders otherwise in relation to the whole or any part of the inquiry, on the ground that the presence of the person and their counsel, or either of them, would be prejudicial to the effective conduct of the inquiry.

PART 2Licences and Registrations

Licences

Marginal note:Issuance

• 14 (1) Subject to the regulations, on application, the Minister may issue to a person

  • (a) a spirits licence, authorizing the person to produce or package spirits;

  • (b) a wine licence, authorizing the person to produce or package wine;

  • (c) a user’s licence, authorizing the person to use bulk alcohol, non-duty-paid packaged alcohol or a restricted formulation;

  • (d) a tobacco licence, authorizing the person to manufacture tobacco products; or

  • (e) a tobacco dealer’s licence, authorizing the person to carry on the activity of a tobacco dealer.

• Marginal note:Deemed packaging excluded

  (2) A person is not entitled to a licence under paragraph (1)(a) or (b) by reason only of having been deemed to have packaged alcohol under section 77 or 82.

• Marginal note:Production excluded

  (3) A person is not entitled to a licence under paragraph (1)(a) by reason only of

  • (a) having been deemed to have produced spirits under section 131.2; or

  • (b) having produced spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol.

• Marginal note:Issuance of a wine licence

  (4) Subject to the regulations, on application by a person who is the holder of a spirits licence and a user’s licence, the Minister may issue to the person a wine licence, authorizing the person to fortify wine.

Registrations

Marginal note:Ferment-on-premises registration

15 Subject to the regulations, on application, the Minister may issue a ferment-on-premises registration to a person authorizing the person to possess at their ferment-on-premises facility bulk wine produced at the premises by an individual and owned by the individual.

Marginal note:User’s registration

16 Subject to the regulations, on application, the Minister may issue a user’s registration authorizing the use of non-duty-paid packaged spirits by

• (a) a scientific and research laboratory in receipt annually of aid from the Government of Canada or a province, for scientific purposes;

• (b) a university or other post-secondary educational institution recognized by a province, for scientific purposes;

• (c) a health care facility, for medicinal and scientific purposes; or

• (d) a health institution in receipt annually of aid from the Government of Canada or a province, for medicinal and scientific purposes.

Marginal note:Alcohol registration

17 Subject to the regulations, on application, the Minister may issue an alcohol registration to a person authorizing the person to store or transport bulk alcohol, specially denatured alcohol or a restricted formulation.

Marginal note:SDA registration

• 18 (1) Subject to the regulations, on application, the Minister may issue a specially denatured alcohol registration to a person authorizing the person to possess and use specially denatured alcohol.

• Marginal note:Restrictions on grades of SDA

  (2) The Minister may impose restrictions on the use of particular grades of specially denatured alcohol.

Excise Warehouses

Marginal note:Issuance of licence

• 19 (1) Subject to the regulations, on application, the Minister may issue an excise warehouse licence to a person who is not a retailer of alcohol authorizing the person to possess in their excise warehouse non-duty-paid packaged alcohol or manufactured tobacco or cigars that are not stamped.

• Marginal note:Eligible retailers of alcohol

  (2) Even if they are retailers of alcohol, the following persons may be issued an excise warehouse licence under subsection (1):

  • (a) an alcohol licensee;

  • (b) a liquor authority; and

  • (c) any person who supplies goods in accordance with the Ships’ Stores Regulations.

Special Excise Warehouses

Marginal note:Issuance of licence

• 20 (1) Subject to the regulations, on application, the Minister may issue a special excise warehouse licence to a person who is authorized by a tobacco licensee to be the only person, other than the licensee, who is entitled to distribute to an accredited representative manufactured tobacco or cigars manufactured by the licensee.

• Marginal note:Single licence

  (2) The Minister shall not issue to the same person more than one special excise warehouse licence.

• Marginal note:Licence limited to one premises

  (3) The Minister shall not specify more than one premises of a special excise warehouse licensee as a special excise warehouse.

Marginal note:Return of tobacco

• 21 (1) If a person ceases to be authorized by a tobacco licensee to distribute to an accredited representative manufactured tobacco or cigars manufactured by the tobacco licensee,

  • (a) the person shall immediately return the tobacco or cigars of that licensee that are stored in the person’s special excise warehouse to the excise warehouse of the tobacco licensee; and

  • (b) the tobacco licensee shall immediately notify the Minister in writing that the person has ceased to be so authorized.

• Marginal note:Cancellation

  (2) The Minister shall cancel the special excise warehouse licence of the person if the person is no longer authorized by any tobacco licensee to distribute to an accredited representative manufactured tobacco or cigars.

Duty Free Shops

Marginal note:Issuance of licence

22 Subject to the regulations, the Minister may, on application, issue to a person who is licensed under the Customs Act to operate a duty free shop a licence authorizing the person to possess and sell imported manufactured tobacco that is subject to a special duty under section 53.

General

Marginal note:Refusal to issue licence or registration

• 23 (1) The Minister may refuse to issue a licence or registration to a person if the Minister has reason to believe

  • (a) that access to the person’s premises will be denied or impeded by any person; or

  • (b) that the refusal is otherwise in the public interest.

• Marginal note:Amendment or renewal

  (2) Subject to the regulations, the Minister may amend, suspend, renew, cancel or reinstate any licence or registration.

• Marginal note:Cancellation, etc. — access to premises

  (2.1) The Minister may amend, suspend or cancel any licence or registration of a person if

  • (a) access to the premises of the licensee or registrant is denied or impeded by any person; or

  • (b) it is otherwise in the public interest.

• Marginal note:Conditions imposed by Minister

  (3) On issuing a licence or registration, or at any later time, the Minister

  • (a) may, subject to the regulations, specify the activities that may be carried on under the licence or registration and the premises where those activities may be carried on;

  • (b) shall, in the case of a spirits licence or a tobacco licence, require security in a form satisfactory to the Minister and in an amount determined in accordance with the regulations; and

  • (c) may impose any other conditions that the Minister considers appropriate with respect to the carrying on of activities under the licence or registration.

Marginal note:Compliance with Act

24 A licensee or registrant shall not carry on any activity under their licence or registration otherwise than in accordance with this Act.

Marginal note:Licences and registrations not statutory instruments

24.1 For greater certainty, a licence or registration issued under this Act is not a statutory instrument for the purposes of the Statutory Instruments Act.

PART 3Tobacco

Regulation of Tobacco

Marginal note:Manufacturing tobacco product without a licence prohibited

• 25 (1) No person shall, other than in accordance with a tobacco licence issued to the person, manufacture a tobacco product.

• Marginal note:Deemed manufacturer

  (2) A person who, whether for consideration or otherwise, provides or offers to provide in their place of business equipment for use in that place by another person in the manufacture of a tobacco product is deemed to be manufacturing the tobacco product and the other person is deemed not to be manufacturing the tobacco product.

• Marginal note:Exception — manufacturing for personal use

  (3) An individual who is not a tobacco licensee may manufacture manufactured tobacco or cigars

  • (a) from packaged raw leaf tobacco or manufactured tobacco on which the duty has been paid, if the tobacco or cigars are for their personal use; or

  • (b) from raw leaf tobacco grown on land on which the individual resides, if

    • (i) the tobacco or cigars are for their personal use or that of the members of their family who reside with the individual and who are 18 years of age or older, and

    • (ii) the quantity of tobacco or cigars manufactured in any year does not exceed 15 kg for the individual and each member of the individual’s family who resides with the individual and who is 18 years of age or older.

Marginal note:Tobacco dealer

26 No person shall carry on the activity of a tobacco dealer except in accordance with a tobacco dealer’s licence issued to the person.

Marginal note:Unlawful packaging or stamping

27 No person shall package or stamp any raw leaf tobacco or tobacco product unless the person

• (a) is a tobacco licensee; or

• (b) is the importer or owner of the tobacco or product and it has been placed in a sufferance warehouse for the purpose of being stamped.

Marginal note:Unlawful removal

• 28 (1) Except as permitted under section 40, no person shall remove raw leaf tobacco or a tobacco product from the premises of a tobacco licensee unless the tobacco or product is packaged and

  • (a) if the product is intended for the duty-paid market, it is stamped; or

  • (b) if the product is not intended for the duty-paid market, all tobacco markings that are required under this Act to be printed on or affixed to its container are so printed or affixed.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a tobacco licensee who removes from their premises

  • (a) raw leaf tobacco for

    • (i) return to a licensed tobacco dealer or a tobacco grower,

    • (ii) delivery to another tobacco licensee, or

    • (iii) export; or

  • (b) partially manufactured tobacco for delivery to another tobacco licensee or for export.

Marginal note:Unlawful removal from premises of tobacco dealer

• 28.1 (1) No person shall remove raw leaf tobacco from the premises of a licensed tobacco dealer.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a licensed tobacco dealer who removes from their premises raw leaf tobacco for

  • (a) return to a tobacco grower;

  • (b) delivery to a tobacco licensee or to another licensed tobacco dealer; or

  • (c) export.

Marginal note:Prohibition — certain tobacco products for sale, etc.

29 No person shall purchase or receive for sale a tobacco product

• (a) from a manufacturer who the person knows, or ought to know, is not a tobacco licensee;

• (b) that is required under this Act to be packaged and stamped unless it is so packaged and stamped; or

• (c) that the person knows, or ought to know, is fraudulently stamped.

Marginal note:Selling, etc., unstamped raw leaf tobacco

• 30 (1) No person shall dispose of, sell, offer for sale, purchase or have in their possession raw leaf tobacco unless the tobacco is packaged and stamped.

• Marginal note:Exception

  (2) Subsection (1) does not apply to

  • (a) a person who is a tobacco licensee or a licensed tobacco dealer; or

  • (b) the possession of raw leaf tobacco

    • (i) in a customs bonded warehouse or a sufferance warehouse by the licensee of that warehouse,

    • (ii) by a body established under provincial law for the marketing of raw leaf tobacco grown in the province, or

    • (iii) by a prescribed person who is transporting the tobacco under prescribed circumstances and conditions.

  • (c) [Repealed, 2007, c. 18, s. 77]

Marginal note:Exceptions to sections 26 and 30

31 A tobacco grower does not contravene section 26 or 30 by reason only that the grower deals in or has in their possession raw leaf tobacco

• (a) grown by the grower on their property for sale to a tobacco licensee or a licensed tobacco dealer or for other disposition to a tobacco licensee, if the tobacco is either on the grower’s property or is being transported by the grower

  • (i) in connection with the curing of the tobacco,

  • (ii) for delivery to or return from a tobacco licensee or a licensed tobacco dealer, or

  • (iii) for delivery to or return from a body established under provincial law for the marketing of raw leaf tobacco grown in the province;

• (b) grown by any other person, if the grower operates a tobacco drying kiln on the grower’s property and the grower’s possession is solely for the purpose of curing the tobacco and returning it to the other person immediately after completion of the curing process or exporting it in accordance with paragraph (c); or

• (c) that is to be exported, if the grower has the written approval of the Minister and complies with any conditions that the Minister considers appropriate.

Marginal note:Unlawful possession or sale of tobacco products

• 32 (1) No person shall sell, offer for sale or have in their possession a tobacco product unless it is stamped.

• Marginal note:Exceptions — possession

  (2) Subsection (1) does not apply to the possession of a tobacco product by

  • (a) a tobacco licensee at the place of manufacture of the product;

  • (a.1) in the case of manufactured tobacco or cigars, a tobacco licensee who manufactured the tobacco or cigars, at their excise warehouse;

  • (b) in the case of cigars or imported manufactured tobacco, an excise warehouse licensee at the excise warehouse of the licensee;

  • (c) in the case of manufactured tobacco or cigars, a special excise warehouse licensee at the special excise warehouse of the licensee, if the licensee is permitted under this Act to distribute the tobacco or cigars;

  • (d) in the case of an imported tobacco product, a prescribed person who is transporting the product under prescribed circumstances and conditions;

  • (d.1) in the case of manufactured tobacco or cigars manufactured in Canada, a prescribed person who is transporting the tobacco or cigars under prescribed circumstances and conditions;

  • (e) in the case of an imported tobacco product, a sufferance warehouse licensee in their sufferance warehouse;

  • (e.1) in the case of imported manufactured tobacco or cigars, a customs bonded warehouse licensee in their customs bonded warehouse;

  • (f) in the case of cigars, a duty free shop licensee in their duty free shop;

  • (g) in the case of imported manufactured tobacco, a duty free shop licensee in their duty free shop if the licensee holds a licence issued under section 22;

  • (h) in the case of manufactured tobacco or cigars, an accredited representative for their personal or official use;

  • (i) in the case of cigars or imported manufactured tobacco, a person as ships’ stores if the acquisition and possession of the product by that person are in accordance with the Ships’ Stores Regulations;

  • (j) an individual who has imported the product for their personal use in quantities not in excess of prescribed limits; or

  • (k) in the case of manufactured tobacco or cigars, an individual who has manufactured the tobacco or cigars in accordance with subsection 25(3).

• Marginal note:Exceptions — sale or offer for sale

  (3) Subsection (1) does not apply where

  • (a) a tobacco licensee sells or offers to sell manufactured tobacco or cigars that are exported by the licensee in accordance with this Act;

  • (b) a tobacco licensee sells or offers to sell

    • (i) manufactured tobacco or cigars to a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the tobacco or cigars,

    • (ii) manufactured tobacco or cigars to an accredited representative for their personal or official use,

    • (iii) cigars to an excise warehouse licensee for delivery as ships’ stores in accordance with the Ships’ Stores Regulations,

    • (iv) cigars to a duty free shop for sale or offer for sale in accordance with the Customs Act, or

    • (v) cigars as ships’ stores in accordance with the Ships’ Stores Regulations;

  • (c) a special excise warehouse licensee sells or offers to sell manufactured tobacco or cigars to an accredited representative for their personal or official use, if the licensee is permitted under this Act to distribute the tobacco or cigars;

  • (d) an excise warehouse licensee sells or offers to sell

    • (i) imported manufactured tobacco or cigars that are exported by the licensee in accordance with this Act,

    • (ii) imported manufactured tobacco or cigars to an accredited representative for their personal or official use or to a duty free shop, or

    • (iii) cigars or imported manufactured tobacco as ships’ stores in accordance with the Ships’ Stores Regulations;

  • (e) a duty free shop licensee sells or offers to sell cigars in accordance with the Customs Act;

  • (f) a duty free shop licensee who holds a licence issued under section 22 sells or offers to sell imported manufactured tobacco in accordance with the Customs Act;

  • (g) a customs bonded warehouse licensee sells or offers to sell imported manufactured tobacco or cigars that are exported by the licensee in accordance with this Act;

  • (h) a customs bonded warehouse licensee sells or offers to sell imported manufactured tobacco or cigars

    • (i) to an accredited representative for their personal or official use,

    • (ii) to a duty free shop for sale or offer for sale in accordance with the Customs Act, or

    • (iii) as ships’ stores in accordance with the Ships’ Stores Regulations; and

  • (i) a person sells or offers for sale cigars or imported manufactured tobacco as ships’ stores in accordance with the Ships’ Stores Regulations.

Marginal note:Prohibition — possession of tobacco manufacturing equipment

• 32.1 (1) No person shall possess tobacco manufacturing equipment with the intent of manufacturing a tobacco product unless

  • (a) the person is a tobacco licensee; or

  • (b) the person is an individual manufacturing manufactured tobacco or cigars for their personal use as permitted under subsection 25(3).

• Marginal note:Prohibition — importation of tobacco manufacturing equipment

  (2) No person shall import tobacco manufacturing equipment unless

  • (a) the person is a tobacco licensee;

  • (b) the equipment is designed for use by an individual manufacturing manufactured tobacco or cigars for their personal use as permitted under subsection 25(3) and is not designed for commercial manufacturing;

  • (c) the person provides evidence satisfactory to the Minister of Public Safety and Emergency Preparedness that the equipment is imported

    • (i) on a tobacco licensee’s behalf,

    • (ii) for the sole purpose of maintenance, alteration or repair in Canada, if the equipment is intended to be exported immediately after the maintenance, alteration or repair is completed,

    • (iii) by or on behalf of a person who carries on a business of supplying that equipment, or

    • (iv) for in-transit movement through Canada; or

  • (d) it is imported in prescribed circumstances or under prescribed terms and conditions.

Marginal note:No sale or distribution except in original package

33 No person shall

• (a) sell or offer for sale cigars otherwise than in or from the original package;

• (b) sell or offer for sale manufactured tobacco otherwise than in the original package; or

• (c) distribute free of charge for advertising purposes any tobacco product otherwise than in or from the original package.

Marginal note:Packaging and stamping of tobacco

34 A tobacco licensee who manufactures a tobacco product shall not enter the tobacco product into the duty-paid market unless

• (a) the product has been packaged by the licensee;

• (b) the package has printed on it prescribed information; and

• (c) the product is stamped at the time of packaging.

Marginal note:Packaging and stamping of imported tobacco

• 35 (1) If a tobacco product or raw leaf tobacco is imported, it must, before it is released under the Customs Act for entry into the duty-paid market,

  • (a) be packaged in a package that has printed on it prescribed information; and

  • (b) be stamped.

• Marginal note:Exception for certain importations

  (2) Subsection (1) does not apply to

  • (a) partially manufactured tobacco that is imported by a tobacco licensee for further manufacturing by the licensee;

  • (b) manufactured tobacco or cigars that a tobacco licensee is authorized to import under subsection 41(2);

  • (c) a tobacco product that is imported by an individual for their personal use in quantities not in excess of prescribed limits; or

  • (d) raw leaf tobacco that is imported by a tobacco licensee or a licensed tobacco dealer.

Marginal note:Absence of stamping — notice

36 The absence of stamping on a tobacco product is notice to all persons that duty has not been paid on the product.

Marginal note:Unstamped products to be warehoused

37 If manufactured tobacco or cigars manufactured in Canada are not stamped by a tobacco licensee, the tobacco licensee shall immediately enter the tobacco or cigars into the licensee’s excise warehouse.

Marginal note:No warehousing of tobacco without markings

• 38 (1) Subject to subsections (3) and (4), no person shall enter into an excise warehouse a container of manufactured tobacco or cigars unless the container has printed on it or affixed to it tobacco markings and other prescribed information.

• Marginal note:No delivery of imported tobacco without markings

  (2) Subject to subsections (2.1) and (3), no person shall deliver a container of imported manufactured tobacco or cigars that does not have printed on it or affixed to it tobacco markings and other prescribed information to

  • (a) a duty free shop for sale or offer for sale in accordance with the Customs Act;

  • (b) an accredited representative; or

  • (c) a customs bonded warehouse.

• Marginal note:Delivery of imported stamped tobacco

  (2.1) A container of imported manufactured tobacco that was manufactured outside Canada and is stamped may be delivered to

  • (a) a duty free shop for sale or offer for sale in accordance with the Customs Act; or

  • (b) a customs bonded warehouse.

• Marginal note:Exception for prescribed manufactured tobacco

  (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 prescribed.

• Marginal note:Exception for prescribed cigarettes

  (4) A container of cigarettes does not require tobacco markings to be printed on or affixed to it if the cigarettes are of a particular type or formulation manufactured in Canada and exported under a brand that is also applied to cigarettes of a different type or formulation that are manufactured and sold in Canada and

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

  • (b) cigarettes of the particular type or formulation have never been sold in Canada under that brand or any other brand.

• Marginal note:Distinguishing different cigarettes

  (5) For the purpose of subsection (4), a cigarette of a particular type or formulation sold under a brand may be considered to be different from another cigarette sold under that brand if it is reasonable to consider them to be different having regard to their physical characteristics before and during consumption.

Marginal note:Non-compliant imports

39 If an imported tobacco product or imported raw leaf tobacco intended for the duty-paid market is not stamped when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being stamped.

Marginal note:Removal of raw leaf tobacco or waste tobacco

• 40 (1) No person other than a tobacco licensee shall remove raw leaf tobacco or tobacco that is waste from the premises of the licensee.

• Marginal note:Removal requirements

  (2) If raw leaf tobacco or tobacco that is waste is removed from the premises of a tobacco licensee, the licensee shall deal with the tobacco in the manner authorized by the Minister.

Marginal note:Re-working or destruction of tobacco

• 41 (1) A tobacco licensee may re-work or destroy a tobacco product in the manner authorized by the Minister.

• Marginal note:Importation for re-working or destruction

  (2) The Minister may authorize a tobacco licensee to import any manufactured tobacco or cigars manufactured in Canada by the licensee for re-working or destruction by the licensee in accordance with subsection (1).

Duty on Tobacco

Marginal note:Imposition

• 42 (1) Duty is imposed on tobacco products manufactured in Canada or imported and on imported raw leaf tobacco at the rates set out in Schedule 1 and is payable

  • (a) in the case of tobacco products manufactured in Canada, by the tobacco licensee who manufactured the tobacco products, at the time they are packaged; and

  • (b) in the case of imported tobacco products or raw leaf tobacco, by the importer, owner or other person who is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or who would be liable to pay that duty on the tobacco or products if they were subject to that duty.

• Marginal note:Imported partially manufactured tobacco

  (2) The following rules apply to partially manufactured tobacco that is imported by a tobacco licensee for further manufacture:

  • (a) for the purposes of this Act, the tobacco is deemed to be manufactured in Canada by the licensee; and

  • (b) paragraph (1)(a) applies to the tobacco and paragraph (1)(b) and section 44 do not apply.

Marginal note:Additional duty on cigars

43 In addition to the duty imposed under section 42, duty is imposed on cigars at the rates set out in Schedule 2 and is payable

• (a) in the case of cigars manufactured and sold in Canada, by the tobacco licensee who manufactured the cigars, at the time of their delivery to a purchaser; and

• (b) in the case of imported cigars, by the importer, owner or other person who is liable under the Customs Act to pay duty levied under section 20 of the Customs Tariff or who would be liable to pay that duty on the cigars if they were subject to that duty.

Marginal note:Application of Customs Act

44 The duties imposed under sections 42 and 43 on imported raw leaf tobacco and tobacco products shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duties were a duty levied under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

Marginal note:Duty relieved

• 45 (1) The duties imposed under sections 42 and 43 are relieved on a tobacco product that is not stamped.

• Marginal note:Tobacco imported by an individual for personal use

  (2) Subsection (1) does not apply to the importation of tobacco products by an individual for their personal use to the extent that the quantity of the products imported exceeds the quantity permitted under Chapter 98 of the List of Tariff Provisions set out in the schedule to the Customs Tariff to be imported without the payment of duties (as defined in Note 4 to that Chapter).

Marginal note:Duty relieved — raw leaf tobacco

46 The duty imposed under section 42 is relieved on raw leaf tobacco that is imported by a tobacco licensee or a licensed tobacco dealer.

Marginal note:Duty relieved — stamped tobacco imported by individual

• 47 (1) The duty imposed under section 42 is relieved on manufactured tobacco imported by an individual for their personal use if it was manufactured in Canada and is stamped.

• Marginal note:Duty relieved — reimportation of stamped tobacco by individual

  (2) The duty imposed under section 42 is relieved on manufactured tobacco imported by an individual for their personal use if it was manufactured outside Canada, was previously imported into Canada and is stamped.

Marginal note:Duty relieved — importation for destruction

48 The duty imposed under paragraph 42(1)(b) is relieved on stamped manufactured tobacco that was manufactured in Canada by a tobacco licensee and that is imported by the licensee for re-working or destruction in accordance with section 41.

Excise Warehouses

Marginal note:Restriction — entering tobacco

49 No person shall enter into an excise warehouse

• (a) a tobacco product that is stamped; or

• (b) any other tobacco product except in accordance with this Act.

Marginal note:Definitions

• 50 (1) The definitions in this subsection apply in this section.

  Canadian manufactured tobacco

  Canadian manufactured tobacco means manufactured tobacco that is manufactured in Canada but does not include partially manufactured tobacco or foreign brand tobacco. (tabac fabriqué canadien)

  foreign brand tobacco

  foreign brand tobacco means manufactured tobacco in respect of which the special duty imposed under section 56 is relieved because of section 58. (tabac de marque étrangère)

• Marginal note:Categories of Canadian manufactured tobacco

  (2) For the purposes of subsection (5), each of the following constitutes a category of Canadian manufactured tobacco:

  • (a) cigarettes;

  • (b) tobacco sticks; and

  • (c) manufactured tobacco other than cigarettes and tobacco sticks.

• Marginal note:Prohibition on removal

  (3) No person shall remove from an excise warehouse or a special excise warehouse manufactured tobacco or cigars manufactured in Canada.

• Marginal note:Exception for Canadian manufactured tobacco

  (4) Subject to the regulations, Canadian manufactured tobacco may be removed from the excise warehouse of the tobacco licensee who manufactured it only if it is

  • (a) for export by the licensee in accordance with subsection (5) and not for delivery to a foreign duty free shop or as foreign ships’ stores;

  • (b) for delivery to the special excise warehouse of a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the Canadian manufactured tobacco; or

  • (c) for delivery to an accredited representative for their personal or official use.

• Marginal note:Maximum quantity permitted to be exported from excise warehouse

  (5) A tobacco licensee shall not, at a particular time in a calendar year, remove a particular quantity of a category of Canadian manufactured tobacco from the licensee’s excise warehouse for export if the total quantity of that category removed in the year up to that time by the licensee from the warehouse for export, plus the particular quantity, exceeds 1.5% of the total quantity of that category manufactured by the licensee in the preceding calendar year.

• Marginal note:Quantities to be excluded for the purposes of subsection (5)

  (6) In subsection (5), the total quantity of a category of Canadian manufactured tobacco manufactured by a licensee in the preceding calendar year does not include any quantity of that category that was exported by the licensee for delivery to a foreign duty free shop or as foreign ships’ stores.

• Marginal note:Exception for cigars

  (7) Subject to the regulations, cigars manufactured in Canada may be removed from the excise warehouse of the tobacco licensee who manufactured them only if they are

  • (a) for export by the licensee in accordance with this Act;

  • (b) for delivery to the special excise warehouse of a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the cigars;

  • (c) for delivery to an accredited representative for their personal or official use;

  • (d) for delivery as ships’ stores in accordance with the Ships’ Stores Regulations;

  • (e) for delivery to another excise warehouse, if the excise warehouse licensee of the other excise warehouse certifies in the prescribed form to the tobacco licensee that the cigars are for delivery as ships’ stores in accordance with the Ships’ Stores Regulations; or

  • (f) for delivery to a duty free shop for sale or offer for sale in accordance with the Customs Act.

• Marginal note:Exception for partially manufactured tobacco or foreign brand tobacco

  (8) Subject to the regulations, partially manufactured tobacco or foreign brand tobacco may be removed from the excise warehouse of the tobacco licensee who manufactured it only if it is exported by the licensee and not for delivery to a foreign duty free shop or as foreign ships’ stores.

• Marginal note:Removal from warehouse — ships’ stores

  (9) Subject to the regulations, cigars manufactured in Canada may be removed from an excise warehouse referred to in paragraph (7)(e) for delivery as ships’ stores in accordance with the Ships’ Stores Regulations.

• Marginal note:Removal from warehouse for re-working or destruction

  (10) Subject to the regulations, manufactured tobacco or cigars manufactured in Canada may be removed from the excise warehouse of the tobacco licensee who manufactured them if they are removed for re-working or destruction by the licensee in accordance with section 41.

• Marginal note:Removal from special excise warehouse — accredited representatives

  (11) Subject to the regulations, Canadian manufactured tobacco and cigars may be removed from a special excise warehouse for delivery to an accredited representative for their personal or official use if the special excise warehouse licensee is permitted under this Act to distribute the tobacco or cigars.

Marginal note:Removal of imported tobacco

• 51 (1) No person shall remove imported manufactured tobacco or cigars from an excise warehouse.

• Marginal note:Exception

  (2) Subject to the regulations, imported manufactured tobacco or cigars may be removed from an excise warehouse

  • (a) for delivery to another excise warehouse;

  • (b) for delivery to an accredited representative for their personal or official use;

  • (c) for delivery as ships’ stores, in accordance with the Ships’ Stores Regulations;

  • (d) for delivery to a duty free shop for sale or offer for sale in accordance with the Customs Act; or

  • (e) for export in accordance with this Act by the excise warehouse licensee.

Marginal note:Restriction — special excise warehouse

52 No special excise warehouse licensee shall store manufactured tobacco or cigars that are manufactured in Canada in their special excise warehouse for any purpose other than the sale and distribution of the tobacco or cigars to an accredited representative for the personal or official use of the representative.

Special Duties on Tobacco Products

Marginal note:Special duty on imported manufactured tobacco delivered to duty free shop

• 53 (1) A special duty is imposed, at the rates set out in section 1 of Schedule 3, on imported manufactured tobacco that is delivered to a duty free shop and that is not stamped.

• Marginal note:When and by whom duty is payable

  (2) The special duty is payable at the time of delivery and is payable by the duty free shop licensee.

Meaning of traveller’s tobacco

• 54 (1) In this section, traveller’s tobacco means manufactured tobacco that is imported by a person at any time and

  • (a) is classified under tariff item No. 9804.10.00, 9804.20.00, 9805.00.00 or 9807.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff; or

  • (b) would be classified under tariff item No. 9804.10.00 or 9804.20.00 in that List but for the fact that the total value for duty as determined under section 46 of the Customs Act of all goods imported by the person at that time exceeds the maximum value specified in that tariff item.

• Marginal note:Special duty on traveller’s tobacco

  (2) A special duty is imposed on traveller’s tobacco at the time it is imported at the rates set out in section 2 of Schedule 3.

• Marginal note:When and how duty is payable

  (3) The special duty shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the special duty were a duty levied under section 20 of the Customs Tariff, and for those purposes, the Customs Act applies with any modifications that the circumstances require.

• Marginal note:Exception

  (4) The special duty is not imposed on traveller’s tobacco imported by an individual for their personal use if duty under section 42 was previously imposed on the tobacco and the tobacco is stamped.

Definition of tobacco product

55 In sections 56 to 58, tobacco product means manufactured tobacco other than partially manufactured tobacco.

Marginal note:Imposition

• 56 (1) A special duty is imposed on a tobacco product that is manufactured in Canada and exported

  • (a) if the export is in accordance with paragraph 50(4)(a) by the tobacco licensee who manufactured it, at the rates set out in section 3 of Schedule 3; or

  • (b) in any other case, at the rates set out in section 4 of Schedule 3.

• Marginal note:When and by whom duty is payable

  (2) Subject to sections 57 and 58, the special duty is payable, at the time the tobacco product is exported, by

  • (a) if paragraph (1)(a) applies, the tobacco licensee who manufactured it; or

  • (b) if paragraph (1)(b) applies, the person who exported it.

Marginal note:Duty relieved — deliveries to a foreign duty free shop and as foreign ships’ stores

57 The special duty imposed under section 56 is relieved on a tobacco product that is exported by the tobacco licensee who manufactured it for delivery to a foreign duty free shop or as foreign ships’ stores.

Marginal note:Duty relieved — prescribed tobacco product

• 58 (1) The special duty imposed under section 56 is relieved on a tobacco product of a particular brand if

  • (a) the tobacco product of that brand is prescribed;

  • (b) during the three-year period before the year in which the tobacco product of that brand is exported, the tobacco product of that brand was not sold in Canada, other than in a duty free shop, except in quantities not significantly greater than the minimum quantities sufficient for the purposes of registering the trade mark for that brand; and

  • (c) during any year before the three-year period referred to in paragraph (b), sales in Canada of the product of that brand never exceeded

    • (i) 0.5% of total sales in Canada of similar products, or

    • (ii) if another percentage that is less than 0.5% is prescribed for the purposes of this subsection, that percentage of total sales in Canada of similar products.

• Marginal note:Duty relieved — prescribed cigarettes

  (2) The special duty imposed under section 56 is relieved on cigarettes of a particular type or formulation manufactured in Canada and exported under a brand that is also applied to cigarettes of a different type or formulation that are manufactured and sold in Canada if

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

  • (b) cigarettes of the particular type or formulation have never been sold in Canada under that brand or any other brand.

• Marginal note:Distinguishing different cigarettes

  (3) For the purpose of subsection (2), a cigarette of a particular type or formulation sold under a brand may be considered to be different from another cigarette sold under that brand if it is reasonable to consider them to be different having regard to their physical characteristics before and during consumption.

PART 3.1Tobacco Products Inventory Tax

Marginal note:Definitions

58.1 The following definitions apply in this Part.

loose tobacco

tabac à cigarettes

loose tobacco means loose, fine-cut manufactured tobacco for use in making cigarettes. (tabac à cigarettes)

separate retail establishment

établissement de détail distinct

separate retail establishment of a person means a shop or store of the person

• (a) that is geographically separate from other places of business of the person;

• (b) at which, in the ordinary course of the person’s business, the person regularly sells, otherwise than through vending machines, tobacco products to consumers, within the meaning of section 123 of the Excise Tax Act, attending at the shop or store; and

• (c) in respect of which separate records are maintained. (établissement de détail distinct)

taxed tobacco

tabac imposé

taxed tobacco of a person means cigarettes, tobacco sticks, loose tobacco and cigars, in respect of which duty has been imposed under section 42 before January 1, 2008 at a rate set out in paragraph 1(b), 2(b) or 3(b) of Schedule 1 or in section 4 of that Schedule, as those provisions read on December 31, 2007, and that, at the beginning of January 1, 2008,

• (a) were owned by that person for sale in the ordinary course of a business of the person;

• (b) were not held in a vending machine; and

• (c) were not relieved from that duty under this Act. (tabac imposé)

unit

unité

unit means one cigarette, tobacco stick, gram of loose tobacco or cigar. (unité)

Marginal note:Imposition of tax

58.2 Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed tobacco of the person at the rate of

• (a) 0.295 cent per cigarette;

• (b) 0.275 cent per tobacco stick;

• (c) 0.195 cent per gram of loose tobacco; and

• (d) 0.19 cent per cigar.

Marginal note:Exemption for small retail inventory

58.3 Tax under this Part in respect of the inventory of all taxed tobacco of a person that is held at the beginning of January 1, 2008 at a separate retail establishment of the person is not payable if that retail establishment holds inventory of 30,000 or fewer units.

Marginal note:Taking of inventory

58.4 Every person liable to pay tax under this Part shall, for the purposes of this Part, determine that person’s inventory of all taxed tobacco.

Marginal note:Returns

• 58.5 (1) Every person liable to pay tax under this Part shall, on or before February 29, 2008, file a return with the Minister in the prescribed form and manner.

• Marginal note:Separate returns

  (2) A person authorized under subsection 239(2) of the Excise Tax Act to file separate returns in respect of a separate branch or division may file separate returns under this Part in respect of that branch or division.

Marginal note:Payment

• 58.6 (1) Every person shall pay to the Receiver General the total tax payable by the person under this Part on or before February 29, 2008.

• Marginal note:Minimum interest

  (2) No interest in respect of an amount payable by a person under this Part is payable if, at the time the person pays the amount, the total of that interest otherwise payable is less than $25.

• Marginal note:Extension

  (3) The Minister may at any time extend in writing the time for filing a return, or paying the tax payable, under this Part and, where the Minister so extends the time,

  • (a) the return shall be filed or tax payable shall be paid within the time as so extended; and

  • (b) interest is payable under section 170 as if the time had not been extended.

PART 4Alcohol

General

Marginal note:Application — Importation of Intoxicating Liquors Act

59 For greater certainty, the Importation of Intoxicating Liquors Act continues to apply to the importation, sending, taking and transportation of intoxicating liquor into a province.

Marginal note:Importations involving a provincial authority

59.1 If alcohol is imported under circumstances in which subsection 3(1) of the Importation of Intoxicating Liquors Act applies, the alcohol is deemed, for the purposes of this Act and subsection 21.2(3) of the Customs Tariff, to have been imported by the person who would have been the importer in the absence of that subsection 3(1) and not by Her Majesty in right of a province or a liquor authority.

Marginal note:Prohibition — production and packaging of spirits

• 60 (1) No person shall, except in accordance with a spirits licence issued to the person, produce or package spirits.

• Marginal note:Exception

  (2) Subsection (1) does not apply to

  • (a) the packaging of spirits from a marked special container by a purchaser at a bottle-your-own premises; or

  • (b) the production of spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol.

Marginal note:Prohibition — possession of still

61 No person shall possess a still or other equipment suitable for the production of spirits with the intent of producing spirits unless the person

• (a) is a spirits licensee;

• (b) has a pending application for a spirits licence; or

• (c) possesses the still or equipment solely for the purpose of producing spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol.

Marginal note:Prohibition — production and packaging of wine

• 62 (1) No person shall, except in accordance with a wine licence issued to the person, produce or package wine.

• Marginal note:Exception

  (2) Subsection (1) does not apply to

  • (a) the production of wine by an individual for their personal use;

  • (b) the packaging of wine referred to in paragraph (a) by an individual for their personal use; or

  • (c) the packaging of wine from a marked special container by a purchaser at a bottle-your-own premises.

Marginal note:Prohibition — fortification of wine

62.1 Except as permitted under section 130, no person shall use bulk spirits to fortify bulk wine.

Marginal note:Prohibition — sale of wine produced for personal use

63 No person shall sell or put to a commercial use wine that was produced, or produced and packaged, by an individual for their personal use.

Marginal note:Wine produced by individual

64 For the purposes of this Act, wine is not produced or packaged by an individual if it has been produced or packaged by a person acting on their behalf.

Marginal note:Prohibition — ferment-on-premises facility

65 No person shall carry on at a ferment-on-premises facility any activity specified in a licence or registration issued under this Act other than an activity specified in a ferment-on-premises registration.

Marginal note:Application — in-transit and transhipped alcohol

66 Sections 67 to 72, 75, 76, 80, 85, 88, 97 to 100 and 102 do not apply to imported alcohol or specially denatured alcohol that is, in accordance with the Customs Act, the Customs Tariff and the regulations made under those Acts,

• (a) transported by a customs bonded carrier from a place outside Canada to another place outside Canada;

• (b) stored in a customs bonded warehouse or sufferance warehouse for subsequent delivery to a place outside Canada; or

• (c) transported by a customs bonded carrier

  • (i) from a place outside Canada to a customs bonded warehouse or a sufferance warehouse for subsequent delivery to a place outside Canada, or

  • (ii) from a customs bonded warehouse or a sufferance warehouse to a place outside Canada.

Marginal note:Prohibition — sale of alcohol

67 No person shall sell

• (a) bulk alcohol unless it was produced or imported in accordance with this Act;

• (b) packaged alcohol unless it was, in accordance with this Act,

  • (i) produced and packaged in Canada,

  • (ii) imported and packaged in Canada, or

  • (iii) imported; or

• (c) a marked special container of alcohol unless it was marked in accordance with this Act.

Marginal note:Availability and sampling of imported DA and SDA

• 68 (1) Any person who imports a product that is reported under the Customs Act as being denatured alcohol or specially denatured alcohol shall make the product available for sampling and the product is required to be sampled by the Minister of Public Safety and Emergency Preparedness before it is released under that Act.

• Marginal note:Testing

  (2) The samples must be tested to verify that the product is denatured alcohol or specially denatured alcohol.

• Marginal note:Minister may waive

  (3) The Minister of Public Safety and Emergency Preparedness may at any time waive the requirement to sample an imported product under subsection (1).

• Marginal note:Fees

  (4) The Minister of Public Safety and Emergency Preparedness may fix fees to be paid by the importer of the product but those fees must not exceed an amount determined by that Minister to be the costs to Her Majesty in respect of the sampling and testing.

Bulk Alcohol

Marginal note:Prohibition — ownership of bulk alcohol

69 No person shall own bulk alcohol unless it was produced or imported in accordance with this Act.

Marginal note:Prohibition — possession

• 70 (1) No person shall possess bulk alcohol.

• Marginal note:Exception

  (2) Subsection (1) does not apply

  • (a) to a spirits licensee or a licensed user who possesses bulk spirits that were produced or imported by a spirits licensee;

  • (b) to a wine licensee or a licensed user who possesses bulk wine that was produced or imported by a wine licensee;

  • (c) to a licensed user who possesses bulk alcohol that was imported by the licensed user;

  • (c.1) in the case of bulk spirits produced for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol, to a person who, having produced those spirits, possesses them during the period of analysis;

  • (d) to an alcohol registrant who possesses, for the purposes of storage or transportation, bulk alcohol that was produced by an alcohol licensee or imported by an alcohol licensee or licensed user;

  • (e) to a sufferance warehouse licensee who possesses in their sufferance warehouse bulk alcohol that was imported by a person permitted to do so under this Act;

  • (f) to a ferment-on-premises registrant who possesses bulk wine that was produced at the registrant’s ferment-on-premises facility by an individual for the individual’s personal use; or

  • (g) to an individual who possesses less than 500 L of bulk wine that was lawfully produced at a residence or a ferment-on-premises facility for an individual’s personal use.

Marginal note:Prohibition — supply of spirits

71 No person shall give possession of bulk spirits to a person other than a spirits licensee, a licensed user or an alcohol registrant.

Marginal note:Prohibition — supply of wine

• 72 (1) No person shall give possession of bulk wine to a person other than a wine licensee, a licensed user or an alcohol registrant.

• Marginal note:Exception

  (2) Subsection (1) does not apply to an individual who, in connection with their personal use of it, gives possession of bulk wine lawfully produced by an individual for their personal use.

Marginal note:Restriction — licensed user

73 A licensed user shall not use or dispose of bulk alcohol other than to

• (a) use it in an approved formulation;

• (b) use it in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister;

• (c) use it to produce vinegar;

• (d) use it in accordance with section 130, 131 or 131.1;

• (e) return it to

  • (i) in the case of alcohol returned in circumstances to which paragraph 105(1)(a) or 114(1)(a) applies, a licensee referred to in that paragraph, or

  • (ii) in any other case, the alcohol licensee who supplied it;

• (f) subject to section 76, export it;

• (g) use it for analysis in a manner approved by the Minister; or

• (h) destroy it in a manner approved by the Minister.

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.

Marginal note:Unauthorized export

76 No person shall export bulk alcohol other than

• (a) the alcohol licensee who is responsible for the alcohol;

• (b) the licensed user who imported the alcohol; or

• (c) a person required to do so under section 101.

Special Containers of Spirits

Marginal note:Marked container deemed packaged

77 If a special container of spirits is marked, the spirits are deemed to be packaged at the time the container is marked.

Marginal note:Marking

• 78 (1) No person shall mark a special container of spirits unless

  • (a) the person is a spirits licensee; or

  • (b) the container is one that has been placed in a sufferance warehouse in accordance with section 80 and the person marks the container in the circumstances described in that section.

• Marginal note:Container to be warehoused

  (2) If a spirits licensee marks a special container of spirits, the licensee shall immediately enter it into an excise warehouse.

Marginal note:Importation

79 No person, other than an excise warehouse licensee, shall import a marked special container of spirits.

Marginal note:Marking of imported container

80 If a special container of spirits that is imported by an excise warehouse licensee is not marked when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being marked.

Marginal note:Imported container to be warehoused

81 If a marked special container of spirits is released under the Customs Act, the excise warehouse licensee who imported it shall immediately enter it into their excise warehouse.

Special Containers of Wine

Marginal note:Marked container deemed packaged

82 If a special container of wine is marked, the wine is deemed to be packaged at the time the container is marked.

Marginal note:Marking

• 83 (1) No person shall mark a special container of wine unless

  • (a) the person is a wine licensee; or

  • (b) the container is one that has been placed in a sufferance warehouse in accordance with section 85 and the person marks the container in the circumstances described in that section.

• Marginal note:Container to be warehoused

  (2) If a wine licensee marks a special container of wine, the licensee shall immediately enter it into an excise warehouse.

Marginal note:Importation

84 No person, other than an excise warehouse licensee, shall import a marked special container of wine.

Marginal note:Marking of imported container

85 If a special container of wine that is imported by an excise warehouse licensee is not marked when it is reported under the Customs Act, it shall be placed in a sufferance warehouse for the purpose of being marked.

Marginal note:Imported container to be warehoused

86 If a marked special container of wine is released under the Customs Act, the excise warehouse licensee who imported it shall immediately enter it into their excise warehouse.

Packaged Alcohol

Marginal note:Information on container

87 Every alcohol licensee who packages alcohol shall cause all prescribed information to be displayed on the container containing the alcohol and on any packaging encasing the container

• (a) in the case of wine that is entered into an excise warehouse immediately after it is packaged, before the wine is removed from the warehouse;

• (a.1) in the case of wine on which duty is not imposed because of paragraph 135(2)(a), before the wine is

  • (i) removed from the licensee’s premises,

  • (ii) consumed, or

  • (iii) made available for sale on the premises; and

• (b) in any other case, immediately after the alcohol is packaged.

Marginal note:Prohibition — possession

• 88 (1) No person shall possess non-duty-paid packaged alcohol.

• Marginal note:Exception

  (2) Non-duty-paid packaged alcohol, other than alcohol in a marked special container,

  • (a) that is packaged by an alcohol licensee or imported by an excise warehouse licensee may be possessed by

    • (i) an excise warehouse licensee in their excise warehouse,

    • (ii) a licensed user in their specified premises,

    • (iii) a registered user for use in accordance with their registration,

    • (iv) a prescribed person who is transporting the alcohol under prescribed circumstances and conditions,

    • (v) a duty free shop licensee, in their duty free shop,

    • (vi) an accredited representative, for their personal or official use, or

    • (vii) a person as ships’ stores, if the acquisition and possession of the alcohol by that person are in accordance with the Ships’ Stores Regulations;

  • (b) that is imported may be possessed by a sufferance warehouse licensee, in their sufferance warehouse;

  • (c) that is imported by a licensed user may be possessed by

    • (i) the licensed user in their specified premises, or

    • (ii) a prescribed person who is transporting the alcohol under prescribed circumstances and conditions;

  • (d) that is imported by an accredited representative may be possessed by

    • (i) the accredited representative, for their personal or official use, or

    • (ii) a prescribed person who is transporting the alcohol under prescribed circumstances and conditions;

  • (e) that is imported for sale in a duty free shop, for sale to an accredited representative or for use as ships’ stores, may be possessed by

    • (i) a customs bonded warehouse licensee, in their customs bonded warehouse,

    • (ii) a duty free shop licensee, in their duty free shop,

    • (iii) an accredited representative, for their personal or official use,

    • (iv) a customs bonded carrier in accordance with the Customs Act, or

    • (v) a person as ships’ stores, if the acquisition and possession of the alcohol by that person are in accordance with the Ships’ Stores Regulations;

  • (f) that is imported for supply to an air carrier that is licensed under section 69 or 73 of the Canada Transportation Act to operate an international air service may be possessed by a customs bonded warehouse licensee, in their customs bonded warehouse;

  • (g) that is imported by an individual in accordance with the Customs Act and the Customs Tariff for their personal use may be possessed by an individual;

  • (h) that is wine that is produced and packaged by an individual for their personal use may be possessed by an individual;

  • (i) that is wine referred to in paragraph 135(2)(a) or (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.

• Marginal note:Exception — special containers

  (3) A non-duty-paid marked special container of alcohol may be possessed by

  • (a) an excise warehouse licensee in their excise warehouse;

  • (b) a prescribed person who is transporting the alcohol under prescribed circumstances and conditions;

  • (c) in the case of an imported special container of alcohol, a sufferance warehouse licensee in their sufferance warehouse; or

  • (d) in the case of a special container of spirits that is marked for delivery to and use by a registered user, a registered user for use in accordance with their registration.

Marginal note:Storage

89 A ferment-on-premises registrant shall not store packaged wine at their ferment-on-premises facility.

Marginal note:Restriction — licensed user

90 A licensed user shall not use or dispose of non-duty-paid packaged alcohol other than to

• (a) use it in an approved formulation;

• (b) use it in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister;

• (c) use it to produce vinegar;

• (d) return it under prescribed conditions to the excise warehouse licensee who supplied it;

• (e) export it, if the alcohol was imported by the licensed user;

• (f) use it for analysis in a manner approved by the Minister; or

• (g) destroy it in a manner approved by the Minister.

Marginal note:Restriction — registered user

91 A registered user shall not use or dispose of non-duty-paid packaged spirits other than to

• (a) use them in accordance with their registration;

• (b) use them for analysis in a manner approved by the Minister;

• (c) return them under prescribed conditions to the excise warehouse licensee who supplied them; or

• (d) destroy them in a manner approved by the Minister.

Marginal note:Unauthorized removal — spirits

• 92 (1) No person shall remove spirits from a marked special container of spirits other than

  • (a) a registered user, in the case of a container that is marked for delivery to and use by a registered user; and

  • (b) a purchaser of the spirits at a bottle-your-own premises, in the case of a container that is marked for delivery to and use at a bottle-your-own premises.

• Marginal note:Removal of spirits from returned container

  (2) If the operator of a bottle-your-own premises returns a marked special container of spirits to the excise warehouse licensee who supplied the container to the operator, the licensee may remove the spirits from the container for the purpose of destroying the spirits in a manner approved by the Minister.

Marginal note:Unauthorized removal — wine

• 93 (1) No person shall remove wine from a marked special container of wine other than a purchaser of the wine at a bottle-your-own premises.

• Marginal note:Removal of wine from returned container

  (2) If the operator of a bottle-your-own premises returns a marked special container of wine to the excise warehouse licensee who supplied the container to the operator, the licensee may remove the wine from the container for the purpose of destroying the wine in a manner approved by the Minister.

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.

Denatured Alcohol and Specially Denatured Alcohol

Marginal note:Prohibition — denaturing of spirits

94 No person, other than a spirits licensee, shall denature spirits.

Marginal note:Prohibition — sale as beverage

• 95 (1) No person shall sell or provide denatured alcohol or specially denatured alcohol for use in or as a beverage.

• Marginal note:Prohibition — use as beverage

  (2) No person shall use denatured alcohol or specially denatured alcohol in or as a beverage.

Marginal note:Prohibition — use of SDA

96 No person shall, except in accordance with a specially denatured alcohol registration issued to the person, use specially denatured alcohol.

Marginal note:Prohibition — possession of SDA

• 97 (1) No person shall possess specially denatured alcohol.

• Marginal note:Exception

  (2) Subsection (1) does not apply to

  • (a) a spirits licensee or an SDA registrant who possesses specially denatured alcohol produced by a spirits licensee;

  • (b) a spirits licensee, an SDA registrant or a sufferance warehouse licensee who possesses specially denatured alcohol imported by a spirits licensee;

  • (c) an SDA registrant who possesses specially denatured alcohol that they imported;

  • (d) a sufferance warehouse licensee who possesses specially denatured alcohol imported by an SDA registrant; or

  • (e) an alcohol registrant who possesses specially denatured alcohol only for the purposes of its storage and transportation, if the alcohol was produced by a spirits licensee or imported by a spirits licensee or an SDA registrant.

Marginal note:Prohibition — supply of SDA

98 No person shall give possession of specially denatured alcohol to a person who is not a spirits licensee, an SDA registrant or an alcohol registrant.

Marginal note:Prohibition — sale of SDA

• 99 (1) No person shall sell specially denatured alcohol.

• Marginal note:Exceptions

  (2) Subsection (1) does not apply where

  • (a) a spirits licensee sells specially denatured alcohol to another spirits licensee or to an SDA registrant; or

  • (b) an SDA registrant returns specially denatured alcohol in accordance with paragraph 103(a) or exports it in accordance with paragraph 103(b).

Marginal note:Prohibition — importing of SDA

100 No person shall import specially denatured alcohol other than a spirits licensee or an SDA registrant.

Marginal note:Spirits mistakenly imported as DA or SDA

• 101 (1) If a person, other than a spirits licensee or licensed user, who has imported a product that was reported under the Customs Act as being denatured alcohol or specially denatured alcohol learns that the product is spirits and not denatured alcohol or specially denatured alcohol, the person shall without delay

  • (a) export it for return to the person from whom it was acquired; or

  • (b) dispose of or destroy it in the manner specified by the Minister.

• Marginal note:Spirits mistakenly possessed as DA or SDA

  (2) If a person, other than a spirits licensee, licensed user or alcohol registrant, who possesses a product that the person believed was denatured alcohol or specially denatured alcohol learns that the product is spirits and not denatured alcohol or specially denatured alcohol, the person shall without delay

  • (a) return it to the spirits licensee who produced or supplied the product; or

  • (b) dispose of or destroy it in the manner specified by the Minister.

• Marginal note:If product used

  (3) If the person is unable to comply with subsection (1) or (2) in respect of an amount of the product because they had already used it in the production of another product before they learned that the product was not denatured alcohol or specially denatured alcohol, the person shall

  • (a) dispose of or destroy the other product in the manner specified by the Minister; and

  • (b) pay any penalty imposed under section 254 for which they are liable under section 244 in respect of the amount.

• Marginal note:Exception

  (4) Subsection (3) does not apply if

  • (a) the other product is not, in the opinion of the Minister, spirits;

  • (b) the Minister deems the other product to have been produced using denatured alcohol or specially denatured alcohol, as the case may be; and

  • (c) the person complies with any conditions imposed by the Minister.

Marginal note:Prohibition — exporting of SDA

102 No person shall export specially denatured alcohol other than the SDA registrant who imported it or a spirits licensee.

Marginal note:Restriction on disposal

103 An SDA registrant shall not dispose of specially denatured alcohol other than to

• (a) return it to the spirits licensee who supplied it;

• (b) export it, if it was imported by the SDA registrant; or

• (c) destroy it in a manner approved by the Minister.

Responsibility for Bulk Spirits

Marginal note:Responsibility

104 Subject to sections 105 to 107, 111 and 112, the person who is responsible for bulk spirits at any time is

• (a) the spirits licensee or licensed user who owns the spirits at that time;

• (b) if the spirits are not owned at that time by a spirits licensee or licensed user, the spirits licensee or licensed user who last owned them; or

• (c) if the spirits were never owned by a spirits licensee or licensed user, the spirits licensee who imported or produced them or the licensed user who imported them.

Marginal note:Return of spirits purchased from unlicensed person

• 105 (1) This section applies if a spirits licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk spirits from a person who is not a spirits licensee or licensed user (in this section referred to as the “unlicensed person”), and, within 30 days after the purchaser receives the spirits,

  • (a) the purchaser returns the spirits to the spirits licensee who was responsible for them immediately before they were purchased by the purchaser (in this section referred to as the “previously responsible licensee”) or to the spirits licensee who supplied them (in this section referred to as the “supplier”); and

  • (b) the ownership of the spirits reverts to the unlicensed person.

• Marginal note:Determination of person responsible for returned spirits

  (2) At the later of the time at which the previously responsible licensee or supplier receives the spirits and the time at which the ownership of the spirits reverts to the unlicensed person,

  • (a) the previously responsible licensee becomes again responsible for the spirits; and

  • (b) the purchaser of the spirits ceases to be responsible for them.

Marginal note:Exception — provincial ownership

106 If, at any time, the government of a province or a liquor authority that is a spirits licensee or a licensed user owns bulk spirits for a purpose not related to its licence, section 104 applies as though that ownership by the government or the liquor authority did not exist at that time.

Marginal note:Spirits imported by licensed user

107 A licensed user who imports bulk spirits is responsible for them.

Marginal note:Blended spirits — joint and several or solidary responsibility

• 108 (1) If bulk spirits are blended with other bulk spirits, or if bulk spirits are blended with bulk wine and the resulting product is spirits, every person who is a person responsible for any of the spirits or who is a licensed user responsible for any of the bulk wine is jointly and severally or solidarily responsible for the resulting blended spirits.

• Marginal note:Responsibility for wine ceases

  (2) The wine licensee or licensed user who was responsible for the bulk wine before it was blended with bulk spirits as described in subsection (1) ceases to be responsible for the wine as of the time of blending.

Marginal note:Person not responsible

109 A person who is responsible for bulk spirits ceases to be responsible for them if they are

• (a) taken for use and the duty on them is paid;

• (b) taken for use in an approved formulation;

• (c) taken for use for a purpose described in section 145 or subsection 146(1);

• (d) denatured into denatured alcohol or specially denatured alcohol;

• (e) exported in accordance with this Act; or

• (f) lost in prescribed circumstances, if the person fulfills any prescribed conditions.

Marginal note:Notification of change of ownership

110 If a spirits licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk spirits from a person who is not a spirits licensee or licensed user, the purchaser shall, except in respect of bulk spirits that are to be imported,

• (a) at the time of the purchase, obtain from the vendor the name and address of the spirits licensee who is responsible for the spirits immediately before they are sold to the purchaser; and

• (b) without delay, notify in writing that licensee of the purchase.

Marginal note:Removal of special container

111 If an unmarked special container of spirits is removed by a spirits licensee from their excise warehouse in accordance with section 156, the licensee is responsible for the spirits unless they are owned by another spirits licensee or a licensed user, in which case the other spirits licensee or the licensed user is responsible for them.

Marginal note:Removal of spirits

112 If spirits are removed by a spirits licensee from their excise warehouse in accordance with section 158, the licensee is responsible for the spirits unless they are owned by another spirits licensee or a licensed user, in which case the other spirits licensee or the licensed user is responsible for them.

Responsibility for Bulk Wine

Marginal note:Responsibility

113 Subject to sections 114 to 116, 120 and 121, the person who is responsible for bulk wine at any time is

• (a) the wine licensee or licensed user who owns the wine at that time;

• (b) if the wine is not owned at that time by a wine licensee or licensed user, the wine licensee or licensed user who last owned it; or

• (c) if the wine was never owned by a wine licensee or licensed user, the wine licensee who imported or produced it or the licensed user who imported it.

Marginal note:Return of wine purchased from unlicensed person

• 114 (1) This section applies if a wine licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk wine from a person who is not a wine licensee or licensed user (in this section referred to as the “unlicensed person”), and, within 30 days after the purchaser receives the wine,

  • (a) the purchaser returns the wine to the wine licensee who was responsible for it immediately before it was purchased by the purchaser (in this section referred to as the “previously responsible licensee”) or to the wine licensee who supplied it (in this section referred to as the “supplier”); and

  • (b) the ownership of the wine reverts to the unlicensed person.

• Marginal note:Determination of person responsible for returned wine

  (2) At the later of the time at which the previously responsible licensee or supplier receives the wine and the time at which the ownership of the wine reverts to the unlicensed person,

  • (a) the previously responsible licensee becomes again responsible for the wine; and

  • (b) the purchaser of the wine ceases to be responsible for it.

Marginal note:Exception — provincial ownership

115 If, at any time, the government of a province or a liquor authority that is a wine licensee or a licensed user owns bulk wine for a purpose not related to its licence, section 113 applies as though that ownership by the government or the liquor authority did not exist at that time.

Marginal note:Wine imported by licensed user

116 A licensed user who imports bulk wine is responsible for it.

Marginal note:Blended wine — joint and several or solidary responsibility

• 117 (1) If bulk wine is blended with other bulk wine, or if bulk wine is blended with bulk spirits and the resulting product is wine, every person who is a person responsible for any of the wine or who is a licensed user responsible for any of the bulk spirits is jointly and severally or solidarily responsible for the resulting blended wine.

• Marginal note:Responsibility for spirits ceases

  (2) The spirits licensee or licensed user who was responsible for the bulk spirits before they were blended with bulk wine as described in subsection (1) ceases to be responsible for the spirits as of the time of blending.

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.

Marginal note:Person not responsible

118 A person who is responsible for bulk wine ceases to be responsible for it if it is

• (a) taken for use and the duty on it is paid;

• (b) taken for use in an approved formulation;

• (c) taken for use for a purpose described in section 145 or subsection 146(1);

• (d) exported in accordance with this Act; or

• (e) lost, if the loss is recorded in a manner authorized by the Minister.

Marginal note:Notification of change of ownership

119 If a wine licensee or licensed user (in this section referred to as the “purchaser”) purchases bulk wine from a person who is not a wine licensee or licensed user, the purchaser shall, except in respect of bulk wine that is to be imported,

• (a) at the time of the purchase, obtain from the vendor the name and address of the wine licensee who is responsible for the wine immediately before it is sold to the purchaser; and

• (b) without delay, notify in writing that licensee of the purchase.

Marginal note:Removal of special container

120 If an unmarked special container of wine is removed by a wine licensee from their excise warehouse in accordance with section 156, the licensee is responsible for the wine unless the wine is owned by another wine licensee or a licensed user, in which case the other wine licensee or the licensed user is responsible for it.

Marginal note:Removal of wine

121 If wine is removed by a wine licensee from their excise warehouse in accordance with section 157, the licensee is responsible for the wine unless it is owned by another wine licensee or a licensed user, in which case the other wine licensee or the licensed user is responsible for it.

Imposition and Payment of Duty on Alcohol

Marginal note:Imposition — domestic spirits

• 122 (1) Duty is imposed on spirits produced in Canada at the rate set out in section 1 of Schedule 4.

• Marginal note:Time of imposition

  (2) The duty is imposed at the time the spirits are produced.

Marginal note:Imposition — low alcoholic strength spirits

123 If spirits do not contain more than 7% of absolute ethyl alcohol by volume at the time that they are packaged,

• (a) the duty imposed on the spirits under section 122 or levied under section 21.1 of the Customs Tariff is relieved; and

• (b) duty is imposed on the spirits at the rate set out in section 2 of Schedule 4.

Marginal note:Duty payable when packaged

• 124 (1) Subject to sections 126 and 127, the duty imposed on spirits is payable at the time the spirits are packaged unless, immediately after packaging, they are entered into an excise warehouse.

• Marginal note:Payable by responsible person

  (2) Duty is payable by the person who is responsible for the spirits immediately before they are packaged.

• Marginal note:Spirits licensee ceases to be liable for duty

  (3) If an excise warehouse licensee becomes liable under section 140 for duty on the spirits, the person required under subsection (2) to pay the duty ceases to be liable to pay it.

Marginal note:Duty payable when removed from warehouse

125 If packaged spirits are removed from an excise warehouse for entry into the duty-paid market, duty is payable on the spirits at the time of their removal and is payable by the excise warehouse licensee of the warehouse.

Marginal note:Duty payable on bulk spirits taken for use

126 Subject to sections 144 to 146, if bulk spirits are taken for use, duty is payable at the time the spirits are taken for use by the person who is responsible for the spirits at that time.

Marginal note:Duty payable on unaccounted bulk spirits

• 127 (1) Duty is payable by the person who is responsible for bulk spirits on any portion of the spirits that cannot be accounted for by the person as being in the possession of a spirits licensee, a licensed user or an alcohol registrant.

• Marginal note:When duty payable

  (2) The duty is payable at the time the spirits cannot be accounted for.

• Marginal note:Exception

  (3) Subsection (1) does not apply in circumstances where the person is convicted of an offence under section 218 or is liable to pay a penalty under section 241.

Marginal note:Duty payable on packaged spirits taken for use

128 Subject to sections 144 to 146, if non-duty-paid packaged spirits that are in the possession of an excise warehouse licensee or a licensed user are taken for use, duty is payable at the time the spirits are taken for use and is payable by the licensee or user.

Marginal note:Duty payable on unaccounted packaged spirits

• 129 (1) Duty is payable on non-duty-paid packaged spirits that have been received by an excise warehouse licensee or a licensed user but cannot be accounted for by the licensee or user

  • (a) as being in the excise warehouse of the licensee or the specified premises of the user;

  • (b) as having been removed, used or destroyed in accordance with this Act; or

  • (c) as having been lost in prescribed circumstances, if the licensee or user fulfills any prescribed conditions.

• Marginal note:When duty payable

  (2) Duty is payable by the licensee or user at the time the spirits cannot be accounted for.

Marginal note:Fortifying wine

• 130 (1) A licensed user who is also a wine licensee may use bulk spirits to fortify wine to an alcoholic strength not in excess of 22.9% absolute ethyl alcohol by volume.

• Marginal note:Duty relieved on spirits

  (2) The duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were used to fortify the wine is relieved.

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.

Marginal note:Duty relieved — DA and SDA

132 If a spirits licensee denatures bulk spirits into denatured alcohol or specially denatured alcohol, the duty imposed on the spirits under section 122 or levied under section 21.1 of the Customs Tariff is relieved.

Marginal note:Imposition of special duty

• 133 (1) In addition to the duty levied under section 21.1 or 21.2 of the Customs Tariff, a special duty is imposed on imported spirits delivered to or imported by a licensed user at the rate set out in Schedule 5.

• Marginal note:Bulk spirits

  (2) If a spirits licensee imports bulk spirits that are delivered to a licensed user, the special duty is payable at the time the spirits are delivered to the licensed user and is payable

  • (a) by the spirits licensee who is responsible for the spirits at that time;

  • (b) if the licensed user is responsible for the spirits at that time and there was a spirits licensee who was responsible immediately before that time, by that spirits licensee; or

  • (c) if the licensed user is responsible for the spirits at that time and there was not a spirits licensee who was responsible immediately before that time, by the spirits licensee who delivered the spirits.

• Marginal note:Packaged spirits

  (3) If imported packaged spirits or imported spirits that have been packaged in Canada are removed from an excise warehouse for delivery to a licensed user, the special duty is payable by the excise warehouse licensee at the time the spirits are removed from the excise warehouse.

• Marginal note:Spirits imported by licensed user

  (4) If bulk or packaged spirits are imported by a licensed user, the special duty

  • (a) is payable by the licensed user at the time the spirits are imported; and

  • (b) shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the duty were a duty levied on the spirits under section 20 of the Customs Tariff, and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

Marginal note:Imposition — bulk wine taken for use

• 134 (1) Duty is imposed on bulk wine that is taken for use at the rates set out in Schedule 6.

• Marginal note:Payable by responsible person

  (2) Subject to sections 144 to 146, the duty is payable at the time the wine is taken for use and is payable by the person who is responsible for the wine at that time.

• Marginal note:Exceptions

  (3) Subsection (1) does not apply to

  • (a) wine that is produced in Canada and composed wholly of agricultural or plant product grown in Canada; and

  • (b) wine that is produced by an individual for their personal use and that is consumed in the course of that use.

Marginal note:Imposition — wine packaged in Canada

• 135 (1) Duty is imposed on wine that is packaged in Canada at the rates set out in Schedule 6.

• Marginal note:Wine produced for personal use and by small producers

  (2) Subsection (1) does not apply to wine that is

  • (a) produced in Canada and composed wholly of agricultural or plant product grown in Canada;

  • (a.1) produced and packaged by an individual for their personal use; or

  • (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.

• Marginal note:Time of imposition

  (3) The duty is imposed at the time the wine is packaged. It is also payable at that time unless the wine is entered into an excise warehouse immediately after packaging.

• Marginal note:Payable by responsible person

  (4) The duty is payable by the person who is responsible for the wine immediately before it is packaged.

• Marginal note:Wine licensee ceases to be liable for duty

  (5) If an excise warehouse licensee becomes liable under section 140 for duty on the wine, the person required under subsection (4) to pay the duty ceases to be liable to pay it.

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.

Marginal note:Duty payable on packaged wine taken for use

137 Subject to sections 144 to 146, if non-duty-paid packaged wine that is in the possession of an excise warehouse licensee or a licensed user is taken for use, duty is payable on the wine at the time it is taken for use and is payable by the licensee or user.

Marginal note:Duty payable on unaccounted packaged wine

• 138 (1) Duty is payable on non-duty-paid packaged wine that has been received by an excise warehouse licensee or a licensed user but that cannot be accounted for by the licensee or user

  • (a) as being in the excise warehouse of the licensee or the specified premises of the user;

  • (a.1) in the case of packaged wine described by subsection 136(2), as being in a store described by that subsection;

  • (b) as having been removed, used or destroyed in accordance with this Act; or

  • (c) as having been lost in prescribed circumstances, if the licensee or user fulfills any prescribed conditions.

• Marginal note:When duty payable

  (2) Duty is payable by the licensee or user at the time the wine cannot be accounted for.

Marginal note:Duty on wine in marked special container relieved

• 139 (1) Duty imposed under subsection 135(1) is relieved on wine that is contained in a marked special container of wine from which the marking has been removed in accordance with section 156.

• Marginal note:Duty on returned wine relieved

  (2) Duty imposed under subsection 135(1) or levied under subsection 21.2(2) of the Customs Tariff is relieved on wine that is returned to the bulk wine inventory of a wine licensee in accordance with section 157.

Liability of Excise Warehouse Licensees and Licensed Users

Marginal note:Non-duty-paid packaged alcohol

140 If non-duty-paid packaged alcohol is entered into an excise warehouse immediately after being packaged, the excise warehouse licensee is liable for the duty on the alcohol at the time it is entered into the warehouse.

Marginal note:Imported packaged alcohol

141 If, in accordance with subsection 21.2(3) of the Customs Tariff, imported packaged alcohol is, without the payment of duty, released under the Customs Act to the excise warehouse licensee or licensed user who imported it, the excise warehouse licensee or licensed user is liable for the duty on the alcohol.

Marginal note:Transfer between warehouse licensees

• 142 (1) If non-duty-paid packaged alcohol is removed from the excise warehouse of an excise warehouse licensee (in this subsection referred to as the “transferor”) to the excise warehouse of another excise warehouse licensee, at the time the alcohol is entered into the warehouse of the other licensee,

  • (a) the other licensee becomes liable for the duty on the alcohol; and

  • (b) the transferor ceases to be liable for the duty.

• Marginal note:Transfer to licensed user

  (2) If non-duty-paid packaged alcohol is removed from an excise warehouse to the specified premises of a licensed user, at the time the alcohol is entered into those premises,

  • (a) the licensed user becomes liable for the duty on the alcohol; and

  • (b) the excise warehouse licensee ceases to be liable for the duty.

• Marginal note:Transfer from licensed user

  (3) If non-duty-paid packaged alcohol is removed from the specified premises of a licensed user to an excise warehouse, at the time the alcohol is entered into the warehouse,

  • (a) the excise warehouse licensee becomes liable for the duty on the alcohol; and

  • (b) the licensed user ceases to be liable for the duty.

Non-dutiable Uses and Removals of Alcohol

Marginal note:Approved formulations

143 The Minister may impose any conditions or restrictions that the Minister considers necessary in respect of the making, importation, packaging, use or sale of, or other dealing with, an approved formulation.

Marginal note:Non-dutiable uses — approved formulations

144 Duty is relieved on bulk alcohol and non-duty-paid packaged alcohol used by a licensed user in an approved formulation.

Marginal note:Duty not payable — bulk alcohol

• 145 (1) Duty is not payable on bulk alcohol

  • (a) taken for analysis by an alcohol licensee or a licensed user in a manner approved by the Minister;

  • (b) destroyed by an alcohol licensee or a licensed user in a manner approved by the Minister; or

  • (c) used by a licensed user in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister.

• Marginal note:Duty not payable — packaged alcohol

  (2) Duty is not payable on non-duty-paid packaged alcohol

  • (a) taken for analysis by an excise warehouse licensee or a licensed user in a manner approved by the Minister;

  • (b) destroyed by an excise warehouse licensee or a licensed user in a manner approved by the Minister;

  • (c) used by a licensed user in a process in which the absolute ethyl alcohol is destroyed to the extent approved by the Minister; or

  • (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.

• Marginal note:No duty payable — alcohol taken for analysis or destroyed

  (3) Duty is not payable on bulk alcohol or non-duty-paid packaged alcohol that is taken for analysis or destroyed by the Minister.

Marginal note:Duty not payable — vinegar

• 146 (1) Duty is not payable on alcohol that is used by a licensed user to produce vinegar if not less than 0.5 kg of acetic acid is produced from every litre of absolute ethyl alcohol used.

• Marginal note:Deemed taken for use if deficiency

  (2) If a licensed user uses alcohol to produce vinegar and less than 0.5 kg of acetic acid is produced from every litre of absolute ethyl alcohol used, the licensed user is deemed to have taken for use, at the time the vinegar is produced, the number of litres of that alcohol that is equivalent to the number determined by the formula

  A - (2 × B)

  where

  A

  is the number of litres of absolute ethyl alcohol used, and

  B

  is the number of kilograms of acetic acid produced.

Marginal note:Duty not payable — packaged alcohol

• 147 (1) Duty is not payable on non-duty-paid packaged alcohol, other than alcohol contained in a marked special container, that is removed from an excise warehouse

  • (a) for delivery

    • (i) to an accredited representative for their personal or official use,

    • (ii) to a duty free shop for sale in accordance with the Customs Act,

    • (iii) to a registered user for use in accordance with their registration, or

    • (iv) as ships’ stores in accordance with the Ships’ Stores Regulations; or

  • (b) for export by the excise warehouse licensee in accordance with this Act.

• Marginal note:Duty not payable — special container of spirits

  (2) Duty is not payable on spirits contained in a marked special container that is removed from an excise warehouse

  • (a) for delivery to a registered user for use in accordance with their registration, if the container is marked for delivery to and use by a registered user; or

  • (b) for export by the excise warehouse licensee in accordance with this Act, if the container was imported.

• Marginal note:Duty not payable — special container of wine

  (3) Duty is not payable on wine imported in a marked special container that is removed from an excise warehouse for export by the excise warehouse licensee in accordance with this Act.

• 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.

Determining Volume of Alcohol

Marginal note:Volume of alcohol

• 148 (1) The volume and absolute ethyl alcohol content of alcohol shall be determined in a manner specified by the Minister using approved instruments.

• Marginal note:Approval of instrument

  (2) The Minister may examine and approve an instrument or a class, type or design of instruments for the measurement of the volume and absolute ethyl alcohol content of alcohol.

• Marginal note:Re-examination

  (3) The Minister may direct in writing that any instrument previously examined and approved, or of a class, type or design previously examined and approved, by the Minister be submitted to the Minister for re-examination and, if the Minister so directs, the person who has the custody and control of the instrument shall immediately submit it to the Minister for re-examination.

• Marginal note:Revocation of approval

  (4) After re-examining an instrument, the Minister may, in writing, revoke the Minister’s approval of that instrument or instruments of the same class, type or design as that instrument.

• Marginal note:Indicating instrument is approved

  (5) Every approved instrument the approval of which has not been revoked shall indicate the approval in a manner acceptable to the Minister.

Excise Warehouses

Marginal note:Restriction — entering into warehouse

149 No person shall enter non-duty-paid packaged alcohol into an excise warehouse except in accordance with this Act.

Marginal note:Import by warehouse licensee

• 150 (1) If imported packaged alcohol is, without the payment of duty, released under the Customs Act to the excise warehouse licensee who imported it, the licensee shall immediately enter it into the excise warehouse of the licensee.

• Marginal note:Import by licensed user

  (2) If imported packaged alcohol is, without the payment of duty, released under the Customs Act to the licensed user who imported it, the licensed user shall immediately enter it into the specified premises of the licensed user.

Marginal note:Restriction on removal

• 151 (1) No person shall remove non-duty-paid packaged alcohol from an excise warehouse.

• Marginal note:Exception

  (2) Subject to the regulations, a person may remove from an excise warehouse

  • (a) non-duty-paid packaged alcohol, other than alcohol in a marked special container, for

    • (i) entry into the duty-paid market,

    • (ii) delivery to another excise warehouse,

    • (iii) delivery to an accredited representative for their personal or official use,

    • (iv) delivery as ships’ stores, in accordance with the Ships’ Stores Regulations,

    • (v) delivery to a duty free shop for sale in accordance with the Customs Act to persons who are about to leave Canada,

    • (vi) delivery to a licensed user,

    • (vii) delivery to a registered user for use in accordance with their registration,

    • (viii) in the case of packaged wine described in subsection 136(2), delivery to a store described in that subsection, or

    • (ix) export;

  • (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;

  • (b) a non-duty-paid marked special container of wine for

    • (i) delivery to another excise warehouse, or

    • (ii) entry into the duty-paid market for delivery to a bottle-your-own premises;

  • (c) a non-duty-paid marked special container of spirits for

    • (i) delivery to another excise warehouse,

    • (ii) if the container is marked for delivery to and use by a registered user, delivery to a registered user for use in accordance with their registration, or

    • (iii) if the container is marked for delivery to and use at a bottle-your-own premises, entry into the duty-paid market for delivery to a bottle-your-own premises; or

  • (d) an imported non-duty-paid marked special container of alcohol, for export.

Marginal note:Return of duty-paid alcohol

152 If packaged alcohol that has been removed from an excise warehouse for entry into the duty-paid market is returned to that warehouse under prescribed conditions, the alcohol may be entered into the warehouse as non-duty-paid packaged alcohol.

Marginal note:Return of non-duty-paid alcohol

153 If non-duty-paid packaged alcohol that has been removed from an excise warehouse in accordance with section 147 is returned to an excise warehouse under prescribed conditions, the alcohol may be entered into the warehouse as non-duty-paid packaged alcohol.

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.

Marginal note:Supplying packaged alcohol to retail store

• 154 (1) Subject to subsections (2) and 155(1), an excise warehouse licensee shall not, during a calendar year, supply from a particular premises specified in the excise warehouse licence of the licensee to a retail store more than 30% of the total volume of packaged alcohol supplied from those premises to all retail stores during the year.

• Marginal note:Exception for certain retail stores

  (2) An excise warehouse licensee who is an alcohol licensee may supply from the particular premises to a retail store of the licensee more than 30% of that total volume if

  • (a) the store is located at a place at which the licensee produces or packages alcohol; and

  • (b) not less than 90% of the volume of packaged alcohol supplied to the store from the particular premises in the year consists of alcohol that was packaged by, or, if the licensee was responsible for the alcohol immediately before it was packaged, on behalf of, the licensee.

Marginal note:Exception for remote stores

• 155 (1) On application in the prescribed form and manner by an excise warehouse licensee who is a liquor authority or a non-retailer of alcohol, the Minister may authorize the licensee to supply during a calendar year from a particular premises specified in their excise warehouse licence to a retail store more than 30% of the total volume of packaged alcohol to be supplied from the premises to all retail stores during the year if the Minister is satisfied that the delivery of packaged alcohol by railway, truck or water vessel to the store is not possible for five consecutive months in every year.

• Marginal note:Revocation

  (2) The Minister may revoke an authorization under subsection (1) if

  • (a) the licensee makes a written request to the Minister to revoke the authorization;

  • (b) the licensee fails to comply with any condition imposed in respect of the authorization or any provision of this Act;

  • (c) the Minister is no longer satisfied that the requirements of subsection (1) are met; or

  • (d) the Minister considers that the authorization is no longer required.

• Marginal note:Notice of revocation

  (3) If the Minister revokes an authorization of a licensee, the Minister shall notify the licensee in writing of the revocation and its effective date.

Marginal note:Removal of special container

156 An alcohol licensee who has marked a special container of alcohol may remove the container from their excise warehouse to return it to the bulk alcohol inventory of the licensee if the marking on the container is removed by the licensee in the manner approved by the Minister.

Marginal note:Removal of packaged wine from excise warehouse

157 A wine licensee may remove non-duty-paid packaged wine from their excise warehouse to return it to the bulk wine inventory of the licensee.

Marginal note:Removal of packaged spirits from excise warehouse

158 A spirits licensee may remove non-duty-paid packaged spirits from their excise warehouse to return them to the bulk spirits inventory of the licensee.

PART 5General Provisions Concerning Duty and Other Amounts Payable

Fiscal Month

Marginal note:Determination of fiscal months

• 159 (1) The fiscal months of a person shall be determined in accordance with the following rules:

  • (a) if fiscal months of the person have been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, each of those fiscal months is a fiscal month of the person for the purposes of this Act;

  • (b) if fiscal months of the person have not been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, the person may select for the purposes of this Act fiscal months that meet the requirements set out in that subsection 243(2); and

  • (c) if neither paragraph (a) nor paragraph (b) applies, each calendar month is a fiscal month of the person for the purposes of this Act.

• Marginal note:Notification of Minister

  (2) Every person who is required to file a return shall notify the Minister of their fiscal months in the prescribed form and manner.

Returns and Payment of Duty and Other Amounts

Marginal note:Filing by licensee

160 Every person who is licensed under this Act shall, not later than the last day of the first month after each fiscal month of the person,

• (a) file a return with the Minister, in the prescribed form and manner, for that fiscal month;

• (b) calculate, in the return, the total amount of the duty payable, if any, by the person for that fiscal month; and

• (c) pay that amount to the Receiver General.

Marginal note:Filing by other persons

161 Every person who is not licensed under this Act and who is required to pay duty under this Act shall, not later than the last day of the first month after the fiscal month of the person in which the duty became payable,

• (a) file a return with the Minister, in the prescribed form and manner, for that fiscal month;

• (b) calculate, in the return, the total amount of the duty payable by the person for that fiscal month; and

• (c) pay that amount to the Receiver General.

Marginal note:Set-off of refunds

162 If, at any time, a person files a return in which the person reports an amount that is required to be paid under this Act by them and the person claims a refund payable to them at that time, in the return or in another return, or in a separate application filed under this Act with the return, the person is deemed to have paid at that time, and the Minister is deemed to have refunded at that time, an amount equal to the lesser of the amount required to be paid and the amount of the refund.

Marginal note:Large payments

163 Every person who is required under this Act to pay any duty, interest or other amount to the Receiver General shall, if the amount is $50,000 or more, make the payment to the account of the Receiver General at

• (a) a bank;

• (b) an authorized foreign bank, as defined in section 2 of the Bank Act, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act;

• (c) a credit union;

• (d) a corporation authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

• (e) a corporation authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in mortgages on real property or hypothecs on immovables.

Marginal note:Authority for separate returns

• 164 (1) A licensee who engages in one or more activities in separate branches or divisions may file an application, in the prescribed form and manner, with the Minister for authority to file separate returns and applications for refunds under this Act in respect of a branch or division specified in the application.

• Marginal note:Authorization by Minister

  (2) On receipt of the application, the Minister may, in writing, authorize the licensee to file separate returns and applications for refunds in relation to the specified branch or division, subject to any conditions that the Minister may at any time impose, if the Minister is satisfied that

  • (a) the branch or division can be separately identified by reference to the location of the branch or division or the nature of the activities engaged in by it; and

  • (b) separate records, books of account and accounting systems are maintained in respect of the branch or division.

• Marginal note:Revocation of authorization

  (3) The Minister may revoke an authorization if

  • (a) the licensee, in writing, requests the Minister to revoke the authorization;

  • (b) the licensee fails to comply with any condition imposed in respect of the authorization or any provision of this Act;

  • (c) the Minister is no longer satisfied that the requirements of subsection (2) in respect of the licensee are met; or

  • (d) the Minister considers that the authorization is no longer required.

• Marginal note:Notice of revocation

  (4) If the Minister revokes an authorization, the Minister shall send a notice in writing of the revocation to the licensee and shall specify in the notice the effective date of the revocation.

Marginal note:Amounts owing of $2 or less in total

• 165 (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty under this Act does not exceed two dollars, those amounts are deemed to be nil.

• Marginal note:Amounts payable of $2 or less in total

  (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts are deemed to be nil.

Meaning of electronic filing

• 166 (1) For the purposes of this section, electronic filing means using electronic media in a manner specified in writing by the Minister.

• Marginal note:Filing of return by electronic filing

  (2) A person who is required to file with the Minister a return under this Act, and who meets the criteria specified in writing by the Minister for the purposes of this section, may file the return by way of electronic filing.

• Marginal note:Deemed filing

  (3) For the purposes of this Act, if a person files a return by way of electronic filing, it is deemed to be a return in the prescribed form filed with the Minister on the day the Minister acknowledges acceptance of it.

Marginal note:Execution of returns, etc.

167 A return, other than a return filed by way of electronic filing under section 166, a certificate or other document made by a person, other than an individual, under this Act shall be signed on behalf of the person by an individual duly authorized to do so by the person or the governing body of the person. If the person is a corporation or an association or organization that has duly elected or appointed officers, the president, vice-president, secretary and treasurer, or other equivalent officers, of the corporation, association or organization, are deemed to be so duly authorized.

Marginal note:Extension of time

• 168 (1) At any time, the Minister may, in writing, extend the time limited under this Act for a person to file a return or provide information.

• Marginal note:Effect of extension

  (2) If the Minister extends the time under subsection (1),

  • (a) the return shall be filed, or the information shall be provided, within the time so extended;

  • (b) any duty payable that the person is required to report in the return shall be paid within the time so extended;

  • (c) any interest payable under section 170 on any amount payable in respect of the return shall be calculated as though the amount were required to be paid on the day on which the extended time expires; and

  • (d) any penalty payable under section 251.1 in respect of the return shall be calculated as though the return were required to be filed on the day on which the extended time expires.

Marginal note:Demand for return

169 The Minister may, on demand served personally or by registered or certified mail, require any person to file, within any reasonable time that may be stipulated in the demand, a return under this Act for any period that may be designated in the demand.

Interest

Marginal note:Compound interest on amounts not paid when required

• 170 (1) If a person fails to pay an amount to the Receiver General as and when required under this Act, the person shall pay to the Receiver General interest on the amount. The interest shall be compounded daily at the prescribed rate and computed for the period beginning on the first day after the day on which the amount was required to be paid and ending on the day the amount is paid.

• Marginal note:Payment of interest that is compounded

  (2) For the purposes of subsection (1), interest that is compounded on a particular day on an unpaid amount of a person is deemed to be required to be paid by the person to the Receiver General at the end of the particular day, and, if the person has not paid the interest so computed by the end of the day after the particular day, the interest shall be added to the unpaid amount at the end of the particular day.

• Marginal note:Period where interest not payable

  (3) Despite any other provision of this Act, if the Minister notifies a person that the person is required to pay a specified amount under this Act and the person pays the specified amount in full before the end of the period that the Minister specifies with the notice, interest is not payable on the specified amount for the period.

• Marginal note:Minimum interest and penalty

  (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty payable under section 251.1, owing at that time to Her Majesty under this Act for a fiscal month of the person and the total amount of interest and the penalty payable by the person under this Act for that month is not more than $25.00, the Minister may waive the total amount.

• (5) [Repealed, 2003, c. 15, s. 92]

Marginal note:Compound interest on amounts payable by Minister

171 Interest shall be compounded daily at the prescribed rate on any amount payable by the Minister to a person. The interest shall be computed for the period beginning on the first day after the day on which the amount is required to be paid and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty, unless this Act provides otherwise.

Marginal note:Application of interest provisions if Act amended

172 For greater certainty, if a provision of an Act amends this Act and provides that the amendment comes into force on, or applies as of, a particular day that is before the day on which the provision is assented to, the provisions of this Act that relate to the calculation and payment of interest apply in respect of the amendment as though the provision had been assented to on the particular day.

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.

Refunds

Marginal note:Statutory recovery rights

174 Except as specifically provided under this Act, the Customs Act, the Customs Tariff or the Financial Administration Act, no person has a right to recover any money paid to Her Majesty as or on account of, or that has been taken into account by Her Majesty as, duty, interest or other amount payable under this Act.

Marginal note:Applications for refunds

• 175 (1) An application for a refund under this Act shall be filed with the Minister in the prescribed form and manner.

• Marginal note:Single application

  (2) Only one application may be made under this Act for a refund with respect to any matter.

Marginal note:Payment if error

• 176 (1) If a person has paid an amount as or on account of, or that was taken into account as, duty, interest or other amount payable under this Act in circumstances in which the amount was not payable by the person, whether the amount was paid by mistake or otherwise, the Minister shall pay a refund of that amount to the person.

• Marginal note:Restriction

  (2) A refund in respect of an amount shall not be paid to a person to the extent that

  • (a) the amount was taken into account as duty for a fiscal month of the person and the Minister has assessed the person for the month under section 188; or

  • (b) the amount paid was duty, interest or other amount assessed under that section.

• Marginal note:Application for refund

  (3) A refund of an amount shall not be paid to a person unless the person files an application for the refund within two years after the person paid the amount.

Marginal note:Restriction on refunds, etc.

177 A refund or a payment of an amount under this Act shall not be paid to a person to the extent that it can reasonably be regarded that

• (a) the amount has previously been refunded, remitted or paid to that person, or applied against an amount owed by the person to Her Majesty, under this or any other Act of Parliament; or

• (b) the person has applied for a refund, payment or remission of the amount under any other Act of Parliament.

Marginal note:Restriction re trustees

178 If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a refund or any other payment under this Act that the bankrupt was entitled to claim before the appointment shall not be paid after the appointment unless all returns required under this Act to be filed for fiscal months of the bankrupt ending before the appointment have been filed and all amounts required under this Act to be paid by the bankrupt in respect of those fiscal months have been paid.

Marginal note:Overpayment of refunds, etc.

• 179 (1) If an amount is paid to, or applied to a liability of, a person as a refund or other payment under this Act and the person is not entitled to the amount or the amount paid or applied exceeds the refund or other payment to which the person is entitled, the person shall pay to the Receiver General an amount equal to the refund, payment or excess on the day the amount is paid to, or applied to a liability of, the person.

• Marginal note:Effect of reduction of refund, etc.

  (2) For the purposes of subsection (1), if a refund or other payment has been paid to a person in excess of the amount to which the person was entitled and the amount of the excess has, by reason of section 177, reduced the amount of any other refund or other payment to which the person would, but for the payment of the excess, be entitled, the person is deemed to have paid the amount of the reduction to the Receiver General.

Marginal note:No refund on exported tobacco products or alcohol

180 Subject to this Act, the duty paid on any tobacco product or alcohol entered into the duty-paid market shall not be refunded on the exportation of the tobacco product or alcohol.

Marginal note:Refund — imported black stock tobacco

• 180.1 (1) The Minister may refund to a person who has imported manufactured tobacco an amount determined in accordance with subsection (2) in respect of the tobacco if

  • (a) the person provides evidence satisfactory to the Minister that

    • (i) duty was imposed on the tobacco under section 42 at a rate set out in paragraph 1(b), 2(b) or 3(b) of Schedule 1 and paid, and

    • (ii) the tobacco was black stock

      • (A) that was delivered to a duty free shop or customs bonded warehouse or to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations, or

      • (B) that was exported for delivery to a foreign duty free shop or as foreign ships’ stores; and

  • (b) the person applies to the Minister for the refund within two years after the tobacco was imported.

• Marginal note:Determination of refund

  (2) The amount of the refund is equal to the amount by which

  • (a) the duty referred to in subparagraph (1)(a)(i)

  exceeds

  • (b) the duty that would have been imposed under section 42 on the tobacco if the applicable rate of duty had been the rate set out in paragraph 1(a), 2(a) or 3(a) of Schedule 1.

Marginal note:Re-worked or destroyed tobacco products

181 The Minister may refund to a tobacco licensee the duty paid on a tobacco product that is re-worked or destroyed by the tobacco licensee in accordance with section 41 if the licensee applies for the refund within two years after the tobacco product is re-worked or destroyed.

Marginal note:Destroyed imported manufactured tobacco

181.1 The Minister may refund to a duty free shop licensee the special duty under section 53 that was paid on imported manufactured tobacco that is destroyed by the licensee in accordance with the Customs Act if the licensee applies for the refund within two years after the tobacco is destroyed.

Marginal note:Refund of tax to importer if foreign taxes paid

• 182 (1) The Minister may refund, to a person who has imported into a foreign country a tobacco product (as defined in section 55) that was manufactured in Canada and exported by the tobacco licensee who manufactured it to the foreign country in accordance with paragraph 50(4)(a), an amount determined in accordance with subsection (2) in respect of the product if

  • (a) the person provides evidence satisfactory to the Minister that

    • (i) all taxes and duties imposed on the product under the laws of the foreign country having national application have been paid, and

    • (ii) the container containing the product has printed on it or affixed to it tobacco markings; and

  • (b) the person applies to the Minister for the refund within two years after the product was exported to the foreign country.

• Marginal note:Determination of refund

  (2) The amount of the refund under subsection (1) is equal to the lesser of

  • (a) the total of the taxes and duties referred to in subparagraph (1)(a)(i) that are paid in respect of the tobacco product, and

  • (b) the amount of the special duty imposed under paragraph 56(1)(a) in respect of the product that is paid by the tobacco licensee who manufactured it.

• Marginal note:Overpayment of refund or interest

  (3) If an amount has been paid to a person as a refund in respect of a tobacco product exported by the tobacco licensee who manufactured it or as interest in respect of such a refund and a special duty under paragraph 56(1)(b) was imposed in respect of the product, the amount is deemed to be duty payable under this Act by the licensee that became payable during the fiscal month of the licensee in which the amount was paid to the person.

• Marginal note:Refund of special duty to tobacco licensee if foreign taxes paid

  (4) If a refund under subsection (1) has been paid in respect of an exported tobacco product, the Minister may refund to the tobacco licensee who manufactured the product the amount, if any, by which the special duty imposed under paragraph 56(1)(a) in respect of the product and paid by the licensee exceeds the amount of the refund under subsection (1) if the licensee applies to the Minister for the refund under this subsection within two years after the product was exported.

Marginal note:Refund of special duty to duty free shop licensee

• 183 (1) If a duty free shop licensee who holds a licence issued under section 22 sells, in accordance with the Customs Act, imported manufactured tobacco to an individual who is not a resident of Canada and who is about to depart Canada, the Minister may refund to the licensee the special duty paid under section 53 in respect of that portion of the total quantity of the tobacco exported by the individual on their departure that does not exceed

  • (a) in the case of cigarettes, 200 cigarettes;

  • (b) in the case of tobacco sticks, 200 sticks; and

  • (c) in the case of manufactured tobacco other than cigarettes and tobacco sticks, 200 g.

• Marginal note:Application

  (2) No refund shall be paid to a duty free shop licensee in respect of a sale of imported manufactured tobacco unless the licensee applies to the Minister for the refund within two years after the sale.

Marginal note:Payment if bad debt

• 184 (1) If an ad valorem duty under section 43 has been paid by a tobacco licensee in respect of an arm’s length sale of cigars and the licensee has established that any debt owing to the licensee in respect of the sale has become in whole or in part a bad debt and has accordingly written off all or part of the debt as a bad debt in the licensee’s books of account, an amount equal to the proportion of the amount of that duty that the amount of the debt written off is of the price for which the cigars were sold may, subject to this Act, be paid to that licensee if the licensee applies for a refund of the amount within two years after the end of the licensee’s fiscal month during which the debt was so written off.

• Marginal note:Recovery of payment

  (2) If a tobacco licensee recovers all or any part of a debt in respect of which an amount is paid to the licensee under subsection (1) (in this subsection referred to as the “refunded amount”), that licensee shall immediately pay to the Receiver General an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid.

• Marginal note:Definition of arm’s length sale

  (3) In this section, arm’s length sale in respect of cigars means a sale of cigars by a tobacco licensee to a person with whom the licensee is dealing at arm’s length at the time of the sale.

Marginal note:Refund — imported bulk spirits

• 185 (1) If imported bulk spirits on which special duty has been paid are returned by a licensed user to the spirits licensee who supplied them to the licensed user, the Minister may refund the duty to the spirits licensee who paid the duty if the licensee applies for the refund within two years after the spirits are returned.

• Marginal note:Refund — packaged imported spirits

  (2) If imported spirits that are packaged and on which special duty has been paid are returned under prescribed conditions by a licensed user to the excise warehouse of the excise warehouse licensee who supplied them to the licensed user, the Minister may refund the duty to the excise warehouse licensee who paid the duty if the excise warehouse licensee applies for the refund within two years after the spirits are returned.

Marginal note:Refund — alcohol returned to warehouse

186 If packaged alcohol that has been removed from the excise warehouse of an excise warehouse licensee for entry into the duty-paid market is returned in accordance with section 152 to the warehouse, the Minister may refund to the licensee the duty paid on the alcohol if the licensee applies for the refund within two years after the alcohol is returned.

Marginal note:Refund — alcohol in special container

187 If a marked special container of alcohol is returned to the excise warehouse licensee who paid duty on the alcohol, the Minister may refund to the licensee the duty on the alcohol remaining in the container when it is returned if the licensee

• (a) destroys the alcohol in the manner approved by the Minister; and

• (b) applies for the refund within two years after the container is returned.

Assessments

Marginal note:Assessments

• 188 (1) The Minister may assess

  • (a) the duty payable by a person for a fiscal month of the person; and

  • (b) subject to section 190, interest and any other amount payable by a person under this Act.

• Marginal note:Reassessment

  (2) The Minister may reassess or make an additional assessment of any duty, interest or other amount that may be assessed under subsection (1).

• Marginal note:Allowance of unclaimed amounts

  (3) If, in assessing the duty, interest or other amount payable by a person for a fiscal month of the person or other amount payable by a person under this Act, the Minister determines that

  • (a) a refund would have been payable to the person if it had been claimed in an application under this Act filed on the particular day that is

    • (i) if the assessment is in respect of duty payable for the fiscal month, the day on which the return for the month was required to be filed, or

    • (ii) if the assessment is in respect of interest or other amount, the day on which the interest or other amount became payable by the person,

  • (b) the refund was not claimed by the person in an application filed before the day on which notice of the assessment is sent to the person, and

  • (c) the refund would be payable to the person if it were claimed in an application under this Act filed on the day on which notice of the assessment is sent to the person or would be disallowed if it were claimed in that application only because the period for claiming the refund expired before that day,

  the Minister shall apply all or part of the refund against that duty, interest or other amount that is payable as if the person had, on the particular day, paid the amount so applied on account of that duty, interest or other amount.

• Marginal note:Application of overpayment

  (4) If, in assessing the duty payable by a person for a fiscal month of the person, the Minister determines that there is an overpayment of duty payable for the month, unless the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall

  • (a) apply

    • (i) all or part of the overpayment

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on the particular day on which the person was required to file a return for the month, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the particular day, paid the amount so applied on account of the outstanding amount;

  • (b) apply

    • (i) all or part of the overpayment that was not applied under paragraph (a) together with interest on the overpayment at the prescribed rate, computed for the period beginning on the day that is 30 days after the latest of

      • (A) the particular day,

      • (B) the day on which the return for the fiscal month was filed, and

      • (C) in the case of an overpayment that is attributable to a payment made on a day subsequent to the days referred to in clauses (A) and (B), that subsequent day,

      and ending on the day on which the person defaulted in paying the outstanding amount referred to in subparagraph (ii)

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the later day, paid the amount and interest so applied on account of the outstanding amount; and

  • (c) refund to the person the part of the overpayment that was not applied under paragraphs (a) and (b) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the latest of

    • (i) the particular day,

    • (ii) the day on which the return for the fiscal month was filed, and

    • (iii) in the case of an overpayment that is attributable to a payment made on a day subsequent to the days referred to in subparagraphs (i) and (ii), that subsequent day,

    and ending on the day on which the refund is paid to the person.

• Marginal note:Application of payment

  (5) If, in assessing the duty payable by a person for a fiscal month of the person or an amount (in this subsection referred to as the “overdue amount”) payable by a person under this Act, all or part of a refund is not applied under subsection (3) against that duty payable or overdue amount, except if the assessment is made in the circumstances described in paragraph 191(4)(a) or (b) after the time otherwise limited for the assessment under paragraph 191(1)(a), the Minister shall

  • (a) apply

    • (i) all or part of the refund that was not applied under subsection (3)

    against

    • (ii) any other amount (in this paragraph referred to as the “outstanding amount”) that, on the particular day that is

      • (A) if the assessment is in respect of duty payable for the fiscal month, the day on which the return for the month was required to be filed, or

      • (B) if the assessment is in respect of an overdue amount, the day on which the overdue amount became payable by the person,

      the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the particular day, paid the refund so applied on account of the outstanding amount;

  • (b) apply

    • (i) all or part of the refund that was not applied under subsection (3) or paragraph (a) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the later of

      • (A) the particular day, and

      • (B) if the assessment is in respect of duty payable for the fiscal month, the day on which the return for the month was filed,

      and ending on the day on which the person defaulted in paying the outstanding amount referred to in subparagraph (ii)

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying under this Act and that remains unpaid on the day on which notice of the assessment is sent to the person,

    as if the person had, on the later day, paid the refund and interest so applied on account of the outstanding amount; and

  • (c) refund to the person the part of the refund that was not applied under any of subsection (3) and paragraphs (a) and (b) together with interest on the refund at the prescribed rate, computed for the period beginning on the day that is 30 days after the later of

    • (i) the particular day, and

    • (ii) if the assessment is in respect of duty payable for the fiscal month, the day on which the return for the month was filed,

    and ending on the day on which the refund is paid to the person.

• Marginal note:Limitation on refunding overpayments

  (6) An overpayment of duty payable for a fiscal month of a person and interest on the overpayment shall not be applied under paragraph (4)(b) or refunded under paragraph (4)(c) unless the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with

  • (a) the Minister under this Act, the Air Travellers Security Charge Act, the Excise Act, the Excise Tax Act and the Income Tax Act; or

  • (b) the Minister of Public Safety and Emergency Preparedness under the Customs Act.

• Marginal note:Limitation

  (7) A refund or a part of the refund that was not applied under subsection (3) and interest on the refund under paragraphs (5)(b) and (c)

  • (a) shall not be applied under paragraph (5)(b) against an amount (in this paragraph referred to as the “outstanding amount”) that is payable by a person unless the refund would have been payable to the person as a refund if the person had claimed it in an application under this Act filed on the day on which the person defaulted in paying the outstanding amount and, in the case of a payment under section 176, if that section allowed the person to claim the payment within four years after the person paid the amount in respect of which the payment would be so payable; and

  • (b) shall not be refunded under paragraph (5)(c) unless

    • (i) the refund would have been payable to the person as a refund if the person had claimed it in an application under this Act filed on the day on which notice of the assessment is sent to the person, and

    • (ii) the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with

      • (A) the Minister under this Act, the Air Travellers Security Charge Act, the Excise Act, the Excise Tax Act and the Income Tax Act, or

      • (B) the Minister of Public Safety and Emergency Preparedness under the Customs Act.

• Marginal note:Deemed claim or application

  (8) If, in assessing any duty, interest or other amount payable by a person under this Act, the Minister applies or refunds an amount under subsection (3), (4) or (5),

  • (a) the person is deemed to have claimed the amount in a return or application filed under this Act; and

  • (b) to the extent that an amount is applied against any duty, interest or other amount payable by the person, the Minister is deemed to have refunded or paid the amount to the person and the person is deemed to have paid the duty, interest or other amount payable against which it was applied.

• Marginal note:Refund on reassessment

  (9) If a person has paid an amount on account of any duty, interest or other amount assessed under this section in respect of a fiscal month and the amount paid exceeds the amount determined on reassessment to have been payable by the person, the Minister may refund to the person the amount of the excess, together with interest on the excess amount at the prescribed rate for the period that

  • (a) begins on the day that is 30 days after the latest of

    • (i) the day on which the person was required to file a return for the month,

    • (ii) the day on which the person filed a return for the month, and

    • (iii) the day on which the amount was paid by the person; and

  • (b) ends on the day on which the refund is paid.

• Marginal note:Refund of interest or penalty

  (9.1) Despite subsection (9), if a person has paid an amount of interest or penalty and the Minister waives or reduces that amount under section 173 or 255.1, as the case may be, the Minister shall refund the amount of the waiver or reduction to the person, together with interest on the amount of the waiver or reduction at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that section and ending on the day on which the refund is paid.

• Marginal note:Meaning of “overpayment of duty payable”

  (10) In this section, “overpayment of duty payable” of a person for a fiscal month of the person means the amount, if any, by which the total of all amounts paid by the person on account of duty payable for the month exceeds the total of

  • (a) the duty payable for the month, and

  • (b) all amounts paid to the person under this Act as a refund for the month.

Marginal note:Assessment of refund

• 189 (1) On receipt of an application made by a person for a refund under this Act, the Minister shall, without delay, consider the application and assess the amount of the refund, if any, payable to the person.

• Marginal note:Reassessment

  (2) The Minister may reassess or make an additional assessment of the amount of a refund despite any previous assessment of the amount of the refund.

• Marginal note:Payment

  (3) If on assessment under this section the Minister determines that a refund is payable to a person, the Minister shall pay the refund to the person.

• Marginal note:Restriction

  (4) A refund shall not be paid until the person has filed with the Minister or the Minister of Public Safety and Emergency Preparedness all returns and other records of which the Minister has knowledge and that are required to be filed under this Act, the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act.

• Marginal note:Interest

  (5) If a refund is paid to a person, the Minister shall pay interest at the prescribed rate to the person on the refund for the period beginning on the day that is 30 days after the day on which the application for the refund is filed with the Minister and ending on the day on which the refund is paid.

Marginal note:No assessment for penalty

190 No assessment shall be made for any penalty imposed under section 254.

Marginal note:Limitation period for assessments

• 191 (1) Subject to subsections (3) to (7), no assessment shall be made for any duty, interest or other amount payable under this Act

  • (a) in the case of an assessment of the duty payable for a fiscal month, more than four years after the later of the day on which the return for the month was required to be filed and the day on which the return was filed;

  • (b) in the case of an assessment for any other amount payable under this Act, more than four years after the amount became payable; or

  • (c) in the case of an assessment for an amount for which a trustee in bankruptcy became liable under section 212, after the earlier of

    • (i) the day that is 90 days after the return on which the assessment is based is filed with, or other evidence of the facts on which the assessment is based comes to the attention of, the Minister, and

    • (ii) the expiry of the period referred to in paragraph (a) or (b), whichever applies in the circumstances.

• Marginal note:Limitation re refund assessment

  (2) Subject to subsections (3) to (7), an assessment of the amount of a refund or any other payment that may be obtained under this Act may be made at any time but a reassessment or additional assessment of an amount paid or applied as a refund under this Act or of an amount paid as interest in respect of an amount paid or applied as a refund under this Act shall not be made more than four years after the application for the amount was filed in accordance with this Act.

• Marginal note:Exception

  (3) Subsections (1) and (2) do not apply to a reassessment of a person made

  • (a) to give effect to a decision on an objection or appeal; or

  • (b) with the consent in writing of the person to dispose of an appeal.

• Marginal note:No limitation on assessment if fraud, etc.

  (4) An assessment in respect of any matter may be made at any time if the person to be assessed has, in respect of that matter,

  • (a) made a misrepresentation that is attributable to their neglect, carelessness or wilful default;

  • (b) committed fraud

    • (i) in making or filing a return under this Act,

    • (ii) in making or filing an application for a refund under this Act, or

    • (iii) in supplying or failing to supply any information under this Act; or

  • (c) filed a waiver under subsection (8) that is in effect at that time.

• Marginal note:No limitation if payment for another fiscal month

  (5) If, in making an assessment, the Minister determines that a person has paid in respect of any matter an amount as or on account of duty payable for a fiscal month of the person that was payable for another fiscal month of the person, the Minister may at any time make an assessment for that other month in respect of that matter.

• Marginal note:Reduction of duty — fiscal month

  (6) If the result of a reassessment on an objection to, or a decision on an appeal from, an assessment is to reduce the amount of duty payable by a person and, by reason of the reduction, any refund or other payment claimed by the person for a fiscal month, or in an application for a refund or other payment, should be decreased, the Minister may at any time assess or reassess that fiscal month or that application only for the purpose of taking the reduction of duty into account in respect of the refund or other payment.

• Marginal note:Alternative argument in support of assessment

  (7) The Minister may advance an alternative argument in support of an assessment of a person at any time after the period otherwise limited by subsection (1) or (2) for making the assessment unless on an appeal under this Act

  • (a) there is relevant evidence that the person is no longer able to adduce without the leave of the court; and

  • (b) it is not appropriate in the circumstances for the court to order that the evidence be adduced.

• Marginal note:Waiver

  (8) Any person may, within the time otherwise limited by subsection (1) or (2) for an assessment, waive the application of subsection (1) or (2) by filing with the Minister a waiver in the prescribed form and manner specifying the matter in respect of which the person waives the application of that subsection.

• Marginal note:Revoking waiver

  (9) Any person who files a waiver under subsection (8) may revoke it on six months notice to the Minister by filing with the Minister a notice of revocation of the waiver in the prescribed form and manner.

Marginal note:Minister not bound

• 192 (1) The Minister is not bound by any return, application or information provided by or on behalf of a person and may make an assessment despite any return, application or information provided or not provided.

• Marginal note:Liability not affected

  (2) Liability to pay any duty, interest or other amount is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

• Marginal note:Binding effect — unincorporated body

  (3) If a person (referred to in this subsection as the “body”) that is not an individual or a corporation is assessed in respect of any matter,

  • (a) the assessment is not invalid only because one or more other persons (each of which is referred to in this subsection as a “representative”) who are liable for obligations of the body did not receive a notice of the assessment;

  • (b) the assessment is binding on each representative of the body, subject to a reassessment of the body and the rights of the body to object to or appeal from the assessment under this Act; and

  • (c) an assessment of a representative in respect of the same matter is binding on the representative, subject only to a reassessment of the representative and the rights of the representative to object to or appeal from the assessment of the representative under this Act on the grounds that the representative is not a person who is liable to pay an amount to which the assessment of the body relates, the body has been reassessed in respect of that matter or the assessment of the body in respect of that matter has been vacated.

• Marginal note:Assessment deemed valid

  (4) Subject to being reassessed or vacated as a result of an objection or appeal under this Act, an assessment is deemed to be valid and binding despite any error, defect or omission in the assessment or in any proceeding under this Act relating to it.

• Marginal note:Irregularities

  (5) An appeal from an assessment shall not be allowed by reason only of an irregularity, informality, omission or error on the part of any person in the observation of a directory provision of this Act.

Marginal note:Notice of assessment

• 193 (1) After making an assessment, the Minister shall send to the person assessed a notice of the assessment.

• Marginal note:Scope of notice

  (2) A notice of assessment may include assessments in respect of any number or combination of fiscal months, refunds or amounts payable under this Act.

Marginal note:Assessment payable

194 Any amount assessed by the Minister is payable by the person assessed as of the date of the assessment.

Objections to Assessment

Marginal note:Objection to assessment

• 195 (1) Any person who has been assessed and who objects to the assessment may, within 90 days after the date of the notice of the assessment, file with the Minister a notice of objection in the prescribed form and manner setting out the reasons for the objection and all relevant facts.

• Marginal note:Issue to be decided

  (2) A notice of objection shall

  • (a) reasonably describe each issue to be decided;

  • (b) specify in respect of each issue the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and

  • (c) provide the facts and reasons relied on by the person in respect of each issue.

• Marginal note:Late compliance

  (3) Despite subsection (2), if a notice of objection does not include the information required under paragraph (2)(b) or (c) in respect of an issue to be decided that is described in the notice, the Minister may, in writing, request the person to provide the information, and that paragraph is deemed to be complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister.

• Marginal note:Limitation on objections

  (4) Despite subsection (1), if a person has filed a notice of objection to an assessment (in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (8) as a result of the notice of objection, unless the earlier assessment was made in accordance with an order of a court vacating, varying or restoring an assessment or referring an assessment back to the Minister for reconsideration and reassessment, the person may object to the particular assessment in respect of an issue

  • (a) only if the person complied with subsection (2) in the notice with respect to that issue; and

  • (b) only with respect to the relief sought in respect of that issue as specified by the person in the notice.

• Marginal note:Application of subsection (4)

  (5) If a person has filed a notice of objection to an assessment (in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (8) as a result of the notice of objection, subsection (4) does not limit the right of the person to object to the particular assessment in respect of an issue that was part of the particular assessment and not part of the earlier assessment.

• Marginal note:Limitation on objections

  (6) Despite subsection (1), no objection may be made by a person in respect of an issue for which the right of objection has been waived in writing by the person.

• Marginal note:Acceptance of objection

  (7) The Minister may accept a notice of objection even though it was not filed in the prescribed form and manner.

• Marginal note:Consideration of objection

  (8) On receipt of a notice of objection, the Minister shall, without delay, reconsider the assessment and vacate or confirm it or make a reassessment.

• Marginal note:Waiving reconsideration

  (9) If, in a notice of objection, a person who wishes to appeal directly to the Tax Court requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration.

• Marginal note:Notice of decision

  (10) After reconsidering an assessment under subsection (8) or confirming an assessment under subsection (9), the Minister shall send notice of the Minister’s decision by registered or certified mail to the person objecting.

Marginal note:Extension of time by Minister

• 196 (1) If no objection to an assessment is filed under section 195 within the time limited under this Act, a person may make an application to the Minister to extend the time for filing a notice of objection and the Minister may grant the application.

• Marginal note:Contents of application

  (2) An application must set out the reasons why the notice of objection was not filed within the time limited under this Act for doing so.

• Marginal note:How application made

  (3) An application must be made by delivering or mailing to the Chief of Appeals in a Tax Services Office or Taxation Centre of the Agency the application accompanied by a copy of the notice of objection.

• Marginal note:Defect in application

  (4) The Minister may accept an application even though it was not made in accordance with subsection (3).

• Marginal note:Duties of Minister

  (5) On receipt of an application, the Minister shall, without delay, consider the application and grant or refuse it, and shall notify the person of the decision by registered or certified mail.

• Marginal note:Date of objection if application granted

  (6) If an application is granted, the notice of objection is deemed to have been filed on the day of the decision of the Minister.

• Marginal note:Conditions — grant of application

  (7) No application shall be granted under this section unless

  • (a) the application is made within one year after the expiry of the time limited under this Act for objecting; and

  • (b) the person demonstrates that

    • (i) within the time limited under this Act for objecting, the person

      • (A) was unable to act or to give a mandate to act in their name, or

      • (B) had a bona fide intention to object to the assessment,

    • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and

    • (iii) the application was made as soon as circumstances permitted it to be made.

Appeal

Marginal note:Extension of time by Tax Court

• 197 (1) A person who has made an application under section 196 may apply to the Tax Court to have the application granted after either

  • (a) the Minister has refused the application; or

  • (b) 90 days have elapsed after the application was made and the Minister has not notified the person of the Minister’s decision.

• Marginal note:When application may not be made

  (2) No application may be made after the expiry of 30 days after the decision referred to in subsection 196(5) was mailed to the person.

• Marginal note:How application made

  (3) An application must be made by filing in the Registry of the Tax Court, in accordance with the Tax Court of Canada Act, three copies of the documents delivered or mailed under subsection 196(3).

• Marginal note:Copy to the Commissioner

  (4) The Tax Court must send a copy of the application to the Commissioner.

• Marginal note:Powers of Court

  (5) The Tax Court may dispose of an application by dismissing or granting it and, in granting it, the Court may impose any terms that it considers just or order that the notice of objection be deemed to be a valid objection as of the date of the order.

• Marginal note:When application to be granted

  (6) No application shall be granted under this section unless

  • (a) the application under subsection 196(1) was made within one year after the expiry of the time limited under this Act for objecting; and

  • (b) the person demonstrates that

    • (i) within the time limited under this Act for objecting, the person

      • (A) was unable to act or to give a mandate to act in their name, or

      • (B) had a bona fide intention to object to the assessment,

    • (ii) given the reasons set out in the application under this section and the circumstances of the case, it would be just and equitable to grant the application, and

    • (iii) the application under subsection 196(1) was made as soon as circumstances permitted it to be made.

Marginal note:Appeal to Tax Court

• 198 (1) Subject to subsection (2), a person who has filed a notice of objection to an assessment may appeal to the Tax Court to have the assessment vacated or a reassessment made after

  • (a) the Minister has confirmed the assessment or has reassessed; or

  • (b) 180 days have elapsed after the filing of the notice of objection and the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has reassessed.

• Marginal note:No appeal

  (2) No appeal under subsection (1) may be instituted after the expiry of 90 days after notice that the Minister has reassessed or confirmed the assessment is sent to the person under subsection 195(10).

• Marginal note:Amendment of appeal

  (3) The Tax Court may, on any terms that it sees fit, authorize a person who has instituted an appeal in respect of a matter to amend the appeal to include any further assessment in respect of the matter that the person is entitled under this section to appeal.

Marginal note:Extension of time to appeal

• 199 (1) If no appeal to the Tax Court under section 198 has been instituted within the time limited by that section for doing so, a person may make an application to the Tax Court for an order extending the time within which an appeal may be instituted, and the Court may make an order extending the time for appealing and may impose any terms that it considers just.

• Marginal note:Contents of application

  (2) An application must set out the reasons why the appeal was not instituted within the time limited under section 198 for doing so.

• Marginal note:How application made

  (3) An application must be made by filing in the Registry of the Tax Court, in accordance with the Tax Court of Canada Act, three copies of the application together with three copies of the notice of appeal.

• Marginal note:Copy to Deputy Attorney General of Canada

  (4) The Tax Court must send a copy of the application to the office of the Deputy Attorney General of Canada.

• Marginal note:When order to be made

  (5) No order shall be made under this section unless

  • (a) the application is made within one year after the expiry of the time limited under section 198 for appealing; and

  • (b) the person demonstrates that

    • (i) within the time limited under section 198 for appealing, the person

      • (A) was unable to act or to give a mandate to act in their name, or

      • (B) had a bona fide intention to appeal,

    • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application,

    • (iii) the application was made as soon as circumstances permitted it to be made, and

    • (iv) there are reasonable grounds for appealing from the assessment.

Marginal note:Limitation on appeals to the Tax Court

• 200 (1) Despite section 198, if a person has filed a notice of objection to an assessment, the person may appeal to the Tax Court to have the assessment vacated, or a reassessment made, only with respect to

  • (a) an issue in respect of which the person has complied with subsection 195(2) in the notice and only with respect to the relief sought in respect of the issue as specified by the person in the notice; or

  • (b) an issue described in subsection 195(5) if the person was not required to file a notice of objection to the assessment that gave rise to the issue.

• Marginal note:No appeal if waiver

  (2) Despite section 198, a person may not appeal to the Tax Court to have an assessment vacated or varied in respect of an issue for which the right of objection or appeal has been waived in writing by the person.

Marginal note:Institution of appeals

201 An appeal to the Tax Court under this Act shall be instituted in accordance with the Tax Court of Canada Act.

Marginal note:Notice to the Commissioner

202 If an appeal is made to the Tax Court under section 18.3001 of the Tax Court of Canada Act, the Court shall immediately send a copy of the notice of appeal to the office of the Commissioner.

Marginal note:Disposition of appeal

203 The Tax Court may dispose of an appeal from an assessment by

• (a) dismissing it; or

• (b) allowing it and

  • (i) vacating the assessment, or

  • (ii) referring the assessment back to the Minister for reconsideration and reassessment.

Marginal note:References to Tax Court

• 204 (1) If the Minister and another person agree in writing that a question arising under this Act, in respect of any assessment or proposed assessment, should be determined by the Tax Court, that question shall be determined by that Court.

• Marginal note:Time during consideration not to count

  (2) For the purpose of making an assessment of a person who agreed in writing to the determination of a question, filing a notice of objection to an assessment or instituting an appeal from an assessment, the time between the day on which proceedings are instituted in the Tax Court to have a question determined and the day on which the question is finally determined shall not be counted in the computation of

  • (a) the four-year periods referred to in section 191;

  • (b) the period within which a notice of objection to an assessment may be filed under section 195; or

  • (c) the period within which an appeal may be instituted under section 198.

Marginal note:Reference of common questions to Tax Court

• 205 (1) If the Minister is of the opinion that a question arising out of one and the same transaction or occurrence or series of transactions or occurrences is common to assessments or proposed assessments in respect of two or more persons, the Minister may apply to the Tax Court for a determination of the question.

• Marginal note:Contents of application

  (2) An application shall set out

  • (a) the question in respect of which the Minister requests a determination;

  • (b) the names of the persons that the Minister seeks to have bound by the determination of the question; and

  • (c) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of each person named in the application.

• Marginal note:Service

  (3) A copy of the application shall be served by the Minister on each of the persons named in it and on any other person who, in the opinion of the Tax Court, is likely to be affected by the determination of the question.

• Marginal note:Determination by Tax Court of question

  (4) If the Tax Court is satisfied that a determination of a question set out in an application will affect assessments or proposed assessments in respect of two or more persons who have been served with a copy of the application and who are named in an order of the Tax Court under this subsection, it may

  • (a) if none of the persons so named has appealed from such an assessment, proceed to determine the question in any manner that it considers appropriate; or

  • (b) if one or more of the persons so named has or have appealed, make any order joining a party or parties to that or those appeals that it considers appropriate and proceed to determine the question.

• Marginal note:Determination final and conclusive

  (5) Subject to subsection (6), if a question set out in an application is determined by the Tax Court, the determination is final and conclusive for the purposes of any assessments of persons named by the Court under subsection (4).

• Marginal note:Appeal

  (6) If a question set out in an application is determined by the Tax Court, the Minister or any of the persons who have been served with a copy of the application and who are named in an order of the Court under subsection (4) may, in accordance with the provisions of this Act, the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from or applications for judicial review of decisions of the Tax Court, appeal from the determination.

• Marginal note:Parties to appeal

  (7) The parties who are bound by a determination are parties to any appeal from the determination.

• Marginal note:Time during consideration not counted

  (8) For the purpose of making an assessment of the person, filing a notice of objection to an assessment or instituting an appeal from an assessment, the periods described in subsection (9) shall not be counted in the computation of

  • (a) the four-year periods referred to in section 191;

  • (b) the period within which a notice of objection to an assessment may be filed under section 195; or

  • (c) the period within which an appeal may be instituted under section 198.

• Marginal note:Excluded periods

  (9) The period that is not to be counted in the computation of the periods described in paragraphs (8)(a) to (c) is the time between the day on which an application that is made under this section is served on a person under subsection (3) and

  • (a) in the case of a person named in an order of the Tax Court under subsection (4), the day on which the determination becomes final and conclusive and not subject to any appeal; or

  • (b) in the case of any other person, the day on which the person is served with notice that the person has not been named in an order of the Tax Court under subsection (4).

Records and Information

Marginal note:Keeping records — general

• 206 (1) The following persons shall keep all records that are necessary to determine whether they have complied with this Act:

  • (a) every licensee or registrant;

  • (b) every person who is required under this Act to file a return;

  • (c) every person who makes an application for a refund that may be obtained under this Act; and

  • (d) every person who transports non-duty-paid packaged alcohol or a tobacco product that is not stamped.

• Marginal note:Keeping records — tobacco growers and provincial tobacco marketing boards

  (2) Every tobacco grower and every body established under provincial law for the marketing of raw leaf tobacco grown in the province shall keep records that will enable the determination of the amount of raw leaf tobacco grown, received or disposed of by them.

• Marginal note:Keeping records — tobacco manufacturing equipment

  (2.1) Every person who possesses tobacco manufacturing equipment (other than equipment that is designed for use by an individual manufacturing manufactured tobacco or cigars for their personal use as permitted under subsection 25(3) and that is not designed for commercial manufacturing) shall keep records that will enable the determination of the source, the type and the disposition of that equipment.

• Marginal note:Minister may specify information

  (3) The Minister may specify in writing the form a record is to take and any information that the record must contain.

• Marginal note:Language and location of record

  (4) Unless otherwise authorized by the Minister, a record shall be kept in Canada in English or French.

• Marginal note:Electronic records

  (5) Every person required under this Act to keep a record who does so electronically shall ensure that all equipment and software necessary to make the record intelligible are available during the retention period required for the record.

• Marginal note:Inadequate records

  (6) If a person fails to keep adequate records for the purposes of this Act, the Minister may, in writing, require the person to keep any records that the Minister may specify and the person shall keep the records specified by the Minister.

• Marginal note:Period for retention

  (7) Every person who is required to keep records shall retain them until the expiry of six years after the end of the year to which they relate or for any other period that may be prescribed.

Marginal note:Objection or appeal

• 207 (1) If a person who is required under this Act to keep records serves a notice of objection or is a party to an appeal or reference under this Act, the person shall retain every record that pertains to the subject-matter of the objection, appeal or reference until the objection, appeal or reference is finally disposed of.

• Marginal note:Demand by Minister

  (2) If the Minister is of the opinion that it is necessary for the administration or enforcement of this Act, the Minister may, by a demand served personally or by registered or certified mail, require any person required under this Act to keep records to retain those records for any period that is specified in the demand and the person shall comply with the demand.

• Marginal note:Permission for earlier disposal

  (3) A person who is required under this Act to keep records may dispose of them before the expiry of the period in respect of which they are required to be kept if written permission for their disposal is given by the Minister.

Marginal note:Requirement to provide records or information

• 208 (1) Despite any other provision of this Act, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of a listed international agreement or of this Act, by notice served personally or by registered or certified mail, require any person to provide the Minister, within any reasonable time that is stipulated in the notice, with

  • (a) any information or additional information, including a return under this Act; or

  • (b) any record.

• Marginal note:Unnamed persons

  (2) The Minister shall not impose on any person (in this section referred to as a “third party”) a requirement to provide information or any record relating to one or more unnamed persons unless the Minister first obtains the authorization of a judge under subsection (3).

• Marginal note:Judicial authorization

  (3) On ex parte application by the Minister, a judge may, subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement relating to an unnamed person or more than one unnamed person (in this section referred to as the “group”) if the judge is satisfied by information on oath that

  • (a) the person or group is ascertainable; and

  • (b) the requirement is made to verify compliance by the person or persons in the group with any duty or obligation under this Act.

• Marginal note:Service of authorization

  (4) If an authorization is granted, it shall be served together with the notice referred to in subsection (1).

• Marginal note:Review of authorization

  (5) If an authorization is granted, a third party on whom a notice is served may, within 15 days after the service of the notice, apply to the judge who granted the authorization or, if that judge is unable to act, to another judge of the same court for a review of the authorization.

• Marginal note:Powers on review

  (6) On hearing an application under subsection (5), a judge may

  • (a) cancel the authorization previously granted if the judge is not then satisfied that the conditions in paragraphs (3)(a) and (b) have been met; or

  • (b) confirm or vary the authorization if the judge is satisfied that those conditions have been met.

Marginal note:Compliance order

• 209 (1) On summary application by the Minister, a judge may, despite section 224, order a person to provide any access, assistance, information or record sought by the Minister under section 208 or 260 if the judge is satisfied that

  • (a) the person was required under section 208 or 260 to provide the access, assistance, information or record and did not do so; and

  • (b) in the case of information or a record, the information or record is not protected from disclosure by solicitor-client privilege.

• Marginal note:Notice required

  (2) An application must not be heard before the end of five clear days from the time the notice of application is served on the person against whom the order is sought.

• Marginal note:Judge may impose conditions

  (3) The judge making an order may impose any conditions in respect of the order that the judge considers appropriate.

• Marginal note:Contempt of court

  (4) If a person fails or refuses to comply with an order, a judge may find the person in contempt of court and the person is subject to the processes and the punishments of the court to which the judge is appointed.

• Marginal note:Appeal

  (5) An order by a judge may be appealed to a court having appellate jurisdiction over decisions of the court to which the judge is appointed. An appeal does not suspend the execution of the order unless it is so ordered by a judge of the court to which the appeal is made.

• Marginal note:Scope of solicitor-client privilege

  (6) For the purposes of paragraph (1)(b), an accounting record of a legal counsel and any invoice, voucher or cheque that relates to the record is deemed not to be protected from disclosure by solicitor-client privilege.

Meaning of foreign-based information or record

• 210 (1) In this section, foreign-based information or record means any information or record that is available or located outside Canada and that may be relevant to the administration or enforcement of this Act.

• Marginal note:Requirement to provide foreign-based information

  (2) Despite any other provision of this Act, the Minister may, by notice served personally or by registered or certified mail, require a person resident in Canada or a non-resident person who carries on business in Canada to provide any foreign-based information or record.

• Marginal note:Notice

  (3) The notice shall set out

  • (a) a reasonable period of not less than 90 days for the provision of the information or record;

  • (b) a description of the information or record being sought; and

  • (c) the consequences under subsection (8) to the person of the failure to provide the information or record being sought within the period set out in the notice.

• Marginal note:Review of foreign information requirement

  (4) The person on whom a notice of a requirement is served may, within 90 days after the service of the notice, apply to a judge for a review of the requirement.

• Marginal note:Powers on review

  (5) On hearing an application in respect of a requirement, a judge may

  • (a) confirm the requirement;

  • (b) vary the requirement if satisfied that it is appropriate in the circumstances; or

  • (c) set aside the requirement if satisfied that it is unreasonable.

• Marginal note:Requirement not unreasonable

  (6) For the purposes of subsection (5), a requirement to provide information or a record shall not be considered to be unreasonable because the information or record is under the control of or available to a non-resident person that is not controlled by the person served with the notice of the requirement if that person is related to the non-resident person.

• Marginal note:Time during consideration not to count

  (7) The period between the day on which an application for the review of a requirement is made and the day on which the review is decided shall not be counted in the computation of

  • (a) the period set out in the notice of the requirement; and

  • (b) the period within which an assessment may be made under section 188 or 189.

• Marginal note:Consequence of failure

  (8) If a person fails to comply substantially with a notice served under subsection (2) and the notice is not set aside under subsection (5), any court having jurisdiction in a civil proceeding relating to the administration or enforcement of this Act shall, on the motion of the Minister, prohibit the introduction by that person of any foreign-based information or record described in that notice.

Marginal note:Definitions applicable to confidentiality provisions

• 211 (1) The definitions in this subsection apply in this section.

  authorized person

  personne autorisée

  authorized person means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of Her Majesty to assist in carrying out the provisions of this Act. (personne autorisée)

  business number

  numéro d’entreprise

  business number means the number (other than a Social Insurance Number) used by the Minister to identify

  • (a) a licensee or a registrant for the purposes of this Act; or

  • (b) an applicant for a refund under this Act. (numéro d’entreprise)

  confidential information

  renseignement confidentiel

  confidential information means information of any kind and in any form that relates to one or more persons and that is

  • (a) obtained by or on behalf of the Minister for the purposes of this Act;

  • (a.1) obtained by or on behalf of the Minister of Public Safety and Emergency Preparedness for the purposes of section 68; or

  • (b) prepared from information referred to in paragraph (a) or (a.1).

  It excludes information that does not directly or indirectly reveal the identity of the person to whom it relates. (renseignement confidentiel)

  court of appeal

  cour d’appel

  court of appeal has the same meaning as in section 2 of the Criminal Code. (cour d’appel)

  official

  fonctionnaire

  official means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, Her Majesty or Her Majesty in right of a province, or a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged. (fonctionnaire)

• Marginal note:Provision of information

  (2) Except as authorized under this section, no official shall knowingly

  • (a) provide, or allow to be provided, to any person any confidential information;

  • (b) allow any person to have access to any confidential information; or

  • (c) use any confidential information other than in the course of the administration or enforcement of this Act.

• Marginal note:Confidential information evidence not compellable

  (3) Despite any other Act of Parliament or other law, no official shall be required, in connection with any legal proceedings, to give or produce evidence relating to any confidential information.

• Marginal note:Communications if proceedings have been commenced

  (4) Subsections (2) and (3) do not apply to

  • (a) criminal proceedings, either by indictment or on summary conviction, that have been commenced by the laying of an information or the preferring of an indictment, under an Act of Parliament; or

  • (b) any legal proceedings relating to the administration or enforcement of this Act, the Canada Pension Plan, the Employment Insurance Act, the Unemployment Insurance Act or any other Act of Parliament or law of a province that provides for the imposition or collection of a tax or duty.

• Marginal note:Authorized provision of information

  (5) The Minister may provide appropriate persons with any confidential information that may reasonably be regarded as necessary solely for a purpose relating to the life, health or safety of an individual or to the environment in Canada or any other country.

• Marginal note:Disclosure of personal information

  (6) An official may

  • (a) provide any confidential information to any person that may reasonably be regarded as necessary for the purpose of the administration or enforcement of this Act, solely for that purpose;

  • (b) provide a person with confidential information that can reasonably be regarded as necessary for the purposes of determining any liability or obligation of the person or any refund or other payment to which the person is or may become entitled under this Act;

  • (c) provide, allow to be provided, or allow inspection of or access to any confidential information to or by any person, or any person within a class of persons, that the Minister may authorize, subject to any conditions that the Minister may specify;

  • (d) provide any person who is legally entitled under an Act of Parliament to confidential information with, or access to, that information, solely for the purposes for which the person is entitled to the information;

  • (e) provide confidential information

    • (i) to an official of the Department of Finance solely for the purpose of the formulation or evaluation of fiscal policy,

    • (ii) to an official solely for the purpose of the initial implementation of a fiscal policy or for the purposes of the administration or enforcement of the Canada Pension Plan, the Employment Insurance Act, the Unemployment Insurance Act or an Act of Parliament that provides for the imposition or collection of a tax or duty,

    • (iii) to an official solely for the purposes of the administration or enforcement of a law of a province that provides for the imposition or collection of a tax or duty,

    • (iv) to an official of the government of a province solely for the purpose of the formulation or evaluation of fiscal policy,

    • (v) to an official of a department or agency of the Government of Canada or of a province as to the name, address, telephone number, occupation, size or type of business of a person, solely for the purpose of enabling the department or agency to obtain statistical data for research and analysis,

    • (vi) to an official solely for the purpose of setting off, against any sum of money that may be due or payable by Her Majesty, a debt due to

      • (A) Her Majesty, or

      • (B) Her Majesty in right of a province on account of taxes payable to the province, if an agreement exists between Canada and the province under which Canada is authorized to collect taxes on behalf of the province, or

    • (vii) to an official solely for the purposes of section 7.1 of the Federal-Provincial Fiscal Arrangements Act;

  • (f) provide confidential information solely for the purposes of sections 23 to 25 of the Financial Administration Act;

  • (g) use confidential information to compile information in a form that does not directly or indirectly reveal the identity of the person to whom the information relates;

  • (h) use, or provide any person with, confidential information solely for a purpose relating to the supervision, evaluation or discipline of an authorized person by Her Majesty in respect of a period during which the authorized person was employed by or engaged by or on behalf of Her Majesty to assist in the administration or enforcement of this Act, to the extent that the information is relevant for that purpose;

  • (i) use confidential information relating to a person to provide that person with information;

  • (j) provide the business number, name, address, telephone number and facsimile number of a holder of a business number to an official of a department or agency of the Government of Canada or of a province solely for the purposes of the administration or enforcement of an Act of Parliament or a law of a province, if the holder of the business number is required under that Act or that law to provide the information (other than the business number) to the department or agency;

  • (k) provide confidential information to a police officer (within the meaning assigned by subsection 462.48(17) of the Criminal Code) solely for the purpose of investigating whether an offence has been committed under the Criminal Code, or the laying of an information or the preferring of an indictment, if

    • (i) the information can reasonably be regarded as being relevant for the purpose of ascertaining the circumstances in which an offence under the Criminal Code may have been committed, or the identity of the person or persons who may have committed an offence, with respect to an official, or with respect to any person related to that official,

    • (ii) the official was or is engaged in the administration or enforcement of this Act, and

    • (iii) the offence can reasonably be considered to be related to that administration or enforcement;

  • (l) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, solely for the purposes of a provision contained in a listed international agreement; or

  • (m) provide confidential information to any person solely for the purpose of enabling the Chief Statistician, within the meaning assigned by section 2 of the Statistics Act, to provide to a statistical agency of a province data concerning business activities carried on in the province, if the information is used by the statistical agency solely for research and analysis and the statistical agency is authorized under the law of the province to collect the same or similar information on its own behalf in respect of such activities.

• Marginal note:Measures to prevent unauthorized use or disclosure

  (7) The person presiding at a legal proceeding relating to the supervision, evaluation or discipline of an authorized person may order any measures that are necessary to ensure that confidential information is not used or provided to any person for any purpose not relating to that proceeding, including

  • (a) holding a hearing in camera;

  • (b) banning the publication of the information;

  • (c) concealing the identity of the person to whom the information relates; and

  • (d) sealing the records of the proceeding.

• Marginal note:Disclosure to person or on consent

  (8) An official may provide confidential information relating to a person

  • (a) to that person; and

  • (b) with the consent of that person, to any other person.

• Marginal note:Appeal from order or direction

  (9) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official to give or produce evidence relating to any confidential information may, by notice served on all interested parties, be appealed immediately by the Minister or by the person against whom it is made to

  • (a) the court of appeal of the province in which it is made, in the case of an order or direction made by a court or other tribunal established under the laws of the province, whether that court or tribunal is exercising a jurisdiction conferred by the laws of Canada; or

  • (b) the Federal Court of Appeal, in the case of an order or direction made by a court or other tribunal established under the laws of Canada.

• Marginal note:Disposition of appeal

  (10) The court to which an appeal is taken may allow the appeal and quash the order or direction appealed from or may dismiss the appeal, and the rules of practice and procedure from time to time governing appeals to the courts shall apply, with any modifications that the circumstances require, in respect of the appeal.

• Marginal note:Stay

  (11) An appeal shall stay the operation of the order or direction appealed from until judgment is pronounced.

Bankruptcies and Corporate Reorganizations

Marginal note:Definitions

• 212 (1) The definitions in this subsection apply in this section.

  bankrupt

  failli

  bankrupt has the same meaning as in subsection 2(1) of the Bankruptcy and Insolvency Act. (failli)

  business

  entreprise

  business includes a part of a business. (entreprise)

  receiver

  séquestre

  receiver means a person who

  • (a) under the authority of a debenture, bond or other debt security, of a court order or of an Act of Parliament or of the legislature of a province, is empowered to operate or manage a business or a property of another person;

  • (b) is appointed by a trustee under a trust deed in respect of a debt security to exercise the authority of the trustee to manage or operate a business or a property of the debtor under the debt security;

  • (c) is appointed by a bank or an authorized foreign bank, within the meaning of section 2 of the Bank Act, to act as an agent of the bank in the exercise of the authority of the bank under subsection 426(3) of that Act in respect of property of another person;

  • (d) is appointed as a liquidator to liquidate the assets of a corporation or to wind up the affairs of a corporation; or

  • (e) is appointed as a committee, guardian or curator with the authority to manage and care for the affairs and assets of an individual who is incapable of managing those affairs and assets.

  It includes a person who is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person, but, if a person is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person, it does not include that creditor. (séquestre)

  relevant assets

  actif pertinent

  relevant assets of a receiver means

  • (a) if the receiver’s authority relates to all the properties, businesses, affairs and assets of a person, all those properties, businesses, affairs and assets; and

  • (b) if the receiver’s authority relates to only part of the properties, businesses, affairs or assets of a person, that part of the properties, businesses, affairs or assets. (actif pertinent)

  representative

  représentant

  representative means a person, other than a trustee in bankruptcy or a receiver, who is administering, winding up, controlling or otherwise dealing with any property, business or estate. (représentant)

• Marginal note:Trustee’s obligations

  (2) For the purposes of this Act, if on a particular day a person becomes a bankrupt,

  • (a) the trustee in bankruptcy, and not the person, is liable for the payment of any duty, interest or other amount (other than an amount that relates solely to activities in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate) that becomes payable by the person under this Act during the period beginning on the day immediately after the day on which the trustee became the trustee in bankruptcy of the person and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act, except that

    • (i) the trustee is liable for the payment of any duty, interest or other amount that became payable by the person after the particular day in respect of fiscal months that ended on or before the particular day, or of any duty, interest or other amount that became payable by the person after the particular day, only to the extent of the property of the person in possession of the trustee available to satisfy the liability,

    • (ii) the trustee is not liable for the payment of any duty, interest or other amount for which a receiver is liable under subsection (3), and

    • (iii) the payment by the person of an amount in respect of the liability shall discharge the liability of the trustee to the extent of that amount;

  • (b) if, on the particular day the person is licensed or registered under this Act, the licence or registration continues in relation to the activities of the person to which the bankruptcy relates as though the trustee in bankruptcy were the licensee or registrant in respect of those activities and ceases to apply to the activities of the person in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate;

  • (c) the fiscal month of the person begins and ends on the day on which it would have begun and ended if the bankruptcy had not occurred, except that

    • (i) the fiscal month of the person during which the person becomes a bankrupt shall end on the particular day and a new fiscal month of the person in relation to the activities of the person to which the bankruptcy relates shall begin on the day immediately after the particular day, and

    • (ii) the fiscal month of the person, in relation to the activities of the person to which the bankruptcy relates, during which the trustee in bankruptcy is discharged under the Bankruptcy and Insolvency Act shall end on the day on which the discharge is granted;

  • (d) subject to paragraph (f), the trustee in bankruptcy shall file with the Minister in the prescribed form and manner all returns in respect of the activities of the person to which the bankruptcy relates for the fiscal months of the person ending in the period beginning on the day immediately after the particular day and ending on the day on which the discharge of the trustee is granted under the Bankruptcy and Insolvency Act and that are required under this Act to be filed by the person, as if those activities were the only activities of the person;

  • (e) subject to paragraph (f), if the person has not on or before the particular day filed a return required under this Act to be filed by the person for a fiscal month of the person ending on or before the particular day, the trustee in bankruptcy shall, unless the Minister waives in writing the requirement for the trustee to file the return, file with the Minister in the prescribed form and manner a return for that fiscal month of the person; and

  • (f) if there is a receiver with authority in respect of any business, property, affairs or assets of the person, the trustee in bankruptcy is not required to include in any return any information that the receiver is required under subsection (3) to include in a return.

• Marginal note:Receiver’s obligations

  (3) For the purposes of this Act, if on a particular day a receiver is vested with authority to manage, operate, liquidate or wind up any business or property, or to manage and care for the affairs and assets, of a person,

  • (a) if the relevant assets of the receiver are a part and not all of the person’s businesses, properties, affairs or assets, the relevant assets of the receiver shall be deemed to be, throughout the period during which the receiver is acting as receiver of the person, separate from the remainder of the businesses, properties, affairs or assets of the person as though the relevant assets were businesses, properties, affairs or assets, as the case may be, of a separate person;

  • (b) the person and the receiver are jointly and severally or solidarily liable for the payment of any duty, interest or other amount that becomes payable by the person under this Act before or during the period during which the receiver is acting as receiver of the person to the extent that the duty, interest or other amount can reasonably be considered to relate to the relevant assets of the receiver or to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person at the time the duty, interest or other amount became payable except that

    • (i) the receiver is liable for the payment of any duty, interest or other amount that became payable before that period only to the extent of the property of the person in possession or under the control and management of the receiver after

      • (A) satisfying the claims of creditors whose claims ranked, on the particular day, in priority to the claim of the Crown in respect of the duty, interest or other amount, and

      • (B) paying any amounts that the receiver is required to pay to a trustee in bankruptcy of the person,

    • (ii) the person is not liable for the payment of any duty, interest or other amount payable by the receiver, and

    • (iii) the payment by the person or the receiver of an amount in respect of the duty, interest or other amount shall discharge the joint and several or solidary liability to the extent of that amount;

  • (c) the fiscal month of the person begins and ends on the day on which it would have begun and ended if the vesting had not occurred, except that

    • (i) the fiscal month of the person, in relation to the relevant assets of the receiver, during which the receiver begins to act as receiver of the person, shall end on the particular day and a new fiscal month of the person in relation to the relevant assets shall begin on the day immediately after the particular day, and

    • (ii) the fiscal month of the person, in relation to the relevant assets, during which the receiver ceases to act as receiver of the person, shall end on the day on which the receiver ceases to act as receiver of the person;

  • (d) the receiver shall file with the Minister in the prescribed form and manner all returns in respect of the relevant assets of the receiver for fiscal months ending in the period during which the receiver is acting as receiver and that are required under this Act to be made by the person, as if the relevant assets were the only businesses, properties, affairs and assets of the person; and

  • (e) if the person has not on or before the particular day filed a return required under this Act to be filed by the person for a fiscal month of the person ending on or before the particular day, the receiver shall, unless the Minister waives in writing the requirement for the receiver to file the return, file with the Minister in the prescribed form and manner a return for that fiscal month that relates to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person during that fiscal month.

• Marginal note:Certificates for receivers and representatives

  (4) Every receiver and representative who controls property of another person who is required to pay any duty, interest or other amount under this Act shall, before distributing the property to any person, obtain a certificate from the Minister certifying that the following amounts have been paid or that security for the payment of them has, in accordance with this Act, been accepted by the Minister:

  • (a) all duty, interest and other amounts that are payable by the other person under this Act in respect of the fiscal month during which the distribution is made, or any previous fiscal month; and

  • (b) all duty, interest and other amounts that are, or can reasonably be expected to become, payable under this Act by the representative or receiver in that capacity in respect of the fiscal month during which the distribution is made, or any previous fiscal month.

• Marginal note:Liability for failure to obtain certificate

  (5) Any receiver or representative who distributes property without obtaining a certificate in respect of the duty, interest or other amounts referred to in subsection (4) is personally liable for the payment of those amounts to the extent of the value of the property so distributed.

Marginal note:Amalgamations

213 If two or more corporations (each of which is referred to in this section as a “predecessor”) are merged or amalgamated to form one corporation (in this section referred to as the “new corporation”), the new corporation is deemed to be a separate person from each of the predecessors for the purposes of this Act except that, for prescribed purposes, the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor.

PART 6Enforcement

Offences and Punishment

Marginal note:Unlawful production, sale, etc., of tobacco or alcohol

214 Every person who contravenes section 25, 27 or 29, subsection 32.1(1) or section 60 or 62 is guilty of an offence and liable

• (a) on conviction on indictment, to a fine of not less than $50,000 and not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both; or

• (b) on summary conviction, to a fine of not less than $10,000 and not more than $500,000 or to imprisonment for a term of not more than 18 months, or to both.

Marginal note:Punishment — section 30

• 215 (1) Every person who contravenes section 30 is guilty of an offence and liable

  • (a) on conviction on indictment, to a fine of not less than the amount determined under subsection (2) and not more than the amount determined under subsection (3) or to imprisonment for a term of not more than five years, or to both; or

  • (b) on summary conviction, to a fine of not less than the amount determined under subsection (2) and not more than the lesser of $100,000 and the amount determined under subsection (3) or to imprisonment for a term of not more than 18 months, or to both.

• Marginal note:Minimum amount

  (2) The amount determined under this subsection for an offence under subsection (1) is the greater of

  • (a) $3.144 multiplied by the number of kilograms of raw leaf tobacco to which the offence relates, and

  • (b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction.

• Marginal note:Maximum amount

  (3) The amount determined under this subsection for an offence under subsection (1) is the greater of

  • (a) $4.716 multiplied by the number of kilograms of raw leaf tobacco to which the offence relates, and

  • (b) $2,000 in the case of an indictable offence and $1,000 in the case of an offence punishable on summary conviction.

Marginal note:Punishment — section 32

• 216 (1) Every person who contravenes section 32 is guilty of an offence and liable

  • (a) on conviction on indictment, to a fine of not less than the amount determined under subsection (2) and not more than the amount determined under subsection (3) or to imprisonment for a term of not more than five years, or to both; or

  • (b) on summary conviction, to a fine of not less than the amount determined under subsection (2) and not more than the lesser of $500,000 and the amount determined under subsection (3) or to imprisonment for a term of not more than 18 months, or to both.

• Marginal note:Minimum amount

  (2) The amount determined under this subsection for an offence under subsection (1) is the greater of

  • (a) the total of

    • (i) $0.17 multiplied by the number of cigarettes to which the offence relates,

    • (ii) $0.17 multiplied by the number of tobacco sticks to which the offence relates,

    • (iii) $0.116 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

    • (iv) $0.29 multiplied by the number of cigars to which the offence relates, and

  • (b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction.

• Marginal note:Maximum amount

  (3) The amount determined under this subsection for an offence under subsection (1) is the greater of

  • (a) the total of

    • (i) $0.255 multiplied by the number of cigarettes to which the offence relates,

    • (ii) $0.255 multiplied by the number of tobacco sticks to which the offence relates,

    • (iii) $0.174 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

    • (iv) $0.67 multiplied by the number of cigars to which the offence relates, and

  • (b) $2,000 in the case of an indictable offence and $1,000 in the case of an offence punishable on summary conviction.

Marginal note:Punishment for certain alcohol offences

• 217 (1) Every person who contravenes section 63 or 73, subsection 78(1) or 83(1) or section 90, 93.1, 93.2 or 96 is guilty of an offence and liable

  • (a) on conviction on indictment, to a fine of not less than the amount determined under subsection (2) and not more than the amount determined under subsection (3) or to imprisonment for a term of not more than five years, or to both; or

  • (b) on summary conviction, to a fine of not less than the amount determined under subsection (2) and not more than the lesser of $100,000 and the amount determined under subsection (3) or to imprisonment for a term of not more than 18 months, or to both.

• Marginal note:Minimum amount

  (2) The amount determined under this subsection for an offence under subsection (1) is the greater of

  • (a) the total of

    • (i) $11.696 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates,

    • (ii) $0.62 multiplied by the number of litres of wine to which the offence relates, and

    • (iii) $10 multiplied by the number of litres of specially denatured alcohol or a restricted formulation to which the offence relates, and

  • (b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction.

• Marginal note:Maximum amount

  (3) The amount determined under this subsection for an offence under subsection (1) is the greater of

  • (a) the total of

    • (i) $23.392 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates,

    • (ii) $1.24 multiplied by the number of litres of wine to which the offence relates, and

    • (iii) $20 multiplied by the number of litres of specially denatured alcohol or a restricted formulation to which the offence relates, and

  • (b) $2,000 in the case of an indictable offence and $1,000 in the case of an offence punishable on summary conviction.

Marginal note:Punishment for more serious alcohol offences

• 218 (1) Every person who contravenes any of sections 67, 69 to 72, 75 or 88 or subsection 101(1) or (2) is guilty of an offence and liable

  • (a) on conviction on indictment, to a fine of not less than the amount determined under subsection (2) and not more than the amount determined under subsection (3) or to imprisonment for a term of not more than five years, or to both; or

  • (b) on summary conviction, to a fine of not less than the amount determined under subsection (2) and not more than the lesser of $500,000 and the amount determined under subsection (3) or to imprisonment for a term of not more than 18 months, or to both.

• Marginal note:Minimum amount

  (2) The amount determined under this subsection for an offence under subsection (1) is the greater of

  • (a) the total of

    • (i) $23.392 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and

    • (ii) $1.24 multiplied by the number of litres of wine to which the offence relates, and

  • (b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction.

• Marginal note:Maximum amount

  (3) The amount determined under this subsection for an offence under subsection (1) is the greater of

  • (a) the total of

    • (i) $35.088 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and

    • (ii) $1.86 multiplied by the number of litres of wine to which the offence relates, and

  • (b) $2,000 in the case of an indictable offence and $1,000 in the case of an offence punishable on summary conviction.

Marginal note:Falsifying or destroying records

• 219 (1) Every person commits an offence who

  • (a) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in a return, application, certificate, record or answer filed or made as required under this Act;

  • (b) for the purpose of evading payment of any duty or obtaining a refund to which the person is not entitled under this Act

    • (i) destroys, alters, mutilates, conceals or otherwise disposes of any records of a person, or

    • (ii) makes, or assents to or acquiesces in the making of, a false or deceptive entry, or omits, or assents to or acquiesces in the omission, to enter a material particular in the records of a person;

  • (c) wilfully, in any manner, evades or attempts to evade compliance with this Act or payment of duty, interest or other amount imposed under this Act;

  • (d) wilfully, in any manner, obtains or attempts to obtain a refund to which the person is not entitled under this Act; or

  • (e) conspires with any person to commit an offence described in any of paragraphs (a) to (d).

• Marginal note:Punishment

  (2) Every person who commits an offence under subsection (1) is guilty of

  • (a) an indictable offence and is liable to

    • (i) a fine of not less than $1,000 plus 200%, and not more than $10,000 plus 300%, of the total amount of duty, interest or other amount that was sought to be evaded, or of the refund sought, or, if that total amount cannot be ascertained, a fine of not less than $10,000 and not more than $100,000,

    • (ii) imprisonment for a term of not more than five years, or

    • (iii) both a fine referred to in subparagraph (i) and imprisonment referred to in subparagraph (ii); or

  • (b) an offence punishable on summary conviction and liable to

    • (i) a fine of not less than $100 plus 200%, and not more than $1,000 plus 300%, of the total amount of duty, interest or other amount that was sought to be evaded, or of the refund sought, or, if that total amount cannot be ascertained, a fine of not less than $1,000 and not more than $25,000,

    • (ii) imprisonment for a term of not more than 18 months, or

    • (iii) both a fine referred to in subparagraph (i) and imprisonment referred to in subparagraph (ii).

• Marginal note:Stay of appeal

  (3) If, in any appeal under Part 5, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Tax Court and, on doing so, the proceedings before the Tax Court are stayed pending final determination of the outcome of the prosecution.

Marginal note:Obstruction of officer

• 220 (1) No person shall, physically or otherwise, do or attempt to do any of the following:

  • (a) interfere with, hinder or molest any officer doing anything the officer is authorized to do under this Act; or

  • (b) prevent any officer from doing anything the officer is authorized to do under this Act.

• Marginal note:Failure to comply

  (2) Every person shall do everything the person is required to do under any of sections 208 to 210 or 260.

• Marginal note:Punishment

  (3) Every person who contravenes subsection (1) or (2) is guilty of an offence punishable on summary conviction and liable to a fine of not less than $1,000 and not more than $25,000 or to imprisonment for a term of not more than 12 months, or to both.

Marginal note:Offence — confidential information

• 221 (1) Every person who

  • (a) contravenes subsection 211(2), or

  • (b) knowingly contravenes an order made under subsection 211(7)

  is guilty of an offence and liable on summary conviction to a fine of not more than $5,000 or to imprisonment for a term of not more than 12 months, or to both.

• Marginal note:Offence — confidential information

  (2) Every person

  • (a) to whom confidential information has been provided for a purpose pursuant to paragraph 211(6)(b), (d), (h), (l) or (m), or

  • (b) who is an official to whom confidential information has been provided for a purpose pursuant to paragraph 211(6)(a), (e) or (f),

  and who for any other purpose knowingly uses, provides to any person, allows the provision to any person of, or allows any person access to, that information is guilty of an offence and liable on summary conviction to a fine of not more than $5,000 or to imprisonment for a term of not more than 12 months, or to both.

• Marginal note:Definitions

  (3) In this section, confidential information and official have the same meaning as in subsection 211(1).

Marginal note:Other contraventions

222 Every person who contravenes a provision of this Act or the regulations for which no other offence is specified in this Act is guilty of an offence and is liable on summary conviction to a fine of not more than $100,000 or to imprisonment for a term of not more than 12 months, or to both.

Marginal note:Defence of due diligence

223 No person shall be convicted of an offence under this Act if the person establishes that they exercised all due diligence to prevent the commission of the offence.

Marginal note:Compliance orders

224 If a person has been convicted by a court of an offence for a failure to comply with a provision of this Act, the court may make any order that it considers proper in order to enforce compliance with the provision.

Marginal note:No penalty unless imposed before laying of information

225 A person who is convicted of failing to comply with a provision of this Act is not liable to pay a penalty under any of sections 233 to 253 for the same failure unless the penalty was imposed under section 254 before the information or complaint giving rise to the conviction was laid or made.

Marginal note:Officers of corporations, etc.

226 If a person other than an individual commits an offence under this Act, every officer, director or agent of the person who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and liable on conviction to the punishment provided for the offence, whether or not the person has been prosecuted or convicted.

Marginal note:Offences by employees or agents

227 In any prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or agent of the accused, whether or not the employee or agent is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

Marginal note:Power to decrease punishment

228 Despite the Criminal Code or any other law, the court has, in any prosecution or proceeding under this Act, neither the power to impose less than the minimum fine fixed under this Act nor the power to suspend sentence.

Marginal note:Information or complaint

• 229 (1) An information or complaint under this Act may be laid or made by any officer. If an information or complaint is purported to have been laid or made under this Act, it is deemed to have been laid or made by an officer and shall not be called into question for lack of authority of the officer except by the Minister or a person acting for the Minister or for Her Majesty.

• Marginal note:Two or more offences

  (2) An information or complaint in respect of an offence under this Act may be for one or more offences and no information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is objectionable or insufficient by reason of the fact that it relates to two or more offences.

• Marginal note:Limitation of prosecutions

  (3) Despite subsection 786(2) of the Criminal Code, an information or complaint in respect of an offence under this Act that is to be prosecuted by way of summary conviction proceedings may be laid or made within two years after the day on which the matter of the information or complaint arose.

Proceeds of Crime

Marginal note:Property obtained from offences

• 230 (1) No person shall possess any property or any proceeds of any property knowing that all or any part of it was obtained or derived directly or indirectly as a result of

  • (a) the commission of an offence under section 214 or subsection 216(1), 218(1) or 231(1); or

  • (b) a conspiracy or an attempt to commit, being a party to, being an accessory after the fact in relation to, or any counselling in relation to, an offence referred to in paragraph (a).

• Marginal note:Punishment

  (2) Every person who contravenes subsection (1)

  • (a) is guilty of an indictable offence and liable to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both; or

  • (b) is guilty of an offence punishable on summary conviction and liable to a fine of not more than $100,000 or to imprisonment for a term of not more than 18 months, or to both.

• Marginal note:Exception

  (3) A peace officer or a person acting under the direction of a peace officer is not guilty of an offence under this section by reason only that the peace officer or person possesses property or the proceeds of property mentioned in subsection (1) for the purposes of an investigation or otherwise in the execution of the peace officer’s duties.

Marginal note:Laundering proceeds of certain offences

• 231 (1) No person shall use, transfer the possession of, send or deliver to any person or place, transport, transmit, alter, dispose of or otherwise deal with, in any manner or by any means, any property or any proceeds of any property with intent to conceal or convert that property or those proceeds, knowing that all or part of that property or those proceeds were obtained or derived directly or indirectly as a result of

  • (a) the commission of an offence under section 214 or subsection 216(1) or 218(1); or

  • (b) a conspiracy or an attempt to commit, being a party to, being an accessory after the fact in relation to, or any counselling in relation to, an offence referred to in paragraph (a).

• Marginal note:Punishment

  (2) Every person who contravenes subsection (1)

  • (a) is guilty of an indictable offence and liable to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both; or

  • (b) is guilty of an offence punishable on summary conviction and liable to a fine of not more than $100,000 or to imprisonment for a term of not more than 18 months, or to both.

• Marginal note:Exception

  (3) A peace officer or a person acting under the direction of a peace officer is not guilty of an offence under this section by reason only that the peace officer or person does any of the things mentioned in subsection (1) for the purposes of an investigation or otherwise in the execution of the peace officer’s duties.

Marginal note:Part XII.2 of Criminal Code applicable

• 232 (1) Sections 462.3 and 462.32 to 462.5 of the Criminal Code apply, with any modifications that the circumstances require, in respect of proceedings for an offence under section 214, subsection 216(1) or 218(1) or section 230 or 231.

• Marginal note:Reference to enterprise crime offence

  (2) For the purpose of subsection (1), the references in sections 462.37 and 462.38 and subsection 462.41(2) of the Criminal Code to an enterprise crime offence are deemed to include references to the offences referred to in subsection (1).

Penalties

Marginal note:Contravention of section 34 or 37

233 Every tobacco licensee who contravenes section 34 or 37 is liable to a penalty equal to 200% of the duty that was imposed on the tobacco product to which the contravention relates.

Marginal note:Contravention of section 38, 40, 41, 49, 61, 62.1, 99, 149 or 151

234 Every person who contravenes section 38, 40, 41, 49, 61, 62.1, 99, 149 or 151 is liable to a penalty of not more than $25,000.

Marginal note:Penalty for unauthorized export of raw leaf tobacco

235 Every tobacco grower who exports raw leaf tobacco without the written approval of the Minister or who fails to comply with a condition imposed by the Minister in respect of the export is liable to a penalty of not more than $25,000.

Marginal note:Diversion of black stock tobacco

• 236 (1) Every tobacco licensee or customs bonded warehouse licensee is liable to a penalty if manufactured tobacco on which duty was imposed under section 42 at a rate set out in paragraph 1(a), 2(a) or 3(a) of Schedule 1 is

  • (a) in the case of a tobacco licensee,

    • (i) delivered by the licensee other than to a duty free shop or customs bonded warehouse or to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations, or

    • (ii) exported by the licensee other than for delivery to a foreign duty free shop or as foreign ships’ stores; or

  • (b) in the case of a customs bonded warehouse licensee, delivered by the licensee other than to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations.

• Marginal note:Amount of penalty

  (2) The amount of the penalty is equal to 200% of the total of

  • (a) the amount by which

    • (i) the duty that would have been imposed under section 42 on the tobacco if the applicable rate of duty had been the rate set out in paragraph 1(b), 2(b) or 3(b) of Schedule 1

    exceeds

    • (ii) the duty that was imposed under section 42 on the tobacco, and

  • (b) the amount, if any, of special duty that was payable under paragraph 56(1)(b) in respect of the tobacco.

Marginal note:Diversion of non-duty-paid alcohol

• 237 (1) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty imposed on packaged alcohol that was removed from the warehouse of the licensee for a purpose described in section 147 if the alcohol is not delivered, exported or provided, as the case may be, for that purpose.

• Marginal note:Diversion of duty-free tobacco

  (2) Every tobacco licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the excise warehouse of the licensee for a purpose described in subsection 50(4), (7) or (8) if the product is not delivered or exported, as the case may be, for that purpose.

• Marginal note:Diversion of duty-free cigars

  (3) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on cigars manufactured in Canada that were removed from the excise warehouse of the licensee for a purpose described in subsection 50(9) if the cigars are not delivered for that purpose.

• Marginal note:Diversion of duty-free tobacco in special excise warehouse

  (4) Every special excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product manufactured in Canada that was removed from the special excise warehouse of the licensee for a purpose described in subsection 50(11) if the product is not delivered for that purpose.

• Marginal note:Diversion of imported tobacco

  (5) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on an imported tobacco product that was removed from the excise warehouse of the licensee for a purpose described in subsection 51(2) if the product is not delivered or exported, as the case may be, for that purpose.

• Marginal note:Exception

  (6) A licensee who would otherwise be liable to a penalty under this section is not liable if the licensee proves to the satisfaction of the Minister that the alcohol or tobacco product that was removed from their excise warehouse or special excise warehouse was returned to that warehouse.

Marginal note:Penalty in respect of unaccounted tobacco

238 Every excise warehouse licensee and every special excise warehouse licensee is liable to a penalty equal to 200% of the duty that was imposed on a tobacco product entered into their excise warehouse or special excise warehouse, as the case may be, if the licensee cannot account for the product

• (a) as being in the warehouse;

• (b) as having been removed from the warehouse in accordance with this Act; or

• (c) as having been destroyed by fire while kept in the warehouse.

Marginal note:Other diversions

239 Unless section 237 applies, every person is liable to a penalty equal to 200% of the duty that was imposed on packaged alcohol or a tobacco product if

• (a) it was acquired by the person and duty was not payable because of the purpose for which the person acquired it or because of its destination; and

• (b) it is sold or used for a purpose or sent to a destination in circumstances in which duty would have been payable if it had originally been acquired for that purpose or sent to that destination.

Marginal note:Contravention of subsection 50(5)

240 Every tobacco licensee who contravenes subsection 50(5) is liable to a penalty equal to the total of

• (a) $0.361448 per cigarette that was removed in contravention of that subsection,

• (b) $0.361448 per tobacco stick that was removed in contravention of that subsection, and

• (c) $207.704 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection.

Marginal note:Contravention of section 71

241 Every person who contravenes section 71 is liable to a penalty equal to 200% of the duty that was imposed on the bulk spirits to which the contravention relates.

Marginal note:Contravention of section 72

242 Every person who contravenes section 72 is liable to a penalty equal to $1.24 per litre of wine to which the contravention relates.

Marginal note:Contravention of section 73, 74 or 90

• 243 (1) Unless section 239, 241, 242 or 243.1 or subsection (2) applies, every person who contravenes section 73, 74 or 90 is liable to a penalty equal to

  • (a) if the contravention relates to spirits, 200% of the duty that was imposed on the spirits; or

  • (b) if the contravention relates to wine, $1.24 per litre of that wine.

• Marginal note:Contravention of section 73 or 90 by licensed user

  (2) Every licensed user who exports, gives possession of or takes for use alcohol in contravention of section 73 or 90 is liable to a penalty equal to

  • (a) if the contravention relates to spirits, the duty that was imposed on the spirits; or

  • (b) if the contravention relates to wine, $0.62 per litre of that wine.

Marginal note:Contravention of section 76, 89 or 91

243.1 Every person who contravenes section 76, 89 or 91 is liable to a penalty equal to

• (a) if the contravention relates to spirits, the duty that was imposed on the spirits; or

• (b) if the contravention relates to wine, $0.62 per litre of that wine.

Marginal note:Spirits improperly used as DA or SDA

244 Every person who is required to export, return, dispose of or destroy an amount of spirits under paragraph 101(1)(a) or (b) or (2)(a) or (b) but is unable to do so because the amount has been used in the production of another product is liable to a penalty equal to the duty imposed under section 122 or levied under section 21.1 or subsection 21.2(1) of the Customs Tariff on the amount.

Marginal note:Contravention of section 78, 83 or 94

245 Every person who contravenes section 78, 83 or 94 is liable to a penalty equal to 100% of the duty that was imposed on the alcohol to which the contravention relates.

Marginal note:Contravention of section 81, 86, 92 or 93

246 Every person who contravenes section 81, 86, 92 or 93 is liable to a penalty equal to 50% of the duty that was imposed on the alcohol to which the contravention relates.

Marginal note:Unauthorized possession, etc., of SDA

247 Every person who contravenes any of sections 96 to 98, 100, 102 or 103 is liable to a penalty of $10 per litre of specially denatured alcohol to which the contravention relates.

Marginal note:Unauthorized possession, etc., of restricted formulation

247.1 Every person who contravenes section 93.1 or 93.2 is liable to a penalty of $10 per litre of restricted formulation to which the contravention relates.

Marginal note:Unauthorized removal of marked special container

248 Every excise warehouse licensee who removes a marked special container of alcohol from their excise warehouse for entry into the duty-paid market is liable to a penalty equal to 50% of the duty that was imposed on the alcohol in the container unless the container is marked for delivery to and use at a bottle-your-own premises and it is delivered to a bottle-your-own premises.

Marginal note:Contravention of section 154

249 Every excise warehouse licensee who contravenes section 154 is liable to a penalty equal to the total of