Bill C-32

SCHEDULE II
(Section 23)

TAX RATES ON TOBACCO PRODUCTS

(a) $0.01888 for each five cigarettes or fraction of five cigarettes contained in any package, where

(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

(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));

(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;

(c) $0.08388 for each five cigarettes or fraction of five cigarettes contained in any package, where

(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

(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));

(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;

(e) $0.08388 for each five cigarettes or fraction of five cigarettes contained in any package, where

(i) the cigarettes

(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

(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

(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

(f) $0.13388 for each 5 cigarettes or fraction of 5 cigarettes contained in any package, in any other case.

(a) $0.00165 per stick, where

(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

(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));

(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;

(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

(d) $0.01065 per stick, in any other case.

(a) $1.648 per kilogram, where

(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

(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));

(b) $7.948 per kilogram, where

(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

(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));

(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;

(d) $7.948 per kilogram, where

(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

(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

(e) $10.648 per kilogram, in any other case.

(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;

(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;

(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

(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.

(a) subsection (1) shall not be deemed to have come into force before the day on which this Act is assented to; and

(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.

PART II

EXCISE ACT

(a) is guilty of an indictable offence and liable to

(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

(ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding 5 years; or

(b) is guilty of an offence punishable on summary conviction and liable to

(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

(ii) both the fine described in subparagraph (i) and imprisonment for a term not exceeding two years.

(a) the total of

(i) $0.16 multiplied by the number of cigarettes, if any, to which the offence relates,

(ii) $0.11 multiplied by the number of tobacco sticks, if any, to which the offence relates,

(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

(iv) $0.16 multiplied by the number of cigars, if any, to which the offence relates, and

(b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction.

(a) the total of

(i) $0.24 multiplied by the number of cigarettes, if any, to which the offence relates,

(ii) $0.16 multiplied by the number of tobacco sticks, if any, to which the offence relates,

(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

(iv) $0.50 multiplied by the number of cigars, if any, to which the offence relates, and

(b) $1,000 in the case of an indictable offence and $500 in the case of an offence punishable on summary conviction.

PART III

INCOME TAX ACT

PART II

TOBACCO MANUFACTURERS' SURTAX

(a) the number of days in the year that are after February 8, 1994 and before February 9, 1997

(b) the number of days in the year.

where

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

(a) that total otherwise determined, and

(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,

B is the corporation's tobacco manufacturing capital and labour cost for the year,

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

D is

(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

(b) in any other case, nil;