2 (1) Every consumer shall pay to Her Majesty in right of Ontario a tax at the rate of 11.1 cents on every cigarette and on every gram or part gram of a tobacco product, other than cigarettes and cigars, purchased by the consumer.  2004, c. 7, s. 20 (1); 2011, c. 15, s. 2 (1). (1.1), (1.1.1) Repealed:  2004, c. 7, s. 20 (2). (1.2) Repealed:  2004, c. 7, s. 20 (3). (1.3), (1.4) Repealed:  2004, c. 7, s. 20 (4). Tax for cigars (1.5) Every consumer shall pay to Her Majesty in right of Ontario a tax on every cigar purchased by the consumer at the rate of 56.6 per cent of the taxable price of the cigar.  2000, c. 42, s. 98 (2); 2002, c. 8, Sched. M, s. 1 (4). Fraction of a cent (1.6) If an amount of tax calculated under subsection (1.5) is a fraction of a cent, the fraction shall be counted as a full cent.  2000, c. 42, s. 98 (2). Taxable price of cigar (1.7) For the purposes of subsection (1.5), the taxable price of a cigar is the sum of the following amounts: 1.  The price for which the cigar was purchased by its retail dealer, including the value in terms of Canadian money of any other consideration accepted by the wholesaler from whom the cigar passed as or on account of the price of the cigar. 2.  The cost of, or charges for, customs and mailing, delivery or transportation, whether or not they are shown separately in the books of the wholesaler or on any invoice or in the computation of the price, or whether or not title has passed to the retail dealer before delivery to the retail dealer. 3.  The amount of the tax imposed under the Excise Tax Act (Canada), other than the tax imposed by Part IX of that Act, or the duty imposed under the Excise Act
(Canada) in respect of the cigar or in respect of the sale or acquisition of the cigar. 4.  The amount determined by multiplying the prescribed percentage by the sum of the amounts described in paragraphs 1, 2 and 3.  2000, c. 42, s. 98 (2). Same (1.8) Despite subsection (1.7), if the retail dealer of the cigar also operates as a wholesaler, importer or manufacturer of cigars, for the purposes of subsection (1.5), the taxable price of the cigar is equal to the price that the consumer is deemed to have paid for the cigar under subsection (1.9). 2015, c. 38, Sched. 21, s. 1. Same (1.9) For the purposes of subsection (1.8), the price that the consumer is deemed to have paid for the cigar is the sum of the following amounts: 1.  The price for which the cigar was purchased by the consumer including the value in terms of Canadian money of any other consideration accepted as or on account of the price of the cigar by the retail dealer of the cigar. 2.  The cost of, or charges for, customs and mailing, delivery or transportation, whether or not they are shown separately in the books of the retail dealer or on any invoice or in the computation of the price, or whether or not title has passed to the consumer before delivery to the consumer. 3.  The amount of the tax imposed under the Excise Tax Act (Canada), other than the tax imposed by Part IX of that Act, or the duty imposed under the Excise Act (Canada) in respect of the cigar or in respect of the sale or acquisition of the cigar.  2000, c. 42, s. 98 (2). Collection of tax (2) The tax imposed by this Act shall be collected from the consumer by the retail dealer as agent of the Minister at the time of the sale to the consumer and shall be remitted by the retail dealer to the Minister at the time and in the manner provided under this Act.  R.S.O. 1990, c. T.10, s. 2 (2). Determination of taxable price of a cigar (2.1) If the Minister considers that any of the amounts in a retail dealer’s records for the matters described in paragraph 1 or 2 of subsection (1.7) or paragraph 1 or 2 of subsection (1.9) is artificially low or if the price referred to in paragraph 1 of subsection (1.7) or paragraph 1 of subsection (1.9) is below a reasonable wholesale market price, the Minister may determine the amount for the purpose of taxation under this Act and for the purpose of the applicable paragraph of subsection (1.7) or (1.9), unless it is established in an appeal under section 22 that the amount determined by the Minister is unreasonable.  2000, c. 42, s. 98 (3). Regulations re tax rates (2.2) The Minister may make regulations prescribing rates of tax that are different from those specified in this section.  2004, c. 7, s. 20 (5). Same (2.3) A regulation made under subsection (2.2) may provide for different rates of tax on different kinds of tobacco products as may be prescribed by the Minister.  2004, c. 7, s. 20 (5); 2011, c. 15, s. 2 (2). MPPs not disqualified (3) No person acting as agent under subsection (2) shall thereby be made ineligible as a member of the Assembly.  R.S.O. 1990, c. T.10, s. 2 (3). Amounts in lieu of tax (4) Where any person selling tobacco products receives any payment made as or in lieu of the tax payable under this Act, such payment shall be dealt with and accounted for as tax under this Act, and any person who fails to deal with and account for such payment in accordance with this Act and the regulations is liable to the same penalties and fines, and is guilty of the same offences, as would apply if the payment were the tax payable under this Act, and the Minister may collect and receive such payment by the same remedies and procedures as are provided by this Act or the regulations for the collection and enforcement of the tax payable under this Act and, for the purposes of the assessment and collection of such payment, the person receiving such payment as or in lieu of the tax payable under this Act is deemed to be a collector.  R.S.O. 1990, c. T.10, s. 2 (4); 2011, c. 15, s. 2 (3). Assignment of book debts (5) Where a collector or a registered importer has made an assignment of their book debts, whether by way of specific or general assignment, or in any other manner disposes of their present or future right to collect their book debts, the assignment does not include the portion of the book debts that the collector or importer, as agent for the Minister, charged the person to whom the collector or importer sold the tobacco product as tax under this Act, and any such assignee or any other person who collects the book debts shall be deemed to be a collector under this Act and shall collect, remit and account under this Act and the regulations for the unassigned portion.  R.S.O. 1990, c. T.10, s. 2 (5); 2011, c. 15, s. 2 (4). Liability for tax (6) Every consumer is liable for the tax imposed by this Act until the consumer has paid it.  R.S.O. 1990, c. T.10, s. 2 (6). Offence (7) Every person who knowingly fails to pay tax as imposed by this section at the time the person is required to do so is guilty of an offence and on conviction is liable to a fine of not less than $500 and not more than three times the amount of the tax payable by that person.  2004, c. 7, s. 20 (6). Penalty (7.1) Every person who knowingly fails to pay tax as imposed by this section at the time the person is required to do so shall pay a penalty, when assessed for it, equal to the sum of, (a)  three times the amount of the tax payable by that person; and (b)  the amount of, (i)  $500 if the person has not been previously assessed a penalty under this subsection or under subsection 24 (12), 29 (19) or (20), 29.1 (6) or (7), 34 (2) or 34.0.1 (2), (ii)  $2,500 if the person has previously been assessed a penalty under this subsection or under subsection 24 (12), 29 (19) or (20), 29.1 (6) or (7), 34 (2) or 34.0.1 (2), but has not been previously assessed more than one penalty in total, (iii)  $5,000 if the person has previously been assessed more than one penalty in total under this subsection and under subsection 24 (12), 29 (19) or (20), 29.1 (6) or (7), 34 (2) or 34.0.1 (2).  2008, c. 19, Sched. W, s. 1 (2); 2011, c. 15, s. 2 (5-7). Offence (8) Every person who fails to comply with subsection (2) is guilty of an offence and on conviction is liable to a fine of not less than $1,000 and not more than $50,000.  R.S.O. 1990, c. T.10, s. 2 (8); 2004, c. 7, s. 20 (7). Section Amendments with date in force (d/m/y) 1996, c. 18, s. 19 - 18/05/1996 2000, c. 42, s. 98 (2, 3) - 01/08/2001 2002, c. 8, Sched. M, s. 1 (1-4) - 18/06/2002 2003, c. 7, s. 18 (1-3)
- 25/11/2003 2004, c. 7, s. 20 (1-4) - 19/05/2004; 2004, c. 7, s. 20 (5-7) - 17/06/2004 2008, c. 19, Sched. W, s. 1 (1, 2) - 27/11/2008 2011, c. 15, s. 2 (1-4)
- 01/06/2011; 2011, c. 15, s. 2 (5-7) - 01/04/2013 2015, c. 38, Sched. 21, s. 1 - 10/12/2015