Excise Act, 2001 (S.C. 2002, c. 22)

Marginal note:False statements or omissions

253 Every person who knowingly, or under circumstances amounting to gross negligence, makes, or participates in, assents to or acquiesces in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in this section referred to as a “return”) made in respect of a reporting period or activity is liable to a penalty equal to the greater of $250 and 25% of the total of

• (a) if the false statement or omission is relevant to the determination of an amount of duty payable by the person, the amount, if any, by which

  • (i) that duty payable

  exceeds

  • (ii) the amount that would be the duty payable by the person if the duty were determined on the basis of the information provided in the return; and

• (b) if the false statement or omission is relevant to the determination of a refund or any other payment that may be obtained under this Act, the amount, if any, by which

  • (i) the amount that would be the refund or other payment payable to the person if the refund or other payment were determined on the basis of the information provided in the return

  exceeds

  • (ii) the amount of the refund or other payment payable to the person.

Penalty Imposition

Marginal note:Notice of imposed penalty

• 254 (1) A penalty that a person is liable to pay under any of sections 233 to 253, other than section 251.1, may be imposed by the Minister by serving on the person a written notice of the imposed penalty or by sending the notice by registered or certified mail to the person’s last known address.

• Marginal note:Penalty is in addition to other sanction

  (2) A penalty may be imposed in addition to a seizure or forfeiture of a thing or the suspension or cancellation of a licence or registration under this Act that arises from the same event as the contravention in respect of which the penalty is imposed.

Marginal note:When penalty becomes payable

255 The amount of a penalty imposed on a person under section 254 is payable by the person to the Receiver General at the time it is imposed.

Marginal note:Waiving or reducing failure to file penalty

255.1 The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or reduce any penalty payable by the person under section 251.1 in respect of a return for the reporting period.

Marginal note:Interest on penalty during review period

256 Despite subsection 170(1), if a request is made under subsection 271(1) for a decision of the Minister in respect of a penalty imposed under section 254, no interest is payable in respect of the penalty for the period beginning on the day on which the request is made and ending on the day on which the Minister gives notice of the decision under subsection 273(2) or, if the decision is appealed to the Federal Court under section 276, the day on which the appeal is resolved.

Marginal note:Review of imposed penalty

257 The debt due to Her Majesty as a result of a penalty imposed under section 254 is final and not subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided under this Act.

Search Warrants

Marginal note:Information for search warrant

• 258 (1) A judge may at any time issue a warrant signed by the judge authorizing an officer to search a building, receptacle or place for a thing and to seize it if the judge is satisfied by information on oath that there are reasonable grounds to believe that there will be found in the building, receptacle or place anything that there are reasonable grounds to believe will afford evidence in respect of a contravention under this Act.

• Marginal note:Form of search warrant

  (2) A warrant must refer to the contravention for which it is issued, identify the building, receptacle or place to be searched and be reasonably specific as to the thing to be searched for and seized.

• Marginal note:Endorsement of search warrant

  (3) If the building, receptacle or place is in a territorial division other than that in which the judge has jurisdiction, the judge may issue the warrant and the warrant may be executed in the other territorial division after it has been endorsed by a judge having jurisdiction in that territorial division.

• Marginal note:Effect of endorsement

  (4) An endorsement that is made on a warrant as provided for in subsection (3) is sufficient authority to the officers to whom it was originally directed, and to all officers within the jurisdiction of the judge by whom it is endorsed, to execute the warrant and to deal with the things seized in accordance with section 489.1 of the Criminal Code or as otherwise provided by law.

• Marginal note:Seizure of things not specified

  (5) An officer who executes a warrant may seize, in addition to the things mentioned in the warrant,

  • (a) anything by means of or in relation to which the officer believes on reasonable grounds that a provision of this Act has been contravened; or

  • (b) anything that the officer believes on reasonable grounds will afford evidence in respect of a contravention under this Act.

• Marginal note:Execution of search warrant

  (6) A warrant shall be executed during the period between 6:00 a.m. and 9:00 p.m. unless

  • (a) the judge is satisfied that there are reasonable grounds for it to be executed outside of that period;

  • (b) the reasonable grounds are included in the information; and

  • (c) the warrant authorizes that it be executed outside of that period.

• Marginal note:Operation of computer system and copying equipment

  (7) An officer authorized under this section to search a computer system for data may

  • (a) use or cause to be used any computer system at the building or place to search any data contained in or available to the computer system;

  • (b) use or cause to be used any equipment at the building or place to make a copy of the data and to render it in any form; and

  • (c) seize a copy or rendering made under paragraph (b) that may afford evidence in respect of a contravention under this Act.

• Marginal note:Duty of person in possession or control

  (8) Every person who is in possession or control of any building or place in respect of which a search described by subsection (7) is carried out shall, on presentation of the warrant, provide to the officer carrying out the search all assistance that is necessary to carry out the search.

• Marginal note:Application of section 490 of Criminal Code

  (9) Section 490 of the Criminal Code applies in respect of anything seized under this section.

• Marginal note:Extended meaning of judge

  (10) In this section and paragraph 262(2)(b), judge also means a justice who is authorized under the Criminal Code to issue a search warrant.

Marginal note:Warrant not necessary in exigent circumstances

259 An officer may exercise any of the powers referred to in subsection 258(1) without a warrant if the conditions for obtaining a warrant exist but by reason of exigent circumstances it would not be practical to obtain one.

Inspections

Marginal note:By whom

• 260 (1) An officer may, at all reasonable times, for any purpose related to the administration or enforcement of this Act, inspect, audit or examine the records, processes, property or premises of a person in order to determine whether that or any other person is in compliance with this Act.

• Marginal note:Powers of officer

  (2) Subject to subsection (3), the officer may, at all reasonable times, for any purpose related to the administration or enforcement of this Act

  • (a) enter any place in which the officer reasonably believes the person keeps records or carries on any activity to which this Act applies;

  • (b) stop a conveyance or direct that it be moved to a place where an inspection or examination may be performed;

  • (c) require any person to give the officer all reasonable assistance, to answer all proper questions relating to the administration or enforcement of this Act and

    • (i) to attend with the officer at a place designated by the officer, or by video-conference or by another form of electronic communication, and to answer the questions orally, and

    • (ii) to answer the questions in writing, in any form specified by the officer;

  • (d) open or cause to be opened any receptacle that the officer reasonably believes contains anything to which this Act applies;

  • (e) take samples of anything free of charge;

  • (f) seize anything by means of or in relation to which the officer reasonably believes this Act has been contravened; and

  • (g) require any person to give the officer all reasonable assistance with anything the officer is authorized to do under this Act.

• Marginal note:Prior authorization

  (3) If any place referred to in subsection (2) is a dwelling-house, the officer may not enter that dwelling-house without the consent of the occupant, except under the authority of a warrant issued under subsection (4).

• Marginal note:Warrant to enter dwelling-house

  (4) A judge may issue a warrant authorizing an officer to enter a dwelling-house subject to the conditions specified in the warrant if, on ex parte application by the Minister, a judge is satisfied by information on oath that

  • (a) there are reasonable grounds to believe that the dwelling-house is a place referred to in subsection (2);

  • (b) entry into the dwelling-house is necessary for any purpose relating to the administration or enforcement of this Act; and

  • (c) entry into the dwelling-house has been, or there are reasonable grounds to believe that entry will be, refused.

• Marginal note:Orders if entry not authorized

  (5) If the judge is not satisfied that entry into the dwelling-house is necessary for any purpose related to the administration or enforcement of this Act, the judge may, to the extent that access was or may be expected to be refused and that a record or property is or may be expected to be kept in the dwelling-house,

  • (a) order the occupant of the dwelling-house to provide an officer with reasonable access to any record or property that is or should be kept in the dwelling-house; and

  • (b) make any other order that is appropriate in the circumstances to carry out the purposes of this Act.

• Marginal note:Definition of dwelling-house

  (6) In this section, dwelling-house means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence, and includes

  • (a) a building within the curtilage of a dwelling-house that is connected to it by a doorway or by a covered and enclosed passageway; and

  • (b) a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as such a residence.

Marginal note:Custody of seized things

• 261 (1) An officer who seizes a thing under section 260 may retain custody of the thing or transfer custody of it to any person that the officer may designate.

• Marginal note:Retention of seized things

  (2) An officer may order that a thing seized under section 260 be retained or stored at the place from where it was seized and no person shall use, remove or dispose of the thing without the consent of the officer or other authorized person.

Marginal note:Copies of records

• 262 (1) A person who seizes, inspects, audits, examines or is provided a record under section 260 may make, or cause to be made, one or more copies of the record.

• Marginal note:Retention of records seized

  (2) No records that have been seized as evidence under section 260 shall be retained for a period of more than three months after the time of seizure unless, before the expiry of that period,

  • (a) the person from whom they were seized agrees to their further retention for a specified period;

  • (b) a judge is satisfied on application that, having regard to the circumstances, their further retention for a specified period is warranted and so orders; or

  • (c) judicial proceedings are instituted in which they may be required.

Marginal note:Officer must give notification of seizure

263 An officer who seizes a thing under section 260 shall, without delay,

• (a) report the circumstances of the seizure to the Commissioner; and

• (b) if the officer has evidence that a person may be entitled to make an application under section 278 in respect of the thing, take all reasonable measures to ensure that notification of the seizure is sent to that person at their last known address.

Return or Disposal of Things Seized

Marginal note:Certain things not to be returned

264 Despite any other provision of this Act, any alcohol, specially denatured alcohol, restricted formulation, raw leaf tobacco, excise stamp, tobacco product, cannabis product or vaping product that is seized under section 260 must not be returned to the person from whom it was seized or any other person unless it was seized in error.

Marginal note:Return if security provided

265 The Minister may, subject to this or any other Act of Parliament, return anything that has been seized under section 260 to the person from whom it was seized, or to any person authorized by that person, on receipt of security with a value equal to

• (a) the value of the thing at the time of its seizure as determined by the Minister; or

• (b) a lesser amount satisfactory to the Minister.

Marginal note:Dealing with things seized

• 266 (1) The Minister may sell, destroy or otherwise deal with anything seized under section 260.

• Marginal note:Excise stamps not to be sold

  (1.1) Despite subsection (1), the Minister shall not sell excise stamps that have been seized under section 260.

• Marginal note:Restriction

  (2) Subject to the regulations, the Minister may sell

  • (a) seized spirits or specially denatured alcohol only to a spirits licensee;

  • (b) seized wine only to a wine licensee;

  • (c) seized raw leaf tobacco or a seized tobacco product only to a tobacco licensee;

  • (d) a seized restricted formulation only to a licensed user;

  • (e) a seized cannabis product only to a cannabis licensee; and

  • (f) a seized vaping product only to a vaping product licensee.

• Marginal note:Payment of compensation

  (3) If a person would be entitled to the return of a thing if it were available to be returned, but it is not possible to return it, the person shall be paid

  • (a) if the thing was sold, the proceeds from the sale; and

  • (b) in any other case, the value of the thing at the time of its seizure as determined by the Minister.