Liquor Tax Act, 1996

1 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 1 (1, 2) - 15/12/2009 2011, c. 1, Sched. 1, s. 1 (1) - 01/07/2011 2015, c. 38, Sched. 9, s. 45 (1) - 01/04/2016 2018, c. 12, Sched. 2, s. 50 (2, 3) - 16/11/2018 2019, c. 15, Sched. 1, s. 18 - 29/11/2021 2020, c. 36, Sched. 2, s. 1 (1, 2) - 06/07/2021

1.1 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2019, c. 15, Sched. 1, s. 18 - 29/11/2021 2020, c. 36, Sched. 2, s. 2 - 06/07/2021

2 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2006, c. 34, s. 27 - 20/12/2006 2017, c. 20, Sched. 8, s. 63 (1) - 19/10/2021 2019, c. 15, Sched. 1, s. 18 - 29/11/2021 2020, c. 36, Sched. 2, s. 3 - not in force

3 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2006, c. 34, s. 1 (1) - 01/07/2007 2015, c. 38, Sched. 9, s. 45 (2) - 01/04/2016 2018, c. 12, Sched. 2, s. 50 (4, 5) - 16/11/2018 2019, c. 15, Sched. 1, s. 18 - 29/11/2021 2020, c. 36, Sched. 2, s. 4 - 06/07/2021

4. Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2011, c. 1, Sched. 1, s. 1 (2) - 30/03/2011 2019, c. 15, Sched. 1, s. 18 - 29/11/2021

4.1, 4.2 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2019, c. 15, Sched. 1, s. 18 - 29/11/2021 2020, c. 36, Sched. 2, s. 5 - 06/07/2021

5 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2019, c. 15, Sched. 1, s. 18 - 29/11/2021 2020, c. 36, Sched. 2, s. 6 - 06/07/2021

6 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2015, c. 38, Sched. 9, s. 45 (3) - 01/04/2016 2018, c. 12, Sched. 2, s. 50 (6) - 16/11/2018 2019, c. 15, Sched. 1, s. 18 - 29/11/2021

6.1 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2019, c. 15, Sched. 1, s. 18 - 29/11/2021 2020, c. 36, Sched. 2, s. 7 (1) - 06/07/2021; 2020, c. 36, Sched. 2, s. 7 (2) - 19/10/2021

7 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2019, c. 15, Sched. 1, s. 18 - 29/11/2021

7.1 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2019, c. 15, Sched. 1, s. 18 - 29/11/2021 2020, c. 36, Sched. 2, s. 8 - 06/07/2021

8 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2002, c. 18, Sched. E, s. 1 - 28/02/2003 2009, c. 34, Sched. A, s. 2 (1, 2) - 15/12/2009 2019, c. 15, Sched. 1, s. 18 - 29/11/2021

8.1 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2019, c. 15, Sched. 1, s. 18 - 29/11/2021 2020, c. 36, Sched. 2, s. 9 - 06/07/2021

9 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2017, c. 34, Sched. 46, s. 4 - 01/01/2018 2019, c. 15, Sched. 1, s. 18 - 29/11/2021

10 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2017, c. 34, Sched. 46, s. 4 - 01/01/2018 2019, c. 15, Sched. 1, s. 18 - 29/11/2021

11 Repealed: 2011, c. 1, Sched. 1, s. 1 (3). Section Amendments with date in force (d/m/y) 2011, c. 1, Sched. 1, s. 1 (3) - 01/07/2011

12 Repealed: 2011, c. 1, Sched. 1, s. 1 (3). Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 3 - 15/12/2009 2011, c. 1, Sched. 1, s. 1 (3) - 01/07/2011

13 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2016, c. 5, Sched. 2, s. 1 (1, 2) - 19/04/2016 2018, c. 12, Sched. 2, s. 50 (7, 8) - 16/11/2018 2019, c. 15, Sched. 1, s. 18 - 29/11/2021

14 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 4 - 15/12/2009 2011, c. 1, Sched. 1, s. 1 (4) - 30/03/2011 2015, c. 38, Sched. 9, s. 45 (4) - 01/04/2016 2019, c. 15, Sched. 1, s. 18 - 29/11/2021

14.1 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2006, c. 34, s. 1 (2) - 1/07/2007 2011, c. 1, Sched. 1, s. 1 (5, 6) - 30/03/2011; 2011, c. 1, Sched. 1, s. 1 (7) - 01/07/2011 2015, c. 38, Sched. 9, s. 45 (5) - 01/04/2016 2018, c. 12, Sched. 2, s. 50 (9) - 16/11/2018 2019, c. 15, Sched. 1, s. 18 - 29/11/2021 2020, c. 36, Sched. 2, s. 10 (1, 2) - 06/07/2021

15 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 5 - 15/12/2009 2011, c. 1, Sched. 1, s. 1 (8) - 30/03/2011 2019, c. 15, Sched. 1, s. 18 - 29/11/2021

16 Repealed: 2019, c. 15, Sched. 1, s. 18. Section Amendments with date in force (d/m/y) 2006, c. 34, s. 1 (3, 4) - 01/07/2007 2009, c. 34, Sched. A, s. 6 - 15/12/2009 2017, c. 20, Sched. 8, s. 63 (2) - 19/10/2021 2019, c. 15, Sched. 1, s. 18 - 29/11/2021 2020, c. 36, Sched. 2, s. 11 - 06/07/2021

Part II Tax on beer, wine and spirits

Division A — Interpretation and Obligation to Pay Tax

17 (1) In this Act, “adjustment date” means a date in a year prescribed for the purposes of section 26; (“date de rajustement”) “agency store” means a retail store operated by an agent of the LCBO pursuant to paragraph 1 of section 3 of the Liquor Control Board of Ontario Act, 2019; (“magasin-agence”) “beer” means a beverage that is beer for the purposes of the Liquor Licence and Control Act, 2019; (“bière”) “beer manufacturer” means the holder of a manufacturer’s licence to sell that authorizes the sale of beer; (“fabricant de bière”) “brew pub” means premises for which the licensee holds a licence with a brew pub endorsement; (“bistrot-brasserie”) “collector” means a licensee that is permitted to sell liquor, an agency store, an operator of a secondary location of a brew pub or, if it remits taxes to the Minister, an affiliate of a winery; (“percepteur”) “Commission” means the Alcohol …

18 Every purchaser who purchases liquor in Ontario shall pay taxes in respect of the purchase at the time of the purchase to the Crown in right of Ontario in accordance with this Act, unless otherwise provided in this Act or the regulations. 2009, c. 34, Sched. A, s. 7; 2016, c. 37, Sched. 1, s. 3; 2019, c. 15, Sched. 2, s. 2, 6. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2016, c. 37, Sched. 1, s. 3 - 08/12/2016 2019, c. 15, Sched. 2, s. 2, 6 - 29/11/2021 Exemption for promotional distribution

18.1 (1) A beer manufacturer and its affiliates are not subject to tax under this Act on a maximum of 10,000 litres of beer that is distributed by any of them in Ontario without charge during a sales year. 2011, c. 9, Sched. 2, s. 2; 2019, c. 15, Sched. 2, s. 7 (1). (2) Repealed: 2016, c. 37, Sched. 1, s. 4 (1). Licensee of a brew pub (3) A licensee of a brew pub and its affiliates are not subject to tax under this Act on a maximum of 10,000 litres of beer made at the brew pub that is distributed by any of them in Ontario without charge during a sales year. 2011, c. 9, Sched. 2, s. 2; 2019, c. 15, Sched. 2, s. 7 (1). (4) Repealed: 2016, c. 37, Sched. 1, s. 4 (2). Winery (5) A winery and its affiliates are not subject to tax under this Act on a maximum of 10,000 litres of wine and wine cooler that is distributed by any of them in Ontario without charge during any 12-month period that begi…

19 No person who is subject to tax under this Act is exempt from any tax payable under this Act by reason of an exemption granted to the person or to or in respect of the personal property of the person by or under another Act, unless the provision of the other Act expressly states that the exemption is from tax under this Act. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2019, c. 15, Sched. 2, s. 2 - 29/11/2021

Division B — Calculation of Tax

20 Repealed: 2019, c. 15, Sched. 2, s. 8. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2010, c. 26, Sched. 1, s. 2 - 08/12/2010 2016, c. 37, Sched. 1, s. 5 - 08/12/2016 2019, c. 15, Sched. 2, s. 8 - 29/11/2021

beer

21 (1) A purchaser who purchases beer shall pay a basic tax in respect of the purchase, calculated at the basic tax rate. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 9 (1). Basic tax rate (2) The basic tax rate for the purposes of subsection (1) is, (a) 90 cents per litre for draft beer or, if that rate has been adjusted under section 26, the rate most recently calculated under that section; or (b) $1.18 per litre for non-draft beer or, if that rate has been adjusted under section 26, the rate most recently calculated under that section. 2019, c. 15, Sched. 2, s. 9 (2); 2026, c. 2, Sched. 9, s. 2. (3) Repealed: 2019, c. 15, Sched. 2, s. 9 (3). Transition, after change in tax rate (4) Despite subsections (1) and (2) and section 22, if the beer sold to the purchaser was received by the collector before an adjustment date and then sold to the purchaser on or after the adjustment …

22 (0.1) In this section, “brewer” means any person that manufactures beer. 2019, c. 15, Sched. 2, s. 10 (1). Exception, beer made by microbrewer (1) Despite section 21, the following is the basic tax rate in respect of the purchase of beer manufactured by a brewer that is a microbrewer for the sales year in which the beer is sold, other than in respect of the purchase of beer manufactured for a brewer that is not a microbrewer: 1. For draft beer, the rate determined by subtracting 54 cents from the basic tax rate per litre for draft beer under section 21 that is in effect at the time of the purchase. 2. For non-draft beer, the rate determined by subtracting 72 cents from the basic tax rate per litre for non-draft beer under section 21 that is in effect at the time of the purchase. 2010, c. 1, Sched. 1, s. 1 (1); 2015, c. 20, Sched. 1, s. 3 (1); 2017, c. 8, Sched. 1, s. 1 (1); 2019, c. 1…

23 Repealed: 2026, c. 2, Sched. 9, s. 4. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2019, c. 15, Sched. 2, s. 11 - 29/11/2021 2023, c. 8, Sched. 6, s. 2 - 29/11/2021 2026, c. 2, Sched. 9, s. 4 - 01/04/2026

24 Repealed: 2026, c. 2, Sched. 9, s. 4. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2019, c. 15, Sched. 2, s. 12 - 29/11/2021 2023, c. 8, Sched. 6, s. 3 - 29/11/2021 2026, c. 2, Sched. 9, s. 4 - 01/04/2026

25 (1) Despite section 21, a purchaser of draft beer that was made at a brew pub in Ontario by the holder of the licence with a brew pub endorsement for that brew pub shall pay the basic tax referred to in subsection (2) in respect of the purchase if the beer is purchased at the brew pub or at a secondary location related to the brew pub. 2019, c. 15, Sched. 2, s. 13 (1). Basic tax rate (2) The basic tax rate for the purposes of subsection (1) is 33.41 cents per litre or, if that rate has been adjusted under section 26, the rate most recently determined under that section. 2019, c. 15, Sched. 2, s. 13 (2). Secondary location related to brew pub (3) A place is a secondary location related to a brew pub for the purposes of this Act if the following conditions are satisfied: 1. Draft beer made at the brew pub is sold to a purchaser at the place. 2. The place is not part of the brew pub. 3. …

25.1 (1) If a collector sells beer to a purchaser on or after April 1, 2026 and the beer was received by a collector before April 1, 2026, the tax payable by the purchaser shall be calculated using the taxes and rates that were in effect on March 31, 2026. 2026, c. 2, Sched. 9, s. 5. Same (2) If, on or after April 1, 2026 and before the day on which the Plan to Protect Ontario Act (Budget Measures), 2026 receives Royal Assent, a collector collects an amount on account of tax under section 30 in respect of beer or a purchaser pays tax imposed under this Act in respect of the purchase of beer and if subsection (1) does not apply to the beer in respect of which the tax is collected or paid, the following rules apply: 1. The amount by which the amount collected or paid under this Act as it read immediately before being amended by Schedule 9 to the Plan to Protect Ontario Act (Budget Measures…

26 (1) The Minister may, by regulation, prescribe a date in a year as of which the basic tax rates for the purposes of sections 21 and 25 shall be adjusted in accordance with this section. 2019, c. 15, Sched. 2, s. 14 (1). (1.1), (1.2) Repealed: 2019, c. 15, Sched. 2, s. 14 (2). Calculation of basic tax rates (2) The basic tax rates, expressed in cents per litre, effective as of the date prescribed by the Minister under subsection (1) shall be calculated using the formula, A + (A × B) in which, “A” is the basic tax rate in effect immediately before the date prescribed by the Minister, and “B” is the index factor calculated under subsection (2.1). 2019, c. 15, Sched. 2, s. 14 (3). Index factor (2.1) For the purposes of subsection (2), the index factor is the greater of zero and the value calculated using the following formula, rounded to the nearest one-thousandth: [(C/D + D/E + E/F) / 3]…

wine and wine cooler

27 (1) Repealed: 2024, c. 12, Sched. 6, s. 1 (1). (1.1) Repealed: 2023, c. 8, Sched. 6, s. 4 (2). Other wine or wine cooler (2) A purchaser who purchases from an onsite winery retail store wine that is not Ontario wine or wine cooler that is not Ontario wine cooler shall pay a basic tax in respect of the purchase at the basic tax rate of 19.1 per cent of the retail price of the wine or wine cooler. 2020, c. 36, Sched. 2, s. 13; 2023, c. 8, Sched. 6, s. 4 (3). Same, purchases from offsite winery retail stores (2.1) A purchaser who purchases from an offsite winery retail store wine or wine cooler manufactured by the owner of the offsite winery retail store shall pay a basic tax in respect of the purchase at the basic tax rate of 12 per cent of the retail price of the wine or wine cooler. 2023, c. 8, Sched. 6, s. 4 (4). (2.2) Repealed: 2026, c. 2, Sched. 9, s. 6 (1). Retail price of wine or…

28 Repealed: 2026, c. 2, Sched. 9, s. 7. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2016, c. 5, Sched. 2, s. 4 - 19/04/2016 2019, c. 15, Sched. 2, s. 4 - 29/11/2021 2023, c. 8, Sched. 6, s. 5 - 01/07/2023 2026, c. 2, Sched. 9, s. 7 - 01/04/2026

29 Repealed: 2026, c. 2, Sched. 9, s. 7. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2016, c. 5, Sched. 2, s. 5 - 19/04/2016 2019, c. 15, Sched. 2, s. 4 - 29/11/2021 2023, c. 8, Sched. 6, s. 6 - 01/07/2023 2026, c. 2, Sched. 9, s. 7 - 01/04/2026

spirits Basic tax

29.1 (1) A purchaser who purchases spirits from a distillery retail store shall pay a basic tax in respect of the purchase at the basic tax rate of, (a) 20 per cent of the retail price of the spirits, if the spirits contain 7.1 per cent alcohol by volume or less; (b) 25 per cent of the retail price of the spirits, if the spirits contain more than 7.1 per cent alcohol by volume but not more than 18 per cent alcohol by volume; or (c) 30.75 per cent of the retail price of the spirits, if the spirits contain more than 18 per cent alcohol by volume. 2026, c. 2, Sched. 9, s. 8. Retail price of spirits (2) The retail price of spirits sold to a purchaser from a distillery retail store is the amount calculated using the formula, (A – B – C) ÷ (1 + D) in which, “A” is the amount charged to the purchaser, “B” is the amount of any deposit on the container containing the spirits that is required to b…

Transition, Wine and Spirits

29.2 If, on or after April 1, 2026 and before the day on which the Plan to Protect Ontario Act (Budget Measures), 2026 receives Royal Assent, a purchaser pays tax imposed under this Act in respect of the purchase of wine, wine cooler or spirits, the amount by which the amount paid under this Act, as it read immediately before being amended by Schedule 9 to the Plan to Protect Ontario Act (Budget Measures), 2026, exceeds the amount of tax that the purchaser would have had to pay under this Act, as amended by that Schedule, is deemed not to have been paid as a tax but rather to have been paid as part of the purchase price otherwise owing in respect of the wine, wine cooler or spirits. 2026, c. 2, Sched. 9, s. 9. Section Amendments with date in force (d/m/y) 2016, c. 37, Sched. 1, s. 8 - 08/12/2016 2019, c. 15, Sched. 2, s. 17 - 29/11/2021 2026, c. 2, Sched. 9, s. 9 - 01/04/2026

29.3 Repealed: 2026, c. 2, Sched. 9, s. 10. Section Amendments with date in force (d/m/y) 2016, c. 37, Sched. 1, s. 8 - 08/12/2016 2026, c. 2, Sched. 9, s. 10 - 01/04/2026

alcohol refreshment beverages

29.4 (1) Despite sections 21 to 29.1, if so prescribed by the regulations, a tax otherwise payable under any of those sections does not apply in respect of an alcohol refreshment beverage and instead the prescribed alternate rate or rates of tax apply. 2025, c. 10, Sched. 11, s. 3; 2026, c. 2, Sched. 9, s. 11. Interpretation (2) For the purposes of subsection (1) and clause 71 (2) (f.1), a reference to “alcohol refreshment beverage” refers to any liquor that contains no more than 7.1 per cent alcohol by volume and is, (a) except as may be prescribed by the regulations, a ready-to-consume cooler, hard seltzer or other premixed cocktail made from spirits, wine, beer or fermented sugar, or from any combination of the four; or (b) a specified type or combination or mixture of liquor as may be prescribed by the regulations. 2025, c. 10, Sched. 11, s. 3. Section Amendments with date in force (…

Division C — Tax Collection and Remittance

beer Tax collection and remittance

30 (1) Every collector that sells or delivers liquor to a purchaser in Ontario shall, as agent of the Minister, collect at the time of the sale or delivery all taxes imposed under this Act on the purchaser in respect of the purchase of the liquor. 2019, c. 15, Sched. 2, s. 18 (2). Same (2) Every collector shall, on the sale or delivery of liquor to another collector, collect from that collector at the time of the sale or delivery, as agent of the Minister, an amount on account of all taxes imposed under this Act on a purchaser in respect of the purchase of the liquor. 2019, c. 15, Sched. 2, s. 18 (2). Remittance by collector (3) Every collector that purchases or receives delivery of liquor from another collector shall pay to that collector an amount on account of all taxes imposed under this Act on a purchaser in respect of the purchase of the liquor. 2019, c. 15, Sched. 2, s. 18 (2). Re…

30.1 Repealed: 2019, c. 15, Sched. 2, s. 19. Section Amendments with date in force (d/m/y) 2010, c. 1, Sched. 1, s. 4 - 01/07/2010 2019, c. 15, Sched. 2, s. 19 - 29/11/2021

30.2 Repealed: 2019, c. 15, Sched. 2, s. 19. Section Amendments with date in force (d/m/y) 2016, c. 37, Sched. 1, s. 9 - 08/12/2016 2019, c. 15, Sched. 2, s. 19 - 29/11/2021

31 Repealed: 2019, c. 15, Sched. 2, s. 19. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2010, c. 1, Sched. 1, s. 5 (1, 2) - 01/07/2010; 2010, c. 26, Sched. 1, s. 8 - 08/12/2010 2016, c. 5, Sched. 2, s. 6 - 19/04/2016 2019, c. 15, Sched. 2, s. 2, 4, 19 - 29/11/2021

payments in lieu of tax

31.1 The following rules apply if a person sells liquor and receives any payment made as or on account of the tax payable under this Act: 1. The person must deal with and account for the payment as tax under this Act. 2. If the person fails to deal with and account for the payment in accordance with this Act and the regulations, the person 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. 3. The Minister may collect and receive the payment using the same remedies and procedures that are provided by this Act and the regulations for the collection and enforcement of the tax payable under this Act. 4. For the purposes of the assessment and collection of the payment, the person receiving the payment is deemed to be a collector for the purposes of Division D. 2010, c. 26, Sched. 1, s. 9; 2016, c. 3…

Division D — Administration

32 Repealed: 2015, c. 20, Sched. 1, s. 5. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 Tax held in trust

33 (1) In this section, “secured creditor” means a person who has a security interest in the property of another person or who acts for or on behalf of that person with respect to the security interest, and includes a trustee appointed under a trust deed relating to a security interest, a receiver or receiver-manager appointed by a secured creditor or by a court on the application of a secured creditor and any other person performing a similar function; (“créancier garanti”) “security interest” means any interest in property that secures payment or performance of an obligation, and includes an interest created by or arising out of a debenture, mortgage, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whenever arising, created or deemed to arise or otherwise provided for, but does not include a security interest prescribed by the Minister as one to whic…

34 (1) The Minister may require a collector to deposit with the Minister security in a form and of a kind acceptable to the Minister. 2009, c. 34, Sched. A, s. 7. Minister may apply security (2) If a collector that has deposited security with the Minister under subsection (1) fails to collect or remit an amount as or on account of tax as required under this Act, (a) the Minister may apply the security in whole or in part to the amount that should have been collected or remitted; and (b) if the Minister takes the action described in clause (a), the Minister shall forthwith give written notice of the action to the collector by registered mail or personal service. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2019, c. 15, Sched. 2, s. 2 - 29/11/2021

35 If a collector makes an assignment of its book debts, whether by way of specific or general assignment, or in any other manner disposes of its present or future right to collect its book debts, the assignment does not include the portion of the book debts that the collector, as agent for the Minister, charged the person to whom the collector sold the liquor as or on account of tax, and any such assignee or any other person who collects the book debts is deemed to be a collector under this Division and shall collect, remit and account under this Act and the regulations for the unassigned portion. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2, 21. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2019, c. 15, Sched. 2, s. 2, 4, 21 - 29/11/2021

36 (1) Every collector required under Division C to collect tax or an amount on account of tax shall, if required to do so by the regulations, deliver a return to the Minister in accordance with the regulations. 2009, c. 34, Sched. A, s. 7. Extended time for submitting returns (2) The Minister may enlarge the time for submitting a return before or after the time prescribed by the regulations for submitting it. 2009, c. 34, Sched. A, s. 7. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009

37 (1) Every collector shall keep records and books of account in accordance with the rules prescribed by the regulations. 2009, c. 34, Sched. A, s. 7. Location of records and books of account (2) Records and books of account required to be kept under subsection (1) must be kept, (a) at the collector’s place of business or residence in Ontario; or (b) at a place in Ontario or elsewhere approved in writing by the Minister, under any terms and conditions the Minister may impose. 2009, c. 34, Sched. A, s. 7. Requirement by Minister to keep records (3) If, in the opinion of the Minister, a collector fails to keep adequate records and books of account for the purposes of this Act, the Minister may, by notice in writing, require the collector to keep, and the collector shall keep, such records and books of account as are specified in the notice. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched.…

38 (1) A person authorized by the Minister for any purpose related to the administration or enforcement of this Act may at all reasonable times enter any premises or place where a collector carries on business or keeps records or books of account, including electronic records, and may, (a) audit or examine the records and books of account and any account, voucher, letter, telegram or other document that relates to or may relate to the tax imposed by this Act or any return required under this Act; (b) examine the property described by an inventory or any property, process or matter, an examination of which may, in his or her opinion, assist in determining the accuracy of an inventory or in ascertaining the information that is or should be in the books or the amount of any tax imposed by this Act; (c) require a collector or his, her or its employees or agents to give all reasonable assista…

39 (1) For the purpose of obtaining any information that the Minister considers necessary for the purposes of this Act, the Minister may demand from any person such information as is indicated in a letter delivered personally or sent by registered mail to the person, and the person shall furnish to the Minister all such information in the person’s personal possession or under the person’s control, in writing, within such reasonable period of time after the delivery or sending of the letter as is specified in the letter. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2. Deemed receipt of registered mail (2) A letter sent to a person by registered mail under subsection (1) is deemed to have been received on the fifth day after the day of mailing unless the person establishes that, although acting in good faith, the person did not receive it or did not receive it until a later date.…

40 (1) The Minister may, at any time, assess or reassess an amount collected by a collector under this Act, (a) if the collector has failed to submit a return in accordance with this Act or the regulations; (b) if the collector has failed to remit an amount collected under this Act in accordance with this Act or the regulations; or (c) if a return submitted by the collector under this Act is not substantiated by the collector’s records. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2. Deemed to have been collected (2) An amount assessed or reassessed by the Minister under subsection (1) is deemed to be the amount collected by the collector and required to be remitted to the Minister by the collector. 2009, c. 34, Sched. A, s. 7. Minister not bound by returns (3) The Minister is not bound by any return submitted by a collector or by any information furnished by or on behalf of a …

41 (1) The Minister may assess a penalty against a collector that fails to collect an amount required to be collected under this Act. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2. Amount of penalty (2) The amount of the penalty that may be assessed against a collector under subsection (1) is determined as follows: 1. If the Minister reasonably believes that the collector’s failure to collect the amount is attributable to neglect, carelessness, wilful default or fraud, the penalty is the sum of, i. the amount that the collector failed to collect, and ii. the greater of $100 and 25 per cent of the amount the collector failed to collect. 2. If paragraph 1 does not apply, the penalty is equal to the amount that the collector failed to collect. 2009, c. 34, Sched. A, s. 7. Penalty, failure to submit a return (3) The Minister may assess a penalty against a collector that fails to s…

42 (1) Subject to subsections (2) to (5), the Minister may assess or reassess, (a) tax payable by a purchaser, within four years after the day on which the tax becomes payable; (b) a penalty under subsection 41 (1) for failing to collect an amount under this Act, within four years after the day the amount was required to be collected; and (c) a penalty under subsection 41 (3) for failing to submit a return within four years after the day on which the return was required to be submitted. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2. No time limit if neglect, carelessness, etc. (2) Despite subsection (1), if the Minister establishes that a collector has made a misrepresentation that is attributable to neglect, carelessness or wilful default or has committed any fraud in making a return, in supplying information under this Act or in omitting to disclose information under this Ac…

43 Every collector against whom the Minister assesses a penalty under this Act shall pay the penalty when assessed for it. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2019, c. 15, Sched. 2, s. 2 - 29/11/2021

44 (1) If on a particular day a debt as calculated under subsection (2) is payable by a person, the person shall pay interest in accordance with the regulations on the amount of the debt from that day to the day the amount is received by the Minister. 2009, c. 34, Sched. A, s. 7. Amount of debt calculation (2) In this section, the amount of the debt payable by a person under this Act at a particular day is the amount by which “A” exceeds “B” where, “A” is the sum of, (a) all amounts of or on account of tax under this Act that were payable or collectable by the person before that day, (b) all penalties assessed under this Act against the person at any time before that day, (c) all refunds taken under this Act that are disallowed in respect of a period of time ending before that day, and (d) all interest payable by the person under this section before that day, and “B” is the sum of, (a) a…

45 (1) When the Minister assesses or reassesses an amount as or on account of tax or interest or a penalty under this Act, the Minister shall serve by prepaid mail or by personal service a notice of assessment on the person assessed and that person shall remit or pay to the Minister all amounts assessed and not previously remitted or paid by the person, together with any interest payable under this Act, whether or not an objection or appeal is outstanding. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2. Assessment valid and binding (2) Any assessment or reassessment made under this Act, subject to being varied or vacated on an objection or appeal and subject to a reassessment, is deemed to be valid and binding despite any error, defect or omission in it or in any proceeding under this Act relating to it. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2. Section Amendmen…

46 (1) If a collector remits or pays to the Minister more money for a period than was required to be remitted or paid under this Act, the Minister shall, (a) subject to subsection (2), refund the overpayment to the collector; or (b) at the option of the Minister, apply the overpayment to the collector’s liability with respect to another period and notify the collector of that action. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2. Limitation (2) The Minister shall not make a refund under subsection (1), (a) unless an application for the refund is made to the Minister within four years after the day the remittance or payment was made in respect of which the collector is seeking a refund; and (b) unless evidence satisfactory to the Minister is provided to establish the entitlement of the collector to the refund. 2009, c. 34, Sched. A, s. 7. Saving (3) If the result of an assessme…

47 (1) A collector who sells liquor to a purchaser who is exempt from the payment of tax imposed by this Act may apply to the Minister through the manufacturer that manufactured the liquor for a refund of the amount paid by the collector to the manufacturer on account of taxes paid under this Act in respect of the liquor. 2019, c. 15, Sched. 2, s. 23. Same (2) If the Minister considers it appropriate to do so, the Minister may require a collector referred to in subsection (1) to apply directly to the Minister for refunds described in that subsection and, upon notification by the Minister to the collector and the manufacturer, no further refunds shall be made through the manufacturer. 2019, c. 15, Sched. 2, s. 23. Section Amendments with date in force (d/m/y) 2009, c. 34, Sched. A, s. 7 - 15/12/2009 2019, c. 15, Sched. 2, s. 2, 23 - 29/11/2021

47.1 (1) If, upon considering an application for a refund made under this Act, the Minister determines that the applicant is not entitled to all or part of the refund, the Minister shall serve a statement of disallowance on the applicant. 2010, c. 1, Sched. 1, s. 8; 2019, c. 15, Sched. 2, s. 2. Content of statement (2) A statement of disallowance shall set out the amount of the refund that is being disallowed and the reasons for the disallowance. 2010, c. 1, Sched. 1, s. 8. Section Amendments with date in force (d/m/y) 2010, c. 1, Sched. 1, s. 8 - 01/07/2010 2019, c. 15, Sched. 2, s. 2 - 29/11/2021

48 (1) The Minister may assess a person who has received a refund under this Act to which the person is not entitled or in excess of the amount to which the person is entitled. 2009, c. 34, Sched. A, s. 7; 2019, c. 15, Sched. 2, s. 2. Amount of assessment for refund (2) An assessment under subsection (1) shall be for the amount to which the person was not entitled and for interest at the rate or rates determined under the regulations from the day of payment of the refund. 2009, c. 34, Sched. A, s. 7. Explanation (3) An assessment under subsection (2) shall be accompanied by a brief written explanation of why the person is not entitled to the amount specified in the assessment. 2009, c. 34, Sched. A, s. 7. Deemed to be tax owing (4) The amount specified in the assessment is deemed to be tax owing to the Crown in right of Ontario, and the sections of this Act relating to notices of assessm…