and Revenue Administration
Tax Exemption (AITE)
Special Notice Vol. 4 No. 12
||February 6, 2017
|| Alberta Treasury Board and Finance, Tax
and Revenue Administration
|For more information:
Vol. 4 No. 12
/ June 2004
INDIAN TAX EXEMPTION SPECIAL NOTICE:
BLACK STOCK TOBACCO TO INELIGIBLE PERSONS
The Government of Alberta recognizes that many First Nations people and communities in the province prefer not to describe themselves as Indians/Indian bands. These terms have been used where necessary to reflect their legal meaning in the federal Indian Act.
The requirements for lawfully selling
black stock tobacco are outlined in the Alberta Tobacco Tax Act and
Regulation, and are discussed in the AITE Information Circulars and
Tax and Revenue Administration (TRA),
together with the Alberta Gaming and Liquor Commission and other law
enforcement bodies, enforce the Tobacco Tax Act and ensure that black
stock tobacco is not being sold unlawfully. Charges may be laid if
evidence has been gathered indicating that retailers and/or their staff
are selling black stock tobacco to ineligible persons.
If a charge has been laid, TRA will
review the evidence to determine whether there appears to be a problem
with the controls implemented at the store. If TRA is satisfied that a
problem exists, then the following actions may be taken.
TRA may send a registered letter to the
exempt sale retailer asking them to describe what changes have been made
in their operations to ensure black stock tobacco is sold only in compliance
with legislation and their AITE retailer agreement.
Please note that cancellation or
suspension of the exempt sale retailer status will be considered if
corrective action is not taken.
A second charge within 2 years of the first
charge may result in the store's exempt sale retailer status being suspended
for a period of 60 days. The exempt sale retailer must also take corrective
action and provide TRA with a description of these corrective actions.
Before the 60-day period expires, TRA
will assess the corrective actions taken by the exempt sale retailer and
decide whether to:
- allow the exempt sale retailer to make
tax-exempt sales after the period expires,
- continue the suspension, or
- cancel their AITE registration (see
below for consequences of cancellation).
A subsequent charge may result in the permanent
cancellation of the exempt sale retailer's status and that exempt sale
retailer will no longer be able to sell tax-exempt products (including
fuel) under the AITE program.
Before a registration is suspended or
cancelled, exempt sale retailers will be given an opportunity to present
reasons as to why this action should not be taken.