42-43-44 ELIZABETH II

CHAPTER 36

An Act to amend the Excise Tax Act and the Excise Act

[Assented to 8th November, 1995]

      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, 21, 29, 41

EXCISE TAX ACT

1994, c. 29, s. 3(1)

1. (1) Subparagraph 13(1)(a)(i) of the Excise Tax Act is replaced by the following:

      (i) $ 55, and

1994, c. 29, s. 3(2)

(2) Subparagraph 13(2)(a)(i) of the Act is replaced by the following:

      (i) $ 55, and

1994, c. 29, s. 3(3)

(3) Clause 13(2.2)(a)(i)(A) of the Act is replaced by the following:

        (A) $ 55, and

1994, c. 29, s. 3(4)

(4) Clause 13(2.2)(b)(i)(A) of the Act is replaced by the following:

        (A) $ 27.50, and

(5) Subsections (1) to (4) come into force or are deemed to have come into force on May 1, 1995, and apply with respect to

    (a) amounts paid or payable in Canada after April 1995, 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 1995, 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 1995.

1994, c. 29, s. 6(1)

2. Subsection 23.33(2) of the Act is replaced by the following:

Where tax not imposed

(2) Tax shall not be imposed under subsection (1) where the purchaser referred to in that subsection is

    (a) a consumer located in the Province of Nova Scotia or the Province of Prince Edward Island and the purchase is for consumption by the purchaser or by others at the expense of the purchaser; or

    (b) a person authorized under a statute of the Province of Prince Edward Island to sell manufactured tobacco in that province.

3. (1) The portion of subsection 23.34(1) of the Act before the definition ``licensed retail vendor'' is replaced by the following:

Definitions

23.34 (1) In this section and section 23.341,

(2) Subsection 23.34(1) of the Act is amended by adding the following in alphabetical order:

``Nova Scotia manufactured tobacco''
« tabac fabriqué de la Nouvelle-Écos se »

``Nova Scotia manufactured tobacco'' means manufactured tobacco that is marked or stamped in accordance with the Tobacco Tax Act, R.S.N.S. 1989, c. 470, to indicate that the manufactured tobacco is intended for retail sale in the Province of Nova Sco tia.

1994, c. 29, s. 6(1)

(3) The portion of subsection 23.34(2) of the Act before paragraph (a) is replaced by the following:

Excise tax on diverted P.E.I tobacco

(2) An excise tax shall be imposed, levied and collected on manufactured tobacco, other than tobacco sticks, that is Atlantic manufactured tobacco, black stock or Nova Scotia manufactured tobacco, to which paragraph 1(e) or 3(d) of Schedule II applies and that a licensed wholesale vendor sells to a person other than

4. The Act is amended by adding the following after section 23.34:

Excise tax on diverted Nova Scotia tobacco

23.341 (1) An excise tax shall be imposed, levied and collected on Nova Scotia manufactured tobacco, to which section 68.169 and paragraph 1(e) or 3(d) of Schedule II apply, that a licensed retail vendor sells to a person other than

    (a) a licensed retail vendor; or

    (b) a consumer in the Province of Prince Edward Island for consumption by the consumer or by others at the expense of the consumer.

When and by whom tax payable

(2) The tax imposed under subsection (1) is payable by the licensed retail vendor at the time of the sale.

Amount of tax

(3) The tax imposed 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 imposed at the rates of

      (i) $0.05263 per five cigarettes, in the case of cigarettes,

      (ii) $0.00325 per tobacco stick, in the case of tobacco sticks, and

      (iii) $7.948 per kilogram, in the case of manufactured tobacco other than ciga rettes and tobacco sticks.

R.S., c. 7 (2nd Supp.), s. 34(1)

5. The portion of subsection 68.16(6) of the Act before paragraph (a) is replaced by the following:

To whom payment made

(6) Where a person has purchased gasoline or aviation gasoline in respect of which tax under Part III has been paid and has recovered the cost of that gasoline or aviation gasoline, or any part thereof, from, in the case of gasoline, a person described in any of paragraphs (1)(a) to (g.3) or, in the case of aviation gasoline, a person described in any of paragraphs (2)(a) to (c), for the purpose of paying an amount pursuant to subsection (1) or (2), the Governor in Council may, by regulation, determine

6. (1) Subsection 68.169(1) of the Act is amended by adding the following in alphabetical order:

``Nova Scotia cigarettes''
« cigarettes de la Nouvelle-Écos se »

``Nova Scotia cigarettes'' means cigarettes that are marked or stamped in accordance with the Tobacco Tax Act, R.S.N.S. 1989, c. 470, to indicate that the cigarettes are in tended for retail sale in the Province of Nova Scotia;

``Nova Scotia tobacco sticks''
« bâtonnets de tabac de la Nouvelle-Écos se »

``Nova Scotia tobacco sticks'' means tobacco sticks that are marked or stamped in accor dance with the Tobacco Tax Act, R.S.N.S. 1989, c. 470, to indicate that the tobacco sticks are intended for retail sale in the Province of Nova Scotia.

1994, c. 29, s. 7(1)

(2) Subsections 68.169(2) to (5) of the Act are replaced by the following:

Rebate to P.E.I. Atlantic manufactured tobacco wholesaler

(2) Where a licensed wholesale vendor has sold, after May 1994 and before April 1995, 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 after March 1995

(2.1) Where a licensed wholesale vendor has sold, after March 1995 and before June 1995, 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) $0.00625 multiplied by the number of those cigarettes, and

    (b) $0.0074 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 and before April 1995, 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.

Rebate after March 1995

(3.1) Where a licensed wholesale vendor has sold, after March 1995 and before the first day of the fifth month following the month in which the Act that enacts this subsection is assented to, 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) $0.00625 multiplied by the number of those cigarettes, and

    (b) $0.0074 multiplied by the number of those tobacco sticks.

Rebate to P.E.I. wholesaler

(3.2) Where, after the day on which the Act that enacts this subsection is assented to, a licensed wholesale vendor sells Nova Scotia cigarettes or Nova Scotia tobacco sticks 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) $0.00625 multiplied by the number of those cigarettes, and

    (b) $0.0074 multiplied by the number of those tobacco sticks.

Conditions for rebate

(4) To qualify to receive a rebate under any of subsections (2) to (3.2) 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

    (b) include in the application a certification by the Treasurer of the Province of Prince Edward Island that all tax payable in respect of the cigarettes or tobacco sticks under the Health Tax Act, R.S.P.E.I. 1988, c. H-3, has been paid.

Only one application per month

(5) A licensed wholesale vendor shall not apply for a rebate under any of subsections (2) to (3.2) more often than once per month.

(3) Subsection (2) is deemed to have come into force on April 1, 1995, except that, in applying subsections 68.169(4) and (5) of the Act, as enacted by subsection (2), before the day on which this Act is assented to, references in those subsections to subsection (3.2) shall be read as references to subsection (3.1).

1994, c. 29, s. 10

7. The portion of section 97.3 of the Act before paragraph (a) is replaced by the following:

Offence of selling in another province tobacco marked for sale in N.S.

97.3 Where manufactured tobacco, other than tobacco sticks, has been marked or stamped in accordance with a statute of the Province of Nova Scotia to indicate that the manufactured tobacco is intended for sale in that province, every person who sells or offers for sale the manufactured tobacco to a consumer in any other province, other than the Province of Prince Edward Island, is guilty of an offence and is liable on summary conviction to a fine of not less than $1,000 and not more than the greater of $1,000 and triple the amount by which

1989, c. 22, s. 5(2)

8. (1) Section 9 of Schedule I to the Act is replaced by the following:

    9. (a) Unleaded gasoline and unleaded aviation gasoline, $0.10 per litre.

    (b) Leaded gasoline and leaded aviation gasoline, $0.11 per litre.

(2) Subsection (1) is deemed to have come into force on February 28, 1995.

1994, c. 29, s. 14(1)

9. (1) The portion of paragraph 1(a) of Schedule II to the Act before subparagraph (i) is replaced by the following:

    (a) $0.03388 for each five cigarettes or fraction of five cigarettes contained in any package, where

1994, c. 29, s. 14(1)

(2) Paragraph 1(b) of Schedule II to the Act is replaced by the following:

    (b) $0.02388 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 indicate that the cigarettes are intended for retail sale in the Province of Quebec;

(3) Subsections (1) and (2) are deemed to have come into force on February 18, 1995.

1994, c. 29, s. 14(1)

10. Subparagraph 1(e)(i) of Schedule II to the Act is amended by striking out the word ``or'' at the end of clause A and by replacing clause (B) with the following:

        (B) are black stock delivered after August 31, 1994 and before the first day of the second month following the month in which the Act that enacts this clause is assented to, by the manufacturer or producer of the cigarettes to a wholesale vendor licensed as such under the Health Tax Act, R.S.P.E.I. 1988, c. H-3, or

        (C) are marked or stamped in accordance with the Tobacco Tax Act, R.S.N.S. 1989, c. 470, to indicate that the cigarettes are intended for retail sale in the Province of Nova Scotia and are delivered by the manufacturer or producer of the cigarettes to a wholesale vendor licensed as such under the Health Tax Act, R.S.P.E.I. 1988, c. H-3, and

1994, c. 29, s. 14(1)

11. Subparagraph 3(d)(i) of Schedule II to the Act is replaced by the following:

      (i) the manufactured tobacco

        (A) is black stock delivered after May 31, 1994 and before the first day of the second month following the month in which the Act that enacts this clause is assented to, 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, or

        (B) is marked or stamped in accordance with the Tobacco Tax Act, R.S.N.S. 1989, c. 470, to indicate that the manufactured tobacco is intended for retail sale in the Province of Nova Scotia and is delivered 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