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1. Cigarettes:
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(a) $0.01888 for each five cigarettes or
fraction of five cigarettes contained in any
package, where
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(i) the cigarettes are marked or stamped
in accordance with the Tobacco Tax Act,
R.S.O. 1990, c. T.10, to clearly indicate
that the cigarettes are intended for retail
sale in the Province of Ontario, or
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(ii) the cigarettes are black stock
delivered after March 25, 1994 by the
manufacturer or producer of the
cigarettes to a supplier who has a permit
under section 9 of the Tobacco Tax Act,
R.S.O. 1990, c. T.10, to sell black stock
cigarettes and the supplier certifies to the
manufacturer or producer, in any form
and manner authorized by the Minister,
that the cigarettes are intended for resale
in accordance with that Act to on-reserve
retailers (as defined in subsection
23.35(1));
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(b) $0.00888 for each five cigarettes or
fraction of five cigarettes contained in any
package, where the cigarettes are marked or
stamped in accordance with the Tobacco
Tax Act, R.S.Q. 1977, c. I-2, to clearly
indicate that the cigarettes are intended for
retail sale in the Province of Quebec;
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(c) $0.08388 for each five cigarettes or
fraction of five cigarettes contained in any
package, where
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(i) the cigarettes are marked or stamped
in accordance with the Tobacco Tax Act,
R.S.N.S. 1989, c. 470, to clearly indicate
that the cigarettes are intended for retail
sale in the Province of Nova Scotia, or
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(ii) the cigarettes are black stock
delivered after April 14, 1994 by the
manufacturer or producer of the
cigarettes to a designated wholesale
vendor (as defined in subsection
23.36(1)) and the designated wholesale
vendor certifies to the manufacturer or
producer, in any form and manner
authorized by the Minister, that the
cigarettes are intended for resale to
designated retail vendors (as defined in
subsection 23.36(1));
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(d) $0.08388 for each five cigarettes or
fraction of five cigarettes contained in any
package, where the cigarettes are marked or
stamped in accordance with the Tobacco
Tax Act, R.S.N.B. 1973, c. T-7, to clearly
indicate that the cigarettes are intended for
retail sale in the Province of New
Brunswick;
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(e) $0.08388 for each five cigarettes or
fraction of five cigarettes contained in any
package, where
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(A) are marked or stamped
``ATLANTIC'' or ``ATLANTIQUE''
in accordance with the Health Tax Act,
R.S.P.E.I. 1988, c. H-3, but not marked
or stamped to indicate that they are
intended for retail sale in a particular
province, and are delivered after
May 31, 1994 and before September
12, 1994 by the manufacturer or
producer of the cigarettes to a
wholesale vendor licensed as such
under that Act, or
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(B) are black stock delivered after
August 31, 1994 by the manufacturer
or producer of the cigarettes to a
wholesale vendor licensed as such
under that Act, and
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(ii) the wholesale vendor certifies to the
manufacturer or producer, in any form
and manner authorized by the Minister,
that the cigarettes are intended for retail
sale in the Province of Prince Edward
Island in accordance with that Act; and
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(f) $0.13388 for each 5 cigarettes or fraction
of 5 cigarettes contained in any package, in
any other case.
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2. Tobacco sticks:
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(a) $0.00165 per stick, where
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(i) the tobacco sticks are marked or
stamped in accordance with the Tobacco
Tax Act, R.S.O. 1990, c. T.10, to clearly
indicate that the tobacco sticks are
intended for retail sale in the Province of
Ontario, or
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(ii) the tobacco sticks are black stock
delivered after March 25, 1994 by the
manufacturer or producer of the tobacco
sticks to a supplier who has a permit
under section 9 of the Tobacco Tax Act,
R.S.O. 1990, c. T.10, to sell black stock
cigarettes and the supplier certifies to the
manufacturer or producer, in any form
and manner authorized by the Minister,
that the tobacco sticks are intended for
resale in accordance with that Act to
on-reserve retailers (as defined in
subsection 23.35(1));
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(b) $0.00165 per stick, where the tobacco
sticks are marked or stamped in accordance
with the Tobacco Tax Act, R.S.Q. 1977,
c. I-2, to clearly indicate that the tobacco
sticks are intended for retail sale in the
Province of Quebec;
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(c) $0.00575 per stick, where the tobacco
sticks are marked or stamped in accordance
with the Tobacco Tax Act, R.S.N.B. 1973,
c. T-7, to clearly indicate that the tobacco
sticks are intended for retail sale in the
Province of New Brunswick; and
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(d) $0.01065 per stick, in any other case.
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3. Manufactured tobacco other than
cigarettes and tobacco sticks:
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(a) $1.648 per kilogram, where
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(i) the manufactured tobacco is marked
or stamped in accordance with the
Tobacco Tax Act, R.S.O. 1990, c. T.10, to
clearly indicate that the manufactured
tobacco is intended for retail sale in the
Province of Ontario, or
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(ii) the manufactured tobacco is black
stock delivered after March 25, 1994 by
the manufacturer or producer of the
manufactured tobacco to a supplier who
has a permit under section 9 of the
Tobacco Tax Act, R.S.O. 1990, c. T.10, to
sell black stock cigarettes and the
supplier certifies to the manufacturer or
producer, in any form and manner
authorized by the Minister, that the
manufactured tobacco is intended for
resale in accordance with that Act to
on-reserve retailers (as defined in
subsection 23.35(1));
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(b) $7.948 per kilogram, where
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(i) the manufactured tobacco is marked
or stamped in accordance with the
Tobacco Tax Act, R.S.N.S. 1989, c. 470,
to clearly indicate that the manufactured
tobacco is intended for retail sale in the
Province of Nova Scotia, or
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(ii) the manufactured tobacco is black
stock delivered after April 14, 1994 by
the manufacturer or producer of the
manufactured tobacco to a designated
wholesale vendor (as defined in
subsection 23.36(1)) and the designated
wholesale vendor certifies to the
manufacturer or producer, in any form
and manner authorized by the Minister,
that the manufactured tobacco is
intended for resale to designated retail
vendors (as defined in subsection
23.36(1));
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(c) $9.448 per kilogram, where the
manufactured tobacco is marked or
stamped in accordance with the Tobacco
Tax Act, R.S.N.B. 1973, c. T-7, to clearly
indicate that the manufactured tobacco is
intended for retail sale in the Province of
New Brunswick;
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(d) $7.948 per kilogram, where
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(i) the manufactured tobacco is black
stock delivered after May 31, 1994 by the
manufacturer or producer of the
manufactured tobacco to a wholesale
vendor licensed as such under the Health
Tax Act, R.S.P.E.I. 1988, c. H-3, and
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(ii) the wholesale vendor certifies to the
manufacturer or producer, in any form
and manner authorized by the Minister,
that the manufactured tobacco is
intended for retail sale in the Province of
Prince Edward Island in accordance with
that Act; and
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(e) $10.648 per kilogram, in any other case.
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4. Cigars, the greater of $0.03947 per cigar
and 50 per cent.
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(2) Subject to subsection (3),
subsection (1) shall be deemed to have
come into force on February 9, 1994, except
that
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(a) paragraphs 1(a), 2(a) and 3(a) of
Schedule II to the Act, as enacted by
subsection (1), shall be deemed to have
come into force on February 22, 1994;
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(b) paragraphs 1(d), 2(c) and 3(c) of
Schedule II to the Act, as enacted by
subsection (1), shall be deemed to have
come into force on February 11, 1994;
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(c) paragraphs 1(c) and 3(b) of
Schedule II to the Act, as enacted by
subsection (1), shall be deemed to have
come into force on April 15, 1994; and
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(d) paragraphs 1(e) and 3(d) of
Schedule II to the Act, as enacted by
subsection (1), come into force or shall
be deemed to have come into force on
June 1, 1994.
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(3) For the purpose of section 240 of the
Excise Act,
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(a) subsection (1) shall not be deemed to
have come into force before the day on
which this Act is assented to; and
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(b) the amendments to Schedule II to the
Excise Tax Act, as enacted by
subsection (1), shall be deemed not to
apply to manufactured tobacco delivered
before the day on which this Act is
assented to.
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R.S., c. E-14;
R.S., cc. 15,
27 (1st
Supp.), cc. 1,
7, 42 (2nd
Supp.), c. 12
(4th Supp);
1989, c. 22;
1990, c. 45;
1991, c. 42;
1993, c. 25;
1994, c. 13
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| 1993, c. 25,
s. 52
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15. Subsection 240(1) of the Excise Act is
replaced by the following:
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| Unlawful sale
or possession
of
manufactured
tobacco or
cigars
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240. (1) Subject to subsections (2) and (3),
every person who sells or offers for sale or has
in the person's possession any manufactured
tobacco or cigars, whether manufactured in or
imported into Canada, not put up in packages
and stamped with tobacco stamps or cigar
stamps in accordance with this Act and the
departmental regulations,
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(a) is guilty of an indictable offence and
liable to
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(i) a fine of not less than the amount
determined under subsection (1.1) and
not more than the amount determined
under subsection (1.2), or
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(ii) both the fine described in
subparagraph (i) and imprisonment for a
term not exceeding 5 years; or
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(b) is guilty of an offence punishable on
summary conviction and liable to
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(i) a fine of not less than the amount
determined under subsection (1.1) and
not more than the lesser of $500,000 and
the amount determined under subsection
(1.2), or
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(ii) both the fine described in
subparagraph (i) and imprisonment for a
term not exceeding two years.
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| Minimum
amount
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(1.1) The amount determined under this
subsection for an offence under subsection (1)
in relation to manufactured tobacco or cigars
is the greater of
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(i) $0.16 multiplied by the number of
cigarettes, if any, to which the offence
relates,
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(ii) $0.11 multiplied by the number of
tobacco sticks, if any, to which the
offence relates,
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(iii) $0.11 multiplied by the number of
grams of manufactured tobacco, if any,
other than cigarettes or tobacco sticks, to
which the offence relates, and
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(iv) $0.16 multiplied by the number of
cigars, if any, to which the offence
relates, and
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(b) $1,000 in the case of an indictable
offence and $500 in the case of an offence
punishable on summary conviction.
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| Maximum
amount
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(1.2) The amount determined under this
subsection for an offence under subsection (1)
in relation to manufactured tobacco or cigars
is the greater of
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(i) $0.24 multiplied by the number of
cigarettes, if any, to which the offence
relates,
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(ii) $0.16 multiplied by the number of
tobacco sticks, if any, to which the
offence relates,
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(iii) $0.16 multiplied by the number of
grams of manufactured tobacco, if any,
other than cigarettes or tobacco sticks, to
which the offence relates, and
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(iv) $0.50 multiplied by the number of
cigars, if any, to which the offence
relates, and
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(b) $1,000 in the case of an indictable
offence and $500 in the case of an offence
punishable on summary conviction.
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| R.S., c. 1 (5th
Supp.); 1994,
cc. 7, 8, 13
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16. (1) The Income Tax Act is amended by
adding the following after Part I.3:
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| Surtax
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182. (1) Every corporation shall pay a tax
under this Part for each taxation year equal to
40% of that proportion of the corporation's
Part I tax on tobacco manufacturing profits for
the year that
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(a) the number of days in the year that are
after February 8, 1994 and before
February 9, 1997
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is of
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(b) the number of days in the year.
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| Definitions
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(2) In this Part,
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``Part I tax on
tobacco
manufacturin
g profits''
« impôt de la
partie I sur
les bénéfices
de fabrication
du tabac »
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``Part I tax on tobacco manufacturing profits''
of a corporation for a taxation year means
21% of the amount determined by the
formula
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(A x B ) - D
C
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A is the amount that would be the
corporation's Canadian manufacturing
and processing profits for the year, within
the meaning assigned by subsection
125.1(3), if the total of all amounts, each
of which is the corporation's loss for the
year from an active business, other than
tobacco manufacturing, carried on by it
in Canada, were equal to the lesser of
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(a) that total otherwise determined,
and
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(b) the total of all amounts, each of
which is the amount of the
corporation's income for the year from
an active business, other than tobacco
manufacturing, carried on by it in
Canada,
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B is the corporation's tobacco
manufacturing capital and labour cost for
the year,
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C is the total of the corporation's cost of
manufacturing and processing capital for
the year and its cost of manufacturing and
processing labour for the year, within the
meanings assigned by regulations made
for the purposes of section 125.1, and
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(a) where the corporation is a
Canadian-controlled private
corporation throughout the year, the
corporation's business limit for the
year as determined for the purpose of
section 125, and
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(b) in any other case, nil;
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``tobacco
manufacturin
g''
« fabrication
du tabac »
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``tobacco manufacturing'' means any activity
(other than farming) relating to the
manufacture or processing in Canada of
tobacco or tobacco products in or into any
form that is, or would after any further
activity become, suitable for smoking;
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``tobacco
manufacturin
g capital and
labour cost''
« coût en
capital et en
main-d'oeuvr
e lié a la
fabrication du
tabac »
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``tobacco manufacturing capital and labour
cost'' of a corporation for a taxation year
means the total of the amounts that would
be the corporation's cost of manufacturing
and processing capital for the year and its
cost of manufacturing and processing
labour for the year, within the meanings
assigned by regulations made for the
purpose of section 125.1, if the
manufacturing or processing referred to in
the definition ``qualified activities'' in
those regulations were tobacco
manufacturing.
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