Marginal note:2007, c. 35, ss. 208(1) and (2)

• 80. (1) Schedule 2 to the Act is replaced by the following:

  SCHEDULE 2(Sections 43 and 43.1)ADDITIONAL DUTY ON CIGARS
  

  Cigars: per cigar, the greater of

  • (a) either

    • (i) $0.08226, or

    • (ii) if the rate referred to in subparagraph (i) has been adjusted under subsection 43.1(2), the adjusted rate; and

  • (b) the amount obtained by multiplying the sale price, in the case of cigars manufactured in Canada, or the duty-paid value, in the case of imported cigars, by the following percentage:

    • (i) if the rate referred to in subparagraph (a)(i) has not been adjusted under subsection 43.1(2), 82%, or

    • (ii) if the rate referred to in subparagraph (a)(i) has been adjusted under subsection 43.1(2), the amount, rounded to the nearest whole number, or, if the amount is equidistant from two consecutive whole numbers, to the higher whole number, expressed as a percentage, determined by the formula

      A × 1000

      where

      A

      is the adjusted rate referred to in subparagraph (a)(ii), as if that rate were not expressed in dollars.

• (2) Schedule 2 to the Act is amended by replacing the references after the heading “SCHEDULE 2” with the following:

  (Sections 43 and 43.1 and subsections 216(2) and (3))

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

• (4) Subsection (2) comes into force on December 1, 2019.

Marginal note:2003, c. 15, ss. 51 to 53; 2008, c. 28, ss. 65(1), 66(1) and 67(1); 2013, c. 33, ss. 57(1), 58(1) and 59(1)

• 81. (1) The portion of Schedule 3 to the Act before section 4 is replaced by the following:

  SCHEDULE 3(Sections 53, 54, 56 and 58.2)RATES OF SPECIAL DUTIES ON CERTAIN MANUFACTURED TOBACCO
  

  • 1. Special duty on imported manufactured tobacco:

    • (a) in dollars per cigarette, the rate determined by the formula, rounded to the nearest one-hundred-thousandth, or, if the rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth,

      A/5

      where

      A

      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes;

    • (b) in dollars per tobacco stick, the rate of duty applicable under section 2 of Schedule 1 per tobacco stick; and

    • (c) in dollars per 50 grams, or fraction of 50 grams, contained in any package of manufactured tobacco other than cigarettes or tobacco sticks, the rate of duty applicable under section 3 of Schedule 1 per 50 grams.

  • 2. Special duty on traveller’s tobacco:

    • (a) in dollars per cigarette, the rate determined by the formula, rounded to the nearest one-hundred-thousandth, or, if the rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth,

      A/5

      where

      A

      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes;

    • (b) in dollars per tobacco stick, the rate of duty applicable under section 2 of Schedule 1 per tobacco stick; and

    • (c) in dollars per 50 grams, or fraction of 50 grams, contained in any package of manufactured tobacco other than cigarettes or tobacco sticks, the rate of duty applicable under section 3 of Schedule 1 per 50 grams.

  • 3. Special duty on unstamped tobacco products:

    • (a) in dollars per cigarette, the rate determined by the formula, rounded to the nearest one-hundred-thousandth, or, if the rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth,

      A/5

      where

      A

      is the rate of duty applicable under section 1 of Schedule 1 for each five cigarettes;

    • (b) in dollars per tobacco stick, the rate of duty applicable under section 2 of Schedule 1 per tobacco stick; and

    • (c) in dollars per kilogram of tobacco products other than cigarettes or tobacco sticks, the rate determined by the formula, rounded to the nearest one-hundred-thousandth, or, if the rate is equidistant from two consecutive one-hundred-thousandths, to the higher one-hundred-thousandth,

      A × 20

      where

      A

      is the rate of duty applicable under section 3 of Schedule 1 per 50 grams of manufactured tobacco.

• (2) Schedule 3 to the Act is amended by replacing the references after the heading “SCHEDULE 3” with the following:

  (Sections 53, 54, 56, 58.2 and 240)

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

• (4) Subsection (2) comes into force on December 1, 2019.

Application

82. For the purposes of applying the provisions of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount is to be determined and interest is to be computed on it as though paragraphs 1(a), 2(a), 3(a) and 4(a) of Schedule 1 of the Excise Act, 2001, as enacted by section 79, subparagraphs (a)(i) and (b)(i) of Schedule 2 of that Act, as enacted by section 80, and section 81 had come into force on February 12, 2014.

R.S., c. E-15Excise Tax Act

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

• 83. (1) Subsection 68.16(3) of the Excise Tax Act is replaced by the following:

  • Marginal note:Presumption

    (3) Any payment made to a person referred to in paragraph (1)(i) or (2)(e) shall, for the purposes of subsection (4), paragraph 97.1(1)(b) and sections 98 to 101, be deemed to have been made to the purchaser.

• (2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.

Marginal note:2006, c. 4, s. 130(1)

• 84. (1) Subsection 79.03(4) of the Act is replaced by the following:

  • Marginal note:Interest and penalty amounts of $25 or less

    (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty under subsection 7(1.1) or 68.5(9.1) or section 95.1 or 95.2, owing at that time to Her Majesty in right of Canada under this Act for a reporting period of the person and the total amount of interest and penalty payable by the person under this Act for that reporting period is not more than $25.00, the Minister may cancel the interest and penalty.

• (2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.

• 85. (1) The Act is amended by adding the following after section 95.1:

  Marginal note:False statements or omissions

  • 95.2 (1) Every person who knowingly, or under circumstances amounting to gross negligence, makes or participates in, assents to or acquiesces in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice, answer or report (each of which is in this section referred to as a “return”) made in respect of a reporting period is liable to a penalty of the greater of $250 and 25% of the total of

    • (a) if the false statement or omission is relevant to the determination of an amount of tax payable by the person, the amount, if any, by which

      • (i) that tax payable

      exceeds

      • (ii) the amount that would be the tax payable by the person if the tax were determined on the basis of the information provided in the return, and

    • (b) if the false statement or omission is relevant to the determination of a refund, rebate or any other amount payable to the person (each of which is in this section referred to as a “rebate”) under this Act, the amount, if any, by which

      • (i) the amount that would be the rebate payable to the person if the rebate were determined on the basis of the information provided in the return

      exceeds

      • (ii) the amount of the rebate payable to the person.

  • Marginal note:Burden of proof in respect of penalties

    (2) If, in an appeal under this Act, a penalty assessed by the Minister under this section is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the Minister.

• (2) Subsection (1) applies to any return filed by a person after the day on which this Act receives royal assent.

Marginal note:R.S., c. 7 (2nd Supp.), s. 44(1); R.S., c. 12 (4th Supp.), s. 36(1)

• 86. (1) Section 97 of the Act is replaced by the following:

  Marginal note:Failing to file return

  97. Every person required, by or pursuant to any Part except Part I, to file a return, who fails to file the return within the time it is required to be filed, is guilty of an offence and liable to a fine of not less than $10 and not more than $100.

  Marginal note:Offences for false statements

  • 97.1 (1) Every person commits an offence who

    • (a) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in a return, application, form, certificate, statement, invoice, answer or report filed or made as required by or under this Act or the regulations made under this Act;

    • (b) for the purpose of evading payment or remittance of any tax under this Act, or obtaining a refund, rebate or other amount to which the person is not entitled under this Act,

      • (i) destroys, alters, mutilates, conceals or otherwise disposes of any records of a person, or

      • (ii) makes, or assents to or acquiesces in the making of, a false or deceptive entry, or omits, or assents to or acquiesces in the omission, to enter a material particular in the records of a person;

    • (c) wilfully, in any manner, evades or attempts to evade compliance with this Act or payment or remittance of tax or any other amount imposed under this Act;

    • (d) wilfully, in any manner, obtains or attempts to obtain a refund, rebate or other amount to which the person is not entitled under this Act; or

    • (e) conspires with any person to commit an offence described in any of paragraphs (a) to (d).

  • Marginal note:Prosecution on summary conviction

    (2) Every person who commits an offence under subsection (1) is guilty of an offence punishable on summary conviction and, in addition to any penalty otherwise provided, is liable to

    • (a) a fine of not less than 50%, and not more than 200%, of the amount of the tax that was sought to be evaded, or of the refund, rebate or other amount sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $1,000 and not more than $25,000; or

    • (b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding two years.

  • Marginal note:Prosecution on indictment

    (3) Every person who is charged with an offence described in subsection (1) may, at the election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided, liable to

    • (a) a fine of not less than 100%, and not more than 200%, of the amount of the tax that was sought to be evaded, or of the refund, rebate or other amount sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $2,000 and not more than $25,000; or

    • (b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding five years.

  • Marginal note:Penalty on conviction

    (4) A person that is convicted of an offence under subsection (2) or (3) is not liable to pay a penalty imposed under subsection 79(5) or section 95.1, 95.2 or 109 or under a regulation made under this Act for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made.

  • Marginal note:Stay of appeal

    (5) If, in any appeal under this Act, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Federal Court or may file a request for a postponement or adjournment with the Tribunal, as the case may be, and, on doing so, the proceedings before the Federal Court are stayed or the proceedings before the Tribunal are postponed or adjourned, as the case may be, pending final determination of the outcome of the prosecution.

• (2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.

• 87. (1) The Act is amended by adding the following after section 98.1:

  Marginal note:Electronic funds transfer

  98.2 For greater certainty, information obtained by the Minister under Part XV.1 of the Income Tax Act may be used for the purposes of this Act.

• (2) Subsection (1) comes into force on January 1, 2015.

• 88. (1) Section 102 of the Act is repealed.

• (2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.

• 89. (1) Section 108 of the Act is repealed.

• (2) Subsection (1) comes into force on the day after the day on which this Act receives royal assent.

2002, c. 9, s. 5Air Travellers Security Charge Act

• 90. (1) The Air Travellers Security Charge Act is amended by adding the following after section 37:

  Marginal note:Electronic funds transfer

  37.1 For greater certainty, information obtained by the Minister under Part XV.1 of the Income Tax Act may be used for the purposes of this Act.

• (2) Subsection (1) comes into force on January 1, 2015.

PART 41997, c. 36CUSTOMS TARIFF

Amendments to the Act

91. The expression “Supplementary Note.” in Chapter 16 of the List of Tariff Provisions set out in the schedule to the Customs Tariff is replaced by the following:

92. Chapter 16 of the List of Tariff Provisions set out in the schedule to the Act is amended by adding the following after Supplementary Note 1:

93. Tariff item Nos. 8905.20.10 and 8905.90.10 in the List of Tariff Provisions set out in the schedule to the Act are repealed.

94. Tariff item No. 9809.00.00 in the List of Tariff Provisions set out in the schedule to the Act is repealed.

95. The Description of Goods of tariff item No. 9833.00.00 in the List of Tariff Provisions set out in the schedule to the Act is amended by adding a reference to “the Governor General,” before the reference to “the Prime Minister of Canada”.

96. The List of Tariff Provisions set out in the schedule to the Act is amended by adding, in numerical order, the tariff provisions set out in Schedule 1 to this Act.

97. The List of Intermediate and Final Rates for Tariff Items of the “F” Staging Category set out in the schedule to the Act is amended by adding, in numerical order, the tariff items set out in Schedule 2 to this Act.

Coming into Force

Marginal note:November 29, 2013

• 98. (1) Sections 91 and 92 are deemed to have come into force on November 29, 2013.

• Marginal note:May 5, 2014

  (2) Sections 93, 96 and 97 are deemed to have come into force on May 5, 2014.

PART 5CANADA–UNITED STATES ENHANCED TAX INFORMATION EXCHANGE AGREEMENT IMPLEMENTATION ACT

Enactment of Act

Marginal note:Enactment

99. The Canada–United States Enhanced Tax Information Exchange Agreement Implementation Act, whose text is as follows and whose schedule is set out in Schedule 3 to this Act, is enacted: