Bill C-32

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Royal Assent

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	42-43 ELIZABETH II
	CHAPTER 29
	An Act to amend the Excise Tax Act, the Excise Act and the Income Tax Act
	[Assented to 23rd June, 1994]
	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	PART I
R.S., c. E-15; R.S., c. 15 (1st Supp.), cc. 1, 7, 42 (2nd Supp.), cc. 18, 28, 41, 42 (3rd Supp.), cc. 12, 47 (4th Supp.); 1988, c. 65; 1989, c. 22; 1990, c. 45; 1991, c. 42; 1992, cc. 1, 27, 28, 29; 1993, cc. 25, 27, 28, 38; 1994, cc. 9, 13	EXCISE TAX ACT
	*1. (1) Subsection 2(1) of the Excise Tax Act* is amended by adding the following in alphabetical order:**
``Atlantic manufactured tobacco'' « tabac fabriqué atlantique »	``Atlantic manufactured tobacco'' means manufactured tobacco
	(a) in respect of which the excise taxes imposed under section 23 have been paid or are payable at
	(i) the rates applicable before February 9, 1994,
	(ii) the rates applicable after February 8, 1994 under paragraphs 1(f), 2(d) and 3(e) of Schedule II, or
	(iii) the rate applicable after May 31, 1994 and before September 12, 1994 under paragraph 1(e) of Schedule II, and
	(b) that is marked or stamped ``ATLANTIC'' or ``ATLANTIQUE'' to indicate that it is intended for retail sale in the Provinces of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland but not marked or stamped to indicate that it is intended for retail sale specifically in the Province of Nova Scotia or New Brunswick;
``black stock'' « produit non ciblé »	``black stock'' means manufactured tobacco that is
	(a) stamped in accordance with the Excise Act and the departmental regulations made under that Act to indicate that the duties of excise and excise tax imposed on the manufactured tobacco have been paid, and
	(b) not stamped or marked in accordance with any statute of a province to indicate that the manufactured tobacco is intended for retail sale in a particular province or in particular provinces;
``black stock cigarettes'' « cigarettes non ciblées »	``black stock cigarettes'' means cigarettes that are black stock;
``black stock manufactured tobacco'' « tabac fabriqué non ciblé »	``black stock manufactured tobacco'' means black stock other than cigarettes and tobacco sticks;
``Indian'' « Indien »	``Indian'' means a person who is registered under the Indian Act as an Indian or is entitled to be registered under that Act as an Indian;
``licensed tobacco manufacturer' ' « fabricant de tabac titulaire de licence »	``licensed tobacco manufacturer'' means a tobacco manufacturer, as defined in section 6 of the Excise Act, who is licensed as such under that Act;
	(2) Section 2 of the Act is amended by adding the following after subsection (6):
Atlantic Provinces markings	(7) For the purposes of Parts III and VII and Schedule II, manufactured tobacco that is marked or stamped ``ATLANTIC'' or ``ATLANTIQUE'' to indicate that it is intended for retail sale in the Provinces of Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland shall be deemed not to be marked or stamped in accordance with a statute of the Province of Nova Scotia or New Brunswick to indicate that it is intended for retail sale in that province.
	(3) Subsections (1) and (2) shall be deemed to have come into force on February 11, 1994.
1990, c. 45, s. 2(1)	2. (1) Subparagraph 11(1)(a)(ii) of the Act is replaced by the following:
	(ii) $6 or such lesser amount as may, for the purposes of this subparagraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, and
1990, c. 45, s. 2(2)	(2) Subparagraph 11(2)(a)(ii) of the Act is replaced by the following:
	(ii) $3 in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person, and
	(3) Subsections (1) and (2) shall be deemed to have come into force on May 1, 1994, and shall apply with respect to
	(a) an amount paid or payable in Canada after April 30, 1994 for the transportation of a person by air after that date; and
	(b) an amount paid or payable outside Canada for the transportation of a person by air that includes an emplanement in Canada after April 30, 1994 on a specific flight having as a destination an airport outside Canada and subsequent deplanement by the person from the flight at an airport outside Canada, except where the tax in respect of that transportation has been paid to a licensed air carrier or the carrier's agent before May 1, 1994.
1990, c. 45, s. 3(1)	3. (1) Subparagraph 13(1)(a)(i) of the Act is replaced by the following:
	(i) $50, and
1990, c. 45, s. 3(2)	(2) Subparagraph 13(2)(a)(i) of the Act is replaced by the following:
	(i) $50, and
1990, c. 45, s. 3(3)	(3) Clause 13(2.2)(a)(i)(A) of the Act is replaced by the following:
	(A) $50, and
1990, c. 45, s. 3(3)	(4) Clause 13(2.2)(b)(i)(A) of the Act is replaced by the following:
	(A) $25, and
	(5) Subsections (1) to (4) shall be deemed to have come into force on May 1, 1994, and shall apply with respect to
	(a) an amount paid or payable in Canada after April 30, 1994 for the transportation of a person by air after that date; and
	(b) an amount paid or payable outside Canada for the transportation of a person by air that includes an emplanement in Canada after April 30, 1994 on a specific flight having as a destination an airport outside Canada and subsequent deplanement by the person from the flight at an airport outside Canada, except where the tax in respect of that transportation has been paid to a licensed air carrier or the carrier's agent before May 1, 1994.
1990, c. 45, s. 4(1)	4. (1) Subparagraph 13.1(1)(a)(i) of the Act is replaced by the following:
	(i) the total of 7% of the total of all such amounts and $6, and
	(2) Subsection (1) shall be deemed to have come into force on May 1, 1994, and shall apply with respect to
	(a) an amount paid or payable in Canada after April 30, 1994 for the transportation of a person by air after that date; and
	(b) an amount paid or payable outside Canada for the transportation of a person by air that includes an emplanement in Canada after April 30, 1994 on a specific flight having as a destination an airport outside Canada and subsequent deplanement by the person from the flight at an airport outside Canada, except where the tax in respect of that transportation has been paid to a licensed air carrier or the carrier's agent before May 1, 1994.
1993, c. 25, s. 56	5. (1) Sections 23.1 and 23.2 of the Act are replaced by the following:
Definition of ``tobacco product''	23.1 In sections 23.2 to 23.3, ``tobacco product'' means manufactured tobacco other than cut filler, cut rag or products manufactured less fully than cut filler or cut rag.
Tax on exports	23.2 (1) Where tobacco products manufactured or produced in Canada are exported from Canada after February 8, 1994 by the manufacturer or producer, there shall be imposed, levied and collected in respect of the tobacco products, in addition to any other duty or tax payable under this Act or any other Act or law, an excise tax at the rate of
	(a) 4 cents per cigarette, in the case of cigarettes;
	(b) 2.667 cents per stick, in the case of tobacco sticks; and
	(c) $26.667 per kilogram, in the case of tobacco products other than cigarettes or tobacco sticks.
When and by whom tax is payable	(2) The tax imposed under subsection (1) is payable by the manufacturer or producer of the tobacco products at the time the tobacco products are exported from Canada.
Categories of tobacco products	23.21 (1) In subsections (2) and (3), cigarettes, tobacco sticks, and manufactured tobacco other than cigarettes and tobacco sticks each constitute a category of tobacco product.
Exemption for limited exports	(2) The excise tax imposed under subsection 23.2(1) is not payable by a manufacturer or producer in respect of a particular quantity of a category of tobacco product exported at a time in a calendar year if the total quantity of that category of tobacco product, including the particular quantity, exported by the manufacturer or producer after February 8, 1994 and in the calendar year up to and including that time does not exceed 3 per cent of the total quantity of that category of tobacco product manufactured or produced by the manufacturer or producer in the preceding calendar year.
Quantities to be excluded for purpose of subsection (2 )	(3) The total quantities referred to in subsection (2) shall not include any quantity of tobacco product in respect of which the excise tax imposed under subsection 23.2(1) was repaid under section 68.161 or was not payable because of section 23.3.
	(2) Subsection (1) shall be deemed to have come into force on February 9, 1994.
	(3) For the purposes of the provisions of the Act that provide for the payment of, or liability to pay, any interest, subsection (1) shall be deemed to have come into force as if this Act had been assented to on February 9, 1994.
	6. (1) The Act is amended by adding the following after section 23.3:
Tax on tobacco sold to purchaser not authorized to resell in Ont. or N.B.	23.31 (1) An excise tax shall be imposed, levied and collected on manufactured tobacco that is
	(a) marked or stamped in accordance with a statute of the Province of Ontario or New Brunswick to indicate that it is intended for retail sale in the province; and
	(b) sold by the manufacturer of the manufactured tobacco, or by a person who is authorized under a statute of the province to sell manufactured tobacco in the province, to a purchaser who is not authorized under a statute of the province to sell manufactured tobacco in the province.
Where tax not imposed	(2) Tax shall not be imposed under subsection (1) where the purchaser referred to in that subsection is a consumer located in the province referred to in that subsection and the purchase is for consumption by the purchaser or by others at the expense of the purchaser.
When and by whom tax is payable	(3) The tax imposed under subsection (1) is payable by the person selling the manufactured tobacco to the purchaser referred to in that subsection and is payable at the time of the sale.
Amount of tax	(4) The tax imposed on manufactured tobacco under subsection (1) shall be equal to the amount by which
	(a) the excise tax that would have been imposed under section 23 in respect of the manufactured tobacco if the applicable rates of excise tax were the rates set out in paragraphs 1(f), 2(d) and 3(e) of Schedule II
	exceeds
	(b) the excise tax that was imposed under section 23 in respect of the manufactured tobacco.
Tax on tobacco sold to purchaser not authorized to resell in Quebec	23.32 (1) An excise tax shall be imposed, levied and collected on cigarettes and tobacco sticks that are
	(a) marked or stamped in accordance with a statute of the Province of Quebec to indicate that they are intended for retail sale in the province; and
	(b) sold by the manufacturer of them, or by a person who is authorized under a statute of the province to sell manufactured tobacco in the province, to a purchaser who is not authorized under a statute of the province to sell manufactured tobacco in the province.
Where tax not imposed	(2) Tax shall not be imposed under subsection (1) where the purchaser referred to in that subsection is a consumer in the Province of Quebec and the purchase is for consumption by the purchaser or by others at the expense of the purchaser.
When and by whom tax is payable	(3) The tax imposed under subsection (1) is payable by the person selling the cigarettes or tobacco sticks to the purchaser referred to in that subsection and is payable at the time of the sale.
Amount of tax	(4) The tax imposed on cigarettes and tobacco sticks under subsection (1) shall be equal to the amount by which
	(a) the excise tax that would have been imposed under section 23 in respect of them if the applicable rates of excise tax were the rates set out in paragraphs 1(f) and 2(d) of Schedule II
	exceeds
	(b) the excise tax that was imposed under section 23 in respect of them.
Tax on tobacco sold to purchaser not authorized to resell in Nova Scotia	23.33 (1) An excise tax shall be imposed, levied and collected on manufactured tobacco, other than tobacco sticks, that is
	(a) marked or stamped in accordance with a statute of the Province of Nova Scotia to indicate that it is intended for retail sale in the province; and
	(b) sold by the manufacturer of the manufactured tobacco, or by a person who is authorized under a statute of the province to sell manufactured tobacco in the province, to a purchaser who is not authorized under a statute of the province to sell manufactured tobacco in the province.
Where tax not imposed	(2) Tax shall not be imposed under subsection (1) where the purchaser referred to in that subsection is a consumer located in the Province of Nova Scotia and the purchase is for consumption by the purchaser or by others at the expense of the purchaser.
When and by whom tax is payable	(3) The tax imposed under subsection (1) is payable by the person selling the manufactured tobacco to the purchaser referred to in that subsection and is payable at the time of the sale.
Amount of tax	(4) The tax imposed on manufactured tobacco under subsection (1) shall be equal to the amount by which
	(a) the excise tax that would have been imposed under section 23 in respect of the manufactured tobacco if the applicable rates of excise tax were the rates set out in paragraphs 1(f) and 3(e) of Schedule II
	exceeds
	(b) the excise tax that was imposed under section 23 in respect of the manufactured tobacco.

Bill C-32

42-43 ELIZABETH II

CHAPTER 29

PART I

EXCISE TAX ACT