i-2 - Tobacco Tax Act

À jour au 4 juin 2009

Ce document a valeur officielle.

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 and the regulations, 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 or raw tobacco;

“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 or raw tobacco is manufactured, stored, distributed, sold or traded and any place in Québec where tobacco is packaged;

“importer” means any person who brings or causes to be brought into Québec

(a)  tobacco for sale or delivery; or

(b)  raw tobacco for sale or delivery, or for the manufacture, production, mixing, preparation or packaging of tobacco intended for sale;

“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;

“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;

“raw tobacco” means tobacco leaves that have not been processed beyond the drying stage, fragments of such tobacco leaves and tobacco designed to enter into the composition of tobacco intended for sale;

“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 raw tobacco;

“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 or raw tobacco;

“taxable price” means the amount that corresponds to

(a)  the retail sale price of a cigar, if the person who sells the cigar by retail sale also imported or manufactured it; and

(b)  in any other case, the total of the purchase price of a cigar payable by the person who sells the cigar by retail sale and 20% of that purchase price;

“tobacco” means tobacco in any form in which tobacco is consumed, and includes snuff, but does not include raw tobacco;

“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;

“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; 2005, c. 1, s. 9; 2005, c. 29, s. 60; 2006, c. 36, s. 18; 2009, c. 15, s. 8.

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.

1995, c. 47, s. 4; 1999, c. 65, s. 5; 2005, c. 29, s. 61.

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.

In addition, a person already holding a registration certificate issued under Title I of the Act respecting the Québec sales tax shall, before engaging in the retail sale of tobacco in Québec, inform the Minister thereof by registered or certified mail and, at the same time, provide a declaration to the Minister containing the addresses of the establishments the person intends to operate or cause to be operated by a third person.

A person to whom this section applies 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; 2004, c. 4, s. 3.

§ 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 and, if the application is for a storer, importer or carrier permit, indicate whether such an establishment will be operated for raw tobacco;

(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; 2005, c. 1, s. 10.

6.1.1. The Minister may require from any person who sells, delivers or causes to be delivered cigars to a retail vendor, as a condition of issue or continuance in force of a collection officer’s permit referred to in section 6, security of a value, in a form and under terms determined by the Minister.

2009, c. 15, 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 or raw 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; 2005, c. 1, s. 11.

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 17.4.1, 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; 2006, c. 36, s. 19.

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.

7.0.1. No person may sell or deliver raw tobacco in Québec to a person who does not hold the appropriate permit provided for in section 6.

2005, c. 1, s. 12; 2009, c. 15, s. 10.

7.0.2. No person may purchase or take delivery of raw tobacco in Québec from a person who does not hold the appropriate permit provided for in section 6.

2009, c. 15, s. 11.

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.

7.1.1. No person may sell or offer to sell tobacco at retail for a price that is lower than the aggregate, in respect of the tobacco, of the excise duty applicable under the Excise Act, 2001 (Statutes of Canada, 2002, chapter 22), the tobacco tax applicable under this Act and the tax applicable under Part IX of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15) computed on the aggregate of the excise duty and the tobacco tax.

2006, c. 13, s. 16.

7.1.2. No manufacturer may manufacture, produce, mix, prepare or package tobacco intended for sale for a person who does not hold the appropriate permit provided for in section 6.

2009, c. 15, s. 12.

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 raw tobacco or 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 raw tobacco or the packages of tobacco transported. The person shall keep the manifest or way-bill or cause it to be kept in the vehicle used for such transportation.

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; 2005, c. 1, s. 13.

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

The storer, importer or carrier may be required, at the request of the Minister and on the form prescribed by the Minister, to report the quantities of raw tobacco or of packages of tobacco stored, brought into Québec, transported or delivered for the period determined by the Minister.

1991, c. 16, s. 2; 2005, c. 1, s. 14; 2009, c. 15, s. 13.

7.11. (Repealed).

1991, c. 16, s. 2; 2005, c. 29, s. 62.

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)  $0.103 per cigarette;

(b)  $0.103 per gram of any loose tobacco;

(b.1)  $0.103 per gram of any leaf tobacco;

(c)  80% of the taxable price of any cigar; and

(d)  $0.1585 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 $0.103 per tobacco stick, roll of tobacco or other pre-rolled tobacco product, the consumer tax shall be $0.103 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; 2003, c. 9, s. 7; 2004, c. 21, s. 35; 2009, c. 15, s. 14.

8.1. For the purpose of establishing the taxable price of a cigar, the Minister may set the purchase price of the cigar if the Minister considers that the purchase price is lower than a reasonable wholesale price or if the cigar is obtained without a purchase price.

2009, c. 15, s. 15.

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.

For the purposes of the first paragraph, in the case of cigars brought into Québec, the taxable price of a cigar is deemed to be equal to the value of the cigar within the meaning of section 17 of the Act respecting the Québec sales tax (chapter T-0.1).

R. S. 1964, c. 72, s. 9; 1980, c. 14, s. 21; 1981, c. 24, s. 9; 2009, c. 15, s. 16.

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 the individual or by another person at the expense of the individual otherwise than exclusively in the course of the individual’s 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 that Act, without reference to section 198.2 of that Act.

1993, c. 19, s. 11; 2003, c. 9, s. 8.

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.

9.2.1. No person may purchase tobacco at retail in Québec for a price that is lower than the aggregate, in respect of the tobacco, of the excise duty applicable under the Excise Act, 2001 (Statutes of Canada, 2002, chapter 22), the tobacco tax applicable under this Act and the tax applicable under Part IX of the Excise Tax Act (Revised Statutes of Canada, 1985, chapter E-15) computed on the aggregate of the excise duty and the tobacco tax.

2006, c. 13, s. 17.

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 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; 2009, c. 15, s. 17.

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, on or before the fifteenth 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; 2005, c. 38, s. 38.

12. (Repealed).

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

13. (Repealed).

R. S. 1964, c. 72, s. 13; 1996, c. 2, s. 692; 2005, c. 1, s. 15; 2006, c. 7, s. 4.

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.

13.1.1. A package of tobacco referred to in section 13.1 is deemed not to be identified in accordance with that section if it is counterfeit tobacco.

For the purposes of the first paragraph, “counterfeit tobacco” includes:

(a)  tobacco the package of which bears or on which is reproduced or imitated the trademark, trade name or any other distinguishing guise that can reasonably be associated with another tobacco product, without the authorization of the owner of the trademark, trade name or other distinguishing guise; and

(b)  tobacco the package of which bears the identification mark provided for in section 13.1 if the identification mark has not been affixed by a person holding a valid manufacturer’s or importer’s permit.

2006, c. 13, s. 18.

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 this Act if the tobacco had been sold by retail sale in Québec.

1986, c. 17, s. 5; 1991, c. 16, s. 8; 1994, c. 42, s. 2; 2004, c. 21, s. 36.

DIVISION III.1 EXAMINATION, INSPECTION AND SEIZURE

1986, c. 17, s. 5.

13.2.1. (Repealed).

1991, c. 16, s. 9; 1993, c. 79, s. 10; 2005, c. 29, s. 62.

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 there is reasonable grounds to believe that it contains raw tobacco or 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 40 or 40.1.0.1 of the Act respecting the Ministère du Revenu (chapter M-31), 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; 2005, c. 1, s. 16; 2009, c. 15, s. 18.

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 40 or 40.1.0.1 of the Act respecting the Ministère du Revenu (chapter M-31), 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; 2009, c. 15, s. 19.

13.4. (Repealed).

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; 2009, c. 15, s. 20.

13.4.1. (Repealed).

1991, c. 16, s. 12; 1993, c. 79, s. 14; 2009, c. 15, s. 20.

13.4.2. (Repealed).

1991, c. 16, s. 12; 1993, c. 79, s. 15; 2009, c. 15, s. 20.

13.4.3. (Repealed).

1991, c. 16, s. 12; 1993, c. 79, s. 16; 2009, c. 15, s. 20.

13.5. (Repealed).

1986, c. 17, s. 5; 1988, c. 21, s. 95; 1991, c. 16, s. 13; 1993, c. 79, s. 17; 2005, c. 1, s. 17; 2005, c. 29, s. 63; 2005, c. 38, s. 406; 2009, c. 15, s. 20.

13.5.1. (Repealed).

1993, c. 79, s. 18; 2009, c. 15, s. 20.

13.6. (Repealed).

1991, c. 16, s. 13; 1993, c. 79, s. 19; 2009, c. 15, s. 20.

13.7. (Repealed).

1991, c. 16, s. 13; 2009, c. 15, s. 20.

13.7.1. (Repealed).

1993, c. 79, s. 20; 2009, c. 15, s. 20.

13.8. (Repealed).

1991, c. 16, s. 13; 1993, c. 79, s. 21; 2009, c. 15, s. 20.

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

i.  to collect the tax provided for in section 8 at the time of a retail sale that is not made in contravention of section 7.1.1,

ii.  to render an account or remit the tax provided for in section 8, or

iii.  to collect, report or remit the amount provided for in section 17.2,

is guilty of an offence and is liable, for each day that the omission continues, to a fine of not less than $300 and, for a subsequent offence within five years, to a fine of not less than $1,000.

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; 2006, c. 13, s. 19.

14.1. Every person who

(a)  contravenes section 3, 6.2, 6.5, 7.1 or 17.10 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, or

(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,

(f)  (paragraph repealed),

is guilty of an offence and is liable to a fine of not less than $3,000 nor more than $37,500 and, for a subsequent offence within five years, to a fine of not less than $10,000 nor more than $125,000.

1986, c. 17, s. 6; 1991, c. 16, s. 14; 1999, c. 65, s. 17; 2005, c. 29, s. 64; 2006, c. 13, s. 20.

14.2. Every person who

(a)  contravenes section 6, 7, 7.0.1, 7.0.2, 7.1.1, 7.1.2 or 7.9,

(b)  sells, delivers or is in possession of 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 $3,000 and, where applicable, three times the tax that would have been payable under this Act, had the tobacco involved in the offence been sold by retail sale in Québec, and not more than $750,000.

The fine for a subsequent offence within five years is not less than the greater of $10,000 and, where applicable, three times the tax that would have been payable under this Act, had the tobacco involved in the offence been sold by retail sale in Québec, and not more than $2,500,000.

In addition to the fine provided for in the first and second paragraphs, the court may, despite article 231 of the Code of Penal Procedure (chapter C-25.1), condemn the person 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; 2003, c. 9, s. 9; 2005, c. 1, s. 18; 2006, c. 13, s. 21; 2009, c. 15, s. 21.

14.3. Every person who contravenes section 9.2 or 9.2.1 is guilty of an offence and is liable to a fine of not less than $300 nor more than $7,500 and, for a subsequent offence within five years, to a fine of not less than $1,000 nor more than $25,000.

2005, c. 38, s. 39; 2006, c. 13, s. 22.

15. Every person who contravenes the provisions of this Act or the regulations, otherwise than as described in sections 14, 14.1, 14.2 and 14.3, is guilty of an offence and is liable to a fine of not less than $300 nor more than $7,500 and, for a subsequent offence within five years, to a fine of not less than $1,000 nor more than $25,000.

R. S. 1964, c. 72, s. 18; 1980, c. 14, s. 24; 1986, c. 17, s. 6; 1993, c. 79, s. 23; 2005, c. 38, s. 40; 2006, c. 13, s. 23.

15.1. (Repealed).

1986, c. 17, s. 6; 1991, c. 16, s. 15; 1993, c. 79, s. 24; 2005, c. 1, s. 19; 2009, c. 15, s. 22.

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.

The requirement set out in the first paragraph does not apply in respect of

(a)  tobacco sold or delivered by a collection officer if the collection officer is exempted from that requirement under an agreement entered into under section 17;

(b)  tobacco in a package identified in accordance with section 13.1 if the delivery of the tobacco is made outside Québec for consumption outside Québec and is authorized under section 13.2; and

(c)  cigars sold or delivered to a holder of a collection officer’s permit.

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.

In addition, the holder of a collection officer’s permit who sells, delivers or causes to be delivered cigars to a retail vendor who does not hold a collection officer’s permit shall, for each sale or delivery, give the retail vendor an invoice or any other document containing the information determined by regulation, that the retail vendor must keep with the retail vendor’s other documents.

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; 2009, c. 15, s. 23.

17.3. The holder of a collection officer’s permit shall, on or before the fifteenth 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; 2005, c. 38, s. 41.

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, on or before the fifteenth day of each month, report to the Minister, using the form prescribed by the Minister,

(a)  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; and

(b)  in respect of each customer and by sale price, on the total quantity of cigars sold or delivered during the preceding month for the purpose of resale and, if applicable, on the amount equal to the tax collected or to be collected.

The report shall be made and sent to the Minister even if no package was bought, sold or handled during the month or no cigar was sold or delivered 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. However, that requirement does not apply in respect of the sales or deliveries of cigars.

In addition, every manufacturer shall, on or before the fifteenth 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; 2005, c. 38, s. 42; 2009, c. 15, s. 24.

17.6. (Repealed).

1991, c. 16, s. 21; 2004, c. 9, s. 1.

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 fifteenth 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; 2005, c. 38, s. 43.

18. (Repealed).

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; 2007, c. 27, s. 2.

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.