Marginal note:1994, c. 29, s. 10; 2000, c. 30, s. 15(1)

• 34. (1) Section 97.1 of the Act is replaced by the following:

  Marginal note:Offence of selling in another province cigarettes marked for sale in Ontario

  97.1 If cigarettes have been marked or stamped in accordance with a statute of the Province of Ontario to indicate that they are intended for sale in that province, every person who sells or offers for sale the cigarettes to a consumer in any other province is guilty of an offence and is liable on summary conviction to a fine of not less than $1,000 and not more than the greater of $1,000 and triple the amount by which

  • (a) the excise tax that would have been imposed under section 23 in respect of the cigarettes if the applicable rate of excise tax had been the rate set out in paragraph 1(f) of Schedule II

  exceeds

  • (b) the excise tax that was imposed under section 23 in respect of the cigarettes.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:2000, c. 30, s. 16(1)

• 35. (1) The portion of section 97.2 of the Act before paragraph (b) is replaced by the following:

  Marginal note:Offence of selling in another province cigarettes marked for sale in Quebec

  97.2 If cigarettes have been marked or stamped in accordance with a statute of the Province of Quebec to indicate that they are intended for sale in that province, every person who sells or offers for sale the cigarettes to a consumer in any other province is guilty of an offence and is liable on summary conviction to a fine of not less than $1,000 and not more than the greater of $1,000 and triple the amount by which

  • (a) the excise tax that would have been imposed under section 23 in respect of the cigarettes if the applicable rate of excise tax had been the rate set out in paragraph 1(f) of Schedule II

  exceeds

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:1997, c. 26, s. 72(1)

• 36. (1) Section 97.3 of the Act is repealed.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:1994, c. 29, s. 10; 1997, c. 26, s. 73(1); 2000, c. 30, s. 17(1) and par. 140(1)(b)

• 37. (1) Sections 97.4 and 97.5 of the Act are replaced by the following:

  Marginal note:Offence of unauthorized sale of cigarettes intended for Indian reserve

  97.4 Every person who sells or offers for sale black stock cigarettes described in subparagraph 1(a)(ii) of Schedule II in respect of which tax under section 23 was imposed at the rate set out in paragraph 1(a) of that Schedule to a person other than a supplier, an on-reserve retailer or an Indian consumer in the Province of Ontario is guilty of an offence and liable on summary conviction to a fine of not less than $1,000 and not more than the greater of $1,000 and triple the amount by which

  • (a) the excise tax that would have been imposed under section 23 in respect of the cigarettes if the applicable rate of excise tax had been the rate set out in paragraph 1(f) of Schedule II

  exceeds

  • (b) the excise tax that was imposed under section 23 in respect of the cigarettes.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:1994, c. 29, s. 11(1); 1999, c. 17, s. 156(c)

• 38. (1) Section 98.2 of the Act is repealed.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:1994, c. 29, s. 12

• 39. (1) Subsection 100(5) of the Act is replaced by the following:

  • Marginal note:Failure to make records and books available

    (5) Every person who fails to comply with section 98.1 is guilty of an offence and liable on summary conviction to a fine of not less than $200 and not more than $2,000 or to imprisonment for a term of not more than 6 months or to both the fine and imprisonment.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

Marginal note:2000, c. 30, s. 107(1)

• 40. (1) The portion of paragraph 1(a) of Schedule II to the Act before subparagraph (i) is replaced by the following:

  (a) $0.13138 for each five cigarettes or fraction of five cigarettes contained in any package, if

• Marginal note:2000, c. 30, s. 107(2)

  (2) Paragraph 1(b) of Schedule II to the Act is replaced by the following:

  (b) $0.12138 for each five cigarettes or fraction of five cigarettes contained in any package, if the cigarettes are marked or stamped in accordance with the Tobacco Tax Act, R.S.Q. 1977, c. I-2, to indicate that the cigarettes are intended for retail sale in the Province of Quebec; and

• Marginal note:1994, c. 29, s. 14(1); 1997, c. 26, ss. 74(3) and (4); 2000, c. 30, ss. 107(3) to (5) and par. 140(1)(f)

  (3) Paragraphs 1(c) to (e) of Schedule II to the Act are repealed.

• (4) Subsections (1) to (3) are deemed to have come into force on April 6, 2001.

Marginal note:1994, c. 29, s. 14(1); 1997, c. 26, s. 76(1); 2000, c. 30, s. 108(1)

• 41. (1) Sections 2 and 3 of Schedule II to the Act are replaced by the following:

  2. Tobacco sticks: $0.01965 per stick.

  3. Manufactured tobacco other than cigarettes and tobacco sticks: $15.648 per kilogram.

• (2) Subsection (1) is deemed to have come into force on April 6, 2001.

• 42. (1) Schedule VII to the Act is amended by adding the following after section 1:

  1.1 For the purposes of section 1, “duty” does not include a duty levied under subsection 21(2) of the Customs Tariff.

• (2) Subsection (1) comes into force or is deemed to have come into force on October 1, 2001.

R.S., c. 1 (5th Supp.)INCOME TAX ACT

• 43. (1) Subsection 182(1) of the Income Tax Act is replaced by the following:

  Marginal note:Surtax

  • 182. (1) Every corporation shall pay a tax under this Part for each taxation year equal to 50% of the corporation’s Part I tax on tobacco manufacturing profits for the year.

• (2) Subsection (1) applies to taxation years ending after April 5, 2001, except that, in its application to a corporation’s taxation year that includes that day, subsection 182(1) of the Act, as enacted by subsection (1), shall be read as follows:

  • 182. (1) Every corporation shall pay a tax under this Part for the corporation’s taxation year that includes April 5, 2001, equal to the total of

    • (a) 40% of that proportion of the corporation’s Part I tax on tobacco manufacturing profits for the year that the number of days in the year that are before April 6, 2001, is of the total number of days in the year, and

    • (b) 50% of that proportion of the corporation’s Part I tax on tobacco manufacturing profits for the year that the number of days in the year that are after April 5, 2001, is of the total number of days in the year.

APPLICATION

44. For the purposes of applying the provisions of the Customs Act, the Excise Act and the Excise Tax Act that provide for the payment of, or liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though this Act had been assented to on April 6, 2001.