Excise Tax Act (R.S.C., 1985, c. E-15)

Regulations

Marginal note:Regulations

21.34 The Governor in Council may make regulations

• (a) respecting the method for determining the reasonable amount charged for a taxable service for the purposes of section 21.25; and

• (b) generally for carrying out the purposes and provisions of this Part.

PART IIIExcise Taxes on Cosmetics, Jewellery, Radios, Etc.

Marginal note:Definitions

• 22 (1) In this Part,

  duty paid value

  duty paid value means the value of the article as it would be determined for the purpose of calculating an ad valorem duty on the importation of that article into Canada under the laws relating to the customs and the Customs Tariff whether that article is in fact subject to ad valorem or other duty or not, plus the amount of the customs duties, if any, payable thereon; (valeur à l’acquitté)

  licensed wholesaler

  licensed wholesaler has the meaning assigned to that expression by section 42; (marchand en gros titulaire de licence)

  sale price

  sale price, for the purpose of determining the excise tax payable under this Part, means the aggregate of

  • (a) the amount charged as price before any amount payable in respect of any other tax under this Act is added thereto,

  • (b) any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale in addition to the amount charged as price, whether payable at the same or any other time, including, without limiting the generality of the foregoing, any amount charged for, or to make provision for, advertising, financing, servicing, warranty, commission or any other matter, and

  • (c) the amount of excise duties payable under the Excise Act whether the goods are sold in bond or not. (prix de vente)

• Marginal note:Calculation of sale price and duty paid value

  (2) For the purpose of determining the excise tax payable under this Part

  • (a) in calculating the sale price of goods manufactured or produced in Canada, there shall be included the amount charged as price for or in respect of the wrapper, package, box, bottle or other container in which the goods are contained; and

  • (b) in calculating the duty paid value of imported goods that, when imported, are wrapped, packaged, put up in boxes or bottles or otherwise prepared for sale, there shall be added to the value of the goods as determined in the manner prescribed in this Part the value, similarly determined, of the wrapper, package, box, bottle or other container in which the goods are contained.

Marginal note:Tax on various articles at schedule rates

• 23 (1) Subject to subsections (6) to (8), whenever goods mentioned in Schedule I are imported or are manufactured or produced in Canada and delivered to a purchaser of those goods, there shall be imposed, levied and collected, in addition to any other duty or tax that may be payable under this or any other law, an excise tax in respect of the goods at the applicable rate set out in the applicable section of that Schedule, computed, if that rate is specified as a percentage, on the duty paid value or the sale price, as the case may be.

• Marginal note:By whom and when tax is payable

  (2) Where goods are imported, the excise tax imposed by subsection (1) shall be paid in accordance with the provisions of the Customs Act by the importer, owner or other person liable to pay duties under that Act, and where goods are manufactured or produced and sold in Canada, the excise tax shall be payable by the manufacturer or producer at the time of delivery of the goods to the purchaser thereof.

• Marginal note:Deemed sale and delivery to purchaser

  (3) For the purposes of subsection (2),

  • (a) where gasoline or diesel fuel is delivered to a retail outlet by or on behalf of the manufacturer or producer thereof, the gasoline or diesel fuel shall be deemed to have been sold and delivered to a purchaser thereof; and

  • (b) where gasoline, diesel fuel or aviation fuel was, immediately prior to March 1, 1987, held in inventory by or on behalf of a person described in paragraph (e) of the definition manufacturer or producer in subsection 2(1) as that subsection read immediately prior to March 1, 1987, who was a licensed manufacturer under this Act of gasoline, diesel fuel or aviation fuel solely by virtue of that paragraph, and the excise tax thereon had not been paid or become payable on or before February 28, 1987, the gasoline, diesel fuel or aviation fuel shall be deemed to have been sold and delivered to a purchaser thereof immediately prior to March 1, 1987.

• Marginal note:Deemed sale

  (3.1) For the purposes of this Part, a person who, under a contract for labour, manufactures or produces goods mentioned in Schedule I from any article or material supplied by another person, other than a manufacturer licensed for the purposes of this Part, for delivery to that other person is deemed to have sold the goods, at a sale price equal to the charge made under the contract in respect of the goods, at the time they are delivered to that other person.

• Marginal note:Tax on resale by licensed wholesaler of Schedule I goods

  (4) Whenever goods mentioned in Schedule I are sold by a licensed wholesaler or are retained for the licensed wholesaler’s own use or for rental by the licensed wholesaler to others, there shall be imposed, levied and collected, in addition to any other duty or tax payable under this Act or any other Act or law, an excise tax in respect of those goods at the applicable rate set out in the applicable section in that Schedule, computed, where that rate is specified as a percentage, on the duty paid value or the price at which the goods were purchased by the licensed wholesaler, as the case may be, payable by the licensed wholesaler at the time the goods are delivered to the purchaser or so retained for use or rental.

• (5) [Repealed, 2002, c. 22, s. 367]

• Marginal note:When tax not payable

  (6) The tax imposed by subsection (1) is not payable in the case of goods mentioned in Schedule I that are purchased or imported by a licensed wholesaler for resale by him.

• Marginal note:When tax not payable

  (7) The tax imposed under subsection (1) is not payable in the case of

  • (a) goods that are purchased or imported by a manufacturer licensed for the purposes of this Part and that are to be incorporated into and form a constituent or component part of an article or product that is subject to excise tax under this Act, if the tax on the article or product has not yet been levied under this section; or

  • (b) the sale of a new motor vehicle designed for highway use, or a chassis for such a vehicle, to a person described in paragraph (h) of the definition manufacturer or producer in subsection 2(1) who is a manufacturer licensed for the purposes of this Part.

• Marginal note:Tax not payable

  (8) The tax imposed under subsection (1) is not payable in the case of

  • (a) goods that are purchased or imported by a licensed wholesaler who is deemed by subsection 55(2) to be a bona fide wholesaler or jobber for resale by him;

  • (b) goods for which relief from the consumption or sales tax is provided by virtue of section 12 or 13 of Part III of Schedule III or section 1 of Part VII of Schedule III;

  • (b.1) goods imported into Canada and classified under tariff item No. 9804.30.00 of Schedule I to the Customs Tariff;

  • (b.2) manufactured tobacco imported into Canada by an individual for their personal use if it is stamped in accordance with the Excise Act and duty has been imposed on it under section 200 of that Act; or

  • (c) diesel fuel for use in the generation of electricity, unless the diesel fuel is used in or by a vehicle, including a conveyance attached to the vehicle, of any mode of transportation.

• (8.1) to (8.3) [Repealed, 2002, c. 22, s. 367]

• Marginal note:Diversion to taxable sale or use

  (9) Where gasoline or aviation gasoline has been purchased by a person to whom a bulk permit has been issued under regulations made by the Governor in Council pursuant to subsection 59(3) for a use by such person that renders the purchase exempt from a portion of the tax imposed by this section equal to one and one-half cents per litre and that person sells the gasoline or aviation gasoline or uses it for a purpose for which it could not have been purchased by him exempt from such portion of the tax at the time he purchased it, the portion of the tax that would have been payable at the time he purchased it equal to one and one-half cents per litre of gasoline or aviation gasoline shall be payable by that person at the time he so sells or uses the gasoline or aviation gasoline.

• Marginal note:Idem

  (9.1) Where fuel other than aviation gasoline has been purchased or imported for a use for which the tax imposed under this Part on diesel fuel or aviation fuel is not payable and the purchaser or importer sells or appropriates the fuel for a purpose for which the fuel could not have been purchased or imported without payment of the tax at the time he purchased or imported it, the tax imposed under this Part on diesel fuel or aviation fuel shall be payable by the person who sells or appropriates the fuel

  • (a) where the fuel is sold, at the time of delivery to the purchaser; and

  • (b) where the fuel is appropriated, at the time of that appropriation.

• (9.2) and (9.3) [Repealed, 2002, c. 22, s. 367]

• Marginal note:Appropriation by manufacturer or producer

  (10) If goods of any class mentioned in Schedule I that were manufactured or produced in Canada are appropriated by the manufacturer or producer for their own use, for the purposes of this Part,

  • (a) the goods shall be deemed to have been delivered to a purchaser thereof at the time of the appropriation; and

  • (b) the sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the goods had been sold at that time to a person with whom the manufacturer or producer was dealing at arm’s length.

• Marginal note:Person deemed manufacturer or producer

  (11) Where a person has, in Canada,

  • (a) put a clock or watch movement into a clock or watch case,

  • (b) put a clock or watch movement into a clock or watch case and added a strap, bracelet, brooch or other accessory thereto, or

  • (c) set or mounted one or more diamonds or other precious or semi-precious stones, real or imitation, in a ring, brooch or other article of jewellery,

  he shall, for the purposes of this Part, be deemed to have manufactured or produced the watch, clock, ring, brooch or other article of jewellery in Canada.

Marginal note:Definitions

• 23.01 (1) The definitions in this subsection apply in this section.

  fuel

  fuel means gasoline, diesel fuel and aviation fuel. (combustible)

  temperature compensated method

  temperature compensated method means the method involving the measurement of the volume of fuel in litres that are corrected to the reference temperature of 15 degrees Celsius in accordance with the requirements imposed by or under the Weights and Measures Act. (méthode fondée sur la compensation de la température)

  uncompensated method

  uncompensated method means the method involving the measurement of the volume of fuel in litres that are not corrected to a reference temperature. (méthode traditionnelle)

• Marginal note:Measurement of fuel volume

  (2) For the purposes of determining the tax imposed under subsection 23(1) in respect of fuel, the volume of the fuel shall be measured in accordance with

  • (a) the temperature compensated method, where that method is used by the manufacturer or producer of the fuel for the purpose of establishing the amount of fuel delivered and charged to the purchaser, or by the importer of the fuel to establish the amount of fuel imported; or

  • (b) the uncompensated method, where that method is used by the manufacturer or producer of the fuel for the purpose of establishing the amount of fuel delivered and charged to the purchaser, or by the importer of the fuel to establish the amount of fuel imported.

• Marginal note:Measurement of fuel volume — licensed wholesalers

  (3) For the purposes of determining the tax imposed under subsection 23(4) in respect of fuel sold by a licensed wholesaler, the volume of the fuel shall be measured in accordance with

  • (a) the temperature compensated method, where that method is used by the licensed wholesaler for the purpose of establishing the amount of fuel delivered and charged to the purchaser; or

  • (b) the uncompensated method, where that method is used by the licensed wholesaler for the purpose of establishing the amount of fuel delivered and charged to the purchaser.

23.1 [Repealed, 2002, c. 22, s. 368]

23.11 [Repealed, 2002, c. 22, s. 368]

23.12 [Repealed, 2002, c. 22, s. 368]

23.13 [Repealed, 2002, c. 22, s. 368]

23.2 [Repealed, 2001, c. 16, s. 18]