I-2 - Tobacco Tax Act

Updated to 11 December 2002

This document has official status.

chapter I-2

Tobacco Tax Act

1. The Minister of Revenue shall have charge of the carrying out of this Act.

R. S. 1964, c. 72, s. 1.

The Minister of Finance exercises the functions of the Minister of Revenue provided for in this Act. Order in Council 1689-2022 dated 26 October 2022, (2022) 154 G.O. 2 (French), 6581.

DIVISION I INTERPRETATION

2. In this Act, unless the context indicates a different meaning,

“carrier” means any person who, in Québec, carries out the transport or delivery of tobacco intended for sale and contained in packages that are not identified in accordance with section 13.1;

“collection officer” means any person, other than a retail vendor, who sells or delivers tobacco or causes it to be delivered in Québec;

“establishment” means any place in Québec where tobacco is manufactured, packaged, stored, distributed, sold or traded, but does not include vending machines;

“importer” means any person who brings tobacco or causes it to be brought into Québec for sale or delivery;

“leaf tobacco” means leaf tobacco and fragments of tobacco leaves sold in packages;

“loose tobacco” means any cut, chopped or granular tobacco sold in packages, but does not include tobacco sticks, cigarettes, cigars, leaf tobacco, rolls of tobacco or any other pre-rolled tobacco products designed for smoking;

“manufacturer” means any person who, in Québec, manufactures, produces, mixes, prepares or packages tobacco intended for sale;

“Minister” means the Minister of Revenue;

“Ministère du Revenu” means the Ministère du Revenu du Québec;

“offence against a fiscal law” means an offence against this Act, the Retail Sales Tax Act (chapter I-1), the Fuel Tax Act (chapter T-1), the Taxation Act (chapter I-3), or the Act respecting the Ministère du Revenu (chapter M-31);

“package” means a package, a carton or any other container of tobacco, and includes a hand of tobacco;

“person” means an individual, a firm, a corporation, an association of persons, a succession, a sequestrator, a trustee in bankruptcy, a liquidator, a fiduciary trustee, an administrator or an agent;

“retail sale” means a sale made to a person for consumption by him or by any other person at his expense but does not include a sale for the purpose of resale or a sale of leaf tobacco designed to enter into the composition of tobacco intended for sale;

“retail vendor” means any person who, in Québec, sells tobacco by retail sale;

“sale” includes ordinary contracts of sale and exchanges;

“sale price” or “purchase price” means a price in money, also the value of services rendered or other considerations or prestations accepted by the vendor as price or value of the thing given, including an amount equal to the tax that would be paid or payable under Part IX of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15) if that tax were calculated only on the preceding elements of the sale price or purchase price, determined without reference to the input tax credit provided for in that Part that would relate to the thing covered by the contract of sale;

“storer” means any person, other than a person prescribed by regulation or a carrier, who, in Québec, warehouses, stores, holds, keeps or preserves, for any purpose, tobacco contained in a package not identified in accordance with section 13.1;

“tobacco” means tobacco in any form in which tobacco is consumed, and includes snuff, but does not include leaf tobacco which has not been processed beyond the drying stage or fragments of such tobacco leaves;

“vehicle” means any property propelled, pushed or drawn otherwise than by human muscular power, including a vessel, an aircraft, a railway locomotive and a railway car;

“vending machine operator” means any person who sells tobacco by retail sale by means of a vending machine;

“vendor” includes both wholesale vendor and retail vendor;

“wholesale vendor” means any person who, in Québec, sells tobacco for the purpose of resale.

R. S. 1964, c. 72, s. 2; 1977, c. 5, s. 14; 1986, c. 17, s. 1; 1990, c. 7, s. 8; 1990, c. 60, s. 29; 1991, c. 16, s. 1; 1993, c. 79, s. 1; 1994, c. 22, s. 38; 1997, c. 3, s. 8; 1998, c. 16, s. 1; 1999, c. 83, s. 22.

2.0.1. In this Act and the regulations, a legal person, whether or not established for pecuniary gain, is designated by the word “corporation”.

1997, c. 3, s. 9.

2.1. Notwithstanding any other general law or special Act, this Act is binding on the Government, on Government departments and bodies and on mandataries of the State.

1979, c. 20, s. 4; 1998, c. 16, s. 2.

DIVISION II CERTIFICATES AND PERMITS

1991, c. 16, s. 2; 1995, c. 47, s. 1; 1999, c. 65, s. 1.

§ 1 . — Registration certificates

1991, c. 16, s. 2; 1999, c. 65, s. 1.

3. No person may engage in the retail sale of tobacco in an establishment in Québec unless a registration certificate has been issued to that person under Title I of the Act respecting the Québec sales tax (chapter T-0.1) and is in force at that time with regard to the retail sale of tobacco for that establishment with regard to retail sales of tobacco.

R. S. 1964, c. 72, s. 3; 1971, c. 27, s. 2; 1986, c. 17, s. 2; 1991, c. 16, s. 2; 1995, c. 47, s. 3; 1998, c. 33, s. 62; 1999, c. 65, s. 2.

3.1. (Replaced).

1986, c. 17, s. 2; 1991, c. 16, s. 2.

4. (Repealed).

R. S. 1964, c. 72, s. 4; 1971, c. 27, s. 3; 1981, c. 24, s. 7; 1991, c. 16, s. 2; 1993, c. 79, s. 2; 1999, c. 65, s. 3.

5. (Repealed).

R. S. 1964, c. 72, s. 5; 1971, c. 27, s. 4; 1981, c. 24, s. 8; 1991, c. 16, s. 2; 1999, c. 65, s. 4.

5.0.1. Notwithstanding section 415 of the Act respecting the Québec sales tax (chapter T-0.1), the registration certificate provided for in the first paragraph of section 3 shall be posted at the chief place of business of its holder in Québec and is not transferable.

A copy of the registration certificate shall be posted in each establishment operated by the holder.

Every vending machine operator shall post in plain sight on the front of each vending machine and next to the slot where coins are inserted the vendor’s name and the registration number assigned to the vendor under Title I of the Act respecting the Québec sales tax, using the sticker issued by the Minister for such purpose.

To obtain the sticker referred to in the third paragraph, a vending machine operator must apply in writing to the Minister, indicating the address where each vending machine is to be operated and, if the operator is not the owner of the vending machine, the name and address of the owner.

1995, c. 47, s. 4; 1999, c. 65, s. 5.

5.0.2. Where a registration certificate has been suspended pursuant to section 17.9.1 of the Act respecting the Ministère du Revenu (chapter M-31) with regard to retail sales of tobacco in a particular establishment, the certificate holder must post the notice of suspension served on the holder by the Minister in the establishment for the entire duration of the suspension.

1998, c. 33, s. 63.

5.0.3. Where a registration certificate has been suspended pursuant to section 17.6 of the Act respecting the Ministère du Revenu (chapter M-31) with regard to the retail sale of tobacco, the certificate holder shall post the notice of suspension served by the Minister at the holder’s principal place of business in Québec for the entire duration of the suspension.

A copy of the notice of suspension shall be posted in each of the establishments of the certificate holder in Québec for the entire duration of the suspension.

1999, c. 65, s. 6.

5.1. A retail vendor shall, upon applying for registration under Title I of the Act respecting the Québec sales tax (chapter T-0.1) or at the request of and within the time fixed by the Minister, provide a declaration to the Minister containing the addresses of the establishments the retail vendor intends to operate or cause to be operated by a third person.

The retail vendor shall also immediately inform the Minister, by registered or certified mail, of any change causing the information provided under this section to be inaccurate or incomplete.

1986, c. 17, s. 3; 1991, c. 16, s. 2; 1999, c. 65, s. 7; 2001, c. 51, s. 13.

§ 2 . — Permits

1991, c. 16, s. 2.

6. Every person who, in Québec,

(a)  is a collection officer;

(b)  is an importer;

(c)  is a manufacturer;

(d)  is a storer;

(e)  (paragraph repealed);

(f)  is a carrier,

shall hold a permit issued for that purpose under this Act, unless he is exempt from this requirement by regulation.

R. S. 1964, c. 72, s. 6; 1971, c. 27, s. 5; 1972, c. 22, s. 98; 1990, c. 4, s. 455; 1991, c. 16, s. 2; 1999, c. 65, s. 8.

6.1. To obtain a permit, a person shall

(a)  apply therefor to the Minister on the form prescribed by the Minister and provide the information prescribed by regulation;

(b)  (paragraph repealed);

(c)  (paragraph repealed);

(d)  designate an agent in accordance with section 7.6, if he has no residence or place of business in Québec;

(e)  furnish such security as may be required in section 17.2, 17.3 or 17.4 of the Act respecting the Ministère du Revenu (chapter M-31);

(f)  provide, where applicable, the address of the establishment where the person intends to use the permit as well as the address of any other establishment the person intends to cause to be operated by a third person;

(f.1)  have complied with the provisions of sections 6.6 and 7.13;

(g)  (paragraph repealed);

(h)  fulfil such other conditions and furnish such other documents as may be required by law or by regulation.

1991, c. 16, s. 2; 1993, c. 79, s. 3; 1999, c. 65, s. 9.

6.2. The permit shall be issued by the Minister or by any other person authorized by him. It shall be kept at the chief place of business of the holder in Québec, and a copy of the permit shall be posted in each establishment operated under it.

Where a permit is issued for the transport of tobacco, its holder shall keep a copy of it in each vehicle used for that purpose. In addition, if the holder has no establishment in Québec, he must keep a copy in each vehicle of each permit he holds pursuant to this Act.

1991, c. 16, s. 2; 1999, c. 65, s. 10.

6.3. The period of validity of the permit is two years. On expiry of the permit, the Minister or any other person authorized by him shall renew it for the same period, subject to sections 17.5 and 17.6 of the Act respecting the Ministère du Revenu (chapter M-31).

1991, c. 16, s. 2; 1993, c. 79, s. 4.

6.4. Notwithstanding section 6.3, the Minister or any other person authorized by him may issue a temporary permit valid for a period of six months to any person having no residence, establishment or place of business in Québec.

The permit may be renewed for the same period provided that the holder applies therefor in accordance with the terms and conditions set forth in paragraph a of section 6.1, between the sixtieth and thirtieth days preceding the date of expiry of the permit and provided he fulfils the other conditions set forth in section 6.1.

1991, c. 16, s. 2.

6.5. The permit is not transferable and shall not be used except by the holder and for the activity mentioned in it.

1991, c. 16, s. 2.

6.6. A permit holder shall inform the Minister immediately upon ceasing activities or upon any change causing the information provided with the application for or at the time of the renewal of the permit to be inaccurate or incomplete. Moreover, before beginning to operate an establishment whose address was not provided to the Minister pursuant to paragraph f of section 6.1, a permit holder shall inform the Minister by registered or certified mail.

A permit holder shall also inform the Minister immediately of any amalgamation, sale or transfer of his firm and of any change in the name he uses in doing business.

1991, c. 16, s. 2; 1997, c. 3, s. 10; 1999, c. 65, s. 11.

6.7. The Minister may cancel a permit if the Minister is satisfied that the permit is not required for the purposes of this Act.

Where the Minister cancels a permit, the Minister shall advise the holder in writing of the cancellation and of its effective date.

1999, c. 65, s. 12.

§ 3 . — Miscellaneous provisions

1991, c. 16, s. 2.

7. No person may sell or deliver tobacco in Québec to a retail vendor who does not hold a registration certificate provided for in section 3 that is in force with regard to the retail sale of tobacco or to a wholesale vendor who does not hold the appropriate permit provided for in section 6.

Furthermore, where the registration certificate of a vendor has been suspended pursuant to section 17.9.1 of the Act respecting the Ministère du Revenu (chapter M-31) in respect of a particular establishment, no person may sell to that vendor tobacco intended for retail sale in that establishment, or deliver or cause tobacco to be delivered to that establishment.

R. S. 1964, c. 72, s. 7; 1971, c. 27, s. 6; 1991, c. 16, s. 2; 1995, c. 47, s. 5; 1998, c. 33, s. 64; 1999, c. 65, s. 13.

7.1. No retail vendor or collection officer may purchase or take delivery of tobacco in Québec from any person other than the holder of a collection officer’s permit, unless he has made an agreement under section 17.

1990, c. 60, s. 30; 1991, c. 16, s. 2.

7.2. (Repealed).

1991, c. 16, s. 2; 1993, c. 79, s. 5.

7.3. (Repealed).

1991, c. 16, s. 2; 1993, c. 79, s. 5.

7.4. (Repealed).

1991, c. 16, s. 2; 1993, c. 79, s. 5.

7.5. (Repealed).

1991, c. 16, s. 2; 1993, c. 79, s. 5.

7.6. A person having no residence or place of business in Québec must designate an agent residing in Québec and provide the name and address of the agent to the Minister.

Service upon the agent of any proceeding, application or notice is deemed made upon the person who designated him.

1991, c. 16, s. 2.

7.7. (Repealed).

1991, c. 16, s. 2; 1993, c. 79, s. 5.

7.8. (Repealed).

1991, c. 16, s. 2; 1993, c. 79, s. 5.

7.9. Every person who, in Québec, transports packages of tobacco intended for sale shall, in respect of each load, draw up or cause to be drawn up a manifest or way-bill in accordance with the requirements prescribed by regulation, for the packages of tobacco transported. He shall keep the manifest or way-bill or cause it to be kept in the vehicle used to transport the tobacco.

The Government may, by regulation, determine categories of persons and determine, with regard to one or more such categories of persons, specific requirements for the manifest or way-bill, or exempt any such category of persons from the requirements set out in the first paragraph.

1991, c. 16, s. 2; 1993, c. 79, s. 6.

7.10. The storer or carrier must keep a register, in the manner prescribed by regulation, setting out the handling of the stored packages of tobacco and the deliveries made of packages of tobacco, as the case may be.

He may be required, at the request of the Minister and on the form prescribed by him, to report the number of packages of tobacco stored, transported or delivered for the period determined by the Minister.

1991, c. 16, s. 2.

7.11. Every vending machine operator must keep, for each machine, a register containing the information prescribed by regulation.

1991, c. 16, s. 2.

7.12. The Minister may require a vendor to submit a report, on the form prescribed by the Minister and within the time fixed by him, of the inventory of all or certain tobacco products he has in stock on a date the Minister determines.

For the purposes of this section, the tobacco products a vendor has in stock on the date that the Minister determines include the tobacco products he has acquired but which on that date have not been delivered.

1991, c. 16, s. 2; 1995, c. 1, s. 8.

7.13. In the case of the acquisition of an establishment, the transferee shall provide to the Minister the name and address of the transferee, the address of the establishment and the name and address of the transferor. In the case of the transfer of an establishment, the transferor shall provide to the Minister the name and address of the transferor, the address of the establishment and the name and address of the transferee.

1999, c. 65, s. 14.

DIVISION III TAXATION

8. Every person must, at the time of a retail sale of tobacco in Québec, pay a tobacco consumer tax equal to

(a)  $0.053 per cigarette and per cigar sold at a retail price of $0.15 or less;

(b)  $0.053 per gram of any loose tobacco;

(b.1)  $0.053 per gram of any leaf tobacco;

(c)  60 % of the retail price of each cigar other than a cigar sold at a retail price of $0.15 or less;

(d)  $0.0815 per gram of any tobacco other than cigarettes, loose tobacco, leaf tobacco or cigars. However, where the quantity of tobacco contained in a tobacco stick, a roll of tobacco or any other pre-rolled tobacco product designed for smoking is such that the consumer tax payable under this paragraph is less than $0.053 per tobacco stick, roll of tobacco or other pre-rolled tobacco product, the consumer tax shall be $0.053 per tobacco stick, roll of tobacco or other pre-rolled tobacco product designed for smoking.

R. S. 1964, c. 72, s. 8; 1965 (1st sess.), c. 29, s. 1; 1968, c. 32, s. 1; 1976, c. 21, s. 1; 1978, c. 31, s. 1; 1980, c. 14, s. 21; 1981, c. 12, s. 26; 1982, c. 56, s. 6; 1984, c. 35, s. 7; 1986, c. 15, s. 28; 1987, c. 21, s. 5; 1990, c. 7, s. 9; 1990, c. 60, s. 31; 1991, c. 16, s. 3; 1991, c. 67, s. 547; 1993, c. 79, s. 7; 1994, c. 42, s. 1; 1994, c. 22, s. 39; 1995, c. 1, s. 9; 1995, c. 63, s. 8; 1997, c. 85, s. 31; 1999, c. 83, s. 23; 2001, c. 51, s. 14; 2002, c. 9, s. 5.

9. Every person ordinarily residing in Québec or carrying on business therein who, himself or through the intermediary of any other person, brings or causes to be brought into Québec or receives delivery in Québec of any tobacco, for consumption by himself or by any other person at his expense, shall immediately report the matter to the Minister and forward or produce to him the invoice, if any, and any other information he may require and, at the same time, pay the same tobacco consumer tax that would have been payable had that tobacco been purchased at a retail sale in Québec.

R. S. 1964, c. 72, s. 9; 1980, c. 14, s. 21; 1981, c. 24, s. 9.

9.0.1. Where an individual resident in Québec brings or causes to be brought into Québec any tobacco from outside Canada, for consumption by himself or by another person at his expense otherwise than exclusively in the course of his commercial activities, the tax provided for in section 9 does not apply in respect of the tobacco so brought into Québec to the extent that the tax provided for in section 17 of the Act respecting the Québec sales tax (chapter T-0.1) is not payable in respect thereof by reason of the application of paragraph 1 of section 81 of the said Act.

1993, c. 19, s. 11.

9.1. Every person who consumes tobacco in Québec on which the tax provided for in section 8 or 9 has not been paid, or acts in such a manner that other persons consume such tobacco at his expense, must immediately report the matter to the Minister with any other information that he may require and, at the same time, pay on that tobacco the same tobacco consumer tax that would have been payable had that tobacco been purchased at a retail sale in Québec.

1980, c. 14, s. 22; 1981, c. 24, s. 10.

9.2. No person ordinarily residing or carrying on business in Québec may have in his possession tobacco intended for consumption by him or by any other person at his expense unless the package is identified in accordance with section 13.1 for tobacco intended for retail sale in Québec, except if the tobacco has been legally brought into Québec.

1980, c. 14, s. 22; 1986, c. 15, s. 29; 1987, c. 21, s. 6; 1993, c. 79, s. 8.

9.3. (Repealed).

1980, c. 14, s. 22; 1986, c. 15, s. 29; 1987, c. 21, s. 6.

9.4. (Repealed).

1980, c. 14, s. 22; 1986, c. 15, s. 29; 1987, c. 21, s. 6.

9.5. (Repealed).

1980, c. 14, s. 22; 1987, c. 21, s. 6.

10. The tax imposed by this Act shall, as regards cigars, be computed on each cigar and, as regards other tobacco products, on every package, and any fraction of $0.01 of that tax shall be computed as $0.01.

However, the first paragraph does not apply in respect of cigars sold at a sale price of $0.15 or less each or cigarettes nor, in the case of tobacco referred to in paragraph d of section 8, in respect of tobacco sticks, rolls of tobacco or any other pre-rolled tobacco products designed for smoking.

R. S. 1964, c. 72, s. 10; 1965 (1st sess.), c. 29, s. 2; 1980, c. 14, s. 23; 1994, c. 22, s. 40; 1999, c. 83, s. 24.

11. Every retail vendor shall collect, as a mandatary of the Minister, the tax provided for in section 8 on every sale of tobacco made by the retail vendor.

The tax shall, for each type of product, be indicated separately from the sale price on any document recording the sale, on any invoice and in the accounting books of the retail vendor, except in the cases prescribed by regulation.

In addition, the tax shall be referred to by its name, an abbreviation of its name or a similar designation. No other form of reference to the tax may be used.

R. S. 1964, c. 72, s. 11; 1977, c. 5, s. 14; 1981, c. 24, s. 11; 1986, c. 17, s. 4; 1991, c. 16, s. 4; 1999, c. 83, s. 25; 2002, c. 46, s. 1.

11.1. Every retail vendor shall, not later than the last day of each month, render an account to the Minister, on the form prescribed by him, of the tax he has collected or should have collected during the preceding month and shall at the same time remit the amount of that tax to the Minister.

He shall render an account even if no sale subject to the tax was made during the month.

Notwithstanding the foregoing, a retail vendor is not required to render an account to the Minister unless the Minister demands it or to remit to him the tax collected in respect of the sale of tobacco which he acquired from a person holding a collection officer’s permit where the retail vendor has paid to that person the amount provided for in section 17.2 in respect of that tobacco.

However, if the tax collected in respect of the tobacco referred to in the third paragraph is greater than the amount the retail vendor paid under section 17.2 to a person holding a collection officer’s permit, the difference shall be remitted to the Minister in accordance with the terms and conditions provided in the first paragraph.

1991, c. 16, s. 5; 1991, c. 67, s. 548.

12. (Repealed).

R. S. 1964, c. 72, s. 12; 1981, c. 24, s. 12; 1991, c. 16, s. 6.

13. Notwithstanding any Act or by-law to the contrary, no sales tax on the purchase at retail of tobacco by a consumer may be levied by any municipality, and any such sales tax imposed by any such municipality on the purchase at retail of tobacco has been abolished since 1 July 1940.

This section shall also apply to cigars sold at a retail price of $0.05 or less each and to raw leaf tobacco.

R. S. 1964, c. 72, s. 13; 1996, c. 2, s. 692.

13.1. Every package of tobacco prescribed by regulation that is intended for retail sale in Québec and that is in Québec must be identified by the persons, in the manner and on the conditions prescribed by regulation.

1986, c. 17, s. 5; 1991, c. 16, s. 7; 1993, c. 79, s. 9.

13.2. No person may sell, deliver or cause to be delivered outside Québec tobacco in a package identified in accordance with section 13.1, unless one of the following conditions applies:

(a)  the Minister has authorized him to do so;

(b)  the person to whom the tobacco is sold or delivered is party to an agreement made under section 17;

(c)  the delivery of such tobacco is made outside Québec for consumption outside Québec and is authorized by regulation.

Every person who, contrary to the first paragraph, sells, delivers or causes to be delivered, outside Québec, tobacco in a package identified in accordance with section 13.1 shall pay to the Minister a penalty equal to the amount of tax that would have been payable under section 8 on 8 February 1994 if the tobacco had been sold by retail sale in Québec on that date.

1986, c. 17, s. 5; 1991, c. 16, s. 8; 1994, c. 42, s. 2.

DIVISION III.1 EXAMINATION, INSPECTION AND SEIZURE

1986, c. 17, s. 5.

13.2.1. A person carrying out an examination or control under section 38 of the Act respecting the Ministère du Revenu (chapter M-31) in respect of a vending machine operator may require the operator or a person authorized by the latter to open each vending machine he operates to allow him to examine and control the identification of the packages of tobacco it contains. He may also affix seals to a vending machine found to contain packages of tobacco not identified in accordance with section 13.1.

The seals shall remain affixed until a judge has granted an authorization under section 13.4 to seize the vending machine and the tobacco found therein or for a period of not more than 15 days if such an authorization is not obtained.

1991, c. 16, s. 9; 1993, c. 79, s. 10.

13.3. Any member of the Sûreté du Québec, any member of a municipal police force or any person authorized by the Minister for such purposes may, at any place and at any reasonable time, stop a vehicle for inspection where he has reasonable grounds to believe that it contains packages of tobacco, require the owner, driver or person in charge of the vehicle to produce, where applicable, the manifest or way-bill provided for in section 7.9 and the copy of the permit provided for in section 6.2, and examine the identification of the packages of tobacco being transported.

The person may also order that the vehicle not be moved where the owner, driver or person in charge of it refuses to submit to any examination or inspection provided for in the first paragraph or does not hold the documents referred to in that paragraph or produces a manifest or way-bill containing inaccurate or incomplete information or where the person has reasonable grounds to believe that an offence is being or has been committed under paragraph a of section 14.1 where it refers to sections 6.2 and 17.10 or under paragraph a of section 14.2 where it refers to section 6. In any such case, the owner, driver or person in charge of the vehicle shall identify himself and produce the vehicle registration certificate for examination.

The vehicle shall not be moved without the authorization of a member of the Sûreté du Québec, a member of a municipal police force or the Minister, as the case may be, until a judge rules on the application referred to in section 13.4, which must be introduced with reasonable dispatch, and until its seizure, where such is the case.

However, if a vehicle is left for the night elsewhere than in a public place and all activity related to its use has ceased, no examination or inspection provided for in the first paragraph may be carried out without a warrant between 10 p.m. and 7 a.m. by a person referred to in the first paragraph.

1986, c. 17, s. 5; 1990, c. 4, s. 456; 1991, c. 16, s. 10; 1993, c. 79, s. 11.

13.3.1. Any member of the Sûreté du Québec, any member of a municipal police force or any person authorized by the Minister for such purposes may stop a vehicle used to transport packages of tobacco in Québec where he has reasonable grounds to believe that the packages transported are intended for retail sale in Québec and that the purchaser does not hold the registration certificate provided for in section 3, in the case of a retail vendor, or the appropriate permit provided for in section 6, in the case of a person other than a retail vendor, or that the packages are not identified in accordance with section 13.1 or that an offence under paragraph a of section 14.1 where it refers to section 17.10 is being or has been committed.

The vehicle shall not be moved without the authorization of a member of the Sûreté du Québec, a member of a municipal police force or the Minister, as the case may be, until a judge rules on the application referred to in section 13.4, which must be introduced with reasonable dispatch, and until its seizure, where such is the case.

1991, c. 16, s. 11; 1993, c. 79, s. 12; 1995, c. 47, s. 6; 1999, c. 65, s. 15.

13.4. A judge of the Court of Québec or a justice of the peace having jurisdiction may, on an ex parte application following an information made in writing and under oath by a person who has reasonable grounds to believe that an offence against this Act is being or has been committed and that there is in a place in Québec a thing that may afford evidence of the offence or which is being or has been used for the commission of the offence, authorize in writing any public servant of the Ministère du Revenu, or any other person he designates, to search in that place and to seize and remove therefrom that thing and, for those purposes, to enter any building, receptacle or premises in that place; the public servant or person so authorized may call upon the assistance of a peace officer.

Furthermore, any member of the Sûreté du Québec or any member of a municipal police force may apply for a warrant or telewarrant and make a search in accordance with articles 96 to 114 of the Code of Penal Procedure (chapter C-25.1) with a view to searching for, seizing and removing a thing described in the first paragraph.

Any public servant of the Ministère du Revenu may also apply for a telewarrant and make a search in accordance with the said articles of the Code of Penal Procedure with a view to searching for, seizing and removing a thing described in the first paragraph.

In addition, any member of the Sûreté du Québec, any member of a municipal police force or any public servant of the Ministère du Revenu who has reasonable grounds to believe that an offence against this Act is being or has been committed and that there is in a place in Québec a thing that may afford evidence of the offence or which is being or has been used for the commission of the offence, may also search for, seize and remove that thing without the authorization provided for in the first paragraph, or without having made an application for a warrant or telewarrant provided for in the second or the third paragraph, as the case may be, if the person in charge of that place consents to the search or in exigent circumstances within the meaning of article 96 of the Code of Penal Procedure.

No search under the first paragraph may commence before 7 a.m. or after 8 p.m. or on a non-juridical day, without the written authorization of the judge who authorized the search. Nor may any such search commence more than 15 days after being authorized.

1986, c. 17, s. 5; 1988, c. 21, s. 94; 1991, c. 16, s. 12; 1993, c. 79, s. 13; 1996, c. 31, s. 1.

13.4.1. For the purposes of the first paragraph of section 13.4, the judge may grant his authorization on the conditions he indicates if he is convinced that there are reasonable grounds to believe that an offence against this Act is being or has been committed and that things which may afford evidence of the offence or which are being or have been used in the commission of the offence are in the place indicated in the information.

1991, c. 16, s. 12; 1993, c. 79, s. 14.

13.4.2. The public servant or the designated person who carries out a search in accordance with the first paragraph of section 13.4 may seize and remove, in addition to what is provided for in that section, any other thing which he believes, on reasonable grounds, constitutes evidence of the commission of the offence described in the information or which he believes has been used in committing the offence, as well as any other thing in plain view to which section 13.4 applies.

The person shall, with reasonable dispatch, report the seizure to the judge who gave the written authorization under section 13.4 or, in his absence, to a judge of the same jurisdiction.

The judge may authorize the Minister to retain the things seized if he is convinced that they may constitute evidence of the commission of an offence against this Act or that they have been used in committing the offence and that they have been seized in accordance with this section.

1991, c. 16, s. 12; 1993, c. 79, s. 15.

13.4.3. Subject to a release of seizure by the Minister, any thing seized under sections 13.4 and 13.4.2 shall remain in the custody of a person designated by the Minister for that purpose until, in accordance with section 13.5, it is sold or, in accordance with section 13.5.1, it is destroyed or, in accordance with section 15.1, it is confiscated or, in accordance with article 138 of the Code of Penal Procedure (chapter C-25.1), subject to section 13.7.1, or in accordance with section 13.8, it is returned to a person having a right therein.

However, the Minister may return a vehicle seized under section 13.4 or 13.4.2 to the person from whom it was seized if that person pays a deposit equal to the sum of the amount of the cash value of the vehicle and of the amount, determined on the day of payment of the deposit, of the costs of seizure and preservation fixed by regulation. Such deposit is payable in cash or in the manner prescribed by regulation, and shall be kept by an authorized person in the manner prescribed by regulation until disposed of according to law.

1991, c. 16, s. 12; 1993, c. 79, s. 16.

13.5. Notwithstanding sections 13.4 and 13.4.2, where packages of tobacco, a vehicle or a vending machine are or is seized, a judge of the Court of Québec may, upon the application of the Minister, authorize the Minister in writing to sell such packages, vehicle or vending machine or have them sold on the conditions determined in the authorization. An authorization concerning packages of tobacco must also provide for the keeping of samples in sufficient quantity to serve as evidence. Prior notice of not less than one clear day of the application must be served, where their identity is known, on the person from whom the thing was seized and on the persons who claim to have a right in such packages, vehicle or vending machine. The proceeds of the sale, after deduction of the costs, shall be kept by a person authorized by the Minister in the manner prescribed by regulation until disposed of according to law.

1986, c. 17, s. 5; 1988, c. 21, s. 95; 1991, c. 16, s. 13; 1993, c. 79, s. 17.

13.5.1. Notwithstanding sections 13.4 and 13.4.2, where packages of tobacco are seized and cannot be legally sold at a retail sale in Québec, a judge of the Court of Québec may, upon the application of the Minister, authorize the Minister in writing to destroy the packages or have them destroyed on the conditions determined in the authorization. The authorization must also provide for the keeping of samples in sufficient quantity to serve as evidence. Prior notice of not less than one clear day of the application must be served, where their identity is known, on the person from whom the packages were seized and on the persons who claim to have a right in such packages.

1993, c. 79, s. 18.

13.6. The thing seized under section 13.4 or 13.4.2, the deposit referred to in section 13.4.3 or the proceeds referred to in section 13.5 shall not be retained for more than 180 days from the date of seizure, unless proceedings have been instituted or an extension order has been granted.

1991, c. 16, s. 13; 1993, c. 79, s. 19.

13.7. The Minister may apply to a judge, before the expiry of the prescribed retention period, for an extension of not more than 180 days.

Prior notice of the application for an extension shall be served on the person from whom the thing was seized or on the persons who claim to have a right in the thing seized or in the proceeds of the sale thereof.

1991, c. 16, s. 13.

13.7.1. Where, in accordance with the provisions of article 138 of the Code of Penal Procedure (chapter C-25.1), an application for the return of a thing seized under section 13.4 or 13.4.2 or of the proceeds referred to in section 13.5 is made by a person who claims to have a right therein and who is not the offender, the judge may order the return on the conditions he indicates if he is convinced that, in addition to what is provided for in article 138 of the Code of Penal Procedure, the thing or proceeds need not be retained for the purposes of this Act or that confiscation is not required under section 15.1.

The judge may also, in such a case, order the person to pay the costs of seizure and preservation of the thing fixed by regulation.

1993, c. 79, s. 20.

13.8. The Minister must return the thing seized, the deposit referred to in section 13.4.3 or the proceeds of the sale referred to in section 13.5 to the person from whom the thing was seized, as soon as retention thereof is no longer necessary in the interests of justice.

1991, c. 16, s. 13; 1993, c. 79, s. 21.

DIVISION IV PENAL PROVISIONS

1992, c. 61, s. 326.

14. Every person who

(a)  does not furnish a report or other document or any information provided for by this Act or the regulations thereunder, in the manner and at the time provided in sections 5.1, 6.6, 7.13, 9, 9.1, 11.1, 17.3, 17.5 and in the second paragraph of section 7.10, or

(b)  being a mandatary of the Minister, refuses or neglects to collect, account for, report or remit the tax provided for in section 8 or the amount provided for in section 17.2,

is guilty of an offence and is liable to a fine of not less than $200 for each day that the omission continues.

R. S. 1964, c. 72, s. 17 (part); 1971, c. 27, s. 8; 1986, c. 17, s. 6; 1991, c. 16, s. 14; 1999, c. 65, s. 16.

14.1. Every person who

(a)  contravenes section 3, 6.2, 6.5, 7.1, 7.11 or 17.10, the third paragraph of section 5.0.1 or the first paragraph of section 7.10,

(b)  neglects or omits to comply with stop signs set up by a person referred to in section 13.3 or 13.3.1 or to obey the signals or orders of such a person,

(c)  contrary to section 13.3, refuses to produce the registration certificate of a vehicle other than a pleasure vehicle, the copy of the permit or the manifest or way-bill, or refuses to allow the inspection or examination provided for in the first paragraph of section 13.3,

(d)  furnishes a manifest or way-bill containing inaccurate or incomplete information,

(e)  being the holder of a registration certificate provided for in section 3 or a permit, transfers or lends it or causes it to be used by another person, or

(f)  removes or alters a seal affixed pursuant to section 13.2.1 or otherwise contravenes that section,

is guilty of an offence and is liable to a fine of not less than $2 000 nor more than $25 000.

1986, c. 17, s. 6; 1991, c. 16, s. 14; 1999, c. 65, s. 17.

14.2. Every person who

(a)  contravenes section 6, 7 or 7.9,

(b)  sells, delivers or has in his possession tobacco intended for retail sale in Québec and contained in a package which is not identified in accordance with section 13.1,

(c)  uses a registration certificate provided for in section 3 or a permit issued in the name of another person,

(d)  obtains or attempts to obtain, by means of false or misleading statements, a permit issued under this Act, or

(e)  uses, in Québec, a case not identified in accordance with section 17.10 for the sale, delivery, transport or storage of packages of tobacco

is guilty of an offence and is liable to a fine of not less than the greater of $2 000 and three times the tax that would have been payable on 8 February 1994 under this Act had the tobacco involved in the offence been sold by retail sale in Québec on that date and not more than $500 000 or, notwithstanding article 231 of the Code of Penal Procedure (chapter C-25.1), to both that fine and to imprisonment for a term of not more than two years.

1991, c. 16, s. 14; 1993, c. 79, s. 22; 1994, c. 42, s. 3; 1995, c. 63, s. 9; 1999, c. 65, s. 18.

15. Every person who contravenes the provisions of this Act or the regulations, otherwise than as described in sections 9.2, 14, 14.1 and 14.2, is guilty of an offence and is liable to a fine of not less than $200 and not more than $5 000.

R. S. 1964, c. 72, s. 18; 1980, c. 14, s. 24; 1986, c. 17, s. 6; 1993, c. 79, s. 23.

15.1. The judge convicting the defendant of an offence under this Act may, upon the application of the Minister, order the defendant to pay the amount of costs fixed by regulation in relation to the seizure and preservation of any thing seized under section 13.4 or 13.4.2.

However, the judge may reduce the amount if he is convinced that the Minister unduly delayed instituting proceedings or caused the commencement of proceedings to be delayed without sufficient cause.

Upon an application of the Minister made within 30 days after a judgment has been rendered in proceedings to impose a penal sanction for an offence under this Act or, in cases where the defendant is deemed to have been convicted of the offence, within 90 days after service of the statement of offence, a judge may also order the confiscation of packages of tobacco seized under section 13.4 or 13.4.2 where the unlawful possession of such packages prevents their return to the person from whom they were seized or to a person who claims to have a right therein, and, in cases where a defendant has been convicted of, or is deemed to have been convicted of, an offence under this Act, in addition to any penalty otherwise prescribed for the offence, the confiscation of any thing seized under section 13.4 or 13.4.2, of the deposit referred to in section 13.4.3 or of the proceeds referred to in section 13.5.

Prior notice of not less than one clear day of an application under this section shall be served on the defendant, on the person from whom the thing was seized and on the persons claiming a right in the thing seized or in the proceeds referred to in section 13.5, except when they are in the presence of the judge.

Where the confiscation of packages of tobacco or the proceeds of the sale of such packages as provided in section 13.5 is ordered, the judge may, at the request of the Minister, authorize the Minister to destroy or dispose of the packages of tobacco or the proceeds of the sale of such packages as provided in section 13.5 for the benefit of community bodies working in the health and social service sector.

1986, c. 17, s. 6; 1991, c. 16, s. 15; 1993, c. 79, s. 24.

15.2. (Repealed).

1991, c. 16, s. 15; 1993, c. 79, s. 25.

DIVISION V

Repealed, 1982, c. 38, s. 10.

1982, c. 38, s. 10.

16. (Repealed).

R. S. 1964, c. 72, s. 22; 1971, c. 27, s. 11; 1982, c. 38, s. 10.

DIVISION V.1 AGREEMENT WITH A MOHAWK COMMUNITY

1999, c. 53, s. 2.

16.1. The purpose of this division is to implement any agreement concerning the application of this Act concluded between the Government and a Mohawk community.

1999, c. 53, s. 2.

16.2. Subject to section 16.3, the provisions of this Act that are necessary to implement an agreement referred to in section 16.1 apply with the necessary modifications.

1999, c. 53, s. 2.

16.3. For the purposes of an agreement referred to in section 16.1, the Government may make regulations to

(a)  enact any provision necessary to give effect to the agreement and its amendments;

(b)  specify the provisions of this Act that do not apply;

(c)  take any other measures necessary to implement the agreement and its amendments.

The competent parliamentary committee of the National Assembly shall examine every regulation made by the Government under this section and the agreement relating thereto.

1999, c. 53, s. 2.

DIVISION VI SPECIAL PROVISIONS

1991, c. 16, s. 16.

17. In order to facilitate the collection and remittance of the tax imposed by this Act or to prevent the payment twice of such tax on the same tobacco, the Minister may make with any person holding a permit provided for in section 6 such agreement in writing as he considers expedient.

The Minister may also make any agreement under the first paragraph with a retail vendor holding the registration certificate provided for section 3.

R. S. 1964, c. 72, s. 24; 1986, c. 17, s. 7; 1995, c. 47, s. 7; 1999, c. 65, s. 19.

17.1. (Repealed).

1986, c. 17, s. 7; 1991, c. 16, s. 17.

17.2. The holder of a collection officer’s permit shall collect, as a mandatary of the Minister, an amount equal to the tax provided for in section 8 from every person to whom he sells, delivers or causes to be delivered tobacco in a package identified in accordance with section 13.1 or any other package of tobacco intended for retail sale in Québec.

That requirement does not apply in respect of tobacco sold or delivered by a collection officer if he is exempted therefrom pursuant to an agreement under section 17. The same applies in respect of tobacco in a package identified in accordance with section 13.1 where the delivery of the tobacco is made outside Québec for consumption outside Québec and is authorized under section 13.2.

Whether the price is stipulated to be payable in cash, with a term, in instalments or in any other manner, the amount contemplated in the first paragraph shall be collected at the time of the sale and on the total quantity that is the object of the contract.

The amount referred to in the first paragraph shall, for each type of product, be indicated separately from the sale price on any document recording the sale, on any invoice and in the accounting books of the collection officer.

1986, c. 17, s. 7; 1988, c. 18, s. 1; 1991, c. 16, s. 18; 1993, c. 79, s. 26; 1997, c. 14, s. 9.

17.3. The holder of a collection officer’s permit shall, not later than the last day of each month, report to the Minister, using the form prescribed by him, on the amounts he has collected or should have collected under section 17.2 during the preceding month and shall remit the amounts to the Minister at the same time.

The report shall be made and sent to the Minister even if no sale of tobacco was made during the month.

Every collection officer who has made an agreement under section 17 shall fulfill the requirement provided in the first paragraph according to the modalities and within the time provided in the agreement.

Notwithstanding the foregoing, the holder of a collection officer’s permit is not required to remit the amount collected in respect of tobacco sold which he acquired from a person holding a collection officer’s permit where he paid to that person the amount provided for in section 17.2 in respect of that tobacco.

If the amount collected in respect of the tobacco referred to in the fourth paragraph is greater than the amount he paid under section 17.2 to a person holding a collection officer’s permit, the difference shall be remitted to the Minister according to the terms and conditions set out in the first paragraph.

1986, c. 17, s. 7; 1991, c. 16, s. 19; 1991, c. 67, s. 549.

17.4. Every holder of a collection officer’s permit who fails to collect the amount provided for in section 17.2 or fails to remit to the Minister such an amount he has collected and is required to remit or who pays it to a person who does not hold a collection officer’s permit shall become a debtor of the State for that amount.

Every collection officer who is not the holder of a collection officer’s permit at the time he sells, delivers or causes to be delivered tobacco in Québec shall become a debtor of the State for any amount provided for in section 17.2 which he collected or should have collected if he had held a collection officer’s permit.

Every collection officer who sells, delivers or causes to be delivered in Québec tobacco in a package that is not identified in accordance with section 13.1 and that is intended for retail sale in Québec shall become a debtor of the State for an amount equal to the tax computed under section 8 in respect of that tobacco.

The amounts provided for in this section are deemed to be duties within the meaning of the Act respecting the Ministère du Revenu (chapter M-31).

1986, c. 17, s. 7; 1991, c. 16, s. 20; 1998, c. 16, s. 3; 2000, c. 39, s. 1.

17.5. Every collection officer shall, not later than the last day of each month, report to the Minister, using the form prescribed by him, on the total quantity of packages of tobacco purchased, sold and handled during the preceding month, by type of product and according to the identification of each package.

The report shall be made and sent to the Minister even if no package was bought, sold or handled during the month.

He shall also, at the time prescribed in the first paragraph, furnish the Minister with a statement in respect of each customer, in accordance with the requirements prescribed by regulation, showing the sales and deliveries of packages of tobacco made during the preceding month by type of product and according to the identification of each package and indicating, by type of product, the amount equal to the tax collected or to be collected.

In addition, every manufacturer shall, not later than the last day of each month, report to the Minister, using the form prescribed by him, on the total quantity of packages of tobacco manufactured and produced during the preceding month and on the destination of packages shipped, by type of product and according to the identification of each package, and provide any other prescribed information.

The report shall be made and sent to the Minister even if no package was manufactured or produced during the month.

1991, c. 16, s. 21; 1991, c. 67, s. 550; 1995, c. 63, s. 10.

17.6. The Minister may make an allowance determined by regulation to any holder of a collection officer’s permit with whom he has made an agreement under section 17 for the collection and remittance of the amount equal to the tax provided for in this Act.

1991, c. 16, s. 21.

17.7. Where a person is transporting packages of tobacco in Québec without having in his possession the manifest or way-bill provided for in section 7.9, it is presumed that the tobacco is intended for retail sale in Québec.

1991, c. 16, s. 21; 1997, c. 3, s. 12.

17.8. Where a person stores, in Québec, tobacco in a package not identified in accordance with section 13.1 without holding a permit to do so, it is presumed that the tobacco is intended for retail sale in Québec.

1991, c. 16, s. 21; 1997, c. 3, s. 12.

17.9. Where an offence under this Act has been committed, any person entrusted with the enforcement of this Act may draw up an offence report.

In any proceedings instituted under this Act, the offence report, signed by the person mentioned in the first paragraph, shall be accepted, in the absence of proof to the contrary, as proof of the facts attested by and of the authority of the person who signs such report, without other proof of his appointment or of his signature.

1991, c. 16, s. 21; 1997, c. 3, s. 11.

17.10. Every case used in Québec for the sale, delivery, transport or storage of packages of tobacco shall be identified by the persons, in the manner and on the conditions prescribed by regulation.

For the purposes of this section, “case” means any container or wrapping containing not fewer than 24 cartons of cigarettes or several units of pre-rolled tobacco products and any prescribed case.

1991, c. 16, s. 21; 1993, c. 79, s. 27; 1995, c. 63, s. 11.

17.11. Where a new identification is prescribed under section 13.1 or 17.10, the Government may, by regulation, prescribe the terms and conditions according to which it is carried out and the categories of persons to whom it applies.

1991, c. 16, s. 21.

17.12. Every holder of a collection officer’s permit who makes a sale of tobacco, other than a retail sale, to a person with whom the collection officer is dealing at arm’s length may, provided it is established that the sale price and the amount provided for in section 17.2 in respect of the sale of tobacco have become in whole or in part a bad debt, obtain a refund of an amount corresponding to the amount provided for in that section that the collection officer was unable to recover.

To obtain a refund under the first paragraph, a collection officer must

(a)  have reported to the Minister in accordance with the first or third paragraph of section 17.3, as the case may be, on the amount provided for in section 17.2 that the collection officer should have collected in respect of the sale of tobacco;

(b)  as the case may be, have paid under section 17.2 to a holder of a collection officer’s permit the amount provided for in that section in respect of tobacco that relates to the bad debt or have remitted that amount to the Minister under section 17.3;

(c)  have written off the bad debt in the collection officer’s books of account and produce to the Minister an application using the form prescribed within four years after the day on which the bad debt was written off; and

(d)  fulfil such other terms and conditions as may be determined by regulation.

A collection officer who has obtained an allowance pursuant to section 17.6 for the collection and remittance of the amount provided for in section 17.2 for which the collection officer has applied for a refund under the first paragraph must deduct the amount of the allowance from the amount of the refund applied for.

The Government may, by regulation, determine a method for establishing the amount of the refund to which the collection officer is entitled under the first paragraph or the amount of the allowance to be deducted under the third paragraph as well as the conditions and manner of use of each method.

2001, c. 51, s. 15.

17.13. For the purposes of the first paragraph of section 17.12, persons are not dealing at arm’s length with each other if the persons are described in any of sections 3 to 9 of the Act respecting the Québec sales tax (chapter T-0.1).

2001, c. 51, s. 15.

17.14. Every holder of a collection officer’s permit who recovers all or part of a bad debt in respect of which the collection officer obtained a refund under section 17.12 shall, on or before the last day of the month following the month in which all or part of the bad debt was recovered, make a report to the Minister, using the form prescribed by the Minister, on the amount equal to the tobacco tax computed using the method determined by regulation and shall remit that amount to the Minister at the same time.

2001, c. 51, s. 15.

18. With a view to assisting in the financing of the olympic installations, the Minister shall pay monthly into the special olympic fund established by the Act to establish a special olympic fund (1976, chapter 14), an amount determined by the formula

(A /B) x C.

For the purposes of this formula,

(a)  A is an amount equal to $0.00164, which shall be increased by $0.00065, on 1 April of each year from 1995, up to a maximum amount of $0.00817;

(b)  B is the amount of tax prescribed by this Act, on the first day of each month, in respect of a cigarette; and

(c)  C is the amount of tax collected under this Act during the preceding month.

The Government may, to the extent it determines, reduce any amount paid or to be paid under the first paragraph, to the extent of the net proceeds resulting from the disposition of immovable assets of the Régie des installations olympiques. Such reduction applies to any amount paid from 1 April preceding the day of the disposition and to any amount to be paid after that day.

1976, c. 21, s. 2; 1978, c. 31, s. 2; 1981, c. 24, s. 13; 1982, c. 56, s. 7; 1984, c. 35, s. 8; 1986, c. 15, s. 30; 1986, c. 72, s. 9; 1990, c. 60, s. 32; 1991, c. 67, s. 551; 1995, c. 1, s. 10.

19. (1)  For the purpose of carrying into effect the provisions of this Act according to their true intent or of supplying any deficiency therein, the Government may make such regulations, not inconsistent with this Act, as are considered necessary.

(2)  (Subsection repealed).

(3)  (Subsection repealed).

R. S. 1964, c. 72, s. 28; 1986, c. 17, s. 8.

20. Every regulation made under this Act comes into force on the date of its publication in the Gazette officielle du Québec or on any later date fixed therein.

Such a regulation may also, once published and where it so provides, take effect on a date prior to its publication but not prior to the date on which the legislative provision under which it is made takes effect.

R. S. 1964, c. 72, s. 29; 1979, c. 78, s. 7; 1986, c. 17, s. 9; 2001, c. 51, s. 16; 2001, c. 52, s. 1.

21. (This section ceased to have effect on 17 April 1987).

1982, c. 21, s. 1; U. K., 1982, c. 11, Sch. B, Part I, s. 33.

REPEAL SCHEDULE

In accordance with section 17 of the Act respecting the consolidation of the statutes (chapter R-3), chapter 72 of the Revised Statutes, 1964, in force on 31 December 1977, is repealed, except paragraph 6 of section 2, effective from the coming into force of chapter I-2 of the Revised Statutes.