Budget Implementation Act, 2017, No. 1 (S.C. 2017, c. 20)

2002, c. 22Excise Act, 2001

• 45 (1) Paragraph (a) of the definition adjustment day in section 58.1 of the Excise Act, 2001 is replaced by the following:

  • (a) March 23, 2017; or

• (2) The portion of the definition taxed cigarettes in section 58.1 of the Act before paragraph (a) is replaced by the following:

  taxed cigarettes

  taxed cigarettes of a person means cigarettes in respect of which duty has been imposed under section 42 before March 23, 2017 at the rate set out in paragraph 1(a) of Schedule 1, as it read on March 22, 2017, and that, at the beginning of March 23, 2017,

• (3) The portion of the definition taxed cigarettes in section 58.1 of the Act before paragraph (a), as enacted by subsection (2), is replaced by the following:

  taxed cigarettes

  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 March 23, 2017, and that, at the beginning of the adjustment day,

• (4) Subsections (1) and (2) are deemed to have come into force on March 23, 2017.

• (5) Subsection (3) comes into force on November 30, 2019.

• 46 (1) Subsection 58.2(1) of the Act is replaced by the following:

  Marginal note:Imposition of tax — 2017 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 March 23, 2017 at the rate of $0.00265 per cigarette.

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.

• 47 (1) Paragraph 58.5(1)(a) of the Act is replaced by the following:

  • (a) in the case of the tax imposed under subsection 58.2(1), May 31, 2017; or

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.

• 48 (1) Paragraph 58.6(1)(a) of the Act is replaced by the following:

  • (a) in the case of the tax imposed under subsection 58.2(1), May 31, 2017; or

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.

• 49 (1) The Act is amended by adding the following after section 123:

  Marginal note:Definitions

  • 123.1 (1) The following definitions apply in this section.

    inflationary adjusted year

    inflationary adjusted year means 2018 and every year after that year. (année inflationniste)

    reference year

    reference year means a 12-month period that begins on April 1 of a year and ends on March 31 of the following year. (année de référence)

  • Marginal note:Annual adjustments

    (2) Each rate of duty set out in Schedule 4 applicable in respect of a litre of absolute ethyl alcohol or in respect of a litre of spirits is to be adjusted on April 1 of an 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 litre of absolute ethyl alcohol or the litre of spirits, as the case may be, on March 31 of the inflationary adjusted year, and

      B

      is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

      C/D

      where

      C

      is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and

      D

      is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular 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-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-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.

  • Marginal note:Application of adjusted rate

    (5) If duties on spirits are imposed in a reference year but become payable in another reference year that begins in an inflationary adjusted year, those duties are determined at the rate of duty as adjusted under subsection (2) on the first day of the other reference year.

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.

• 50 (1) The Act is amended by adding the following after section 135:

  Marginal note:Definitions

  • 135.1 (1) The following definitions apply in this section.

    inflationary adjusted year

    inflationary adjusted year means 2018 and every year after that year. (année inflationniste)

    reference year

    reference year means a 12-month period that begins on April 1 of a year and ends on March 31 of the following year. (année de référence)

  • Marginal note:Annual adjustments

    (2) Each rate of duty set out in Schedule 6 applicable in respect of a litre of wine is to be adjusted on April 1 of an 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 litre on March 31 of the inflationary adjusted year, and

      B

      is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

      C/D

      where

      C

      is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and

      D

      is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular 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-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-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.

  • Marginal note:Application of adjusted rate

    (5) If duties on wine are imposed in a reference year but become payable in another reference year that begins in an inflationary adjusted year, those duties are determined at the rate of duty as adjusted under subsection (2) on the first day of the other reference year.

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.

• 51 (1) Subparagraphs 216(2)(a)(i) to (iv) of the Act are replaced by the following:

  • (i) $0.22 multiplied by the number of cigarettes to which the offence relates,

  • (ii) $0.22 multiplied by the number of tobacco sticks to which the offence relates,

  • (iii) $0.27 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

  • (iv) $0.42 multiplied by the number of cigars to which the offence relates, and

• (2) Subparagraphs 216(3)(a)(iii) and (iv) of the Act are replaced by the following:

  • (iii) $0.40 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and

  • (iv) $0.84 multiplied by the number of cigars to which the offence relates, and

• 52 (1) Subparagraphs 217(2)(a)(i) and (ii) of the Act are replaced by the following:

  • (i) $11.930 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates,

  • (ii) $0.63 multiplied by the number of litres of wine to which the offence relates, and

• (2) Subparagraphs 217(2)(a)(i) and (ii) of the Act, as enacted by subsection (1), are replaced by the following:

  • (i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by the rate of duty per litre of absolute ethyl alcohol applicable under section 1 of Schedule 4 at the time the offence was committed,

  • (ii) the number of litres of wine to which the offence relates 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, and

• (3) Subparagraphs 217(3)(a)(i) and (ii) of the Act are replaced by the following:

  • (i) $23.860 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates,

  • (ii) $1.26 multiplied by the number of litres of wine to which the offence relates, and

• (4) Subparagraphs 217(3)(a)(i) and (ii) of the Act, as enacted by subsection (3), are replaced by the following:

  • (i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by 200% of the rate of duty per litre of absolute ethyl alcohol applicable under section 1 of Schedule 4 at the time the offence was committed,

  • (ii) the number of litres of wine to which the offence 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, and

• (5) Subsections (2) and (4) come into force on April 1, 2018.

• 53 (1) Subparagraphs 218(2)(a)(i) and (ii) of the Act are replaced by the following:

  • (i) $23.860 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and

  • (ii) $1.26 multiplied by the number of litres of wine to which the offence relates, and

• (2) Subparagraphs 218(2)(a)(i) and (ii) of the Act, as enacted by subsection (1), are replaced by the following:

  • (i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by 200% of the rate of duty per litre of absolute ethyl alcohol applicable under section 1 of Schedule 4 at the time the offence was committed, and

  • (ii) the number of litres of wine to which the offence 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, and

• (3) Subparagraphs 218(3)(a)(i) and (ii) of the Act are replaced by the following:

  • (i) $35.790 multiplied by the number of litres of absolute ethyl alcohol in the spirits to which the offence relates, and

  • (ii) $1.89 multiplied by the number of litres of wine to which the offence relates, and

• (4) Subparagraphs 218(3)(a)(i) and (ii) of the Act, as enacted by subsection (3), are replaced by the following:

  • (i) the number of litres of absolute ethyl alcohol in the spirits to which the offence relates multiplied by 300% of the rate of duty per litre of absolute ethyl alcohol applicable under section 1 of Schedule 4 at the time the offence was committed, and

  • (ii) the number of litres of wine to which the offence relates multiplied by 300% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 at the time the offence was committed, and

• (5) Subsections (2) and (4) come into force on April 1, 2018.

54 Paragraphs 240(a) to (c) of the Act are replaced by the following:

• 55 (1) Section 242 of the Act is replaced by the following:

  Marginal note:Contravention of section 72

  242 Every person who contravenes section 72 is liable to a penalty equal to $1.26 per litre of wine to which the contravention relates.

• (2) Section 242 of the Act, as enacted by subsection (1), is replaced by the following:

  Marginal note:Contravention of section 72

  242 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.

• (3) Subsection (2) comes into force on April 1, 2018.

• 56 (1) Paragraph 243(1)(b) of the Act is replaced by the following:

  • (b) if the contravention relates to wine, $1.26 per litre of that wine.

• (2) Paragraph 243(1)(b) of the Act, as enacted by subsection (1), is replaced by the following:

  • (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.

• (3) Paragraph 243(2)(b) of the Act is replaced by the following:

  • (b) if the contravention relates to wine, $0.63 per litre of that wine.

• (4) Paragraph 243(2)(b) of the Act, as enacted by subsection (3), is replaced by the following:

  • (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.

• (5) Subsections (2) and (4) come into force on April 1, 2018.