Notice of Ways and Means Motion to amend the Excise Tax Act, the Excise Act, 2001, the Federal-Provincial Fiscal Arrangements Act and other tax statutes and related texts
Notice of Ways and Means Motion to amend the Excise Tax Act, the Excise Act, 2001, the Federal-Provincial Fiscal Arrangements Act and other tax statutes and related texts (PDF, 521 KB)
That it is expedient to amend the Excise Tax Act, the Excise Act, 2001, the Federal-Provincial Fiscal Arrangements Act and other tax statutes and related texts as follows:
GST/HST Health Measures
Excise Tax Act
1 (1) The portion of the definition practitioner in section 1 of Part II of Schedule V to the Excise Tax Act before paragraph (b) is replaced by the following:
practitioner, in respect of a supply of optometric, chiropractic, physiotherapy, chiropodic, podiatric, audiological, speech-language pathology, occupational therapy, psychological, psychotherapy, counselling therapy, midwifery, dietetic, acupuncture, naturopathic or massage therapy services, means a person who
(a) practises the profession of optometry, chiropractic, physiotherapy, chiropody, podiatry, audiology, speech-language pathology, occupational therapy, psychology, psychotherapy, counselling therapy, midwifery, dietetics, acupuncture, naturopathy as a naturopathic doctor or massage therapy, as the case may be,
(2) Subsection (1) applies to any supply made after Budget Day.
2 (1) Section 7 of Part II of Schedule V to the Act is amended by striking out "and" at the end of paragraph (l), by adding "and" at the end of paragraph (m) and by adding the following after paragraph (m):
(n) massage therapy services.
(2) Subsection (1) applies to any supply made after Budget Day.
3 (1) Part II of Schedule VI to the Act is amended by adding the following after section 41:
42 A supply of an alternating electric fields therapy device that is specially designed to treat cancer by disrupting the division of cancer cells and slowing or stopping tumour growth.
(2) Subsection (1) applies to any supply made after Budget Day.
Pre-Approval Regime for GST/HST Input Tax Credit Allocation Methods of Financial Institutions
Excise Tax Act
4 (1) Subsection 141.02(18) of the Excise Tax Act is replaced by the following:
Marginal note:Application for pre-approved method
(18) A person that is, or is reasonably expected to be, a qualifying institution for a particular fiscal year may apply to the Minister
(a) to use particular methods to determine for the particular fiscal year the operative extent and the procurative extent of each business input of the person; or
(b) if the person is reasonably expected to be a qualifying institution for each of the two fiscal years of the person that immediately follow the particular fiscal year (in this subsection and subsections (20), (23) and (23.1) referred to as the "two subsequent fiscal years"), to use particular methods to determine for the particular fiscal year and for each of the two subsequent fiscal years the operative extent and the procurative extent of each business input of the person.
(2) Subparagraph 141.02(19)(b)(i) of the Act is replaced by the following:
(i) the day that is 180 days before the first day of the first fiscal year to which the application applies, or
(3) Paragraph 141.02(20)(a) of the Act is replaced by the following:
(a) consider the application and
(i) if the application is for only a particular fiscal year of the person, authorize or deny the use of the particular methods for the particular fiscal year, or
(ii) if the application is for a particular fiscal year of the person and for the two subsequent fiscal years of the person,
(A) authorize the use of the particular methods for the particular fiscal year and for each of the two subsequent fiscal years,
(B) authorize the use of the particular methods for the particular fiscal year but deny the use of the particular methods for each of the two subsequent fiscal years, or
(C) deny the use of the particular methods for the particular fiscal year and for each of the two subsequent fiscal years; and
(4) Clause 141.02(20)(b)(i)(B) of the Act is replaced by the following:
(B) the day that is 180 days before the first day of the first fiscal year to which the application applies, or
(5) Subsection 141.02(23) of the Act is replaced by the following:
Marginal note:Revocation
(23) An authorization granted under subsection (20) to a person in respect of a particular fiscal year of the person, or in respect of a particular fiscal year of the person and each of the two subsequent fiscal years of the person, ceases to have effect on the first day of the particular fiscal year and, for the purposes of this Part, is deemed never to have been granted if
(a) the Minister revokes the authorization and sends a notice of revocation to the person on or before the day that is 60 days before the day that is the first day of the particular fiscal year;
(b) the person files in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information on or before the day that is 60 days before the first day of the particular fiscal year; or
(c) the person is not a qualifying institution for the particular fiscal year.
Marginal note:Revocation — subsequent year
(23.1) An authorization granted under subsection (20) to a person in respect of a particular fiscal year of the person and each of the two subsequent fiscal years of the person ceases to have effect on the first day of a fiscal year of the person (in this subsection referred to as the "specified fiscal year") that is one of the two subsequent fiscal years and, for the purposes of this Part, is deemed to have been granted only in respect of each of the fiscal years in respect of which the authorization was granted that precede the specified fiscal year if
(a) the person files with the Minister, in prescribed manner on or before the day that is 60 days before the first day of the specified fiscal year, an application made in prescribed form containing prescribed information to have the authorization cease to have effect on the first day of the specified fiscal year and the Minister notifies the person in writing before the first day of the specified fiscal year that the Minister has approved the application; or
(b) the person is a qualifying institution for each of the fiscal years in respect of which the authorization was granted that precede the specified fiscal year but is not a qualifying institution for the specified fiscal year.
(6) Subparagraph 141.02(24)(b)(ii) of the Act is replaced by the following:
(ii) an authorization under subsection (20) for the particular fiscal year has ceased to have effect only because of the application of paragraph (23)(c) or (23.1)(b).
(7) Subsection 141.02(25) of the Act is replaced by the following:
Marginal note:Effect of approval
(25) On receipt of the application made under subsection (24) in respect of a fiscal year of a person, the Minister shall, with all due dispatch, consider the application and notify the person in writing of the decision and, if the Minister makes the designation, the person is deemed for the purposes of subsection (18) and paragraphs (23)(c) and (23.1)(b) to be a qualifying institution for the fiscal year.
(8) Subsections (1) to (7) apply in respect of any fiscal year of a person beginning after June 2027.
Product Descriptions and Regulatory Cross-References in Sales and Excise Tax Rules
Excise Tax Act
5 (1) Paragraphs 23(8)(b) and (b.1) of the Excise Tax Act are replaced by the following:
(b) goods imported into Canada that are classified under heading No. 98.01, tariff item No. 9802.00.00 or 9803.00.00, heading No. 98.04 or tariff item No. 9805.00.00, 9806.00.00, 9807.00.00, 9810.00.00, 9811.00.00, 9816.00.00 or 9971.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff or that are display goods meeting the requirements under tariff item No. 9993.00.00 of that List and the Temporary Importation (Tariff Item No. 9993.00) Regulations;
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
6 (1) Paragraph (a) of the definition specified motor vehicle in subsection 123(1) of the Act is replaced by the following:
(a) goods (other than prescribed motor vehicles) that
(i) are or would be, if they were imported, classified under any of tariff item Nos. 8701.21.00 to 8701.30.00, 8701.91.00 to 8701.94.00 and 8701.95.90, heading No. 87.02, subheading Nos. 8704.21 to 8704.90, heading No. 87.05 and tariff item Nos. 8711.20.00 to 8711.50.00, 8711.90.00 and 8716.39.20 to 8716.40.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff,
(ii) are or would be, if they were imported, classified under any of tariff item No. 8703.10.10 and subheading Nos. 8703.21 to 8703.90 of that List, other than racing cars,
(iii) are or would be, if they were imported, classified under tariff item No. 8711.60.00 of that List and do not require pedalling for propulsion,
(iv) are or would be, if they were imported, classified under tariff item No. 8716.10.00 of that List and are vehicles for camping, or
(v) are or would be, if they were imported, classified under subheading No. 8716.80 of that List and are designed to be towed by motor vehicles, and
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
7 (1) Paragraph 195.2(1)(a) of the Act is replaced by the following:
(a) if tax under Division III was not paid on the property in respect of that importation because the property was included in section 1 or 9 of Schedule VII or the property was included in section 8 of that Schedule and was classified under tariff item No. 9813.00.00 or 9814.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff or would have been so classified if each of those tariff items were read without reference to paragraph (a) of its Description of Goods;
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
8 (1) Paragraph 6.2(a) of Part V of Schedule VI to the Act is replaced by the following:
(a) an emergency repair service in respect of, or a service of storing, an empty cargo container that is used in transporting property to or from Canada and is classified under heading No. 98.01 of the List of Tariff Provisions set out in the schedule to the Customs Tariff; and
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
9 (1) Section 1 of Schedule VII to the Act is replaced by the following:
1 Goods that are classified under heading No. 98.01 or tariff item No. 9802.00.00, 9803.00.00, 9804.10.00, 9804.20.00, 9804.40.00, 9805.00.00, 9806.00.00, 9807.00.00, 9810.00.00, 9811.00.00, 9812.00.00, 9815.00.00 or 9816.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff to the extent that the goods are not subject to duty under that Act.
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
10 (1) Section 1.2 of Schedule VII to the Act is repealed.
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
11 (1) Section 9 of Schedule VII to the Act is replaced by the following:
9 Containers that, because of tariff item No. 9813.00.00 or 9814.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff and regulations made under paragraph 129(a) of that Act, may be imported free of customs duties.
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
12 (1) Section 1 of Part I of Schedule X to the Act is replaced by the following:
1 Property that is at any time brought into a participating province and that is described in heading No. 98.01 or tariff item No. 9810.00.00 or 9812.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff to the extent that the property would not be subject to customs duties under that Act.
1.1 Books brought into a participating province that are received from free lending libraries, subject to return within 60 days.
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
13 (1) Section 4 of Part I of Schedule X to the Act is replaced by the following:
4 Arms, military stores and munitions of war brought into a participating province by the Government of Canada in replacement of or in anticipation or actual exchange for similar goods loaned to or exchanged or to be exchanged with the governments of a foreign country designated by the Governor in Council under tariff item No. 9810.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff.
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
14 (1) Sections 6 and 7 of Part I of Schedule X to the Act are replaced by the following:
6 Property (other than advertising matter or excisable goods), having a fair market value of $60 or less, that is a casual donation sent by a person in a province to a person in another province that is a participating province, or brought by a person who is a resident in a province into another province that is a participating province as a gift to a person in that other province, in accordance with any regulations as the Minister of Public Safety and Emergency Preparedness may make for purposes of tariff item No. 9816.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff.
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
15 (1) The portion of section 8 of Part I of Schedule X to the Act before paragraph (a) is replaced by the following:
8 Property that is brought into a participating province on a temporary basis, where the property is
(2) Paragraph 8(d) of Part I of Schedule X is replaced by the following:
(d) conveyances or containers engaged in the international traffic of goods.
(3) Subsections (1) and (2) come into force on the first day of the second month after the month in which the Act enacting those subsections receives royal assent.
16 (1) Sections 10 and 11 of Part I of Schedule X to the Act are replaced by the following:
10 Any of the following property that is brought into a participating province and that is given as a gift or bequest to an individual who is resident in the participating province:
(a) personal and household effects of an individual who died outside the participating province and was, at the time of death, resident in the participating province, if the personal and household effects were owned, possessed and used by the individual outside the participating province, or
(b) personal and household effects received, by an individual who is resident in the participating province, as a result or in anticipation of the death of a particular individual who was not resident in the participating province, if the personal and household effects were owned, possessed and used by the particular individual outside the participating province.
11 Medals, trophies and other prizes that are brought into a participating province, not including usual merchantable goods, and that are won outside the participating province in competitions, are bestowed, received or accepted outside the participating province or are donated by persons outside the participating province, for heroic deeds, valour or distinction.
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
17 (1) Section 16 of Part I of Schedule X to the Act is replaced by the following:
16 Containers that are brought into a participating province and that would, if they were imported, be imported free of customs duties under the Customs Tariff because of tariff item No. 9813.00.00 or 9814.00.00 of the List of Tariff Provisions set out in the schedule to that Act and regulations made under paragraph 129(a) of that Act.
(2) Subsection (1) comes into force on the first day of the second month after the month in which the Act enacting that subsection receives royal assent.
Temporary Importation (Excise Levies and Additional Duties) Regulations
18 (1) The Temporary Importation (Excise Levies and Additional Duties) Regulations are repealed.
(2) Subsection (1) comes into force on the first day of the second month after the day on which that subsection is enacted or made.
Value of Imported Goods (GST/HST) Regulations
19 (1) The portion of section 3 of the Value of Imported Goods (GST/HST) Regulations before the formula is replaced by the following:
3 For the purposes of subsection 215(2) of the Act, the value of goods described in the schedule to these Regulations if imported in circumstances in which the terms and conditions of tariff item No. 9993.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff and the Temporary Importation (Tariff Item No. 9993.00) Regulations are met or, if the goods are classified under another tariff item of that List and those Regulations do not apply, imported in circumstances in which those terms and conditions (other than any respecting security) would be met if the goods were classified under tariff item No. 9993.00.00 of that List and those Regulations applied, is determined by the formula
(2) Subsection (1) comes into force on the first day of the second month after the day on which that subsection is enacted or made except that it also applies in respect of amusement riding devices and related equipment imported after 1990.
20 (1) Sections 9 to 11 of the Regulations are replaced by the following:
9 For the purposes of subsection 215(2) of the Act, if a locomotive, railway rolling stock or miscellaneous railway equipment is imported in accordance with subheading No. 9801.10 of the List of Tariff Provisions set out in the schedule to the Customs Tariff and if it either enters domestic service or is temporarily diverted for use in Canada without meeting the requirements of tariff item No. 9801.20.00 of that List, its value is determined by the formula
(1/120 × A × B) + C
where
- A
- is the value for duty of the locomotive, railway rolling stock or miscellaneous railway equipment, as the case may be;
- B
- is the number of months during which the locomotive, railway rolling stock or miscellaneous railway equipment, as the case may be, remains in Canada; and
- C
- is the sum of the remaining duties payable in respect of the locomotive, railway rolling stock or miscellaneous railway equipment, as the case may be.
(2) Subsection (1) comes into force on the first day of the second month after the day on which that subsection is enacted or made.
21 (1) The Regulations are amended by adding the following after section 15:
SCHEDULE(Subsection 3(1))
Item Column I Goods 1 Amusement riding devices and related equipment. 2 Machinery, equipment or other articles, not available from production in Canada, for demonstration by a Canadian resident to prospective customers, if imported by a non-resident person. 3 Tools or other equipment for the erection, installation, repair or trial of machinery or equipment, if supplied by the foreign manufacturer of that machinery or equipment and imported by a non-resident person. 4 Vehicles engaged in the transportation of machinery and equipment to be used for demonstration or instructional purposes, if specially designed or equipped to undertake such transport and imported by a non-resident person. 5 Specialized test equipment imported by the non-resident manufacturer of an article to be tested in Canada, for use in testing that article. 6 Trucks, equipment and mobile accommodation facilities, not available from Canadian sources, if imported by non-residents for their use in the harvesting of crops. 7 Equipment for use in the conduct of pollution or hygienic surveys in the interest of health or safety. 8 Photographic equipment imported by non-residents for their use in the filming of a television production, other than a television commercial, or in the production of feature-length motion pictures or films of an educational character if the film or video recording to be produced is intended for international distribution. 9 Wardrobe properties, stage properties and special effects equipment, not available from Canadian sources, imported by non-residents for their use in the filming or video recording of a television production, other than a television commercial, or in the production of feature-length films, motion pictures or films of an educational character if the film or video recording to be produced is intended for international distribution. 10 Equipment imported by non-residents for their use in recording performances by artists in Canada, if the recordings will be distributed internationally. 11 Lighting and sound equipment for use at a fair, exhibition or rodeo. 12 Photographic equipment, video and sound-recording apparatus to film the operation of a Canadian subsidiary of a foreign company if the content will be included in a film or brochure illustrating the company's international aspects, if it is essential that the Canadian and foreign produced segments be consistent with each other and if imported by a non-resident person. 13 Simultaneous interpretation equipment for use at meetings of a non-commercial nature conducted by international, national or provincial organizations. 14 Goods imported by non-residents for their use in the conduct of religious or revival meetings in Canada, excluding goods for sale. 15 Recorded lectures from the Photographic Society of America Inc. for instructing individual members and affiliated camera clubs in photographic techniques. 16 Academic regalia consisting of academic hoods, caps, gowns, sashes and other articles of wearing apparel imported by non-commercial importers for graduation and commencement ceremonies, if exported within 30 days. (2) Subsection (1) comes into force on the first day of the second month after the day on which that subsection is enacted or made except that it also applies in respect of amusement riding devices and related equipment imported after 1990.
Non-Taxable Imported Goods (GST/HST) Regulations
22 (1) The portion of paragraph 3(d) of the Non-Taxable Imported Goods (GST/HST) Regulations before subparagraph (i) is replaced by the following:
(d) goods imported for the sole purpose of maintenance, overhaul, alteration, adjustment or repair of those goods in Canada, if
(2) Subparagraph 3(d)(ii) of the Regulations is replaced by the following:
(ii) the goods are exported as soon after the maintenance, overhaul, alteration, adjustment or repair is completed as is reasonable having regard to the circumstances surrounding the importation and, if applicable, to the normal business practice of the importer;
(3) Subparagraph 3(f)(i) of the Regulations is replaced by the following:
(i) the conveyance is non-taxable by reason of the reference to heading No. 98.01 of the List of Tariff Provisions set out in the schedule to the Customs Tariff in section 1 of Schedule VII to the Act, and the conveyance is diverted for maintenance, overhaul or repair in Canada,
(4) Paragraph 3(h) of the Regulations is replaced by the following:
(h) vessels imported in circumstances where customs duties have been remitted or removed under section 5, 6, 7, 15, 16 or 17 of the Vessel Duties Reduction or Removal Regulations;
(5) Paragraph 3(i) of the Regulations is replaced by the following:
(i) goods that are described in the schedule to these Regulations and that are classified under tariff item No. 9993.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff if the conditions set out in the schedule to these Regulations and in the Temporary Importation (Tariff Item No. 9993.00) Regulations in respect of the goods are met;
(6) Paragraph 3(l) of the Regulations is replaced by the following:
(l) machinery and equipment classified under chapter 84 or 85 of the List of Tariff Provisions set out in the schedule to the Customs Tariff and vehicles classified under chapter 87 of that List imported by international bridge or tunnel authorities to be employed in the maintenance or operation of international bridges or tunnels or their approaches;
(7) Subsections (1) to (6) come into force on the first day of the second month after the day on which those subsections are enacted or made.
23 (1) The Regulations are amended by adding the following after section 6:
SCHEDULE(Paragraph 3(i))
Item Column I Goods 1 Books received from free lending libraries abroad, subject to return within 60 days. 2 Display goods and apparatuses to display those goods. 3 Commercial samples and advertising films. 4 Equipment imported for use in side shows or concessions at circuses, fairs, exhibitions or rodeos, excluding goods imported for the purpose of being sold or disposed of in any manner in Canada. 5 Goods produced or owned by a non-resident who is considering the acquisition of Canadian processing or packaging machinery, if the goods are imported to demonstrate the performance of Canadian processing or packaging machinery. 6 Articles to be tested and specialized test equipment permanently attached to or installed on those articles. 7 Specially designed tools imported by an organization, referred to in tariff item No. 9988.00.00 of the List of Tariff Provisions set out in the schedule to the Customs Tariff, for the maintenance, checking, gauging or repair of scientific equipment in use at or by that organization. 8 Cinematographic and video and sound recording equipment imported by non-residents for their use in the production of cultural, educational or entertainment films or video recordings under an agreement between Canada and any other country. 9 Equipment for air shows, aquatic displays, trained animal acts, automobile dare-devil shows and other acts of a similar character, excluding costumes, stage properties and related theatrical equipment, and trained animals; all of the foregoing if imported by non-residents for their use in providing live entertainment. 10 Musical instruments if imported by non-residents for their use in recording sessions or during live performances. 11 Equipment for circuses, with or without menageries, but not including amusement riding devices for which a separate admission fee is charged. 12 Cars, motorcycles, water-borne craft, aircraft, air-cushion vehicles, snow vehicles and other conveyances, and repair parts and repair equipment therefor, if for use in racing and imported by a non-resident person. 13 Animals and equipment for use therewith, for pasturage, competition, training or breeding. 14 Sulkies, saddles, harnesses and related equipment imported by non-residents for their use in racing. 15 Athletic equipment and apparel, and training and other equipment imported by non-resident teams or athletes, or their support personnel, for their use in connection with professional or organized amateur sports activities, excluding goods provided for under item 12. 16 Photographic equipment, including film; transmitting equipment not required to be licensed by the Government of Canada; radio and television equipment; video and sound-recording apparatus and related material and equipment; all of the foregoing if imported by non-residents for their use in covering news and sports events. 17 Photographic and related equipment, including film and videotape, imported by non-residents for their use in the production of travelogue films, television specials or illustrated articles in foreign periodicals that would be of benefit to the Canadian tourist industry. 18 Goods, not available from Canadian sources, to be used in the production of commercials or to be photographed for use in commercials, brochures, catalogues or other advertising material; goods for use in commercials, brochures, catalogues and other advertising material for export. 19 Motion-picture films, slides, audio and video tapes and sound recordings devoid of advertising for use in sales meetings or staff training or giving technical instruction to employees when imported by a non-resident person. 20 Lecture material including films, tapes, slides, projectors, videotape machines, sound recorders, charts and other articles imported by non-residents for their use in illustrating non-commercial lectures at meetings of educational societies, professional associations, athletic associations, church groups, service clubs and similar organizations, whether or not a fee is to be paid to the lecturer or an admission fee is to be charged. 21 Films, videotapes and slides of an instructive, informative or documentary nature, if consigned to social and service clubs, charitable organizations and other similar groups, for entertainment. 22 Articles for use by students undertaking correspondence courses sponsored by foreign schools for use in conjunction with those courses. 23 Motion-picture films, videotapes, television and radio programs and other articles for review by a recognized review board. 24 Articles for in-transit movement through Canada. (2) Subsection (1) comes into force on the first day of the second month after the day on which that subsection is enacted or made.
Cannabis Taxation
Excise Act, 2001
24 (1) Section 2 of the Excise Act, 2001 is amended by adding the following in alphabetical order:
- cannabis extract
cannabis extract has the same meaning as in subsection 1(1) of the Cannabis Regulations. (extrait de cannabis)
- cannabis topical
cannabis topical has the same meaning as in subsection 1(1) of the Cannabis Regulations. (cannabis pour usage topique)
- edible cannabis
edible cannabis has the same meaning as in subsection 1(1) of the Cannabis Regulations. (cannabis comestible)
(2) Section 2 of the Act is amended by adding the following in alphabetical order:
- common cannabis stamp
common cannabis stamp means a cannabis excise stamp the purpose of which is to indicate that additional cannabis duty has been paid in respect of a common cannabis stamp province but not to indicate the specific common cannabis stamp province in respect of which that duty has been paid. (timbre de cannabis partagé)
- common cannabis stamp province
common cannabis stamp province means a province that is listed in section 4 of the Excise Duties on Cannabis Regulations and that is prescribed for the purposes of this definition. (province de timbre de cannabis partagé)
(3) Subsection (2) comes into force on January 1, 2028.
25 (1) Subparagraph 158.09(1)(a)(ii) of the Act is replaced by the following:
(ii) if additional cannabis duty in respect of a specified province is imposed on the cannabis product
(A) in the case of a common cannabis stamp province, the cannabis product is stamped with
(I) a common cannabis stamp, or
(II) a cannabis excise stamp that indicates that additional cannabis duty in respect of the specified province has been paid, and
(B) in any other case, the cannabis product is stamped with a cannabis excise stamp that indicates that additional cannabis duty in respect of the specified province has been paid; or
(2) Clause 158.09(1)(a)(ii)(A) of the Act, as enacted by subsection (1), is replaced by the following:
(A) in the case of a common cannabis stamp province, the cannabis product is stamped with a common cannabis stamp, and
(3) Subsection (1) comes into force on January 1, 2028.
(4) Subsection (2) comes into force on July 1, 2029.
26 (1) Subsection 158.11(2) of the Act is replaced by the following:
Marginal note:Unlawful possession or sale — specified province
(2) No person, other than a cannabis licensee, shall dispose of, sell, offer for sale, purchase or have in their possession a cannabis product in a specified province unless
(a) in the case of a common cannabis stamp province, the cannabis product is stamped with
(i) a common cannabis stamp, or
(ii) a cannabis excise stamp that indicates that additional cannabis duty in respect of the specified province has been paid; and
(b) in any other case, the cannabis product is stamped with a cannabis excise stamp that indicates that additional cannabis duty in respect of the specified province has been paid.
Marginal note:Sending or conveying with common stamp
(2.1) No person shall send or convey from one province to another a cannabis product that is stamped with a common cannabis stamp.
(2) Paragraph 158.11(2)(a) of the Act, as enacted by subsection (1), is replaced by the following:
(a) in the case of a common cannabis stamp province, the cannabis product is stamped with a common cannabis stamp; and
(3) Section 158.11 of the Act is amended by adding the following after subsection (6):
Marginal note:Exception — sending or conveying between provinces
(7) Subsection (2.1) does not apply to the sending or conveyance of a cannabis product from a particular province to another province
(a) by a cannabis licensee for delivery to a purchaser of the cannabis product if
(i) the cannabis product has not previously been entered into the duty-paid market of a province, or
(ii) the cannabis licensee entered the cannabis product into the duty-paid market of the particular province;
(b) by a cannabis licensee that owns the cannabis product for delivery to the premises of the cannabis licensee; or
(c) in prescribed circumstances or for a prescribed purpose.
(4) Subsections (1) and (3) come into force on January 1, 2028.
(5) Subsection (2) comes into force on January 1, 2030.
27 (1) Paragraph 158.12(1)(c) of the Act is replaced by the following:
(c) if additional cannabis duty in respect of a specified province is imposed on the cannabis product,
(i) in the case of a common cannabis stamp province, the cannabis product is stamped with
(A) a common cannabis stamp, or
(B) a cannabis excise stamp that indicates that additional cannabis duty in respect of the specified province has been paid, and
(ii) in any other case, the cannabis product is stamped with a cannabis excise stamp that indicates that additional cannabis duty in respect of the specified province has been paid.
(2) Subparagraph 158.12(1)(c)(i) of the Act, as enacted by subsection (1), is replaced by the following:
(i) in the case of a common cannabis stamp province, the cannabis product is stamped with a common cannabis stamp, and
(3) Subsection (1) comes into force on January 1, 2028.
(4) Subsection (2) comes into force on July 1, 2029.
28 (1) Paragraph 158.13(d) of the Act is replaced by the following:
(d) if the cannabis product is to be entered in the duty-paid market of a specified province, the cannabis product is stamped — by the particular cannabis licensee or, if prescribed conditions are met, by another cannabis licensee — with
(i) in the case of a common cannabis stamp province,
(A) a common cannabis stamp that has been issued to the particular cannabis licensee, or
(B) a cannabis excise stamp that has been issued to the particular cannabis licensee and that indicates that additional cannabis duty in respect of the specified province has been paid, and
(ii) in any other case, a cannabis excise stamp that has been issued to the particular cannabis licensee and that indicates that additional cannabis duty in respect of the specified province has been paid; and
(2) Subparagraph 158.13(d)(i) of the Act, as enacted by subsection (1), is replaced by the following:
(i) in the case of a common cannabis stamp province, a common cannabis stamp that has been issued to the particular cannabis licensee, and
(3) Subsection (1) comes into force on January 1, 2028.
(4) Subsection (2) comes into force on July 1, 2029.
29 (1) Subsection 158.14(2) of the Act is replaced by the following:
Marginal note:Absence of common cannabis stamp
(2) The absence on a cannabis product of a common cannabis stamp and of stamping that indicates that additional cannabis duty in respect of a common cannabis stamp province has been paid is notice to all persons that additional cannabis duty in respect of the common cannabis stamp province has not been paid on the cannabis product.
Marginal note:Absence of province-specific stamp
(3) The absence on a cannabis product of stamping that indicates that additional cannabis duty in respect of a specified province that is not a common cannabis stamp province has been paid is notice to all persons that additional cannabis duty in respect of the specified province has not been paid on the cannabis product.
(2) Subsection 158.14(2) of the Act, as enacted by subsection (1), is replaced by the following:
Marginal note:Absence of common cannabis stamp
(2) The absence on a cannabis product of a common cannabis stamp is notice to all persons that no additional cannabis duty in respect of any of the common cannabis stamp provinces has been paid on the cannabis product.
(3) Subsection (1) comes into force on January 1, 2028.
(4) Subsection (2) comes into force on January 1, 2030.
30 Section 158.26 of the Act is amended by adding the following after subsection (4):
Marginal note:Exception — section 234.11 penalty
(5) If a penalty under section 234.11 in respect of cannabis products is imposed under section 254 and is neither cancelled under paragraph 270(1)(a) or 274(1)(a) nor waived under paragraph 275(1)(c), the cannabis products are relieved of the duties imposed under subsections (1) and (2).
31 (1) The Act is amended by adding the following after section 187.1:
Marginal note:Refund — additional cannabis duty
187.11 The Minister may, in prescribed circumstances, refund to a prescribed cannabis licensee an amount, determined in prescribed manner, that is all or part of the additional cannabis duty imposed on a prescribed cannabis product if the cannabis licensee applies for the refund on or before the prescribed date.
(2) Subsection (1) comes into force on January 1, 2028.
32 Paragraph 211(6)(e) of the Act is amended by adding the following after subparagraph (x):
(x.1) to a corporation all of the shares (except directors' qualifying shares) of the capital stock of which are owned by His Majesty in right of a province and that sells or distributes cannabis products within the province for the purpose of determining any liability or obligation of a cannabis licensee or any refund or other payment to which a cannabis licensee is or may become entitled under this Act,
33 (1) The description of A in paragraph 218.1(2)(a) of the Act is replaced by the following:
- A
- is the total of all amounts, each of which is determined in respect of a cannabis product to which the offence relates and is
(i) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, the amount determined under paragraph 1(a) of Schedule 7, as that paragraph read at the time the offence was committed, in respect of the cannabis product, and
(ii) in any other case, the amount that would be determined under paragraph 1(b) of Schedule 7, as that paragraph read at the time the offence was committed, in respect of the cannabis product if the concentration of total THC of the cannabis product were
(A) in the case of edible cannabis, 10 milligrams per gram,
(B) in the case of a cannabis topical, 15 milligrams per gram, and
(C) in the case of a cannabis extract, 1000 milligrams per gram,
(2) The description of A in paragraph 218.1(3)(a) of the Act is replaced by the following:
- A
- is the total of all amounts, each of which is determined in respect of a cannabis product to which the offence relates and is
(i) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, the amount determined under paragraph 1(a) of Schedule 7, as that paragraph read at the time the offence was committed, in respect of the cannabis product, and
(ii) in any other case, the amount that would be determined under paragraph 1(b) of Schedule 7, as that paragraph read at the time the offence was committed, in respect of the cannabis product if the concentration of total THC of the cannabis product were
(A) in the case of edible cannabis, 10 milligrams per gram,
(B) in the case of a cannabis topical, 15 milligrams per gram, and
(C) in the case of a cannabis extract, 1000 milligrams per gram,
34 Paragraph (a) of the description of A in section 233.1 of the Act is replaced by the following:
(a) the total of all amounts, each of which is determined in respect of a cannabis product to which the contravention relates and is
(i) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, the amount determined under paragraph 1(a) of Schedule 7, as that paragraph read at the time the contravention occurred, in respect of the cannabis product, and
(ii) in any other case, the amount that would be determined under paragraph 1(b) of Schedule 7, as that paragraph read at the time the contravention occurred, in respect of the cannabis product if the concentration of total THC of the cannabis product were
(A) in the case of edible cannabis, 10 milligrams per gram,
(B) in the case of a cannabis topical, 15 milligrams per gram, and
(C) in the case of a cannabis extract, 1000 milligrams per gram, and
35 Paragraph (a) of the description of A in section 234.1 of the Act is replaced by the following:
(a) the total of all amounts, each of which is determined in respect of a cannabis product to which the contravention relates and is
(i) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, the amount determined under paragraph 1(a) of Schedule 7, as that paragraph read at the time the contravention occurred, in respect of the cannabis product, and
(ii) in any other case, the amount that would be determined under paragraph 1(b) of Schedule 7, as that paragraph read at the time the contravention occurred, in respect of the cannabis product if the concentration of total THC of the cannabis product were
(A) in the case of edible cannabis, 10 milligrams per gram,
(B) in the case of a cannabis topical, 15 milligrams per gram, and
(C) in the case of a cannabis extract, 1000 milligrams per gram, and
36 The Act is amended by adding the following after section 234.1:
Marginal note:Contravention — unaccounted cannabis
234.11 Every person that is responsible at a particular time for cannabis products and that cannot account for the cannabis products as being, at the particular time, in the possession of a cannabis licensee or in the possession of another person in accordance with subsection 158.11(3) or paragraph 158.11(5)(a) is liable to a penalty equal to the amount determined by the formula
(A + B + C) × 200%
where
- A
- is the greater of
(a) the total of all amounts, each of which is determined in respect of a cannabis product to which the contravention relates and is
(i) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, the amount determined under paragraph 1(a) of Schedule 7, as that paragraph read at the particular time, in respect of the cannabis product, and
(ii) in any other case, the amount that would be determined under paragraph 1(b) of Schedule 7, as that paragraph read at the particular time, in respect of the cannabis product if the concentration of total THC of the cannabis product were
(A) in the case of edible cannabis, 10 milligrams per gram,
(B) in the case of a cannabis topical, 15 milligrams per gram, and
(C) in the case of a cannabis extract, 1000 milligrams per gram, and
(b) the amount obtained by multiplying the fair market value, at the particular time, of the cannabis products to which the contravention relates by the percentage set out in paragraph 4(a) of Schedule 7, as that paragraph read at the particular time;
- B
- is
(a) if the contravention occurred in a specified province, 300% of the amount determined for A, and
(b) in any other case, 0; and
- C
- is
(a) if the contravention occurred in a prescribed specified province, 200% of the amount determined for paragraph (b) of the description of A, and
(b) in any other case, 0.
37 (1) Subparagraph 238.1(2)(b)(ii) of the Act is replaced by the following:
(ii) if the stamp is a common cannabis stamp or is in respect of a specified province, three times the dollar amount set out in subparagraph 1(a)(i) of Schedule 7, and
(2) Subsection (1) comes into force on January 1, 2028.
38 The Act is amended by adding the following after section 250:
Marginal note:Contravention — cannabis licensees
250.1 Every cannabis licensee that, in a return for a reporting period of the cannabis licensee, fails to report as and when required or misstates one or more amounts prescribed by regulation, or fails to provide as and when required or misstates any information prescribed by regulation, is liable to a penalty in respect of the return of not more than $25,000.
Regulations Respecting the Possession of Tobacco, Cannabis or Vaping Products That Are Not Stamped
39 (1) Section 1.1 of the Regulations Respecting the Possession of Tobacco, Cannabis or Vaping Products That Are Not Stamped is replaced by the following:
1.1 For the purposes of subparagraph 158.11(3)(a)(i) of the Excise Act, 2001, subsections 158.11(1) and (2) of that Act do not apply to the possession of a cannabis product by a person that is transporting the cannabis product if the person has in their possession documentation that provides evidence that the person is transporting the cannabis product on behalf of a cannabis licensee or, in the case of an industrial hemp by-product, an industrial hemp grower.
(2) Subsection (1) comes into force on January 1, 2028.
40 (1) The portion of section 1.2 of the Regulations before paragraph (a) is replaced by the following:
1.2 For the purposes of subparagraph 158.11(3)(a)(ii) of the Excise Act, 2001, subsections 158.11(1) and (2) of that Act do not apply to the possession of a cannabis product by a person that is sterilizing the cannabis product if the person has in their possession documentation that provides evidence that
(2) Subsection (1) comes into force on January 1, 2028.
41 (1) The portion of section 1.3 of the Regulations before paragraph (a) is replaced by the following:
1.3 For the purposes of paragraph 158.11(6)(a) of the Excise Act, 2001, subsection 158.11(2) of that Act does not apply to the possession of cannabis products by a person in a particular specified province if
(2) Paragraph 1.3(b) of the Regulations is replaced by the following:
(b) the person is authorized by another province to sell cannabis products in the other province and
(i) if the other province is a common cannabis stamp province, each of the cannabis products is stamped with
(A) a common cannabis stamp, or
(B) a cannabis excise stamp that indicates that additional cannabis duty in respect of the other province has been paid, or
(ii) if the other province is a specified province but not a common cannabis stamp province, each of the cannabis products is stamped with a cannabis excise stamp that indicates that additional cannabis duty in respect of the other province has been paid; or
(3) Paragraph 1.3(b)(i) of the Regulations, as enacted by subsection (2), is replaced by the following:
(i) if the other province is a common cannabis stamp province, each of the cannabis products is stamped with a common cannabis stamp, or
(4) Subsections (1) and (2) come into force on January 1, 2028.
(5) Subsection (3) comes into force on January 1, 2030.
42 (1) The Regulations are amended by adding the following after section 1.3:
1.301 For the purposes of paragraph 158.11(7)(c) of the Excise Act, 2001, subsection 158.11(2.1) of that Act does not apply to the conveyance, but does apply to the sending, of a cannabis product by a person from one province to another if
(a) the person is an individual who possesses the cannabis product for their personal use and the total amount of the cannabis products that is being conveyed by the person is equivalent to no more than 30 g of dried cannabis, as determined in accordance with the Cannabis Act; or
(b) the person has in their possession documentation that provides evidence that the person is conveying the cannabis product on behalf of another person.
(2) Subsection (1) comes into force on January 1, 2028.
Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations
43 (1) Subsection 5.1(10) of the Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations is replaced by the following:
(10) For the purposes of subparagraph 158.13(c)(ii) of the Act and paragraph 158.13(d) of the Act, a prescribed condition is that the cannabis product is stamped by the other cannabis licensee in accordance with an authorized service agreement and in accordance with applicable conditions, if any, in respect of the authorized service agreement specified by the Minister under subsection (6).
(2) Subsection (1) comes into force on January 1, 2028.
Excise Duties on Cannabis Regulations
44 (1) The Excise Duties on Cannabis Regulations are amended by adding the following after section 4:
Marginal note:Common cannabis stamp province
4.1 For the purposes of the definition common cannabis stamp province in section 2 of the Act, the following provinces are prescribed:
(for illustrative purposes only)
(a) Province 1;
(b) Province 2;
(c) ...
(2) Subsection (1) comes into force on January 1, 2028.
45 (1) The Regulations are amended by adding the following after section 7:
Marginal note:Subsection 158.2(1) and section 187.11 — transfer to another province
7.1 (1) If a cannabis licensee delivers a cannabis product that is stamped with a common cannabis stamp to a purchaser for entry into the duty-paid market of a particular common cannabis stamp province, if ownership of the cannabis product is transferred back to the cannabis licensee, if the cannabis licensee subsequently delivers at a particular time the cannabis product to a purchaser for entry into the duty-paid market of another common cannabis stamp province and if the cannabis product is not re-worked after its entry into the duty-paid market of the particular common cannabis stamp province and before its entry into the duty-paid market of the other common cannabis stamp province, the following rules apply:
(a) for the purposes of section 187.11 of the Act, the cannabis licensee is a prescribed cannabis licensee, the cannabis product is a prescribed cannabis product, the amount of the refund under that section is equal to the additional cannabis duty in respect of the particular common cannabis stamp province imposed on the cannabis product and the prescribed date is the day that is two years after the day that includes the particular time;
(b) for the purposes of subsection 158.2(1) of the Act, a duty in respect of the other common cannabis stamp province is imposed under that subsection on the cannabis product in the amount determined under subsection 5(2) in respect of the cannabis product and the other common cannabis stamp province; and
(c) for greater certainty, the duty referred to in paragraph (b) is payable by the cannabis licensee at the particular time.
Marginal note:Application of section 158.32
(2) For greater certainty, the rules set out in paragraphs 158.32(a) and (b) of the Act apply for the purposes of subsection (1).
(2) Subsection (1) comes into force on January 1, 2028.
46 (1) The Regulations are amended by adding the following after section 9:
Marginal note:Prescribed amounts — section 250.1
9.1 For the purposes of section 250.1 of the Act, each of the following amounts is a prescribed amount:
(a) in respect of dried cannabis and fresh cannabis that is delivered to purchasers during the reporting period and that is for consumption, use or sale to consumers in a specific province,
(i) the total dollar amount of sales,
(ii) the total sales by weight, and
(iii) the total number of packages;
(b) in respect of cannabis plant seeds that are delivered to purchasers during the reporting period and that are for consumption, use or sale to consumers in a specific province,
(i) the total dollar amount of sales,
(ii) the total number of seeds, and
(iii) the total number of packages;
(c) in respect of cannabis plants that are delivered to purchasers during the reporting period and that are for consumption, use or sale to consumers in a specific province,
(i) the total dollar amount of sales,
(ii) the total number of plants, and
(iii) the total number of packages; and
(d) in respect of cannabis extracts, cannabis topicals and edible cannabis that are delivered to purchasers during the reporting period and that are for consumption, use or sale to consumers in a specific province,
(i) the total dollar amount of sales,
(ii) the total sales by weight of total THC, and
(iii) the total number of packages.
(2) Subsection (1) comes into force on January 1, 2028.
Spirits Licence Security Requirements
Excise Act, 2001
47 (1) Subsection 19(1) of the Excise Act, 2001 is replaced by the following:
Marginal note:Issuance of licence
19 (1) Subject to the regulations, on application, the Minister may issue an excise warehouse licence to a person that is not a retailer of alcohol authorizing the person to possess in their excise warehouse manufactured tobacco, cigars or vaping products that are not stamped, non-duty-paid packaged spirits or non-duty-paid packaged wine.
(2) Subsection (1) applies in respect of licences issued on or after the day on which the Act enacting that subsection receives royal assent.
48 (1) Paragraph 23(3)(b) of the Act is replaced by the following:
(b) shall require security in a form satisfactory to the Minister and in an amount determined in accordance with the regulations in the case of a spirits licence, a tobacco licence, a cannabis licence, a vaping product licence or an excise warehouse licence authorizing a person to possess in their excise warehouse non-duty-paid packaged spirits (other than an excise warehouse licence issued to His Majesty in right of a province or a liquor authority); and
(2) Subsection (1) applies in respect of licences issued on or after the day on which the Act enacting that subsection receives royal assent.
Regulations Respecting Excise Licences and Registrations
49 (1) Subsection 2(3) of the Regulations Respecting Excise Licences and Registrations is replaced by the following:
(3) Subject to subsection (4), an applicant for a licence issued under section 19 of the Act authorizing them to possess in their excise warehouse non-duty-paid packaged spirits or non-duty-paid packaged wine must, in addition to meeting the requirements of subsection (2), where the province in which the warehouse is located has enacted legislation respecting the warehousing of packaged alcohol, be authorized by that province or its liquor authority to warehouse the spirits or wine at that warehouse.
(2) Subsection (1) applies in respect of licences issued on or after the day on which that subsection is enacted or made.
50 (1) The portion of subsection 5(1) of the Regulations before paragraph (b) is replaced by the following:
5 (1) For the purposes of paragraph 23(3)(b) of the Act, the amount of security to be provided by an applicant for a spirits licence, a tobacco licence, a cannabis licence, a vaping product licence or an excise warehouse licence authorizing a person to possess in their excise warehouse non-duty-paid packaged spirits must be an amount of not less than $5,000 and
(a) in the case of a spirits licence,
(i) if the licensee is authorized under subsection 159.1(2) of the Act to have reporting periods that are fiscal half-years, be sufficient to ensure payment of one-sixth of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $2 million per licence, and
(ii) in any other case, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(b) of the Act up to a maximum amount of $2 million per licence;
(2) Subsection 5(1) of the Regulations is amended by striking out "and" at the end of paragraph (b), by adding "and" at the end of paragraph (c) and by adding the following after paragraph (c):
(d) in the case of an excise warehouse licence authorizing a person to possess in their excise warehouse non-duty-paid packaged spirits,
(i) if the licensee is authorized under subsection 159.1(2) of the Act to have reporting periods that are fiscal half-years, be sufficient to ensure payment of one-sixth of the amount of duty referred to in paragraph 160(b) of the Act in respect of spirits up to a maximum amount of $2 million per licence, and
(ii) in any other case, be sufficient to ensure payment of the amount of duty referred to in paragraph 160(b) of the Act in respect of spirits up to a maximum amount of $2 million per licence.
(3) Subsections (1) and (2) apply in respect of licences issued on or after the day on which those subsections are enacted or made.
Federal Fuel Excise Tax Licensing Framework
Excise Tax Act
51 (1) Subsection 23(4) of the Excise Tax Act is replaced by the following:
Marginal note:Imposition of excise tax — licensed wholesaler
(4) Subject to subsections (6) to (8.1), whenever goods mentioned in Schedule I are sold by a licensed wholesaler or are retained for the licensed wholesaler's own use or for rental by the licensed wholesaler to others, there shall be imposed, levied and collected, in addition to any other duty or tax payable under this Act or any other Act or law, an excise tax in respect of those goods, at the applicable rate set out in the applicable section in that Schedule, payable by the licensed wholesaler at the time the goods are delivered to the purchaser or so retained for use or rental.
(2) Subsection 23(6) of the Act is replaced by the following:
Marginal note:Tax not payable — resale
(6) The tax imposed under subsection (1) or (4) is not payable in the case of goods mentioned in Schedule I that are purchased or imported by a person that is a manufacturer licensed for the purposes of this Part, or a licensed wholesaler, for resale by the person.
(3) The portion of subsection 23(7) of the Act before paragraph (a) is replaced by the following:
Marginal note:Tax not payable — manufacturer
(7) The tax imposed under subsection (1) or (4) is not payable in the case of
(4) The portion of subsection 23(8) of the Act before paragraph (a) is replaced by the following:
Marginal note:Tax not payable — other
(8) The tax imposed under subsection (1) or (4) is not payable in the case of
(5) Subsection (1) is deemed to have come into force on the day after Budget Day.
(6) Subsections (2) to (4) apply in respect of goods that are imported, or delivered, to a purchaser after Budget Day.
52 (1) Subsection 55(2) of the Act is replaced by the following:
Marginal note:Licensed wholesaler — fuel
(2) A person is deemed to be a bona fide wholesaler for the purposes of this Act and the Minister may grant a licence to the person under subsection (1), even if the person does not fulfil the requirements of that subsection, if the person carries on the business of selling or delivering gasoline, diesel fuel or aviation fuel and, in the ordinary course of that business, delivers that type of fuel to
(a) a purchaser for the purpose of resale by the purchaser in the ordinary course of the purchaser's business; or
(b) a purchaser that is licensed under subsection (1) or that is a manufacturer licensed for the purposes of Part III.
(2) Section 55 of the Act is amended by adding the following after subsection (6):
Marginal note:Cancellation
(7) The Minister may cancel a licence granted under this section if, in the opinion of the Minister, it is no longer required for the purposes of this Act.
(3) Subsections (1) and (2) come into force on the first day of the month after the month in which the Act enacting those subsections receives royal assent.
53 (1) The Act is amended by adding the following after section 68.02:
Marginal note:Extraordinary circumstances — upstream tax amount
68.03 (1) The Minister may pay an amount to a manufacturer licensed for the purposes of Part III (in this subsection referred to as the "licensed person") if the following conditions are met:
(a) a particular quantity of fuel that is gasoline, diesel fuel or aviation fuel is delivered by a vendor to a purchaser that is the licensed person;
(b) an amount of tax under Part III (in this section referred to as the "upstream tax amount") was paid after 2016 and before Budget Day to the Receiver General in respect of the particular quantity of fuel by a person other than the licensed person;
(c) the licensed person paid to the vendor an amount as or on account of tax under Part III (in this section referred to as the "embedded amount") as part of the consideration that the licensed person paid to the vendor for the particular quantity of fuel and the embedded amount is equal to the upstream tax amount;
(d) after the delivery referred to in paragraph (a)
(i) the licensed person delivered the particular quantity of fuel to one or more purchasers under one or more sales of a quantity of fuel, and
(ii) in respect of each sale referred to in subparagraph (i)
(A) tax under Part III became payable by the licensed person after 2016 and before Budget Day in respect of the quantity of fuel, and
(B) the consideration that the purchaser paid to the licensed person in respect of the quantity of fuel did not include an amount as or on account of all or part of the upstream tax amount or the embedded amount;
(e) in calculating the total amount of tax payable under Part III for one or more reporting periods of the licensed person ending after 2016 and before Budget Day, the licensed person sought to reduce that total amount of tax payable for each of those reporting periods by an amount (in this subsection referred to as a "reduction amount") in respect of all or part of the embedded amount or the upstream tax amount and the Minister, in assessing, reassessing or making an additional assessment of the total amount of tax payable by the licensed person for each of those reporting periods, did not allow or credit the reduction amount for that reporting period;
(f) the total of all reduction amounts is equal to the upstream tax amount;
(g) no refund, rebate, drawback or remission of tax under Part III in respect of the particular quantity of fuel, or other payment in respect of, or calculated with reference to, tax under Part III in respect of the particular quantity of fuel, under this Act or any other Act of Parliament has been or may be paid or credited to any person; and
(h) the licensed person has evidence satisfactory to the Minister that the conditions in paragraphs (a) to (g) are met.
Marginal note:Amount of payment
(2) The amount of a payment under subsection (1) is equal to the upstream tax amount.
Marginal note:Timing of application
(3) No payment shall be made under this section unless an application for the payment is filed no later than the second anniversary of the day on which this section comes into force.
Marginal note:Form and filing of application
(4) Despite subsections 72(2) and (3), an application for a payment under this section must be made in a form authorized by the Minister containing information specified by the Minister and filed in a manner authorized by the Minister.
Marginal note:Deemed tax payable
(5) If, under this section, the Minister pays an amount to a person to which that person is not entitled, or pays an amount to a person in excess of the amount to which that person is entitled, the amount of the payment or the excess is deemed to be a tax payable by that person under Part III on the day on which the Minister made the payment.
(2) Subsection (1) comes into force on the day after the day on which the Act enacting that subsection receives royal assent.
54 (1) Section 68.18 of the Act is amended by adding the following after subsection (3):
Marginal note:Exception
(3.1) No amount shall be paid under subsection (2) to a person that is granted a licence under section 55 because of subsection 55(2).
(2) Subsection (1) comes into force on the first day of the month after the month in which the Act enacting that subsection receives royal assent.
Disclosure of Tax Debt to Credit Bureaus
Excise Tax Act
55 The Excise Tax Act is modified to give effect to the proposals relating to the Disclosure of Tax Debt to Credit Bureaus as described in the budget documents tabled by the Minister of Finance in the House of Commons on Budget Day.
Ministerial Delegations
Federal-Provincial Fiscal Arrangements Act
56 (1) Subsection 7(1) of the Federal-Provincial Fiscal Arrangements Act is replaced by the following:
Marginal note:Administration agreement — government of a province
7 (1) The Minister or the Minister of National Revenue, with the approval of the Governor in Council, may on behalf of the Government of Canada enter into an administration agreement with the government of a province.
Marginal note:Administration agreement — aboriginal government
(1.01) The Minister or the Minister of National Revenue may on behalf of the Government of Canada enter into an administration agreement with an aboriginal government.
(2) Subsection 7(2) of the Act is replaced by the following:
Marginal note:Amending agreement
(2) The Minister or the Minister of National Revenue may on behalf of the Government of Canada enter into an agreement amending the terms and conditions of an administration agreement.
(3) Subsections 7(2.1) and (2.2) of the Act are replaced by the following:
Marginal note:Confirmation of past amendments
(2.2) Amendments that were made to an administration agreement before June 26, 2013 are, for greater certainty, ratified and confirmed and all actions taken and payments made as a result of those amendments are ratified and confirmed if, on the date those amendments were made, the administration agreement authorized the Minister or the Minister of National Revenue to make those amendments and those amendments did not fundamentally alter the terms and conditions of the administration agreement.
57 Subsection 8.3(2) of the Act is replaced by the following:
Marginal note:Amending agreements
(2) The Minister may on behalf of the Government of Canada enter into an agreement with the government of a province amending or varying an agreement or arrangement with the province entered into under subsection (1) or this subsection or ratified and confirmed under section 8.7.
58 Subsection 8.8(2) of the Act is replaced by the following:
Marginal note:Amending agreements
(2) The Minister may on behalf of the Government of Canada enter into an agreement with the government of a province amending or varying an agreement or arrangement with the province entered into under subsection (1) or this subsection.
59 Subsection 8.9(2) of the Act is replaced by the following:
Marginal note:Amending agreements
(2) The Minister may on behalf of the Government of Canada enter into an agreement with the government of a province amending or varying an agreement or arrangement with the province entered into under subsection (1) or this subsection.
Excise Tax Act
60 (1) The portion of subsection 277.1(2) of the Excise Tax Act before paragraph (a) is replaced by the following:
Marginal note:New harmonized value-added tax system regulations — transition
(2) The Minister of Finance may make regulations, in relation to the transition by a province to the new harmonized value-added tax system,
(2) The portion of subsection 277.1(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:New harmonized value-added tax system regulations — provincial tax policy flexibility
(3) The Minister of Finance may make regulations
(3) The portion of subsection 277.1(4) of the Act before paragraph (a) is replaced by the following:
Marginal note:New harmonized value-added tax system regulations — general
(4) For the purpose of facilitating the implementation, application, administration and enforcement of the new harmonized value-added tax system or the transition by a province to the new harmonized value-added tax system, the Minister of Finance may make regulations
(4) Section 277.1 of the Act is amended by adding the following after subsection (4):
Marginal note:Regulations — other
(4.1) The Minister of Finance may make regulations
(a) prescribing anything that, by this Part, is to be prescribed or is to be determined or regulated by regulation and that relates to
(i) the transition by a province to the new harmonized value-added tax system,
(ii) the provincial tax policy flexibility, within the meaning of subsection (3), or
(iii) facilitating the implementation, application, administration and enforcement of the new harmonized value-added tax system; and
(b) described in any of paragraphs 225.2(9)(a) to (c) and 236.01(4)(a) to (c).
Marginal note:Regulations — concurrent authorities
(4.2) For greater certainty, in cases where the authorities conferred on the Minister of Finance under this section are concurrent with the authorities conferred on the Governor in Council under this Part, the Minister of Finance may make regulations under this section whether or not regulations respecting the same matter have been made by the Governor in Council under this Part and the authorities conferred on the Minister of Finance under this section do not limit or restrict the authorities conferred on the Governor in Council under this Part.
Excise Act, 2001
61 (1) The portion of subsection 304.1(2) of the Excise Act, 2001 before paragraph (a) is replaced by the following:
Marginal note:Coordinated cannabis duty system regulations — transition
(2) The Minister of Finance may make regulations, in relation to the joining of a province to the coordinated cannabis duty system,
(2) The portion of subsection 304.1(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Coordinated cannabis duty system regulations — rate variation
(3) The Minister of Finance may make regulations
(3) The portion of subsection 304.1(4) of the Act before paragraph (a) is replaced by the following:
Marginal note:Coordinated cannabis duty system regulations — general
(4) For the purpose of facilitating the implementation, application, administration and enforcement of the coordinated cannabis duty system or a rate variation or the joining of a province to the coordinated cannabis duty system, the Minister of Finance may make regulations
(4) Section 304.1 of the Act is amended by adding the following after subsection (4):
Marginal note:Regulations — other
(4.1) The Minister of Finance may make regulations prescribing any matter or thing that by this Act is to be or may be prescribed in relation to the coordinated cannabis duty system.
Marginal note:Regulations — concurrent authorities
(4.2) For greater certainty, in cases where the authorities conferred on the Minister of Finance under this section are concurrent with the authorities conferred on the Governor in Council under this Act, the Minister of Finance may make regulations under this section whether or not regulations respecting the same matter have been made by the Governor in Council under this Act and the authorities conferred on the Minister of Finance under this section do not limit or restrict the authorities conferred on the Governor in Council under this Act.
62 (1) The portion of subsection 304.3(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Coordinated vaping duty system regulations — transition
(2) The Minister of Finance may make regulations, in relation to the joining of a province to the coordinated vaping duty system,
(2) The portion of subsection 304.3(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Coordinated vaping duty system regulations — rate variation
(3) The Minister of Finance may make regulations
(3) The portion of subsection 304.3(4) of the Act before paragraph (a) is replaced by the following:
Marginal note:Coordinated vaping duty system regulations — general
(4) For the purpose of facilitating the implementation, application, administration and enforcement of the coordinated vaping duty system or a rate variation or the joining of a province to the coordinated vaping duty system, the Minister of Finance may make regulations
(4) Section 304.3 of the Act is amended by adding the following after subsection (4):
Marginal note:Regulations — other
(4.1) The Minister of Finance may make regulations prescribing any matter or thing that by this Act is to be or may be prescribed in relation to the coordinated vaping duty system.
Marginal note:Regulations — concurrent authorities
(4.2) For greater certainty, in cases where the authorities conferred on the Minister of Finance under this section are concurrent with the authorities conferred on the Governor in Council under this Act, the Minister of Finance may make regulations under this section whether or not regulations respecting the same matter have been made by the Governor in Council under this Act and the authorities conferred on the Minister of Finance under this section do not limit or restrict the authorities conferred on the Governor in Council under this Act.
First Nations Goods and Services Tax Act
63 (1) The portion of subsection 5(2) of the First Nations Goods and Services Tax Act before paragraph (a) is replaced by the following:
Marginal note:Administration agreement
(2) The Minister may on behalf of the Government of Canada enter into an agreement in respect of a first nation law, as defined in subsection 11(1) or 12(1), of a first nation with the authorized body of the first nation and, among other things, the agreement shall provide
(2) Subsections 5(3) and (3.1) of the Act are replaced by the following:
Marginal note:Amending agreements
(3) The Minister may on behalf of the Government of Canada enter into an agreement with the authorized body of a first nation amending or varying an administration agreement with the first nation or an agreement under this subsection.
64 (1) The portion of subsection 41(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Administration agreement
(2) The Minister may on behalf of the Government of Canada enter into an agreement in respect of a first nation law, as defined in subsection 39(1) or 40(1), of a first nation with the authorized body of the first nation and, among other things, the agreement is to provide
(2) Subsections 41(3) and (4) of the Act are replaced by the following:
Marginal note:Amending agreements
(3) The Minister may on behalf of the Government of Canada enter into an agreement with the authorized body of a first nation amending or varying an administration agreement with the first nation or an agreement under this subsection.
Administrative Penalties
Excise Tax Act
65 (1) Section 280.12 of the Excise Tax Act is replaced by the following:
Marginal note:Penalty — electronic payment
280.12 Every person that fails to comply with subsection 278(3) is liable to a penalty equal to $300 for each such failure.
(2) Subsection (1) applies in respect of payments and remittances made after 2027.
66 (1) Section 283 of the Act is replaced by the following:
Marginal note:Failure to answer demand
283 Every person who fails to file a return when required pursuant to a demand issued under section 282 is liable to a penalty equal to $500.
(2) Subsection (1) applies in respect of any demand sent by the Minister of National Revenue under section 282 of the Act after 2027.
67 (1) Section 284 of the Act is replaced by the following:
Marginal note:Failure to provide information
284 Every person who fails to provide any information or document when and as required under this Part or under a regulation made under this Part is, except if the Minister waives the penalty, liable to a penalty of $300 for every failure unless, in the case of information required in respect of another person, a reasonable effort was made by the person to obtain the information.
(2) Subsection (1) comes into force on January 1, 2028.
68 (1) The portion of section 285 of the Act before paragraph (a) is replaced by the following:
Marginal note:False statements or omissions
285 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 or answer (each of which is in this section referred to as a "return") made in respect of a reporting period or transaction is liable to a penalty of the greater of $300 and 25% of the total of
(2) Subsection (1) comes into force on January 1, 2028.
69 (1) Paragraphs 285.01(2)(a) and (b) of the Act are replaced by the following:
(a) unless paragraph (b) applies, $7,000; or
(b) $70,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 163.3 of the Income Tax Act.
(2) Paragraphs 285.01(3)(a) and (b) of the Act are replaced by the following:
(a) unless paragraph (b) applies, $7,000; or
(b) $70,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 163.3 of the Income Tax Act.
(3) Paragraphs 285.01(4)(a) to (c) of the Act are replaced by the following:
(a) unless paragraph (b) or (c) applies, $14,000;
(b) unless paragraph (c) applies, $70,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under subsection (2) or (3) or subsection 163.3(2) or (3) of the Income Tax Act; or
(c) $140,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this subsection or subsection 163.3(4) of the Income Tax Act.
(4) Subsections (1) to (3) come into force on January 1, 2028.
70 (1) Paragraphs 285.1(3)(a) and (b) of the Act are replaced by the following:
(a) if the statement is made in the course of a planning activity or a valuation activity, the greater of $2,000 and the total of the person's gross entitlements, at the time at which the notice of assessment of the penalty is sent to the person, in respect of the planning activity and the valuation activity; and
(b) in any other case, $2,000.
(2) Paragraph 285.1(5)(a) of the Act is replaced by the following:
(a) $2,000, and
(3) Subparagraph 285.1(5)(b)(i) of the Act is replaced by the following:
(i) the total of $200,000 and the person's gross compensation, at the time at which the notice of assessment of the penalty is sent to the person, in respect of the false statement that could be used by or on behalf of the other person, and
(4) Subsections (1) to (3) come into force on January 1, 2028.
71 The Act is modified to give effect to the proposals relating to the indexation to inflation of fixed-dollar administrative penalties as described in the budget documents tabled by the Minister of Finance in the House of Commons on Budget Day.
Excise Act, 2001
72 (1) Section 234 of the Excise Act, 2001 is replaced by the following:
Marginal note:Contravention of certain sections
234 (1) Every person that contravenes section 38, 40, 49, 61, 62.1, 99, 149, 151, 158.15, 158.5, 158.52 or 158.67 is liable to a penalty of not more than $45,000.
Marginal note:Failure to comply — tobacco products
(2) Every person who fails to return or destroy stamps as directed by the Minister under paragraph 25.5(b), or who fails to re-work or destroy a tobacco product in the manner authorized by the Minister under section 41, is liable to a penalty of not more than $45,000.
Marginal note:Failure to comply — cannabis products
(3) Every person that fails to return or destroy stamps as directed by the Minister under paragraph 158.07(b), or that fails to re-work or destroy a cannabis product in the manner authorized by the Minister under section 158.16, is liable to a penalty of not more than $45,000.
Marginal note:Failure to comply — vaping products
(4) Every person that fails to return or destroy stamps as directed by the Minister under paragraph 158.4(b), or that fails to re-work or destroy a vaping product in the manner authorized by the Minister under section 158.53, is liable to a penalty of not more than $45,000.
(2) Subsection (1) comes into force on January 1, 2028.
73 (1) Section 235 of the Act is replaced by the following:
Marginal note:Penalty for unauthorized export of raw leaf tobacco
235 Every tobacco grower who exports raw leaf tobacco without the written approval of the Minister or who fails to comply with a condition imposed by the Minister in respect of the export is liable to a penalty of not more than $45,000.
(2) Subsection (1) comes into force on January 1, 2028.
74 (1) Section 247 of the Act is replaced by the following:
Marginal note:Contravention — specially denatured alcohol
247 Every person who contravenes any of sections 96 to 98, 100, 102 or 103 is liable to a penalty of $20 per litre of specially denatured alcohol to which the contravention relates.
(2) Subsection (1) comes into force on January 1, 2028.
75 (1) Section 247.1 of the Act is replaced by the following:
Marginal note:Contravention — restricted formulations
247.1 Every person who contravenes section 93.1 or 93.2 is liable to a penalty of $20 per litre of restricted formulation to which the contravention relates.
(2) Subsection (1) comes into force on January 1, 2028.
76 (1) Paragraph 249(a) of the Act is replaced by the following:
(a) $2,000, and
(2) Subsection (1) comes into force on January 1, 2028.
77 (1) The portion of section 250 of the Act before paragraph (a) is replaced by the following:
Marginal note:Failure to comply
250 Every person is liable to a penalty of not more than $45,000 if the person fails to comply with
(2) Subsection (1) comes into force on January 1, 2028.
78 (1) Section 251 of the Act is replaced by the following:
Marginal note:Failure to answer demand
251 Every person who does not file a return as and when required under a demand issued under section 169 is liable to a penalty equal to $1,000.
(2) Subsection (1) applies in respect of any demand sent by the Minister of National Revenue under section 169 of the Act after 2027.
79 (1) Section 251.11 of the Act is replaced by the following:
Marginal note:Penalty — electronic payments
251.11 Every person that fails to comply with subsection 163(2) is liable to a penalty equal to $300 for each such failure.
(2) Subsection (1) applies in respect of payments made after 2027.
80 (1) Section 252 of the Act is replaced by the following:
Marginal note:Failure to provide information
252 Every person who fails to provide any information or record as and when required under this Act is liable to a penalty of $300 for every failure unless, in the case of information required in respect of another person, a reasonable effort was made by the person to obtain the information.
(2) Subsection (1) comes into force on January 1, 2028.
81 (1) The portion of section 253 of the Act before paragraph (a) is replaced by the following:
Marginal note:False statements or omissions
253 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 or answer (each of which is in this section referred to as a "return") made in respect of a reporting period or activity is liable to a penalty equal to the greater of $300 and 25% of the total of
(2) Subsection (1) comes into force on January 1, 2028.
82 The Act is modified to give effect to the proposals relating to the indexation to inflation of fixed-dollar administrative penalties as described in the budget documents tabled by the Minister of Finance in the House of Commons on Budget Day.
Air Travellers Security Charge Act
83 (1) Section 54 of the Air Travellers Security Charge Act is replaced by the following:
Marginal note:Penalty — electronic payments
54 Every person that fails to comply with subsection 20(2) is liable to a penalty equal to $300 for each such failure.
(2) Subsection (1) applies in respect of payments made after 2027.
84 (1) Section 56 of the Act is replaced by the following:
Marginal note:Failure to answer demand
56 Every person who fails to file a return as and when required under a demand issued under section 26 is liable to a penalty of $500.
(2) Subsection (1) applies in respect of any demand sent under section 26 of the Act by the Minister of National Revenue after 2027.
85 (1) Section 57 of the Act is replaced by the following:
Marginal note:Failure to provide information
57 Every person who fails to provide any information or record as and when required under this Act is liable to a penalty of $300 for every failure unless, in the case of information required in respect of another person, a reasonable effort was made by the person to obtain the information.
(2) Subsection (1) comes into force on January 1, 2028.
86 (1) The portion of section 58 of the Act before paragraph (a) is replaced by the following:
Marginal note:False statements or omissions
58 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 or answer (each of which is in this section referred to as a "return") is liable to a penalty of the greater of $300 and 25% of the total of
(2) Subsection (1) comes into force on January 1, 2028.
87 The Act is modified to give effect to the proposals relating to the indexation to inflation of fixed-dollar administrative penalties as described in the budget documents tabled by the Minister of Finance in the House of Commons on Budget Day.
Select Luxury Items Tax Act
88 (1) Paragraph 119(a) of the Select Luxury Items Tax Act is replaced by the following:
(a) in the case of a prescribed provision, $300; and
(2) Subsection (1) comes into force on January 1, 2028.
89 The Act is modified to give effect to the proposals relating to the indexation to inflation of fixed-dollar administrative penalties as described in the budget documents tabled by the Minister of Finance in the House of Commons on Budget Day.
Electronic Filing and Provision of Information (GST/HST) Regulations
90 (1) Paragraphs 3(a) and (b) of the Electronic Filing and Provision of Information (GST/HST) Regulations are replaced by the following:
(a) for the first failure by the person, $300; and
(b) for each subsequent failure by the person, $500.
(2) Subsection (1) applies in respect of a return that is required under Division V of Part IX of the Act to be filed on or before a day that is after 2027.
91 The Regulations are modified to give effect to the proposals relating to the indexation to inflation of fixed-dollar administrative penalties as described in the budget documents tabled by the Minister of Finance in the House of Commons on Budget Day.
Page details
- Date modified: