Part 2: Module 2.3 Lesson 3: Excise Tax Act, Excise Act, and Excise Act 2001

Question 1

describe the Excise Tax Act that enables the collection of GST

Answer 1

divided into nine parts with ten schedules; The Excise Tax Act provides for the collection of the GST, HST, and excise tax

Question 2

identify the goods that attract special duty

Answer 2

beer,spirits, wine, tobacco,cannabis

Question 3

differentiate between the Excise Act and Excise Act, 2001

Answer 3

• the Excise Act provides for the excise duty on beer that is manufactured or produced in Canada;
• the Excise Act, 2001, provides for excise duty on spirits, wine, cannabis and tobacco that is manufactured or produced in Canada

Question 4

What is The Excise Tax Act?

Answer 4

provides for:
* the imposition and collection of the Goods and Services Tax (GST) on most goods and services supplied within or imported into Canada;
* the implementation of the Harmonized Sales Tax (HST) in five provinces; and
* excise taxes on specific goods such as automobiles.
https://laws-lois.justice.gc.ca/eng/acts/E-15/FullText.html

Question 5

What is the makeup of the The Excise Tax Act (eg. how many parts and what are they)

Answer 5

nine parts with ten schedules
PART I: Insurance Premiums Other than Marine
PART II: Air Transportation Tax
PART II.1: Telecommunication Programming Services Tax
…. https://laws-lois.justice.gc.ca/eng/acts/E-15/FullText.html

Question 6

Which are the parts within The Excise Tax Act that relate to Importing/exporting?

Answer 6

will be reviewed later in course and relate to specific scenarios

Question 7

Who is responsible for the collection of excise tax on imported goods.

Answer 7

CBSA

Question 8

Provinces that have the HST are called “participating provinces”. Which 5 have HST

Answer 8

Nova Scotia;
New Brunswick;
Newfoundland and Labrador;
Ontario; and
Prince Edward Island.

Question 9

True or False; most commercial shipments are subject to GST at the time of importing.

Answer 9

True

Question 10

What are the two acts that are the authority for the administration of excise duties.

Answer 10

The Excise Act and the Excise Act, 2001
https://laws-lois.justice.gc.ca/eng/acts/E-14/index.html
https://laws-lois.justice.gc.ca/eng/acts/E-14.1/

Question 11

How many parts is The Excise Act comprised of?

Answer 11

6

Question 12

What does section 1.1.(1) of The Excise Act state?

Answer 12

1.1 (1) Despite anything in this Act, on the coming into force of Parts 3 and 4 of the Excise Act, 2001, this Act ceases to apply in respect of:

(a) the manufacture of any goods or substance other than beer, malt liquor and any product manufactured in accordance with subsection 169(2); and

(b) the handling of, or the dealing with, anything that is or relates to any goods or substance other than beer, malt liquor and any product manufactured in accordance with subsection 169(2), to the extent that the Excise Act, 2001 applies to that handling or dealing.

Question 13

What does section 1.1.(1) of The Excise Act mean in simple terms?

Answer 13

This means that excise duty is imposed, levied, and collected under the Excise Act on beer manufactured or produced in Canada.

Question 14

How many parts is The Excise Act, 2001 comprised of?

Answer 14

11 Parts, and several Schedules

Question 15

What type of Excise duty does The Excise Act, 2001 impose/levy/collect?

Answer 15

Excise duty is imposed, levied, and collected under the Excise Act, 2001 on all spirits, wine, tobacco and cannabis products manufactured or produced in Canada. (*and ships stores)

Question 16

What are Ships Stores?

Answer 16

goods used for the ship and the crew while at sea, or outside Canadian coastal waters

Question 17

What 3 sections of the Customs Tariff Act provide for the additional duty incured during impor on beer, spirits, wine, tobaccor, and cannabis?

Answer 17

**On imported beer, spirits, wine, tobacco, and cannabis, sections 21.1, 21.2 and 21.3 of the Customs Tariff Act provide for additional duty that is equivalent to the excise duty that would apply if these goods were manufactured or produced in Canada.

Question 18

True or False; imported products (beer,spirits, wine, tobacco,cannabis) are subject to “regular duty”, that is the rate of duty assessed under the Customs Tariff schedule, as well as the additional duty.

Answer 18

True

Question 19

When when beer, spirits, wine, cannabis or tobacco are imported what act provides for additional duty that is equivalent to the excise duty that would be applicable?

Answer 19

the Customs Tariff Act