ET/SL 15

July 4, 1994

Enclosed is an Application for Federal Excise Tax Credit on Tobacco Products Sold to Retailers in Nova Scotia. You should use this form to claim credits on sales of cigarettes and manufactured tobacco you have made to retailers in Nova Scotia on or after April 15, 1994, and before June 1, 1994. Your application should be submitted to one of the manufacturers from which you purchased the products.

If you supply tobacco products to retailers outside of Nova Scotia, you need to determine, in making your claim, what parts of your inventories were destined for sale in Nova Scotia. You must do so by apportioning your inventories on the basis of the proportion of your total sales of each eligible type of tobacco product (i.e. cigarettes and manufactured tobacco) in a three-month period that were made to licensed retailers in Nova Scotia. For your April 15 inventory, you must use the three-month period ending April 14, 1994. For your June 1 inventory you may use either the three-month period ending February 10, 1994, or the three-month period ending April 14, 1994. The proportion you arrive at, expressed as a percentage and multiplied by the total inventories of that type of tobacco, will give you the inventory figures for purposes of the calculations on the enclosed form. Note that if you are claiming credits in respect of tobacco products for sale in more than one province (e.g., both Nova Scotia and New Brunswick or Prince Edward Island), you must choose the same three-month period for the purpose of apportioning your June 1 inventory.

For purposes of this credit, inventory refers to Atlantic-marked inventory of cigarettes and to fine cut tobacco not marked for sale in any particular province. Tobacco products marked for specific provinces, e.g., Nova Scotia or New Brunswick, do not qualify as inventory, nor do tobacco products which have been purchased on or after April 15, 1994, at the lower rate of excise tax, for sale to retailers on Indian reserves in Nova Scotia.

Before you send your claim to your manufacturer, it must be verified by the Nova Scotia Department of Finance. You can have your claim verified by sending it to the following address:

Department of Finance
Fuel and Tobacco Tax Division
6061 Yonge St.
P.O. Box 2212
Halifax, Nova Scotia
B3J 3C4

Sales of tobacco products to retailers in Nova Scotia made on or after June 1, 1994 do not qualify for this credit. As of that date, all purchases should be at the reduced rates applicable to the province for which the products are destined, subject to the ongoing rebate program for tobacco products destined for sale in Prince Edward Island.

Further information and forms are available from the following office:

District Excise/GST Office
2695 Dutch Village Road
P.O. Box 9306
Halifax, Nova Scotia
B3K 5Z3
Telephone: Local (902) 426-1975
Toll-free 1-800-463-6737