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Excise Act, 2001 (S.C. 2002, c. 22)

Full Document:  

Act current to 2019-07-01 and last amended on 2019-06-21. Previous Versions

PART 6Enforcement (continued)

Penalties (continued)

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

Marginal note:Contravention of section 71

 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

 Every person who contravenes section 72 is liable to a penalty equal to the number of litres of wine to which the contravention relates multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed.

  • 2002, c. 22, s. 242
  • 2006, c. 4, s. 46
  • 2017, c. 20, s. 55

Marginal note:Contravention of section 73, 74 or 90

  •  (1) Unless section 239, 241, 242 or 243.1 or subsection (2) applies, every person who contravenes section 73, 74 or 90 is liable to a penalty equal to

    • (a) if the contravention relates to spirits, 200% of the duty that was imposed on the spirits; or

    • (b) if the contravention relates to wine, the number of litres of that wine multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed.

  • Marginal note:Contravention of section 73 or 90 by licensed user

    (2) Every licensed user who exports, gives possession of or takes for use alcohol in contravention of section 73 or 90 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, the number of litres of that wine multiplied by the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed.

  • 2002, c. 22, s. 243
  • 2006, c. 4, s. 47
  • 2007, c. 18, s. 124
  • 2017, c. 20, s. 56

Marginal note:Contravention of section 76, 89 or 91

 Every person who contravenes section 76, 89 or 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, the number of litres of that wine multiplied by the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed.

  • 2007, c. 18, s. 124
  • 2017, c. 20, s. 57

Marginal note:Spirits improperly used as DA or SDA

 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

 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

 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

 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 possession, etc., of restricted formulation

 Every person who contravenes section 93.1 or 93.2 is liable to a penalty of $10 per litre of restricted formulation to which the contravention relates.

  • 2007, c. 18, s. 125

Marginal note:Unauthorized removal of marked special container

 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

 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

 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 answer demand

 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 $250.

  • 2002, c. 22, s. 251
  • 2006, c. 4, s. 119

Marginal note:Failure to file return

 Every person who fails to file a return for a reporting period as and when required under this Act shall pay a penalty equal to the sum of

  • (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the reporting period and was not paid before the end of the day on which the return was required to be filed, and

  • (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed.

  • 2006, c. 4, s. 119
  • 2010, c. 25, s. 120
 
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