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The Tobacco Tax Act
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This version was current from to June 10, 2009.

Note: It does not reflect any retroactive amendment enacted after June 10, 2009.
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C.C.S.M. c. T80

The Tobacco Tax Act

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions

1(1)        In this Act

"agent for collection of the Canada Post Corporation" means any person authorized in writing by Canada Post Corporation to collect as its agent duties as defined in the Customs Act (Canada) under terms and conditions consistent with a collection agreement in respect of mail; (« agent de perception de la Société canadienne des postes »)

"agent for enforcement" means

(a) an officer as defined in section 2 of the Customs Act (Canada) employed at a customs office in the Province,

(b) the Canada Post Corporation, where the Minister of National Revenue has entered into a collection agreement with that Corporation in respect of mail, and

(c) any agent for collection of the Canada Post Corporation; (« agent d'exécution »)

"cigarette" includes a preportioned stick; (« cigarette »)

"collection agreement in respect of mail" means an agreement in writing between the Minister of National Revenue and Canada Post Corporation pursuant to which the Minister authorizes the Corporation, and the Corporation agrees, to collect as agent of the Minister duties as defined in the Customs Act (Canada) in respect of mail. (« accord de perception relatif au courrier »)

"collector" means a person appointed a collector under section 9; but does not include a deputy collector or an agent for enforcement; (« collecteur »)

"dealer" means any person who in the province sells tobacco or offers or keeps tobacco for sale, either by wholesale or by retail; (« marchand »)

"deputy collector" means a person duly appointed by a collector under subsection 9(11), or deemed to have been appointed by him under subsection 9(12) for the purposes therein stated; (« collecteur adjoint »)

"director" means the Deputy Minister of Finance or any Assistant Deputy Minister of Finance; (« directeur »)

"licence" means a licence issued by the director under this Act; (« permis »)

"marked for the tax purposes of Manitoba", with reference to cigarettes or fine cut tobacco, means that its packaging is marked in accordance with the regulations under clause 28(1)(o); (« marqué à des fins fiscales pour le Manitoba »)

"minister" means the Minister of Finance; (« ministre »)

"package" means package, box, tin, or other container, in which tobacco is contained or sold at retail; (« paquet »)

"packaging" means a package, case, carton or other container; (« emballage »)

"permit" means a permit issued under this Act; (« licence »)

"person" includes a partnership, a trust and the Crown in right of Manitoba; (« personne »)

"preportioned stick" means a roll of tobacco that is encased in material other than tobacco leaf and where the roll of tobacco exceeds 90 millimeters in length, each 60 millimeter length or part thereof is deemed to be a separate preportioned stick; (« bâtonnet mesuré »)

"purchaser", except in sections 20.1 and 20.2, means any person who

(a) purchases or receives delivery of tobacco within the province, or

(b) in the case of a person residing or ordinarily resident or carrying on business in the province, brings into the province tobacco acquired outside of the province,

for his own use, or for use by others at his expense, or on behalf of, or as the agent for, a principal who desires to acquire the tobacco for use by him or other persons at his expense and includes Her Majesty in right of Manitoba and all government boards and agencies, and Crown corporations established and administered by or on behalf of Her Majesty in right of Manitoba; but does not include a person who acquires tobacco for resale; (« acheteur »)

"raw leaf tobacco" means tobacco, or the leaves of the tobacco plant, that is unmanufactured in whole or in part; (« tabac naturel en feuilles »)

"retail dealer" means a dealer who sells tobacco, or offers or keeps tobacco for sale, directly to purchasers; (« détaillant »)

"stamped for the tax purposes of Manitoba", with reference to cigarettes or fine cut tobacco, means that its packaging is stamped in accordance with the regulations under clause 28(1)(o); (« timbré à des fins fiscales pour le Manitoba »)

"subsisting licence" means a licence that has not been suspended or cancelled and that has not expired; (« permis en vigueur »)

"tax" means the tax imposed under section 2; (« taxe »)

"tobacco" or "tobacco product" means tobacco in any form in which tobacco is consumed and includes snuff and raw leaf tobacco; (« tabac » ou « produit du tabac »)

"unit" means

(a) in relation to cigarettes or fine cut tobacco,

(i) 200 cigarettes, or

(ii) 200 grams of fine cut tobacco, and

(b) in relation to a tobacco product other than cigarettes or fine cut tobacco,

(i) 50 cigars, or

(ii) 200 grams of a tobacco product other than cigars; (« unité »)

"vehicle" means a device in, on or by which a person or thing may be transported or drawn; (« véhicule »)

"wholesale dealer" means any dealer other than a retail dealer. (« grossiste »)

Interpretation

1(2)        For greater certainty, this Act shall be interpreted so as not to regulate any transaction that is not subject to the legislative authority of the Legislature of Manitoba.

S.M. 1989-90, c. 15, s. 76; S.M. 1992, c. 52, s. 75; S.M. 1993, c. 46, s. 86; S.M. 1994, c. 23, s. 42; S.M. 1995, c. 5, s. 2; S.M. 2005, c. 40, s. 114; S.M. 2006, c. 24, s. 93.

Administration and enforcement

1.1         Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act.

S.M. 2005, c. 40, s. 115.

Imposition of tax

2(1)        Every purchaser shall pay to Her Majesty in right of Manitoba, for the public use of the government, a tax at the following rate or, if a rate prescribed by regulation is in effect, at the prescribed rate:

(a) 17.5¢ on every cigarette;

(b) for every cigar, $5. or 75% of its price at retail, whichever is less;

(c) 15¢ for every gram or fraction of a gram of raw leaf tobacco;

(d) 16.5¢ for every gram or fraction of a gram of tobacco not referred to in any of clauses (a) to (c).

Tax payable when tobacco received

2(2)        Where a purchaser acquires tobacco from a dealer, he shall pay the tax to that dealer at the time he receives the tobacco.

Tax payable in other circumstances

2(3)        A purchaser other than

(a) a purchaser who acquires tobacco from a dealer and has paid the tax to the dealer; or

(b) a purchaser as defined in subsection 20.1(1) who has paid the tax in accordance with section 20.2;

shall report and pay tax in respect of the tobacco in accordance with the regulations.

Computation of tax

2(4)        The tax payable on tobacco other than cigars shall be computed separately on every package.

Computation of tax — cigars

2(5)        The tax payable on cigars shall be computed separately on the price at retail of each cigar, whether or not it is sold in a package.

Definition of "price at retail"

2(6)        In this section, for the purpose of determining the amount of tax payable on a cigar,

(a) where the purchaser acquires the cigar from a dealer, "price at retail" means the price paid by the purchaser for the cigar, but where that price is not known to the collector, means an amount equal to the sum of

(i) the price at which the cigar was sold at wholesale by a collector, and

(ii) an additional amount, representing the average mark-up by retail dealers in the province over the price at wholesale of cigars of that price, as determined in accordance with a formula or method of calculation prescribed in the regulations; and

(b) where a purchaser, other than a purchaser referred to in clause 2(3)(a) or (b), acquires the cigar, "price at retail" means the price paid by the purchaser for the cigar, but where that price cannot be determined or no price is paid for the cigar, the minister may fix the price at retail in respect of which the tax is payable.

S.M. 1988-89, c. 19, s. 59; S.M. 1989-90, c. 15, s. 77; S.M. 1990-91, c. 13, s. 22; S.M. 1991-92, c. 31, s. 35; S.M. 1992, c. 52, s. 76; S.M. 1993, c. 46, s. 87; S.M. 1995, c. 5, s. 3; S.M. 2000, c. 39, s. 98; S.M. 2001, c. 41, s. 41; S.M. 2002, c. 19, s. 72; S.M. 2003, c. 4, s. 140; S.M. 2004, c. 43, s. 114; S.M. 2006, c. 24, s. 94.

Fraction of a cent not required to be remitted

3           When the amount to be remitted by a collector, a deputy collector or a dealer to whom subsection 9(2) applies is a specific amount plus a fraction of a cent, the collector, deputy collector or dealer is not required to remit the fraction of a cent.

S.M. 1995, c. 5, s. 4.

PROHIBITIONS RESPECTING POSSESSION OR SALE OF TOBACCO

Interpretation of "person"

3.1(1)      For greater certainty, in this section "person" includes a purchaser.

Possession of cigarettes etc. not Manitoba marked

3.1(2)      No person shall be in possession of cigarettes or fine cut tobacco the packaging of which is not marked or stamped for the tax purposes of Manitoba.

Exception

3.1(3)      No one contravenes subsection (2) if

(a) that person establishes that he or she

(i) was authorized to collect taxes on cigarettes or fine cut tobacco for a jurisdiction outside Manitoba,

(ii) possessed the cigarettes or fine cut tobacco for the purpose of transporting it out of Manitoba for sale, and

(iii) took all reasonable steps to comply with any requirements imposed by regulation for the purpose of this clause;

(a.1) the packaging of the cigarettes or fine cut tobacco meets the requirements of the Excise Tax Act (Canada) and the quantity in the person's possession does not exceed one unit of cigarettes and one unit of fine cut tobacco;

(b) that person establishes that he or she

(i) was a common carrier under contract for the transport of the cigarettes or fine cut tobacco,

(ii) had

(A) no reasonable means of knowing that the packaging of the cigarettes or fine cut tobacco was not marked or stamped for the tax purposes of Manitoba, or

(B) a reasonable belief that the cigarettes or fine cut tobacco was addressed or directed for delivery to a person who was lawfully entitled to possess it, and

(iii) took all reasonable steps to comply with any requirements imposed by regulation for the purpose of this clause;

(c) having been in possession of cigarettes, fine cut tobacco or any combination of cigarettes and fine cut tobacco in a quantity equal to or greater than six units or such other number of units prescribed by regulation for the purpose of this clause, that person establishes that he or she

(i) was the holder of a subsisting permit for the cigarettes or fine cut tobacco, and

(ii) took all reasonable steps to comply with the permit;

(d) having been in possession of cigarettes, fine cut tobacco or any combination of cigarettes and fine cut tobacco in a quantity that was more than one and fewer than six or such other number of units prescribed by regulation for the purpose of clause (c), that person establishes that he or she took all reasonable steps to comply with the regulations under clause 28(1)(o) with respect to the stamping of the packaging of the cigarettes or fine cut tobacco for the tax purposes of Manitoba;

(e) that person establishes that he or she was a person prescribed by regulation and took all reasonable steps to comply with any requirements imposed by regulation for the purpose of this clause; or

(f) that person establishes that he or she was exempted by regulation.

S.M. 1995, c. 5, s. 5; S.M. 1998, c. 30, s. 71; S.M. 2005, c. 40, s. 116; S.M. 2007, c. 6, s. 97.

Sale etc. of cigarettes etc. not Manitoba marked

3.2          No person shall, except in accordance with the regulations under clause 28(1)(o), sell or offer to sell cigarettes or fine cut tobacco the packaging of which is not marked or stamped for the tax purposes of Manitoba.

S.M. 1995, c. 5, s. 5; S.M. 2005, c. 40, s. 116.

Possession for sale of cigarettes etc. not Manitoba marked

3.3(1)      No person shall be in possession for the purpose of sale of cigarettes or fine cut tobacco the packaging of which is not marked or stamped for the tax purposes of Manitoba.

Exception

3.3(2)      No one contravenes subsection (1) if that person establishes that

(a) he or she

(i)  was authorized to collect taxes on cigarettes or fine cut tobacco for a jurisdiction outside Manitoba,

(ii) possessed the cigarettes or fine cut tobacco for the purpose of transporting it out of Manitoba for sale, and

(iii) took all reasonable steps to comply with any requirements imposed by regulation for the purpose of this clause;

(b) he or she

(i) was the holder of a subsisting dealer's licence,

(ii) was the holder of a subsisting permit for the cigarettes or fine cut tobacco, and

(iii) took all reasonable steps to comply with the permit;

(c) he or she was a person prescribed by regulation and took all reasonable steps to comply with any requirements imposed by regulation for the purpose of this clause; or

(d) he or she was exempted by regulation.

S.M. 1995, c. 5, s. 5.

3.4         Repealed.

S.M. 1995, c. 5, s. 5; S.M. 2006, c. 24, s. 95.

3.5         Repealed.

S.M. 1995, c. 5, s. 5; S.M. 1998, c. 30, s. 72; S.M. 2005, c. 40, s. 118.

Possession of cigars, pipe tobacco etc.

3.6         No person shall be in possession of more than one unit of a tobacco product other than cigarettes or fine cut tobacco unless that person

(a) is a collector;

(b) acquired the tobacco product from the holder of a subsisting dealer's licence or a collector;

(c) possesses the tobacco product as a common carrier under contract for the transport of it and reasonably believes that it is being delivered to a person who is lawfully entitled to possess it;

(d) establishes that he or she has taken all reasonable steps to report and pay, account for or remit tax in accordance with this Act and the regulations; or

(e) is exempted by regulation.

S.M. 1995, c. 5, s. 5; S.M. 2006, c. 24, s. 96.

Possession limit of five units

3.7         No person shall be in possession of more than five units of tobacco unless the person

(a) holds a subsisting dealer's licence;

(b) is a collector;

(c) possesses the tobacco as a common carrier under contract for the transport of it and reasonably believes that it is being delivered to a person who is lawfully entitled to possess it; or

(d) is exempted by regulation from the application of this section.

S.M. 2006, c. 24, s. 97.

LICENCES AND PERMITS

Retail dealer's licence required

4(1)        No person shall within the province sell or offer to sell tobacco to purchasers, or be in possession of tobacco for sale to purchasers, unless he is the holder of a subsisting licence for that purpose issued by the director and is a collector or a deputy collector.

Licence specific to location

4(1.1)      A retail dealer's licence that specifies a location authorizes the sale of tobacco to purchasers only at that location.

Wholesale dealer's licence required

4(2)        No person shall within the province sell or offer to sell tobacco at wholesale, or be in possession of tobacco at wholesale, unless he is the holder of a subsisting licence for that purpose issued by the director and is a collector or a deputy collector.

Identification required on vending machines

4(3)        No person shall sell or offer to sell tobacco by the use of a vending machine unless each machine used by him is visibly identified with a label indicating the person's name, business address and retail dealer's tobacco licence number.

Licence to sell to retail dealer

4(4)        No person shall, within the province, sell or offer to sell tobacco to a retail dealer unless the seller is the holder of a subsisting licence issued by the director to a wholesale dealer.

Dealer to purchase from licensed wholesaler

4(4.1)      No retail dealer shall purchase or offer to purchase tobacco from a dealer who is not a collector or deputy collector with a subsisting wholesaler's licence issued under subsection (2).

Limitation on sales

4(5)        No person shall, within the province, sell or offer to sell tobacco to a retail dealer unless that retail dealer is the holder of a subsisting licence issued by the director to a retail dealer.

Application for dealer's licence

4(6)         A person who desires a dealer's licence must apply to the director for it.

S.M. 1995, c. 5, s. 6; S.M. 2003, c. 4, s. 141; S.M. 2004, c. 43, s. 115; S.M. 2005, c. 40, s. 120.

Permit for possession of cigarettes or fine cut tobacco

4.1         The director may issue a permit for a person to possess cigarettes or fine cut tobacco the packaging of which is not marked or stamped for the tax purposes of Manitoba.  In doing so, the director may impose any conditions or restrictions the director considers appropriate, including a condition that the holder

(a) pay the anticipated amount of tax or account for it;

(b) provide security for the tax that may be payable or the holder may be required to account for; or

(c) comply with the regulations with respect to the stamping of the packaging of cigarettes or fine cut tobacco for the tax purposes of Manitoba.

S.M. 2005, c. 40, s. 121.

Permit for producing mark or stamp

4.2         No person shall produce a mark or stamp capable of being applied to the packaging of cigarettes or fine cut tobacco to represent the packaging as being marked or stamped for the tax purposes of Manitoba, except as authorized by a permit issued by the director.

S.M. 2005, c. 40, s. 121; S.M. 2008, c. 3, s. 83.

Permit for equipment

4.3         No person shall, within Manitoba, possess equipment for

(a) manufacturing or packaging tobacco products for sale in Manitoba; or

(b) marking or stamping tobacco products for the tax purposes of Manitoba;

except as authorized by a permit issued by the director.

S.M. 2008, c. 3, s. 83.

Director may issue licence or permit

5(1)        The director may issue any licence or permit required or authorized by this Act.  It must contain such information as the regulations require, and may be issued subject to any conditions or restrictions not inconsistent with this Act and the regulations that the director considers appropriate.

Fee for licence or permit

5(2)        Every licence or permit shall be issued only on payment of such fee, or without fee, as may be prescribed in the regulations.

Absolute requirement of licence or permit

5(3)        A licence or permit under this Act is in addition to any licence or authority required under any other Act of the Legislature.

Licence or permit not transferable

5(4)        A licence or permit is not transferable, and no person may act under it or rely upon it other than

(a) the person to whom it was issued; or

(b) any other person in his or her capacity as an employee or agent of the person to whom it was issued.

S.M. 2003, c. 4, s. 142; S.M. 2005, c. 40, s. 122.

6           Repealed.

S.M. 1994, c. 23, s. 43; S.M. 1995, c. 5, s. 7; S.M. 2005, c. 40, s. 123.

7           Repealed.

S.M. 1998, c. 30, s. 73; S.M. 2005, c. 40, s. 123.

8           Repealed.

S.M. 2005, c. 40, s. 123.

COLLECTORS

Appointment of collector

9(1)        The minister may appoint any person to be a collector under this Act.

Dealer to account for taxes etc.

9(2)        A dealer, other than a dealer exempted by regulation, who holds a subsisting dealer's licence and who

(a) is in possession of a tobacco product for the purpose of sale and on which the tax has not been accounted for; or

(b) has the immediate right to possession of a tobacco product for the purpose of sale and upon which the tax has not been accounted for;

shall report and account for, collect or remit tax in accordance with the regulations.

9(3) to (4.1)  Repealed, S.M. 1995, c. 5, s. 8.

9(5) to (9.2)  Repealed, S.M. 2005, c. 40, s. 123.

Agreements with collectors

9(10)       The minister for and on behalf of the government may enter into an agreement with any collector setting forth the duties to be performed by the collector and such other matters as the minister may deem necessary or advisable.

Appointment of deputy collectors

9(11)       A collector may appoint any licensed retail dealer or licensed wholesale dealer to be his deputy collector; and except in cases to which subsection (12) applies, he shall, on appointing a deputy collector, forthwith notify the minister in writing of the name and address of the person appointed.

Dealers deemed to be deputy collectors

9(12)       Except where the dealer is himself a collector appointed under subsection (1), every dealer to whom tobacco is sold or delivered by a collector shall be deemed to have been appointed a deputy collector by that collector who makes the sale or delivery, and shall carry out and perform the duties imposed on a deputy collector under this Act and the regulations.

9(13) to (17)  Repealed, S.M. 2005, c. 40, s. 123.

M.R. S.M. 1988-89, c. 19, s. 60; S.M. 1989-90, c. 15, s. 78; S.M. 1993, c. 46, s. 88; S.M. 1994, c. 23, s. 44; S.M. 1995, c. 5, s. 8; S.M. 2003, c. 4, s. 143; S.M. 2004, c. 43, s. 116; S.M. 2005, c. 40, s. 123.

COLLECTION AND REMISSION OF TAX

Duty of collectors

10(1)       Every collector shall collect the tax, or cause it to be collected, from each purchaser who purchases tobacco in respect of which the tax is payable from him or from a retail dealer or wholesale dealer who is a deputy collector appointed or deemed to have been appointed by him.

Duty of deputy collectors

10(2)       Every retail dealer, and every wholesale dealer who is also a deputy collector, from whom tobacco is purchased in respect of which the tax is payable shall collect the tax from the purchaser thereof.

Tax deemed to have been collected

10(3)       Where a dealer or a collector fails to collect tax which, under this Act, he is required to collect, he shall nevertheless be conclusively deemed to have collected the tax.

10(4)       Repealed, S.M. 2005, c. 40, s. 123.

Reports on change of rate

10(5)       Where, at the time of a change in rate of tax imposed under this Act, a dealer has tobacco in his possession, he shall prepare such reports as may be required under the regulations, and shall remit to the minister any tax collected on the sale of that tobacco to purchasers in a manner and at times prescribed in the regulations.

Remission of proceeds

10(6)       Subject to subsection (7), a deputy collector who collects the tax from any purchaser as provided in subsection (2) shall, in the manner and at times agreed by the collector and the deputy collector, remit to the collector whose deputy collector he is the moneys collected as proceeds of the tax.

10(7)       Repealed, S.M. 1995, c. 5, s. 9.

S.M. 1995, c. 5, s. 9; S.M. 2005, c. 40, s. 123.

Remission of tax by collectors

11(1)       Every collector shall, in the manner and at the times prescribed by the regulations, remit to the minister all moneys received by him under section 10 either directly from the purchasers or through deputy collectors as proceeds of the tax; and the remittance shall be accompanied by a return containing such information as the regulations require.

11(2) and (3) Repealed, S.M. 2005, c. 40, s. 123.

L.M. 1995, c. 5, art. 10; L.M. 2003, c. 4, art. 144; L.M. 2004, c. 43, art. 117; S.M. 2005, c. 40, s. 123.

Agents of Crown

12(1)       Every collector and every deputy collector is an agent of Her Majesty for the purposes of the collection of the tax and the remission of the moneys collected as proceeds of the tax.

Revenue officers

12(2)       Every collector and every deputy collector is, for the purposes of collecting and remitting the tax but not otherwise, a revenue officer within the meaning of The Financial Administration Act, and is subject to the duties and liabilities of a revenue officer under that Act.

12(3) to (5)Repealed, S.M. 2005, c. 40, s. 123.

S.M. 1998, c. 30, s. 74; S.M. 2005, c. 40, s. 123.

Agreement with collectors

13(1)       In order to facilitate the collection of the tax, and the remission of moneys that are the proceeds thereof, the minister may include in an agreement with a collector, pursuant to subsection 9(10), a provision whereby the amount of moneys to be remitted by the collector during any specified period, as proceeds of the tax, will be estimated as provided in the agreement, and payment of sums on account of that amount will be made as set out in the agreement.

Computation of proceeds of tax

13(2)       At the end of each period specified in the agreement, the minister shall determine the amount of moneys received, or that in the opinion of the minister should have been received, as proceeds of the tax during that period by each collector who is a party to an agreement, and that amount shall be deemed to have been received by him.

13(3)       Repealed, S.M. 2006, c. 24, s. 98.

Payment of balance by collector

13(4)       Where it appears to the minister that the amount remitted by a collector, in respect of any period specified in the agreement, is less than the amount required to be remitted by the collector for that period, the minister shall notify the collector of the amount of the deficiency, and the collector shall within one week after receipt of the notice pay that amount to the minister.

13(5)       Repealed, S.M. 2007, c. 6, s. 98.

Refund re accidental loss

13(6)       Where a retail dealer, who is the holder of a valid licence issued under this Act, establishes to the satisfaction of the minister that tax has been remitted by him to the minister in respect of tobacco products which by reason of loss by fire, theft or other similar causes he is unable to recover from a purchaser, the minister may refund such tax to the retail dealer where

(a) the loss can be supported to the satisfaction of the minister; and

(b) the application for refund to the minister has been made within two years from the date the loss occurred.

13(7)       Repealed, S.M. 2007, c. 6, s. 98.

13(8) and (9)  Repealed, S.M 2005, c. 40, s. 123.

S.M. 2003, c. 4, s. 145; S.M. 2005, c. 40, s. 123; S.M. 2006, c. 24, s. 98; S.M. 2007, c. 6, s. 98.

14 to 17    Repealed.

S.M. 1988-89, c. 19, s. 61; S.M. 1991-92, c. 31, s. 36 and 37; S.M. 1993, c. 46, s. 89; S.M. 1995, c. 5, s. 11; S.M. 1998, c. 30, s. 75 and 76; S.M. 2002, c. 19, s. 73; S.M. 2003, c. 4, s. 146 and 147; S.M. 2004, c. 43, s. 118; S.M. 2005, c. 40, s. 123.

18(1)       Repealed, S.M. 2005, c. 40, s. 123.

Absorption of tax prohibited

18(2)       No retail dealer shall advertise, or hold out, or state to the public or to any consumer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the retail dealer, or that it will not be considered as an element in the price to the consumer or, if added, that it or any part thereof will be refunded.

S.M. 2005, c. 40, s. 123.

19          Repealed.

S.M. 2004, c. 43, s. 119.

20          Repealed.

S.M. 1989-90, c. 15, s. 79; S.M. 1994, c. 23, s. 45; S.M. 1995, c. 5, s. 12; S.M. 2000, c. 39, s. 99; S.M. 2005, c. 40, s. 123.

COLLECTION OF TAX AT CUSTOMS

Definition

20.1(1)     In this section and section 20.2, "purchaser" means an individual who

(a) resides or is ordinarily resident or carries on business in the province; and

(b) brings tobacco or causes tobacco to be brought into, or receives delivery of tobacco in, the province from outside Canada for his or her own use, or the use by others at his or her expense, or on behalf of, or as the agent for, a principal who desires to acquire the tobacco for use by him or her or other persons at his or her expense.

Agreement with Canada re collection of tax

20.1(2)     Subject to the approval of the Lieutenant Governor in Council, the minister may, on behalf of Her Majesty in right of Manitoba, enter into an agreement with the Government of Canada with respect to the administration and enforcement in the province of this Act in respect of tobacco that is brought or caused to be brought into the province by a purchaser, or delivered in the province to a purchaser, from outside Canada.

Deemed agreement

20.1(3)     An agreement entered into between the minister and the Government of Canada before the coming into force of this section with respect to the matters described in subsection (2) shall be deemed to have been made under this section.

S.M. 1992, c. 52, s. 80.

Definition of "price at retail"

20.2(1)     For the purposes of determining the amount of tax payable on a cigar under this section, the "price at retail" of a cigar is deemed to be the same as the value of that cigar determined for the purposes of calculating the tax payable on the cigar under Division III of Part IX of the Excise Tax Act (Canada) as amended from time to time.

Agent for enforcement authorized to collect tax

20.2(2)     An agent for enforcement is authorized to collect the tax from a purchaser.

Purchaser to pay tax

20.2(3)     Subject to subsection (4), a purchaser shall at the time he or she brings tobacco or causes tobacco to be brought into, or receives delivery of the tobacco in, the province

(a) make such report to the agent for enforcement as that agent for enforcement shall require with respect to the tobacco;

(b) produce or forward to the agent for enforcement a receipt or other evidence, if any, in respect of the acquisition of tobacco that is a cigar; and

(c) pay the tax payable in respect of the tobacco to the agent for enforcement.

Exception

20.2(4)     No tax is payable on tobacco under subsection (3) if no tax is payable in respect of that tobacco under Division III of Part IX of the Excise Tax Act (Canada) as that division is amended from time to time.

Failure to report or pay tax

20.2(5)     Where a purchaser fails or refuses

(a) to make the report required by clause (3)(a); or

(b) to pay the tax required by clause (3)(c);

the agent for enforcement may detain the tobacco until the tax payable in respect of the tobacco at the time of its detention and any expenses related to the detention are paid or until the expiration of 60 days after the date of the commencement of the detention, whichever first occurs.

Forfeiture and disposal

20.2(6)      If the tax payable in respect of the tobacco and the expenses relating to its detention are not paid within the time set out in subsection (5), the tobacco is forfeited to Her Majesty in right of Manitoba and may be disposed of as directed by the minister.

Refunds and collection of underpayments

20.2(7)     The Government of Canada is authorized

(a) to collect tax owing in respect of tobacco that was released from customs without payment of all or part of that tax; and

(b) to refund any amount that was collected by an agent for enforcement that is in excess of the amount of the tax in respect of tobacco;

in accordance with the terms and conditions of an agreement under subsection 20.1(2).

Immunity of agents for enforcement

20.2(8)     No action or proceeding may be brought against an agent for enforcement with respect to any act done in good faith by that agent for enforcement in the exercise or intended exercise of a power or the performance or intended performance of a duty under this section, or for the neglect or default in the exercise or performance in good faith of such power or duty.

S.M. 1992, c. 52, s. 80.

21 to 26.2  Repealed.

S.M. 1988-89, c. 19, s. 62 and 63; S.M. 1989-90, c. 15, s. 80; S.M. 1992, c. 52, s. 82; S.M. 1993, c. 46, s. 92; S.M. 1994, c. 23, s. 47; S.M. 1995, c. 5, s. 13 to 15; S.M. 1998, c. 30, s. 77 and 78; S.M. 2002, c. 19, s. 74; S.M. 2004, c. 43, s. 120; S.M. 2005, c. 40, s. 123.

27          Repealed.

S.M. 2005, c. 40, s. 123; S.M. 2007, c. 6, s. 99.

27.1        Repealed.

S.M. 1998, c. 30, s. 79; S.M. 2004, c. 43, s. 121; S.M. 2005, c. 40, s. 123.

27.2        Repealed.

S.M. 1998, c. 30, s. 79; S.M. 2005, c. 40, s. 123.

REGULATIONS

Regulations

28(1)       For the purpose of carrying out the provisions of this Act according to their intent, the Lieutenant Governor in Council may make such regulations and orders as are ancillary thereto and are not inconsistent therewith; and every regulation and order made under, and in accordance with the authority granted by, this section has the force of law; and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations and orders,

(a) defining cigarettes, cigars, and other tobacco, by type, quality, grade, size, weight, or any other physical property, for purposes of applying the tax under section 2;

(a.1) defining "account for" for the purpose of this Act or the regulations or any provision of this Act or the regulations;

(a.2) defining any term that under this Act is to be defined by regulation;

(b) prescribing the formula or method of calculation of "price at retail" for the purposes of section 2;

(b.1) respecting reporting and the payment of tax for the purpose of subsection 2(3), including, without limiting the generality of the foregoing,  where and to whom reports and payments are required to be made;

(b.2) imposing requirements for the purpose of clause 3.1(3)(a) or (b) or clause 3.3(2)(a) including, without limiting the generality of the foregoing, requiring that

(i) the anticipated amount of tax be paid or accounted for,

(ii) security be provided for tax that may be payable or may be required to be accounted for, or

(iii) the regulations under clause (o) with respect to the stamping of the packaging of cigarettes or fine cut tobacco for the tax purposes of Manitoba be complied with;

(b.3) prescribing a number of units of cigarettes or fine cut tobacco other than six for the purpose of clause 3.1(3)(c);

(b.4) prescribing classes of persons and imposing requirements, including the requirement to hold a permit, for the purpose of clause 3.1(3)(e);

(b.5) exempting persons or classes of persons generally or in respect of certain classes of cigarettes or fine cut tobacco for the purpose of clause 3.1(3)(f);

(b.6) prescribing classes of persons and imposing requirements, including the requirement to hold a permit, for the purpose of clause 3.3(2)(c);

(b.7) exempting persons or classes of persons generally or in respect of certain classes of cigarettes or fine cut tobacco for the purpose of clause 3.3(2)(d);

(b.8) exempting persons or classes of persons for the purpose of clause 3.4(2)(b);

(b.9) exempting persons or classes of persons for the purpose of clause 3.6(e);

(c) prescribing information to be set out in licences or permits;

(d) repealed, S.M. 2003, c. 4, s. 148;

(e) prescribing the fee, if any, to be paid for each licence;

(f) classifying licences and licence holders;

(g) prescribing terms, conditions or restrictions for licences and permits;

(h) respecting the collection of fees for licences and designating persons by whom such fees are to be collected;

(i) prescribing the date or dates on which licences shall expire;

(j) respecting the form of agreements into which the minister may enter under section 9;

(k) prescribing the manner in which, and the times when, collectors shall remit to the minister moneys received by them from retail dealers as proceeds of the tax;

(l) respecting reports or returns to be made or filed under this Act;

(l.1) and (1.2) repealed, S.M. 2005, c. 40, s. 124;

(m) repealed, S.M. 2003, c. 4, s. 148;

(n) repealed, S.M. 2004, c. 43, s. 122;

(o) respecting the marking or stamping of the packaging of cigarettes or fine cut tobacco for the tax purposes of Manitoba including, without limiting the generality of the foregoing,

(i) the marking or stamping of the packaging of cigarettes or fine cut tobacco that is already marked or stamped for the tax purposes of a jurisdiction other than Manitoba,

(ii) the stamping of the packaging of cigarettes or fine cut tobacco that is not purchased or intended to be consumed in Manitoba, and

(ii.1) defining the expression "Manitoba tear tape",

and, in relation to stamping of the packaging of cigarettes or fine cut tobacco described in subclause (ii), imposing requirements as to

(iii) reporting,

(iv) the provision of security for the ultimate removal of the cigarettes or fine cut tobacco from Manitoba, and

(v)  other similar matters;

(p) repealed, S.M. 1995, c. 5, s. 16;

(q) respecting reporting, and the accounting for, collecting or remitting of tax for the purpose of subsection 9(2) including, without limiting the generality of the foregoing, where and to whom reports or any accounting are required to be made or tax remitted;

(q.1) exempting dealers or classes of dealers from subsection 9(2);

(q.2) repealed, S.M. 2005, c. 40, s. 124;

(q.3) repealed, S.M. 2004, c. 43, s. 122;

(r) and (s) repealed, S.M. 2005, c. 40, s. 124;

(t) prescribing the terms and conditions under which a refund may be made by the minister, the time within which an application for a refund may be made, the manner of making an application for the refund and the evidence to be furnished in support of the application for the refund;

(u) respecting any other matter the Lieutenant Governor in Council considers necessary or advisable to carry out the intent and purpose of an agreement made under subsection 20.1(2) or to give effect to the intent and purpose of section 20.2;

(v) establishing one or more rates of tax for the purpose of subsection 2(1);

(w) establishing a system for the sale of tobacco to purchasers in circumstances where they are not required by law to pay tax, which may include limits, or enable the director to set limits, that may be different for different dealers, on refunds to retail dealers of amounts paid by them on account of tax on sales of tobacco in those circumstances.

Limitation on rate changes by regulation

28(2)       A rate established by regulation under clause (1)(v) ceases to have effect on the day that royal assent is given to an Act to implement the budget for the next fiscal year.  If the Act does not implement that rate or a higher rate, the affected rate cannot be increased by regulation during that fiscal year.

Effective date

28(3)       A regulation under subsection (1), other than a regulation under clause (1)(v), may be made retroactive to the extent the Lieutenant Governor in Council considers it necessary in order to implement or give effect to

(a) a tax or administrative measure included in a budget presented to the Legislative Assembly; or

(b) an amendment to this Act.

S.M. 1991-92, c. 31, s. 38; S.M. 1992, c. 52, s. 83; S.M. 1994, c. 23, s. 48; S.M. 1995, c. 5, s. 16; S.M. 2003, c. 4, s. 148; S.M. 2004, c. 43, s. 122; S.M. 2005, c. 40, s. 124; S.M. 2006, c. 24, s. 99; S.M. 2008, c. 3, s. 84.