Excise Act, 2001 (S.C. 2002, c. 22)

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Act current to 2018-07-05 and last amended on 2018-06-21. Previous Versions

Marginal note:Duty relieved — cannabis imported by licensee

 The duties imposed under sections 158.21 and 158.22 are relieved on

  • (a) a cannabis product that is not packaged and that is imported by a cannabis licensee; or

  • (b) a prescribed cannabis product, or a cannabis product of a prescribed class, that is imported by a prescribed person in prescribed circumstances or for a prescribed purpose.

  • 2018, c. 12, s. 73.
Marginal note:Duty relieved — prescribed circumstances

 The duties imposed under any of sections 158.19 to 158.22 and 158.27 are relieved on a prescribed cannabis product, or a cannabis product of a prescribed class, in prescribed circumstances or if prescribed conditions are met.

  • 2018, c. 12, s. 73.
Marginal note:Duty not payable

 Duty is not payable on

  • (a) a cannabis product that

    • (i) is taken for analysis or destroyed by the Minister,

    • (ii) is taken for analysis or destroyed by the Minister, as defined in subsection 2(1) of the Cannabis Act,

    • (iii) is taken for analysis by a cannabis licensee in a manner approved by the Minister,

    • (iv) is destroyed by a cannabis licensee in a manner approved by the Minister,

    • (v) is delivered by a cannabis licensee to another person for analysis or destruction by that person in a manner approved by the Minister,

    • (vi) is a low-THC cannabis product,

    • (vii) is a prescription cannabis drug, or

    • (viii) is a prescribed cannabis product or a cannabis product of a prescribed class;

  • (b) a non-duty-paid cannabis product that is removed from the premises of a cannabis licensee for export in accordance with the Cannabis Act; or

  • (c) a prescribed cannabis product, or a cannabis product of a prescribed class, that is delivered by a cannabis licensee to a prescribed person in prescribed circumstances or for a prescribed purpose.

  • 2018, c. 12, s. 73.
Marginal note:Quantity of cannabis

 For the purposes of determining an amount of duty in respect of a cannabis product under section 1 of Schedule 7, the following rules apply:

  • (a) the quantity of flowering material and non-flowering material included in the cannabis product or used in the production of the cannabis product is to be determined in a prescribed manner in prescribed circumstances; and

  • (b) if paragraph (a) does not apply in respect of the cannabis product,

    • (i) the quantity of flowering material and non-flowering material included in the cannabis product or used in the production of the cannabis product is to be determined at the time the flowering material and non-flowering material are so included or used and in a manner satisfactory to the Minister, and

    • (ii) if the quantity of flowering material included in the cannabis product or used in the production of the cannabis product is determined in accordance with subparagraph (i), the particular quantity of that flowering material that is industrial hemp by-product is deemed to be non-flowering material if that particular quantity is determined in a manner satisfactory to the Minister.

  • 2018, c. 12, s. 73.
Marginal note:Delivery to purchaser

 For the purposes of sections 158.19, 158.2 and 158.27 and for greater certainty, delivery to a purchaser includes

  • (a) delivering cannabis products, or making them available, to a person other than the purchaser on behalf of or under the direction of the purchaser;

  • (b) delivering cannabis products, or making them available, to a person that obtains them otherwise than by means of a purchase; and

  • (c) delivering cannabis products or making them available in prescribed circumstances.

  • 2018, c. 12, s. 73.
Marginal note:Time of delivery

 For the purposes of sections 158.19, 158.2 and 158.27, a cannabis product is deemed to be delivered to a purchaser by a cannabis licensee at the earliest of

  • (a) the time at which the cannabis licensee delivers the cannabis product or makes it available to the purchaser,

  • (b) the time at which the cannabis licensee causes physical possession of the cannabis product to be transferred to the purchaser, and

  • (c) the time at which the cannabis licensee causes physical possession of the cannabis product to be transferred to a carrier — being a person that provides a service of transporting goods including, for greater certainty, a service of delivering mail — for delivery to the purchaser.

  • 2018, c. 12, s. 73.
Marginal note:Dutiable amount

 For the purpose of section 2 of Schedule 7, the dutiable amount of a cannabis product is deemed to be equal to the fair market value of the cannabis product

  • (a) if the cannabis product is delivered or made available to a person that obtains it otherwise than by means of a purchase; or

  • (b) in prescribed circumstances.

  • 2018, c. 12, s. 73.

PART 5General Provisions Concerning Duty and Other Amounts Payable

Fiscal Periods

Marginal note:Determination of fiscal months
  •  (1) The fiscal months of a person other than a cannabis licensee 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:Fiscal months — cannabis licensee

    (1.01) For the purposes of this Act, the fiscal months of a cannabis licensee are calendar months.

  • Marginal note:Determination of fiscal half-years

    (1.1) The fiscal half-years of a person shall be determined in accordance with the following rules:

    • (a) the period beginning on the first day of the first fiscal month in a fiscal year of the person and ending on the earlier of the last day of the sixth fiscal month and the last day in the fiscal year is a fiscal half-year of the person; and

    • (b) the period, if any, beginning on the first day of the seventh fiscal month and ending on the last day in the fiscal year of the person is a fiscal half-year of the person.

  • 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.

  • 2002, c. 22, s. 159;
  • 2010, c. 25, s. 110;
  • 2018, c. 12, s. 74.

Reporting Periods

Marginal note:Reporting period — general
  •  (1) Subject to this section, the reporting period of a person is a fiscal month.

  • Marginal note:Reporting period — semi-annual

    (2) On application in the prescribed form and manner by a person, the Minister may, in writing, authorize the reporting period of that person to be a fiscal half-year in a particular fiscal year if

    • (a) the person is a licensee in one or more of the following categories:

      • (i) an excise warehouse licensee who does not hold in their excise warehouse manufactured tobacco or cigars,

      • (ii) a spirits licensee,

      • (iii) a wine licensee, or

      • (iv) a licensed user;

    • (b) the person has been licensed for a period exceeding twelve consecutive fiscal months;

    • (c) in respect of a category, the total of all duties payable under Part 4 by the person and any person associated with the person in the fiscal year ending immediately before the particular fiscal year did not exceed $120,000;

    • (d) in respect of a category, the total of all duties payable under Part 4 by the person and any person associated with the person in the particular fiscal year does not exceed $120,000;

    • (e) in the case where the person is an excise warehouse licensee, the liability of the person and any excise warehouse licensee associated with the person with respect to duty on alcohol entered into an excise warehouse

      • (i) did not exceed $120,000 in the fiscal year ending immediately before the particular fiscal year, and

      • (ii) does not exceed $120,000 in the particular fiscal year;

    • (f) in the case where the person is a licensed user, the liability of the person and any licensed user associated with the person with respect to duty on alcohol entered into their specified premises

      • (i) did not exceed $120,000 in the fiscal year ending immediately before the particular fiscal year, and

      • (ii) does not exceed $120,000 in the particular fiscal year;

    • (g) the volume of absolute ethyl alcohol added to the bulk spirits inventory of the person that is a spirits licensee and any spirits licensee associated with the person did not exceed in the fiscal year ending immediately before the particular fiscal year, and does not exceed in the particular fiscal year, the amount determined by the formula

      A / B

      where

      A
      is $120,000, and
      B
      is the rate of duty on spirits set out in section 1 of Schedule 4;
    • (h) the volume of wine added to the bulk wine inventory of the person that is a wine licensee and any wine licensee associated with the person did not exceed in the fiscal year ending immediately before the particular fiscal year, and does not exceed in the particular fiscal year, the amount determined by the formula

      A / B

      where

      A
      is $120,000, and
      B
      is the rate of duty on wine set out in paragraph (c) of Schedule 6; and
    • (i) the person is in compliance with the Act.

  • Marginal note:Deemed revocation

    (3) An authorization under subsection (2) is deemed to be revoked if

    • (a) any of the conditions described in paragraphs (2)(d) to (h) is no longer met in respect of the person, which revocation is effective as of the first day after the end of the fiscal half-year in which the condition is no longer met; or

    • (b) an excise warehouse licensee holds in their excise warehouse manufactured tobacco or cigars, which revocation is effective as of the first day of the fiscal month in which the licensee begins to hold the tobacco or cigars.

  • Marginal note:Revocation — other

    (4) The Minister may revoke an authorization if

    • (a) the person requests in writing the Minister to do so;

    • (b) the person fails to comply with the Act; or

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

  • Marginal note:Notice of revocation

    (5) If the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the person and shall specify in the notice the fiscal month for which the revocation becomes effective.

  • Marginal note:Deemed reporting period on revocation

    (6) If a revocation under paragraph (3)(b) or subsection (4) becomes effective before the last day of a fiscal half-year of a person that is authorized under subsection (2), the period beginning on the first day of the fiscal half-year and ending immediately before the first day of the fiscal month for which the revocation becomes effective is deemed to be a reporting period of the person.

  • 2010, c. 25, s. 111.
 
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