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Excise Act, 2001 (S.C. 2002, c. 22)

Full Document:  

Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART 6Enforcement (continued)

Proceeds of Crime (continued)

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 section 4 of Schedule 7, as that section 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.

  • 2018, c. 12, s. 84, c. 27, s. 67

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 section 4 of Schedule 7, as that section 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.

  • 2018, c. 12, s. 86, c. 27, s. 68

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 paragraph 1(a) of Schedule 7,

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

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

  • 2010, c. 12, s. 44
  • 2018, c. 12, s. 87
 
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