Part 3
Overview: Amendments to the Excise Act, 2001, The Excise Tax Act (Other than GST/HST Measures) and The Air Travellers Security Charge Act

Table of contents - Previous - Next

Part 3

Part 3 implements the following excise measures proposed in the February 11, 2014 Budget.

A. Tobacco Taxation

Reducing tobacco consumption is an important health objective, and a key tool in achieving this objective is the excise duty on tobacco products. The general domestic rate of excise duty on cigarettes has not effectively changed since 2002, meaning that the real rate of the excise duty has deteriorated by 23.7 per cent. This measure amends the Excise Act, 2001 to restore the effectiveness of the excise duty on tobacco products by adjusting the domestic rate of excise duty on such products to account for inflation and eliminating the preferential excise duty treatment of tobacco products available through duty free markets.

This measure applies as of February 12, 2014.

B. Standardizing Sanctions Related to False Statements in Excise Tax Returns

The non-GST/HST portion of the Excise Tax Act does not contain an administrative monetary penalty for false statements. As well, the current criminal offence for this purpose does not provide for the possibility of prosecution by indictment. Consistent with similar provisions under the GST/HST portion of the Excise Tax Act, the addition of a new administrative monetary penalty and an amended criminal offence, for the making of false statements or omissions, helps ensure that excise tax returns are filed accurately.

This measure will apply to excise tax returns filed after the day on which Royal Assent is received.

C. Combating Tax Non-compliance

This measure clarifies and strengthens the Canada Revenue Agency's ability to share information, under the Excise Act, 2001, with the Financial Transactions and Reports Analysis Centre of Canada. This measure is consequential to amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to strengthen Canada's anti-money laundering and anti-terrorist financing regime.

Similar amendments are made to the Income Tax Act and the Excise Tax Act.

This measure applies on Royal Assent.

Part 3 (Other)

A. Serious Offences

This measure amends the confidential information provisions of the Excise Act, 2001 to permit the disclosure of confidential information to an appropriate police organization where there are reasonable grounds to suspect that the information would be relevant to the investigation of a serious offence, including money laundering. Draft legislative proposals were released for comment on July 12, 2013.

Similar amendments are made to the Income Tax Act andthe Excise Tax Act.

This measure applies on Royal Assent.

B. Offshore Tax Informant Program

Under the Offshore Tax Informant Program, originally announced in Economic Action Plan 2013, the Canada Revenue Agency will pay rewards to individuals who provide information relating to major international tax non-compliance where that information leads to the collection of tax. This measure permits the sharing of information, under the Excise Act, 2001, for the purposes of the administration by the Canada Revenue Agency of this Program.

Similar amendments are made to the Income Tax Act and the Excise Tax Act.

This measure applies on Royal Assent.

C. International Electronic Funds Transfers

The Economic Action Plan 2013 announced that certain financial intermediaries will be required under the Income Tax Act to report to the Canada Revenue Agency international electronic funds transfers of $10,000 or more. This measure clarifies that those reports may be used for the purposes of the administration of the Excise Act, 2001, the non-GST/HST portion of the Excise Tax Act and the Air Travellers Security Charge Act. Draft legislative proposals were released for comment on January 9, 2014.

This amendment is consequential to amendments to the Income Tax Act. Similar amendments are made to the GST/HST portion of the Excise Tax Act.

This measure applies as of January 1, 2015.

Table of contents - Previous - Next