Bill C-93

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Offence and penalty	57. Every person who contravenes this Part, except subsection 56(1), or a by-law made under this Part is guilty of an offence and liable on summary conviction to a fine of not more than $25,000 or to imprisonment for a term of not more than twelve months, or to both.
Conditional amendment - Bill C-25	58. If Bill C-25, introduced in the second session of the thirty-fifth Parliament and entitled An Act respecting regulations and other documents, including the review, registration, publication and parliamentary scrutiny of regulations and other documents, and to make consequential and related amendments to other Acts, is assented to, then, on the later of the coming into force of section 1 of that Act and paragraph 53(1)(e) of this Act, paragraph 53(1)(e) of this Act is replaced by the following:
	(e) is not subject to the Regulations Act.
	PART V
	TOBACCO PRODUCTS
R.S., c. E-15	Excise Tax Act
1994, c. 29, s. 5(1)	*59. (1) Subsection 23.21(3) of the Excise Tax Act* is replaced by the following:**
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 23.22 or 23.3.
	(2) Subsection (1) is deemed to have come into force on November 29, 1996.
	60. (1) The Act is amended by adding the following after section 23.21:
Definition of ``foreign duty free shop''	23.22 (1) In this section and section 68.161, ``foreign duty free shop'' means a retail store that is located in a country other than Canada and that is authorized under the laws of that country to sell goods free of duties and taxes to individuals who are about to leave that country.
Exemption for tobacco products for sale in foreign duty free shop	(2) The excise tax imposed under subsection 23.2(1) is not payable in respect of tobacco products that are sold by the manufacturer or producer of the products to the operator of a foreign duty free shop for duty free sale by the operator in that shop.
	(2) Subsection (1) is deemed to have come into force on November 29, 1996.
1994, c. 29, s. 6(1)	61. (1) The portion of subsection 23.31(1) of the Act before paragraph (b) is replaced by the following:
Tax on tobacco sold to purchaser not authorized to resell in Ontario	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 to indicate that it is intended for retail sale in the province; and
1994, c. 29, s. 6(1)	(2) Subsection 23.31(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 consumer in the Province of Ontario and the purchase is for consumption by the purchaser or by others at the expense of the purchaser.
	(3) Subsections (1) and (2) are deemed to have come into force on November 29, 1996.
1994, c. 29, s. 6(1)	62. (1) The portion of subsection 23.32(1) of the Act before paragraph (b) is replaced by the following:
Tax on tobacco sold to purchaser not authorized to resell in Quebec or New Brunswick	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 or New Brunswick to indicate that they are intended for retail sale in that province; and
1994, c. 29, s. 6(1)	(2) Subsection 23.32(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 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.
	(3) Subsections (1) and (2) are deemed to have come into force on November 29, 1996.
1994, c. 29, s. 6(1)	63. (1) Subsection 23.33(1) of the Act is replaced by the following:
Tax on cigarettes sold to purchaser not authorized to resell in Nova Scotia	23.33 (1) An excise tax shall be imposed, levied and collected on cigarettes that are
	(a) marked or stamped in accordance with a statute of the Province of Nova Scotia to indicate that they are intended for retail sale in that 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.
1994, c. 29, s. 6(1)	(2) Subsections 23.33(3) and (4) of the Act are replaced by the following:
When and by whom tax payable	(3) The tax imposed under subsection (1) is payable by the person selling the cigarettes 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 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 cigarettes if the applicable rate of excise tax were the rate set out in paragraph 1(f) of Schedule II
	exceeds
	(b) the excise tax that was imposed under section 23 in respect of the cigarettes.
	(3) Subsections (1) and (2) are deemed to have come into force on November 29, 1996.
1995, c. 36, s. 3(2)	64. (1) The definition ``Nova Scotia manufactured tobacco'' in subsection 23.34(1) of the Act is repealed.
	(2) Subsection 23.34(1) of the Act is amended by adding the following in alphabetical order:
``Nova Scotia cigarettes'' « cigarettes de la Nouvelle- Écosse »	``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 intended for retail sale in the Province of Nova Scotia;
``Nova Scotia tobacco sticks'' « bâtonnets de tabac de la Nouvelle- Écosse »	``Nova Scotia tobacco sticks'' means tobacco sticks that are marked or stamped in accordance 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.
1995, c. 36, s. 3(3)	(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. cigarettes	(2) An excise tax shall be imposed, levied and collected on Nova Scotia cigarettes, to which paragraph 1(e) of Schedule II applies, that a licensed wholesale vendor sells to a person other than
1994, c. 29, s. 6(1)	(4) Subsection 23.34(4) of the Act is replaced by the following:
Amount of tax	(4) The tax imposed on cigarettes under subsection (2) shall be equal to the amount by which
	(a) the excise that would have been imposed under section 23 in respect of the cigarettes if the applicable rate of excise tax were the rate set out in paragraph 1(f) of Schedule II
	exceeds
	(b) the excise tax that was imposed under section 23 in respect of the cigarettes.
	(5) Subsection (1) is deemed to have come into force on December 12, 1996.
	(6) Subsections (2), (3) and (4) are deemed to have come into force on November 29, 1996.
1995, c. 36, s. 4	65. (1) The portion of subsection 23.341(1) of the Act before paragraph (a) is replaced by the following:
Excise tax on diverted P.E.I. tobacco	23.341 (1) An excise tax shall be imposed, levied and collected on Nova Scotia cigarettes or Nova Scotia tobacco sticks, to which section 68.169 and paragraph 1(e) or 2(d) of Schedule II apply, that a licensed retail vendor sells to a person other than
1995, c. 36, s. 4	(2) Subsection 23.341(3) of the Act is replaced by the following:
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 cigarettes or tobacco sticks if the applicable rates of excise tax were the rates set out in paragraph 1(f) or 2(d) of Schedule II
	exceeds
	(b) the excise tax imposed at the rates of
	(i) $0.07013 per five cigarettes, in the case of cigarettes, and
	(ii) $0.00595 per tobacco stick, in the case of tobacco sticks.
	(3) Subsections (1) and (2) are deemed to have come into force on December 12, 1996.
1994, c. 29, s. 6(1)	66. (1) Subsection 23.36(2) of the Act is replaced by the following:
Tax on excess sale of black stock cigarettes	(2) Where a designated wholesale vendor sells to a designated retail vendor a quantity of black stock cigarettes, in respect of which subparagraph 1(c)(ii) of Schedule II applies, that is in excess of the quantity of black stock cigarettes that the designated wholesale vendor is authorized in writing by the Nova Scotia Provincial Tax Commission to sell to the designated retail vendor without the collection of tax under the Tobacco Tax Act, R.S.N.S. 1989, c. 470, an excise tax shall be imposed, levied and collected on those excess black stock cigarettes.
1994, c. 29, s. 6(1)	(2) Subsection 23.36(3) of the Act is replaced by the following:
Tax on illegal sale of black stock cigarettes	(3) Where a designated wholesale vendor sells black stock cigarettes, in respect of which subparagraph 1(c)(ii) of Schedule II applies, to a person other than an Indian consumer on a reserve in Nova Scotia or a designated retail vendor, an excise tax shall be imposed, levied and collected on those cigarettes.
1994, c.29, s. 6(1)	(3) Subsection 23.36(5) of the Act is replaced by the following:
Amount of tax	(5) The tax imposed on black stock cigarettes under subsection (2) or (3) shall be equal to the amount by which
	(a) the excise tax that would have been imposed under section 23 in respect of those cigarettes if the applicable rate of excise tax were the rate set out in paragraph 1(f) of Schedule II
	exceeds
	(b) the excise tax that was imposed under section 23 in respect of those cigarettes.
	(4) Subsections (1) to (3) are deemed to have come into force on November 29, 1996.
1994, c. 29, s. 7(1)	67. (1) Section 68.161 of the Act is replaced by the following:
Refund of tax where foreign taxes paid or where products for sale in foreign duty free shop	68.161 The Minister may refund to the manufacturer or producer of tobacco products (within the meaning assigned by section 23.1) the tax paid under subsection 23.2(1) in respect of the tobacco products where
	(a) the manufacturer or producer provides to the Minister evidence satisfactory to the Minister that
	(i) all taxes imposed on the tobacco products by the national government of the country to which the tobacco products were exported have been paid, or
	(ii) the tobacco products were purchased by the operator of a foreign duty free shop (as defined in subsection 23.22(1)), for duty free sale by the operator in that shop; and
	(b) the manufacturer or producer applies to the Minister for the repayment within two years after the tobacco products were exported.
	(2) Subsection (1) is deemed to have come into force on November 29, 1996.
	68. (1) Subsection 68.169(1) of the Act is amended by adding the following in alphabetical order:
``Nova Scotia manufactured tobacco'' « tabac fabriqué de la Nouvelle- Écosse »	``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 Scotia;
1995, c. 36, s. 6(2)	(2) Subsections 68.169(3.2) to (5) of the Act are replaced by the following:
Rebate to P.E.I. wholesaler	(3.2) Where, after November 8, 1995 and before November 29, 1996, 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.
Rebate after November 28, 1996	(3.21) Where, after November 28, 1996 and before December 12, 1996, a licensed wholesale vendor sells Nova Scotia 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) $0.00975 multiplied by the number of cigarettes, in respect of the portion of that manufactured tobacco that is cigarettes,
	(b) $0.0074 multiplied by the number of tobacco sticks, in respect of the portion of that manufactured tobacco that is tobacco sticks, and
	(c) $2.70 multiplied by the number of kilograms of that manufactured tobacco that is not cigarettes or tobacco sticks.
Rebate after December 11, 1996	(3.22) Where, after December 11, 1996, 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

Bill C-93

PART V

TOBACCO PRODUCTS

Excise Tax Act