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Excise Act, 2001 (S.C. 2002, c. 22)

Full Document:  

Act current to 2022-07-13 and last amended on 2022-06-30. Previous Versions

PART 4.2Vaping Products (continued)

Marginal note:Duty relieved — importation by an individual

  •  (1) The duties imposed under sections 158.57 and 158.58 are relieved on vaping products imported by an individual for their personal use if they were manufactured in Canada and are stamped.

  • Marginal note:Duty relieved — reimportation

    (2) The duties imposed under sections 158.57 and 158.58 are relieved on vaping products imported by an individual for their personal use if they were manufactured outside Canada, were previously imported into Canada and are stamped.

Marginal note:Duty relieved — importation for destruction

 The duties imposed under paragraphs 158.57(b) and 158.58(b) are relieved on a stamped vaping product that was manufactured in Canada by a vaping product licensee and that is imported for re-working or destruction in accordance with section 158.53.

Marginal note:Duty relieved — prescribed circumstances

 The duties imposed under section 158.57 or 158.58 are relieved on a vaping product in prescribed circumstances.

Marginal note:Duty not payable

 Duty is not payable on a vaping product

  • (a) that is

    • (i) taken for analysis, or destroyed, by the Minister,

    • (ii) taken for analysis by a vaping product licensee in a manner approved by the Minister,

    • (iii) destroyed by a vaping product licensee in a manner approved by the Minister,

    • (iv) delivered by a vaping product licensee to another person for analysis or destruction by that person in a manner approved by the Minister,

    • (v) a vaping product drug, or

    • (vi) a prescribed vaping product; or

  • (b) in prescribed circumstances.

Excise Warehouses

Marginal note:Restriction — entering vaping products

 No person shall enter into an excise warehouse

  • (a) a vaping product that is stamped; or

  • (b) any other vaping product except in accordance with this Act.

PART 5General Provisions Concerning Duty and Other Amounts Payable

Fiscal Periods

Marginal note:Determination of fiscal months

  •  (1) The fiscal months of a person other than a cannabis licensee or a vaping product licensee shall be determined in accordance with the following rules:

    • (a) if fiscal months of the person have been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, each of those fiscal months is a fiscal month of the person for the purposes of this Act;

    • (b) if fiscal months of the person have not been determined under subsection 243(2) or (4) of the Excise Tax Act for the purposes of Part IX of that Act, the person may select for the purposes of this Act fiscal months that meet the requirements set out in that subsection 243(2); and

    • (c) if neither paragraph (a) nor paragraph (b) applies, each calendar month is a fiscal month of the person for the purposes of this Act.

  • Marginal note:Fiscal months — cannabis or vaping product licensee

    (1.01) For the purposes of this Act, the fiscal months of a cannabis licensee or a vaping product licensee are calendar months.

  • Marginal note:Determination of fiscal half-years

    (1.1) The fiscal half-years of a person shall be determined in accordance with the following rules:

    • (a) the period beginning on the first day of the first fiscal month in a fiscal year of the person and ending on the earlier of the last day of the sixth fiscal month and the last day in the fiscal year is a fiscal half-year of the person; and

    • (b) the period, if any, beginning on the first day of the seventh fiscal month and ending on the last day in the fiscal year of the person is a fiscal half-year of the person.

  • Marginal note:Notification of Minister

    (2) Every person who is required to file a return shall notify the Minister of their fiscal months in the prescribed form and manner.

Reporting Periods

Marginal note:Reporting period — general

  •  (1) Subject to this section, the reporting period of a person is a fiscal month.

  • Marginal note:Reporting period — semi-annual

    (2) On application in the prescribed form and manner by a person, the Minister may, in writing, authorize the reporting period of that person to be a fiscal half-year in a particular fiscal year if

    • (a) the person is a licensee in one or more of the following categories:

      • (i) an excise warehouse licensee who does not hold in their excise warehouse manufactured tobacco or cigars,

      • (ii) a spirits licensee,

      • (iii) a wine licensee, or

      • (iv) a licensed user;

    • (b) the person has been licensed for a period exceeding twelve consecutive fiscal months;

    • (c) in respect of a category, the total of all duties payable under Part 4 by the person and any person associated with the person in the fiscal year ending immediately before the particular fiscal year did not exceed $120,000;

    • (d) in respect of a category, the total of all duties payable under Part 4 by the person and any person associated with the person in the particular fiscal year does not exceed $120,000;

    • (e) in the case where the person is an excise warehouse licensee, the liability of the person and any excise warehouse licensee associated with the person with respect to duty on alcohol entered into an excise warehouse

      • (i) did not exceed $120,000 in the fiscal year ending immediately before the particular fiscal year, and

      • (ii) does not exceed $120,000 in the particular fiscal year;

    • (f) in the case where the person is a licensed user, the liability of the person and any licensed user associated with the person with respect to duty on alcohol entered into their specified premises

      • (i) did not exceed $120,000 in the fiscal year ending immediately before the particular fiscal year, and

      • (ii) does not exceed $120,000 in the particular fiscal year;

    • (g) the volume of absolute ethyl alcohol added to the bulk spirits inventory of the person that is a spirits licensee and any spirits licensee associated with the person did not exceed in the fiscal year ending immediately before the particular fiscal year, and does not exceed in the particular fiscal year, the amount determined by the formula

      A / B

      where

      A
      is $120,000, and
      B
      is the rate of duty on spirits set out in section 1 of Schedule 4;
    • (h) the volume of wine added to the bulk wine inventory of the person that is a wine licensee and any wine licensee associated with the person did not exceed in the fiscal year ending immediately before the particular fiscal year, and does not exceed in the particular fiscal year, the amount determined by the formula

      A / B

      where

      A
      is $120,000, and
      B
      is the rate of duty on wine set out in paragraph (c) of Schedule 6; and
    • (i) the person is in compliance with the Act.

  • Marginal note:Deemed revocation

    (3) An authorization under subsection (2) is deemed to be revoked if

    • (a) any of the conditions described in paragraphs (2)(d) to (h) is no longer met in respect of the person, which revocation is effective as of the first day after the end of the fiscal half-year in which the condition is no longer met; or

    • (b) an excise warehouse licensee holds in their excise warehouse manufactured tobacco or cigars, which revocation is effective as of the first day of the fiscal month in which the licensee begins to hold the tobacco or cigars.

  • Marginal note:Revocation — other

    (4) The Minister may revoke an authorization if

    • (a) the person requests in writing the Minister to do so;

    • (b) the person fails to comply with the Act; or

    • (c) the Minister considers that the authorization is no longer required.

  • Marginal note:Notice of revocation

    (5) If the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the person and shall specify in the notice the fiscal month for which the revocation becomes effective.

  • Marginal note:Deemed reporting period on revocation

    (6) If a revocation under paragraph (3)(b) or subsection (4) becomes effective before the last day of a fiscal half-year of a person that is authorized under subsection (2), the period beginning on the first day of the fiscal half-year and ending immediately before the first day of the fiscal month for which the revocation becomes effective is deemed to be a reporting period of the person.

  • 2010, c. 25, s. 111

Returns and Payment of Duty and Other Amounts

Marginal note:Filing by licensee

 Every person who is licensed under this Act shall, not later than the last day of the first month after each reporting period of the person,

  • (a) file a return with the Minister, in the prescribed form and manner, for that reporting period;

  • (b) calculate, in the return, the total amount of the duty payable, if any, by the person for that reporting period; and

  • (c) pay that amount to the Receiver General.

  • 2002, c. 22, s. 160
  • 2007, c. 18, s. 107
  • 2010, c. 25, s. 112

Marginal note:Filing by other persons

 Every person who is not licensed under this Act and who is required to pay duty under this Act shall, not later than the last day of the first month after the fiscal month of the person in which the duty became payable,

  • (a) file a return with the Minister, in the prescribed form and manner, for that fiscal month;

  • (b) calculate, in the return, the total amount of the duty payable by the person for that fiscal month; and

  • (c) pay that amount to the Receiver General.

Marginal note:Set-off of refunds

 If, at any time, a person files a return in which the person reports an amount that is required to be paid under this Act by them and the person claims a refund payable to them at that time, in the return or in another return, or in a separate application filed under this Act with the return, the person is deemed to have paid at that time, and the Minister is deemed to have refunded at that time, an amount equal to the lesser of the amount required to be paid and the amount of the refund.

Marginal note:Large payments

 Every person who is required under this Act to pay any duty, interest or other amount to the Receiver General shall, if the amount is $50,000 or more, make the payment to the account of the Receiver General at

  • (a) a bank;

  • (b) an authorized foreign bank, as defined in section 2 of the Bank Act, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act;

  • (c) a credit union;

  • (d) a corporation authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

  • (e) a corporation authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in mortgages on real property or hypothecs on immovables.

Marginal note:Authority for separate returns

  •  (1) A licensee who engages in one or more activities in separate branches or divisions may file an application, in the prescribed form and manner, with the Minister for authority to file separate returns and applications for refunds under this Act in respect of a branch or division specified in the application.

  • Marginal note:Authorization by Minister

    (2) On receipt of the application, the Minister may, in writing, authorize the licensee to file separate returns and applications for refunds in relation to the specified branch or division, subject to any conditions that the Minister may at any time impose, if the Minister is satisfied that

    • (a) the branch or division can be separately identified by reference to the location of the branch or division or the nature of the activities engaged in by it; and

    • (b) separate records, books of account and accounting systems are maintained in respect of the branch or division.

  • Marginal note:Revocation of authorization

    (3) The Minister may revoke an authorization if

    • (a) the licensee, in writing, requests the Minister to revoke the authorization;

    • (b) the licensee fails to comply with any condition imposed in respect of the authorization or any provision of this Act;

    • (c) the Minister is no longer satisfied that the requirements of subsection (2) in respect of the licensee are met; or

    • (d) the Minister considers that the authorization is no longer required.

  • Marginal note:Notice of revocation

    (4) If the Minister revokes an authorization, the Minister shall send a notice in writing of the revocation to the licensee and shall specify in the notice the effective date of the revocation.

Marginal note:Amounts owing of $2 or less in total

  •  (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty under this Act does not exceed two dollars, those amounts are deemed to be nil.

  • Marginal note:Amounts payable of $2 or less in total

    (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts are deemed to be nil.

  • 2002, c. 22, s. 165
  • 2003, c. 15, s. 91
  • 2006, c. 4, s. 113

Meaning of electronic filing

  •  (1) For the purposes of this section, electronic filing means using electronic media in a manner specified in writing by the Minister.

  • Marginal note:Filing of return by electronic filing

    (2) A person who is required to file with the Minister a return under this Act, and who meets the criteria specified in writing by the Minister for the purposes of this section, may file the return by way of electronic filing.

  • Marginal note:Deemed filing

    (3) For the purposes of this Act, if a person files a return by way of electronic filing, it is deemed to be a return in the prescribed form filed with the Minister on the day the Minister acknowledges acceptance of it.

 
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