Short title

        1. These regulations may be cited as the Tobacco Tax Regulations.

48/89 s1

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Definitions

        2. In these regulations

             (a)  "Act" means the Tobacco Tax Act;

             (b)  "wholesaler (accountable)" means a person who receives a licence as a wholesaler (accountable) under section 4;

             (c)  "wholesaler (non-accountable)" means a person who receives a licence as a wholesaler (non-accountable) under section 4; and

             (d)  other expressions used in these regulations which are defined in section 2 of the Act have the meaning assigned to them by that section.

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Application for wholesaler's licence

        3. An application to the minister for a wholesaler's licence under section 13 of the Act shall be made in the form prescribed by the minister.

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Wholesaler licence

        4. (1) There shall be 2 categories of licensed wholesaler, namely, a wholesaler (accountable) and a wholesaler (non-accountable).

             (2)  A wholesaler's licence as a wholesaler (accountable) may be issued to a person who, in the opinion of the minister, is qualified for appointment, and accepts appointment as a collector under section 18 of the Act.

             (3)  A wholesaler's licence as a wholesaler (non-accountable) may be issued to an applicant seeking a licence under section 3.

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Form of licence

        5. Licences issued under section 13 of the Act shall be in the form prescribed by the minister.

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Multiple locations

        6. (1) A wholesaler who carries on business in more than one location shall apply for a licence in respect of each location.

             (2)  A separate return shall be made for each location of business unless a consolidated return has been approved by the minister.

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Tax to be paid over

        7. A dealer who is a collector shall pay over the tax collectable or payable under the Act to the licensed wholesaler from whom he or she acquires tobacco at the time of the sale or acquisition.

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Tax to be remitted

        8. A person who collects tax on tobacco that was acquired by him or her from a person other than a licensed wholesaler shall remit the tax to the minister on or before the 20th day of the calendar month immediately following the month in which the tax was collected and at the same time shall file a return in the form prescribed by the minister.

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Tax collection and remittance

        9. (1) A collector who is a wholesaler (accountable) and sells tobacco other than to another wholesaler (accountable) shall collect the tax at the time of the sale and shall remit the tax in accordance with subsections (2) and (3).

             (2)  A collector shall make a separate return for each calendar month in the form prescribed by the minister and shall file the returns with the minister on or before the 20th day of the calendar month in respect of which the return is made and shall remit tax collectable by him or her together with the return.

             (3)  In addition to or instead of returns required under subsection (2), the minister may order a collector or other dealer to file a return relating to tobacco sold or purchased and the tax collectable or payable by that person in respect of a period specified by the minister in the order, and to remit the payment of the tax collectable or payable by that person.

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Return required

      10. If a wholesaler has made no sales of tobacco or collected no tax during a reportable period, he or she shall nevertheless make a return to that effect.

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Statement required upon request

      11. Within 14 days following a written request by the minister, a person who sells tobacco at other than a retail sale shall file with the minister a statement accounting for the quantity of tobacco sold and the names and addresses of the persons to whom the tobacco was sold during the period specified in the minister's request.

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Statement of inventory

      12. For any purpose relating to the administration and enforcement of the Act, the minister may require a dealer to file a statement of inventory in a form satisfactory to the minister accounting for all tobacco in his or her possession.

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Refund by minister

      13. (1) Where a dealer has acquired tobacco upon which tax has been paid over to the Crown, and the tobacco is lost or destroyed, or where a person has paid or paid over to the minister an amount which exceeds the amount required to be paid, he or she may apply in writing to the minister for a refund of the overpayment.

             (2)  An application for refund shall be supported by the relevant facts, documentation or other information that the minister may request.

             (3)  Upon verification of the application for refund, the minister shall pay the verified amount of overpayment to the person to whom the refund is due.

             (4)  A refund shall not be paid where the amount of tax is less than $10.

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Interest on refund

      14. (1) Where the minister issues a refund under section 13, he or she shall, at the same time, pay interest on the amount of the refund at the rate of 0.7% compounded per month from the date the application is received to the date the refund is approved.

             (2)  Where the minister issues a refund of tax resulting from a review or appeal of an assessment, interest shall be paid to the taxpayer at the rate specified in subsection (1) from the date that the assessment or part of the assessment was paid to the date the refund is approved.

             (3)  Interest shall not be paid under this section when the amount of refund is less than $100.

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Interest on sum due

      15. (1) Interest shall be levied upon a sum due at the rate of 1.2% compounded per month or part of a month from the date the sum is required to be paid to the date of payment.

             (2)  Interest shall not be levied for a month in which the sum due is less than $100.

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Exempt tobacco

      16. The following tobacco shall be exempt from the tax imposed by this Act:

             (a)  tobacco sold for use as ships stores when delivered by common carrier under bond or by a customs officer under convoy and only when exempted from customs duty under the Ships Stores Regulations under the Customs Act ( Canada );

             (b)  tobacco sold in duty free stores in accordance with the Duty Free Stores Regulations ( Canada ) to persons departing from Canada ;

             (c)  subject to section 54 of the Act, tobacco sold for delivery or shipment to a destination outside the province;

             (d)  an amount of tobacco not exceeding 200 grams brought into the province for personal use by a person who has been outside Canada for a period of not less than 48 hours, or by a non-resident of the province visiting the province.

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Security

      17. (1) The minister may require a collector or other person to post a bond by way of cash or other security satisfactory to the minister in an amount that may be determined by the minister, which shall not be greater than an amount equal to 3 times the amount of the tax estimated by the minister as the amount normally collected by the collector or other person each month in compliance with the Act.

             (2)  Notwithstanding subsection (1), no amount shall be less than $1,000.

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Non-retail sales

      18. A wholesaler who makes a sale of tobacco that is not a retail sale shall issue to the purchaser at the time of the sale an invoice containing the following information:

             (a)  the date of sale;

             (b)  the name, address and wholesaler's licence number of the wholesaler making the sale;

             (c)  the name, address and the wholesaler's licence number or registration certificate number of the purchaser;

             (d)  the quantity of tobacco sold, listed by brand and size; and

             (e)  other information that the minister may require.

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Transportation of tobacco

      19. A person who transports tobacco, either on his or her own behalf or on behalf of another person, shall produce upon the demand of the minister or his or her agent all records pertaining to his or her consignments, imports and deliveries of that tobacco.

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Proof required

      20. A person who has possession or control of a quantity of tobacco in excess of 999 grams shall produce on the demand of an inspector proof of ownership and proof that the tax has been paid.

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Acquisition of cigars

      21. (1) When a retail purchaser acquires a cigar from a dealer, "purchase price" means the price paid by the purchaser for the cigar, but where that price is not known to the collector, "purchase price" means an amount equal to the sum of the price at which that cigar is sold at wholesale by the collector plus an amount equal to one-third of that amount.

             (2)  When the consumer acquires a cigar other than from a dealer, "purchase price" means the price paid by the consumer for the cigar, but when the price cannot be determined or no price is paid for the cigar, the "purchase price" means an amount equal to the average price before tax at which a comparable cigar may be purchased from a retailer in the province, which average price in the case of uncertainty shall be fixed by the minister, whose decision shall be final.

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Repeal

      22. The Tobacco Tax Regulations, 1989 , Newfoundland Regulation 48/89, are repealed.

©Earl G. Tucker, Queen's Printer