E is the number of cigarettes that are Atlantic manufactured tobacco sold and delivered by the licensed wholesale vendor in the three-month period ending on March 25, 1994, and
	F is the number of cigarettes that are Atlantic manufactured tobacco held at the beginning of March 26, 1994 in the inventories of the licensed wholesale vendor at the retail outlets of the licensed wholesale vendor in the Province of Prince Edward Island, where the licensed wholesale vendor is also a licensed retail vendor, and
	(ii) the greater of
	(A) 1,000,000 cigarettes, and
	(B) the number of cigarettes obtained by multiplying 200,000 cigarettes by the number of separate retail establishments of the licensed wholesale vendor in the Province of Prince Edward Island on March 26, 1994,
	(b) the number of tobacco sticks, if any, determined by the formula
	G - (H x J ) - L K
	where
	G is the number of tobacco sticks that are Atlantic manufactured tobacco sold and delivered by the licensed wholesale vendor to licensed retail vendors after March 25, 1994 and before June 1, 1994,
	H is the number of tobacco sticks that are Atlantic manufactured tobacco held in the inventory of the licensed wholesale vendor at the beginning of March 26, 1994 other than at a retail outlet of the licensed wholesale vendor,
	J is the number of tobacco sticks that are Atlantic manufactured tobacco sold and delivered by the licensed wholesale vendor to licensed retail vendors in the three-month period ending on March 25, 1994,
	K is the number of tobacco sticks that are Atlantic manufactured tobacco sold and delivered by the licensed wholesale vendor in the three-month period ending on March 25, 1994, and
	L is the number of tobacco sticks that are Atlantic manufactured tobacco held at the beginning of March 26, 1994 in the inventories of the licensed wholesale vendor at the retail outlets of the licensed wholesale vendor in the Province of Prince Edward Island, where the licensed wholesale vendor is also a licensed retail vendor, and
	(c) the number of grams of black stock manufactured tobacco, if any, determined by the formula
	M + (N x P ) - (R x S ) - U Q T
	where
	M is the number of grams of black stock manufactured tobacco sold and delivered by the licensed wholesale vendor to licensed retail vendors after March 25, 1994 and before June 1, 1994,
	N is the number of grams of black stock manufactured tobacco held in the inventory of the licensed wholesale vendor at the beginning of June 1, 1994 other than at a retail outlet of the licensed wholesale vendor,
	P is the number of grams of black stock manufactured tobacco sold and delivered by the licensed wholesale vendor to licensed retail vendors in the three-month period ending on the reference date,
	Q is the number of grams of black stock manufactured tobacco sold and delivered by the licensed wholesale vendor in the three-month period ending on the reference date,
	R is the number of grams of black stock manufactured tobacco held in the inventory of the licensed wholesale vendor at the beginning of March 26, 1994 other than at a retail outlet of the licensed wholesale vendor,
	S is the number of grams of black stock manufactured tobacco sold and delivered by the licensed wholesale vendor to licensed retail vendors in the three-month period ending on March 25, 1994,
	T is the number of grams of black stock manufactured tobacco sold and delivered by the licensed wholesale vendor in the three-month period ending on March 25, 1994, and
	U is the number of grams of black stock manufactured tobacco held at the beginning of March 26, 1994 in the inventories of the licensed wholesale vendor at the retail outlets of the licensed wholesale vendor in the Province of Prince Edward Island, where the licensed wholesale vendor is also a licensed retail vendor.
New wholesale vendor	(6) Where a person has become a licensed wholesale vendor after April 14, 1994 and before June 1, 1994, paragraph (3)(g) does not apply in respect of the licensed wholesale vendor and the references in subsection (5) to ``the reference date'' shall be read as ``May 31, 1994''.
Where vendor sells wholesale and retail	(7) For the purposes of this section, where a licensed wholesale vendor is also a licensed retail vendor
	(a) the Atlantic manufactured tobacco and black stock manufactured tobacco held at the beginning of March 26, 1994 in the inventory of the licensed wholesale vendor at a retail outlet of the licensed wholesale vendor in the Province of Prince Edward Island shall be deemed to have been sold and delivered by the licensed wholesale vendor to licensed retail vendors immediately after the beginning of March 26, 1994; and
	(b) the Atlantic manufactured tobacco or black stock manufactured tobacco that is delivered by or on behalf of the licensed wholesale vendor to a retail outlet of the licensed wholesale vendor in the Province of Prince Edward Island shall be deemed to be sold and delivered by the licensed wholesale vendor to a licensed retail vendor at the time it is delivered to that retail outlet.
Definitions	68.168 (1) In this section,
``inventory'' « stock »	``inventory'' of a person at any time means the goods that are owned at that time by the person and are for sale at that time in the ordinary course of the person's business;
``licensed retail vendor'' « vendeur au détail titulaire de licence »	``licensed retail vendor'' means a retail vendor licensed as such under the Health Tax Act, R.S.P.E.I. 1988, c. H-3;
``licensed wholesale vendor'' « vendeur en gros titulaire de licence »	``licensed wholesale vendor'' means a wholesale vendor licensed as such under the Health Tax Act, R.S.P.E.I. 1988, c. H-3;
``separate retail establishment' ' « établisseme nt de détail distinct »	``separate retail establishment'' of a person means a retail establishment of the person that is geographically separate from other places of business of the person and at which, in the ordinary course of the person's business, the person regularly sells manufactured tobacco to consumers.
Reference date	(2) The reference date referred to in subsection (5) is the reference date specified as required under paragraph (3)(g).
Application of subsection (4 )	(3) Subsection (4) applies where
	(a) a licensed wholesale vendor makes an application for the purposes of this section to a licensed tobacco manufacturer for a reduction in the amount payable, or a refund of an amount paid, by the licensed wholesale vendor for manufactured tobacco that the licensed tobacco manufacturer has sold to the licensed wholesale vendor;
	(b) only one such application is made by the licensed wholesale vendor to the licensed tobacco manufacturer;
	(c) the licensed wholesale vendor determines the licensed wholesale vendor's inventory at the beginning of June 1, 1994 of cigarettes that are Atlantic manufactured tobacco;
	(d) the licensed wholesale vendor specifies in the application a number of cigarettes that are Atlantic manufactured tobacco held in the inventory of the licensed wholesale vendor at the beginning of June 1, 1994;
	(e) the number of cigarettes specified in the application by the licensed wholesale vendor has not been specified in any other application made by the licensed wholesale vendor for a reduction or refund in respect of which any other licensed tobacco manufacturer is entitled to a deduction under subsection (4);
	(f) the total of the number of cigarettes specified in the application and all other numbers of cigarettes specified by the licensed wholesale vendor in applications to other licensed tobacco manufacturers for reductions or refunds in respect of which the other licensed tobacco manufacturers are entitled to deductions under subsection (4) does not exceed the total number of cigarettes determined under subsection (5) in relation to the licensed wholesale vendor;
	(g) the licensed wholesale vendor specifies in the application either February 10, 1994 or April 14, 1994 as the reference date for the purposes of all applications each of which is an application by the licensed wholesale vendor for a reduction or refund in respect of which a licensed tobacco manufacturer may be entitled to a deduction under subsection (4), 68.165(4), 68.166(4) or 68.167(4);
	(h) the application is made before January 1995, in any form and manner that is authorized by the Minister;
	(i) the application is approved by the Treasurer of the Province of Prince Edward Island; and
	(j) in response to the application, the licensed tobacco manufacturer makes a reduction in the amount payable, or a refund of an amount paid, by the licensed wholesale vendor for manufactured tobacco.
Deduction from excise tax payable	(4) Where this subsection applies, there may be deducted, in computing the excise taxes payable under section 23 by the licensed tobacco manufacturer within two years after the reduction or refund referred to in paragraph (3)(j), an amount equal to the lesser of the amount of the reduction or refund and the amount determined by multiplying $0.01 by the number of cigarettes specified by the licensed wholesale vendor as required under paragraph (3)(d).
Limit on specified quantity	(5) For the purposes of paragraph (3)(f), the total number of cigarettes determined under this subsection in relation to a licensed wholesale vendor is
	(a) where the number of cigarettes that are Atlantic manufactured tobacco determined by the formula ``A - B'' in paragraph 68.167(5)(a) in relation to the licensed wholesale vendor is zero or greater than zero, the number of cigarettes determined by the formula
	C x D E
	where
	C is the number of cigarettes that are Atlantic manufactured tobacco held in the inventory of the licensed wholesale vendor at the beginning of June 1, 1994,
	D is the number of cigarettes that are Atlantic manufactured tobacco sold and delivered by the licensed wholesale vendor to licensed retail vendors in the three-month period ending on the reference date, and
	E is the number of cigarettes that are Atlantic manufactured tobacco sold and delivered by the licensed wholesale vendor in the three-month period ending on the reference date; and
	(b) in any other case, the number of cigarettes, if any, determined by the formula
	F + (G x H ) - K J
	where
	F is the number of cigarettes that are Atlantic manufactured tobacco sold and delivered by the licensed wholesale vendor to licensed retail vendors after March 25, 1994 and before June 1, 1994,
	G is the number of cigarettes that are Atlantic manufactured tobacco held in the inventory of the licensed wholesale vendor at the beginning of June 1, 1994 other than at a retail outlet of the licensed wholesale vendor,
	H is the number of cigarettes that are Atlantic manufactured tobacco sold and delivered by the licensed wholesale vendor to licensed retail vendors in the three-month period ending on the reference date,
	J is the number of cigarettes that are Atlantic manufactured tobacco sold and delivered by the licensed wholesale vendor in the three-month period ending on the reference date, and
	K is the lesser of
	(i) the number of cigarettes determined by the formula
	(L x M ) + P N
	where
	L is the number of cigarettes that are Atlantic manufactured tobacco held in the inventory of the licensed wholesale vendor at the beginning of March 26, 1994 other than at a retail outlet of the licensed wholesale vendor,
	M is the number of cigarettes that are Atlantic manufactured tobacco sold and delivered by the licensed wholesale vendor to licensed retail vendors in the three-month period ending on March 25, 1994,
	N is the number of cigarettes that are Atlantic manufactured tobacco sold and delivered by the licensed wholesale vendor in the three-month period ending on March 25, 1994, and
	P is the number of cigarettes that are Atlantic manufactured tobacco held at the beginning of March 26, 1994 in the inventories of the licensed wholesale vendor at the retail outlets of the licensed wholesale vendor in the Province of Prince Edward Island, where the licensed wholesale vendor is also a licensed retail vendor, and
	(ii) the greater of
	(A) 1,000,000 cigarettes, and
	(B) the number of cigarettes obtained by multiplying 200,000 cigarettes by the number of separate retail establishments of the licensed wholesale vendor in the Province of Prince Edward Island on March 26, 1994.
New wholesale vendor	(6) Where a person has become a licensed wholesale vendor after April 14, 1994 and before June 1, 1994, paragraph (3)(g) does not apply in respect of the licensed wholesale vendor and the references in subsection (5) to ``the reference date'' shall be read as ``May 31, 1994''.
Where vendor sells wholesale and retail	(7) For the purposes of this section, where a licensed wholesale vendor is also a licensed retail vendor
	(a) the cigarettes that are Atlantic manufactured tobacco held at the beginning of March 26, 1994 in the inventory of the licensed wholesale vendor at a retail outlet of the licensed wholesale vendor in the Province of Prince Edward Island shall be deemed to have been sold and delivered by the licensed wholesale vendor to licensed retail vendors immediately after the beginning of March 26, 1994; and
	(b) the cigarettes that are Atlantic manufactured tobacco delivered by or on behalf of the licensed wholesale vendor to a retail outlet of the licensed wholesale vendor in the Province of Prince Edward Island shall be deemed to be sold and delivered by the licensed wholesale vendor to a licensed retail vendor at the time they are delivered to that retail outlet.
Definitions	68.169 (1) In this section,
``licensed retail vendor'' « vendeur au détail titulaire de licence »	``licensed retail vendor'' means a retail vendor licensed as such under the Health Tax Act, R.S.P.E.I. 1988, c. H-3;
``licensed wholesale vendor'' « vendeur en gros titulaire de licence »	``licensed wholesale vendor'' means a wholesale vendor licensed as such under the Health Tax Act, R.S.P.E.I. 1988, c. H-3.
Rebate to P.E.I. Atlantic manufactured tobacco wholesaler	(2) Where a licensed wholesale vendor has, after May 31, 1994, sold cigarettes or tobacco sticks that are Atlantic manufactured tobacco to a licensed retail vendor, or to a consumer in the Province of Prince Edward Island for consumption by the consumer or by others at the expense of the consumer, the Minister may pay to the licensed wholesale vendor a tax rebate equal to the total of
	(a) $0.01125 multiplied by the number of those cigarettes, and
	(b) $0.009 multiplied by the number of those tobacco sticks.
Rebate to P.E.I. black stock wholesaler	(3) Where a licensed wholesale vendor has sold, after August 1994, cigarettes or tobacco sticks that are black stock to a licensed retail vendor, or to a consumer in the Province of Prince Edward Island for consumption by the consumer or by others at the expense of the consumer, the Minister may pay to the licensed wholesale vendor a tax rebate equal to the total of
	(a) $0.01125 multiplied by the number of those cigarettes, and
	(b) $0.009 multiplied by the number of those tobacco sticks.
Conditions for rebate	(4) To qualify to receive a rebate under subsection (2) or (3) in respect of cigarettes or tobacco sticks, the licensed wholesale vendor must
	(a) apply to the Minister for the rebate, within two years after the sale of the cigarettes or tobacco sticks by the licensed wholesale vendor, in any form and manner that is authorized by the Minister; and