CALL US TODAY
(416) 864 - 6200

Tax & Trade Blog

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Archives
    Archives Contains a list of blog posts that were created previously.

Ontario Taxing Tobacco Sold to Indians on Reserve ?

Posted by on in Tax Law
  • Font size: Larger Smaller
  • Hits: 5996
  • 0 Comments
  • Subscribe to this entry
  • Print

The Ontario Ministry of Finance has threatened to turn the Ontario cigar industry upside down, by beginning to assess vendors selling cigars and other non-cigarette tobacco to status indians on federal indian reserves, for Ontario provincial tobacco tax (PTT). Previously most industry insiders would have assumed - just from Ontario's acquiescence to wide-spread industry practice of exempting all sales of non-cigarette tobacco sold to Indians that sales of cigars, pipe tobacco and chewing tobacco to status Indians on federal Indian reserves was exempt of PTT.

Not so, perhaps, based on recent Ontario assessment activities.

What makes this so troubling is that there is a special exemption for just these kinds of sales, provided for the exclusive use of the Indian purchaser, and found in section 23(2) to a Regulation under the Tobacco Tax Act.

This change in policy position - if that is what this represents - will be a major thorn in the side of virtually any vendor of non-cigarette tobacco on reserve, as they would seem to risk similar audit and assessment if not beginning to treat their sales as subject to PTT.  Not to mention an imposition for status Indians who would presumably feel entitled to protection from government taxation and molestation under sections 87 and 89 of the Indian Act.

Licensed wholesalers and designated wholesalers on the receiving end of a Notice of Assessment for Ontario tobacco tax (issued under the Ontario Tobacco Tax Act) should consider obtaining independent legal advice, as there are a number of reasons why Ontario's position may not be supportable at law.

Millar Kreklewetz LLP practices in this area, and Rob Kreklewetz and John Bassindale have recent file experience with this particular issue.

Please consider calling on us for advice on this subject:

Rob Kreklewetz (rgk@taxandtradelaw.com)

John Bassindale (jgb@taxandtradelaw.com

 

 

 

 

 

Last modified on
0

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Monday, 02 December 2024

Toronto Office

10 Lower Spadina Avenue, Suite 200, Toronto, Ontario, M5V 2Z2 Canada
Phone: (416) 864-6200| Fax: (416) 864-6201

Client Login

To access the Millar Kreklewetz LLP secure client file transfer system, please log in.