Marginal note:2000, c. 30, s. 3(1)

• 19. (1) Subsection 23.21(2) of the Act is replaced by the following:

  • Marginal note:Exemption for limited exports

    (2) The excise tax imposed under subsection 23.2(1) is not payable by a manufacturer or producer in respect of a particular quantity of a category of tobacco product exported at a time in a calendar year if the total quantity of that category of tobacco product exported by the manufacturer or producer in the calendar year up to and including that time, plus the particular quantity, does not exceed 1 1/2% of the total quantity of that category of tobacco product manufactured or produced by the manufacturer or producer in the preceding calendar year.

• (2) Section 23.21 of the Act, as amended by subsection (1), is repealed.

• (3) Subsection (1) is deemed to have come into force on April 1, 2000, except that, in applying subsection 23.21(2) of the Act, as enacted by subsection (1), before January 2001, the reference in that subsection to “1 1/2%” shall be read as a reference to “1 3/4%”.

• (4) Subsection (2) is deemed to have come into force on April 6, 2001.

Marginal note:1997, c. 26, s. 60(1)

• 20. (1) Section 23.22 of the Act is repealed.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:1993, c. 25, s. 56

• 21. (1) The portion of subsection 23.3(1) of the Act before paragraph (a) is replaced by the following:

  Marginal note:Exemption for prescribed tobacco product

  • 23.3 (1) The excise tax imposed under section 23.13 is not payable in the case of a tobacco product of a particular brand that is manufactured or produced in Canada and exported from Canada, if

• Marginal note:1993, c. 25, s. 56

  (2) The portion of subsection 23.3(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Exemption for prescribed cigarettes

    (2) The excise tax imposed under section 23.13 is not payable in the case of cigarettes of a particular type or formulation, manufactured or produced in Canada and exported under a brand that is also applied to cigarettes of a different type or formulation that are manufactured or produced in Canada and sold in Canada, if

• (3) Subsections (1) and (2) are deemed to have come into force on April 6, 2001.

Marginal note:1994, c. 29, s. 6(1); 1997, c. 26, s. 61; 2000, c. 30, s. 4

• 22. (1) Section 23.31 of the Act is replaced by the following:

  Marginal note:Tax on cigarettes sold to purchaser not authorized to resell in Ontario

  • 23.31 (1) An excise tax shall be imposed, levied and collected on cigarettes that are

    • (a) marked or stamped in accordance with a statute of the Province of Ontario to indicate that they are intended for retail sale in the province; and

    • (b) sold by their manufacturer or producer, or by a person who is authorized under a statute of the province to sell cigarettes in the province, to a purchaser who is not authorized under a statute of the province to sell cigarettes in the province.

  • Marginal note:Where tax not imposed

    (2) Tax shall not be imposed under subsection (1) if the purchaser referred to in that subsection is a consumer in the Province of Ontario and the purchase is for consumption by the purchaser or by others at the expense of the purchaser.

  • Marginal note:When and by whom tax is payable

    (3) The tax imposed under subsection (1) is payable by the person selling the cigarettes to the purchaser referred to in that subsection and is payable at the time of the sale.

  • Marginal note:Amount of tax

    (4) The tax imposed on cigarettes under subsection (1) is equal to the amount by which

    • (a) the excise tax that would have been imposed under section 23 in respect of the cigarettes if the applicable rate of excise tax had been the rate set out in paragraph 1(f) of Schedule II

    exceeds

    • (b) the excise tax that was imposed under section 23 in respect of the cigarettes.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:1997, c. 26, s. 62(2); 2000, c. 30, ss. 5(1) and (2)(F)

• 23. (1) Subsections 23.32(1) and (2) of the Act are replaced by the following:

  Marginal note:Tax on cigarettes sold to purchaser not authorized to resell in Quebec

  • 23.32 (1) An excise tax shall be imposed, levied and collected on cigarettes that are

    • (a) marked or stamped in accordance with a statute of the Province of Quebec to indicate that they are intended for retail sale in that province; and

    • (b) sold by their manufacturer or producer, or by a person who is authorized under a statute of the province to sell manufactured tobacco in the province, to a purchaser who is not authorized under a statute of the province to sell manufactured tobacco in the province.

  • Marginal note:Where tax not imposed

    (2) Tax shall not be imposed under subsection (1) if the purchaser referred to in that subsection is a consumer located in the Province of Quebec and the purchase is for consumption by the purchaser or by others at the expense of the purchaser.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:1994, c. 29, s. 6(1); 1995, c. 36, ss. 2, 3(1) and 4; 1997, c. 26, ss. 63 and 64; 2000, c. 30, ss. 6(2) and 7(1), (2)(F) and (3) and par. 140(1)(a)

• 24. (1) Sections 23.33 to 23.341 of the Act are repealed.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:2000, c. 30, s. 8(1)

• 25. (1) Subsections 23.35(2) and (3) of the Act are replaced by the following:

  • Marginal note:Tax on excess sale of black stock cigarettes

    (2) If a supplier sells to an on-reserve retailer a quantity of black stock cigarettes in respect of which subparagraph 1(a)(ii) of Schedule II applies that exceeds the quantity of black stock cigarettes that the on-reserve retailer is authorized under the Tobacco Tax Act, R.S.O. 1990, c. T.10, to purchase, an excise tax shall be imposed, levied and collected on those excess cigarettes.

  • Marginal note:Tax on illegal sale of black stock cigarettes

    (3) If a supplier sells to a person, other than an Indian consumer in Ontario or an on-reserve retailer, black stock cigarettes in respect of which subparagraph 1(a)(ii) of Schedule II applies, an excise tax shall be imposed, levied and collected on those cigarettes.

• Marginal note:1994, c. 29, s. 6(1); 2000, c. 30, s. 8(2)

  (2) Subsection 23.35(5) of the Act is replaced by the following:

  • Marginal note:Amount of tax

    (5) The tax imposed on black stock cigarettes under subsection (2) or (3) is equal to the amount by which

    • (a) the excise tax that would have been imposed under section 23 in respect of those cigarettes if the applicable rate of excise tax had been the rate set out in paragraph 1(f) of Schedule II

    exceeds

    • (b) the excise tax that was imposed under section 23 in respect of those cigarettes.

• (3) Subsections (1) and (2) are deemed to have come into force on April 6, 2001.

Marginal note:1994, c. 29, s. 6(1); 1997, c. 26, s. 66; 2000, c. 30, paras. 140(1)(b) and (c)

• 26. (1) Section 23.36 of the Act is repealed.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:1994, c. 29, s. 7(1); 1995, c. 36, s. 6; 1997, c. 26, ss. 67(1) and 68; 1998, c. 21, s. 81(1); 2000, c. 30, s. 13 and paras. 140(1)(a), (d) and (e)

• 27. (1) Sections 68.161 to 68.169 of the Act are repealed.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

• 28. (1) The Act is amended by adding the following after section 68.17:

  Marginal note:Rebate of tax to importer if foreign taxes paid

  • 68.171 (1) The Minister may pay, to a person who has imported into a foreign country tobacco products (as defined in section 23.1) that were manufactured or produced in Canada and exported in bond by their manufacturer or producer to the foreign country in accordance with subparagraph 58.1(3)(a)(i) and paragraph 58.1(3)(b) of the Excise Act, a rebate determined in accordance with subsection (2) in respect of the products if

    • (a) the person provides evidence satisfactory to the Minister that

      • (i) all taxes and duties imposed on the products under the laws of the foreign country having national application have been paid, and

      • (ii) the products were marked in accordance with section 202 of the Excise Act; and

    • (b) the person applies to the Minister for the rebate within two years after the products were exported to the foreign country.

  • Marginal note:Determination of rebate

    (2) The amount of the rebate 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 products, and

    • (b) the amount of the tax imposed under subsection 23.13(1) in respect of the tobacco products that is paid by their manufacturer or producer.

  • Marginal note:Overpayment of rebate or interest

    (3) If an amount has been paid to a person as a rebate under subsection (1) in respect of tobacco products exported by their manufacturer or producer or as interest in respect of such a rebate and tax under subsection 23.13(2) was imposed in respect of those products, the amount is deemed to be an amount of tax payable under Part III by the manufacturer or producer that became payable on the last day of the first month following that in which the amount was paid to the person.

  • Marginal note:Refund of tax to manufacturer if foreign taxes paid

    (4) If a rebate under subsection (1) has been paid in respect of exported tobacco products, the Minister may refund to the manufacturer or producer of the products the amount, if any, by which the tax imposed under subsection 23.13(1) in respect of the products and paid by the manufacturer or producer exceeds the amount of the rebate if the manufacturer or producer applies to the Minister for the refund within two years after the tobacco products were exported.

  Marginal note:Refund of tax to operator of duty free shop

  • 68.172 (1) Subject to subsection (2), if the operator of a duty free shop provides evidence satisfactory to the Minister that the operator has sold imported tobacco products (as defined in section 23.1) in accordance with the regulations made under the Customs Act to an individual who is not a resident of Canada and that the products were exported at any time, the Minister may refund to the operator the tax paid under section 23.12 in respect of that portion of the total quantity of the products sold by the operator to the individual and exported at that time 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 grams.

  • Marginal note:Application

    (2) No refund shall be paid under subsection (1) to the operator of a duty free shop in respect of a sale of tobacco unless the operator applies to the Minister for the refund within two years after the sale.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

• 29. (1) Section 68.18 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Exception for tobacco products

    (3.1) Subsection (2) does not apply in respect of taxes imposed under Part III on tobacco products mentioned in Schedule II.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:1994, c. 29, s. 8(1)

• 30. (1) Subsections 72(2) and (3) of the Act are replaced by the following:

  • Marginal note:Form and contents of application

    (2) An application shall be made in the prescribed form and contain the prescribed information.

  • Marginal note:Filing of application

    (3) An application shall be filed with the Minister in any manner that the Governor in Council may, by regulation, prescribe.

• Marginal note:1994, c. 29, s. 8(2)

  (2) Subsection 72(7) of the Act is replaced by the following:

  • Marginal note:Interest on payment

    (7) If an amount is paid to an applicant under subsection (6), interest at the prescribed rate shall be paid in respect of each day between the day that is sixty days after the day on which the application was received by the Minister and the day on which the payment is sent, and compounded monthly on the total amount of the payment and interest outstanding.

• (3) Subsections (1) and (2) are deemed to have come into force on April 6, 2001.

Marginal note:1997, c. 26, s. 69(1)

• 31. (1) Subsection 74(1) of the Act is replaced by the following:

  Marginal note:Deductions of tax, other than Part I tax, where application

  • 74. (1) In lieu of making a payment, other than a payment in respect of Part I, pursuant to an application under any of sections 68 to 68.11 or 68.17 to 69, the Minister may, on request of the applicant, authorize the applicant to deduct, on such terms and conditions and in such manner as the Minister may specify, the amount that would otherwise be paid to the applicant from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in a return under section 78 by the applicant.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:R.S., c. 15 (1st Supp.), s. 26(1), c. 7 (2nd Supp.), s. 35(1)

• 32. (1) Subsections 78(1) and (2) of the Act are replaced by the following:

  Marginal note:Monthly returns

  • 78. (1) Every person who is required to pay tax under Part III or IV shall make each month a return in the prescribed form containing prescribed information of all amounts that became payable by the person on account of that tax in the preceding month.

  • Marginal note:Nil returns

    (2) Every person who holds a licence granted under or in respect of Part III or IV and whose tax payable under Parts III and IV in the preceding month is nil shall make a return as required by subsection (1) reporting that fact.

• Marginal note:R.S., c. 12 (4th Supp.), s. 31(1)

  (2) Paragraph 78(3)(c) of the Act is replaced by the following:

  • (c) authorize any person whose activities that give rise to tax payable by the person under Part III or IV are predominantly limited to a seasonal period of operation to make a return in respect of any period longer than one month but not longer than six months, if the total tax payable by the person under Parts III and IV for the equivalent period in the preceding calendar year did not exceed an average of four hundred dollars per month throughout that equivalent period.

• Marginal note:R.S., c. 15 (1st Supp.), s. 26(1)

  (3) Paragraph 78(4)(a) of the Act is replaced by the following:

  • (a) in a case where the return is required to be made in a month in accordance with subsection (1) or (2), not later than the last day of that month;

• (4) Subsections (1) to (3) are deemed to have come into force on April 6, 2001.

Marginal note:1994, c. 29, s. 9(1)

• 33. (1) Subsections 81.38(8) and (8.1) of the Act are replaced by the following:

  • Marginal note:Interest on refunds

    (8) If a payment is made under subsection (1) or (4) in respect of an application under any of sections 68 to 69, interest at the prescribed rate shall be paid, in respect of each day between the day that is sixty days after the day on which the application was received by the Minister and the day on which the payment was sent, and compounded monthly on the total amount of the payment and interest outstanding.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.