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

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Act current to 2019-08-28 and last amended on 2019-08-28. Previous Versions

PART VIConsumption or Sales Tax (continued)

Licences

Marginal note:Manufacturers’ licences

  •  (1) Subject to this section, every manufacturer or producer shall apply for a licence for the purposes of this Part.

  • Marginal note:Exemption

    (2) The Minister may grant a licence to any person applying therefor under subsection (1), but the Governor in Council, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, may make regulations exempting any class of small manufacturer or producer from payment of consumption or sales tax on goods manufactured or produced by persons who are members of the class and persons so exempted are not required to apply for a licence.

  • Marginal note:Withdrawal of exemption

    (3) An exemption granted under subsection (2) may, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, be withdrawn by the Governor in Council at any time.

  • Marginal note:Cancellation

    (4) The Minister may cancel a licence issued under this Part if, in his opinion, it is no longer required for the purposes of this Part.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., c. E-13, s. 31
  • 1976-77, c. 15, s. 9
  • 1980-81-82-83, c. 68, s. 13

Marginal note:Licensed wholesaler or jobber

  •  (1) A bona fide wholesaler or jobber may be granted a licence but, if a wholesaler was not in possession of a licence on September 1, 1938, no licence shall be issued to him unless he is engaged exclusively or mainly in the purchase and sale of lumber or unless fifty per cent of his sales for the three months immediately preceding his application were exempt from the sales tax under this Act.

  • Marginal note:Duty free shops

    (2) A person who proposes to operate and sell goods exclusively at a duty free shop licensed as such under the Customs Act or who operates and sells goods exclusively at such a duty free shop shall be deemed, for the purposes of this section, to be a bona fide wholesaler or jobber, and the Minister may grant a licence to that person notwithstanding that he does not fulfil the requirements of subsection (1).

  • Marginal note:Licensee to give security

    (3) A wholesaler or jobber applying for a licence under this section shall give security that the wholesaler or jobber and any person other than the wholesaler or jobber who acquires from or against him the right to sell any goods, whether as a result of the operation of law or of any transaction not taxable under this Act, shall keep adequate books or accounts for the purposes of this Act and shall render true returns of sales as required by this Act, or any regulations made under this Act, and pay any tax imposed by this Act on those sales.

  • Marginal note:Amount of security

    (4) The security referred to in subsection (3) shall be for an amount of not more than twenty-five thousand dollars and not less than two thousand dollars.

  • Marginal note:Bond

    (5) The security referred to in subsection (3) shall be by a bank or by bond of an incorporated guarantee company authorized to do business in Canada, acceptable to the Minister, or by deposit of bonds or other securities of or guaranteed by the Government of Canada.

  • Marginal note:Form of bond

    (6) Where the security referred to in subsection (3) is by bond of a guarantee company, the bond shall be in form approved by the Minister.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 55
  • R.S., 1985, c. 1 (2nd Supp.), s. 191

Marginal note:Cancellation of licence

  •  (1) The licence of any wholesaler or jobber who contravenes any requirement of this Part shall be cancelled forthwith and the wholesaler or jobber shall not be granted a licence within a period of two years after the date of the cancellation.

  • Marginal note:Idem

    (2) The licence of any person deemed by subsection 55(2) to be a bona fide wholesaler or jobber shall be cancelled forthwith if he ceases to operate and sell goods exclusively at a duty free shop licensed as such under the Customs Act, and on cancellation of the licence pursuant to this section, all taxes imposed by this Act are forthwith payable on all goods then in the possession of the licensee that have been purchased free of tax by virtue of the licence.

  • Marginal note:Tax on cancellation

    (3) On the cancellation under subsection (1) of the licence granted to any licensed wholesaler, or if the licence is cancelled at the request of the licensee, or if any such licence expires and is not renewed by the licensee, all taxes imposed by this Act are forthwith payable on all goods then in the possession of the licensee that have been purchased free of tax by virtue of the licence, which taxes shall be paid at the rate in force when the licence is cancelled or expires and is not renewed and shall be computed in accordance with paragraph 50(1)(c) and Part III.

  • Marginal note:Cancellation of bond

    (4) Notwithstanding that a bond of a guarantee company given under section 55 has been cancelled, the bond shall be deemed to remain in force in relation to all goods in the possession of the licensed wholesaler at the time of cancellation.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 56
  • R.S., 1985, c. 1 (2nd Supp.), s. 192
  • 1990, c. 45, s. 8
  • 2002, c. 22, s. 373

Evasion

Marginal note:Powers of Minister

  •  (1) Notwithstanding anything in this Part, if it appears to the Minister that payment of the consumption or sales tax is being evaded by a licensed manufacturer or licensed wholesaler, the Minister may require that the consumption or sales tax shall be imposed, levied and collected on any material specified by the Minister sold to any licensed manufacturer or licensed wholesaler or to any class of licensed manufacturers or licensed wholesalers specified by the Minister, at the time of sale of the material when produced or manufactured in Canada, or prior to release under the Customs Act if the material is imported by the licensed manufacturer or licensed wholesaler.

  • Marginal note:Deduction

    (2) A deduction may be made, in respect of the tax imposed, levied and collected on material referred to in subsection (1), on submission by the licensed manufacturer or licensed wholesaler of proof that the material has been used in the manufacture of an article that is subject to the consumption or sales tax and on which the tax has been paid.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 57
  • R.S., 1985, c. 1 (2nd Supp.), s. 193

Marginal note:Deemed sale price

  •  (1) Notwithstanding any other provision of this Act other than subsections 52(5) and (6), for the purposes of this Part and Part III, where goods that were manufactured or produced, or deemed to have been manufactured or produced, in Canada are sold or deemed to be sold, or the property therein is otherwise transferred, by the manufacturer or producer thereof to a person with whom the manufacturer or producer was not dealing at arm’s length at the earlier of the time the goods were delivered or property in the goods passed to that person for no sale price or for a sale price that is less than the sale price (in this subsection referred to as the “reasonable sale price”) that would have been reasonable in the circumstances if the manufacturer or producer and that person had been dealing at arm’s length at that time, the manufacturer or producer shall be deemed to have sold the goods at that time for the reasonable sale price.

  • Marginal note:Idem

    (2) Notwithstanding any other provision of this Act, for the purposes of this Part and Part III, where a licensed wholesaler has purchased goods from, or property in goods has otherwise been transferred to a licensed wholesaler by, a person with whom the licensed wholesaler was not dealing at arm’s length at the earlier of the time the goods were delivered or property in the goods passed to the licensed wholesaler for no price or for a price that was less than the price (in this subsection referred to as the “reasonable price”) that would have been reasonable in the circumstances if the licensed wholesaler and that person had been dealing at arm’s length at that time and the goods were not imported by the licensed wholesaler, the licensed wholesaler shall be deemed to have purchased the goods at that time for a price equal to the reasonable price.

  • Marginal note:Idem

    (3) Notwithstanding any other provision of this Act, for the purposes of this Part and Part III, where a person has purchased or imported goods as described in subsection 68.19(1) or for a use rendering the purchase or importation exempt from tax under Part III or this Part and that person, under circumstances rendering him liable to pay the tax imposed by Part III or this Part, sells the goods or is deemed to sell the goods, or the property therein is otherwise transferred, to another person with whom he was not dealing at arm’s length at the time of the sale or transfer for no sale price or for a sale price that is less than the sale price (in this subsection referred to as the “reasonable sale price”) that would have been reasonable in the circumstances if they had been dealing at arm’s length at that time, that person shall be deemed to have sold the goods at that time for the reasonable sale price.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 58
  • R.S., 1985, c. 12 (4th Supp.), s. 19
 
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