Administrative Penalties Under the Excise Act, 2001
Excise Duty Memorandum EDM1-6-1
February 2023
The purpose of this memorandum is to provide information on administrative penalties imposed by the Canada Revenue Agency (CRA) for certain contraventions of the Excise Act, 2001 or its regulations. Administrative penalties have been a component of the Excise Act, 2001 since it came into force on July 1, 2003, and are based either on calculations set out in the Act or on graduated amounts of up to $25,000, depending on the severity and frequency of the contravention. The purpose of administrative penalties is to deter incidences of non-compliance with the Act or its regulations. This memorandum contains general guidelines and information on the determination of penalty amounts; however, the CRA retains discretion to deviate from these guidelines in circumstances where the CRA determines that it is appropriate to do so.
Except as otherwise noted, all references to the “Act” and all statutory references in this publication are to the provisions of the Excise Act, 2001. The information in this publication does not replace the law found in the Act and its regulations.
If this information does not completely address your particular situation, you may refer to the Act or relevant regulation, or contact your CRA regional excise office for additional information. The offices are listed at Contact Information – Excise and Specialty Tax Directorate.
Table of Contents
- General information
- Graduated administrative penalties
- Calculated administrative penalties
- Payments
- Review of penalty imposed
- Appendices
- Appendix A-1 – Graduated administrative penalties for contraventions of general provisions
- Appendix A-2 – Graduated administrative penalties for contraventions of tobacco-related provisions
- Appendix A-3 – Graduated administrative penalties for contraventions of alcohol-related provisions
- Appendix A-4 – Graduated administrative penalties for contraventions of cannabis-related provisions
- Appendix A-5 – Graduated administrative penalties for contraventions of vaping-related provisions
- Appendix B-1 – Calculated administrative penalties for contraventions of tobacco-related provisions
- Appendix B-2 – Calculated administrative penalties for contraventions of alcohol-related provisions
- Appendix B-3 – Calculated administrative penalties for contraventions of cannabis-related provisions
- Appendix B-4 – Calculated administrative penalties for contraventions of vaping-related provisions
General information
1. Section 254 of the Act provides for the imposition of administrative penalties by the Canada Revenue Agency (CRA) for certain contraventions of the Act or its regulations. Administrative penalties are intended to deter incidences of non-compliance.
2. Contraventions of the Act or its regulations that may result in the imposition of an administrative penalty are often identified by the CRA during the course of an audit or regulatory review.
3. An administrative penalty may be imposed in addition to a seizure or forfeiture of items, or the suspension or cancellation of a licence or registration under the Act that arises from the same event. An administrative penalty may also be imposed for the same contravention for which charges are laid under the Act if the administrative penalty is imposed before the charges are laid (in accordance with section 225 of the Act).
4. There are two types of administrative penalties: graduated administrative penalties and calculated administrative penalties. Each is described below.
Graduated administrative penalties
5. Sections 234, 235 and 250 of the Act provide for administrative penalties in amounts of up to $25,000 for certain contraventions. The CRA refers to these penalties as graduated administrative penalties. When a person contravenes certain provisions of the Act or its regulations, a graduated administrative penalty may be imposed based on the severity and frequency of the contravention.
Penalty structure
6. Contraventions that may result in the imposition of a graduated administrative penalty are classified into three severity levels: low, moderate and high. This classification is based on an assessment of the nature and scope of the contravention in the context of potential impact to excise duty revenues and controls.
| Severity level | Description |
|---|---|
| Low | A contravention of low consequence where the control of a good subject to excise duty is not directly affected. |
| Moderate | A contravention of moderate consequence where the control of a good subject to excise duty is directly affected and the results could lead to the loss of excise duty revenue. |
| High | A contravention of high consequence where the control of a good subject to excise duty is directly affected and the results could lead to significant loss of excise duty revenue. |
7. Graduated administrative penalties may progressively increase, based on how often the same contravention occurs and how recently any previous contraventions of the same legislative provision occurred. In other words, if the same contravention occurs more than once within a particular period of time, a person may be subject to higher penalty amounts depending on whether it is the person’s first, second or third or subsequent contravention of the same provision. The table below provides the graduated administrative penalty amounts that may be imposed for each severity level based on the compliance history of a person:
| Severity level | First contravention | Second contravention | Third or subsequent contravention |
|---|---|---|---|
| Low | $250 | $500 | $1,000 |
| Moderate | $1,000 | $2,500 | $5,000 |
| High | $5,000 | $10,000 | $25,000 |
8. Appendices A-1 to A-5 of this memorandum contain tables for graduated administrative penalties that outline the severity level and penalty amounts assigned to each of the contraventions provided for in sections 234, 235 and 250. There is a separate appendix for each of the tobacco, alcohol, cannabis and vaping products regulated under the Act. There is also an appendix for general penalties that are not specific to a product.
Retention period
9. For graduated administrative penalties, the retention period is the length of time that the CRA will consider a previous contravention of a particular legislative provision when issuing a new penalty for a contravention of the same provision by the same person.
10. Retention periods are used for penalty calculation purposes only, to determine whether a penalty will be imposed as a first contravention, a second contravention or a third or subsequent contravention.
11. Where a contravention can be linked to specific dates, the retention period is two years from the date of the most recent occurrence of the particular contravention that resulted in a penalty.
12. Where a contravention cannot be linked to specific dates, the retention period is two years from the date of the most recent notice of penalty imposition issued to the person for the particular contravention.
13. Each contravention has a separate retention period. For example, a previous penalty for one contravention of a particular section of the Act or its regulations during the previous two years, would not be considered when determining the penalty amount for a contravention of a different section of the Act or its regulations.
14. If the retention period for a particular contravention expires and the contravention occurs again, the penalty amount for a first contravention will apply to the first subsequent contravention by a person. The retention period expires when it has been two years since the last occurrence of a particular contravention by a person or two years since the last notice of penalty imposition was issued to the person for an occurrence of the particular contravention.
Example
A tobacco grower was liable to a penalty under section 235 of the Act for exporting raw leaf tobacco on January 1, 2022, without written approval from the CRA. This was the first time the tobacco grower had contravened the Act in this manner. Based on the table in Appendix A-2, Graduated administrative penalties for contraventions of tobacco-related provisions, this is a moderate-severity penalty. A penalty amount of $1,000 for a first contravention was imposed on January 15, 2022. The retention period for purposes of escalating a subsequent contravention to the next level (second contravention) was two years from January 1, 2022.
The same tobacco grower exported a second shipment of raw leaf tobacco on February 1, 2022, without written approval of the CRA, and a penalty of $2,500 for a second contravention was imposed. The retention period for purposes of escalating a subsequent contravention to the next level (third contravention) was two years from February 1, 2022.
If the same tobacco grower exported a third shipment of raw leaf tobacco on March 1, 2022, without written approval of the CRA, the grower would be liable to a penalty of $5,000 for a third contravention. The retention period for purposes of imposing subsequent penalties for the same contravention would be two years from March 1, 2022. Further contraventions of this type would result in penalties in the amount specified for third and subsequent contraventions until a period of two years has passed without a contravention for the export of raw leaf tobacco without written approval of the CRA.
If there were no further exports of raw leaf tobacco by the grower without written approval of the CRA since the violation on March 1, 2022, then the retention period would expire on March 1, 2024.
15. Each licence or registration type that is held under the Act is distinct for purposes of determining the penalty amount and retention period for a contravention, although a contravention under the same licence at a different operating location of the licensee would be considered a contravention by the same licensee. For example, if a tobacco licensee is liable to a penalty for a first contravention at one of its operating locations and the same contravention occurs at a different operating location of the tobacco licensee within two years, the tobacco licensee would be liable to a penalty for a second contravention. However, if a person has more than one licence (for example, a tobacco licensee and an excise warehouse licensee), a contravention under one licence would not impact the determination of the level of penalty on the other licence should a contravention occur.
30-day non-escalation
16. A person may be provided 30 days to take corrective actions related to a contravention of low or moderate level, for which a graduated administrative penalty is already imposed. During this non-escalation period, a subsequent penalty for the same contravention may not be imposed.
17. This non-escalation period is granted to allow the person time to take corrective measures; for example, to improve record-keeping practices following the imposition of a penalty for a contravention related to books and records requirements.
18. If a non-escalation period is provided, information will be included in the notice of penalty imposition issued to the person.
19. If the contravention continues to exist at the end of the 30-day non-escalation period, a subsequent penalty may be imposed.
Maximum penalty amount
20. Under the Act, the maximum amount for a graduated administrative penalty for a single contravention is $25,000. However, the total penalty amount imposed on a single notice of penalty imposition may exceed $25,000 if there is more than one type of contravention included in the notice of penalty imposition.
Calculated administrative penalties
21. Penalties under sections 233 to 233.2, 234.1 to 234.2, 237 to 249, 251 and 251.2 to 253 of the Act are based on calculations set out in the relevant penalty provisions in the Act. The CRA refers to these penalties as calculated administrative penalties, and they are generally imposed on a per-incident basis as a set amount or as an amount related to the quantity of product to which the contravention relates.
22. Appendices B-1 to B-4 contain tables with information on each of the calculated administrative penalties provided for in the Act. There is a separate appendix for each product regulated under the Act.
Payments
Payment due date
23. Administrative penalties imposed under section 254 of the Act become payable on the day that the notice of penalty imposition is served on the person by hand or sent by registered mail. Payments must be received by the CRA no later than 20 days after that date.
24. If payment is not made within 20 days after the date on the notice of penalty imposition, the penalty amount will be subject to interest at the prescribed rate, beginning on the day following the date of the notice. Interest will be compounded daily until the earlier of the day on which the penalty amount and the interest are paid, and the day on which the person to whom the notice was issued, or their authorized representative, asks the CRA in writing to review the imposition of the administrative penalties.
Payment options
25. Payments of less than $50,000 can be made:
- electronically using My Payment
- using a financial institution’s online banking service
- in person at a Canadian financial institution
- by mail by sending a cheque or money order payable to the Receiver General, along with Form RC159, Remittance Voucher – Amount Owing – personalized, to:
Prince Edward Island Tax Centre
275 Pope Rd
Summerside PE C1N 6A2
26. Payments other than electronic payments must be accompanied by Form RC159, which can be obtained by going to Order remittance vouchers or payment forms or by calling the CRA Business Enquiries line at 1-800-959-5525.
27. Payments of $50,000 or more must be made at a financial institution and must be accompanied by Form RC159.
Review of penalty imposed
Request for review
28. Section 271 allows a person to whom a notice of penalty imposition was issued, or their authorized representative, to ask the CRA to review the penalty imposed. The request must be made in writing and sent to the CRA office that issued the notice of penalty imposition within 90 days of the date on the notice.
29. Upon receipt of the request for review, the CRA will provide the person or their authorized representative with the written reasons for the imposition of the penalty.
30. Within 30 days of the date the written reasons are sent, the person or their authorized representative may submit any evidence they wish the CRA to consider in the course of the penalty review. Evidence may be given by affidavit sworn before a commissioner for taking oaths or any other person authorized to take affidavits.
31. If a request for review under section 271 is not submitted within 90 days, section 272 allows a person or their authorized representative to make a written application to the CRA to extend the time for making such a request. The application for extension must be sent to the office that issued the notice of penalty imposition.
32. The applicant must demonstrate that they meet all of the conditions set out in subsection 272(2) to be eligible for an extension. This includes information to demonstrate that the person intended to make the request before the expiration of the 90-day time limit but was unable to do so and was unable to instruct another person to do so on their behalf, that the application was made as soon as circumstances permitted it to be made and that it would be just and equitable to extend the time in the circumstances.
33. The CRA may extend the time for making the request under section 271 if an application is made within one year after the 90-day time limit and the CRA is satisfied that all the conditions set out in subsection 272(2) were met.
Decision of the CRA
34. After receiving a written request for review, the CRA will carry out a complete and impartial review of the circumstances giving rise to the penalty imposed and decide whether the contravention on which the penalty is based occurred and what action must be taken. The CRA area responsible for the review will not have been involved with the imposition of the penalty.
35. If the CRA determines that the contravention did not occur, the penalty will be cancelled and authorization will be given for the return of any amount paid towards it. If an amount is authorized to be returned, interest will also be paid to the person at the prescribed rate computed for the period beginning on the day after the amount was paid and ending on the day on which the amount is returned.
36. If the CRA determines that the contravention did occur, the CRA may confirm the penalty. If the CRA believes that the penalty imposed is insufficient under the circumstances relating to the contravention, the CRA may increase the penalty to an amount of not more than the maximum amount. The additional amount, if applicable, is payable immediately. If the CRA believes that the penalty imposed should be reduced or waived under the circumstances relating to the contravention, the CRA may reduce or waive the penalty.
37. The CRA will notify the person of the decision by registered or certified mail. If the penalty has been maintained in whole or in part, the letter will provide options for further appeal.
Appendices
Appendix A-1 – Graduated administrative penalties for contraventions of general provisions
The table below lists the general liability provisions in section 250 of the Act relating to tobacco, alcohol, cannabis and vaping products; legislative references and descriptions for the contraventions; severity levels; and the resulting graduated administrative penalty amounts.
| Legislative reference – Liability | Legislative reference –Contravention | Description of contravention | Severity level | First contravention | Second contravention | Third or subsequent contravention |
|---|---|---|---|---|---|---|
| Paragraph 250(a) | Paragraph 206(1)(a) | A licensee or registrant did not keep all records that are necessary to determine whether they complied with the Act. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Paragraph 206(1)(b) | A person that is required under the Act to file a return did not keep all records that are necessary to determine whether they complied with the Act. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Paragraph 206(1)(c) | A person that makes an application for a refund that may be obtained under the Act did not keep all records necessary to determine whether they complied with the Act. | Low | $250 | $500 | $1,000 |
| Paragraph 250(a) | Subsection 206(4) | A person that is required to keep records under the Act has kept the records either outside of Canada or in a language other than English or French, without the authorization of the CRA. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Subsection 206(5) | A person that is required under the Act to keep a record and does so electronically did not ensure that all equipment and software necessary to make the record intelligible is available during the retention period required for the record. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Subsection 206(6) | A person did not keep particular records as specified in writing by the CRA under subsection 206(6) of the Act. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Subsection 206(7) | A person that is required to keep records under the Act did not retain them until the expiry of six years after the end of the year to which the records relate or for some other period that has been prescribed. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Subsection 207(1) | A person that is required under the Act to keep records and that has served a notice of objection or is party to an appeal or reference under the Act did not retain every record that pertains to the subject matter of the objection, appeal or reference until the objection, appeal or reference could be finally disposed of. | Low | $250 | $500 | $1,000 |
| Paragraph 250(a) | Subsection 207(2) | A person that is required to keep records under the Act did not comply with a written demand from the CRA to retain records for the period specified in the demand. | High | $5,000 | $10,000 | $25,000 |
| Paragraph 250(b) | Subsection 208(1) | A person fails to provide to the CRA information or additional information (including a return) or any record, as required by the CRA in a notice. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(b) | Subsection 210(2) | A resident or non-resident person that carries on business in Canada did not provide any foreign-based information or a record as required in a notice served upon the person by the CRA. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(c) | A person failed to comply with a condition or requirement of a licence or registration issued to that person under the Act. | Moderate | $1,000 | $2,500 | $5,000 | |
| Paragraph 250(e) | Section 6, Regulations Respecting Excise Licences and Registrations | A licensee or registrant failed to notify the CRA without delay of any changes to information provided under the Regulations Respecting Excise Licences and Registrations. | Low | $250 | $500 | $1,000 |
| Paragraph 250(e) | Section 7, Regulations Respecting Excise Licences and Registrations | A licensee failed to notify the CRA without delay of any changes to their fiscal months. | Low | $250 | $500 | $1,000 |
| Paragraph 250(e) | Paragraph 13(a), Regulations Respecting Excise Licences and Registrations | A licensee or registrant did not provide, at the premises in respect of which the licence or registration was issued, adequate space for the examination of goods or records by an excise officer. | Low | $250 | $500 | $1,000 |
| Paragraph 250(e) | Paragraph 13(b), Regulations Respecting Excise Licences and Registrations | A licensee or registrant did not provide, at the premises in respect of which the licence or registration was issued, the necessary equipment and personnel to ensure that the goods or records to be examined are made available to the excise officer doing an examination. | High | $5,000 | $10,000 | $25,000 |
| Paragraph 250(e) | Paragraph 13(c), Regulations Respecting Excise Licences and Registrations | A licensee or registrant did not provide, at the premises in respect of which the licence or registration was issued, the necessary personnel to provide information to an excise officer with respect to the operations, inventory system and records system of the licensee or registrant. | High | $5,000 | $10,000 | $25,000 |
Appendix A-2 – Graduated administrative penalties for contraventions of tobacco-related provisions
The table below lists the particular liability provisions in sections 234, 235 and 250 of the Act relating to tobacco products; legislative references and descriptions for the contraventions; severity levels; and the resulting graduated administrative penalty amounts.
| Legislative reference – Liability | Legislative reference –Contravention | Description of contravention | Severity level | First contravention | Second contravention | Third or subsequent contravention |
|---|---|---|---|---|---|---|
| Subsection 234(1) | Subsection 38(1) | A person entered a container of manufactured tobacco or cigars into an excise warehouse without the required tobacco markings and prescribed information printed on or affixed to it. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Paragraph 38(2)(a) | A person delivered a container of imported manufactured tobacco or cigars to a duty free shop for sale or offer for sale in accordance with the Customs Act, without the required tobacco markings and prescribed information printed on or affixed to it. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Paragraph 38(2)(b) | A person delivered a container of imported manufactured tobacco or cigars to an accredited representative in Canada without the required tobacco markings and prescribed information printed on or affixed to the container. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Paragraph 38(2)(c) | A person delivered a container of imported manufactured tobacco or cigars to a customs bonded warehouse without the required tobacco markings and prescribed information printed on or affixed to the container. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Subsection 40(1) | A person other than a tobacco licensee removed raw leaf tobacco or tobacco that was waste from the premises of a tobacco licensee. | High | $5,000 | $10,000 | $25,000 |
| Subsection 234(1) | Subsection 40(2) | A tobacco licensee removed raw leaf tobacco or tobacco that was waste from their premises and dealt with it in a manner that was not authorized by the CRA. | High | $5,000 | $10,000 | $25,000 |
| Subsection 234(1) | Paragraph 49(a) | A person entered a tobacco product that was stamped into an excise warehouse. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Paragraph 49(b) | A person entered a tobacco product into an excise warehouse that was not in accordance with the Act. | Moderate | $1,000 | $2,500 | $5,000 |
| Subsection 234(2) | Paragraph 25.5(b) | A person failed to return or destroy tobacco excise stamps in the manner specified by the CRA. | Moderate | $1,000 | $2,500 | $5,000 |
| Subsection 234(2) | Subsection 41(1) | A tobacco licensee re-worked or destroyed a tobacco product in a manner not authorized by the CRA. | Moderate | $1,000 | $2,500 | $5,000 |
| Subsection 234(2) | Subsection 41(2) | A tobacco licensee imported manufactured tobacco or cigars manufactured in Canada by the licensee for re-working or destruction and failed to re-work or destroy the product in a manner authorized by the CRA. | Moderate | $1,000 | $2,500 | $5,000 |
| Section 235 | Paragraph 31(c) | A tobacco grower exported raw leaf tobacco without the written approval of the CRA or failed to comply with a condition imposed by the CRA in respect of the export. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Paragraph 206(1)(d) | A person that transports a tobacco product that is not stamped did not keep all records that are necessary to determine whether they have complied with the Act. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Subsection 206(2) | A tobacco grower or body established under provincial law for the marketing of raw leaf tobacco grown in the province did not keep all records that would enable the determination of the amount of raw leaf tobacco grown, received or disposed of by them. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Subsection 206(2.1) | A person that possesses commercial tobacco manufacturing equipment failed to keep records that will enable the determination of the source, the type and the disposition of that equipment. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Subsection 206(2.2) | A person that was issued an excise stamp did not keep all records that are necessary to determine the receipt, retention, location, use or disposition of the stamp. | Moderate | $1,000 | $2,500 | $5,000 |
Appendix A-3 – Graduated administrative penalties for contraventions of alcohol-related provisions
The table below lists the particular liability provisions in sections 234 and 250 of the Act relating to alcohol products; legislative references and descriptions for the contraventions; severity levels; and the resulting graduated administrative penalty amounts.
| Legislative reference – Liability | Legislative reference –Contravention | Description of contravention | Severity level | First contravention | Second contravention | Third or subsequent contravention |
|---|---|---|---|---|---|---|
| Subsection 234(1) | Section 61 | A person possessed a still or other equipment suitable to produce spirits with the intent of producing spirits, but was not a spirits licensee, did not have a pending application for a spirits licence, or did not possess the still or the equipment solely for the purpose of producing spirits for the purpose of or as a consequence of analyzing the chemical composition of a substance containing absolute ethyl alcohol. | High | $5,000 | $10,000 | $25,000 |
| Subsection 234(1) | Section 62.1 | A person that is not both a licensed user and a wine licensee used bulk spirits to fortify bulk wine. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Section 99 | A person sold specially denatured alcohol other than in accordance with the Act. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Section 149 | A person entered non-duty paid packaged alcohol into an excise warehouse other than in accordance with the Act. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Section 151 | A person removed non-duty paid packaged alcohol from an excise warehouse other than as provided for in subsection 151(2) of the Act. | High | $5,000 | $10,000 | $25,000 |
| Paragraph 250(a) | Paragraph 206(1)(d) | A person that transports non-duty paid packaged alcohol did not keep all records that are necessary to determine whether they complied with the Act. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(d) | Section 143 | A person did not comply with a condition or restriction imposed in respect of the making of an approved formulation. | Low | $250 | $500 | $1,000 |
| Paragraph 250(d) | Section 143 | A person did not comply with a condition or restriction imposed in respect of the packaging, use, sale or importation of an approved formulation. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(d) | Section 143 | A person did not comply with a condition or restriction imposed in respect of certain other dealings with an approved formulation (other than in respect of the making, importation, packaging, use or sale of the product). | Low | $250 | $500 | $1,000 |
| Paragraph 250(e) | Denatured and Specially Denatured Alcohol Regulations | A spirits licensee that denatures spirits into denatured or specially denatured alcohol grades did not comply with the grades, specifications and manner of denaturing set out in the Denatured Alcohol and Specially Denatured Alcohol Regulations. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(e) | Regulations Respecting the Information to be Displayed on Alcohol Containers and their Packaging | An alcohol licensee that packages alcohol (wine or spirits) did not ensure the display of all prescribed information on a container of alcohol or on any packaging encasing the container when required under section 87 of the Act. | Low | $250 | $500 | $1,000 |
| Paragraph 250(e) | Paragraph 1(a), Regulations Respecting the Possession of Non-duty-paid Packaged Alcohol | A person possessed imported non-duty-paid packaged alcohol reported under section 12 of the Customs Act but was not authorized under section 19 of that Act to transport it. | High | $5,000 | $10,000 | $25,000 |
| Paragraph 250(e) | Paragraph 1(b), Regulations Respecting the Possession of Non-duty-paid Packaged Alcohol | A person possessed non-duty-paid packaged alcohol but did not have documentation that provides evidence that they were transporting the alcohol on behalf of an excise warehouse licensee, a licenced user, a registered user, a duty-free shop licensee, an accredited representative, or any other person if the alcohol is designated as ships' stores. | High | $5,000 | $10,000 | $25,000 |
| Paragraph 250(e) | Paragraph 2(a), Regulations Respecting the Possession of Non-duty-paid Packaged Alcohol | A person possessed an imported non-duty-paid marked special container of alcohol reported under section 12 of the Customs Act but was not authorized under section 19 of that Act to transport it. | High | $5,000 | $10,000 | $25,000 |
| Paragraph 250(e) | Paragraph 2(b), Regulations Respecting the Possession of Non-duty-paid Packaged Alcohol | A person possessed a non-duty-paid marked special container of alcohol but did not have documentation that provides evidence that they were transporting it on behalf of an excise warehouse licensee or a registered user. | High | $5,000 | $10,000 | $25,000 |
Appendix A-4 – Graduated administrative penalties for contraventions of cannabis-related provisions
The table below lists the particular liability provisions in sections 234 and 250 of the Act relating to cannabis products; legislative references and descriptions for the contraventions; severity levels; and the resulting graduated administrative penalty amounts.
| Legislative reference – Liability | Legislative reference –Contravention | Description of contravention | Severity level | First contravention | Second contravention | Third or subsequent contravention |
|---|---|---|---|---|---|---|
| Subsection 234(1) | Subsection 158.15(1) | A person removed a cannabis product that was waste from the premises of a cannabis licensee other than the cannabis licensee or a person authorized by the CRA. | High | $5,000 | $10,000 | $25,000 |
| Subsection 234(1) | Subsection 158.15(2) | A person removed a cannabis product that was waste from the premises of a cannabis licensee and it was dealt with in a manner that was not authorized by the CRA. | High | $5,000 | $10,000 | $25,000 |
| Subsection 234(3) | Paragraph 158.07(b) | A person failed to return or destroy cannabis excise stamps in a manner specified by the CRA. | Moderate | $1,000 | $2,500 | $5,000 |
| Subsection 234(3) | Section 158.16 | A person failed to re-work or destroy a cannabis product in the manner authorized by the CRA. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Paragraph 206(1)(d) | A person transported a cannabis product that was not stamped and did not keep all records that are necessary to determine whether they complied with the Act. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Subsection 206(2.01) | A cannabis licensee did not keep records that enables the determination of the amount of cannabis product produced, received, used, packaged, re-worked, sold or disposed of by the licensee. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Subsection 206(2.2) | A person that has been issued an excise stamp did not keep all records that are necessary to determine the receipt, retention, location, use or disposition of the stamp. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(e) | Section 5.1, Stamping and Marking of Tobacco, Cannabis and Vaping Product Regulations | A cannabis licensee transferred, without sale, packaged but unstamped non-duty paid cannabis or transferred cannabis excise stamps to another cannabis licensee without an authorized service agreement. | High | $5,000 | $10,000 | $25,000 |
Appendix A-5 – Graduated administrative penalties for contraventions of vaping-related provisions
The table below lists the particular liability provisions in sections 234 and 250 of the Act relating to vaping products; legislative references and descriptions for the contraventions; severity levels; and the resulting graduated administrative penalty amounts.
| Legislative reference – Liability | Legislative reference –Contravention | Description of contravention | Severity level | First contravention | Second contravention | Third or subsequent contravention |
|---|---|---|---|---|---|---|
| Subsection 234(1) | Subsection 158.5(1) | A person entered a container of vaping products into an excise warehouse without the required vaping product markings and prescribed information printed on or affixed to the container. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Paragraph 158.5(2)(a) | A person delivered a container of imported vaping products to an accredited representative in Canada without the required vaping product markings and prescribed information printed on or affixed to the container. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Paragraph 158.5(2)(b) | A person delivered a container of imported vaping products to a customs bonded warehouse without the required vaping product markings and prescribed information printed on or affixed to the container. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Subsection 158.52(1) | A person other than a vaping product licensee or a person authorized by the CRA removed a vaping product that was waste from the premises of a vaping product licensee. | High | $5,000 | $10,000 | $25,000 |
| Subsection 234(1) | Subsection 158.52(2) | A person removed a vaping product that was waste from the premises of a vaping product licensee and it was dealt with in a manner that was not authorized by the CRA. | High | $5,000 | $10,000 | $25,000 |
| Subsection 234(1) | Paragraph 158.67(a) | A person entered a vaping product that was stamped into an excise warehouse. | Low | $250 | $500 | $1,000 |
| Subsection 234(1) | Paragraph 158.67(b) | A person entered a vaping product into an excise warehouse that was not in accordance with the Act. | Moderate | $1,000 | $2,500 | $5,000 |
| Subsection 234(4) | Paragraph 158.4(b) | A person failed to return or destroy vaping excise stamps in a manner specified by the CRA. | Moderate | $1,000 | $2,500 | $5,000 |
| Subsection 234(4) | Subsection 158.53(1) | A vaping product licensee failed to re-work or destroy a vaping product in the manner authorized by the CRA. | Moderate | $1,000 | $2,500 | $5,000 |
| Subsection 234(4) | Subsection 158.53(2) | A vaping product licensee imported vaping products manufactured in Canada by the licensee for re-working or destruction and failed to re-work or destroy the vaping products in a manner authorized by the CRA. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Paragraph 206(1)(d) | A person transported a vaping product that was not stamped and did not keep all records that are necessary to determine whether they complied with the Act. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Subsection 206(2.02) | A vaping product licensee did not keep records that will enable the determination of the amount of vaping product manufactured, received, used, packaged, re-worked, sold or disposed of by the licensee. | Moderate | $1,000 | $2,500 | $5,000 |
| Paragraph 250(a) | Subsection 206(2.2) | A person that has been issued an excise stamp did not keep all records that are necessary in order to determine the receipt, retention, location, use or disposition of the stamp. | Moderate | $1,000 | $2,500 | $5,000 |
Appendix B-1 – Calculated administrative penalties for contraventions of tobacco-related provisions
The table below lists the general liability provisions in sections 233, 237 to 240, 251, 252 and 253 of the Act relating to tobacco products; legislative references and descriptions for the contraventions; and the calculated administrative penalties.
| Legislative reference – Liability | Legislative reference –Contravention | Description of contravention | Penalty amount |
|---|---|---|---|
| Section 233 | Section 34 | A tobacco licensee that manufactures a tobacco product entered it into the duty-paid market and any of the following apply:
|
200% of the duty imposed on the tobacco product related to the contravention. |
| Section 233 | Section 37 | A tobacco licensee manufactured tobacco or cigars in Canada that were not stamped at the time of packaging and did not immediately enter the unstamped tobacco or cigars into their excise warehouse. | 200% of the duty that was imposed on the manufactured tobacco or cigars related to the contravention. |
| Subsection 237(2) | Paragraph 50(4)(a) | A tobacco licensee removed Canadian manufactured tobacco from their excise warehouse for export in accordance with paragraph 50(4)(a) of the Act and the manufactured tobacco was not exported. Note: Under subsection 237(6) of the Act, the tobacco licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the tobacco product was returned to their excise warehouse. |
200% of the duty that was imposed on the tobacco product manufactured in Canada and removed from the excise warehouse. |
| Subsection 237(2) | Paragraph 50(4)(b) | A tobacco licensee removed Canadian manufactured tobacco from their excise warehouse for delivery to a special excise warehouse in accordance with paragraph 50(4)(b) of the Act and the manufactured tobacco was not delivered to the special excise warehouse. Note: Under subsection 237(6) of the Act, the tobacco licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the tobacco product was returned to their excise warehouse. |
200% of the duty that was imposed on the tobacco product manufactured in Canada and removed from the excise warehouse. |
| Subsection 237(2) | Paragraph 50(4)(c) | A tobacco licensee removed Canadian manufactured tobacco from their excise warehouse for delivery to an accredited representative for their personal or official use in accordance with paragraph 50(4)(c) of the Act and the manufactured tobacco was not delivered for that purpose. Note: Under subsection 237(6) of the Act, the tobacco licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the tobacco product was returned to their excise warehouse. |
200% of the duty that was imposed on the tobacco product manufactured in Canada and removed from the excise warehouse. |
| Subsection 237(2) | Subsection 50(7) | A tobacco licensee removed cigars manufactured in Canada from their excise warehouse for export or delivery in accordance with subsection 50(7) of the Act and the cigars were not exported or delivered in accordance with that subsection. Note: Under subsection 237(6) of the Act, the tobacco licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the tobacco product was returned to their excise warehouse. |
200% of the duty that was imposed on the tobacco product manufactured in Canada and removed from the excise warehouse. |
| Subsection 237(2) | Subsection 50(8) | A tobacco licensee removed partially manufactured tobacco or foreign brand tobacco from their excise warehouse for export in accordance with subsection 50(8) of the Act and it was not exported in accordance with that subsection. Note: Under subsection 237(6) of the Act, the tobacco licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the tobacco product was returned to their excise warehouse. |
200% of the duty that was imposed on the tobacco product manufactured in Canada and removed from the excise warehouse. |
| Subsection 237(3) | Subsection 50(9) | An excise warehouse licensee removed cigars manufactured in Canada from their excise warehouse for delivery as ships’ stores in accordance with subsection 50(9) of the Act and the cigars were not delivered for that purpose. Note: Under subsection 237(6) of the Act, the excise warehouse licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the cigars were returned to the excise warehouse. |
200% of the duty that was imposed on the cigars manufactured in Canada and removed from the excise warehouse. |
| Subsection 237(4) | Subsection 50(11) | A special excise warehouse licensee removed a tobacco product from their special excise warehouse for delivery to an accredited representative for their personal or official use in accordance with subsection 50(11) of the Act and the tobacco product was not delivered for that purpose. Note: Under subsection 237(6) of the Act, the special excise warehouse licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the tobacco product was returned to the special excise warehouse. |
200% of the duty that was imposed on the tobacco product manufactured in Canada and removed from the special excise warehouse. |
| Subsection 237(5) | Subsection 51(2) | An excise warehouse licensee removed imported manufactured tobacco or cigars from their excise warehouse for export or delivery in accordance with subsection 51(2) of the Act and the manufactured tobacco or cigars were not exported or delivered in accordance with that subsection. Note: Under subsection 237(6) of the Act, the excise warehouse licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the tobacco product was returned to the excise warehouse. |
200% of the duty that was imposed on the imported tobacco product that was removed from the excise warehouse. |
| Section 238 | An excise warehouse licensee or special excise warehouse licensee cannot account for a tobacco product that was entered into the excise warehouse as being in the warehouse, as being removed from the warehouse in accordance with the Act or as being destroyed by fire while kept in the warehouse. | 200% of the duty that was imposed on a tobacco product entered into the excise warehouse or special excise warehouse. | |
| Section 238.1 | A person that was issued excise stamps cannot account for the stamps as being in their possession, as being affixed to tobacco products on which duty other than special duty has been paid or as being returned or destroyed as directed by the CRA. | The amount of the penalty for each excise stamp that cannot be accounted for is equal to the duty that would be imposed on the tobacco product for which the stamp was issued. | |
| Section 239 | A person acquired a tobacco product on which duty was not payable based on its intended purpose or destination and sold it or used it for a purpose or sent it to a destination in circumstances in which duty would have been payable if it had originally been acquired for that purpose or sent to that destination. Note: This penalty only applies in circumstances in which a penalty under section 237 of the Act does not apply. |
200% of the duty that was imposed on the tobacco product. | |
| Section 240 | Subsection 50(5) | A tobacco licensee removed from their excise warehouse a quantity of Canadian manufactured tobacco for export that exceeded the maximum quantity allowable in a particular calendar year under subsection 50(5) of the Act. | Refer to section 240 of the Act for calculation information. |
| Section 251 | Section 169 | A person failed to file a return as and when required under a demand by the CRA within a reasonable time stipulated, and for a period designated, in the demand. | $250 |
| Section 252 | A person failed to provide information or a record as and when required under the Act. Note: The person is not liable to this penalty if the information was required in respect of another person and a reasonable effort was made by the person to obtain the information. |
$100 for every failure. | |
| Section 253 | A person knowingly, or under circumstances amounting to gross negligence, made, or participated in, assented to or acquiesced in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in referred to in section 253 as a return) made in respect of a reporting period or activity. | If the false statement or omission is relevant to the determination of:
|
Appendix B-2 – Calculated administrative penalties for contraventions of alcohol-related provisions
The table below lists the general liability provisions in sections 237, 239, 241 to 249, 251, 252 and 253 of the Act relating to alcohol products; legislative references and descriptions for the contraventions; and the calculated administrative penalties.
| Legislative reference – Liability | Legislative reference –Contravention | Description of contravention | Penalty amount |
|---|---|---|---|
| Subsection 237(1) | Section 147 | An excise warehouse licensee removed from their warehouse packaged alcohol for a purpose other than for delivery, for export or for another purpose as described in section 147 of the Act. Note: Under subsection 237(6) of the Act, the excise warehouse licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the alcohol was returned to the excise warehouse. |
200% of the duty imposed on packaged alcohol that is removed from the warehouse of the licensee. |
| Section 239 | A person acquired packaged alcohol on which duty was not payable based on its intended purpose or destination, and sold it, used it for a purpose or sent it to a destination in circumstances in which duty would have been payable if it had originally been acquired for that purpose or sent to that destination. Note: This penalty only applies in circumstances in which a penalty under section 237 of the Act does not apply. |
200% of the duty that was imposed on the packaged alcohol. | |
| Section 241 | Section 71 | A person gave possession of bulk spirits to a person other than a spirits licensee, a licensed user or an alcohol registrant. | 200% of the duty that was imposed on the bulk spirits to which the contravention relates. |
| Section 242 | Section 72 | A person gave possession of bulk wine to a person other than a wine licensee, a licensed user or an alcohol registrant and in circumstances not authorized. Note: This penalty does not apply to an individual who, in connection with their personal use of it, gives possession of bulk wine lawfully produced by an individual for their personal use. |
The number of litres of wine to which the contravention relates multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 to the Act at the time the offence was committed. |
| Subsection 243(1) | Section 73 | A person used or disposed of bulk alcohol other than in a manner described in paragraphs 73(a) to 73(h) of the Act. Note: This penalty only applies in circumstances in which a penalty under section 239, 241, 242 or 243.1 or subsection 243(2) of the Act does not apply. |
In the case of spirits, 200% of the duty that was imposed on the spirits to which the contravention relates. In the case of wine, the number of litres of the wine to which the contravention relates multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 to the Act at the time the offence was committed. |
| Subsection 243(1) | Section 74 | A person that possessed bulk spirits produced for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol did not, immediately after the analysis was complete, destroy or dispose of the spirits in a manner approved by the CRA. Note: This penalty only applies in circumstances in which a penalty under section 239, 241, 242 or 243.1 or subsection 243(2) of the Act does not apply. |
200% of the duty that was imposed on the spirits to which the contravention relates. |
| Subsection 243(1) | Section 90 | A person used or disposed of non-duty-paid packaged alcohol other than in a manner described in paragraphs 90(a) to 90(g) of the Act. Note: This penalty only applies in circumstances in which a penalty under section 239, 241, 242 or 243.1 or subsection 243(2) of the Act does not apply. |
In the case of spirits, 200% of the duty that was imposed on the spirits to which the contravention relates. In the case of wine, the number of litres of the wine to which the contravention relates multiplied by 200% of the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 to the Act at the time the offence was committed |
| Subsection 243(2) | Section 73 | A licensed user exported, gave possession of or took for use bulk alcohol for a purpose other than one of the following:
|
In the case of spirits, the duty that was imposed on the spirits to which the contravention relates. In the case of wine, the number of litres of the wine to which the contravention relates multiplied by the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 to the Act at the time the offence was committed. |
| Subsection 243(2) | Section 90 | A licensed user exported, gave possession of or took for use non-duty-paid packaged alcohol for a purpose other than one of the following:
|
In the case of spirits, the duty that was imposed on the spirits to which the contravention relates. In the case of wine, the number of litres of the wine to which the contravention relates multiplied by the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 to the Act at the time the offence was committed. |
| Section 243.1 | Section 76 | A person exported bulk alcohol and was not one of the following:
|
In the case of spirits, the duty that was imposed on the spirits to which the contravention relates. In the case of wine, the number of litres of the wine to which the contravention relates multiplied by the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 to the Act at the time the offence was committed. |
| Section 243.1 | Section 89 | A ferment-on-premises registrant stored packaged wine at their ferment-on-premises facility. | The number of litres of the wine to which the contravention relates multiplied by the rate of duty applicable to a litre of wine under paragraph (c) of Schedule 6 to the Act at the time the offence was committed. |
| Section 243.1 | Section 91 | A registered user used or disposed of non-duty-paid packaged spirits for a purpose other than one of the following:
|
The duty imposed on the spirits to which the contravention relates. |
| Section 244 | Subsection 101(1) | A person that is not a spirits licensee or licensed user imported a product that was reported under the Customs Act as being denatured alcohol or specially denatured alcohol, but after learning that the product was spirits and not denatured alcohol or specially denatured alcohol did not immediately:
because an amount of the product had been used in the production of another product. |
The duty imposed under section 122 of the Act or levied under section 21.1 or subsection 21.2(1) of the Customs Tariff on the spirits to which the contravention relates. |
| Section 244 | Subsection 101(2) | A person that is not a spirits licensee, licensed user or alcohol registrant possessed a product that the person believed was denatured alcohol or specially denatured alcohol, but after learning that the product was spirits and not denatured alcohol or specially denatured alcohol did not immediately:
because an amount of the product had been used in the production of another product. |
The duty imposed under section 122 of the Act or levied under section 21.1 or subsection 21.2(1) of the Customs Tariff on the spirits to which the contravention relates. |
| Section 245 | Subsection 78(1) | A person marked a special container of spirits in circumstances other than one of the following:
|
100% of the duty that was imposed on the alcohol to which the contravention relates. |
| Section 245 | Subsection 78(2) | A spirits licensee marked a special container of spirits and did not immediately enter it into an excise warehouse. | 100% of the duty that was imposed on the alcohol to which the contravention relates. |
| Section 245 | Subsection 83(1) | A person marked a special container of wine in circumstances other than one of the following:
|
100% of the duty that was imposed on the alcohol to which the contravention relates. |
| Section 245 | Subsection 83(2) | A wine licensee marked a special container of wine and did not immediately enter it into an excise warehouse. | 100% of the duty that was imposed on the alcohol to which the contravention relates. |
| Section 245 | Section 94 | A person other than a spirits licensee denatured spirits. | 100% of the duty that was imposed on the alcohol to which the contravention relates. |
| Section 246 | Section 81 | An excise warehouse licensee imported a marked special container of spirits and did not immediately enter it into their excise warehouse. | 50% of the duty that was imposed on the alcohol to which the contravention relates. |
| Section 246 | Section 86 | An excise warehouse licensee imported a marked special container of wine and did not immediately enter it into their excise warehouse. | 50% of the duty that was imposed on the alcohol to which the contravention relates. |
| Section 246 | Section 92 | A person removed spirits from a marked special container of spirits and the person was not one of the following:
|
50% of the duty that was imposed on the alcohol to which the contravention relates. |
| Section 246 | Section 93 | A person removed wine from a marked special container of wine and the person was not one of the following:
|
50% of the duty that was imposed on the alcohol to which the contravention relates. |
| Section 247 | Section 96 | A person used specially denatured alcohol other than in accordance with a specially denatured alcohol registration issued to the person. | $10 per litre of specially denatured alcohol to which the contravention relates. |
| Section 247 | Section 97 | A person possessed specially denatured alcohol in circumstances other than one of the following:
|
$10 per litre of specially denatured alcohol to which the contravention relates. |
| Section 247 | Section 98 | A person gave possession of specially denatured alcohol to a person that was not a spirits licensee, a specially denatured alcohol registrant or an alcohol registrant. | $10 per litre of specially denatured alcohol to which the contravention relates. |
| Section 247 | Section 100 | A person other than a spirits licensee or a specially denatured alcohol registrant imported specially denatured alcohol. | $10 per litre of specially denatured alcohol to which the contravention relates. |
| Section 247 | Section 102 | A person exported specially denatured alcohol and that person was not the specially denatured alcohol registrant that had imported it or a spirits licensee. | $10 per litre of specially denatured alcohol to which the contravention relates. |
| Section 247 | Section 103 | A specially denatured alcohol registrant disposed of specially denatured alcohol in a manner other than one of the following:
|
$10 per litre of specially denatured alcohol to which the contravention relates. |
| Section 247.1 | Section 93.1 | A licensed user used or disposed of a restricted formulation other than in accordance with the conditions or restrictions imposed and considered necessary by the CRA in respect of the making, importation, packaging, use or sale of an approved formulation, or other dealing with an approved formulation. | $10 per litre of restricted formulation to which the contravention relates. |
| Section 247.1 | Section 93.2 | A person other than a licensed user or an alcohol registrant was in possession of a restricted formulation. | $10 per litre of restricted formulation to which the contravention relates. |
| Section 248 | An excise warehouse licensee removed a marked special container of alcohol from their excise warehouse for entry into the duty-paid market and the container was not marked for and delivered to a bottle-your-own premises. | 50% of the duty that was imposed on the alcohol in the container. | |
| Section 249 | Section 154 | In a calendar year, an excise warehouse licensee supplied from a particular premises specified in their excise warehouse licence to a retail store more than 30% of the total volume of packaged alcohol supplied from the particular premises to all retail stores, and none of the exceptions in subsections 154(2) and 155(1) of the Act applied. | The total of $1,000 and 50% of the duty that was imposed on the alcohol supplied in contravention of section 154. |
| Section 251 | Section 169 | A person failed to file a return as and when required under a demand by the CRA within a reasonable time stipulated, and for a period designated, in the demand. | $250 |
| Section 252 | A person failed to provide information or a record as and when required under the Act. Note: The person is not liable to this penalty if the information was required in respect of another person and a reasonable effort was made by the person to obtain the information. |
$100 for every failure. | |
| Section 253 | A person knowingly, or under circumstances amounting to gross negligence, made, or participated in, assented to or acquiesced in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in section 253 referred to as a return) made in respect of a reporting period or activity. | If the false statement or omission is relevant to the determination of:
|
Appendix B-3 – Calculated administrative penalties for contraventions of cannabis-related provisions
The table below lists the general liability provisions in sections 233.1, 234.1, 238.1, 239, 251, 252 and 253 of the Act relating to cannabis products; legislative references and descriptions for the contraventions; and the calculated administrative penalties.
| Legislative reference – Liability | Legislative reference –Contravention | Description of contravention | Penalty amount |
|---|---|---|---|
| Section 233.1 | Section 158.13 | A cannabis licensee that is responsible for a cannabis product entered the product into the duty-paid market and any of the following apply:
|
Refer to section 233.1 of the Act for calculation information. |
| Section 234.1 | Section 158.02 | A person produced a cannabis product other than in accordance with a cannabis licence issued to the person. | Refer to section 234.1 of the Act for calculation information. |
| Section 234.1 | Section 158.1 | A person purchased or received for sale any of the following:
|
Refer to section 234.1 of the Act for calculation information. |
| Section 234.1 | Section 158.11 | A person other than a cannabis licensee disposed of, sold, offered for sale, purchased, or had in their possession a cannabis product that was not packaged and stamped to indicate that duty and, in respect of a specified province, additional duty were paid, except as allowed under subsection 158.11(3), (4), (5) or (6) of the Act. | Refer to section 234.1 of the Act for calculation information. |
| Section 234.1 | Section 158.12 | A cannabis licensee distributed or sold or offered to sell a cannabis product that was not packaged and stamped to indicate that duty was paid, except as allowed under subsection 158.12(2) of the Act. | Refer to section 234.1 of the Act for calculation information. |
| Section 238.1 | A person that was issued cannabis excise stamps could not account for the stamps as being in their possession. Note: The person is not liable to this penalty if:
|
Refer to paragraph 238.1(2)(b) of the Act for calculation information. | |
| Section 239 | A person acquired a cannabis product on which duty was not payable based on its intended purpose or destination and sold it or used it for a purpose or sent it to a destination in circumstances in which duty would have been payable if it had originally been acquired for that purpose or sent to that destination. Note: This penalty only applies in circumstances in which a penalty under section 237 of the Act does not apply. |
200% of the duty that was imposed on the cannabis product. | |
| Section 251 | Section 169 | A person failed to file a return as and when required under a demand by the CRA within a reasonable time stipulated, and for a period designated, in the demand. | $250 |
| Section 252 | A person failed to provide information or a record as and when required under the Act. Note: The person is not liable to this penalty if the information was required in respect of another person and a reasonable effort was made by the person to obtain the information. |
$100 for every failure. | |
| Section 253 | A person knowingly, or under circumstances amounting to gross negligence, made, or participated in, assented to or acquiesced in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in section 253 referred to as a return) made in respect of a reporting period or activity. | If the false statement or omission is relevant to the determination of:
|
Appendix B-4 – Calculated administrative penalties for contraventions of vaping-related provisions
The table below lists the general liability provisions in sections 233.2, 234.2, 237(5.1), 237(5.2), 238.01, 238.1, 239, 251, 252 and 253 of the Act relating to vaping products; legislative references and descriptions for the contraventions; and the calculated administrative penalties.
| Legislative reference – Liability | Legislative reference –Contravention | Description of contravention | Penalty amount |
|---|---|---|---|
| Section 233.2 | Section 158.46 | A vaping product licensee that manufactures a vaping product entered the vaping product into the duty-paid market and any of the following apply:
|
200% of the amount, as calculated under section 233.2, imposed on the vaping product related to the contravention |
| Section 233.2 | Section 158.49 | A vaping product licensee manufactured vaping products in Canada that were not stamped at the time of packaging and did not immediately enter the unstamped vaping products into their excise warehouse. | 200% of the amount, as calculated under section 233.2, imposed on the vaping product related to the contravention |
| Section 234.2 | Section 158.35 | A person manufactured a vaping product other than in accordance with a vaping product licence issued to the person. | 200% of the amount, as calculated under section 234.2, imposed on the vaping product related to the contravention |
| Section 234.2 | Section 158.43 | A person received any of the following for sale:
|
200% of the amount, as calculated under section 234.2, imposed on the vaping product related to the contravention |
| Section 234.2 | Subsection 158.44(1) | A person other than a vaping product licensee sold or offered for sale a vaping product that was not packaged and stamped to indicate that duty was paid, except as allowed under subsection 158.44(4) of the Act. | 200% of the amount, as calculated under section 234.2, imposed on the vaping product related to the contravention |
| Section 234.2 | Subsection 158.44(2) | A person other than a vaping product licensee sold or offered for sale, in a specified vaping province, a vaping product that was not stamped to indicate that the additional vaping duty in respect of the specified vaping province was paid, except as allowed under subsection 158.44(4) of the Act. | 200% of the amount, as calculated under section 234.2, imposed on the vaping product related to the contravention |
| Section 234.2 | Subsection 158.45(1) | A vaping product licensee sold or offered to sell a vaping product that was not packaged and stamped to indicate that duty and, if applicable, additional vaping duty in respect of a specified vaping province were paid, except as allowed under subsection 158.45(2) of the Act. | 200% of the amount, as calculated under section 234.2, imposed on the vaping product related to the contravention |
| Subsection 237(5.1) | Paragraph 158.68(2)(a) | A vaping product licensee removed a vaping product manufactured in Canada from their excise warehouse for export, in accordance with paragraph 158.68(2)(a) of the Act, and the vaping product was not exported by the licensee. Note: Under subsection 237(6) of the Act, the vaping product licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the vaping product was returned to their excise warehouse. |
200% of the amount, as calculated under subsection 237(5.3), imposed on the vaping product removed from the excise warehouse |
| Subsection 237(5.1) | Paragraph 158.68(2)(b) | A vaping product licensee removed a vaping product manufactured in Canada from their excise warehouse for delivery to an accredited representative for their personal or official use in accordance with paragraph 158.68(2)(b) of the Act, and the vaping product was not delivered for that purpose. Note: Under subsection 237(6) of the Act, the vaping product licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the vaping product was returned to their excise warehouse. |
200% of the amount, as calculated under subsection 237(5.3), imposed on the vaping product removed from the excise warehouse |
| Subsection 237(5.2) | Paragraph 158.69(2)(a) | A person removed imported vaping products from an excise warehouse for delivery to another excise warehouse in accordance with paragraph 158.69(2)(a) of the Act and the vaping products were not delivered for that purpose. Note: Under subsection 237(6) of the Act, the excise warehouse licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the vaping product was returned to their excise warehouse. |
200% of the amount, as calculated under subsection 237(5.3), imposed on the vaping product removed from the excise warehouse |
| Subsection 237(5.2) | Paragraph 158.69(2)(b) | A person removed imported vaping products from an excise warehouse for delivery to an accredited representative for their official or personal use, in accordance with paragraph 158.69(2)(b) of the Act and the vaping products were not delivered for that purpose. Note: Under subsection 237(6) of the Act, the excise warehouse licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the vaping product was returned to their excise warehouse. |
200% of the amount, as calculated under subsection 237(5.3), imposed on the vaping product removed from the excise warehouse |
| Subsection 237(5.2) | Paragraph 158.69(2)(c) | A person removed imported vaping products from an excise warehouse for export by the excise warehouse licensee in accordance with paragraph 158.69(2)(c) of the Act and the vaping products were not exported for that purpose. Note: Under subsection 237(6) of the Act, the excise warehouse licensee is not liable to this penalty if the licensee proves to the satisfaction of the CRA that the vaping product was returned to their excise warehouse. |
200% of the amount, as calculated under subsection 237(5.3), imposed on the vaping product removed from the excise warehouse |
| Subsection 238.01(1) | An excise warehouse licensee cannot account for a vaping product that was entered into their excise warehouse as being in the warehouse, as being removed from the warehouse in accordance with the Act or as being destroyed by fire while kept in the warehouse. | Refer to subsection 238.01(2) of the Act for calculation information. | |
| Subsection 238.1(1) | A person that was issued vaping excise stamps could not account for the stamps as being in their possession. Note: The person is not liable to this penalty if:
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The amount of the penalty for each vaping excise stamp that cannot be accounted for is:
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| Section 239 | A person acquired a vaping product on which duty was not payable based on its intended purpose or destination and sold it or used it for a purpose or sent it to a destination in circumstances in which duty would have been payable if it had originally been acquired for that purpose or sent to that destination. Note: This penalty only applies in circumstances in which a penalty under section 237 of the Act does not apply. |
200% of the duty that was imposed on the vaping product. | |
| Section 251 | Section 169 | A person failed to file a return as and when required under a demand by the CRA within a reasonable time stipulated, and for a period designated, in the demand. | $250 |
| Section 252 | A person failed to provide information or a record as and when required under the Act. Note: The person is not liable to this penalty if the information was required in respect of another person and a reasonable effort was made by the person to obtain the information. |
$100 for every failure. | |
| Section 253 | A person knowingly, or under circumstances amounting to gross negligence, made, or participated in, assented to or acquiesced in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in section 253 referred to as a return) made in respect of a reporting period or activity. | If the false statement or omission is relevant to the determination of:
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Further information
For all technical publications related to the Excise Act, 2001 and its regulations, go to Excise duties technical information under the Excise Act, 2001.
To make a general or technical enquiry on excise duties or to request a ruling or interpretation related to excise duties, go to Contact Information – Excise and Specialty Tax Directorate.
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