TOBACCO TAX REGULATIONwholesaler or importer, as the case may be, no longer carries on business in...

Province of A lberta

Office Consolidation

Alberta Regulation 273/1983

With amendments up to and including Alberta Regulation 225/2011

TOBACCO TAX ACT

TOBACCO TAX REGULATION

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Note

All persons making use of this consolidation are reminded that it has no legislative sanction, that amendments have been embodied for convenience of reference only. The official Statutes and Regulations should be consulted for all purposes of interpreting and applying the law.

(Consolidated up to 225/2011)

ALBERTA REGULATION 273/83

Tobacco Tax Act


Table of Contents

1 Interpretation 1.01 Background check 1.02 Required notices 1.1 Form of application 2 License must be displayed 3 Licence expiry 4 Change of name 5 Lost, destroyed or defaced licence 6 Licence must be returned 6.01 Disclosure of information 6.1 Records to be kept 7.1 Tax collector must submit return to Minister 7.2 Importing consumer must submit return to Minister 8 Failure by tax collector to remit tax 9 Failure by other person to remit tax 9.1 Simple interest 10 Refund of tax 12 Misrepresentation of material fact 12.2 Application to become exempt sale retailer or a duty free shop 12.3 Permit to possess tobacco 13 Tax-exempt sale 13.1 Completion of voucher 13.2 Application for ministerial identification card 13.21 Cancelled or invalid identification card 13.3 Refund in respect of tax-exempt sale 14 Terms and conditions in respect of tax collector appointment 14.01 Seizure of vehicle 14.02 Return of seized items 14.03 Unclaimed items 14.04 Application to Queen’s Bench 14.1 Application to mark tobacco 14.2 Marking of tobacco sold to consumers 14.3 Marking of tobacco provided to person without charge

Section 1 AR 273/83


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14.4 Marking of tobacco products 14.41 Discrepancy between package weight and actual weight 14.42 Transitionals 14.5 Marking of cartons 14.6 Marking of cases 14.7 Accounting system required 14.8 Mark-point 14.81 Information required by Minister 14.9 Production of tear tape 14.91 Records to be retained 15 Repeal

Interpretation 1(1) In this Regulation,

(a) “Act” means the Tobacco Tax Act;

(a.1) “Alberta stamp” means an excise stamp, as defined in the Excise Act, 2001 (Canada), that is approved by the Minister in agreement with the Canada Revenue Agency to mark packages of tobacco products sold in Alberta to a consumer other than a person referred to in section 13(2.1);

(b) “background check” means, in respect of a person, an inquiry, investigation or record check based on the collection of information, including personal information, from the person and any relevant third party sources, and includes, but is not limited to, an inquiry or investigation relating to the honesty and integrity, financial history and competence of the person;

(c) “carton” means a container in which one or more packages of cigarettes or tobacco sticks are packed;

(d) “case” means a container for the shipping of packages or cartons;

(e) “collection period” means,

(i) in the case of a wholesaler who is not a manufacturer, a calendar month, and

(ii) in the case of any other tax collector, a period approved by the Minister;

(f) “duty free shop” means a duty free shop as defined in the Excise Tax Act (Canada);

Section 1 AR 273/83


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(g) “mark-point” means a location authorized by the Minister for the purposes of marking packages, cartons or cases;

(h) “raw leaf tobacco” means unmanufactured tobacco or the leaves and stems of the tobacco plant;

(i) “seizure costs” means all the costs related to the seizure, removal, transportation and storage, or of any one or more of those functions, of items seized under section 24 or 24.1 of the Act.

(2) In the Act and this Regulation,

(a) “calendar week” means the 7-day period beginning on Monday and ending on Sunday;

(b) “cigar” means a roll or tubular construction intended for smoking that consists of

(i) a filler composed of natural tobacco, reconstituted tobacco or natural and reconstituted tobacco, and

(ii) a wrapper, or binder and wrapper, composed of natural tobacco, reconstituted tobacco or natural and reconstituted tobacco in which the filler is wrapped, and

may include a mouthpiece (tip) or filter;

(c) “cigarette” includes any roll or tubular construction of tobacco intended for smoking, other than a cigar or a tobacco stick, and where any cigarette exceeds 102 mm in length, each 76 mm or less of the cigarette shall be considered to be a separate cigarette;

(d) “exempt sale retailer” means a retailer who is registered under the Act to sell tobacco to consumers who are exempt from tax under the Act or under an Act of Parliament;

(e) “fine cut tobacco” means loose tobacco that has been refined to the point where it is ready to be formed into a cigarette or tobacco stick;

(f) “identification card” means

(i) a card issued under the Indian Act (Canada) indicating that the holder is an Indian, if the Minister has agreed with the issuer of the card to accept the card for the purposes of the Act and this Regulation, or

Section 1.01 AR 273/83


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(ii) a ministerial identification card issued by the Minister under section 13.2;

(g) “Indian” means an Indian as defined in the Indian Act (Canada);

(h) “Indian band” means a band as defined in the Indian Act (Canada);

(i) “manufacture”, in respect of tobacco, includes any step in the processing of raw leaf tobacco, including packing, stemming, reconstituting, converting or packaging;

(j) “manufactured tobacco” means tobacco, other than cigars or packaged raw leaf tobacco, that is manufactured;

(j.1) “marking permit holder” means a person who holds a permit issued under section 14.1;

(k) “package” means a container in which fine cut tobacco, tobacco sticks or cigarettes, which are not already in a container, are packed;

(l) “reserve” means a reserve as defined in the Indian Act (Canada);

(m) “tear tape” means the band of ribbon that is used to tear open the wrapping that encloses a package;

(n) “tobacco stick” means any roll or tubular construction of tobacco intended for smoking, other than a cigar, that requires further preparation to be consumed, and where any tobacco stick exceeds 90 mm in length or 800 mg, each 60 mm or less or each 650 mg or less, respectively, of the tobacco stick shall be considered to be a separate tobacco stick.

(3) For the purpose of the definition of cigar, “reconstituted tobacco” means a product that is comprised of 50% or more tobacco.

(4) For the purposes of sections 14.1, 14.2 and 14.4, tobacco products do not include cigarettes contained in a 200-cigarette package.

AR 115/89 s2;27/92;194/94;157/99;233/2003; 223/2004;74/2008;201/2010;225/2011

Background check 1.01 When a person is applying for a wholesaler’s or importer’s licence, a tear tape licence, a marking permit, registration as an exempt sale retailer or duty free shop or an appointment as a tax



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collector, the Minister, or an officer authorized by the Minister to act under this section, may conduct a background check on any one or more of the following persons that the Minister considers necessary to determine the applicant’s eligibility for a licence, permit, registration or appointment:

(a) the applicant;

(b) a director, officer, employee or contractor of the applicant;

(c) a person not dealing at arm’s length with the applicant. AR 201/2010 s3

Required notices 1.02 A tax collector, licensed importer, licensed wholesaler, exempt sale retailer, duty free shop, marking permit holder or tear tape producer shall immediately notify the Minister in writing if

(a) the person is the subject of proceedings relating to bankruptcy, insolvency or receivership,

(b) in the case of a corporation, the corporation

(i) amalgamates with another corporation,

(ii) is wound up, liquidated or dissolved, or

(iii) is subject to any proceedings under the Companies’ Creditors Arrangement Act (Canada),

(c) in the case of a partnership, there is a change in the partners of the partnership,

(d) there is a sale, assignment or transfer of that part of the business under which the activities authorized by a licence, registration, permit or appointment under the Act are carried out, and the sale, assignment or transfer results in a change in control of the business,

(e) there is a substantial change in the core management group or operations of that part of the business for which the person has been issued a licence, permit, registration or appointment, or

(f) the person ceases to carry out that part of the business for which that person has been issued a licence, permit, registration or appointment.

AR 201/2010 s3



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Form of application 1.1(1) An application for a wholesaler’s or importer’s licence or for a renewal of a wholesaler’s or importer’s licence shall be in the form provided by the Minister.

(2) If the Minister is satisfied with the application and any background check conducted, the Minister shall issue a wholesaler’s or importer’s licence to the applicant.

AR 273/83 s1;115/89;194/94;201/2010

Licence must be displayed 2(1) Every wholesaler and importer shall display his licence, prominently at each of his places of business.

(2) If a wholesaler or importer has no place of business in Alberta, he shall keep his licence with him at all times while doing business in Alberta and shall produce it on request to any officer and on request to any wholesaler, importer, retailer or consumer with whom he transacts business.

AR 273/83 s2;194/94

Licence expiry 3(1) A wholesaler’s or importer’s licence expires when the wholesaler or importer, as the case may be, no longer carries on business in Alberta as a wholesaler or importer.

(2) This section applies to licences issued before or after this section comes into force.

AR 273/83 s3;48/98

Change of name 4 A wholesaler or importer who changes the name under which he is carrying on business or the address of any place of business or who expands his business to a new place of business shall immediately notify the Minister in writing of the change.

AR 273/83 s4;194/94

Lost, destroyed or defaced licence 5 If a wholesaler’s or importer’s licence has been lost, destroyed or defaced, the wholesaler or importer shall immediately advise the Minister of the loss, destruction or defacement and the Minister may issue a copy of the licence.

AR 273/83 s5;194/94

Section 6 AR 273/83


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Licence must be returned 6 A wholesaler or importer who ceases to be a wholesaler or importer shall immediately return his licence to the Minister.

AR 273/83 s6;194/94

Disclosure of information 6.01(1) For the purposes of section 32(4) of the Act, the Minister may disclose to a tax collector, importer, manufacturer, wholesaler, retailer, duty free shop, marking permit holder or tear tape producer information about

(a) another tax collector, importer, manufacturer, wholesaler, retailer, duty free shop, marking permit holder or tear tape producer who is licensed, registered, appointed or holds a permit under the Act,

(b) a person referred to in clause (a) whose licence, registration, appointment or permit has been suspended or cancelled,

(c) a consumer who is exempt under section 13(2.1), or

(d) a consumer referred to in clause (c) whose identification card has been cancelled or declared to be invalid.

(2) For the purposes of section 32(4) of the Act, the Minister may disclose to a duly authorized employee or agent of the Government of Alberta or an officer any information required to conduct an inspection, investigation, audit or examination under the Act or this Regulation.

(3) For the purposes of section 32(5) of the Act, the Minister may publish the information described in that subsection in paper form or by electronic means.

(4) For the purposes of section 32(5) of the Act, the prescribed information is

(a) the type of licence, registration, permit or appointment the person holds or has been issued,

(b) the effective date of the licence, registration, permit or appointment,

(c) if a licence, registration, permit or appointment has been cancelled or suspended, the end date of the licence, registration, permit or appointment,

(d) the person’s operating name, if different from the person’s legal name, and



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(e) the person’s business contact information.

(5) The information described in subsection (4) and section 32(5) of the Act may be published from the effective date of a licence, registration, permit or appointment until one year after the licence, registration, permit or appointment has been cancelled or suspended.

AR 74/2008 s3

Records to be kept 6.1 Every wholesaler, importer and retailer must keep records and books of account in a form and containing information that will readily enable the Minister to make an accurate determination

(a) of taxes collected or to be collected for the purposes of the Act,

(b) of transactions in tobacco that is black stock,

(c) of transactions in tobacco marked for tax-paid sale in Alberta, and

(d) of transactions in tobacco not marked for tax-paid sale in Alberta, other than black stock.

AR 157/99 s3;233/2003

7 Repealed AR 194/94 s5.

Tax collector must submit return to Minister 7.1(1) A tax collector must, in respect of each collection period,

(a) submit to the Minister a return in the form provided by the Minister, and

(b) remit the amount of the tax required to have been collected by the tax collector as computed in the return.

(2) The return and the tax collected must be received by the Minister on or before the 28th day after the end of the collection period.

(3) The Minister may require a tax collector to furnish a surety bond, bank guarantee or evidence of other financial arrangements satisfactory to the Minister in an amount satisfactory to the Minister but not exceeding an amount equal to 3 times the amount of the estimated tax that would be collected by the tax collector for each collection period.

AR 157/99 s4



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Importing consumer must submit return to Minister 7.2(1) An importing consumer who is required to pay tax in accordance with section 3(1.03) of the Act must

(a) submit to the Minister a return in the form provided by the Minister, and

(b) remit the amount of tax payable.

(2) The return and tax must be received by the Minister on or before the 10th day after the day the tobacco was acquired or received in Alberta.

AR 233/2003 s4

Failure by tax collector to remit tax 8 If a tax collector fails to remit all or any portion of the amount of tax required to have been collected by him and remitted to the Minister at the time prescribed by the Minister, interest accrues on the unremitted amount at the rate prescribed in section 9.1 from the day the amount was to have been remitted until the day it is remitted.

AR 273/83 s8;398/86;194/94

Failure by other person to remit tax 9(1) If a person who is not a tax collector, but who is required to remit tax to the Minister, fails to remit all or any portion of the tax that he has collected, interest accrues on the unremitted amount at the rate prescribed in section 9.1 from the day the amount was to have been remitted until the day it is remitted.

(2) If a person is assessed a penalty under section 6.1, 33, 35 or 38 of the Act, interest accrues on any unpaid portion of the assessed amount from the date of mailing of the notice of assessment until the day the assessed amount is paid in full.

AR 273/83 s9;438/83;398/86;15/91;194/94;251/2001;74/2008;201/2010

Simple interest 9.1 For the purposes of section 34 of the Act and sections 8 and 9 of this Regulation, interest that is payable is simple interest at the rate prescribed for the purposes of section 39 of the Alberta Corporate Tax Act.

AR 398/86 s4;48/98;157/99;251/2001

Refund of tax 10(1) The Minister may, on receipt of an application in the form provided by the Minister, pay a refund of tax

Section 10 AR 273/83


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(a) that was remitted in respect of tobacco that was stolen or destroyed prior to being sold to a consumer, or

(b) that was remitted by a wholesaler in respect of sales made to a wholesaler or retailer on credit, where all or a portion of the amount of the debt in respect of the sale becomes uncollectible.

(2) The applicant must notify the Minister of the loss within 30 days of the date the applicant first becomes aware of it.

(3) An application for a refund must be accompanied by sales invoices, ledgers and any other records, documents and evidence required

(a) to prove the claim, and

(b) to determine the amount of tax that was remitted, and the amount of tax to be refunded.

(4) An application for a refund must be received by the Minister,

(a) in the case of a refund referred to in subsection (1)(a), within one year after the date the theft or destruction was discovered by the applicant, and

(b) in the case of a refund referred to in subsection (1)(b), within 90 days of the earlier of

(i) the date that a Notice of Bankruptcy or a notice of the appointment of a receiver is received by the applicant, and

(ii) the date that the applicant identifies the debt as an amount to be claimed as an uncollectible debt for income tax purposes.

(5) For the purposes of this section, a debt is not an uncollectible debt unless the applicant

(a) has exhausted all efforts to collect the debt that would reasonably be expected to be made by a creditor who is dealing at arm’s length with a debtor, and

(b) in the case of a bankruptcy or receivership, has filed a claim with the trustee or receiver that includes the amount of the tax owing shown separately.

(5.1) For the purposes of subsection (5)(a), an applicant has not exhausted all efforts to collect the debt if the applicant continues to sell tobacco on credit to the person after the applicant has



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established that the debt owing by that person has become uncollectible.

(6) The amount of refund that the Minister may pay in respect of a refund referred to in subsection (1)(b) is to be calculated in accordance with the following formula:

Amount of Refund = A x C B

where

A is the amount of the uncollectible debt at the time of the application;

B is the original amount of the debt at the time of the sale;

C is the amount of tax that was remitted relating to the sale.

(7) If an applicant receives a refund of tax in respect of an uncollectible debt, but manages to collect full or partial payment of the debt, the applicant shall pay back to the Minister that portion of the refund related to the amount of the debt so collected calculated in accordance with the following formula:

Portion of Refund = A X C B

where

A is the amount of debt collected;

B is the amount of uncollectible debt at the time of the application for refund;

C is the amount of the refund received under this section.

(8) When a refund is paid under this section, the Minister is subrogated to the rights of the applicant to recover that amount from the debtor.

AR 273/83 s10;28/85;194/94;48/98;223/2004;74/2008

11 Repealed AR 48/98 s4.



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Misrepresentation of material fact 12(1) If, in the opinion of the Minister, a tax collector or retailer has misrepresented a material fact, his application for refund under section 10 shall be disallowed and no refund shall be made.

(2) If an application for a refund does not comply with section 10(2), the Minister may pay the refund if, in his opinion, the deficiency in the application does not prevent the Minister from collecting the tax from another person.

AR 273/83 s12;226/88;15/91;194/94;48/98;201/2010

12.1 Repealed AR 223/2004 s4.

Application to become exempt sale retailer or a duty free shop 12.2(1) A person who wishes to become registered as an exempt sale retailer or a duty free shop must apply to the Minister in a form provided by the Minister in respect of each location in which the person intends to make tax-exempt sales.

(2) A person registered under this section is subject to the terms and conditions imposed, from time to time, by the Minister.

(3) No person shall sell tobacco without collecting the tax imposed by the Act unless the Minister has acknowledged the registration of the person as an exempt sale retailer or a duty free shop.

(4) The Minister may refuse to register a person as an exempt sale retailer or duty free shop if the Minister is satisfied that the person, or a director, officer, employee or contractor of the person, or someone not dealing at arm’s length with the person,

(a) has contravened

(i) the Act or the regulations made under the Act,

(ii) any term or condition imposed under subsection (2),

(iii) any other Act or regulation of Alberta that imposes any tax, or

(iv) a law in force in another jurisdiction that governs the sale of tobacco or levying of a tax on tobacco in that jurisdiction,

(b) has not acted or may not act in accordance with the law, with honesty and integrity or in the public interest, having regard to the past conduct of the person,

(c) would be a detriment to the integrity of the lawful tobacco industry in Alberta, or



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(d) would be a detriment to the lawful manufacture, import, purchase, sale or possession of tobacco under the Act.

(5) The Minister may cancel or suspend the registration of an exempt sale retailer or a duty free shop if the Minister is satisfied that

(a) the exempt sale retailer or duty free shop, or a director, officer, employee or contractor of the exempt sale retailer or duty free shop, or someone not dealing at arm’s length with the exempt sale retailer or duty free shop

(i) has contravened

(A) the Act or the regulations made under the Act,

(B) any term or condition imposed under subsection (2),

(C) any other Act or regulation of Alberta that imposes any tax, or

(D) a law in force in another jurisdiction that governs the sale of tobacco or levying of a tax on tobacco in that jurisdiction,

(ii) has not acted in accordance with the law or with honesty or integrity or in the public interest,

(iii) is a detriment to the integrity of the lawful tobacco industry in Alberta,

(iv) is a detriment to the lawful manufacture, import, purchase, sale or possession of tobacco under the Act,

or

(b) access to the business premises of the exempt sale retailer or duty free shop, or the location at which tax-exempt sales are made by the exempt sale retailer or duty free shop, is denied or impeded by any person.

AR 194/94 s10;48/98;157/99;233/2003;201/2010

Permit to possess tobacco 12.3(1) For the purposes of section 4.1 of the Act, the Minister may, on application, issue a permit.

(2) A permit is subject to the terms and conditions set out in the permit.



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(3) The Minister may refuse to issue a permit to a person

(a) who has contravened the Act or the regulations made under the Act,

(b) who has contravened any other Act or regulation of Alberta that imposes any tax,

(c) who has failed to comply with the terms or conditions of a previous permit, or

(d) if the Minister has reason to believe that the tobacco in respect of which the application is made will be dealt with other than in accordance with the Act or the regulations or a term or condition of the permit.

(4) The Minister may, by serving a notice in writing on the permit holder, cancel a permit for any cause for which the Minister could refuse to issue a permit under subsection (3).

(5) For the purposes of this section, a voucher or electronic record created pursuant to section 13.1 is deemed to be a permit issued under subsection (1).

(6) For the purposes of this section, a receipt issued by a duty free shop is deemed to be a permit issued under subsection (1).

AR 233/2003 s6;223/2004;225/2011

Tax-exempt sale 13(1) For the purposes of this section and sections 13.1 and 13.3, “tax-exempt sale” means a sale of tobacco to a person without collecting the tax in accordance with section 3(3) of the Act.

(1.1) In the case of a tax-exempt sale by an exempt sale retailer, only black stock may be sold.

(2) An exempt sale retailer may make tax-exempt sales only to persons referred to in subsection (2.1)(a) to (c).

(2.01) In the case of a tax-exempt sale by a duty free shop, only black stock may be sold.

(2.02) A duty free shop may make tax-exempt sales only to persons referred to in subsection (2.1)(d).

(2.1) Notwithstanding section 3 of the Act, the following are exempt from the payment of tax:

(a) the Government of Canada, if the seller obtains from the purchaser certification that the purchase is for the use of the Government of Canada;



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(b) a member of the Diplomatic Corps eligible for inclusion in the Diplomatic Consular and other Representatives in Canada, as published by the Government of Canada, and the armed forces of other countries stationed in Canada, where the tobacco is for consumption by the purchaser or by others at the purchaser’s expense;

(c) an Indian or Indian band only if

(i) the purchaser presents to the exempt sale retailer at the time of purchase, a valid identification card,

(ii) it is reasonable to believe that the tobacco is not being purchased for resale or for export to another jurisdiction, and

(iii) the sale is made

(A) on a reserve,

(B) on the settlement known as the Garden River Settlement, located in the south-west corner of Wood Buffalo National Park, if the sale is made between September 10, 1997 and September 9, 1998 or such later date as the Minister determines, or

(C) on the land legally described as Plan 0322267, Block 1, Lot 1, excepting thereout all mines and minerals, as long as that land is owned by Heart Lake Natural Resource Development Incorporated on behalf of the Heart Lake First Nation and if the sale is made before March 1, 2007, or such later date as the Minister determines;

(d) persons who are about to leave Canada when the purchase is made at the duty free shop.

AR 273/83 s13;15/91;27/92;194/94;48/98;157/99;251/2001; 233/2003;223/2004;29/2006;225/2011

Completion of voucher 13.1(1) The Minister may require an exempt sale retailer to complete a voucher for some or all of the tax-exempt sales made by an exempt sale retailer, and may determine the information that is to be contained in the voucher.

(2) The Minister may require an exempt sale retailer to complete and maintain records in electronic form instead of vouchers, and may determine the nature and form of the records to be maintained.



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(3) An exempt sale retailer shall not make a tax-exempt sale unless the retailer has complied with subsection (1) or (2), as the case requires.

AR 27/92 s4;194/94;48/98

Application for ministerial identification card 13.2(1) After receipt of an application on a form provided by the Minister, the Minister shall issue a ministerial identification card to an Indian if the Minister is satisfied that the Indian is 16 years of age or older.

(2) After receipt of an application on a form provided by the Minister, the Minister shall issue a ministerial identification card to an Indian band, if all or part of the reserve of the Indian band is located in Alberta or the Indian band has an office in Alberta.

(3) A ministerial identification card expires on the date specified on the card.

(3.1) No individual who has been issued a ministerial identification card shall sell or give that card to another person or permit another person to use the card for the purposes of section 13(2.1)(c)(i).

(3.2) Subject to subsection (3.3), no person shall possess a ministerial identification card that has been issued or is in the name of another person.

(3.3) No Indian band who has been issued a ministerial identification card shall sell or give the card to another person or permit another person to use the card for the purposes of section 13(2.1)(c)(i), unless

(a) the person is an authorized representative of the Indian band,

(b) the person is using the ministerial identification card to purchase tobacco for and on behalf of the Indian band, and

(c) the person and the Indian band comply with any conditions placed on the ministerial identification card by the Minister.

(4) For the reasons set out in subsection (5), the Minister may,

(a) in the case of a ministerial identification card, cancel the identification card, and



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(b) in the case of an identification card referred to in section 1(g.1)(i), declare the identification card to be invalid for the purposes of the Act and this Regulation.

(5) For the purposes of subsection (4), the reasons are as follows:

(a) in the case of a ministerial identification card, the Minister is satisfied that the holder of the card does not meet the requirements of subsection (1) or (2), as the case may be;

(b) the holder of the identification card has not paid an amount assessed under the Act, the Fuel Tax Act or the Tourism Levy Act;

(c) the identification card has been lost, stolen or destroyed;

(d) the identification card is unusable due to damage;

(e) the Minister believes that the ministerial identification card has been sold to, or is in the possession of, or being used by, a person other than the person to whom it was issued or an authorized person pursuant to subsection (3.3).

(6) Where the Minister has cancelled a ministerial identification card or has declared an identification card referred to in section 1(g.1)(i) to be invalid, the Minister shall notify exempt sale retailers that the identification card has been cancelled or has been declared to be invalid, as the case may be.

(7) If a ministerial identification card has been cancelled for the reason referred to in subsection (5)(b), and the assessment has been paid, the Minister shall, after receiving an application in the form provided by the Minister, issue a replacement card.

(8) If the Minister has declared that an identification card referred to in section 1(g.1)(i) is invalid for the reason referred to in subsection (5)(b), and the assessment is paid, the Minister shall notify exempt sale retailers that the identification card is again valid.

(9) If a ministerial identification card has been cancelled for a reason referred to in subsection (5)(c) or (d), the Minister shall, after receiving an application in the form provided by the Minister, issue a replacement card.

(10) If a ministerial identification card has been cancelled for the reason referred to in subsection (5)(e), and the Indian or Indian band, as the case may be, satisfies the Minister that the identification card has not been sold or is not in the possession of or being used by someone other than the person to whom it was

Section 13.21 AR 273/83


18

issued or an authorized person under subsection (3.3), the Minister shall issue a replacement card.

AR 27/92 s4;194/94;48/98;157/99;74/2008;201/2010

Cancelled or invalid identification card 13.21(1) Where a ministerial identification card issued under section 13.2 has been cancelled or the Minister has declared that an identification card referred to in section 1(1)(g.1)(i) is invalid for the reason referred to in section 13.2(5)(b), the Minister may, after receiving an application in the form provided by the Minister, credit against the amount of the assessment owing, the amount of taxes paid under the Act or the Fuel Tax Act, or levies paid under the Tourism Levy Act, on any subsequent purchase of tobacco, fuel or accommodation, as the case may be.

(2) A credit under subsection (1) may only be given if

(a) the tobacco is purchased from an exempt sale retailer under the Act, the fuel is purchased from an exempt-sale vendor under the Fuel Tax Act, or the accommodations are provided on a reserve, as the case may be, and

(b) the sale of the tobacco, fuel or accommodation would otherwise have been a tax-exempt sale except for the fact that the person’s identification card had been cancelled or declared invalid.

(3) If the amount of a credit exceeds the amount of assessment owing, the Minister shall refund any excess amount of tax paid to the person who paid the tax.

AR 157/99 s9;74/2008

Refund in respect of tax-exempt sales 13.3(1) The Minister may pay to an exempt sale retailer a refund of an amount of tax the exempt sale retailer has remitted on tax-exempt sales.

(2) An application for a refund shall be made in a form and manner determined by the Minister and shall be accompanied by any information required by the Minister.

(3) An application for a refund under this section shall be

(a) made every calendar week using electronic means of a type or class specified by the Minister in accordance with instructions specified by the Minister, and



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(b) received by the Minister not later than 3 years from the end of the calendar year in which the tax-exempt sale occurred.

(3.1) Notwithstanding subsection (3)(a), the Minister may accept an application for a refund that is in a paper form authorized by the Minister.

(4) The Minister shall, as soon as possible, review the application for refund.

(4.1) The Minister may require an exempt sale retailer to provide proof that the exempt sale retailer has paid for the tobacco before paying a tax refund to the retailer in respect of that tobacco.

(5) If the Minister refuses to refund all or a portion of an amount claimed under this section, the Minister shall cause to be given to the exempt sale retailer a notice of disallowance specifying the amount that the Minister will not refund, and the reasons for the refusal.

AR 27/92 s4;194/94;48/98;74/2008;201/2010

Terms and conditions in respect of tax collector appointment 14 Terms and conditions in respect of the appointment of a tax collector for the purposes of section 5 of the Act include

(a) that the person is a licensed wholesaler or licensed importer, and

(b) that the person enters into a tax collector’s agreement with the Minister.

AR 273/83 s14;15/91;194/94;251/2001;201/2010

Seizure of vehicle 14.01(1) In this section and sections 14.02 and 14.03, “owner”, in respect of a vehicle, means the owner as shown in the records of the Registrar under the Traffic Safety Act.

(2) Where a vehicle, including any goods being carried by a vehicle, is seized under the Act, the seizure costs are a lien on the vehicle.

(3) Seizure costs payable with respect to a seized vehicle are a debt owing to the Crown by the owner of the vehicle.

(4) Where

(a) a vehicle has been seized under section 24 or 24.1 of the Act,

Section 14.02 AR 273/83


20

(b) the person who had possession of the vehicle at the time of the seizure was not the owner of the vehicle, and

(c) the owner of the vehicle incurs seizure costs as a result of the seizure,

the owner of the vehicle may claim the seizure costs against the person who was in possession of the vehicle at the time of the seizure.

(5) Subject to subsection (6), for the purposes of sections 24(7)(a), 24(8)(c), 24.1(3)(a) and 24.1(4)(c) of the Act, the person from whom the vehicle was seized, or, if that person is not the owner, the owner, must pay to the Minister the seizure costs associated with the vehicle to be returned.

(6) An officer or a judge, as the case may be, may waive all or a portion of the seizure costs if the officer or judge is satisfied that injustice or great hardship is likely to result from the payment of the seizure costs.

(7) Where the officer or a judge waives all or a portion of the seizure costs, those costs are payable by the Crown.

AR 201/2010 s11

Return of seized items 14.02(1) For the purposes of sections 24(7)(a), 24(8)(c), 24.1(3)(a) and 24.1(4)(c) of the Act, if an item seized is not tobacco or a vehicle, the person from whom the item was seized, or if that person is not the owner, the owner, must pay to the Minister the seizure costs associated with the item to be returned.

(2) An officer or a judge, as the case may be, may waive all or a portion of the seizure costs if the officer or judge is satisfied that injustice or great hardship is likely to result from the payment of the seizure costs.

(3) Where the officer or a judge waives all or a portion of the seizure costs, those costs are payable by the Crown.

(4) For the purposes of sections 24(7)(a), 24(8)(c), 24.1(3)(a) and 24.1(4)(c) of the Act, if the item seized is tobacco, it must not be returned to the person from whom it was seized or any other person unless it was seized in error.

AR 201/2010 s11

Unclaimed items 14.03(1) When an item seized is to be returned to the person from whom it was seized pursuant to section 24(7)(a) or 24.1(3)(a) of the

Section 14.04 AR 273/83


21

Act, the officer must send a notice to the person, or, in relation to a vehicle, if that person is not the owner, the owner, by personal service or registered mail.

(2) If the person or the owner, as the case may be, does not pay the seizure costs and reclaim the seized item within 15 days of receipt of a notice under subsection (1), the item is deemed abandoned.

(3) When an item is deemed abandoned under subsection (2), an officer must send a notice of abandonment to the person or the owner, as the case may be, by personal service or registered mail.

(4) If the person or the owner does not pay the seizure costs and reclaim the seized item within 15 days of receipt of the notice of abandonment, the item is forfeited to the Crown.

(5) A notice issued under this section must include the following information:

(a) the name and address of the person;

(b) the date and time the notice is issued;

(c) the location at which the item may be reclaimed and the contact information for the storage area;

(d) a statement to the effect that the person or owner is liable for the seizure costs;

(e) a statement to the effect that the item will be deemed abandoned or forfeited to the Crown unless the seizure costs are paid and the item is reclaimed from the location within the time specified.

(6) If the item seized is a vehicle, unless the service of the notice is made personally, the notice must be sent by registered mail to the latest address of the owner as shown in the records of the Registrar under the Traffic Safety Act.

AR 201/2010 s11

Application to Queen’s Bench 14.04 For the purposes of sections 24(7)(b) and 24.1(3)(b) of the Act, the circumstance in which the officer must make the application to the Court of Queen’s Bench is when the officer believes that the value of the thing seized is more than $25 000.

AR 201/2010 s11

Application to mark tobacco 14.1(1) The Minister may, on application, issue a permit to any person to mark tobacco at a mark-point.



22

(2) The permit may contain any conditions or restrictions that the Minister considers necessary.

(3) A marking permit holder shall not mark packages, cartons or cases anywhere other than at a mark-point.

(4) A marking permit holder shall obtain, in accordance with the procedures set out in the Excise Act, 2001 (Canada), Alberta stamps for marking packages of tobacco products.

AR 194/94 s14;48/98;223/2004;225/2011

Marking of tobacco sold to consumers 14.2 Each package, carton and case containing tobacco products to be sold in Alberta to a consumer other than a person referred to in section 13(2.1) must be marked in accordance with sections 14.4, 14.5 and 14.6, as the case may be.

AR 194/94 s14;48/98;157/99;223/2004;225/2011

Marking of tobacco provided to person without charge 14.3 Each package, carton and case that a retailer provides to a person in Alberta without charge, or for no consideration, must be marked in accordance with sections 14.4, 14.5 and 14.6, as the case may be.

AR 194/94 s14

Marking of tobacco products 14.4 For the purposes of sections 14.2 and 14.3, each package of a tobacco product that is manufactured in Canada, or that is imported into Canada for sale in Alberta, must be marked by a marking permit holder with one of the following Alberta stamps:

(a) cigarettes - 20 units;

(b) cigarettes - 25 units;

(c) tobacco - 50 grams;

(d) tobacco - 100 grams;

(e) tobacco - 150 grams;

(f) tobacco - 200 grams;

(g) tobacco - 250 grams;

(h) tobacco - 400 grams. AR 194/94 s14;48/98;157/99;233/2003;223/2004;

225/2011

Section 14.41 AR 273/83


23

Discrepancy between package weight and actual weight 14.41 Where the actual weight of tobacco in a package is different from the weight of tobacco indicated by the Alberta stamp, the actual weight of tobacco in the package must be used in the computation of tax payable under section 3 of the Act.

AR 225/2011 s7

Transitionals 14.42(1) In this section, “former regulation” means the Tobacco Tax Regulation (AR 273/83) as it read immediately before the coming into force of this section.

(2) Despite anything to the contrary in this Regulation, from April 1, 2012 to September 30, 2012, tobacco products may be marked

(a) in accordance with the former regulation,

(b) in accordance with this Regulation, or

(c) in accordance with both the former regulation and this Regulation.

(3) If tobacco products are marked in the manner described in subsection (2)(a), the rules applicable under the former regulation apply in respect of the tobacco products.

(4) If tobacco products are marked in the manner described in subsection (2)(b), the rules applicable under this Regulation apply in respect of the tobacco products.

(5) If tobacco products are marked in the manner described in subsection (2)(c),

(a) the rules applicable under the former regulation apply in respect of the tobacco products marked in accordance with the former regulation, and

(b) the rules applicable under this Regulation apply in respect of the tobacco products marked in accordance with this Regulation.

AR 225/2011 s7

Marking of cartons 14.5 For the purposes of sections 14.2 and 14.3, each carton must have affixed or imprinted by a marking permit holder, as the case may be, on each end sticker that seals the end flaps of the carton or, if the carton is a cardboard box, at each end of the box, a rectangle



24

(a) at least 2.9 centimetres wide and at least 1.4 centimetres high,

(b) surrounded by a border 1.5 points thick in process black, 100%, and

(c) bearing the inscription “ALBERTA” in process black, 100% on a background in “Pantone Red 485”, 100% in “Helvetica 10 point” type and in uppercase letters.

AR 194/94 s14;48/98;157/99

Marking of cases 14.6(1) For the purposes of sections 14.2 and 14.3, each case must be marked by a marking permit holder with the inscription “ALBERTA”.

(2) The mark must be placed on the top of any 2 opposite face sides of the case and the inscription must be in process black, 100% and in uppercase letters at least 38.1 millimetres high.

AR 194/94 s14;48/98;157/99

Accounting system required 14.7(1) Every manufacturer and wholesaler shall in respect of packages, cartons and cases shipped to, stored in or sold or intended for sale in Alberta by the manufacturer or wholesaler establish and maintain an accounting system satisfactory to the Minister that provides an accounting of

(a) the number of packages, cartons and cases that are marked in accordance with sections 14.4, 14.5 and 14.6,

(b) the number of packages, cartons or cases shipped to Alberta that are black stock, and

(c) the number of packages, cartons and cases that are not marked for tax-paid sale in Alberta, other than black stock.

(2) The accounting required by subsection (1) must be made in the form and manner specified by the Minister and at the times specified by the Minister.

AR 194/94 s14;157/99;223/2004

Mark-point 14.8(1) A manufacturer shall not store in Alberta packages, cartons or cases that bear the mark of another jurisdiction, except a mark-point.

Section 14.81 AR 273/83


25

(2) A person shall not mark packages, cartons or cases other than at a mark-point.

AR 194/94 s14;157/99;223/2004;225/2011

Information required by Minister 14.81 The Minister may require information that must be shown on any package containing tobacco.

AR 233/2003 s9

Production of tear tape 14.9(1) No person shall produce tear tape for use in Alberta except under the authority of a licence issued by the Minister under this section.

(2) The Minister may, on application by a person who agrees to comply with this section, issue a licence authorizing the applicant to produce tear tape for use in Alberta.

(3) A licensee under this section shall

(a) take reasonable steps to ensure the security of tear tape in its possession,

(b) mark the tear tape produced by the licensee in a manner approved by the Minister that enables the tear tape to be identified as having been produced by the licensee,

(c) keep accurate records of the quantity of tear tape

(i) produced by the licensee,

(ii) sold by the licensee, and

(iii) maintained in the licensee’s inventory,

(d) allow a peace officer or an employee or agent of the Government of Alberta reasonable access to the records referred to in clause (c) for the purpose of auditing the licensee’s compliance with this section,

(e) provide to the Minister, on request, any records required to be kept under this section, and

(f) ensure that tear tape produced by the licensee is sold only to persons who have obtained a permit under section 14.1(1).

(4) The Minister may

Section 14.91 AR 273/83


26

(a) refuse to issue a licence under this section to an applicant who fails to satisfy the Minister that he or she will comply with subsection (3), and

(b) suspend or cancel a licence issued under this section if the licensee fails to comply with subsection (3).

AR 223/2004 s12

Records to be retained 14.91(1) Any person required to keep records under section 14.9 shall retain those records, together with every account and voucher necessary to verify the information contained in the records, until the expiration of 4 years from the end of the last fiscal year to which the records relate.

(2) Notwithstanding subsection (1), if the Minister is of the opinion that it is necessary for the administration of the Tobacco Tax Act and this Regulation, the Minister may, by a demand served personally or by registered letter or certified mail, require any person who is required to keep records under section 14.9 to retain those records, together with every account and voucher necessary to verify the information contained in the records, for any longer period specified in the demand.

AR 223/2004 s12

Repeal 15 The Tobacco Tax Regulations (Alta. Reg. 175/69) are repealed.

AR 273/83 s15

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