Excise Act, 2001 (S.C. 2002, c. 22)

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 or exported, 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) $0.25995 per cigarette that was removed in contravention of that subsection,

• (b) $0.159966 per tobacco stick that was removed in contravention of that subsection, and

• (c) $149.966 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 $1.0244 per litre of wine to which the contravention relates.

Marginal note:Contravention of section 73, etc.

243. Every person who contravenes any of sections 73, 76 or 89 to 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, $0.5122 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 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

• (a) $1,000, and

• (b) 50% of the duty that was imposed on the alcohol supplied in contravention of that section.

Marginal note:Failure to comply

250. Every person is liable to a penalty of not more than $25,000 if the person fails to comply with

• (a) section 206 or 207;

• (b) a requirement in a notice referred to in section 208 or 210;

• (c) a condition or requirement of a licence or registration issued to the person under this Act;

• (d) a condition or restriction imposed under section 143; or

• (e) the regulations.

Marginal note:Failure to file return

251. Every person who does not file a return as and when required under a demand issued under section 169 is liable to a penalty equal to the greater of

• (a) $250, and

• (b) 5% of the amount of duty payable by the person for the period designated in the demand that was unpaid on the day that the return was due.

Marginal note:Failure to provide information

252. Every person who fails to provide any information or record as and when required under this Act is liable to a penalty of $100 for every failure unless, in the case of information required in respect of another person, a reasonable effort was made by the person to obtain the information.

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 fiscal month 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 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: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.