EDM2-4-1 Obtaining a registration

Excise Duty Memorandum

March 2003

Except as otherwise noted, all statutory references in this memorandum are to the provisions of the Excise Act, 2001. The information in this memorandum does not replace the law found in the Act and its regulations. If this information does not completely address your situation, refer to the Act or regulations or contact your regional excise office for additional information. The offices are listed at Contact information – Excise and Specialty Tax Directorate.

On this page

• General
• Registration conditions
• How to apply for a registration
• Eligibility for registration
• Effect and duration of registration
• Notification of changes
• Facilities, personnel and equipment
• Refusal to issue a registration
• Cancellation or suspension of registration

General

Is a registration required?

1. Every person who possesses, supplies, receives, buys, sells, uses, imports, exports, or performs any other activity involving tobacco or alcohol should ensure that they are in compliance with any restrictions that may be imposed on that activity under the Act. The Act imposes restrictions on several tobacco and alcohol-related activities and, in many cases, a person may only be permitted to undertake these activities if they possess the appropriate registration issued by the Canada Revenue Agency (CRA).

2. A listing of all registrations provided for under the Act is available in Memorandum EDM2-3-1, Registration types. Readers are encouraged to refer to this memorandum to determine if a registration is required in their particular circumstances.

Registration conditions

Specified activities

3. Each registration issued under the Act relates to specified activities and authorizes a person to perform only those activities specifically provided for by that registration.

Compliance with the Act (s 24)

4. A registrant is required to carry on all activities authorized under their registration in compliance with the Act and its Regulations.

Conditions imposed by the CRA (ss 23(3))

5. The CRA has the authority to specify the activities that may be carried out under a registration and the premises where these activities may be carried out, as well as to impose any conditions on these activities that are considered appropriate in the circumstances.

How to apply for a registration

Regulations Respecting Excise Licences and Registrations (ss 3(1))

6. Every person who wishes to obtain a registration under the Act must submit a completed Form L63A, Application for an Alcohol Licence or Registration, to their regional excise office. The offices are listed at Contact information – Excise and Specialty Tax Directorate.

Signatures

7. An authorized individual of the person must sign the completed Form L63A. If the person is a corporation or an association or organization that has duly elected or appointed officers, the president, vice-president, secretary or treasurer (or other equivalent officers) of the organization are deemed to be so duly authorized. A proprietor or a partner must sign applications submitted by a sole proprietorship or partnership, respectively.

List of premises (para 23(3)(a), Regulations ss 3(1))

8. A registration issued under the Act authorizes a person to carry on the specific activities provided for under that registration. A person who has been issued a registration may carry on those activities at a single location, or at several locations authorized by the CRA. Accordingly, all applications for a registration must be accompanied by a list of the premises that the person wishes the CRA to designate for the purposes of the registration.

No fees

9. There are no application fees or other costs involved in obtaining a registration under the Act.

Eligibility for registration

Other requirements (Regulations para 3(2)(a) and (b))

10. The CRA will not issue a registration under the Act if the person making the application:

• is the subject of a receivership in respect of their debts;
• has failed in the past five years to comply with any Act of Parliament (other than the Excise Act, 2001) or of a provincial legislature that deals with the taxation or control of tobacco or alcohol or any regulations made under it; or
• has acted to defraud His Majesty in the past five years.

Effect and duration of registration

11. A registration is effective from the date indicated on the registration approval notice and remains in effect until cancelled or suspended by the CRA.

Notification of changes

Changes that must be reported (Regulations s 6)

12. A person who possesses a registration issued under the Act must notify their regional excise office in writing of any changes to their information without delay. Such changes may include:

• a change of name or legal entity;
• the discontinuance of the operations covered by the registration;
• a change in the list of locations;
• a change in activities;
• a change in any other information provided on, or in support of, the registration application, including officers and directors; or
• a change to the address where the records are kept.

Name change

13. In the case of a name change, a person must notify their regional excise office in writing before the change occurs or as soon as possible after the change. No new registration or excise duty program account number (for example, 12345 6789 RD 0001 ) will be issued.

Change of legal entity

14. Where a change of legal entity occurs (for example, a proprietorship incorporates), the existing registration will be cancelled and the new legal entity will have to apply for a new registration by completing Form L63A and submitting it to their regional excise office.

15. In cases where a corporation merges or amalgamates with another corporation, a new registration may not be required. However, the CRA must be notified of the change and the certificate of amalgamation must be provided.

Facilities, personnel and equipment

Regulations (s 13)

16. As a condition of holding a registration under the Act, all registrants must provide, at each premises designated in the registration:

1. adequate space for the examination of goods or records by an officer;
2. the personnel and equipment necessary to ensure that the goods or records can be examined by an officer; and
3. the personnel necessary to provide information to an officer, for audit purposes, with respect to the operations, inventory system and records of the person.

Refusal to issue a registration

CRA discretion (ss 23(1))

17. The decision to issue a registration rests with the CRA. The CRA will not issue a registration if it is not in the best interests of the public to do so.

Cancellation or suspension of registration

ss 23(2)

18. The CRA has the authority to suspend or cancel a registration in certain circumstances.

Suspension (Regulations ss 10(1))

19. The CRA may suspend a registration if, at any time, the person to whom the registration has been issued:

• fails to notify the CRA of any changes to their registration information as required in paragraphs 12 through 15 of this memorandum, or fails to provide adequate facilities, personnel or equipment as required in paragraph 16 of this memorandum; or
• fails to meet any of the conditions of their registration.

Cancellation (Regulations ss 12(1))

20. The CRA may cancel a registration if, at any time, the person to whom the registration has been issued:

• requests in writing that the registration be cancelled;
• becomes bankrupt;
• no longer meets the eligibility requirements to possess the registration;
• ceases to carry on the business or activities for which the registration was issued;
• is the subject of a receivership in respect of their debts;
• fails to comply with any Act of Parliament (other than the Excise Act, 2001) or of a provincial legislature that deals with the taxation or control of tobacco or alcohol or any regulations under it; or
• acts to defraud His Majesty.

Notice of suspension (Regulations ss 10(2))

21. If the CRA suspends a person's registration, a written notice will immediately be sent to the person confirming the suspension and providing the grounds for the suspension.

Recourse (Regulations ss 10(3))

22. A person who has received notice that their registration has been suspended may, within 90 days from the date of suspension, provide information or make representations to the CRA regarding why the registration should be reinstated.

Reinstatement (Regulations s 11)

23. When the CRA is satisfied that the grounds for the suspension of the registration no longer exist, the registration will be reinstated.

Notice of cancellation (Regulations ss 12(2))

24. Before cancelling a registration (unless doing so at the request of the registrant), the CRA will provide the person 90 days' notice of the proposed cancellation, along with all relevant information concerning the grounds for the proposed action.

Recourse (Regulations ss 12(3))

25. A person who has received notice of the proposed cancellation of their registration may, within 90 days from the date of the notice, make representations to the CRA regarding why the registration should not be cancelled.

Further information