Elimination of the Excise Tax on Jewellery Products
On May 2, 2006, the Minister of Finance eliminated the excise tax on the following items:
- clocks with a duty paid value or sale price of $50 or more;
- articles made in whole or in part of natural shells or semi-precious stones;
- jewellery, including diamonds and other precious or semi-precious stones, for personal use or adornment of the person; and
- goldsmiths' and silversmiths products.
Excise tax return and remittance forms for the final reporting period will be mailed out to all licensees and should be completed and returned in the usual manner.
Retention of books and records
Persons who are required to pay or collect taxes or other sums, or who make an application for a deduction, refund or drawback are required to maintain adequate books and records to enable the determination of their tax liabilities and obligations. These records are to be retained for six years from the end of the calendar year for which the books and records are kept, or until written authorization for their prior disposal is given by the Minister of National Revenue.
Cancellation of licences
All licensed manufacturers and licensed wholesalers of jewellery will be provided with further information at a later date regarding the cancellation of their excise tax licences.
For further information, please visit the Canada Revenue Agency Web site or call the excise tax information line at 1.866.330.3304.