O. Reg. 108/13: GENERAL

Link to law: http://www.ontario.ca/laws/regulation/r13108
Published: 2013-03-22

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ontario regulation 108/13

made under the

Tobacco Tax Act

Made: March 20, 2013
Filed: March 22, 2013
Published on e-Laws: March 22, 2013
Printed in The Ontario Gazette: April 6, 2013


Amending Reg. 1034 of R.R.O. 1990

(GENERAL)

1. (1) Subsection 1 (1) of Regulation 1034 of the Revised Regulations of Ontario, 1990 is amended by adding the following definitions:

“fine cut tobacco” means loose tobacco product that has been refined to the point where it could be formed into a cigarette;

“package of fine cut tobacco” means a container in which fine cut tobacco is packed for the purposes of sale at retail.

(2) The definition of “unmarked cigarettes” in subsection 1 (1) of the Regulation is revoked.

2. Section 2 of the Regulation is revoked and the following substituted:

2. (1) A person may mark a package of cigarettes, a carton or a case with an indicium only if the person is the holder of a permit to mark cigarettes.

(2) A person may apply to the Minister in a form approved by the Minister for a permit to mark cigarettes.

(3) The Minister may issue a permit to mark cigarettes to an applicant.

(4) A person who is the holder of a permit to mark cigarettes shall forthwith notify the Minister in writing,

(a) if there is a change in the name of the business of the person;

(b) if there is a change in the nature of the person’s business;

(c) if the person terminates the person’s business; or

(d) if the person closes or changes the location where packages of cigarettes, cartons or cases are marked by the person.

2.1 (1) A person may mark a package of fine cut tobacco with an indicium only if the person is the holder of a permit to mark fine cut tobacco.

(2) A person may apply to the Minister in a form approved by the Minister for a permit to mark fine cut tobacco.

(3) The Minister may issue a permit to mark fine cut tobacco to an applicant.

(4) A person who is the holder of a permit to mark fine cut tobacco shall forthwith notify the Minister in writing,

(a) if there is a change in the name of the business of the person;

(b) if there is a change in the nature of the person’s business;

(c) if the person terminates the person’s business; or

(d) if the person closes or changes the location where packages of fine cut tobacco are marked by the person.

3. Section 7 of the Regulation is revoked.

4. (1) Subsection 10 (3) of the Regulation is amended by striking out “shall, unless the applicant is a person described in clause 2 (7) (a), (b), (c) or (d), issue” in the portion before clause (a) and substituting “may issue”.

(2) Clause 10 (3) (c) of the Regulation is amended by striking out “collect the cigarette tax” and substituting “collect tax in respect of cigarettes”.

5. The Regulation is amended by adding the following section:

10.1 (1) A wholesaler shall not purchase, possess, store or sell in Ontario unmarked fine cut tobacco, unless the wholesaler holds a permit to purchase and sell unmarked fine cut tobacco.

(2) A wholesaler who is a collector may apply to the Minister in the form approved by the Minister for a permit to purchase and sell unmarked fine cut tobacco.

(3) The Minister may issue a permit to purchase and sell unmarked fine cut tobacco to an applicant if the applicant requires unmarked fine cut tobacco,

(a) for sale in Ontario to retail dealers situated on a reserve for resale to Indian consumers;

(b) for sale and delivery to those members of the Diplomatic Corps referred to in paragraph 1 of section 23; or

(c) for resale in a jurisdiction outside Ontario in which the applicant is designated in writing to collect tax in respect of fine cut tobacco levied by that jurisdiction.

(4) A retail dealer, except as provided in subsection (3), shall not purchase, possess, store or sell unmarked fine cut tobacco in Ontario.

6. (1) Subsection 11 (1) of the Regulation is amended by striking out “or stamped”.

(2) Section 11 of the Regulation is amended by adding the following subsection:

(1.1) A person who sells packages of fine cut tobacco that are marked with an indicium to a dealer who is not a collector shall collect and remit the tax imposed by the Act from the dealer in the manner set out under section 13.

(3) Subsection 11 (2) of the Regulation is amended by striking out “a permit to sell unmarked cigarettes” at the end and substituting “a permit to purchase and sell unmarked cigarettes”.

(4) Section 11 of the Regulation is amended by adding the following subsection:

(2.1) A manufacturer of fine cut tobacco shall not sell unmarked fine cut tobacco to a wholesaler unless the wholesaler is the holder of a permit to purchase and sell unmarked fine cut tobacco.

(5) Subsection 11 (3) of the Regulation is revoked and the following substituted:

(3) Every collector shall collect and remit the tax imposed by the Act in the manner set out in section 13 from each dealer or consumer to whom the collector sells,

(a) packages of cigarettes, cartons or cases that are marked with an indicium;

(b) packages of fine cut tobacco that are marked with an indicium;

(c) cigars or other tobacco products.

(6) Subsection 11 (4) of the Regulation is revoked and the following substituted:

(4) Every dealer who is not a collector shall collect and pay to a collector the tax imposed by the Act on all sales of,

(a) packages of cigarettes, cartons or cases that are marked with an indicium;

(b) packages of fine cut tobacco that are marked with an indicium; or

(c) cigars or other tobacco products made by the dealer.

7. (1) Subsection 13 (2) of the Regulation is revoked.

(2) Clause 13 (3) (a) of the Regulation is amended by striking out “cigarettes, cigars and tobacco” and substituting “tobacco products”.

(3) Clause 13 (3) (b) of the Regulation is amended by striking out “any cigarettes, cigars or tobacco” and substituting “any tobacco products”.

8. Section 15 of the Regulation is amended,

(a) by striking out “who purchases tobacco” and substituting “who purchases a tobacco product”; and

(b) by adding “product” after “with respect to the tobacco”.

9. Section 16 of the Regulation is revoked and the following substituted:

16. Every consumer who purchases a tobacco product from any person who does not hold either a retail dealer’s permit or a wholesaler’s permit issued under the Act, shall prepare a report giving particulars of the purchase and forward the report, together with all taxes due with respect to the tobacco product, to the Minister within 25 days of the purchase.

10. (1) Subsection 21 (1) of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:

(1) Every package of cigarettes that is manufactured before July 1, 2013 and that is intended to be sold in Ontario to a consumer who is required to pay tax under the Act shall be marked in the following manner:

. . . . .

(2) Section 21 of the Regulation is amended by adding the following subsections:

(1.1) Packages of cigarettes that are marked in accordance with subsection (1) shall not be sold to a consumer after December 31, 2013.

(1.2) Packages of cigarettes that are marked in accordance with subsection (1) and that are offered for sale to a consumer after December 31, 2013 are considered to be unmarked cigarettes.

(1.3) Every package of cigarettes that is manufactured after June 30, 2013 and that is intended to be sold in Ontario to a consumer who is required to pay tax under the Act shall be

marked with an indicium that is an excise stamp as defined in section 2 of the Excise Act, 2001

(Canada) that includes the letters “ON” and a background colour of opaque process yellow.

(3) Subsection 21 (2) of the Regulation is amended by striking out “or stamped” in the portion before paragraph 1.

(4) Subsection 21 (3) of the Regulation is revoked and the following substituted:

(3) A carton of cigarettes that is manufactured, imported or acquired for sale in Ontario to a consumer who is required to pay tax under the Act shall be marked by the affixing or imprinting of the indicium.

(5) Subsection 21 (4) of the Regulation is amended by striking out “case” and substituting “carton”.

(6) Subsection 21 (5) of the Regulation is amended by striking out “marked or stamped” wherever it appears and substituting in each case “marked”.

11. The Regulation is amended by adding the following sections:

21.1 (1) Every package of fine cut tobacco that is manufactured after June 30, 2013 and that is intended to be sold in Ontario to a consumer required to pay tax under the Act shall be marked with an indicium that is an excise stamp as defined in section 2 of the Excise Act, 2001 (Canada) that includes the letters “ON” and a background colour of opaque process yellow.

(2) A package of fine cut tobacco may not be sold in Ontario to a consumer after January 1, 2014 unless it is marked in accordance with subsection (1).  However, packages of fine cut tobacco may be sold in Ontario to a consumer before January 1, 2014 without being marked in accordance with subsection (1).

21.2 Every person who is the holder of a permit to mark cigarettes or fine cut tobacco shall,

(a) order all indicia from the Minister of National Revenue (Canada) in accordance with subsection 25.1 (1) of the Excise Act, 2001 (Canada);

(b) account for all indicia received from the producer of indicia authorized by the Minister of National Revenue (Canada) under subsection 25.1 (4) of the Excise Act, 2001 (Canada); and

(c) safeguard all indicia in the holder’s possession.

12. (1) Subsection 22 (1) of the Regulation is amended by striking out “or stamped”.

(2) Section 22 of the Regulation is amended by adding the following subsection:

(3) A dealer may distribute a package of fine cut tobacco free of charge only if the package is marked with an indicium in accordance with section 21.1.

13. (1) Paragraph 1 of section 23 of the Regulation is amended by striking out “tobacco” in the portion before subparagraph i and substituting “tobacco product”.

(2) Paragraph 2 of section 23 of the Regulation is revoked and the following substituted:

2. Indians who purchase on a reserve unmarked cigarettes, unmarked fine cut tobacco or tobacco products other than cigarettes or fine cut tobacco for their exclusive use, and “reserve” for the purposes of this section means a reserve, as defined under the Indian Act (Canada) or an Indian settlement located on Crown land, the Indian inhabitants of which are treated by Aboriginal Affairs and Northern Development Canada in the same manner as Indians residing on a reserve as defined under the Indian Act (Canada).

14. (1) Paragraph 1 of subsection 24 (1) of the Regulation is amended by striking out “Tobacco that is” at the beginning and substituting “A tobacco product that is”.

(2) Paragraph 2 of subsection 24 (1) of the Regulation is amended by striking out “Unmarked cigarettes or tobacco products other than cigarettes” at the beginning and substituting “Unmarked cigarettes, unmarked fine cut tobacco or tobacco products other than cigarettes or fine cut tobacco”.

(3) Paragraph 3 of subsection 24 (1) of the Regulation is amended by striking out “Unmarked cigarettes or tobacco products other than cigarettes” in the portion before subparagraph i and substituting “Unmarked cigarettes, unmarked fine cut tobacco or tobacco products other than cigarettes or fine cut tobacco”.

(4) The definition of “sale in bulk” in subsection 24 (2) of the Regulation is amended by striking out “tobacco” and substituting “tobacco products”.

Commencement

15. This Regulation comes into force on April 1, 2013.