Excise Act, 2001 (S.C. 2002, c. 22)

Marginal note:Dutiable amount — consideration

2.1 The following rules apply in determining an amount of consideration for the purposes of the definition dutiable amount in section 2:

• (a) if a provision of Part IX of the Excise Tax Act deems the consideration, or part of the consideration, for a supply not to be consideration for the supply, a supply to be made for no consideration or a supply not to have been made by a person, that deeming does not apply for that determination; and

• (b) subsection 155(1) of that Act is to be read without reference to “and the recipient of the supply is not a registrant who is acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the recipient,”.

Marginal note:References to other enactments

3 A reference in this Act to a repealed enactment, or a portion of it, of the legislature of a province or territory shall, with respect to a subsequent transaction, matter or thing, be read as a reference to the provisions of any enactment replacing the repealed enactment or portion that relate to the same subject-matter as the repealed enactment or portion. If there is no replacement enactment or portion, or if there are no provisions in the replacement enactment that relate to the same subject-matter, the repealed enactment or portion shall be read as unrepealed in so far as is necessary to maintain or give effect to the reference.

Meaning of administration or enforcement of this Act

4 For greater certainty, a reference in this Act to administration or enforcement of this Act includes the collection of any amount payable under this Act.

Marginal note:Constructive possession

• 5 (1) For the purposes of section 25.2, subsections 25.3(1), 30(1), 32(1) and 32.1(1), section 61, subsections 70(1) and 88(1), section 158.04, subsections 158.05(1) and 158.11(1) and (2), section 158.37, subsections 158.38(1) and 158.44(1) and (2), sections 230 and 231 and subsection 238.1(1), if one of two or more persons, with the knowledge and consent of the rest of them, has anything in the person’s possession, it is deemed to be in the custody and possession of each and all of them.

• Marginal note:Definition of possession

  (2) In this section and in section 25.2, subsections 25.3(1), 30(1), 32(1) and 32.1(1), section 61, subsections 70(1) and 88(1), section 158.04, subsections 158.05(1) and 158.11(1) and (2), section 158.37 and subsections 158.38(1), 158.44(1) and (2) and 238.1(1), possession means not only having in one’s own personal possession but also knowingly

  • (a) having in the actual possession or custody of another person; or

  • (b) having in any place, whether belonging to or occupied by one’s self or not, for one’s own use or benefit or that of another person.

Marginal note:Arm’s length

• 6 (1) For the purposes of this Act,

  • (a) related persons are deemed not to deal with each other at arm’s length; and

  • (b) it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length.

• Marginal note:Related persons

  (2) For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that

  • (a) a reference in those subsections to “corporation” shall be read as a reference to “corporation or partnership”; and

  • (b) a reference in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as a reference to “rights” or “partners”, respectively.

• Marginal note:Associated persons

  (3) For the purposes of this Act, a particular corporation is associated with another corporation if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.

• Marginal note:Corporations controlled by same person or group

  (4) For the purposes of this Act, a person other than a corporation is associated with a particular corporation if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others.

• Marginal note:Partnership or trust

  (5) For the purposes of this Act, a person is associated with

  • (a) a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and

  • (b) a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.

• Marginal note:Association with third person

  (6) For the purposes of this Act, a person is associated with another person if each of them is associated with the same third person.

PART 1Application and Administrative Matters

Application to Her Majesty

Marginal note:Act binding on Her Majesty

7 This Act is binding on Her Majesty and Her Majesty in right of a province.

Administration and Officers

Marginal note:Minister’s duty

8 The Minister shall administer and enforce this Act and the Commissioner may exercise the powers and perform the duties of the Minister under this Act.

Marginal note:Officers and employees

• 9 (1) The officers, employees and agents that are necessary to administer and enforce this Act shall be appointed, employed or engaged in the manner authorized by law.

• Marginal note:Delegation of powers

  (2) The Minister may authorize a designated officer or agent or a class of officers or agents to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial power or duty of the Minister, under this Act.

• Marginal note:Authorization

  (3) The Minister of Public Safety and Emergency Preparedness may authorize a designated officer or agent, or a class of officers or agents, to exercise powers and perform duties of that Minister under section 68.

Marginal note:Designation of police forces

• 10 (1) The Minister and the Minister of Public Safety and Emergency Preparedness may designate any police force in Canada for the purposes of the enforcement of any of the provisions of this Act that are specified in the designation, subject to any terms and conditions specified in the designation, for any period specified in the designation.

• Marginal note:Persons to have powers and duties of officers

  (2) All members of a police force designated under subsection (1) have the powers and duties of an officer for the purposes of the enforcement of the provisions of this Act specified in the designation.

• Marginal note:Designation to be published

  (3) A designation under subsection (1) or any variation or cancellation of that designation must be published in the Canada Gazette and is not effective before it is so published.

Marginal note:Designation of analysts

11 The Minister may designate any person or class of persons as an analyst for the purposes of this Act.

Marginal note:Administration of oaths

12 Any officer, if designated by the Minister for the purpose, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act, and every officer so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.

Inquiries

Marginal note:Authorization of inquiry

• 13 (1) The Minister may, for any purpose related to the administration or enforcement of this Act, authorize any person, whether or not the person is an officer, to make any inquiry that the Minister considers necessary with reference to anything relating to the administration or enforcement of this Act.

• Marginal note:Appointment of hearing officer

  (2) If the Minister authorizes a person to make an inquiry, the Minister shall without delay apply to the Tax Court for an order appointing a hearing officer before whom the inquiry will be held.

• Marginal note:Powers of hearing officer

  (3) For the purposes of an inquiry, a hearing officer has all of the powers conferred on a commissioner under sections 4 and 5 of the Inquiries Act and that may be conferred on a commissioner under section 11 of that Act.

• Marginal note:When powers to be exercised

  (4) A hearing officer shall exercise the powers conferred on a commissioner under section 4 of the Inquiries Act in relation to any person that the person authorized to make the inquiry considers appropriate for the conduct of the inquiry, but the hearing officer shall not exercise the power to punish any person unless, on application by the hearing officer, a judge certifies that the power may be exercised in the matter disclosed in the application and the applicant has given to the person in respect of whom the power is proposed to be exercised 24 hours notice of the hearing of the application, or any shorter notice that the judge considers reasonable.

• Marginal note:Rights of witnesses

  (5) Any person who gives evidence in an inquiry is entitled to be represented by counsel and, on request made by the person to the Minister, to receive a transcript of that evidence.

• Marginal note:Rights of person investigated

  (6) Any person whose affairs are investigated in the course of an inquiry is entitled to be present and to be represented by counsel throughout the inquiry unless the hearing officer, on application by the Minister or a person giving evidence, orders otherwise in relation to the whole or any part of the inquiry, on the ground that the presence of the person and their counsel, or either of them, would be prejudicial to the effective conduct of the inquiry.

PART 2Licences and Registrations

Licences

Marginal note:Issuance

• 14 (1) Subject to the regulations, on application, the Minister may issue to a person

  • (a) a spirits licence, authorizing the person to produce or package spirits;

  • (b) a wine licence, authorizing the person to produce or package wine;

  • (c) a user’s licence, authorizing the person to use bulk alcohol, non-duty-paid packaged alcohol or a restricted formulation;

  • (d) a tobacco licence, authorizing the person to manufacture tobacco products;

  • (e) a tobacco dealer’s licence, authorizing the person to carry on the activity of a tobacco dealer; or

  • (f) a vaping product licence, authorizing the person to

    • (i) manufacture vaping products, or

    • (ii) import packaged vaping products for stamping by the person.

• Marginal note:Cannabis licence

  (1.1) Subject to the regulations, on application, the Minister may issue to a person a cannabis licence for the purposes of this Act.

• Marginal note:Cannabis licence — effect

  (1.2) A cannabis licence issued to a person shall not have effect before a licence or permit issued to the person under subsection 62(1) of the Cannabis Act comes into effect.

• Marginal note:Deemed packaging excluded

  (2) A person is not entitled to a licence under paragraph (1)(a) or (b) by reason only of having been deemed to have packaged alcohol under section 77 or 82.

• Marginal note:Production excluded

  (3) A person is not entitled to a licence under paragraph (1)(a) by reason only of

  • (a) having been deemed to have produced spirits under section 131.2; or

  • (b) having produced spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol.

• Marginal note:Issuance of a wine licence

  (4) Subject to the regulations, on application by a person who is the holder of a spirits licence and a user’s licence, the Minister may issue to the person a wine licence, authorizing the person to fortify wine.

Registrations

Marginal note:Ferment-on-premises registration

15 Subject to the regulations, on application, the Minister may issue a ferment-on-premises registration to a person authorizing the person to possess at their ferment-on-premises facility bulk wine produced at the premises by an individual and owned by the individual.

Marginal note:User’s registration

16 Subject to the regulations, on application, the Minister may issue a user’s registration authorizing the use of non-duty-paid packaged spirits by

• (a) a scientific and research laboratory in receipt annually of aid from the Government of Canada or a province, for scientific purposes;

• (b) a university or other post-secondary educational institution recognized by a province, for scientific purposes;

• (c) a health care facility, for medicinal and scientific purposes; or

• (d) a health institution in receipt annually of aid from the Government of Canada or a province, for medicinal and scientific purposes.

Marginal note:Alcohol registration

17 Subject to the regulations, on application, the Minister may issue an alcohol registration to a person authorizing the person to store or transport bulk alcohol, specially denatured alcohol or a restricted formulation.

Marginal note:SDA registration

• 18 (1) Subject to the regulations, on application, the Minister may issue a specially denatured alcohol registration to a person authorizing the person to possess and use specially denatured alcohol.

• Marginal note:Restrictions on grades of SDA

  (2) The Minister may impose restrictions on the use of particular grades of specially denatured alcohol.

Excise Warehouses

Marginal note:Issuance of licence

• 19 (1) Subject to the regulations, on application, the Minister may issue an excise warehouse licence to a person that is not a retailer of alcohol authorizing the person to possess in their excise warehouse manufactured tobacco, cigars or vaping products that are not stamped or non-duty-paid packaged alcohol.

• Marginal note:Eligible retailers of alcohol

  (2) Even if they are retailers of alcohol, the following persons may be issued an excise warehouse licence under subsection (1):

  • (a) an alcohol licensee;

  • (b) a liquor authority; and

  • (c) any person who supplies goods in accordance with the Ships’ Stores Regulations.