Excise Act, 2001 (S.C. 2002, c. 22)

Act current to 2017-11-20 and last amended on 2017-06-22. Previous Versions

Marginal note:Person not responsible

 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

 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

 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

 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
  •  (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

 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:Definitions
  •  (1) The following definitions apply in this section.

    inflationary adjusted year

    inflationary adjusted year means 2018 and every year after that year. (année inflationniste)

    reference year

    reference year means a 12-month period that begins on April 1 of a year and ends on March 31 of the following year. (année de référence)

  • Marginal note:Annual adjustments

    (2) Each rate of duty set out in Schedule 4 applicable in respect of a litre of absolute ethyl alcohol or in respect of a litre of spirits is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

    • (a) the rate determined by the formula

      A × B

      where

      A
      is the rate of duty applicable to the litre of absolute ethyl alcohol or the litre of spirits, as the case may be, on March 31 of the inflationary adjusted year, and
      B
      is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

      C/D

      where

      C
      is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and
      D
      is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and
    • (b) the rate of duty referred to in the description of A in paragraph (a).

  • Marginal note:Rounding

    (3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

  • Marginal note:Consumer Price Index

    (4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

    • (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period;

    • (b) dividing the aggregate obtained under paragraph (a) by 12; and

    • (c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

  • Marginal note:Application of adjusted rate

    (5) If duties on spirits are imposed in a reference year but become payable in another reference year that begins in an inflationary adjusted year, those duties are determined at the rate of duty as adjusted under subsection (2) on the first day of the other reference year.

  • 2017, c. 20, s. 49.
Marginal note:Duty payable when packaged
  •  (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

 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

 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
  •  (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

 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
  •  (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.

 
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