Bill 83 As Amended by Standing Committee
An
Act to implement
Bill 83 2018
An
Act to implement
Budget measures
CONTENTS
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Sections |
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Assessment Act Drug Interchangeability and Dispensing Fee Act Financial Administration Act Loan and Trust Corporations Act Municipal Act, 2001 Ontario Drug Benefit Act Ontario Loan Act, 2004 Retail Sales Tax Act Taxpayer Protection Act, 1999 Tenant Protection Act, 1997 Tobacco Tax Act Commencement and Short Title Ontario Loan Act, 2004 |
1-6 7 8-9 10 11-13 14 15 16 17 18 19-34 35-36 Schedule A |
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Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
Assessment Act
1. (1) Subsection 2 (2) of the Assessment Act, as amended by the Statutes of Ontario, 1994, chapter 36, section 1, 1997, chapter 5, section 2, 1997, chapter 29, section 2, 1997, chapter 43, Schedule G, section 18, 2000, chapter 25, section 1, 2001, chapter 23, section 1, 2002, chapter 17, Schedule F, Table and 2002, chapter 22, section 1, is amended by adding the following clauses:
(g) prescribing a taxation year for the purposes of section 19.1;
(h) prescribing a day as of which land is to be valued for a taxation year for the purposes of subsection 19.2 (5);
(i) prescribing a day for the purposes of subsection 31 (1.1).
(2) Section 2 of the Act, as amended by the Statutes of Ontario, 1994, chapter 36, section 1, 1997, chapter 5, section 2, 1997, chapter 29, section 2, 1997, chapter 43, Schedule G, section 18, 1998, chapter 3, section 1, 1998, chapter 33, section 1, 2000, chapter 25, section 1, 2001, chapter 23, section 1, 2002, chapter 17, Schedule F, Table and 2002, chapter 22, section 1, is amended by adding the following subsection:
Restriction, prescribed taxation year under s. 19.1
(7) If the Minister prescribes a taxation year for the purposes of section 19.1, the regulation in which the taxation year is prescribed is void if it is filed under the Regulations Act less than 18 months before the first day of that taxation year.
2. Section 19.1 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 13, is repealed and the following substituted:
Assessment, single years and averages
19.1 (1) Subject to subsections (2) and (3), land shall be assessed for a taxation year at the current value of the land for the taxation year.
Same, for prescribed taxation year
(2) If the Minister prescribes a taxation year for the purposes of this section, land shall be assessed for the prescribed taxation year at the average of the current value of the land for the prescribed taxation year and the current value of the land for the preceding taxation year.
Same, after prescribed taxation year
(3) If the Minister prescribes a taxation year for the purposes of this section, land shall be assessed for any taxation year after the prescribed taxation year at the average of the current value of the land for the taxation year and the current value of the land for each of the two preceding taxation years.
3. (1) Subsection 19.2 (1) of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 13, is repealed and the following substituted:
Valuation days
(1) Subject to subsections (2) and (5), the day as of which land is valued for a taxation year is determined as follows:
1. For the 1998, 1999 and 2000 taxation years, land is valued as of June 30, 1996.
2. For the 2001 and 2002 taxation years, land is valued as of June 30, 1999.
3. For the 2003 taxation year, land is valued as of June 30, 2001.
4. For the 2004 and 2005 taxation years, land is valued as of June 30, 2003.
5. For the 2006 and subsequent taxation years, land is valued as of January 1 of the year preceding the taxation year.
(2) Section 19.2 of the Act, as enacted by the Statutes of Ontario, 1997, chapter 5, section 13, is amended by adding the following subsection:
Exception
(5) Subsection (1) does not apply in respect of the valuation of land for a taxation year after 2004 if the Minister prescribes a different day as of which land is valued for that year.
4. (1) Subsection 31 (1) of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 20 and 1997, chapter 43, Schedule G, section 18, is amended by striking out the portion before clause (a) and substituting the following:
Notice of assessment
(1) Where, in respect of any parcel of land, there has been a change in any particular described in subsection 14 (1) that is not reflected in the last assessment roll as returned, the assessment corporation or an assessor shall deliver in the manner provided in this section to every person described in paragraph 2 of subsection 14 (1) who is affected by the change a notice in a form approved by the Minister showing,
. . . . .
(2) Section 31 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 20, 1997, chapter 29, section 16, 1997, chapter 43, Schedule G, section 18 and 1998, chapter 3, section 6, is amended by adding the following subsection:
Time for delivery of notice
(1.1) The assessment corporation or an assessor shall deliver a notice required under subsection (1) no later than,
(a) the 14th day before the day the assessment roll is completed, if the Minister does not prescribe an earlier day; or
(b) the day prescribed by the Minister, if the Minister prescribes an earlier day.
5. Subsection 36 (1) of the Act is repealed and the following substituted:
Time for yearly assessment and return of roll
(1) Except as provided in section 33 or 34, in every municipality the assessment shall be made annually commencing in the year 1974 and at any time between January 1 and the second Tuesday following December 1, and the assessment roll of the municipality shall be returned to the clerk not later than the second Tuesday following December 1 in the year in which the assessment is made.
6. Section 40 of the Act, as amended by the Statutes of Ontario, 1997, chapter 5, section 26, 1997, chapter 23, section 1, 1997, chapter 29, section 21, 1997, chapter 43, Schedule G, section 18, 1998, chapter 33, section 8 and 1999, chapter 9, section 14, is amended by adding the following subsection:
Deemed complaints, 2004, etc.
(15.1) If a complaint relates to the 2004 taxation year, the complainant shall be deemed to have made the same complaint,
(a) in relation to assessments under sections 33 and 34 for the 2004 taxation year; and
(b) in relation to the assessment, including assessments under sections 33 and 34, for the 2005 taxation year if the complaint is not finally disposed of before the last day for complaining with respect to the 2005 taxation year.
Drug Interchangeability
and Dispensing Fee Act
7. Section 14 of the Drug Interchangeability and Dispensing Fee Act, as amended by the Statutes of Ontario, 1996, chapter 1, Schedule G, sections 25 and 26, is repealed and the following substituted:
Regulations
14. (1) The Lieutenant Governor in Council may make regulations,
(a) prescribing conditions to be met by products or by manufacturers of products in order to be designated as interchangeable with other products;
(b) prescribing conditions to be met for a product to continue to be designated as interchangeable;
(c) prescribing circumstances in which persons may charge more than their usual and customary dispensing fees.
Same, Minister
(2) The Minister may make regulations designating a product as interchangeable with one or more other products where the Minister considers it advisable in the public interest to do so, but a product shall not be designated as interchangeable with another product if,
(a) it does not contain a drug or drugs in the same amounts of the same active ingredients in the same dosage form as the other product; or
(b) the product or its manufacturer has not met the conditions described in regulations made under clause (1) (a).
Removing
designation
(3) The Minister may remove the
designation of a product as an interchangeable product even if none of the
conditions prescribed under clause (1) (b) are breached, if the Minister
considers it advisable in the public interest to do so.
Removal of designation
(3) Only the Lieutenant Governor in Council may make regulations removing the designation made by the Minister under subsection (2) of an interchangeable product.
Same
(3.1) The Lieutenant Governor in Council may, under subsection (3), remove the designation of an interchangeable product even if none of the conditions prescribed under clause (1) (b) are breached, if the Lieutenant Governor in Council considers it advisable in the public interest to do so.
Effect of breach of continuing conditions
(4) Despite a breach of a condition prescribed under clause (1) (b), a product does not cease to be designated as an interchangeable product until its designation is removed.
Regulations by college
(5) Subject to the approval of the Lieutenant Governor in Council and with prior review by the Minister, the Council of the Ontario College of Pharmacists may make regulations,
(a) prescribing the manner in which persons shall be informed of the right to request an interchangeable product;
(b) prescribing the information to be included in a notice and the manner of posting a notice;
(c) authorizing dispensing a drug in less than the entire quantity prescribed and specifying the conditions under which that authority is to apply;
(d) designating specific drugs that are to be exempt from the application of subsection 9 (1);
(e) prescribing the information concerning cost to be provided on sale and how it is to be provided;
(f) requiring operators of pharmacies to retain specified records respecting their purchase of drugs for the purposes of this Act and prescribing the period of time those records shall be retained.
Same
(6) Where the Minister requests in writing that the Council of the Ontario College of Pharmacists make, amend or revoke a regulation under subsection (5) and the Council has failed to do so within 60 days after the request, the Lieutenant Governor in Council may make the regulation, amendment or revocation specified in the request.
General or particular
(7) A regulation made under this section may be general or particular in its application.
Financial Administration Act
8. Section 11.6 of the Financial Administration Act, as enacted by the Statutes of Ontario, 2002, chapter 8, Schedule B, section 2, is amended by adding the following subsection:
Exception, certain accrued liabilities
(1.1) Despite clause (1) (b), the estimates shall not include expenditures to be made on or after April 1, 2003 in satisfaction of liabilities incurred by the Crown before that date.
9. The Act is amended by adding the following section:
Payment of certain accrued liabilities
11.7 (1) The Minister of Finance is authorized to make payments out of the Consolidated Revenue Fund during a fiscal year that begins on or after April 1, 2003 in satisfaction of liabilities incurred by the Crown before April 1, 2003, if the payments are payable during the fiscal year and are not otherwise authorized by an Act of the Legislature.
Restriction
(2) The aggregate amount of payments authorized by subsection (1) shall not exceed the aggregate amount of the following liabilities as at March 31, 2003 as stated in the Public Accounts of Ontario for the fiscal year ending March 31, 2003, the payment of which is not otherwise provided for by any other Act of the Legislature:
1. Accounts payable and accrued liabilities.
2. Retirement benefits.
3. Other liabilities.
Transition
(3) If a payment in satisfaction of a liability described in subsection (1) was charged to an appropriation on or after April 1, 2003 and before the day on which the Budget Measures Act, 2004 received Royal Assent, the payment shall be deemed, as of the day on which it was made, not to have been charged to that appropriation but to have been charged instead to the appropriation provided by subsection (1).
Loan and Trust Corporations Act
10. Section 38 of the Loan and Trust Corporations Act, as re-enacted by the Statutes of Ontario, 2001, chapter 8, section 75, is repealed and the following substituted:
Termination of right to carry on business
38. (1) A corporation is not permitted to carry on the business of a loan corporation or a trust corporation after July 1, 2004 unless,
(a) it is incorporated under the Trust and Loan Companies Act (Canada); or
(b) it has the Superintendent’s approval under subsection (6) to do so.
Revocation of registration
(2) The registration of every corporation, other than a corporation described in clause (1) (a) or (b), is revoked on July 2, 2004.
Same
(3) The registration of a corporation described in clause (1) (b) is revoked on the earlier of July 1, 2005 or the day on which the Superintendent’s approval under subsection (6) ceases to have effect.
Application for approval
(4) A registered corporation may apply to the Superintendent for approval to continue carrying on the business of a loan corporation or a trust corporation after July 1, 2004.
Same
(5) The application must be submitted in a manner approved by the Superintendent and must be accompanied by such information and documents as the Superintendent may require.
Approval
(6) Subject to subsections (7) and (8), the Superintendent may, in his or her absolute discretion, approve the application and may require the applicant to give an undertaking as a condition of the approval.
Restriction
(7) The Superintendent shall refuse to approve the application unless,
(a) the corporation demonstrates to the Superintendent’s satisfaction that it is not reasonably practicable for the corporation to comply with clause (1) (a) by July 1, 2004; and
(b) the Superintendent is satisfied that the approval is not contrary to the public interest.
Same
(8) The authority of the Superintendent to approve an application expires on July 2, 2004.
Decision final
(9) Any decision of the Superintendent respecting an application or an approval is final and is not subject to review.
Immunity
(10) No action or proceeding may be brought against the Crown in right of Ontario, the Superintendent or anyone acting under the authority of the Superintendent in relation to the operation of this section.
Municipal Act, 2001
11. The Municipal Act, 2001 is amended by adding the following section:
Municipal
option: application of certain provisions of the Act
329.1 (1) A municipality, other than a lower-tier municipality, may pass a by-law to have one or more of the following paragraphs apply in the calculation of the amount of taxes for municipal and school purposes payable in respect of property in the commercial classes, industrial classes or multi-residential property class for 2005 or a subsequent taxation year:
1. In determining the amount of taxes for municipal and school purposes for the year under subsection 329 (1) and the amount of the tenant’s cap under subsection 332 (5),
i. 10 per cent or a percentage specified in the by-law for the purposes of this paragraph that exceeds 5 per cent, whichever is lower, shall be used, instead of 5 per cent, in determining the amount to be added under paragraph 2 of subsection 329 (1), and
ii. the same percentage used under subparagraph i, instead of 5 per cent, shall be used in increasing under paragraph 2 of subsection 332 (5) the amount calculated under paragraph 1 of that subsection.
2. In determining the amount of taxes for municipal and school purposes for the year under subsection 329 (1) and the amount of the tenant’s cap under subsection 332 (5),
i. the amount to be added under paragraph 2 of subsection 329 (1) shall be the greatest of,
A. the amount of the taxes for municipal and school purposes that would have been levied in respect of the property for the previous year but for the application of this Part, subject to such adjustments as may be prescribed, multiplied by 5 per cent or a percentage specified in the by-law for the purposes of this subparagraph that is less than 5 per cent,
B. the amount that would be added under paragraph 2 of subsection 329 (1) for the year using the percentage used under subparagraph 1 i, if the municipality passes a by-law to have paragraph 1 apply for the year to property in the class in which the property is included, and
C. 5 per cent of the amount determined under paragraph 1 of subsection 329 (1) for the property for the year, and
ii. the amount determined under paragraph 1 of subsection 332 (5) shall be increased under paragraph 2 of that subsection by the amount determined under the following, instead of the amount specified in paragraph 2 of that subsection:
A. the amount on account of taxes levied for municipal and school purposes that the tenant would have been required to pay under the tenant’s lease in the previous year but for the application of section 332 multiplied by the percentage used in determining the amount under sub-subparagraph i A, if the amount determined under sub-subparagraph i A is the greatest of the amounts determined under subparagraph i,
B. the amount calculated under paragraph 1 of subsection 332 (5) multiplied by the percentage used in determining the amount under sub-subparagraph i B, if the amount determined under sub-subparagraph i B is the greatest of the amounts determined under subparagraph i, or
C. the amount calculated under paragraph 1 of subsection 332 (5) multiplied by the percentage used under sub-subparagraph i C, if the amount determined under sub-subparagraph i C is the greatest of the amounts determined under subparagraph i.
3. The amount of the taxes for municipal and school purposes for a property for a taxation year shall be the amount of the uncapped taxes for the property for the year if the amount of the uncapped taxes exceeds the amount of the taxes for municipal and school purposes for the property for the taxation year as determined under section 329 by the lesser of,
i. $250, and
ii. the amount, if any, specified in the by-law for the purposes of this paragraph.
4. The amount of the taxes for municipal and school purposes for a property for a taxation year shall be the amount of the uncapped taxes for the property for the year if the amount of the taxes for municipal and school purposes for the property for the taxation year as determined under section 330 exceeds the amount of the uncapped taxes by the lesser of,
i. $250, and
ii. the amount, if any, specified in the by-law for the purposes of this paragraph.
5. If, for all or part of 2005, a property becomes an eligible property within the meaning of subsection 331 (20), the taxes for municipal and school purposes for the year or portion of the year shall be the greater of,
i. the amount of the taxes determined for the property for 2005 under subsection 331 (2), and
ii. the amount of the uncapped taxes for the property for 2005 multiplied by 70 per cent or the percentage specified in the by-law for the purposes of this subparagraph, whichever is lower.
6. If, for all or part of 2006, a property becomes an eligible property within the meaning of subsection 331 (20), the taxes for municipal and school purposes for the year or portion of the year shall be the greater of,
i. the amount of the taxes determined for the property for 2006 under subsection 331 (2), and
ii. the amount of the uncapped taxes for the property for 2006 multiplied by 80 per cent or the percentage specified in the by-law for the purposes of this subparagraph, whichever is lower.
7. If, for all or part of 2007, a property becomes an eligible property within the meaning of subsection 331 (20), the taxes for municipal and school purposes for the year or portion of the year shall be the greater of,
i. the amount of the taxes determined for the property for 2007 under subsection 331 (2), and
ii. the amount of the uncapped taxes for the property for 2007 multiplied by 90 per cent or the percentage specified in the by-law for the purposes of this subparagraph, whichever is lower.
8. If, for all or part of 2008 or a subsequent taxation year, a property becomes an eligible property within the meaning of subsection 331 (20), the taxes for municipal and school purposes for the year or portion of the year shall be the greater of,
i. the amount of the taxes determined for the property for the taxation year under subsection 331 (2), and
ii. the amount of the uncapped taxes for the property for the taxation year multiplied by 100 per cent or the percentage specified in the by-law for the purposes of this subparagraph, whichever is lower.
Time limit for passing by-law
(2) A by-law under subsection (1) must be passed on or before April 30 of the year to which the by-law applies unless the Minister of Finance prescribes a later day for that year.
Application of ss. 329 and 332 as modified
(3) If a municipality passes a by-law under subsection (1),
(a) a reference to section 329 in any section of this Part other than section 329 and this section shall be deemed to be a reference to section 329 as modified by the application of the paragraph or paragraphs specified in the by-law, if applicable; and
(b) the reference to subsection 332 (5) in subsection 367 (13) shall be deemed to be a reference to subsection 332 (5) as modified by the application of the paragraph or paragraphs specified in the by-law, if applicable.
Regulations
(4) The Minister of Finance may make regulations,
(a) prescribing a day later than April 30 for the purposes of subsection (2);
(b) prescribing for the purposes of sub-subparagraph 2 i A of subsection (1) adjustments to be made in determining the amount of taxes for municipal and school purposes that would have been levied in the previous year on a property but for the application of this Part and prescribing the circumstances in which those adjustments are to be made.
Retroactivity
(5) A regulation referred to in clause (4) (a) in respect of a taxation year may be made after April 30 in that year and after any day previously prescribed under that clause for that year.
Definition
(6) In this section,
“uncapped taxes” means, in respect of a taxation year, the taxes for municipal and school purposes that would be levied for the taxation year but for the application of this Part.
12. Subsection 354 (2) of the Act, as amended by the Statutes of Ontario, 2002, chapter 17, Schedule A, section 61, is amended by striking out “or” at the end of clause (a), by adding “or” at the end of clause (b) and by adding the following clause:
(c) the taxes are no longer payable because the tax liability arose as result of the assessment of land under subsection 33 (1) of the Assessment Act for a period during which a regulation made under subsection 33 (1.1) of that Act provides that subsection 33 (1) of that Act does not apply to the land.
13. The Act is amended by adding the following section:
Refund on cancelled assessment
354.1 If a regulation is made under subsection 33 (1.1) of the Assessment Act providing that subsection 33 (1) of that Act does not apply with respect to certain land, the municipality shall repay to the owner of the land any overpayment that arises because the land was assessed under that subsection for a period during which the regulation provides that the subsection does not apply to the land.
Ontario Drug Benefit Act
14. (1) Section 18 of the Ontario Drug Benefit Act, as amended by the Statutes of Ontario, 1996, chapter 1, Schedule G, section 15, is amended by adding the following subsections:
Designation by Minister
(1.1) Despite clause (1) (c), but subject to subsection (1.2), where a product has been designated as interchangeable under the Drug Interchangeability and Dispensing Fee Act, the Minister may make regulations designating the product as a listed drug product,
(a) where the Minister considers it to be in the public interest to do so; and
(b) where the product has a cost savings to the Government of Ontario or is cost neutral.
Exception
(1.2) A product shall not be designated in regulations made under subsection (1.1) if it or its manufacturer has not met the conditions listed in clause (1) (b).
Removal of designation
(1.3) Only the Lieutenant Governor in Council may make regulations removing the designation made by the Minister under subsection (1.1) of a listed drug product.
(2) Sections 19 and 20 of the Act, as enacted by the Statutes of Ontario, 1996, chapter 1, Schedule G, section 16, are repealed and the following substituted:
Decisions about listing, delisting
19. In
deciding whether or not to designate a drug product as a listed drug product
under clause 18 (1) (c) or subsection 18 (1.1) or to remove such a
designation, the Lieutenant Governor in Council or the Minister may consider
any matter or to remove such a designation under subsection 18
(1.3), the Lieutenant Governor in Council or the Minister, as the case may be,
may consider any matter the Lieutenant Governor in Council or the
Minister considers advisable in the public interest, including, without
limiting the generality of the foregoing, the drug benefit price of the drug
product or other drug products or the price charged to operators of pharmacies
for the drug product or other drug products.
Delisting
20. (1) The
Lieutenant Governor in Council or the Minister may remove the designation of a
drug product as a listed drug product even if none of the conditions prescribed
under clause 18 (1) (b.1) are breached, if the Lieutenant Governor in Council
or the Minister considers it advisable in the public interest to do so.
Delisting
20. (1) The Lieutenant Governor in Council may, under section 18, remove the designation of a listed drug product even if none of the conditions prescribed under clause 18 (1) (b.1) are breached, if the Lieutenant Governor in Council considers it advisable in the public interest to do so.
Effect of breach of continuing conditions
(2) Despite a breach of a condition prescribed under clause 18 (1) (b.1), a drug product does not cease to be designated as a listed drug product until its designation as a listed drug product is removed.
Ontario Loan Act, 2004
15. The Ontario Loan Act, 2004, as set out in Schedule A, is enacted.
Retail Sales Tax Act
16. (1) Clause 9.1 (2) (a) of the Retail Sales Tax Act, as re-enacted by the Statutes of Ontario, 2003, chapter 7, section 17, is amended by striking out “March 31, 2004” and substituting “July 31, 2004”.
(2) Clause 9.1 (2) (c) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 7, section 17, is amended by striking out “May 15, 2004” and substituting “September 15, 2004”.
Taxpayer Protection Act, 1999
17. Section 2 of the Taxpayer Protection Act, 1999, as amended by the Statutes of Ontario, 2002, chapter 8, Schedule L, section 1, is amended by adding the following subsection:
Exception, 2004
(7) Despite subsection (1), the following provisions may be included in a bill that receives First Reading in 2004:
1. A provision that amends the Income Tax Act to establish a new tax called the Ontario Health Premium in English and contribution-santé de l’Ontario in French.
2. A provision that amends section 4.1 of the Income Tax Act to provide that the tax payable by a qualifying environmental trust for a taxation year shall be calculated at the same rate as the specified basic rate of tax payable by a corporation under subsection 38 (2) of the Corporations Tax Act.
Tenant Protection Act, 1997
18. Paragraphs 2 and 3 of subsection 129 (2) of the Tenant Protection Act, 1997 are repealed and the following substituted:
2. The guideline is,
i. for any year after 2004, 55 per cent of the percentage increase in the rent control index, rounded to the nearest 1/10th of 1 per cent, and
ii. for 2004, 2.9 per cent, as published in The Ontario Gazette dated August 30, 2003.
Tobacco Tax Act
19. Section 1 of the Tobacco Tax Act, as amended by the Statutes of Ontario, 1991, chapter 48, section 1, 1992, chapter 28, section 1, 1994, chapter 18, section 8, 1998, chapter 34, section 105, 2000, chapter 42, section 97 and 2001, chapter 23 section 219, is amended by adding the following definition:
“unmarked cigarettes” means cigarettes that are not marked cigarettes; (“cigarettes non marquées”)
20. (1) Subsection 2 (1) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 7, section 18, is repealed and the following substituted:
Tax on tobacco other than cigars
(1) Every consumer shall pay to Her Majesty in right of Ontario a tax at the rate of 11.1 cents on every cigarette and on every gram or part gram of tobacco, other than cigarettes and cigars, purchased by the consumer.
(2) Subsections 2 (1.1) and (1.1.1) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 7, section 18, are repealed.
(3) Subsection 2 (1.2) of the Act, as enacted by the Statutes of Ontario, 1996, chapter 18, section 19, is repealed.
(4) Subsections 2 (1.3) and (1.4) of the Act, as re-enacted by the Statutes of Ontario, 2003, chapter 7, section 18, are repealed.
(5) Section 2 of the Act, as amended by the Statutes of Ontario, 1996, chapter 18, section 19, 2000, chapter 42, section 98, 2002, chapter 8, Schedule M, section 1 and 2003 chapter 7, section 18, is amended by adding the following subsections:
Regulations re tax rates
(2.2) The Minister may make regulations prescribing rates of tax that are different from those specified in this section.
Same
(2.3) A regulation made under subsection (2.2) may provide for different rates of tax on different kinds of tobacco as may be prescribed by the Minister.
(6) Subsection 2 (7) of the Act is repealed and the following substituted:
Offence
(7) Every person who knowingly fails to pay tax as imposed by this section at the time the person is required to do so is guilty of an offence and on conviction is liable to a fine of not less than $500 and not more than three times the amount of the tax payable by that person.
Penalty
(7.1) Every person who knowingly fails to pay tax as imposed by this section at the time the person is required to do so shall pay a penalty, when assessed therefor, equal to three times the amount of the tax payable by that person.
(7) Subsection 2 (8) of the Act is amended by striking out “$200” and substituting “$1,000”.
21. Subsection 3 (7) of the Act is amended by striking out the portion after clause (b) and substituting the following:
is guilty of an offence and on conviction is liable to a fine of not less than $1,000 and not more than $10,000, plus, in respect of a conviction under clause (a), to a fine of not less than three times the amount of tax that would be payable under section 2 had the tobacco the person sold during the period when the person did not hold a wholesaler’s permit been sold to a consumer liable to pay tax under this Act.
22. Subsection 4 (8) of the Act is amended by striking out “$500” and substituting “$1,000”.
23. (1) Subsection 5 (11) of the Act is amended by striking out “sold to a consumer in Ontario” at the end and substituting “sold to a consumer liable to pay tax under this Act”.
(2) Subsection 5 (11.1) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 101, is repealed and the following substituted:
Penalty on unregistered importer or exporter
(11.1) Every person who operates as an importer or exporter in Ontario without holding a subsisting registration certificate under this section shall pay a penalty, when assessed therefor, that is equal to the tax that would be payable under section 2 had the tobacco imported into or exported out of Ontario by the person during the period when the person did not hold the subsisting certificate been sold to a consumer liable to pay tax under this Act.
(3) Subsection 5 (13) of the Act is repealed and the following substituted:
Offence
(13) Every person who operates as an importer or exporter in Ontario without holding a registration certificate under this section or who, being the holder of such a certificate, contravenes any condition or restriction contained in the certificate or any other requirement specified in this section is guilty of an offence and on conviction is liable,
(a) to a fine of not less than $1,000 and not more than $10,000; and
(b) in respect of a conviction for operating as an importer or exporter without holding a registration certificate, to an additional fine of not less than three times the amount of tax that would be payable under section 2, had the tobacco imported into or exported out of Ontario by the person during the period when the person did not hold a registration certificate been sold to a consumer liable to pay tax under this Act.
(4) Subsection 5 (14) of the Act is amended by striking out “a fine of not less than the tax payable by a consumer under section 2 on the tobacco so purchased by the person” at the end and substituting “a fine of not less than $500 and not more than $10,000 plus three times the amount of tax that would be payable under section 2 had the tobacco purchased or received from the importer during the period when the importer did not hold a certificate been sold to a consumer liable to pay tax under this Act”.
24. Subsection 7 (4) of the Act is repealed and the following substituted:
Offence
(4) Every person who operates as a manufacturer in Ontario without holding a registration certificate required by this section or who, being the holder of such a certificate, contravenes any condition or restriction contained in the certificate or any other requirement specified in this section is guilty of an offence and on conviction is liable,
(a) to a fine of not less than $1,000 and not more than $10,000; and
(b) in respect of a conviction for operating as a manufacturer without holding a registration certificate, to an additional fine of not less than three times the amount of tax that would be payable under section 2 had the tobacco manufactured by the person during the period when the person did not hold a certificate been sold to a consumer liable to pay tax under this Act.
25. Subsection 8 (10) of the Act is repealed and the following substituted:
Offence
(10) Every person who marks or stamps cigarettes, including a carton or case that contains packages of cigarettes, without holding a permit issued by the Minister under the regulations or who, being the holder of such a permit, contravenes any condition or restriction contained in the permit or any other requirement specified in this section is guilty of an offence and on conviction is liable,
(a) to a fine of not less than $1,000 and not more than $10,000; and
(b) in respect of a conviction for marking or stamping cigarettes without holding a permit, to a fine of not less than three times the amount of tax that would be payable under section 2, had the cigarettes that were marked or stamped by the person during the period when the person did not hold a permit been sold to a consumer liable to pay tax under this Act.
26. (1) Subsection 11 (1) of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 102, is amended by adding the following clause:
(a.1) the person has not collected and remitted all of the tax that the person is required to collect and remit under this Act;
(2) Clause 11 (1) (d) of the Act is amended by striking out “as required by subsection 12 (2)” and substituting “as demanded by the Minister under subsection 12 (2)”.
(3) Subsection 11 (2) of the Act is repealed and the following substituted:
Suspension or cancellation of designation, etc.
(2) The Minister may suspend or cancel a person’s designation under subsection 4 (1) or (1.3) or a registration certificate or permit issued to a person under this Act or the regulations if,
(a) the person has not paid all of the tax that the person is liable to pay under this Act;
(b) the person has not collected and remitted all of the tax that the person is required to collect and remit under this Act;
(c) the person, or any officer, director, shareholder, employee or partner of the person,
(i) has failed to pay a fine levied on conviction under this Act, or
(ii) has been convicted of an offence of fraud or tax evasion within the previous five years;
(d) the person contravenes or permits the contravention of this Act or the regulations or of any condition or restriction contained in the designation, registration certificate or permit; or
(e) the person fails to provide security as demanded by the Minister under subsection 12 (2).
(4) Subsection 11 (4) of the Act is amended by striking out “remit the tax payable” and substituting “remit the tax collectable and payable”.
27. Subsection 12 (2) of the Act, as amended by the Statutes of Ontario, 1998, chapter 34, section 106, 2000, chapter 42, section 103 and 2001, chapter 23, section 225, is amended by striking out “The Minister may demand” at the beginning and substituting “The Minister shall demand”.
28. (1) Subsection 17 (3) of the Act, as re-enacted by the Statutes of Ontario, 2002, chapter 22, section 194, is amended by striking out “$200” and substituting “$500”.
(2) Subsection 17 (5) of the Act is amended by striking out “$200” and substituting “$500”.
29. Subsection 18 (6) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8, is amended by striking out “an amount equal to twice the amount of the tax” and substituting “an amount equal to three times the amount of the tax”.
30. Subsection 24 (3) of the Act is amended by striking out “a permit issued under subsection 3 (3)” and substituting “a permit issued under subsection 3 (1)”.
31. (1) Subsection 29 (1) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8, is repealed and the following substituted:
Prohibition re unmarked cigarettes
(1) No person shall, unless permitted under this Act or the regulations to do so,
(a) have in the person’s possession more than 200 unmarked cigarettes; or
(b) have in the person’s possession, purchase or receive any number of unmarked cigarettes for the purposes of sale.
(2) Subsection 29 (2) of the Act, as re-enacted by the Statutes of Ontario, 1992, chapter 28, section 1, is repealed and the following substituted:
Offence
(2) Every person who contravenes subsection (1) is guilty of an offence and on conviction is liable to,
(a) a fine of not less $500 and not more than $10,000; and
(b) an additional fine of not less than three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act.
(3) Subsection 29 (2.0.1) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 8, is repealed and the following substituted:
Imprisonment
(2.0.1) Where a person convicted of an offence under subsection (2) was found to be in possession of 10,000 or more unmarked cigarettes, the court may impose a term of imprisonment of not more than two years in addition to any fines levied under subsection (2).
(4) Subsection 29 (2.1) of the Act, as enacted by the Statutes of Ontario, 1992, chapter 28, section 1, is repealed and the following substituted:
Forfeiture
(2.1) The court shall order all unmarked cigarettes in respect of which a person has been convicted under subsection (2) to be forfeited to Her Majesty to be disposed of in any manner determined by the Minister.
(5) Subsection 29 (3) of the Act, as amended by the Statutes of Ontario, 1994, chapter 18, section 8, is amended by striking out “$39 per carton” at the end and substituting “three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act”.
(6) Subsection 29 (4) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 108, is repealed and the following substituted:
Penalty
(4) Every person who, except as permitted under this Act or the regulations, has in the person’s possession more than 200 unmarked cigarettes or has in the person’s possession or has purchased or received any number of unmarked cigarettes for purposes of sale shall pay a penalty, when assessed therefor, equal to three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act.
(7) Subsection 29 (5) of the Act, as enacted by the Statutes of Ontario, 1994, chapter 18, section 8, is repealed and the following substituted:
Additional penalty
(5) Where the quantity of unmarked cigarettes is 10,000 or more, a person liable to a penalty under subsection (3) or (4) may be assessed an additional penalty equal to five times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act.
(8) Subsection 29 (6) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 108, is repealed.
32. (1) Subsection 31 (1) of the Act, as amended by the Statutes of Ontario, 2000, chapter 42, section 112, is repealed and the following substituted:
Penalty for selling tobacco without a wholesaler’s permit
(1) Every person who sells tobacco in Ontario for resale without holding a subsisting wholesaler’s permit under section 3 shall, when assessed therefor, pay a penalty of not less than $1,000 and not more than $10,000 and an additional penalty calculated as follows:
1. For cigarettes sold by the person, an amount equal to three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act.
2. For every gram of tobacco other than cigarettes or cigars sold by the person, an amount equal to three times the amount of tax that would be payable under section 2 had the tobacco been sold to a consumer liable to pay tax under this Act.
3. For every cigar sold by the person, 170 per cent of the price at which the cigar was sold.
(2) Subsection 31 (2) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 109 and amended by 2000, chapter 42, section 112, is repealed and the following substituted:
Offence
(2) Every person who sells tobacco in Ontario for resale without holding a wholesaler’s permit issued under this Act is guilty of an offence and on conviction is liable to the following penalty:
1. If the tobacco is unmarked cigarettes,
i. a fine of not less than the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act and not more than three times that amount, or
ii. imprisonment for a term of not more than two years.
2. If the tobacco is marked cigarettes,
i. on a first conviction, a fine of $4 for each 200 cigarettes, and
ii. on each subsequent conviction, a fine of $4 for each 200 cigarettes, imprisonment for a term of not more than six months or both.
3. If the tobacco is tobacco other than unmarked or marked cigarettes,
i. on a first conviction, a fine of not less than $1,000 and not more than $50,000, and
ii. on each subsequent conviction, a fine of not less than $1,000 and not more than $50,000, imprisonment for a term of not more than six months or both.
33. Subsection 34 (2) of the Act is repealed and the following substituted:
Penalty
(2) Every holder of a permit to mark or stamp cigarettes and every dealer who possesses cigarettes in a package, carton or case that has previously been used as a marked package, carton or case under this Act or the regulations or has been fraudulently marked shall pay as a penalty,
(a) on a first assessment, an amount equal to three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act; and
(b) on each subsequent assessment, an amount equal to five times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act.
34. (1) Subsection 35 (2) of the Act, as re-enacted by the Statutes of Ontario, 1998, chapter 34, section 110 and amended by 2000, chapter 42, section 113, is repealed and the following substituted:
Offence
(2) Every person who purchases or receives tobacco for resale from a person who does not hold a wholesaler’s permit under section 3 is guilty of an offence and on conviction is liable to the following:
1. If the tobacco is unmarked cigarettes,
i. a fine of not less than the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act and not more than three times that amount, or
ii. imprisonment for a term of not more than two years.
2. If the tobacco is marked cigarettes,
i. on a first conviction, a fine of $4 for each 200 cigarettes, and
ii. on each subsequent conviction, a fine of $4 for each 200 cigarettes, imprisonment for a term of not more than six months or both.
3. If the tobacco is tobacco other than unmarked or marked cigarettes,
i. on a first conviction, a fine of not less than $1,000 and not more than $50,000, and
ii. on each subsequent conviction, a fine of not less than $1,000 and not more than $50,000, imprisonment for a term of not more than six months or both.
(2) Section 35 of the Act, as amended by the Statutes of Ontario, 1998, chapter 34, section 110 and 2000, chapter 42, section 113, is amended by adding the following subsection:
Offence
(2.0.1) Every person who delivers, stores, transports or possesses tobacco in bulk in Ontario that was acquired from or that is owned by a person who does not hold a registration certificate issued under subsection 5 (1) or 7 (1) or a permit issued under subsection 3 (1), 8 (2) or 9 (1) is guilty of an offence and is liable on conviction to the following:
1. If the tobacco is unmarked cigarettes,
i. a fine of not less than the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act and not more than three times that amount, or
ii. imprisonment for a term of not more than two years.
2. If the tobacco is marked cigarettes,
i. on a first conviction, a fine of $4 for each 200 cigarettes, and
ii. on each subsequent conviction, a fine of $4 for each 200 cigarettes, imprisonment for a term of not more than six months or both.
3. If the tobacco is tobacco other than unmarked or marked cigarettes,
i. on a first conviction, a fine of not less than $1,000 and not more than $50,000, and
ii. on each subsequent conviction, a fine of not less than $1,000 and not more than $50,000, imprisonment for a term of not more than six months or both.
(3) Subsection 35 (2.1) of the Act, as enacted by the Statutes of Ontario, 1998, chapter 34, section 110, is amended by adding “or (2.0.1)” after “under subsection (2)”.
(4) Section 35 of the Act, as amended by the Statutes of Ontario, 1998, chapter 34, section 110 and 2000, chapter 42, section 113, is amended by adding the following subsection:
Penalty
(4) Every person who purchases tobacco for resale from a person who does not hold a wholesaler’s permit issued under section 3 and every person who stores, delivers, transports or possesses tobacco that was acquired from or is owned by a person who does not hold a wholesaler’s permit shall, when assessed therefor, pay a penalty of not less than $500 and not more than $10,000 and an additional penalty calculated as follows:
1. If the tobacco is cigarettes, an amount equal to three times the amount of tax that would be payable under section 2 had the cigarettes been sold to a consumer liable to pay tax under this Act.
2. If the tobacco is not cigarettes or cigars, an amount equal to three times the amount of tax that would be payable under section 2 had the tobacco had been sold to a consumer liable to pay tax under this Act.
3. If the tobacco is cigars, for every cigar purchased by the person, 170 per cent of the price at which the cigar was purchased.
Commencement and Short Title
Commencement
35. (1) Subject to subsection (2), this Act comes into force on the day it receives Royal Assent.
Same
(2) Subsections 20 (1), (2), (3) and (4) shall be deemed to have come into force on May 19, 2004.
Short title
36. The short title of this Act is the Budget Measures Act, 2004.
schedule a
ontario loan act, 2004
Borrowing authorized
1. (1) The Lieutenant Governor in Council may borrow in any manner provided by the Financial Administration Act such sums, not exceeding a total aggregate amount of $8.5 billion, as are considered necessary to discharge any indebtedness or obligation of Ontario or to make any payment authorized or required by any Act to be made out of the Consolidated Revenue Fund.
Other Acts
(2) The authority to borrow conferred by this Act is in addition to that conferred by any other Act.
Expiry
2. (1) No order in council authorizing borrowing under this Act shall be made after December 31, 2006.
Same
(2) The Crown shall not borrow money after December 31, 2007 under an order in council that authorizes borrowing under this Act unless, on or before December 31, 2007,
(a) the Crown has entered into an agreement to borrow the money under the order in council; or
(b) the Crown has entered into an agreement respecting a borrowing program and the agreement enables the Crown to borrow up to a specified limit under the order in council.
Commencement
3. The Act set out in this Schedule comes into force on the day the Budget Measures Act, 2004 receives Royal Assent.
Short title
4. The short title of the Act set out in this Schedule is the Ontario Loan Act, 2004.
This reprint of the Bill is marked to indicate the changes that were made in Committee.
The
changes are indicated by underlines for new text and a strikethrough for deleted text.
______________
EXPLANATORY NOTE
The Bill implements measures contained in the 2004 Budget. The major elements of the Bill are described below.
Assessment Act
Subsection 19.1 (1) of the Assessment Act currently provides that, until 2005, land is assessed at its current value for a particular taxation year; that, for 2005, it is assessed as the average of its current value for 2004 and 2005; and that, for subsequent years, it is assessed as the average of its current value for the particular taxation year and the two preceding years. An amendment to that subsection deletes the references to assessment averaging commencing in 2005 and authorizes the Minister of Finance, by regulation, to specify the year to be used. The regulation is void if it is filed less than 18 months before the beginning of that specified year.
Section 19.2 of the Act currently sets out the day as of which land is valued for municipal and school tax purposes for 1998 and for each subsequent year. The re-enactment of subsection (1) changes that day from June 30 of the previous year to January 1 of the previous year for 2006 and subsequent years, unless the Minister of Finance prescribes a different day for the year by regulation. The day as of which land is valued for 2005 is June 30, 2003.
Section 31 of the Act currently requires the delivery of assessment notices 14 days before the day the assessment roll is returned. The amendments to section 31 of the Act require the delivery of assessment notices earlier if the Minister of Finance prescribes by regulation an earlier deadline for delivery of assessment notices.
Subsection 36 (1) of the Act currently requires the return of the assessment roll by the third Tuesday after December 1 in each year. The re-enactment of that subsection changes the deadline to the second Tuesday after December 1.
The enactment of subsection 40 (15.1) of the Act provides that an assessment complaint in respect of the 2004 taxation year is deemed to also be made in respect of any assessments for 2004 issued under section 33 or 34 of the Act and will be deemed to be made in respect of assessments for 2005, if the deadline for filing complaints in respect of 2005 expires before the final disposition of the 2004 complaint.
Drug Interchangeability
and Dispensing Fee Act
Currently,
section 14 of the Drug Interchangeability and Dispensing
Fee Act authorizes the Lieutenant Governor in Council to make
regulations designating interchangeable products, subject to specified
restrictions, and removing a designation in specified circumstances. Section
14, as re-enacted, transfers this authority to the Minister of
Health and Long-Term Care the authority to make regulations designating
interchangeable products. The Lieutenant Governor in
Council retains exclusive authority to remove such a designation.
Financial Administration Act
Technical amendments are made to the Financial Administration Act in connection with the recent implementation of a system of accrual-based appropriations. These amendments relate to the treatment of payments made in satisfaction of liabilities incurred by the Crown before April 1, 2003.
Loan and Trust Corporations Act
Currently, section 38 of the Loan and Trust Corporations Act prohibits corporations from carrying on the business of a loan corporation or a trust corporation after July 1, 2004. This prohibition does not apply to corporations incorporated under the Trust and Loan Companies Act (Canada). Section 38 is amended to permit other registered corporations to apply for approval to continue carrying on such a business until July 1, 2005. The Superintendent of Financial Services is authorized to approve these applications.
Municipal Act, 2001
Currently, Part IX of the Municipal Act, 2001 imposes an annual limit on tax increases for commercial, industrial and multi-residential property of 5 per cent of the previous year’s taxes until the taxes on the property reach the amount that would be imposed based on the current value assessment (CVA taxes). The enactment of section 329.1 of the Act provides municipalities with options to increase the annual limit on tax increases on property by up to 10 per cent of the previous year’s taxes or by up to 5 per cent of what would have been the CVA taxes for the previous year. If these options are exercised, landlords of commercial and industrial property are required to adjust the amount of the tenant’s cap accordingly. If the taxes on a property are within $250 of the CVA taxes, the municipality will be entitled to impose the CVA taxes.
Under Part IX of the Act, a property becomes an eligible property during a taxation year if, during the year, a building is built or enlarged on the property, the property is subdivided, the property’s classification changes or the property becomes taxable. Currently, an eligible property must be taxed for the year in which it becomes an eligible property at the level of taxation of comparable properties. The enactment of section 329.1 of the Act provides municipalities with the option of taxing commercial, industrial or multi-residential properties that become eligible properties in 2005 at up to 70 per cent of the CVA taxes. The maximum percentage increases to 80 per cent of CVA taxes for properties that become eligible properties in 2006 and 90 per cent of CVA taxes for properties that become eligible properties in 2007. Properties that become eligible properties in 2008 or a subsequent year can be taxed at the municipality’s option at the full amount of CVA taxes.
The amendment to subsection 354 (2) and the enactment of section 354.1 of the Act provide that if the Minister of Finance makes a regulation under subsection 33 (1.1) of the Assessment Act that cancels an omitted assessment made under subsection 33 (1) of that Act, the municipality must remove from the tax roll any unpaid taxes on the land that are no longer payable by reason of the cancelled assessment and must repay to the owner any overpayment of tax that results from the cancelled assessment.
Ontario Drug Benefit Act
Currently, section 18 of the Ontario Drug Benefit Act authorizes the Lieutenant Governor in Council to make regulations designating a product as a listed drug product for the purposes of the Act. The new subsection 18 (1.1) authorizes the Minister of Health and Long-Term Care to make a regulation designating a product that is an interchangeable product under the Drug Interchangeability and Dispensing Fee Act if the Minister considers it to be in the public interest to do so and if the product has a cost savings to the Government of Ontario or is cost neutral. Only the Lieutenant Governor in Council is authorized to remove such a designation.
Ontario Loan Act, 2004
The Ontario Loan Act, 2004, as set out in Schedule A, is enacted. It authorizes the Crown to borrow a maximum of $8.5 billion.
Retail Sales Tax Act
Section 9.1 of the Retail Sales Tax Act currently authorizes a tax rebate for specified energy-efficient appliances that are purchased before April 1, 2004 and delivered before May 16, 2004. Amendments extend this rebate so that it is available for appliances purchased before August 1, 2004 and delivered before September 16, 2004.
Taxpayer Protection Act, 1999
Currently, subsection 2 (1) of the Taxpayer Protection Act, 1999 specifies that a member of the Executive Council shall not include in a bill a provision that increases a tax rate under a designated tax statute or establishes a new tax, unless a referendum authorizes the increase or new tax.
An amendment to section 2 creates two exceptions to subsection 2 (1) for provisions in a bill that receives First Reading in 2004: a provision to establish a new tax under the Income Tax Act to be called the Ontario Health Premium, and a provision concerning the tax rate for qualifying environmental trusts under the Income Tax Act.
Tenant Protection Act, 1997
Under subsection 129 (2) of the existing Tenant Protection Act, 1997, the annual rent guideline is determined by adding 2 per cent to an increase based on operating cost increases. An amendment removes this 2 per cent from the guideline for years after 2004.
Tobacco Tax Act
Subsection 2 (1) of the Tobacco Tax Act is replaced to set out a new tax rate of 11.1 cents on every cigarette and on every gram of tobacco purchased. The new subsection 2 (2.2) authorizes the Minister to prescribe different tax rates on tobacco than those set out in the Act. The current taxing scheme set out in subsections 2 (1.1) to (1.4) of the Act is repealed.
A number of fines and administrative penalties in the Act are changed: see the amendments to subsections 2 (7) and (8), 3 (7), 4 (8), 5 (13) and (14), 7 (4), 8 (10), 17 (3) and (5), 18 (6), 29 (2), (3) and (5), 31 (1) and (2), 34 (2) and 35 (2).
The new subsection 2 (7.1) creates an administrative penalty for failing to pay tax.
Subsection 5 (11.1) currently provides for a penalty on unregistered importers of tobacco. The subsection is amended to provide for a penalty on unregistered exporters as well.
Currently, under subsection 11 (1), the Minster may refuse to designate a person as a collector or issue a registration certificate or permit under the Act in certain circumstances. The new clause 11 (1) (a.1) extends these circumstances to include the failure of the person to collect and remit tax as required under the Act. Subsection 11 (2) is amended to authorize the Minister to suspend or cancel an existing designation, certificate or permit in the circumstances described in subsection 11 (1).
Subsection 12 (2) is amended to require the Minister to obtain security from collectors, importers, exporters and permit holders under the Act.
Currently, under subsection 29 (1), a person is permitted to possess up to 999 unmarked cigarettes. The subsection is amended to prohibit the possession of more than 200 unmarked cigarettes. A corresponding change is made in the administrative penalty relating to possession of unmarked cigarettes set out in subsection 29 (4).
Subsection 31 (2) establishes an offence for selling tobacco for resale without a wholesaler’s permit. The new subsection 35 (2.0.1) establishes an offence for delivering, storing, transporting or possessing tobacco in bulk if the tobacco is acquired from or owned by a person not authorized under certain sections of the Act.
The new subsection 35 (4) creates an administrative penalty for purchasing tobacco for resale from a person who does not hold a wholesaler’s permit and for the storage, delivery, transportation and possession of tobacco that was acquired from or is owned by such a person.
Technical amendments are also made.