Economic Action Plan 2014 Act, No. 1 (S.C. 2014, c. 20)
Full Document:
Assented to 2014-06-19
63. (1) The portion of section 43 of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Droit additionnel sur les cigares
43. Est imposé aux taux prévus à l’annexe 2, en plus du droit imposé en vertu de l’article 42, un droit sur les cigares qui sont fabriqués et vendus au Canada ou importés. Ce droit est exigible :
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
64. (1) The Act is amended by adding the following after section 43:
Definition of “inflationary adjusted year”
43.1 (1) In this section, “inflationary adjusted year” means 2019 and every fifth year after that year.
Marginal note:Adjustments
(2) Each rate of duty set out in sections 1 to 4 of Schedule 1 and paragraph (a) of Schedule 2 in respect of a tobacco product is to be adjusted on December 1 of a particular inflationary adjusted year so that the rate is equal to the greater of
(a) the rate determined by the formula
A × B
where
- A
- is the rate of duty applicable to the tobacco product on November 30 of the particular inflationary adjusted year, and
- B
- is the amount determined by the formula in subparagraph (i) or (ii), rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth,
(i) if the particular inflationary adjusted year is 2019,
C/D
where
- C
- is the Consumer Price Index for the 12-month period ending on September 30, 2019, and
- D
- is the Consumer Price Index for the 12-month period that ended on September 30, 2013,
(ii) for any other particular inflationary adjusted year,
E/F
where
- E
- is the Consumer Price Index for the 12-month period ending on September 30 of the particular inflationary adjusted year, and
- F
- is the Consumer Price Index for the 12-month period ending on September 30 of the inflationary adjusted year that precedes the particular inflationary adjusted year; and
(b) the rate of duty referred to in the description of A in paragraph (a).
Marginal note:Rounding
(3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-hundred-thousandth or, if the adjusted rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth.
Marginal note:Consumer Price Index
(4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by
(a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period;
(b) dividing the aggregate obtained under paragraph (a) by 12; and
(c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
Marginal note:2008, c. 28, s. 56(1)
65. (1) Subsection 53(1) of the French version of the Act is replaced by the following:
Marginal note:Droit spécial sur le tabac fabriqué importé livré à une boutique hors taxes
53. (1) Un droit spécial est imposé, aux taux prévus à l’article 1 de l’annexe 3, sur le tabac fabriqué importé qui est livré à une boutique hors taxes et qui n’est pas estampillé.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
66. (1) Subsection 54(2) of the French version of the Act is replaced by the following:
Marginal note:Droit spécial sur le tabac du voyageur
(2) Un droit spécial est imposé, aux taux prévus à l’article 2 de l’annexe 3, sur le tabac du voyageur au moment de son importation.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
67. (1) Paragraphs 56(1)(a) and (b) of the French version of the Act are replaced by the following:
a) si l’exportation est effectuée conformément à l’alinéa 50(4)a) par le titulaire de licence de tabac qui a fabriqué les produits, les taux prévus à l’article 3 de l’annexe 3;
b) sinon, les taux prévus à l’article 4 de l’annexe 3.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
Marginal note:2006, c. 4, s. 34(1)
68. (1) The heading “TOBACCO PRODUCTS INVENTORY TAX” before section 58.1 of the Act is replaced by the following:
CIGARETTE INVENTORY TAX
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
Marginal note:2006, c. 4, s. 34(1); 2007, c. 35, s. 197(1)
69. (1) The definitions “loose tobacco”, “taxed tobacco” and “unit” in section 58.1 of the Act are repealed.
(2) Section 58.1 of the Act is amended by adding the following in alphabetical order:
“adjustment day”
« date d’ajustement »
“adjustment day” means
(a) February 12, 2014; or
(b) in the case of an inflationary adjusted year, December 1 of that year.
“inflationary adjusted year”
« année inflationniste »
“inflationary adjusted year” has the same meaning as in subsection 43.1(1).
“taxed cigarettes”
« cigarettes imposées »
“taxed cigarettes” of a person means cigarettes in respect of which duty has been imposed under section 42 before February 12, 2014 at the rate set out in paragraph 1(b) of Schedule 1, as that provision read on February 11, 2014, and that, at the beginning of February 12, 2014,
(a) were owned by that person for sale in the ordinary course of a business of the person;
(b) were not held in a vending machine; and
(c) were not relieved from that duty under this Act.
(3) The portion of the definition “taxed cigarettes” in section 58.1 of the Act before paragraph (a) is replaced by the following:
“taxed cigarettes”
« cigarettes imposées »
“taxed cigarettes” of a person means cigarettes in respect of which duty has been imposed under section 42 or 53 at the rate applicable on the day before an adjustment day other than February 12, 2014, and that, at the beginning of the adjustment day,
(4) Subsections (1) and (2) are deemed to have come into force on February 12, 2014.
(5) Subsection (3) comes into force on November 30, 2019.
Marginal note:2006, c. 4, s. 34(1); 2007, c. 35, ss. 198(1) and 199(1)
70. (1) Sections 58.2 to 58.4 of the Act are replaced by the following:
Marginal note:Imposition of tax — 2014 increase
58.2 (1) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of February 12, 2014 at the rate of $0.02015 per cigarette.
Marginal note:Imposition of tax — inflationary adjusted years
(2) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of December 1 of an inflationary adjusted year at a rate per cigarette equal to
(a) in the case of cigarettes in respect of which duty has been imposed under section 42, the amount determined by the formula
(A – B)/5
where
- A
- is the rate of duty applicable under paragraph 1(b) of Schedule 1 for each five cigarettes on December 1 of the inflationary adjusted year, and
- B
- is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes on November 30 of the inflationary adjusted year; and
(b) in the case of cigarettes in respect of which duty has been imposed under section 53, the amount determined by the formula
C – D
where
- C
- is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on December 1 of the inflationary adjusted year, and
- D
- is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on November 30 of the inflationary adjusted year.
Marginal note:Rounding
(3) The amount determined under paragraph (2)(a) or (b) is to be rounded to the nearest one-hundred-thousandth or, if the amount is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth.
Marginal note:Exemption for small retail inventory
58.3 Tax under this Part in respect of the inventory of all taxed cigarettes of a person that is held at the beginning of an adjustment day at a separate retail establishment of the person is not payable if that retail establishment holds inventory of 30,000 or fewer cigarettes.
Marginal note:Taking of inventory
58.4 Every person liable to pay tax under this Part shall, for the purposes of this Part, determine that person’s inventory of all taxed cigarettes held at the beginning of an adjustment day.
(2) Subsection (1) is deemed to have come into force on February 12, 2014.
- Date modified: