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Excise Act, 2001 (S.C. 2002, c. 22)

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Act current to 2022-06-20 and last amended on 2022-06-09. Previous Versions

PART 6Enforcement (continued)

Offences and Punishment (continued)

Marginal note:Information or complaint

  •  (1) An information or complaint under this Act may be laid or made by any officer. If an information or complaint is purported to have been laid or made under this Act, it is deemed to have been laid or made by an officer and shall not be called into question for lack of authority of the officer except by the Minister or a person acting for the Minister or for Her Majesty.

  • Marginal note:Two or more offences

    (2) An information or complaint in respect of an offence under this Act may be for one or more offences and no information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is objectionable or insufficient by reason of the fact that it relates to two or more offences.

  • Marginal note:Limitation of prosecutions

    (3) Despite subsection 786(2) of the Criminal Code, an information or complaint in respect of an offence under this Act that is to be prosecuted by way of summary conviction proceedings may be laid or made within two years after the day on which the matter of the information or complaint arose.

Proceeds of Crime

Marginal note:Property obtained from offences

  •  (1) No person shall possess any property or any proceeds of any property knowing that all or any part of it was obtained or derived directly or indirectly as a result of

    • (a) the commission of an offence under section 214 or subsection 216(1), 218(1), 218.1(1) or 231(1); or

    • (b) a conspiracy or an attempt to commit, being a party to, being an accessory after the fact in relation to, or any counselling in relation to, an offence referred to in paragraph (a).

  • Marginal note:Punishment

    (2) Every person who contravenes subsection (1)

    • (a) is guilty of an indictable offence and liable to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both; or

    • (b) is guilty of an offence punishable on summary conviction and liable to a fine of not more than $100,000 or to imprisonment for a term of not more than 18 months, or to both.

  • Marginal note:Exception

    (3) A peace officer or a person acting under the direction of a peace officer is not guilty of an offence under this section by reason only that the peace officer or person possesses property or the proceeds of property mentioned in subsection (1) for the purposes of an investigation or otherwise in the execution of the peace officer’s duties.

  • 2002, c. 22, s. 230
  • 2018, c. 12, s. 81

Marginal note:Laundering proceeds of certain offences

  •  (1) No person shall use, transfer the possession of, send or deliver to any person or place, transport, transmit, alter, dispose of or otherwise deal with, in any manner or by any means, any property or any proceeds of any property with intent to conceal or convert that property or those proceeds, knowing that all or part of that property or those proceeds were obtained or derived directly or indirectly as a result of

    • (a) the commission of an offence under section 214 or subsection 216(1), 218(1) or 218.1(1); or

    • (b) a conspiracy or an attempt to commit, being a party to, being an accessory after the fact in relation to, or any counselling in relation to, an offence referred to in paragraph (a).

  • Marginal note:Punishment

    (2) Every person who contravenes subsection (1)

    • (a) is guilty of an indictable offence and liable to a fine of not more than $500,000 or to imprisonment for a term of not more than five years, or to both; or

    • (b) is guilty of an offence punishable on summary conviction and liable to a fine of not more than $100,000 or to imprisonment for a term of not more than 18 months, or to both.

  • Marginal note:Exception

    (3) A peace officer or a person acting under the direction of a peace officer is not guilty of an offence under this section by reason only that the peace officer or person does any of the things mentioned in subsection (1) for the purposes of an investigation or otherwise in the execution of the peace officer’s duties.

  • 2002, c. 22, s. 231
  • 2018, c. 12, s. 82

Marginal note:Part XII.2 of Criminal Code applicable

  •  (1) Sections 462.3 and 462.32 to 462.5 of the Criminal Code apply, with any modifications that the circumstances require, in respect of proceedings for an offence under section 214, subsection 216(1), 218(1) or 218.1(1) or section 230 or 231.

  • Marginal note:Reference to enterprise crime offence

    (2) For the purpose of subsection (1), the references in sections 462.37 and 462.38 and subsection 462.41(2) of the Criminal Code to an enterprise crime offence are deemed to include references to the offences referred to in subsection (1).

  • 2002, c. 22, s. 232
  • 2018, c. 12, s. 83

Penalties

Marginal note:Contravention of section 34 or 37

 Every tobacco licensee who contravenes section 34 or 37 is liable to a penalty equal to 200% of the duty that was imposed on the tobacco product to which the contravention relates.

Marginal note:Contravention of section 158.13

 Every cannabis licensee that contravenes section 158.13 is liable to a penalty equal to the amount determined by the formula

(A + B + C) × 200%

where

A
is the greater of
  • (a) the amount determined under section 1 of Schedule 7, as that section read at the time the contravention occurred, in respect of the cannabis products to which the contravention relates, and

  • (b) the amount obtained by multiplying the fair market value, at the time the contravention occurred, of the cannabis products to which the contravention relates by the percentage set out in paragraph 4(a) of Schedule 7, as that paragraph read at that time;

B
is
  • (a) if the contravention occurred in a specified province, 300% of the amount determined for A, and

  • (b) in any other case, 0; and

C
is
  • (a) if the contravention occurred in a prescribed specified province, 200% of the amount determined for paragraph (b) of the description of A, and

  • (b) in any other case, 0.

Marginal note:Contravention of section 38, 40, 49, 61, 62.1, 99, 149, 151 or 158.15

  •  (1) Every person that contravenes section 38, 40, 49, 61, 62.1, 99, 149, 151 or 158.15 is liable to a penalty of not more than $25,000.

  • Marginal note:Failure to comply

    (2) Every person who fails to return or destroy stamps as directed by the Minister under paragraph 25.5(b), or who fails to re-work or destroy a tobacco product in the manner authorized by the Minister under section 41, is liable to a penalty of not more than $25,000.

  • Marginal note:Failure to comply

    (3) Every person that fails to return or destroy stamps as directed by the Minister under paragraph 158.07(b), or that fails to re-work or destroy a cannabis product in the manner authorized by the Minister under section 158.16, is liable to a penalty of not more than $25,000.

  • 2002, c. 22, s. 234
  • 2007, c. 18, s. 121
  • 2010, c. 12, s. 43
  • 2018, c. 12, s. 85

Marginal note:Contravention of section 158.02, 158.1, 158.11 or 158.12

 Every person that contravenes section 158.02, that receives for sale cannabis products in contravention of section 158.1 or that sells or offers to sell cannabis products in contravention of section 158.11 or 158.12 is liable to a penalty equal to the amount determined by the formula

(A + B + C) × 200%

where

A
is the greater of
  • (a) the amount determined under section 1 of Schedule 7, as that section read at the time the contravention occurred, in respect of the cannabis products to which the contravention relates, and

  • (b) the amount obtained by multiplying the fair market value, at the time the contravention occurred, of the cannabis products to which the contravention relates by the percentage set out in paragraph 4(a) of Schedule 7, as that paragraph read at that time;

B
is
  • (a) if the contravention occurred in a specified province, 300% of the amount determined for A, and

  • (b) in any other case, 0; and

C
is
  • (a) if the contravention occurred in a prescribed specified province, 200% of the amount determined for paragraph (b) of the description of A, and

  • (b) in any other case, 0.

Marginal note:Penalty for unauthorized export of raw leaf tobacco

 Every tobacco grower who exports raw leaf tobacco without the written approval of the Minister or who fails to comply with a condition imposed by the Minister in respect of the export is liable to a penalty of not more than $25,000.

 [Repealed, 2014, c. 20, s. 77]

Marginal note:Diversion of non-duty-paid alcohol

  •  (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, exported or provided, 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.

  • 2002, c. 22, s. 237
  • 2007, c. 18, s. 123

Marginal note:Penalty in respect of unaccounted tobacco

 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:Penalty in respect of unaccounted excise stamps

  •  (1) Every person who is issued excise stamps is liable to a penalty if the person cannot account for the stamps as being in their possession unless

    • (a) the person can demonstrate that the stamps were affixed to tobacco products, cannabis products or their containers in the manner prescribed for the purposes of the definition stamped in section 2 and that duty, other than special duty, has been paid on the tobacco products or cannabis products; or

    • (b) in the case of stamps that were cancelled, the person can demonstrate that the stamps were returned or destroyed as directed by the Minister.

  • Marginal note:Amount of the penalty

    (2) The amount of the penalty for each excise stamp that cannot be accounted for is equal to

    • (a) in the case of a tobacco excise stamp, the duty that would be imposed on a tobacco product for which the stamp was issued under subsection 25.1(1); or

    • (b) in the case of a cannabis excise stamp, five times the total of the following amounts:

      • (i) the dollar amount set out in subparagraph 1(a)(i) of Schedule 7,

      • (ii) if the stamp is in respect of a specified province, three times the dollar amount set out in subparagraph 1(a)(i) of Schedule 7, and

      • (iii) if the stamp is in respect of a prescribed specified province, $5.00.

Marginal note:Other diversions

 Unless section 237 applies, every person is liable to a penalty equal to 200% of the duty that was imposed on packaged alcohol, a tobacco product or a cannabis 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.

  • 2002, c. 22, s. 239
  • 2018, c. 12, s. 88

Marginal note:Contravention of subsection 50(5)

 Every tobacco licensee who contravenes subsection 50(5) is liable to a penalty equal to the total of

  • (a) in the case of cigarettes, the number of cigarettes that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

    (A/5 + B) × 2

    where

    A
    is the rate of duty set out in section 1 of Schedule 1 that applied at the time the cigarettes were removed, and
    B
    is the rate of duty set out in paragraph 4(a) of Schedule 3 that applied at the time the cigarettes were removed,
  • (b) in the case of tobacco sticks, the number of tobacco sticks that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

    (C + D) × 2

    where

    C
    is the rate of duty set out in section 2 of Schedule 1 that applied at the time the tobacco sticks were removed, and
    D
    is the rate of duty set out in paragraph 4(b) of Schedule 3 that applied at the time the tobacco sticks were removed, and
  • (c) in the case of manufactured tobacco other than cigarettes and tobacco sticks, the number of kilograms of manufactured tobacco that were removed in contravention of that subsection multiplied by the amount, rounded to the nearest one-hundredth, or, if the amount is equidistant from two consecutive one-hundredths, rounded to the higher one-hundredth, determined by the formula

    (E + F) × 40

    where

    E
    is the rate of duty set out in section 3 of Schedule 1 that applied at the time the manufactured tobacco was removed, and
    F
    is the rate of duty set out in paragraph 4(c) of Schedule 3 that applied at the time the manufactured tobacco was removed.
  • 2002, c. 22, s. 240
  • 2003, c. 15, s. 46
  • 2006, c. 4, s. 36
  • 2007, c. 35, s. 203
  • 2008, c. 28, s. 62
  • 2013, c. 33, s. 55
  • 2014, c. 20, s. 78
  • 2017, c. 20, s. 54
  • 2018, c. 12, s. 53
 
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