News and Insights

CRA Issues New Excise Tax Memoranda

Tax Development Aug 01, 2013

The Canada Revenue Agency ("CRA") recently issued two new memoranda, and updated an existing one, concerning how to file and pay excise taxes under Part III of the Excise Tax Act (“ETA”).

Excise Taxes and Special Levies Memorandum X3.1, “Goods Subject to Excise Tax”, explains the application of excise tax under Part III of the ETA to specific goods listed in Schedule I of that act.  The goods enumerated in Schedule I are subject to excise tax, in addition to GST/HST, when they are imported into Canada or manufactured and delivered to a purchaser in Canada.

Excise Taxes and Special Levies Memorandum X3.2, “Liability for Tax”, discusses the liability for payment and collection of excise tax created when goods listed under Schedule I of the ETA are imported or produced and sold in Canada.  The memorandum explains who is liable to pay excise tax and describes circumstances in which excise tax is not payable.

Excise Taxes and Special Levies Memorandum X6.2, “Returns and Payments”, provides information on reporting periods, filing returns and making payments, as well as a discussion on the potential application of interest and penalties, for persons who are responsible for paying excise tax.