Marginal note:1997, c. 10, s. 102(1)

• 57. (1) Section 5 of Part V.1 of Schedule V to the Act is replaced by the following:

  • 5. A supply made by a charity of any property or service if all or substantially all of the supplies of the property or service by the charity are made for no consideration, but not including a supply of

    • (a) blood or blood derivatives; or

    • (b) a parking space if the supply is made for consideration by way of lease, licence or similar arrangement in the course of a business carried on by the charity.

• (2) Subsection (1) applies to any supply made after March 21, 2013.

• 58. (1) Part V.1 of Schedule V to the Act is amended by adding the following after section 6:

  • 7. A supply (other than a supply by way of sale) of a parking space in a parking lot made by a charity if

    • (a) at the time the supply is made, either

      • (i) all of the parking spaces in the specified parking area (as defined in section 1 of Part VI) in relation to the supply are reserved for use by individuals who are accessing a public hospital, or

      • (ii) it is reasonable to expect that the specified parking area (as defined in section 1 of Part VI) in relation to the supply will be used, during the calendar year in which the supply is made, primarily by individuals who are accessing a public hospital;

    • (b) it is not the case that

      • (i) all or substantially all of the parking spaces in the specified parking area (as defined in section 1 of Part VI) in relation to the supply are reserved for use by persons other than individuals accessing a public hospital otherwise than in a professional capacity,

      • (ii) the supply or the amount of the consideration for the supply is conditional on the parking space being used by a person other than an individual accessing a public hospital otherwise than in a professional capacity, or

      • (iii) the agreement for the supply is entered into in advance and, under the terms of the agreement for the supply, use of a parking space in the specified parking area (as defined in section 1 of Part VI) in relation to the supply is made available for a total period of time that is more than 24 hours and the use is to be by a person other than an individual accessing a public hospital otherwise than in a professional capacity; and

    • (c) no election made by the charity under section 211 of the Act is in effect, in respect of the property on which the parking space is situated, at the time tax would become payable under Part IX of the Act in respect of the supply if it were a taxable supply.

• (2) Subsection (1) applies to any supply made after March 21, 2013.

• (3) If a charity collected an amount as or on account of tax under Part IX of the Act in respect of a supply of a parking space made by the charity after March 21, 2013 and on or before January 24, 2014 and, by reason of the application of subsection (1), no tax was collectible by the charity in respect of the supply, then, for the purpose of determining the net tax of the charity, the amount is deemed not to have been collected as or on account of tax under Part IX of the Act.

• (4) If an amount is deemed not to have been collected by a person as or on account of tax under subsection (3) and that amount was taken into consideration in assessing the net tax of the person under section 296 of the Act for a reporting period of the person, the person is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount is deemed not to have been collected by the person as or on account of tax and, on receipt of the request, the Minister must with all due dispatch

  • (a) consider the request; and

  • (b) under section 296 of the Act assess, reassess or make an additional assessment of the net tax of the person for any reporting period of the person and of any interest, penalty or other obligation of the person, but only to the extent that the assessment, reassessment or additional assessment may reasonably be regarded as relating to the amount.

• 59. (1) Section 1 of Part VI of Schedule V to the Act is amended by adding the following in alphabetical order:

  “specified parking area” in relation to a supply of a parking space means all of the parking spaces that could be chosen for use in parking under the agreement for the supply of the parking space if all of those parking spaces were vacant and none were reserved for specific users;

• (2) Subsection (1) is deemed to have come into force on March 21, 2013.

• 60. (1) Part VI of Schedule V to the Act is amended by adding the following after section 25:

  • 25.1 A supply (other than a supply by way of sale) of a parking space in a parking lot made by a public sector body if

    • (a) at the time the supply is made, either

      • (i) all of the parking spaces in the specified parking area in relation to the supply are reserved for use by individuals who are accessing a public hospital, or

      • (ii) it is reasonable to expect that the specified parking area in relation to the supply will be used, during the calendar year in which the supply is made, primarily by individuals who are accessing a public hospital;

    • (b) it is not the case that

      • (i) all or substantially all of the parking spaces in the specified parking area in relation to the supply are reserved for use by persons other than individuals accessing a public hospital otherwise than in a professional capacity,

      • (ii) the supply or the amount of the consideration for the supply is conditional on the parking space being used by a person other than an individual accessing a public hospital otherwise than in a professional capacity, or

      • (iii) the agreement for the supply is entered into in advance and, under the terms of the agreement for the supply, use of a parking space in the specified parking area in relation to the supply is made available for a total period of time that is more than 24 hours and the use is to be by a person other than an individual accessing a public hospital otherwise than in a professional capacity; and

    • (c) no election made by the public sector body under section 211 of the Act is in effect, in respect of the property on which the parking space is situated, at the time tax would become payable under Part IX of the Act in respect of the supply if it were a taxable supply.

• (2) Subsection (1) applies to any supply made after January 24, 2014.

• 61. (1) Part II of Schedule VI to the Act is amended by adding the following after section 9:

  • 9.1 A supply of eyewear that is specially designed to treat or correct a defect of vision by electronic means, if the eyewear is supplied on the written order of a person that is entitled under the laws of a province to practise the profession of medicine or optometry for the treatment or correction of a defect of vision of a consumer who is named in the order.

• (2) Subsection (1) applies to any supply made after February 11, 2014.

PART 3AMENDMENTS TO THE EXCISE ACT, 2001, THE EXCISE TAX ACT (OTHER THAN GST/HST MEASURES) AND THE AIR TRAVELLERS SECURITY CHARGE ACT

2002, c. 22Excise Act, 2001

Amendments to the Act

• 62. (1) The portion of subsection 42(1) of the French version of the Excise Act, 2001 before paragraph (a) is replaced by the following:

  Marginal note:Imposition

  • 42. (1) Un droit sur les produits du tabac fabriqués au Canada ou importés et sur le tabac en feuilles importé est imposé aux taux prévus à l’annexe 1 et est exigible :

• (2) Subsection (1) is deemed to have come into force on February 12, 2014.

• 63. (1) The portion of section 43 of the French version of the Act before paragraph (a) is replaced by the following:

  Marginal note:Droit additionnel sur les cigares

  43. Est imposé aux taux prévus à l’annexe 2, en plus du droit imposé en vertu de l’article 42, un droit sur les cigares qui sont fabriqués et vendus au Canada ou importés. Ce droit est exigible :

• (2) Subsection (1) is deemed to have come into force on February 12, 2014.

• 64. (1) The Act is amended by adding the following after section 43:

  Definition of “inflationary adjusted year”

  • 43.1 (1) In this section, “inflationary adjusted year” means 2019 and every fifth year after that year.

  • Marginal note:Adjustments

    (2) Each rate of duty set out in sections 1 to 4 of Schedule 1 and paragraph (a) of Schedule 2 in respect of a tobacco product is to be adjusted on December 1 of a particular inflationary adjusted year so that the rate is equal to the greater of

    • (a) the rate determined by the formula

      A × B

      where

      A

      is the rate of duty applicable to the tobacco product on November 30 of the particular inflationary adjusted year, and

      B

      is the amount determined by the formula in subparagraph (i) or (ii), rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth,

      • (i) if the particular inflationary adjusted year is 2019,

        C/D

        where

        C

        is the Consumer Price Index for the 12-month period ending on September 30, 2019, and

        D

        is the Consumer Price Index for the 12-month period that ended on September 30, 2013,

      • (ii) for any other particular inflationary adjusted year,

        E/F

        where

        E

        is the Consumer Price Index for the 12-month period ending on September 30 of the particular inflationary adjusted year, and

        F

        is the Consumer Price Index for the 12-month period ending on September 30 of the inflationary adjusted year that precedes the particular inflationary adjusted year; and

    • (b) the rate of duty referred to in the description of A in paragraph (a).

  • Marginal note:Rounding

    (3) The adjusted rate determined under subsection (2) is to be rounded to the nearest one-hundred-thousandth or, if the adjusted rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth.

  • Marginal note:Consumer Price Index

    (4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

    • (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period;

    • (b) dividing the aggregate obtained under paragraph (a) by 12; and

    • (c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

• (2) Subsection (1) is deemed to have come into force on February 12, 2014.

Marginal note:2008, c. 28, s. 56(1)

• 65. (1) Subsection 53(1) of the French version of the Act is replaced by the following:

  Marginal note:Droit spécial sur le tabac fabriqué importé livré à une boutique hors taxes

  • 53. (1) Un droit spécial est imposé, aux taux prévus à l’article 1 de l’annexe 3, sur le tabac fabriqué importé qui est livré à une boutique hors taxes et qui n’est pas estampillé.

• (2) Subsection (1) is deemed to have come into force on February 12, 2014.

• 66. (1) Subsection 54(2) of the French version of the Act is replaced by the following:

  • Marginal note:Droit spécial sur le tabac du voyageur

    (2) Un droit spécial est imposé, aux taux prévus à l’article 2 de l’annexe 3, sur le tabac du voyageur au moment de son importation.

• (2) Subsection (1) is deemed to have come into force on February 12, 2014.

• 67. (1) Paragraphs 56(1)(a) and (b) of the French version of the Act are replaced by the following:

  • a) si l’exportation est effectuée conformément à l’alinéa 50(4)a) par le titulaire de licence de tabac qui a fabriqué les produits, les taux prévus à l’article 3 de l’annexe 3;

  • b) sinon, les taux prévus à l’article 4 de l’annexe 3.

• (2) Subsection (1) is deemed to have come into force on February 12, 2014.

Marginal note:2006, c. 4, s. 34(1)

• 68. (1) The heading “TOBACCO PRODUCTS INVENTORY TAX” before section 58.1 of the Act is replaced by the following:

  CIGARETTE INVENTORY TAX

• (2) Subsection (1) is deemed to have come into force on February 12, 2014.

Marginal note:2006, c. 4, s. 34(1); 2007, c. 35, s. 197(1)

• 69. (1) The definitions “loose tobacco”, “taxed tobacco” and “unit” in section 58.1 of the Act are repealed.

• (2) Section 58.1 of the Act is amended by adding the following in alphabetical order:

  “adjustment day”

  « date d’ajustement »

  “adjustment day” means

  • (a) February 12, 2014; or

  • (b) in the case of an inflationary adjusted year, December 1 of that year.

  “inflationary adjusted year”

  « année inflationniste »

  “inflationary adjusted year” has the same meaning as in subsection 43.1(1).

  “taxed cigarettes”

  « cigarettes imposées »

  “taxed cigarettes” of a person means cigarettes in respect of which duty has been imposed under section 42 before February 12, 2014 at the rate set out in paragraph 1(b) of Schedule 1, as that provision read on February 11, 2014, and that, at the beginning of February 12, 2014,

  • (a) were owned by that person for sale in the ordinary course of a business of the person;

  • (b) were not held in a vending machine; and

  • (c) were not relieved from that duty under this Act.

• (3) The portion of the definition “taxed cigarettes” in section 58.1 of the Act before paragraph (a) is replaced by the following:

  “taxed cigarettes”

  « cigarettes imposées »

  “taxed cigarettes” of a person means cigarettes in respect of which duty has been imposed under section 42 or 53 at the rate applicable on the day before an adjustment day other than February 12, 2014, and that, at the beginning of the adjustment day,

• (4) Subsections (1) and (2) are deemed to have come into force on February 12, 2014.

• (5) Subsection (3) comes into force on November 30, 2019.

Marginal note:2006, c. 4, s. 34(1); 2007, c. 35, ss. 198(1) and 199(1)

• 70. (1) Sections 58.2 to 58.4 of the Act are replaced by the following:

  Marginal note:Imposition of tax  —  2014 increase

  • 58.2 (1) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of February 12, 2014 at the rate of $0.02015 per cigarette.

  • Marginal note:Imposition of tax  — inflationary adjusted years

    (2) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of December 1 of an inflationary adjusted year at a rate per cigarette equal to

    • (a) in the case of cigarettes in respect of which duty has been imposed under section 42, the amount determined by the formula

      (A – B)/5

      where

      A

      is the rate of duty applicable under paragraph 1(b) of Schedule 1 for each five cigarettes on December 1 of the inflationary adjusted year, and

      B

      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes on November 30 of the inflationary adjusted year; and

    • (b) in the case of cigarettes in respect of which duty has been imposed under section 53, the amount determined by the formula

      C – D

      where

      C

      is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on December 1 of the inflationary adjusted year, and

      D

      is the rate of duty applicable under paragraph 1(a) of Schedule 3 per cigarette on November 30 of the inflationary adjusted year.

  • Marginal note:Rounding

    (3) The amount determined under paragraph (2)(a) or (b) is to be rounded to the nearest one-hundred-thousandth or, if the amount is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth.

  Marginal note:Exemption for small retail inventory

  58.3 Tax under this Part in respect of the inventory of all taxed cigarettes of a person that is held at the beginning of an adjustment day at a separate retail establishment of the person is not payable if that retail establishment holds inventory of 30,000 or fewer cigarettes.

  Marginal note:Taking of inventory

  58.4 Every person liable to pay tax under this Part shall, for the purposes of this Part, determine that person’s inventory of all taxed cigarettes held at the beginning of an adjustment day.

• (2) Subsection (1) is deemed to have come into force on February 12, 2014.