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| B.C. Reg. 66/2002 O.C. 244/2002 |
Deposited March 28, 2002 effective March 28, 2002, except section 8 (4) and (5); section 8 (4) and (5) effective October 1, 2002 |
| This archived regulation consolidation is current to April 21, 2006 and includes changes enacted and in force by that date. For the most current information, click here. |
Tobacco Tax Act
[includes amendments up to B.C. Reg. 46/2005, February 16, 2005]
1 In this regulation:
"Act" means the Tobacco Tax Act;
"black stock tobacco" means a package, carton or case of tobacco that is black stock tobacco within the meaning of the Excise Act, 2001 (Canada);
"carton" means a container in the form of a wrapper or paperboard box in which 15 or fewer packages of cigarettes are packed;
"case" means
(a) in relation to cigarettes, a container in which 25 or more cartons are packed,
(b) in relation to pre-proportioned tobacco sticks, a container in which no fewer than 10 packages are packed, and
(c) in relation to tobacco other than that referred to in paragraph (a) or (b), a container in which no fewer than 10 packages are packed;
"cigar wholesale dealer" means a dealer who holds a permit under the Act to sell cigars, but no other tobacco products;
"exempt consumer" means a consumer who is, by virtue of an enactment of British Columbia or Canada, not liable to pay the tax imposed by this Act;
"exempt sale retail dealer" means a dealer who holds an exempt sale retail dealer permit under the Act;
"exempted tobacco" means tobacco exempted from tax under this Act or under an Act of Parliament;
"indicium" means
(a) a mark on a package, carton or case, as specified in section 26,
(b) a mark on a package or case as specified in section 27, or
(c) a stamp on a package as specified in section 28;
"manufacturer" means a person who manufactures, fabricates, produces or packs in Canada packages, cartons and cases intended for distribution, sale or storage in British Columbia;
"mark-point" means a location authorized by the director for the purposes of marking or stamping packages, cartons or cases of tobacco;
"package" means
(a) in relation to cigarettes, a container in which 30 or fewer cigarettes are packed,
(b) in relation to pre-proportioned tobacco sticks, a container in which no fewer than 100 and no more than 300 pre-proportioned tobacco sticks are packed, and
(c) in relation to tobacco other than cigarettes, cigars, pre-proportioned tobacco sticks, pipe tobacco, snuff, chewing tobacco or raw leaf tobacco, a container in which no more than 500 grams of that tobacco is packed;
"special retail dealer" means a dealer who holds a special retail dealer permit under the Act;
"tear tape" means the ribbon that is wrapped around a package to facilitate the opening of the wrapping that encloses the package;
"unmarked tobacco" means a package, carton or case that is not marked or stamped with the indicium and is not black stock tobacco.
[am. B.C. Regs. 398/2003, s. (a); 46/2005.]
2 The following are established as classes of dealer's permits:
(a) the wholesale dealer permit;
(b) the cigar wholesale dealer permit;
(c) the special retail dealer permit;
(d) the exempt sale retail dealer permit.
3 (1) Subject to section 6, every person who is required under the Act to have a dealer's permit must make an application to the director, in the form specified for the purpose by the director, for the dealer's permit.
(2) A dealer's permit must be in the form specified for the purpose by the director.
4 (1) An application for a wholesale dealer permit must
(a) contain the name and address of the applicant, and
(b) be signed by
(i) the applicant,
(ii) one of the partners if the applicant is a partnership, or
(iii) an authorized officer if the applicant is a corporation.
(2) The applicant under subsection (1) must satisfy the director that the applicant has
(a) an arrangement that complies with subsection (3),
(b) a business plan acceptable to the director for the sale of tobacco at wholesale, and
(c) no outstanding tax liabilities under the Act other than a disputed liability that is being appealed under the Act.
(3) A person holding a wholesale dealer permit must acquire, over each 3 month period, at least 75% of that person's supply of resale inventory from manufacturers of tobacco or, in the case of imported tobacco, from an agent of the manufacturer, unless otherwise authorized by the director.
(4) Each wholesale dealer must imprint the number of the permit granted to that dealer under section 6 of the Act in a prominent place on each invoice, bill of sale or similar document used by the wholesale dealer for the sale of tobacco.
(5) A wholesale dealer permit may be suspended or cancelled by the director under section 7 of the Act if the director is satisfied that the dealer has not complied with the Act or these regulations.
(6) Every dealer to whom a wholesale dealer permit is issued is deemed to have been appointed a collector by the director.
5 (1) A person who only intends to sell cigars at wholesale must first obtain a cigar wholesale dealer permit.
(2) A person who holds a cigar wholesale dealer permit must not sell any tobacco other than cigars unless granted another permit under the Act.
(3) Section 4 applies to cigar wholesale dealer permits.
6 (1) Subject to subsections (4) and (5), a person who has a valid registration certificate issued under the Social Service Tax Act is authorized to sell tobacco at retail in British Columbia, and the registration certificate is deemed to be that person—s retail authorization.
(2) The authorization referred to in subsection (1) does not apply to black stock tobacco or unmarked tobacco.
(3) An authorization referred to in subsection (1) ceases to be valid if suspended or cancelled by the director under section 7 or 9 of the Act.
(4) A registration certificate issued to a person under the Social Service Tax Act does not authorize the person to sell tobacco at retail in British Columbia if
(a) the person previously held a retail authorization or permit that was cancelled or suspended, or
(b) the certificate is in respect of a location where a previous retail authorization or permit held by another person was suspended or cancelled by the director under section 7 or 9 of the Act.
(5) If subsection (4) applies, the first person may not sell tobacco unless he or she obtained written authorization from the director to sell tobacco at retail, and that written authorization is deemed to be the retail authorization under the Act.
(6) In providing a retail authorization under subsection (5), the director may make the authorization subject to the terms and conditions the director considers necessary to ensure compliance with the provisions of the Act and regulations.
[en. B.C. Reg. 53/2004.]
7 (1) If the minister has entered into an agreement with a band under section 43.1 of the Act, a person must not sell or offer to sell tobacco to a consumer on a reserve to which the agreement relates unless that person holds a special retail dealer permit.
(2) A person who holds an exempt sale retail dealer permit in respect of a place of business located on a reserve that is subject to an agreement under section 43.1 of the Act, must, on request of the director, return the exempt sale retail dealer permit to the director, and the director may issue to that person a special retail dealer permit.
8 (1) A person must not sell or offer to sell tobacco to a consumer without collecting the tax imposed by section 2 or 43.1 of the Act, unless that person holds an exempt sale retail dealer permit.
(2) An exempt sale retail dealer may be authorized by the director to sell to exempt consumers
(a) black stock tobacco,
(b) unmarked tobacco,
(c) one or more classes of unmarked tobacco specified by the director, or
(d) any combination of tobacco referred to in paragraph (a), (b) or (c).
(3) An exempt sale retail dealer who is authorized to sell black stock tobacco may purchase, possess, and store black stock tobacco or sell black stock tobacco to an exempt consumer, and an exempt sale retail dealer who is authorized to sell unmarked tobacco may purchase, possess, store unmarked tobacco or sell unmarked tobacco to an exempt consumer.
(4) Subject to subsection (5), an exempt sale retail dealer may not sell tobacco that bears the indicium without collecting the tax imposed by the Act.
(5) An exempt sale retail dealer may sell tobacco that bears the indicium to an exempt consumer without collecting the tax, if the exempt sale retail dealer receives the prior approval of the director to do so.
(6) The director may refuse to issue an exempt sale retail dealer permit to a person if the director is satisfied that there are sufficient dealers holding exempt sale retail dealer permits in the market area proposed to be served by the person applying for the exempt sale retail dealer permit.
(7) Despite section 11 (3) and (4),
(a) an exempt sale retail dealer permit may be restricted so as to authorize only one place at which black stock tobacco or unmarked tobacco may be sold, and
(b) a person may hold only one exempt sale retail dealer permit at one time.
(8) It is a condition of holding an exempt sale retail dealer permit that the dealer obtain, from each consumer to whom the dealer sells black stock tobacco, unmarked tobacco or tobacco referred to in subsection (5), information specified by the director that shows the consumer is an eligible exempt consumer.
(9) An exempt sale retail dealer permit ceases to be valid if suspended or cancelled by the director under section 7 or 9 of the Act.
9 (1) A dealer must not purchase, possess, store or sell black stock tobacco or unmarked tobacco unless
(a) the dealer
(i) intends to sell or sells the black stock tobacco or unmarked tobacco to an exempt sale retail dealer,
(ii) is an exempt sale retail dealer and intends to sell or sells black stock tobacco or unmarked tobacco to an exempt consumer, or
(iii) intends to ship the black stock tobacco or unmarked tobacco out of British Columbia for resale, and
(b) the dealer has written authorization from the director to purchase, possess, store and sell black stock tobacco or unmarked tobacco, as the case may be.
(2) A dealer who does not hold an exempt sale retail dealer permit authorizing the dealer to sell black stock tobacco must apply in writing to the director for authorization to purchase, possess, store or sell packages, cartons and cases of black stock tobacco.
(3) A dealer who does not hold an exempt sale retail dealer permit authorizing the dealer to sell unmarked tobacco must apply in writing to the director for authorization to purchase, possess, store or sell packages, cartons and cases of unmarked tobacco.
(4) An exempt sale retail dealer who is authorized to sell black stock tobacco or unmarked tobacco must not sell black stock tobacco or unmarked tobacco to any person other than an exempt consumer.
10 (1) An exempt sale retail dealer must not do either of the following:
(a) sell more than 400 grams of exempted tobacco in a day to a person;
(b) sell more than 1 600 grams of exempted tobacco in a month to a person.
(2) If an exempt sale retail dealer is advised by the director or is aware that a person has already purchased an amount of exempted tobacco in a day from one or more other exempt sale retail dealers, the exempt sale retail dealer must not sell an amount of exempted tobacco to that person that would, when added to the prior amounts sold during that day, exceed the amount referred to in subsection (1) (a).
(3) If an exempt sale retail dealer is advised by the director or is aware that a person has already purchased an amount of exempted tobacco in a month from one or more other exempt sale retail dealers, the exempt sale retail dealer must not sell an amount of exempted tobacco to that person that would, when added to the prior amounts sold during that month, exceed the amount referred to in subsection (1) (b).
(4) Despite subsections (1) to (3), an exempt sale retail dealer may sell more than the maximum amount permitted by subsection (1), (2) or (3) if, prior to the sale, the exempt sale retail dealer is advised by the director that the director is satisfied that the sale is a retail sale to an exempt consumer.
11 (1) A person must be actively in the business for which the permit or authorization applies in order to hold a dealer's permit or to be authorized under section 6.
(2) If the director is satisfied that a person has not complied with subsection (1) for a continuous period of 3 months within the immediately preceding 6 month period, the director may cancel or suspend the permit or authorization under section 7 of the Act.
(3) A dealer's permit must designate the principal place at which the business of the dealer is to be carried on, and must be displayed in a prominent position at that place.
(4) If a dealer carries on business at more than one place, the dealer must obtain a dealer's permit in respect of each place of business, which must be displayed in a prominent position at each place of business.
(5) If a dealer has a principal place of business and one or more branches the dealer may be granted a duplicate permit for each branch.
(6) If a dealer carries on business in British Columbia but has no fixed place of business in the Province, the dealer must carry the permit at all times when carrying on business in the Province, and must produce it at the request of a duly appointed representative of the director.
(7) If a dealer changes the dealer's name or address, the dealer must immediately return the permit to the director and apply for a new permit.
(8) If a dealer's permit has been lost or destroyed, the dealer must immediately report the loss or destruction to the director and must apply for a copy of the original permit.
(9) If a dealer ceases to carry on business in respect of which a permit has been issued, the permit becomes void and the dealer must return it to the director within 15 days of the date of the cessation.
(10) An exempt sale retail dealer must not sell or offer to sell tobacco to another dealer for the purpose of resale.
(11) A dealer must not purchase or offer to purchase tobacco for resale from an exempt sale retail dealer.
Part 2 — Collection and Remittance of Tax
12 (1) Every dealer who is not a collector, and who buys tobacco from a collector, must remit to the collector the tax collected under the Act.
(2) Every dealer who is not a collector and who buys tobacco from a person other than a collector, must remit to the director, as provided by section 16, the tax collected under the Act.
13 (1) Every collector must
(a) on or before the 20th day of each month in respect of the previous month, deliver to the director such return as the director requires,
(b) remit with the return required by paragraph (a) the amount of the tax and security as computed in the return, and
(c) provide with the return those records the director requires with respect to sales to exempt sale retail dealers.
(2) Despite subsection (1), an exempt sale retail dealer must, on or before the 10th day of each month or such later day in the month as is authorized by the director, in respect of the previous month,
(a) deliver to the director such return as the director requires, and
(b) provide with the return such record as the director requires of the sales made by the dealer that were exempted tobacco.
(3) Despite subsection (1), the director may, on application in writing, authorize a collector who maintains records so that the collector closes the books at the end of a period that does not coincide with a calendar month but that is not longer in duration than 5 weeks, to deliver the report and remit the tax required by subsection (1) on or before the 20th day following the end of the period.
(4) Despite subsection (1) or (2), the director may at any time require a collector or an exempt sale retail dealer to deliver a return, covering any period that the director determines, and the collector must remit to the director the tax collected during that period.
(5) If the director has authorized a collector to file a return under subsection (3), the collector must, on or before March 1 in each year, provide the director with a statement indicating the dates on which the collector will end each period during the following fiscal year.
(6) The fiscal year referred to in subsection (5) commences on April 1.
14 (1) Subject to this regulation, a collector may deduct from the tax payable remuneration of
(a) 3% on the first $10 000 of tax, and
(b) 0.375% on the balance of tax
collected from all places of business operated by the collector during the month in respect of which a return or returns are made.
(2) The remuneration deducted under subsection (1) must not exceed $10 000 for each successive 12 month period commencing,
(a) in the case of a collector who had a place of business in operation on July 29, 1983, with the date the return is filed in respect of July in any year, or
(b) in the case of a collector who had no place of business in operation on July 29, 1983, with the date the return is filed in respect of the first month of operation in any year.
(3) A collector must not deduct any remuneration for a month for which the collector fails to remit money collected at the time and in the manner provided in this regulation.
15 (1) At any time the rate of tax is changed, every dealer must take an inventory of all tobacco on hand on which the full amount of tax under the Act has not been paid.
(2) Each dealer must record the inventory taken pursuant to subsection (1) on the declaration form supplied by the director, and must forward the original copy of the declaration, together with all taxes due and payable on such inventory, to the director within 30 days of the date on which the rate of tax is changed.
(3) Subject to subsection (4), every dealer may deduct from the tax due and payable under subsection (2) a remuneration of 5% of the tax to be remitted.
(4) A dealer must not deduct any remuneration if the dealer fails to complete the inventory report or to remit the tax due and payable at the time and in the manner required by subsection (2).
16 Every dealer, who is not a collector, who buys tobacco from a person other than a collector must prepare a report giving particulars of the purchase and forward the report, together with all taxes collected with respect to the tobacco, to the director within 20 days of the retail sale of the tobacco.
17 Every consumer who brings tobacco into British Columbia must immediately prepare a report giving particulars of the import, and forward the report, together with all taxes due with respect to the tobacco, to the director.
18 (1) A dealer must keep, at the dealer's principal place of business, records and books of account in a form and containing information that will allow for the accurate determination of the tax collectable under the Act.
(2) A dealer must retain a record and book of account referred to in this section and all accounts or vouchers necessary to verify the information in the record or book of account for a period of 7 years.
(3) If a dealer makes a written application to the director for permission to destroy a record, book of account, account or voucher, the director may authorize the requested destruction prior to the expiry of the period described in subsection (2).
(4) Despite any other provision of this section, if a record, book of account, account or voucher might be necessary for the purposes of an appeal under section 23 or 24 of the Act, a dealer must retain the record, book of account, account or voucher after the expiry of the period described in subsection (2) and until all appeals under section 23 or 24 of the Act have been exhausted.
19 If tobacco is sold on credit, the tax must be imposed and collected when the contract is entered into, or the purchase made, and the first payment made by the purchaser is deemed to include the full amount of the tax, or, in the event that the first payment made is less than the full amount of the tax, is deemed to be made on account of the tax.
20 A person who is deemed to be a collector under section 4 (6) is not required to collect tax in respect of tobacco sold to another person who is deemed to be a collector under section 4 (6).
21 The minister or the director may, subject to the Act and the regulations, enter into agreements with collectors for the purpose of facilitating collection and payment of the tax.
22 (1) The amount of a refund to which a collector or a dealer is entitled under section 16 of the Act in respect of a sale of tobacco must be calculated in accordance with the following formula:
| WO | ||||
| R | = | TR | x |
|
| TAP | ||||
where
R = the amount of the refund to which the collector or dealer is entitled in
respect of the sale;TR = the tax remitted on the sale; WO = the amount of money remaining unpaid on the sale that was written off
as unrealizable or uncollectible, not including interest charges;TAP = the total amount payable on the sale including all applicable taxes, but
not including interest charges.
(2) Under section 16 (3) of the Act, a collector may deduct from the taxes the collector would otherwise be required to remit the amount of a refund to which the collector is entitled under section 16 (1) of the Act if the collector submits with the collector's tax return
(a) the name and address of the purchaser whose account has been written off,
(b) the amount of the sale and the tax involved,
(c) the date of the sale, and
(d) a statement that
(i) the amount of tax being deducted has been written off as unrealizable or uncollectible,
(ii) the collector is of the opinion that the amount of tax being deducted is unrealizable or uncollectible, and
(iii) the collector will, on recovering any part of the amount written off for which a refund is obtained or a deduction is taken under this subsection, remit to the director, by the 15th day of the month following the month in which the recovery is made, the proportion of the refund or deduction that the amount recovered bears to the amount written off.
(3) A collector or dealer who, under section 16 of the Act, obtains a refund or deducts the amount of the refund from the amount of taxes the collector is required to remit must retain all records of the sale in relation to which the tax was imposed until their disposal is authorized by the director.
(4) If a collector or dealer intends to apply for a refund under section 16 (1) of the Act, or a collector intends to deduct that refund from the amount of the taxes the collector is required to remit, the collector or dealer must do so as soon as possible after the collector or dealer has written off the collection of the tax.
Part 3 — Marking or Stamping of Packages, Cartons and Cases
23 (1) Subject to subsection (5), every manufacturer of tobacco for sale in British Columbia to a consumer who is liable to pay tax under the Act must mark each package, carton and case with an indicium as specified in sections 26 and 27.
(2) Subject to subsection (5), every dealer who imports into Canada tobacco for sale in British Columbia to a consumer who is liable to pay tax under the Act must stamp each package with an indicium as specified in section 28.
(3) Subject to subsection (6), if a dealer acquires unmarked tobacco from a person who has imported the tobacco into Canada and the tobacco is to be sold by the dealer in British Columbia to a consumer who is liable to pay tax under the Act, the dealer must stamp each package with an indicium as specified in section 28.
(4) Subsections (2) and (3) do not apply to a dealer who is a manufacturer of tobacco if the dealer has applied an indicium under subsection (1).
(5) A package, carton or case must not be marked or stamped with the indicium if
(a) the package, carton or case is manufactured or imported for the purpose of a retail sale in British Columbia that is not a taxable sale under the Act, and
(b) the dealer to whom the package, carton or case is to be sold is authorized by the director to sell black stock tobacco or unmarked tobacco.
(6) A manufacturer or dealer referred to under subsection (1), (2) or (3) must apply in writing to the director for authorization to mark or stamp packages, cartons and cases.
24 Every package, carton and case that a dealer provides to a person without charge, or for no consideration, must be marked or stamped with the indicium.
25 The director may do any one or more of the following:
(a) authorize a manufacturer to mark packages, cartons and cases;
(b) authorize a dealer to stamp packages;
(c) authorize a dealer to purchase, possess or store black stock tobacco or unmarked tobacco and to sell black stock tobacco or unmarked tobacco to an exempt sale retail dealer or an exempt consumer;
(d) impose reasonable conditions and restrictions that the director considers appropriate with respect to the marking or stamping of packages, cartons and cases;
(e) specify the number and location of mark-points that a manufacturer or dealer who is authorized to mark or stamp packages, cartons and cases may establish and operate;
(f) cancel or suspend an authorization to mark or stamp packages, cartons and cases if the director is satisfied that a manufacturer or dealer has not complied with the Act or the regulations.
26 (1) For the purposes of section 23, every package of cigarettes must be marked on the tear tape with an indicium that conforms to the following specifications:
(a) the indicium must read "CANADA DUTY PAID — DROIT ACQUITTÉ —BRITISH COLUMBIA — COLOMBIE BRITANNIQUE";
(b) the width of the indicium must not be less than 4.5 millimetres;
(c) the background colour of the indicium must be in pantone green 333, 100%;
(d) the colour of the text must be in process black, 100%;
(e) the text must be in Helvetica 8 point.
(2) In addition to the requirements under subsection (1), every carton of cigarettes and package of pre-proportioned tobacco sticks must be marked with an indicium that conforms to the following specifications:
(a) the indicium must read "BC — CB";
(b) the width of the indicium must not be less than 2.9 centimetres;
(c) the height of the indicium must not be less than 1.4 centimetres;
(d) the indicium must be surrounded by a border that is a thickness of 1.5 point;
(e) the background colour of the indicium must be in pantone green 333, 100%;
(f) the colour of the text and border must be process black, 100%;
(g) the text must be in Helvetica bold, not less than 12 point, upper case lettering.
(3) The indicium referred to in subsection (2) must be affixed or imprinted on each end sticker that seals the end flaps of the carton of cigarettes or package of pre-proportioned tobacco sticks, or if the carton or package is a paper box, at each end of the box.
(4) In addition to the requirements under subsections (1) and (2), every case of cigarettes or pre-proportioned tobacco sticks that contains packages must be marked by printing on the case the letters "BC — CB".
(5) The letters "BC — CB" referred to in subsection (4) must be printed on the top of any 2 opposite face sides of the case and must conform to the following specifications:
(a) the text must be 38.1 millimetres in height, upper case lettering;
(b) the colouring of the text must be process black, 100%.
27 (1) For the purposes of section 23 (1), every package of tobacco, other than those referred to in section 26 (1) and (2), must be marked with an indicium in accordance with subsection (2) or (3).
(2) For the purposes of subsection (1), every package that bears a tear-tape must be marked on the tear-tape with an indicium that conforms to the following specifications:
(a) the indicium must read "CANADA DUTY PAID — DROIT ACQUITTÉ —BRITISH COLUMBIA — COLOMBIE BRITANNIQUE";
(b) the width of the indicium must not be less than 4.5 millimetres;
(c) the background colour of the indicium must be pantone green 333, 100%;
(d) the colour of the text must be process black, 100%;
(e) the text must be in Helvetica 8 point.
(3) For the purposes of subsection (1), every package that does not bear a tear-tape must be marked on the stamp required under the Excise Act, 2001 (Canada) with an indicium that conforms to the following specifications:
(a) "BC" must appear before "DUTY PAID" and "CB" must appear before "DROIT ACQUITTÉ";
(b) the background colour of the indicium must be pantone green 333, 100%;
(c) the colour of the text must be process black, 100%;
(d) the text must be in Helvetica 8 point.
(4) In addition to the requirements of subsections (1) to (3), every case that contains packages described in subsection (1) must be marked by printing on the top of any 2 opposite face sides of the case the letters "BC — CB" that conform to the following specifications:
(a) the text must be 38.1 millimetres in height, upper case lettering;
(b) the colour of the text must be process black, 100%.
[am. B.C. Reg. 398/2003, s. (b).]
28 (1) For the purposes of section 23 (2) and (3), every package must be stamped with an indicium that conforms to the following specifications:
(a) the indicium must read "BRITISH COLUMBIA", below which there must be imprinted a serial number assigned by the director;
(b) the width of the indicium must not be less than 2.5 centimetres;
(c) the height of the indicium must not be less than 1.0 centimetre;
(d) the text must be Helvetica bold 9 point, upper case lettering, and the numbers must be in Helvetica bold 9 point.
(2) A dealer who is authorized by the director to stamp packages may apply to the director for a supply of indicia, in a quantity acceptable to the director, with which to stamp imported packages.
(3) The indicia referred to in subsection (2) remain the property of the Crown until the packages to which they are affixed are sold at retail sale.
29 (1) Every manufacturer and wholesale dealer must establish and maintain an accounting system, satisfactory to the director, that provides an accounting of the number of packages, cartons and cases that are
(a) marked with the indicium,
(b) unmarked, or
(c) black stock tobacco.
(2) Subsection (1) applies to packages, cartons and cases shipped to, stored in or sold in British Columbia by the manufacturer or the wholesale dealer.
(3) The accounting required by subsection (1) must be made in the form and manner specified by the director and at the times specified by the director.
(4) Every dealer who is authorized to stamp packages must account for all indicia received from the director as and when requested to do so by the director.
(5) A dealer must return, on the demand of the director, any indicia in the dealer's possession, including any indicia affixed to unsold packages, if
(a) the dealer's permit is suspended or cancelled, or
(b) the dealer ceases to sell imported packages.
30 (1) A dealer must not purchase, possess, store or sell packages, cartons or cases that bear the mark or stamp of another jurisdiction, unless
(a) the dealer intends to ship the packages, cartons or cases that bear the mark or stamp of another jurisdiction out of British Columbia for resale, and
(b) the dealer has written authorization from the director to purchase, possess, store or sell packages, cartons or cases that bear the mark or stamp of another jurisdiction.
(2) A dealer must not sell a package, carton or case to a consumer liable to pay tax under the Act unless the package, carton or case is marked or stamped in accordance with this regulation.
(3) A dealer must not stamp a package unless the dealer is authorized in writing by the director to stamp packages.
(4) A dealer must not store black stock tobacco or unmarked tobacco, or packages, cartons or cases that bear the mark or stamp of another jurisdiction, at a location other than a mark-point or another location authorized in writing by the director.
(5) A manufacturer or dealer must not mark or stamp packages, cartons or cases other than at a mark-point.
(6) A manufacturer must not sell unmarked tobacco or black stock tobacco to a dealer unless the dealer is authorized in writing by the director to sell unmarked tobacco or black stock tobacco, as the case may be.
(7) A person, other than an exempt sale retail dealer, must not do either of the following:
(a) purchase more than 400 grams of exempted tobacco per day;
(b) purchase more than 1 600 grams of exempted tobacco per month.
(8) Despite subsection (7), a person who is not an exempt sale retail dealer may purchase more than the maximum amount permitted by that subsection if, prior to the sale, the director is satisfied that the sale is a retail sale.
31 (1) For the purposes of sections 40 (4), 57 and 58 (1), (2) and (3) of the Act, the "prescribed mark or stamp" is the indicium.
(2) For the purposes of sections 51 (2) (b) and 54 (8) (a) (i) of the Act, the mark or stamp specified in the regulations is the indicium.
32 (1) Sections 51 (2) and 54 (8) (a) (i) of the Act do not apply to
(a) black stock tobacco that is or was found in the possession of a dealer authorized to purchase, posses, store or sell black stock tobacco, or
(b) unmarked tobacco that is or was found in the possession of a dealer authorized to purchase, posses, store or sell unmarked tobacco.
(2) Section 54 (8) (a) (i) of the Act does not apply in circumstances where the quantity of tobacco is less than 1 000 grams.
33 For the purposes of section 51 (2) of the Act, the maximum quantity of tobacco that an official may seize and remove is 10 000 grams.
34 Interest payable under the Act must be
(a) compounded monthly, and
(b) calculated on the number of days since the last compounding of interest, or if no compounding has yet occurred, from the date that interest is payable under the Act.
35 (1) A person who contravenes section 7 (1), 8 (1), (4), (7) or (8), 9 (1) or (4), 10 (1) to (3), 11 (4), (6) to (11), 12, 13 (1) to (5), 15 (1), (2) or (4), 16, 17, 18 (1), (2) or (4) 19, 23, 24 or 30 commits an offence and is liable to the penalty set out in subsection (2).
(2) A person who commits an offence is liable
(a) on a first conviction, to a fine of not less than $500 and not more than $1 000, or to a term of imprisonment of not less than one month and not more than 3 months, or to both fine and imprisonment, and
(b) on a subsequent conviction for the same or another provision of this regulation, to a fine of not less than $500 and not more than $2 000, or to a term of imprisonment of not less than 3 months and not more than 6 months, or to both fine and imprisonment.
Note: this regulation replaces B.C. Reg. 83/71
[Provisions of the Tobacco Tax Act, R.S.B.C. 1996, c. 452 relevant to the enactment of this regulation: section 44]
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