Bill C-26

If you have any questions or comments regarding the accessibility of this publication, please contact us at accessible@parl.gc.ca.

PDF

	(a) in the case of cigarettes, 200 cigarettes;
	(b) in the case of tobacco sticks, 200 sticks; and
	(c) in the case of manufactured tobacco other than cigarettes and tobacco sticks, 200 grams.
Application	(2) No refund shall be paid under subsection (1) to the operator of a duty free shop in respect of a sale of tobacco unless the operator applies to the Minister for the refund within two years after the sale.
	(2) Subsection (1) is deemed to have come into force on April 6, 2001.
	29. (1) Section 68.18 of the Act is amended by adding the following after subsection (3):
Exception for tobacco products	(3.1) Subsection (2) does not apply in respect of taxes imposed under Part III on tobacco products mentioned in Schedule II.
	(2) Subsection (1) is deemed to have come into force on April 6, 2001.
1994, c. 29, s. 8(1)	30. (1) Subsections 72(2) and (3) of the Act are replaced by the following:
Form and contents of application	(2) An application shall be made in the prescribed form and contain the prescribed information.
Filing of application	(3) An application shall be filed with the Minister in any manner that the Governor in Council may, by regulation, prescribe.
1994, c. 29, s. 8(2)	(2) Subsection 72(7) of the Act is replaced by the following:
Interest on payment	(7) If an amount is paid to an applicant under subsection (6), interest at the prescribed rate shall be paid in respect of each day between the day that is sixty days after the day on which the application was received by the Minister and the day on which the payment is sent, and compounded monthly on the total amount of the payment and interest outstanding.
	(3) Subsections (1) and (2) are deemed to have come into force on April 6, 2001.
1997, c. 26, s. 69(1)	31. (1) Subsection 74(1) of the Act is replaced by the following:
Deductions of tax, other than Part I tax, where application	74. (1) In lieu of making a payment, other than a payment in respect of Part I, pursuant to an application under any of sections 68 to 68.11 or 68.17 to 69, the Minister may, on request of the applicant, authorize the applicant to deduct, on such terms and conditions and in such manner as the Minister may specify, the amount that would otherwise be paid to the applicant from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in a return under section 78 by the applicant.
	(2) Subsection (1) is deemed to have come into force on April 6, 2001.
R.S., c. 15 (1st Supp.), s. 26(1), c. 7 (2nd Supp.), s. 35(1)	32. (1) Subsections 78(1) and (2) of the Act are replaced by the following:
Monthly returns	78. (1) Every person who is required to pay tax under Part III or IV shall make each month a return in the prescribed form containing prescribed information of all amounts that became payable by the person on account of that tax in the preceding month.
Nil returns	(2) Every person who holds a licence granted under or in respect of Part III or IV and whose tax payable under that Part in the preceding month is nil shall make a return as required by subsection (1) reporting that fact.
R.S., c. 12 (4th Supp.), s. 31(1)	(2) Paragraph 78(3)(c) of the Act is replaced by the following:
	(c) authorize any person whose activities that give rise to tax payable by the person under Part III or IV are predominantly limited to a seasonal period of operation to make a return in respect of any period longer than one month but not longer than six months, if the tax payable by the person under that Part for the equivalent period in the preceding calendar year did not exceed an average of four hundred dollars per month throughout that equivalent period.
R.S., c. 15 (1st Supp.), s. 26(1)	(3) Paragraph 78(4)(a) of the Act is replaced by the following:
	(a) in a case where the return is required to be made in a month in accordance with subsection (1) or (2), not later than the last day of that month;
	(4) Subsections (1) to (3) are deemed to have come into force on April 6, 2001.
1994, c. 29, s. 9(1)	33. (1) Subsections 81.38(8) and (8.1) of the Act are replaced by the following:
Interest on refunds	(8) If a payment is made under subsection (1) or (4) in respect of an application under any of sections 68 to 69, interest at the prescribed rate shall be paid, in respect of each day between the day that is sixty days after the day on which the application was received by the Minister and the day on which the payment was sent, and compounded monthly on the total amount of the payment and interest outstanding.
	(2) Subsection (1) is deemed to have come into force on April 6, 2001.
1994, c. 29, s. 10; 2000, c. 30, s. 15(1)	34. (1) Section 97.1 of the Act is replaced by the following:
Offence of selling in another province cigarettes marked for sale in Ontario	97.1 If cigarettes have been marked or stamped in accordance with a statute of the Province of Ontario to indicate that they are intended for sale in that province, every person who sells or offers for sale the cigarettes to a consumer in any other province 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
	(a) the excise tax that would have been imposed under section 23 in respect of the cigarettes if the applicable rate of excise tax had been 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 .
	(2) Subsection (1) is deemed to have come into force on April 6, 2001.
2000, c. 30, s. 16(1)	35. (1) The portion of section 97.2 of the Act before paragraph (b) is replaced by the following:
Offence of selling in another province cigarettes marked for sale in Quebec	97.2 If cigarettes have been marked or stamped in accordance with a statute of the Province of Quebec to indicate that they are intended for sale in that province, every person who sells or offers for sale the cigarettes to a consumer in any other province 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
	(a) the excise tax that would have been imposed under section 23 in respect of the cigarettes if the applicable rate of excise tax had been the rate set out in paragraph 1(f) of Schedule II
	exceeds
	(2) Subsection (1) is deemed to have come into force on April 6, 2001.
1997, c. 26, s. 72(1)	36. (1) Section 97.3 of the Act is repealed.
	(2) Subsection (1) is deemed to have come into force on April 6, 2001.
1994, c. 29, s. 10; 1997, c. 26, s. 73(1); 2000, c. 30, s. 17(1) and par. 140(1)(b)	37. (1) Sections 97.4 and 97.5 of the Act are replaced by the following:
Offence of unauthorized sale of cigarettes intended for Indian reserve	97.4 Every person who sells or offers for sale black stock cigarettes described in subparagraph 1(a)(ii) of Schedule II in respect of which tax under section 23 was imposed at the rate set out in paragraph 1(a) of that Schedule to a person other than a supplier, an on-reserve retailer or an Indian consumer in the Province of Ontario is guilty of an offence and 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
	(a) the excise tax that would have been imposed under section 23 in respect of the cigarettes if the applicable rate of excise tax had been 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 .
	(2) Subsection (1) is deemed to have come into force on April 6, 2001.
1994, c. 29, s. 11(1); 1999, c. 17, s. 156(c)	38. (1) Section 98.2 of the Act is repealed.
	(2) Subsection (1) is deemed to have come into force on April 6, 2001.
1994, c. 29, s. 12	39. (1) Subsection 100(5) of the Act is replaced by the following:
Failure to make records and books available	(5) Every person who fails to comply with section 98.1 is guilty of an offence and liable on summary conviction to a fine of not less than $200 and not more than $2,000 or to imprisonment for a term of not more than 6 months or to both the fine and imprisonment.
	(2) Subsection (1) is deemed to have come into force on April 6, 2001.
2000, c. 30, s. 107(1)	40. (1) The portion of paragraph 1(a) of Schedule II to the Act before subparagraph (i) is replaced by the following:
	(a) $0.13138 for each five cigarettes or fraction of five cigarettes contained in any package, if
2000, c. 30, s. 107(2)	(2) Paragraph 1(b) of Schedule II to the Act is replaced by the following:
	(b) $0.12138 for each five cigarettes or fraction of five cigarettes contained in any package, if 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; and
1994, c. 29, s. 14(1); 1997, c. 26, ss. 74(3) and (4); 2000, c. 30, ss. 107(3) to (5) and par. 140(1)(f)	(3) Paragraphs 1(c) to (e) of Schedule II to the Act are repealed.
	(4) Subsections (1) to (3) are deemed to have come into force on April 6, 2001.
1994, c. 29, s. 14(1); 1997, c. 26, s. 76(1); 2000, c. 30, s. 108(1)	41. (1) Sections 2 and 3 of Schedule II to the Act are replaced by the following:
	2. Tobacco sticks: $0.01965 per stick.
	3. Manufactured tobacco other than cigarettes and tobacco sticks: $15.648 per kilogram.
	(2) Subsection (1) is deemed to have come into force on April 6, 2001.
	42. (1) Schedule VII to the Act is amended by adding the following after section 1:
	1.1 For the purposes of section 1, ``duty'' does not include a duty levied under subsection 21(2) of the Customs Tariff.
	(2) Subsection (1) comes into force or is deemed to have come into force on October 1, 2001.
R.S., c. 1 (5th Supp.)	INCOME TAX ACT
	*43. (1) Subsection 182(1) of the Income Tax Act* is replaced by the following:**
Surtax	182. (1) Every corporation shall pay a tax under this Part for each taxation year equal to 50% of the corporation's Part I tax on tobacco manufacturing profits for the year.
	(2) Subsection (1) applies to taxation years ending after April 5, 2001, except that, in its application to a corporation's taxation year that includes that day, subsection 182(1) of the Act, as enacted by subsection (1), shall be read as follows:
	182. (1) Every corporation shall pay a tax under this Part for the corporation's taxation year that includes April 5, 2001, equal to the total of
	(a) 40% of that proportion of the corporation's Part I tax on tobacco manufacturing profits for the year that the number of days in the year that are before April 6, 2001, is of the total number of days in the year, and
	(b) 50% of that proportion of the corporation's Part I tax on tobacco manufacturing profits for the year that the number of days in the year that are after April 5, 2001, is of the total number of days in the year.

Bill C-26

INCOME TAX ACT