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First Session, Thirty-Seventh Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.
It is not the official version.   If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications.

Bill 38

THE STATUTE LAW AMENDMENT (TAXATION) ACT, 2000


Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

PART 1

THE CORPORATION CAPITAL TAX ACT

C.C.S.M. c. C226 amended

1           The Corporation Capital Tax Act is amended by this Part.

2           The definition "bank" in section 1 is amended by adding ", including an authorized foreign bank," after "a bank".

3           Subsection 7(2) is repealed and the following is substituted:

Fiscal year end — ceasing to have a permanent establishment

7(2)        A corporation's fiscal year is deemed for the purposes of this Act to end on the day it ceases to have a permanent establishment in Manitoba.

Fiscal year end — sale of assets

7(3)        The minister, or a person designated by the minister for the purpose, may, for the purposes of this Act, deem a corporation's fiscal year to have ended on the day immediately before the day on which the corporation concludes any transaction or series of transactions that results in a sale, transfer or other disposition of more than 50% of its fixed assets and inventories.

4(1)        Subsection 22(2) is amended by striking out everything after "remitted by a corporation," and substituting "the corporation shall pay interest, calculated and compounded monthly at the annual rate of interest prescribed or determined by regulation under The Financial Administration Act, to the minister on that debt."

4(2)        Subsection 22(3) is amended by striking out "he shall add to the amount of the refund interest at the same rate as the rate fixed or prescribed under subsection (2) for the period" and substituting "the minister shall pay interest on the amount refunded, calculated in the manner and at the rate applicable under subsection (2) to debts due to the government,".

5(1)        Subsections 29(2) and (2.1) are repealed and the following is substituted:

Penalty for failure to pay tax

29(2)       A corporation that fails to pay any tax payable by the day it is due is liable, on assessment by the minister, to a penalty equal to 5% of the tax not paid, and any penalty under this subsection is deemed to be tax payable under this Act and in addition to any other tax payable under this Act and may be collected as tax payable under this Act.

5(2)        The following is added as subsection 29(2.2):

Additional penalty for neglect or carelessness

29(2.2)     If the director is satisfied that a corporation's failure to pay tax payable under this Act when it was due is attributable to the corporation's neglect or carelessness, the director may assess a penalty against the corporation, in addition to any other penalty payable by it, in an amount not exceeding 50% of the amount of tax not paid, and any penalty under this subsection is deemed to be tax payable under this Act and in addition to any other tax payable under this Act, and may be collected as tax payable under this Act.

PART 2

THE GASOLINE TAX ACT

C.C.S.M. c. G40 amended

6           The Gasoline Tax Act is amended by this Part.

7           Section 1 is amended

(a) by adding the following definitions in alphabetical order:

"carrier" means a person who owns or operates one or more motor vehicles used interprovincially or internationally for the commercial carriage of passengers or goods; (« transporteur »)

"carrier decal" means a decal issued to a carrier for the purposes of the International Fuel Tax Agreement by

(a) the director under section 18.3, or

(b) a member jurisdiction other than Manitoba; (« autocollant de transporteur »)

"carrier licence" means a licence issued to a carrier for the purposes of the International Fuel Tax Agreement by

(a) the director under section 18.3, or

(b) a member jurisdiction other than Manitoba; (« licence de transporteur »)

"International Fuel Tax Agreement" means the agreement entered into by the minister under section 18.1; (« Entente internationale concernant la taxe sur les carburants »)

"licensed carrier" means a person who holds a carrier licence; (« transporteur autorisé »)

"member jurisdiction" means a jurisdiction whose government is a party to the International Fuel Tax Agreement; (« ressort membre »)

"qualified motor vehicle" means a motor vehicle that is used interprovincially or internationally for the commercial carriage of passengers or goods and that

(a) has a registered gross vehicle weight greater than 11,797 kg,

(b) has, by itself or when combined with the trailer with which it is used, a gross vehicle weight greater than 11,797 kg, or

(c) has three or more axles,

but does not include

(d) a vehicle that is used exclusively for personal pleasure by an individual, or

(e) while it is being used exclusively for personal pleasure by an individual, a motor home, a pickup truck with attached camper or a bus; (« véhicule automobile admissible »)

(b) in the definition "licence", by adding "or the director" after "minister"; and

(c) by repealing the definition "licensed purchaser".

8(1)        Subsections 2(10) to (14) are repealed and the following is substituted:

Single trip permit and tax

2(10)       Every time that a purchaser, other than a licensed carrier, brings gasoline into the province in the fuel tank of a qualified motor vehicle, the purchaser shall, upon entering the province,

(a) obtain a permit; and

(b) pay to the minister a tax equal to the greater of

(i) $18., and

(ii) 6¢ for each kilometre travelled or to be travelled in the province before the vehicle next leaves the province, as estimated by the minister.

Tax on gasoline purchased outside Manitoba

2(11)       A licensed carrier who, in the operation of a qualified motor vehicle in the province, uses gasoline that was not purchased in the province shall pay tax on that fuel, at the rate established under subsection (1), on or before the date prescribed by regulation or specified in a quarterly remittance form authorized by the minister.

Remittance by licensed carrier

2(12)       The tax payable by a licensed carrier under subsection (11) must be remitted

(a) in the case of a carrier licensed under section 18.3, to the minister in accordance with section 18.4; and

(b) in the case of a carrier licensed by a member jurisdiction other than Manitoba, to that jurisdiction in accordance with the terms and conditions of the licence.

8(2)        Subsection 2(20) is repealed.

8(3)        Subsection 2(22) is amended by striking out "(20),".

9           Subsections 4(10) to (16) are repealed.

10(1)       Subsection 10(13) is amended by striking out "licensed purchasers" and substituting "licensed carrier".

10(2)       Subsection 10(14) is amended by striking out "licensed purchaser" and substituting "holder of a carrier license issued by the director".

11          Subsections 12(2) to (4) are repealed.

12          Subsection 16(4) is amended by striking out "or" at the end of clause (d), and by repealing everything after clause (d) and substituting the following:

the person liable to pay the debt shall pay interest, calculated and compounded monthly at the annual rate of interest prescribed or determined by regulation under The Financial Administration Act, to the minister on that debt.

13(1)       Subsection 18(1) is amended by striking out "all taxes, penalties, and costs, for which the debtor is liable; and the debtor shall pay them" and substituting "any debt due to the government under this Act, and the debtor shall pay the debt".

13(2)       Subsection 18(2) is amended by striking out "tax" and substituting "debt".

14          Section 18.1 is repealed and the following is substituted:

INTERNATIONAL FUEL TAX AGREEMENT

Minister may enter into agreement

18.1        The minister may, with the approval of the Lieutenant Governor in Council, enter into an agreement with one or more governments of other jurisdictions, whether inside or outside Canada, to facilitate the interjurisdictional administration of the collection, remittance and enforcement of the tax on gasoline imposed under this Act and under similar Acts of other jurisdictions.

15          Subsection 18.2(1) is repealed and the following is substituted:

Payments to member jurisdictions

18.2(1)     Despite any other provision of this or any other Act, the minister may pay to a member jurisdiction the part of the tax or any other amount remitted to the minister in accordance with this Act or the International Fuel Tax Agreement that, under the agreement, is payable to that jurisdiction.

16          The following is added after section 18.2:

Carrier licence and decals

18.3(1)     Upon application by a carrier in a form authorized by the minister and payment of the prescribed fee, the director may issue to the carrier

(a) a licence that recognizes the carrier as a person to whom the International Fuel Tax Agreement applies; and

(b) two decals for each qualified motor vehicle owned or operated by the carrier.

Additional decals

18.3(2)     Upon application by a licensed carrier in a form authorized by the minister and payment of the prescribed fee, the director must issue to the carrier two decals for each additional qualified motor vehicle owned or operated by the carrier and for which decals were not issued when the carrier's licence was issued under this section.

Obligations re licence and decals

18.3(3)     When a qualified motor vehicle is operated in Manitoba under a carrier licence, the operator of the vehicle must

(a) carry a copy of the licence in the cab of the vehicle at all times;

(b) produce the copy of the licence for inspection on the request of a peace officer or other authorized person; and

(c) ensure that carrier decals are affixed to the cab of the vehicle in accordance with the regulations.

Carrier licence and decals not transferable

18.3(4)     No person shall assign or otherwise transfer a carrier licence or carrier decals issued by the director.

Terms and conditions of licence

18.3(5)     The terms and conditions of a carrier licence include the terms and conditions of the International Fuel Tax Agreement that are set out or incorporated by reference in the application form for a carrier licence.

Quarterly reports and remittances

18.4(1)     The holder of a carrier licence issued by the director must

(a) provide to the director a quarterly report, in a form authorized by the minister, setting out for the period covered by the report all information required by the form, including

(i) the distance travelled in each member jurisdiction,

(ii) the quantity of gasoline purchased in each member jurisdiction, and

(iii) the quantity of gasoline used in each member jurisdiction, calculated in the manner specified by the form; and

(b) remit to the minister with the report an amount equal to the total of the net taxes, interest and penalties, if any, payable to the member jurisdictions, calculated in the manner specified by the form.

Refund to licensed carrier

18.4(2)     The minister may refund to the holder of a carrier licence issued by the director the amount, calculated according to the form of the quarterly report, of any net overpayment of gasoline taxes or other amounts paid to member jurisdictions.

Records

18.5(1)     A carrier to whom a carrier licence is issued by the director must maintain records in accordance with any applicable regulations and the terms and conditions of the licence.

Access to records

18.5(2)     A carrier required to maintain records under subsection (1) must provide access to those records at the request of the director to

(a) the director or a person designated by the director for the purpose; or

(b) an official from a member jurisdiction.

Carrier licence may be suspended or cancelled

18.6(1)     The director may, in accordance with any applicable regulations, suspend or cancel a carrier licence issued by the director if the carrier or an operator of a vehicle operated under the licence fails to comply with this Act, the regulations or the terms and conditions of the licence.

Appeal of suspension or cancellation

18.6(2)     Section 9 applies, with necessary modifications, to a suspension or cancellation under subsection (1).

Return of licence and removal of decals

18.7(1)     When a carrier licence issued by the director is suspended or cancelled, or a licensed carrier ceases to engage in interjurisdictional commercial transportation of passengers or goods, the carrier must promptly

(a) surrender the licence to the director;

(b) destroy all copies of the licence in its possession or control; and

(c) remove from its vehicles all carrier decals that were issued in conjunction with the licence.

Removal of decals

18.7(2)     A carrier must promptly remove the carrier decals from any motor vehicle that the carrier has ceased to use for the interjurisdictional commercial transportation of passengers or goods.

17(1)       Subsection 21(1) is amended by adding the following after clause (a):

(a.1) for the purpose of determining the tax payable under subsection 2(11) (gasoline purchased outside of Manitoba) or the amount to be remitted under section 18.4 (amounts payable to member jurisdictions); or

17(2)       Subsection 21(2) is amended by striking out "licensed purchaser" and substituting "licensed carrier".

17(3)       The following is added after subsection 21(4):

Offence of obstruction or failure to produce

21(4.1)     A person who obstructs a peace officer, or an officer appointed under this Act, in the performance of the officer's duties in enforcing any provision of this Act or the regulations, or in exercising any right or performing any duty under this Act or the regulations, is guilty of an offence.

18          Section 23 is amended

(a) by striking out "any tax payable by a purchaser has not been paid" and substituting "any tax or other amount to be paid or remitted by a purchaser has not been paid or remitted"; and

(b) by striking out "or payable by the purchaser" wherever it occurs and substituting "or the tax or other amount to be paid or remitted by the purchaser".

19(1)       Clause 27(3)(a) is amended by striking out "he is required under this Act so" and substituting "he or she is required by this Act, the regulations or the terms and conditions of a licence".

19(2)       The following is added after subsection 27(3):

Carrier licence or decals offence

27(3.1)     A person who fails to comply with subsection 18.3(3) or 18.7(1) or (2) is guilty of an offence.

20          Clause 39(y) is amended by striking out "licensed purchasers" and substituting "licensed carriers".

PART 3

THE HEALTH AND POST SECONDARY EDUCATION TAX LEVY ACT

C.C.S.M. c. H24 amended

21          The Health and Post Secondary Education Tax Levy Act is amended by this Part.

22(1)       Subsection 9(2) is amended by striking out everything after "remitted by an employer," and substituting "the employer shall pay interest, calculated and compounded monthly at the annual rate of interest prescribed or determined by regulation under The Financial Administration Act, to the minister on that debt."

22(2)       Subsection 9(3) is amended by striking out "he shall add to the amount of the refund interest at the same rate as the rate prescribed by regulation under The Financial Administration Act for the purposes of subsection (2) for the period" and substituting "the minister shall pay interest on the amount refunded, calculated in the manner and at the rate applicable under subsection (2) to debts due to the government,".

23          Subsection 14(1) is amended

(a) by striking out "judicial district" and substituting "judicial centre"; and

(b) by striking out "writ of fieri facias" and substituting "writ of seizure and sale".

24          The following is added after subsection 16(2):

Additional penalty for neglect or carelessness

16(2.1)     If the director is satisfied that an employer's failure to pay tax payable under this Act when it was due is attributable to the employer's neglect or carelessness, the director may assess a penalty against the employer, in addition to any other penalty payable by the employer, in an amount not exceeding 50% of the amount of tax not paid, and any penalty under this subsection shall be conclusively deemed to be tax payable under this Act and in addition to any other tax payable under this Act, and may be collected as tax payable under this Act.

PART 4

THE INCOME TAX ACT

C.C.S.M. c. I10 amended

25          The Income Tax Act is amended by this Part.

26(1)       Subsection 1(1) is amended

(a) by repealing the definition "deputy head" and substituting the following:

"deputy head" means

(a) if no collection agreement is in effect, the Deputy Minister of Finance for Manitoba, and

(b) if a collection agreement is in effect, the Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act (Canada); (« administrateur général »)

(b) by adding the following definitions in alphabetical order:

"income for the year" of an individual means

(a) if section 114 of the federal Act applies in determining the individual's taxable income for the year, the amount determined under paragraph (a) of that section,

(b) if subsection 115(1) of the federal Act applies in determining the individual's taxable income earned in Canada for the year, the amount that would be the individual's taxable income earned in Canada for the year if that subsection ended after paragraph (c), and

(c) in any other case, the individual's income for the year as determined under Part I of the federal Act; (« revenu pour l'année »)

"Manitoba income" of an individual for a taxation year means the individual's income earned in the year in Manitoba, as determined under the federal regulations made for the purpose of the definition "income earned in the year in a province" in subsection 120(4) of the federal Act; (« revenu gagné au Manitoba »)

(c) by repealing the definition "individual" and substituting the following:

"individual" means a person other than a corporation and, except in section 5, includes a trust or estate; (« particulier »)

(d) by repealing the definition "minister" and substituting the following:

"minister" means, except as otherwise provided, the Minister of National Revenue for Canada, but in applying any provision of the federal Act for the purposes of this Act, a reference in such a provision to "minister" shall be read as a reference to the treasurer; (« ministre »)

(e) by repealing the definitions "permanent establishment", "prescribed", "Receiver General", "taxation year", and "treasurer" and substituting the following in alphabetical order:

"permanent establishment", where used for a purpose under this Act, has the meaning assigned for the same or a similar purpose in the federal regulations; (« établissement permanent »)

"prescribed" means

(a) in relation to a form, authorized under this Act by the Minister of Finance for Manitoba, and

(b) in any other case, prescribed by the regulations,

but, in applying any provision of the federal Act for the purposes of this Act and when used in reference to something prescribed under the federal Act, it has the meaning assigned by subsection 248(1) of the federal Act; (« prescrit »)

"Receiver General" means the Receiver General for Canada but, in applying any provision of the federal Act for the purposes of this Act, a reference in the provision to "Receiver General" shall be read as a reference to the treasurer; (« receveur général »)

"taxation year" of a person means the period determined under the federal Act as the person's taxation year; (« année d'imposition »)

"treasurer" means

(a) the Minister of Finance for Manitoba, if no collection agreement is in effect, and

(b) if a collection agreement is in effect,

(i) the Receiver General, in relation to the remittance of an amount as or on account of any tax, interest or penalty payable under this Act, and

(ii) the minister, in relation to the administration and enforcement of this Act other than sections 61 to 65; (« trésorier »)

26(2)       Subsections 1(1.1) and (1.2) are repealed.

26(3)       Subsection 1(6) is amended

(a) in the part before clause (a), by striking out "section or subsection" and substituting "section, subsection, definition or provision";

(b) in the English version of clause (g), by striking out "puposes" and substituting "purposes";

(c) by adding the following after clause (g):

(g.1) a reference in the section to "under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act" shall be read as "under this Act";

(d) in the Table in clause (h),

(i) by striking out "Department of National Revenue" and substituting "Canada Customs and Revenue Agency", and

(ii) by striking out "Deputy Minister of National Revenue for Taxation" and substituting "Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act".

26(4)       The following is added after subsection 1(6):

Negative amounts

1(7)        Except as otherwise provided in this Act, if an amount or number that is required by this Act to be determined by or in accordance with a formula would, but for this subsection, be a negative amount or number, the amount or number is deemed to be nil.

27          The following is added after section 1:

"Federal application rule" defined

1.1(1)      In this section, "federal application rule" means a provision of an Act of Parliament or of the federal regulations that

(a) modifies the application of a provision of the federal Act or the federal regulations; or

(b) makes a provision, or the repeal or amendment of a provision, of the federal Act or the federal regulations apply

(i) to specified taxation years,

(ii) to specified fiscal periods,

(iii) after a specified time, or

(iv) to transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods.

Application of federal Act and regulations

1.1(2)      In applying the provisions of the federal Act and the federal regulations for the purposes of this Act,

(a) every applicable federal application rule shall be applied, with necessary modifications, for the purposes of this Act; and

(b) each provision, and each amendment or repeal of a provision, of the federal Act or the federal regulations to which no federal application rule applies is deemed to come into force for the purposes of this Act on the day it comes into force for the purposes of the federal Act.

28(1)       Subsection 2(1) is amended by striking out everything after "this Act".

28(2)       Subsection 2(2) is repealed.

29          Sections 3 to 6 are repealed and the following is substituted:

Individuals liable to pay tax

3(1)        An individual must pay tax under this Part for a taxation year if he or she

(a) was resident in Manitoba on the last day of the taxation year; or

(b) was not resident in Manitoba on the last day of the taxation year but had Manitoba income for the year.

Corporations liable to pay tax

3(2)        Every corporation that maintains a permanent establishment in Manitoba at any time in a taxation year must pay tax under this Part for the year.

Exemptions

3(3)        Despite subsections (1) and (2), no tax is payable under this Part by

(a) a person for a period during which the person was exempt from tax under the federal Act because of subsection 149(1) of that Act; or

(b) a corporation for a period during which the corporation was a non-resident-owned investment corporation.

Distribution to municipalities, etc.

3(4)        From the taxes paid by individuals under clause (1)(a) for a taxation year, an amount equal to 2.2% of the amount determined for them for the year under the definition "tax otherwise payable under this Part" in subsection 120(4) of the federal Act shall be allocated to municipalities, Indian Reserves, communities under The Northern Affairs Act and other areas of the province and distributed in accordance with the provisions of The Provincial-Municipal Tax Sharing Act.

DIVISION II

COMPUTATION OF TAX

INDIVIDUAL INCOME TAX

Rules for Computing Tax

Rules for computing individual's tax payable

4(1)        The following rules apply in computing an individual's tax payable under this Part for a taxation year:

Rule 1

For the 2001 and subsequent taxation years, determine the individual's basic tax payable for the year

(a) under subsection 4.1(3), in the case of an inter vivos trust referred to in that subsection; and

(b) in any other case,

(i) under subsection 4.1(1) for the 2001 taxation year, and

(ii) under subsection 4.1(2) for the 2002 and subsequent taxation years.

Rule 1.1

For the 2000 taxation year, determine

(a) the individual's basic tax payable

(i) under subsection 4.2(2), in the case of an inter vivos trust referred to in that subsection, and

(ii) under subsection 4.2(1), in any other case;

(b) under subsection 4.2(3), the individual's net income tax payable for the year; and

(c)  under subsection 4.2(4), the individual's net income surtax payable for the year.

Rule 2

Determine under section 4.3 the individual's lump sum tax payable for the year, if any.

Rule 3

Determine under section 4.4 the individual's tax on split income, if any.

Rule 4

Determine the amount, if any, by which

(a) the total of the amounts determined under Rules 1 to 3

exceeds the total of

(b) the total of the individual's non-refundable tax credits for the year determined

(i) under subsection 4.6(1), for the 2000 taxation year, and

(ii) under subsection 4.6(2), for the 2001 and subsequent taxation years; and

(c) the individual's tax reduction determined

(i) under subsection 4.10(1), for the 2000 taxation year, and

(ii) under subsection 4.10(2), for the 2001 and subsequent taxation years.

Rule 5

Add to the amount determined under Rule 4 the individual's additional minimum tax, if any, determined under section 4.5.

Rule 6

Multiply the total determined under Rule 5 by the individual's Manitoba percentage for the year and, for the 2000 taxation year, add the amount determined by the following formula:

(100% - A) x B

In this formula,

A   is the individual's Manitoba percentage for the year; and

B   is the lesser of

(a) the total of the amounts determined under clauses (b) and (c) of Rule 1.1; and

(b) the total determined under Rule 5.

Rule 7

Determine the amount, if any, by which the amount determined under Rule 6 exceeds the total of

(a) the individual's Manitoba political contribution credit determined under section 4.11;

(b) the individual's labour-sponsored funds tax credit determined under subsection 11.1(2.1);

(c) the individual's equity tax credit determined under subsection 11.6(3); and

(d) the individual's foreign tax credit determined under section 4.12.

Rule 8

Determine the greater of

(a) the amount determined under Rule 7; and

(b) the amount, if any, by whichthe individual's Manitoba percentage of his or her tax on split income determined under section 4.4, exceeds

(i) the individual's Manitoba percentage of the portion of his or her dividend tax credit under section 4.7 that can reasonably be considered to relate to that split income, and

(ii) the portion of his or her foreign tax credit under section 4.12 that can reasonably be considered to relate to that split income.

Rule 9

If the individual was resident in Manitoba on the last day of the taxation year, subtract from the amount determined under Rule 8 the total of the individual's refundable tax credits claimed under section 5.

Rule 10

If the individual was not resident in Manitoba on the last day of the taxation year, the individual's tax payable under this Part for the year is the amount determined under Rule 8.

Rule 11

If the individual was resident in Manitoba on the last day of the taxation year and the amount determined under Rule 9 is a positive amount, the individual's tax payable for the year under this Part is equal to that amount. If it is nil or a negative amount, the individual's tax payable for the year under this Part is nil and the amount, if any, by which it is negative is deemed to be an overpayment by the individual on account of his or her tax payable for the year under this Part.

"Manitoba percentage" defined

4(2)        For the purposes of subsection (1), an individual's "Manitoba percentage" for a taxation year is the proportion, expressed as a percentage, that his or her Manitoba income for the year is of his or her income for the year.

Basic Tax Payable — 2001 and Later Years

Basic tax payable — 2001 taxation year

4.1(1)      An individual's basic tax payable for the 2001 taxation year is the amount determined according to the following table:

Taxable income (TI) Basic tax payable (BT)
$30,544. or less BT =10.9% x TI
more than $30,544. but not more than $61,089. BT =$3,329. + 16.2% x (TI - $30,544.)
more than $61,089. BT =$8,277. + 17.5% x (TI - $61,089.)

Basic tax payable — 2002 and subsequent taxation years

4.1(2)      An individual's basic tax payable for the 2002 taxation year and for each subsequent taxation year is the amount determined according to the following table:

Taxable income (TI) Basic tax payable (BT)
$30,544. or less BT =10.9% x TI
more than $30,544. but not more than $65,000. BT =$3,329. + 15.6% x (TI - $30,544.)
more than $65,000. BT =$8,704. + 17.5% x (TI - $65,000.)

Basic tax payable by inter vivos trust

4.1(3)      Despite subsections (1) and (2), the basic tax payable for a taxation year for an inter vivos trust to which subsection 122(1) of the federal Act applies is 17.5% of the trust's taxable income for the year.

Basic Tax, Net Income Tax and Surtax for 2000 Taxation Year

Basic tax payable — 2000 taxation year

4.2(1)      An individual's basic tax payable for the 2000 taxation year is the amount determined according to the following table:

Taxable income (TI) Basic tax payable (BT)
$29,590. or less BT =8.0% x TI
more than $29,590. but not more than $59,180. BT =$2,367. + 12.22% x (TI - $29,590.)
more than $59,180 BT =$5,983. + 13.63% x (TI - $59,180.)

Basic tax payable by inter vivos trust

4.2(2)      Despite subsection (1), the basic tax payable for the 2000 taxation year for an inter vivos trust to which subsection 122(1) of the federal Act applies is 13.63% of the trust's taxable income for the year.

Net income tax payable — 2000 taxation year

4.2(3)      An individual's net income tax payable for the 2000 taxation year is 2% of the amount, if any, by which

(a) the individual's Manitoba income for the year;

exceeds

(b) the total of the amountsthat would be deductible under paragraph 110(1)(f) of the federal Act, other than subparagraphs (iii) and (iv), in computing the individual's taxable income for the year if the only amounts included in computing his or her income for the year were the amounts included in computing his or her Manitoba income for the year.

Net income surtax — 2000 taxation year

4.2(4)      An individual's surtax payable for the 2000 taxation year is the amount, if any, by which the individual's net income tax payable determined under subsection (3) for the year exceeds

(a) if the individual is a trust, $600.; or

(b) if the individual is not a trust, the total of $600. and the following amounts that apply:

(i) $100., if the individual has claimed an amount in respect of a spouse or common-law partner under paragraph 118(1)(a) of the federal Act or another dependant under paragraph 118(1)(b) of that Act,

(ii) $25. for each dependant in relation to whom the individual was, at any time in the year, an eligible individual (as defined in section 122.6 of the federal Act), other than a dependant in respect of whom an individual has claimed an amount for the year under paragraph 118(1)(b) or (d) of the federal Act,

(iii) $40. for each dependant in respect of whom the individual has claimed an amount for the year under paragraph 118(1)(d) of the federal Act,

(iv) $50., if the individual was at least 65 years old at the end of the year,

(v) $50., if the individual has claimed an amount for the year under subsection 118.3(1) of the federal Act,

(vi) $50. for each dependant in respect of whom the individual has claimed an amount for the year under subsection 118.3(2) of the federal Act,

(vii) $50., if the individual has claimed an amount for the year under section 118.8 of the federal Act in relation to a physical or mental impairment of the individual's spouse or common-law partner,

(viii) $50., if the individual claimed an amount for the year under section 118.8 of the federal Act in relation to an age credit deductible under subsection 118(2) of that Act by the individual's spouse or common-law partner.

Limitation

4.2(5)      In determining the amounts that apply under clause (4)(b),

(a) if an amount would otherwise apply in respect of a dependant to two individuals who are spouses or common-law partners of each other, it applies only to the individual with the greater net income tax payable under subsection (3) for the year;

(b) if an amount would otherwise apply in respect of a dependant to two or more individuals who are not spouses or common-law partners of each other, it applies only to one of them, and if they cannot agree on which one, it applies only to the individual with the greater net income tax payable under subsection (3) for the year; and

(c) the amount determined for C in the formula in section 118.8 of the federal Act shall be applied to reduce the amounts included in A and B in that formula in the same order in which those amounts must be deducted in computing the tax payable under that Act by the individual's spouse or common-law partner.

Refunds re net income tax and surtax paid

4.2(6)      If an individual has paid a tax for a taxation year because of subsection (3) or (4) or because of former subsection 4(9), (11) or (12) as it applied to a taxation year before 2000, the minister may, on application by the individual, refund to the individual the tax so paid to the extent that it can reasonably be attributed to

(a) the amount by which the amount determined for that year for B in the formula under subsection 118.2(1) of the federal Act exceeded $2,500.;

(b) the amount deducted for the year by the individual under subsection 110(2) of the federal Act; or

(c) a taxable capital gain realized on a disposition of property that resulted from a foreclosure, repossession or quit claim and for which the individual was allowed a deduction under subsection 110.6(2) of the federal Act.

Application to common-law partners

4.2(7)      In applying subsection (4) to an individual,

(a) subsection (4) shall be read without any references to "or common-law partner"; and

(b) subsection (5) shall be read without any references to "or common-law partners";

unless the individual has elected under section 144 of the Modernization of Benefits and Obligations Act (Canada) to have sections 130 to 142 of that Act apply for the 2000 taxation year.

Tax on Lump Sums

Tax on lump sums

4.3         An individual's lump sum tax payable for a taxation year is 50% of the total of the amounts added by sections 120.3 and 120.31 of the federal Act and section 40 of the Income Tax Application Rules (Canada) to the individual's tax payable for the year under the federal Act.

Additional Taxes

Tax on split income

4.4         If section 120.4 of the federal Act applies to an individual for a taxation year, the individual's tax on split income for the year is 17.5% of his or her split income for the year as determined under that section.

Additional minimum tax

4.5         An individual's additional minimum tax payable for a taxation year is 50% of the amount that would be his or her additional tax for the year determined under subsection 120.2(3) of the federal Act if that subsection ended after paragraph (b).

Non-Refundable Tax Credits

Non-refundable credits for 2000

4.6(1)      For the 2000 taxation year, the total of an individual's non-refundable tax credits is the total of

(a) all amounts, each of which is 8/17 of an amount deducted under any of sections 118 and 118.2 to 118.9 of the federal Act in computing the individual's tax payable for the year under that Act;

(b) the amount that would be the individual's donations tax credit for the year under subsection (18) if

(i) the reference in clause (18)(a) to "10.9%" were read as "8.0%", and

(ii) the reference in clause (18)(b) to "17.5%" were read as "13.63%";

(c) the individual's dividend tax credit for the year determined under section 4.7;

(d) the amount that would be the individual's overseas employment tax credit for the year determined under section 4.8 if the reference in that section to "50%" were read as "47%"; and

(e) the individual's minimum tax carry-over credit for the year determined under section 4.9.

Non-refundable credits for 2001 and following

4.6(2)      For the 2001 and subsequent taxation years, the total of an individual's non-refundable credits is the total of

(a) all amounts, each of which is 10.9% of an amount claimed for the year under any of subsections (3) to (17) and subsection (19);

(b) the individual's donations tax credit for the year determined under subsection (18);

(c) the individual's dividend tax credit for the year determined under section 4.7;

(d) the individual's overseas employment tax credit for the year determined under section 4.8; and

(e) the individual's minimum tax carry-over credit for the year determined under section 4.9.

Basic personal amount

4.6(3)      An individual may claim a basic personal amount of $7,361. for the taxation year.

Age amount

4.6(4)      An individual who is at least 65 years old at the end of the taxation year may claim the amount determined by the following formula:

$3,595. - .15A

In this formula, A is the amount, if any, by which the individual's income for the year would exceed $26,757. if no amount were included in respect of a gain from a disposition of property to which section 79 of the federal Act applies in computing that income.

Claim re spouse or common-law partner

4.6(5)      An individual who at any time in the taxation year is

(a) married, supporting his or her spouse and not living separate and apart from the spouse because of a breakdown of their marriage; or

(b) in a common-law partnership, supporting his or her common-law partner, and not living separate and apart from the common-law partner because of a breakdown of their common-law partnership;

may claim the amount determined by the following formula:

$6,251. - (A - $625.)

In this formula, A is the greater of $625. and the spouse's or partner's income for the year or, where the individual and the spouse or partner are living separate and apart at the end of the year because of a breakdown of their marriage or partnership, the spouse's or partner's income for the year while married or in the common-law partnership and not so separated.

Equivalent-to-spouse amount

4.6(6)      An individual to whom subsection (5) does not apply for the taxation year and who, at any time in the year,

(a) is unmarried and not in a common-law partnership, or is married or in a common-law partnership but neither supports nor lives with his or her spouse or common-law partner and is not supported by the spouse or common-law partner; and

(b) alone or jointly with one or more other persons, maintains a self-contained domestic establishment which is the individual's ordinary place of residence and actually supports in that establishment a person who, at that time, is

(i) except in the case of a child of the individual, resident in Canada,

(ii) wholly dependent for support on the individual, or the individual and the other person or persons, as the case may be,

(iii) related to the individual, and

(iv) except in the case of a parent or grandparent of the individual, either less than 18 years old or dependent on that support because of mental or physical infirmity;

may claim the amount determined by the following formula:

$6,251. - (A - $625.)

In this formula, A is the greater of $625. and the dependant's income for the year.

Infirm dependant amounts

4.6(7)      An individual may claim, for each dependant of the individual who

(a) was at least 18 years old at the end of the taxation year; and

(b) was dependent in the year on the individual because of mental or physical infirmity;

the amount determined by the following formula:

$2,429. - (A - $4,932.) - B

In this formula,

A   is the greater of $4,932. and the dependant's income for the year; and

B   is the amount, if any, that the individual may claim under subsection (6).

Caregiver amount

4.6(8)      An individual who, at any time in the taxation year, alone or jointly with one or more persons, maintains a self-contained domestic establishment which is the ordinary place of residence of the individual and of another person

(a) who is at least 18 years old at that time;

(b) who is

(i) the individual's child or grandchild, or

(ii) resident in Canada and is the parent, grandparent, brother, sister, aunt, uncle, nephew or niece of the individual or the individual's spouse or common-law partner; and

(c) who is

(i) at least 65 years old at that time, if he or she is the individual's parent or grandparent, or

(ii) dependent on the individual because of mental or physical infirmity;

may claim the amount determined by the following formula:

$14,300. - A - B

In this formula,

A   is the greater of $11,871. and the other person's income for the year; and

B   is the amount, if any, that the individual may claim under subsection (6).

Pension contributions and EI premiums

4.6(9)      An individual who is entitled to deduct an amount under section 118.7 of the federal Act for the taxation year may claim the amount determined for B in the formula under that section.

Pension income amount

4.6(10)     An individual who received pension income in the taxation year may claim an amount equal to the lesser of $1,000. and

(a) the pension income received by the individual in the year, if he or she is at least 65 years old at the end of the year; or

(b) the qualified pension income received by the individual in the year, if he or she is less than 65 years old at the end of the year.

Disability amount

4.6(11)     An individual who is entitled to deduct an amount under subsection 118.3(1) of the federal Act for the taxation year may claim

(a) $4,370.; plus

(b) if he or she is less than 18 years old at the end of the year, the amount, if any, by which $2,994. exceeds the amount determined by the following formula:

A - $2,036.

In this formula, A is the total of the amounts paid in the year for the care and supervision of the individual and included in computing any other individual's deduction under section 63, 64 or 118.2 of the federal Act.

Dependant disability amount

4.6(12)     An individual who is entitled to deduct an amount under subsection 118.3(2) of the federal Act for the taxation year in respect of another individual may claim, for each such other individual, the amount determined by the following formula:

A - (B/.109)

In this formula,

A   is the amount claimable by the other individual under subsection (11) for the year; and

B   is the amount that would be the other individual's tax payable for the year under this Part if the only amounts claimed by him or her under this section were the amounts claimed under subsections (3) to (10).

Unused tuition and education amount

4.6(13)     An individual who is entitled to deduct an amount under subsection 118.61(2) of the federal Act for the taxation year may claim the amount determined by the following formula:

A/.17

In this formula, A is the amount deducted by the individual for the year under that subsection.

Tuition and education amount

4.6(14)     An individual who is entitled to deduct an amount under subsection 118.5(1) or 118.6(2) of the federal Act for the taxation year may claim the amount determined by the following formula:

A/.17

In this formula, A is the total of the amounts deducted by the individual for the year under those subsections.

Tuition and education amounts transferred from child

4.6(15)     An individual who is entitled to deduct an amount under section 118.9 of the federal Act for a taxation year may claim the amount determined by the following formula:

A/.17

In this formula, A is the amount deducted by the individual for the year under that section.

Amounts transferred from spouse or common-law partner

4.6(16)     An individual who, at any time in the taxation year, is a married person or is in a common-law partnership (other than an individual who, because of a breakdown of their marriage or common-law partnership, is living separate and apart from his or her spouse or common-law partner at the end of the year and for a period of 90 days beginning in the year), may claim the amount determined by the following formula:

(A/.17) + B - (C/.109)

In this formula,

A   is the amount of the tuition and education tax credits transferred for the year by the spouse or common-law partner, as the case may be, to the individual under section 118.81 of the federal Act;

B   is the total of all amounts, each of which is an amount that the spouse or common-law partner, as the case may be, may claim for the year under subsection (4), (10) or (11); and

C   is the amount, if any, by which

(a) the amount that would be the tax payable for the year under this Part by the spouse or common-law partner, as the case may be, if the only amounts claimed by the spouse or common-law partner under this section were the amounts claimed by him or her under subsection (3), (9) or (13),

exceeds the lesser of

(b) 10.9% of the amount claimable by the spouse or common-law partner under subsection (14), and

(c) the amount that would be the tax payable for the year under this Part by the spouse or common-law partner if the only amounts claimed by him or her for the year under this section were the amounts claimable under subsections (3) to (13).

Medical expense amount

4.6(17)     An individual who is entitled to deduct an amount under subsection 118.2(1) of the federal Act for the taxation year may claim the amount determined by the following formula:

A/.17

In this formula, A is the amount deducted by the individual for the year under that subsection.

Donations tax credit

4.6(18)     An individual's donations tax credit for a taxation year is the amount that would be deductible under subsection 118.1(3) of the federal Act for the year if, in applying the formula under that subsection,

(a) the percentage referred to in the description of A were 10.9%;

(b) the percentage referred to in the description of C were 17.5%; and

(c) the amounts determined for B and D were the same as the amounts determined for B and D, respectively, in applying the formula to determine the amount actually deducted.

Interest on student loan

4.6(19)     An individual who is entitled to deduct an amount under section 118.62 of the federal Act for the taxation year may claim the amount determined for B in the formula under that section for the year.

Limitations and interpretation

4.6(20)     For the purposes of subsection (2),

(a) no amount may be claimed under subsection (5) or (6) by an individual for a taxation year for more than one other person;

(b) no amount may be claimed under subsection (6) by an individual for a taxation year for a person in respect of whom another individual has claimed an amount under subsection (5), if throughout the year the person and that other individual are married to each other or in a common-law partnership and are not living separate and apart because of a breakdown of their marriage or common-law partnership;

(c) only one individual is entitled to claim an amount under subsection (6) in respect of the same person or the same domestic establishment and, if two or more individuals otherwise entitled to claim such an amount attempt to claim it, none of them may claim it;

(d) if an individual is entitled to claim an amount under subsection (8) in respect of a person, that person is deemed for the purpose of subsection (7) not to be a dependant of any individual;

(e) if more than one individual is entitled to claim an amount for a taxation year under subsection (7) or (8) in respect of the same person,

(i) the total of the amounts that may be claimed by them under that subsection for the year shall not exceed the maximum that could be claimed for the person for the year by any one of the individuals if he or she were the only individual entitled to claim an amount for the year under that subsection for that person, and

(ii) if the individuals cannot agree as to what portion of the amount each can so deduct, the minister may fix the portions;

(f) subsection 118(5) of the federal Act applies, with necessary modifications, in determining whether an amount may be claimed under subsection (5), (6), (7) or (8);

(g) a person is a dependant of an individual for a taxation year for the purpose of subsection (6) if the person is at any time in the year dependent on the individual for support and is

(i) the child or grandchild of the individual or of the individual's spouse or common-law partner, or

(ii) resident in Canada at any time in the year and is the parent, grandparent, brother, sister, uncle, aunt, niece or nephew of the individual or of the individual's spouse or common-law partner;

(h) subsections 118(7) and (8) of the federal Act apply, with necessary modifications, in determining any amount that may be claimed under subsection (10);

(i) subsections 118.3(3) and (4) of the federal Act apply, with necessary modifications, in determining any amounts that may be claimed under subsections (11) and (12);

(j) section 118.4 of the federal Act applies, with necessary modifications, in determining any amounts that may be claimed under subsections (11), (12), (14) and (17);

(k) no amount may be claimed under any of subsections (3) to (8) or (10) by a trust;

(l) if an individual is resident in Canada for part of a calendar year and for another part of the calendar year is non-resident,

(i) the individual may claim an amount under subsections (9), (10), (14) and (17) to (19) only to the extent it can reasonably be considered to be wholly applicable to the period or periods in the year throughout which the individual was resident in Canada, computed as though the period or periods were the whole taxation year,

(ii) the individual may claim only such part of the amounts otherwise claimable under subsections (3) to (8), (11) and (12), (15) and (16) as can reasonably be considered to apply to the period or periods in the year throughout which the individual was resident in Canada, computed as the period or periods were the whole taxation year, and

(iii) the amounts that may be claimed under subsections (3) to (19) in respect of the period or periods in the year throughout which the individual was non-resident shall be computed as if that period or periods were the whole taxation year,

but the amount that may be claimed under each of those subsections for the year cannot be more than the amount that would have been claimable under that subsection if the individual had been resident in Canada throughout the year;

(m) the amounts that may be claimed under subsections (3) to (19) must be claimed in the following order and before claiming any credit under sections 4.7 to 4.9:

(i) subsections (3) and (5) to (8),

(ii) subsection (4), and

(iii) subsections (9) to (19);

(n) if a separate return of income with respect to an individual is filed under subsection 70(2), 104(23) or 150(4) of the federal Act for a period ending in a calendar year and another return of income under this Act with respect to the individual is filed for a period ending in the same year, the total of the amounts claimed in those returns under subsections (9) to (15) and (17) to (19) cannot exceed the amounts that could have been claimed under those subsections for the year if that separate return had not been filed;

(o) an individual who at no time in the year is resident in Canada may claim only the following amounts under subsections (3) to (19):

(i) the amount claimable under subsections (9), (11), (13), (18) and (19), and

(ii) the amount that would be claimable under subsection (14) if that subsection were read without reference to "or 118.6(2)";

(p) clause (o) does not apply to an individual for a taxation year if all or substantially all of the individual's income for the year was included in computing his or her taxable income earned in Canada for the year for the purposes of Part I of the federal Act; and

(q) if an individual becomes bankrupt in a calendar year, for each taxation year ending in the year the individual may claim

(i) amounts under subsections (9), (10), (14) and (17) to (19), only to the extent that they can reasonably be considered to be wholly applicable to the taxation year,

(ii) only such part of the amounts otherwise claimable under subsections (3) to (8), (11), (12), (15) and (16) as can reasonably be considered to apply to the taxation year,

but the total of the amounts that may be claimed under each of those subsections for all of the individual's taxation years ending in the calendar year cannot be more than the amount that would have been claimable under that subsection if the individual had not become bankrupt.

Dividend tax credit

4.7(1)      An individual's dividend tax credit for a taxation year is the following percentage of the amount included because of paragraph 82(1)(b) of the federal Act in computing the individual's income for the year:

(a) for the 2000 taxation year, 31.35%;

(b) for the 2001 taxation year, 30%; and

(c) for the 2002 and subsequent taxation years, 25%.

Ordering

4.7(2)      An individual must claim the maximum dividend tax credit to which he or she is entitled under subsection (1) before claiming any amount under section 4.8 or 4.9.

Overseas employment tax credit

4.8         An individual's overseas employment tax credit for a taxation year is 50% of the amount deducted under section 122.3 of the federal Act in computing the individual's tax payable for the year under that Act.

Minimum tax carry-over

4.9         An individual's minimum tax carry-over credit for a taxation year is an amount equal to 50% of the amount deducted under section 120.2 of the federal Act in computing the individual's tax payable for the year under that Act.

Tax Reduction

Manitoba tax reduction — 2000 taxation year

4.10(1)     An individual's tax reduction for the 2000 taxation year is the amount, if any, by which the individual's net income tax payable under subsection 4.2(3) for the year is exceeded by

(a) if the individual is a trust, $430.; or

(b) if the individual is not a trust, the total of $430. and the following amounts that apply:

(i) $370., if the individual has claimed an amount for the year in respect of a spouse or common-law partner under paragraph 118(1)(a) of the federal Act or another dependant under paragraph 118(1)(b) of that Act,

(ii) $250. for each dependant in relation to whom the individual or the individual's spouse or common-law partner was, at any time in the year, an eligible individual (as defined in section 122.6 of the federal Act), other than a dependant in respect of whom an individual has claimed an amount for the year under paragraph 118(1)(b) or (d) of the federal Act,

(iii) $250. for each dependant in respect of whom the individual has claimed an amount for the year under paragraph 118(1)(d) of the federal Act,

(iv) $270., if the individual was at least 65 years old at the end of the year,

(v) $270., if the individual has claimed an amount for the year under subsection 118.3(1) of the federal Act,

(vi) $270. for each dependant in respect of whom the individual has claimed an amount for the year under subsection 118.3(2) of the federal Act,

(vii) $270., if the individual has claimed an amount for the year under section 118.8 of the federal Act in relation to a physical or mental impairment of the individual's spouse or common-law partner, and

(viii) $270., if the individual claimed an amount for the year under section 118.8 of the federal Act in relation to an age credit deductible under subsection 118(2) of that Act by the individual's spouse or common-law partner.

Family tax reduction — 2001 and subsequent taxation years

4.10(2)     An individual's tax reduction for a taxation year beginning after 2000 is the amount, if any, by which 1% of the individual's income for the year is exceeded by

(a) if the individual is a trust, $225.; or

(b) if the individual is not a trust, the total of $225. and the following amounts that apply:

(i) $225., if the individual has claimed an amount for the year under subsection 4.6(5) (claim re spouse or common-law partner) or under subsection 4.6(6) (equivalent-to-spouse amount),

(ii) $300. for each dependant in relation to whom the individual or the individual's spouse or common-law partner was, at any time in the year, an eligible individual (as defined in section 122.6 of the federal Act), other than a dependant in respect of whom an individual has claimed an amount for the year under subsection 4.6(6) (equivalent-to-spouse amount) or (7) (infirm dependant amounts),

(iii) $300. for each dependant in respect of whom the individual has claimed an amount for the year under subsection 4.6(7) (infirm dependant amounts),

(iv) $225., if the individual was at least 65 years old at the end of the year,

(v) $300., if the individual has claimed an amount for the year under subsection 4.6(11) (disability amount),

(vi) $300. for each individual in respect of whom the individual has claimed an amount for the year under subsection 4.6(12) (dependant disability amounts),

(vii) $300., if the individual has claimed an amount for the year under section 118.8 of the federal Act in relation to a physical or mental impairment of the individual's spouse or common-law partner, and

(viii) $225., if the individual claimed an amount for the year under section 118.8 of the federal Act in relation to an age credit deductible under subsection 118(2) of that Act by the individual's spouse or common-law partner.

Limitation

4.10(3)     In determining the amounts that may be included in computing a reduction under subsection (1) or (2),

(a) for the 2000 taxation year,

(i) if two individuals who are spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only the individual with the greater net income tax payable under subsection 4.2(3) for the year may include the amount in respect of the dependant, and

(ii) if two or more individuals who are not spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only one of them may include the amount and, if they cannot agree as to who will include the amount, only the individual with the greater net income tax payable under subsection 4.2(3) for the year may include the amount;

(b) for the 2001 and subsequent taxation years,

(i) if two individuals who are spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only the individual with the greater income for the year may include the amount in respect of the dependant, and

(ii) if two or more individuals who are not spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only one of them may include the amount and, if they cannot agree as to who will include the amount, only the individual with the greater income for the year may include the amount;

(c) if an individual becomes bankrupt in a calendar year, the total of the amounts that may be included under any provision of subsection (1) or (2) for the individual's taxation years ending in the calendar year shall not exceed the total of the amounts that would have been included under that provision for the calendar year if the individual had not become bankrupt; and

(d) the amount determined for C in the formula in section 118.8 of the federal Act shall be applied to reduce the amounts included in A and B in that formula in the same order in which those amounts must be deducted in computing the tax payable under that Act by the individual's spouse or common-law partner.

Application to common-law partners

4.10(4)     In applying subsection (1) to an individual,

(a) that subsection shall be read without any references to "or common-law partner"; and

(b) subsection (3) shall be read without any references to "or common-law partners";

unless the individual has elected under section 144 of the Modernization of Benefits and Obligations Act (Canada) to have sections 130 to 142 of that Act apply for the 2000 taxation year.

Political Contribution Credit

Political contribution credit

4.11(1)     An individual's political contribution tax credit for a taxation year is the lesser of $500. and the amount determined according to the following table:

Total contributions (T) Political Contribution
Credit (PCC)
$100. or less PCC = .75 x T
more than $100. but not more than $550. PCC = $75. + (T - $100.)/2
more than $550. PCC = $300. + (T - $550.)/3

Determination of amount contributed

4.11(2)     An amount may be included for a taxation year in the total contributions referred to in subsection (1) only if

(a) the amount is contributed, otherwise than as a donation in kind, in the year by the individual to a registered political party or registered candidate; and

(b) payment of the amount is proven by filing with the treasurer a receipt containing prescribed information and signed by the chief financial officer of the registered political party or the official agent of the registered candidate, as the case may be.

Interpretation

4.11(3)     For the purposes of this section, "chief financial officer", "contribution", "donations in kind", "official agent", "registered candidate" and "registered political party" have the same meanings as in The Elections Finances Act.

Foreign Tax Credit

Foreign tax credit

4.12        If an individual who was resident in Manitoba on the last day of the taxation year paid non-business-income tax (as defined in subsection 126(7) of the federal Act) for the year to the government of a country other than Canada, the individual's foreign tax credit is the amount claimed by the individual, which shall not exceed the lesser of

(a) the amount, if any, by which

(i) the non-business-income tax paid by the individual for the year to the government of that country,

exceeds

(ii) the total of the foreign tax deductions allowed to the individual for the year under subsection 126(1) or 180.1(1.1) of the federal Act in respect of the non-business-income tax so paid; and

(b) the amount determined by the following formula:

A x (B - C - D)/E - F

In this formula,

A   is the tax otherwise payable under this Act by the individual for the year determined without reference to section 127.4 of the federal Act;

B   is the total of the individual's incomes from sources in that country for the year or, if section 114 of the federal Act applies, for the period or periods in the year referred to in paragraph (a) of that section, determined as if

(i) no business were carried on by the individual in the country referred to in that clause, and

(ii) no amount were deducted under subsection 91(5) of the federal Act in computing the individual's income for the year;

C   is any income included in the amount determined for B that is exempt from tax under the federal Act because of subparagraph 110(1)(f)(i) of that Act;

D   is the lesser of the amounts determined under paragraphs 122.3(1)(c) and (d) of the federal Act in respect of the individual's income from employment in that country for the year;

E   is the individual's Manitoba income for the year; and

F   is the total of the amounts deductible by the individual under paragraph 110(1)(d), (d.1), (d.2), (d.3) or (f), section 110.6, paragraph 111(1)(b) or section 112 of the federal Act for the year.

Mutual Fund Trusts

Capital gains refund to mutual fund trust

4.13(1)     If an amount is to be refunded under section 132 of the federal Act to a trust in respect of a taxation year, the treasurer shall, at the time and in the manner provided in that section, refund to the trust the amount (in this section referred to as its "capital gains refund") determined by the following formula:

A x B/C x D/E

In this formula,

A   is the amount of the trust's refund for the year under subsection 132(1) of the federal Act;

B   is the trust's Manitoba income for the year;

C   is the trust's income for the year;

D   is

(a) for the 2000 taxation year, 13.63%, and

(b) for the 2001 and subsequent taxation years, 17.5%; and

E   is the percentage referred to in subsection 122(1) of the federal Act for the year.

Additional refund

4.13(2)     For the 2000 taxation year, a mutual fund trust is entitled to a refund of tax, in addition to any refund to which it is entitled under subsection (1), equal to the lesser of

(a) 4% of the taxable capital gains reported for the year by the trust; and

(b) the total of the tax paid by the trust under this Part for the year because of subsections 4.2(3) and (4).

Applying refund to other liability

4.13(3)     Instead of refunding an amount to a trust under subsection (1) or (2), the treasurer may, where the trust is liable or about to become liable to make any payment under this Act, apply the amount to that other liability and notify the trust of that action.

General

Application of federal provisions

4.14        Sections 118.91 to 118.95 of the federal Act apply for the purposes of this Act for the 2000 taxation year.

Bankruptcy

4.15        Subsection 128(2) of the federal Act applies for the purposes of this Act.

No deemed overpayment if returns not filed

4.16(1)     If the amount determined under Rule 9 of section 4 for an individual's taxation year is a negative amount, the amount is deemed to be nil if the individual has failed to file, under section 150 of the federal Act as it applies for the purposes of this Act, a return for the year within three years after the end of the year.

Application of overpayment

4.16(2)     If under Rule 11 of section 4 an amount is deemed to be an overpayment on account of an individual's tax payable for a taxation year,

(a) the overpayment is deemed to have arisen on the later of the filing due date for the year and the day the individual's return of income for the year is filed;

(b) all or any part of the overpayment may be applied to reduce the federal tax payable by the individual for the year if a collection agreement so provides; and

(c) the remainder of the overpayment, if any, is refundable to the individual out of the Consolidated Fund.

Refundable Tax Credits

Refundable tax credits

5(1)        Subject to subsection (2), an individual who resided in Manitoba on the last day of the taxation year may claim the following refundable tax credits in computing his or her tax payable under section 4 for the year:

(a) the amount, if any, by which

(i) the total of the individual's property tax credit, if any, determined under section 5.4 and the individual's school tax credit, if any, determined under section 5.5

exceeds

(ii) the amount of a shelter allowance benefit (as described in the regulations under The Housing and Renewal Corporation Act) received in the year by the individual or by another individual while he or she was the individual's cohabiting spouse or common-law partner as defined in section 5.3;

(b) the individual's personal tax credit, if any, determined under section 5.7;

(c) the individual's learning tax credit, if any, determined under section 5.8; and

(d) the total of the individual's transferred learning tax credits, if any, determined under section 5.9.

Limited credits for recipients of social assistance

5(2)        Except as permitted by the regulations, an individual is not eligible for a refundable tax credit under clause (1)(a) or (b) for a taxation year if

(a) he or she received in the year a social assistance payment referred to in paragraph 56(1)(u) of the federal Act; or

(b) at the end of the year, he or she is the cohabiting spouse or common-law partner, as defined in section 5.3, of another individual who received such a payment in the year.

Regulations

5(3)        The Lieutenant Governor in Council may make regulations for the purpose of subsection (2).

Refundable tax credits for year of death

5.1         When an individual who is resident in Manitoba dies,

(a) if the individual was married immediately before his or her death to another individual who is resident in Manitoba at the end of the calendar year in which the death occurred, the surviving spouse may claim the refundable tax credits that the deceased individual would have been entitled to claim under section 5 for the year if he or she had been resident in Manitoba and married to the spouse at the end of the year; and

(b) in any other case, the refundable tax credits for the individual's last taxation year shall be determined as if he or she had been resident in Manitoba at the end of the year.

More than one return in the same calendar year

5.2(1)      If more than one return of income is filed under the federal Act, as it applies for the purposes of this Act, by or in respect of an individual for two or more periods ending in the same calendar year, the refundable tax credits that may be claimed for the year under clauses 5(1)(a) to (d) by the individual or the individual's spouse or common-law partner are limited to the amounts that he or she could have claimed under those clauses if the individual had filed a single return of income that took into account the individual's entire income for all periods for which such returns were filed.

No credit for separate return under subsection 70(2)

5.2(2)      Section 5 does not apply to a return filed under subsection 70(2) of the federal Act as it applies for the purposes of this Act.

Property and School Tax Credits

Definitions

5.3         In this section and sections 5.4 to 5.7,

"cohabiting spouse or common-law partner" of an individual at any time means the person who at that time is the individual's spouse or common-law partner and who at that time is not living separate and apart from the individual, and, for this purpose, a person shall not be considered to be living separate and apart from an individual unless

(a) they were living separate and apart at that time, because of a breakdown of their marriage or common-law partnership, for a period of at least 90 days that includes that time, or

(b) they were occupying and inhabiting separate residences at that time because of medical necessity; (« conjoint visé ou conjoint de fait »)

"dwelling unit cost" of a principal residence of an individual for a taxation year or part of a year means

(a) the amount of the municipal taxes, if any, paid in respect of the principal residence for the year or for the portion of the year that it was the individual's principal residence and was owned by the individual or the individual's spouse or common-law partner,

(b) if the principal residence is a mobile home, the municipal licence fee, if any, paid by the individual or the individual's spouse or common-law partner in respect of the principal residence for the year or for the portion of the year that it was the individual's principal residence,

(c) if no municipal taxes or licence fees and no rent is paid by the individual or the individual's spouse or common-law partner in respect of the principal residence, the total of the government levies or service fees, if any, paid by the individual or the individual's spouse or common-law partner in respect of the principal residence for the year or for the portion of the year that it was the individual's principal residence, and, for this purpose, "government levies or service fees" means levies or fees imposed in respect of services of the type normally provided by a municipal council that are provided by the government, a local government district or a person who provides such services in the area in which the principal residence is located, and

(d) an amount equal to 20% of the rental or other payments (other than taxes, fees or levies referred to in clauses (a) to (c) and payments for meals or board), if any, paid by the individual or the individual's spouse or common-law partner in respect of the principal residence for the year or the portion of the year that it was the individual's principal residence, and, for this purpose, if the principal residence is a room in a personal care home, the rental or other payments are deemed not to exceed 1/2 of the portion of the per diem charges paid to the personal care home by or for the individual that has not been claimed as a medical expense under section 118.2 of the federal Act by any taxpayer; (« frais de logement »)

"family income" of an individual for a taxation year means the individual's income for the year plus, if the individual has a cohabiting spouse or common-law partner at the end of the year, the spouse's or common-law partner's income for the year; (« revenu familial »)

"municipal taxes" means taxes payable for municipal or school purposes, in respect of Manitoba residential or farm property to a municipality, a local government district or the minister appointed by the Lieutenant Governor in Council to administer The Northern Affairs Act, before any municipal tax reduction; (« taxes municipales »)

"municipal tax reduction", in relation to a property, means the amount by which municipal taxes imposed in respect of the property are, or are required to be, reduced under section 5.6; (« réduction de taxes municipales »)

"occupancy cost" of an individual for a taxation year means the amount, if any, by which

(a) the total of all amounts each of which is the dwelling unit cost of a principal residence of the individual for the year or a part of the year,

exceeds

(b) $250.; (« coût d'habitation »)

"principal residence" of an individual for a taxation year or part of a year means a residential dwelling unit located in Manitoba that is

(a) owned or rented by the individual or the individual's spouse or common-law partner throughout the year or that part of the year,

(b) ordinarily occupied or inhabited by the individual as a residence throughout the year or that part of the year,

(c) designated by the individual in the prescribed manner to be the individual's principal residence for the year or that part of the year, and

(d) not designated by any other individual as a principal residence for the year or that part of the year.

It includes up to 1/2 hectare of contiguous land that contributes to its use and enjoyment as a residence, but does not include any land or premises that are exempt from municipal taxes, are not the subject of a grant in lieu of municipal taxes and are designated, specifically or by class, as not being a residential dwelling unit. For the purpose of clause (b), if at any time an individual and his or her cohabiting spouse or common-law partner occupy or inhabit separate residences, each of them is deemed to ordinarily occupy and inhabit each such residence with the other at that time. (« résidence principale »)

Eligibility for property tax credit

5.4(1)      Subject to subsection (2), an individual who resides in Manitoba on the last day of a taxation year is eligible for a property tax credit for the year unless

(a) the individual is less than 16 years old at the end of the year;

(b) the individual resides in the principal residence of, and is claimed as a dependant of, another individual for the taxation year;

(c) the individual is exempt from tax under paragraph 149(1)(a) or (b) of the federal Act; or

(d) the individual is not a Canadian citizen and is on active military service as a member of the armed forces of a country other than Canada, or is a member of the family of such an individual.

Only one spouse or partner eligible for property tax credit

5.4(2)      An individual is not eligible for a property tax credit

(a) for a taxation year if he or she was, throughout the year, the cohabiting spouse or common-law partner of another individual who has claimed a property tax credit in respect of all or any part of the year; or

(b) in respect of any period throughout which he or she was the cohabiting spouse or common-law partner of another individual who has claimed a property tax credit in respect of the period.

Property tax credit

5.4(3)      Subject to subsection (4), an individual's property tax credit for a taxation year is the amount determined by the following formula:

A - B

In this formula,

A   is the lesser of the following amounts:

(a) the individual's occupancy cost for the year, and

(b) the amount, if any, by which $600. exceeds the lesser of

(i) $275., and

(ii) 1% of the individual's family income for the year; and

B   is the municipal tax reduction given in respect of a principal residence of the individual for the year or part of the year.

Property tax credit for seniors

5.4(4)      In determining the property tax credit of an individual who is at least 65 years old at the end of the taxation year, the references in clause (b) of the description of A in subsection (3) to "$600." and "$275." shall be read as a references to "$700." and "$375.", respectively.

Eligibility for school tax credit

5.5(1)      An individual is eligible for a school tax credit for a taxation year only if

(a) the individual is at least 55 years old at the end of the year;

(b) the individual or the individual's cohabiting spouse or common-law partner is the owner of the individual's principal residence or of a life interest in the principal residence, or has entered into an agreement to purchase the principal residence;

(c) the individual or the individual's cohabiting spouse or common-law partner has paid municipal taxes for school purposes in respect of the principal residence for the year; and

(d) the individual's cohabiting spouse or common-law partner has not claimed a school tax credit for the year.

School tax credit

5.5(2)      An individual's school tax credit for a taxation year is the least of the following amounts:

(a) the amount determined by the following formula:

$175. - .02A

In this formula, A is the amount, if any, by which the individual's family income for the year exceeds $15,000.;

(b) the amount, if any, by which the municipal taxes imposed for school purposes for the year in respect of the individual's principal residence exceed $160.;

(c) the amount, if any, which the individual's occupancy cost for the year exceeds the amount determined for the year for A in the formula in subsection 5.4(3).

Use of table

5.5(3)      An individual whose family income for a taxation year exceeds $15,000. may use a table approved by the treasurer for determining the amount otherwise determined by the formula in clause (2)(a).

Municipal tax reduction

5.6(1)      The municipal taxes imposed for a calendar year in respect of a principal residence of an individual who or whose spouse or common-law partner is its assessed owner shall be reduced, in accordance with the regulations, by the lesser of $325. and the amount by which those taxes exceed $250.

Reimbursement of municipality or local government district

5.6(2)      The Minister of Finance for Manitoba shall ensure that each municipality and local government district is reimbursed out of the Consolidated Fund, in accordance with the regulations, for the municipal tax reductions made under this section.

Repayment of municipal tax reduction

5.6(3)      If a municipal tax reduction has been granted in respect of a property for a period during which the property was the principal residence of neither its assessed owner nor the assessed owner's spouse or common-law partner, the person who was the assessed owner during that period must pay to the Minister of Finance for Manitoba, in accordance with the regulations, the portion of the reduction that relates to that period.

Interest payable

5.6(4)      If a person fails to pay to the Minister of Finance for Manitoba the amount payable under subsection (3) when it is due, interest is payable by the person on the unpaid amount at the prescribed rate from the date the municipal taxes levied in respect of the property for the year were due.

Demand by Minister

5.6(5)      The Minister of Finance for Manitoba may, by registered letter or by a letter served personally, demand that an amount payable under subsection (3) and any interest payable under subsection (4) be paid within 30 days after the date of the demand.

Penalty

5.6(6)      A person who fails to comply with a demand made under subsection (5) may be assessed a penalty equal to the lesser of

(a) $500.; and

(b) $5. multiplied by the number of days that all or any part of the amount demanded remains unpaid after the end of the 30-day period.

Regulations re municipal tax reduction

5.6(7)      The Lieutenant Governor in Council may make regulations respecting municipal tax reductions, including regulations

(a) extending or limiting the application of the municipal tax reduction to classes of residential properties or to residential properties based on ownership;

(b) prescribing the manner in which a municipality, a local government district or the minister responsible for the administration of The Northern Affairs Act must grant a municipal tax reduction;

(c) prescribing the manner in which a property may be designated as a principal residence;

(d) respecting applications by property owners for the municipal tax reduction;

(e) respecting changes in principal residences during a taxation year;

(f) respecting the repayment of all or part of a municipal tax reduction under subsection (3);

(g) respecting the reimbursement of municipalities and local government districts under subsection (2).

Personal Tax Credit

Eligibility for personal tax credit

5.7(1)      An individual who resides in Manitoba on the last day of a taxation year is eligible for a personal tax credit for the year unless

(a) the individual is an individual described in clause 5.4(1)(a), (c) or (d),

(b) another taxpayer claims an amount for the year in respect of the individual under paragraph 118(1)(a), (b) or (d), subsection 118.3(1) or (2) or section 118.8 of the federal Act;

(c) the individual is an inmate of a correctional facility or penitentiary on the last day of the year and has been an inmate of one or more such institutions for a total of at least six months during the year; or

(d) the individual is less than 18 years old at the end of the year and is not a parent, does not have a spouse or common-law partner and is not eligible for a property tax credit under section 5.4 for the year.

Personal tax credit

5.7(2)      Subject to subsection (5), an individual's personal tax credit for a taxation year is the amount determined by the following formula:

A - B

In this formula,

A   is the total of the following amounts that apply:

(a) $190.;

(b) $190., if the individual has claimed an amount for the year

(i) in respect of a spouse or common-law partner under paragraph 118(1)(a) of the federal Act, or

(ii) in respect of a dependant under paragraph 118(1)(b) of the federal Act;

(c) $60. for each dependant in respect of whom the individual has claimed an amount for the year under paragraph 118(1)(d) of the federal Act;

(d) $25. for each qualified dependant, other than a dependant in relation to whom the individual has claimed an amount under clause (b) or (c), in relation to whom the individual is an eligible individual (as defined in section 122.6 of the federal Act) at any time in the year;

(e) $110. in each of the following cases:

(i) the individual is at least 65 years old at the end of the year,

(ii) the individual has claimed an amount for the year under subsection 118.3(1) of the federal Act,

(iii) the individual has claimed an amount for the year under subsection 118.3(2) of the federal Act in relation to a dependant's impairment,

(iv) the individual has claimed an amount for the year under section 118.8 of the federal Act in relation to a physical or mental impairment of the individual's spouse or common-law partner,

(v) the individual has claimed an amount for the year under section 118.8 of the federal Act in relation to an age credit deductible under subsection 118(2) of that Act by the individual's spouse or common-law partner; and

B   is 1% of the individual's family income for the year.

Limitation

5.7(3)      In determining the amounts that may be included in the total for A in the formula under subsection (2),

(a) if two or more individuals could, but for subsection 4.10(3), claim an amount for the year under subsection 4.10(1) or (2) in respect of the same dependant, only the individual who claims an amount under subsection 4.10(1) or (2) in respect of the dependant may include an amount in respect of the dependant; and

(b) the amount determined for C in the formula in section 118.8 of the federal Act shall be applied to reduce the amounts included in A and B in that formula in the same order in which those amounts must be deducted in computing the tax payable under that Act by the individual's spouse or common-law partner.

Further limitation re certain dependants

5.7(4)      No amount may be included in subsection (2) for a taxation year in respect of a dependant who

(a) has received, or whose cohabiting spouse or common-law partner has received, during the year a social assistance payment referred to in paragraph 56(1)(u) of the federal Act; or

(b) is an inmate referred to in clause (1)(c).

Alternate personal tax credit claimable by only one spouse or partner

5.7(5)      If on the last day of a taxation year an individual is married to, or in a common-law partnership with, another individual who, though entitled to do so, claims neither a property tax credit nor a personal tax credit for the year under subsection 5(1), the individual's personal tax credit for the year is the amount determined by the following formula:

B + C - D

In this formula,

B   is the amount that would be determined for the individual for A in the formula under subsection (2) if the description of A were read without reference to subclauses (b)(i) and (e)(iv) and (v);

C   is the amount that would be determined for the individual's spouse or common-law partner for A in the formula under subsection (2) if the description of A were read without reference to subclauses (b)(i) and (e)(iv) and (v); and

D   is 1% of the individual's family income for the year.

Learning Tax Credit

Learning tax credit

5.8         An individual's learning tax credit for a taxation year is the lesser of $700. and 7% of the total of

(a) the fees for the individual's tuition, to the extent that they are included in determining the amount that the individual may deduct for the year under section 118.5 of the federal Act; and

(b) the amount determined for B in the formula under subsection 118.6(2) of the federal Act.

Transferred learning tax credit

5.9         If an individual deducts an amount under section 118.8 or 118.9 of the federal Act in respect of an amount that would otherwise be deductible by another individual under section 118.5 or 118.6 of that Act, the individual's transferred learning tax credit in respect of the other individual is an amount not exceeding the portion of the other individual's learning tax credit under section 5.8 that was not claimed by the other individual.

Transitional

5.10        In applying section 5 to the 2000 taxation year of an individual,

(a) that section and sections 5.2 to 5.7 shall be read without any of the references to "or common-law partner";

(b)  clause (a) of the definition "cohabiting spouse or common-law partner" in section 5.3 shall be read without reference to "or common-law partnership";

(c) the definition "family income" in section 5.3 shall be read without reference to "or common-law partner's"; and

(d) subsection 5.7(5) were read without reference to ", or in a common-law partnership with,";

unless the individual has elected under section 144 of the Modernization of Benefits and Obligations Act (Canada) to have sections 130 to 142 of that Act apply for that taxation year.

30          Subsection 7(5) is repealed and the following is substituted:

Meaning of "taxable income earned in the year in Manitoba"

7(5)        For the purposes of this section, section 8 and subsection 9(2), "taxable income earned in the year in Manitoba" of a corporation means its taxable income earned in the year in Manitoba as determined in accordance with federal regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act.

31          Section 7.1 is repealed.

32(1)       The definition "manufacturing or processing" in subsection 7.2(2) is repealed and the following is substituted:

"manufacturing or processing" has the meaning assigned by subsection 125.1(3) of the federal Act, and includes qualified activities as defined in the federal regulations made for the purpose of the definition "Canadian manufacturing and processing profits" in that subsection; (« fabrication ou transformation »)

32(2)       Subsection 7.2(3) is amended by striking out "if the trust were a taxpayer" and substituting "if the trust were a corporation".

32(3)       Subsection 7.2(4) is amended by striking out "if the partnership were a taxpayer" and substituting "if the partnership were a corporation".

33(1)       Clause (b) of the definition "eligible expenditure" in subsection 7.3(1) is amended by striking out "paragraph (b)" and substituting "paragraph (d)".

33(2)       Subsection 7.3(7) is repealed and the following is substituted:

Renunciating tax credit

7.3(7)      A corporation may renounce, on or before the balance-due day for a taxation year, its entitlement to all or any part of the portion of its research and development tax credit that can reasonably be attributed to an eligible expenditure incurred in the year, and, where it does so, it is deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the portion or part of the portion so renounced.

34          The definition "minister" in subsection 7.5(1) is repealed and the following is substituted:

"minister" means the Minister of Finance for Manitoba or a person designated by him or her to perform certain duties assigned to him or her under this Act or the regulations; (« ministre »)

35          Subsection 8(1) is amended

(a) by adding "the following amounts:" at the end of the part before clause (a) of the English version; and

(b) by repealing clauses (a) and (b) and substituting the following:

(a) the amount determined by the following formula:

17% x A x D/E

(b) the amount determined by the following formula:

(B - C) x D/E

In these formulas,

A   is the foreign investment income of the corporation for the year from sources in the other country,

B   is the part of any non-business-income tax (as defined in subsection 126(7) of the federal Act) paid by the corporation for the year to the government of a country other than Canada (other than any tax that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation),

C   is the amount of the deduction claimed by the corporation under subsection 126(1) of the federal Act,

D   is the taxable income earned in the year in Manitoba of the corporation, and

E   is the total of all amounts each of which is the taxable income earned in the year in a province, as determined in accordance with the federal regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act.

36(1)       Subsection 9(1) is amended

(a) in the part before clause (a), by striking out "minister" and substituting "treasurer"; and

(b) in subclause (a)(ii), by striking out "clause 131(6)(d)(i)(B)" and substituting "paragraph (b) of the description of A in the formula in the definition "refundable capital gains tax on hand" in subsection 131(6)".

36(2)       Subsection 9(3) is repealed.

37          The Division heading before section 10 and section 10 are repealed and the following is substituted:

Political contributions by corporations

10(1)       There may be deducted from the tax otherwise payable by a corporation under this Act for a taxation year the lesser of $500. and the political contribution credit determined according to the following table:

Total contributions (T) Political Contribution
Credit (PCC)
$100. or less PCC = .75 x T
more than $100. but not more than $550. PCC = $75. + (T - $100.)/2
more than $550. PCC = $300. + (T - $550.)/3

Application of subsections 4.11(2) and (3)

10(2)       Subsections 4.11(2) and (3) apply, with necessary modifications, to subsection (1).

DIVISION III

SPECIAL CASES

38          Section 11 is repealed.

39(1)       The definition "qualifying trust" in subsection 11.1(1) is repealed and the following is substituted:

"qualifying trust" for an individual in respect of an approved share means a trust governed by a registered retirement savings plan under which

(a) if it is not a spousal plan, the individual is the annuitant, or

(b) if it is a spousal plan, the individual or the individual's spouse is the annuitant, if the individual and no other individual claims a deduction under this section in respect of the share; (« fiducie admissible »)

39(2)       Subsection 11.1(2) is repealed.

39(3)       Subsection 11.1(2.1) is amended

(a) by repealing clauses (a) and (b) and substituting "$750."; and

(b) in the description of B in the formula, by striking out "or subsection (2)".

39(4)       Subsection 11.1(5) is repealed and the following is substituted:

Limitation on amount designated

11.1(5)     The total of the amounts designated under subsection (4) by a corporation for a taxation year in respect of approved shares purchased or subscribed for by an individual and a qualifying trust for the individual shall not exceed $5,000.

39(5)       Subsection 11.1(6) of the English version is amended by striking out "annual".

40          Section 12 is repealed.

41          Section 14 is repealed and the following is substituted:

Application of federal provisions (returns, estimate of tax, assessment and withholding)

14(1)       Subsection 70(7) (other than paragraph (b) of that subsection), sections 150, 150.1 and 151 and subsections 152(1), (1.11), (1.12), (2), (3), (3.1) and (4) to (8) and 156.1(4) of the federal Act and, subject to any regulations made under subsection(2), subsections 153(1) to (3) of the federal Act apply for the purposes of this Act.

Regulations re withholding

14(2)       The Lieutenant Governor in Council may make regulations respecting the determination of amounts to be withheld or deducted under subsection 153(1) of the federal Act as it applies for the purposes of this Act.

42          Subsection 15(2) is repealed.

43          Sections 18 to 20 are repealed and the following is substituted:

Instalment payable by farmer or fisher

18(1)       Subject to section 20, an individual whose chief source of income is farming or fishing shall pay to the treasurer, in respect of each taxation year and on or before December 31 of the year, 2/3 of

(a) the amount estimated by the individual under section 151 of the federal Act, as it applies for the purposes of this Act, to be his or her tax payable under this Act for the year; or

(b) the individual's tax payable under this Act for the immediately preceding year.

Provincial instalment linked to federal instalment

18(2)       If there is a collection agreement in effect, an individual's payment under subsection (1) for a taxation year must be made on the basis of

(a) clause (1)(a), if the individual's payment for the year under subsection 155(1) of the federal Act is made on the basis of paragraph (a) of that subsection; or

(b) clause (1)(b), if the individual's payment for the year under subsection 155(1) of the federal Act is made on the basis of paragraph (b) of that subsection.

Instalments payable by others

19(1)       Subject to section 20, an individual to whom section 18 does not apply shall pay to the treasurer, in respect of each taxation year

(a) on or before March 15, June 15, September 15 and December 15 in the year, 1/4 of

(i) the amount estimated by the individual under section 151 of the federal Act, as it applies for the purposes of this Act, to be his or her tax payable under this Act for the year, or

(ii) the individual's tax payable under this Act for the immediately preceding year; or

(b) on or before

(i) March 15 and June 15 in the year, 1/4 of the individual's tax payable under this Act for the second preceding year, and

(ii) September 15 and December 15 in the year, 1/2 of the amount, if any, by which the individual's tax payable for the immediately preceding year exceeds 1/2 of his or her tax payable under this Act for the second preceding year.

Provincial instalments linked to federal instalments

19(2)       If there is a collection agreement in effect, an individual's payments under subsection (1) for a taxation year must be made on the basis of

(a) subclause (1)(a)(i), if the individual's payments for the year under subsection 156(1) of the federal Act are made on the basis of subparagraph (a)(i) of that subsection; or

(b) subclause (1)(a)(ii), if the individual's payments for the year under subsection 156(1) of the federal Act are made on the basis of subparagraph (a)(ii) of that subsection; or

(c) clause (1)(b), if the individual's payments for the year under subsection 156(1) of the federal Act are made on the basis of paragraph (b) of that subsection.

Where instalments not required

20          No amount is payable by an individual under section 18 or 19 for a taxation year if he or she is not required to pay an instalment under section 155 or 156 of the federal Act for the year because of subsection 156.1(2) or (3) of that Act.

44          Sections 22 and 23 are repealed and the following is substituted:

Application of federal provisions (returns, payments and interest)

22          Subsections 70(2) and 104(2), paragraph 104(23)(e), sections 158 to 160, subsections 160.1(1), (1.1), (3) and (4), sections 160.2 and 160.3 and subsections 161(1) to (2.2), (4) to (6), (7), (9) and (11) of the federal Act apply for the purposes of this Act.

Interest on instalments

23          Despite subsections 161(4) and (4.01) of the federal Act, in calculating the interest payable by a taxpayer under subsection 161(2) of the federal Act as it applies for the purposes of this Act, the amount of the part or instalment on which interest is payable must be computed with reference to the paragraph of subsection 161(4) or (4.01) of the federal Act that applies in computing the amount of the part or instalment on which interest is payable under that Act.

45(1)       Subsection 25(1) is amended by striking out "and section 235".

45(2)       Subsections 25(2) and (3) are repealed.

46          Subsections 26(2) and (3) are repealed and the following is substituted:

Repeated failures

26(2)       Subsection 163(1), the part of subsection 163(2) before paragraph (b), and subsections 163(2.1), (3) and (4) of the federal Act apply for the purposes of this Act.

47          Section 28 is repealed.

48          Section 28.1 is repealed and the following is substituted:

Application of federal provisions (refunds)

28.1(1)     Subsections 164(1) to (1.31), (1.5) and (3) to (7) of the federal Act apply for the purposes of this Act.

Application of refund to provincial debt

28.1(2)     Instead of making a refund or repayment that might otherwise be made under this Act, the minister may, if the taxpayer is, or is about to become, liable to make any payment to Her Majesty in right of Manitoba or in right of Canada, apply the amount of the refund or repayment to that other liability and notify the taxpayer of that action.

49          Subsection 29(2) is repealed.

50          Subsection 30(2) is amended

(a) by repealing subclauses (a)(i) to (iii) and substituting the following:

(i) his or her residence for the purposes of this Act,

(ii) his or her Manitoba income for the year, or

(iii) his or her tax payable under this Act for a taxation year;

(b) in the part after clause (b), by striking out everything after "computation" and substituting "of taxable income."

51          Section 36.1 is amended by striking out "Department of National Revenue" and substituting "Canada Customs and Revenue Agency".

52          Clauses 37(1)(c), (d), (h) and (i) are repealed.

53          Subsection 39(1) is repealed and the following is substituted:

Certification of amount payable

39(1)       Subsections 223(1) to (4) of the federal Act, other than paragraphs  223(1)(b), (c) and (d), apply for the purposes of this Act with respect to any amount payable by a person under this Act that the Minister of National Revenue may not collect pursuant to a collection agreement.

54          Section 42 is repealed and the following is substituted:

Payment of money seized from debtor

42          Section 224.3 of the federal Act applies for the purposes of this Act.

55          Section 43 is amended by striking out "owing by the taxpayer" and substituting "owing under this Act by a taxpayer".

56          Subsection 45(2) is repealed.

57(1)       Subsection 46(1) is repealed and the following is substituted:

Application of federal provisions (withholding)

46(1)       Subsections 227(1) to (5.2), (8), (8.2) to (9), (9.2), (9.4), (9.5), (10) and (10.2) to (13) of the federal Act apply for the purposes of this Act.

57(2)       Clause 46(2)(b) is repealed and the following is substituted:

(b) for an amount that is payable by the person under subsection 224(4) or (4.1) or section 227.1 of the federal Act, as they apply for the purposes of this Act, or under section 52 of this Act;

57(3)       Subsection 46(3) is repealed and the following is substituted:

Application of penalty to amounts over $500

46(3)       Despite any other provision of this Act, other than subsection (4), and despite any other Act, the penalty for failure to remit an amount required to be remitted by a person on or before the day prescribed in the federal regulations made for the purposes of subsection 153(1) of the federal Act, as the regulations and that subsection apply for the purposes of this Act, shall apply only to the amount by which the total of all amounts so required to be remitted on or before that day exceeds $500.

Limitation on penalty not to apply

46(4)       Subsection (3) does not apply if the person required to remit an amount has, knowingly or under circumstances that amount to gross negligence,

(a) delayed in remitting the amount; or

(b) remitted an amount less than the amount required to be remitted.

58          Subsection 48(2) is repealed and the following is substituted:

Application of federal provisions (records)

48(2)       Subsections 230(2.1) to (8) of the federal Act apply for the purposes of this Act.

59          Subsection 53.2(5) is repealed.

60          Subsection 54(3) is amended

(a) by striking out "subsection 227(8), (8.5), (9) or (9.5)" and substituting "any of subsections 162(1) to (3), (5) and (7) and subsections 227(8), (8.5), (9) and (9.5)"; and

(b) by striking out "25 or".

61          Section 56 is amended by striking out "or 55 of this Act" and substituting "of this Act or subsection 239(1) or (1.1) of the federal Act as it applies for the purposes of this Act".

62          Subsection 57(2) is amended

(a) by striking out the section heading and substituting "Limitation";

(b) by repealing clause (a) and substituting the following:

(a) the Minister of Finance for Manitoba and the Minister of National Revenue; or

(c) in the part of clause (b) before subclause (i), by striking out "the minister" and substituting "the Minister of Finance for Manitoba or the Minister of National Revenue".

63(1)       Subsections 60(1) and (2) are repealed and the following is substituted:

Application of federal provisions (information and evidence)

60(1)       Subsections 244(1) to (5), (7) to (11), (13) to (17) and (20) to (22) of the federal Act apply for the purposes of this Act.

63(2)       Subsection 60(18) is repealed and the following is substituted:

Certificate of treasurer as proof

60(18)      A certificate of the treasurer as to

(a) the taxable income of a taxpayer for a taxation year; or

(b) an individual's income for the year;

is, in the absence of evidence to the contrary, proof that the taxable income for the taxation year or the income for the year is the amount stated in the certificate.

63(3)       Subsection 60(19) is amended

(a) by striking out the section heading and substituting "Documents issued or signed by federal officials"; and

(b) by striking out everything after "by the minister," and substituting "the deputy head or an employee of the Canada Customs and Revenue Agency on behalf of or in the place of the Minister of Finance or Deputy Minister of Finance for Manitoba or an official of the Manitoba Department of Finance is deemed, for the purposes of this Act, to be executed, issued or sworn by the Minister of Finance or Deputy Minister of Finance for Manitoba or an official of the Manitoba Department of Finance."

64(1)       Subsections 61(1) and (2) are amended by striking out "treasurer" and substituting "Minister of Finance for Manitoba".

64(2)       Subsection 61(3) is repealed and the following is substituted:

Exercise of powers by minister

61(3)       When a collection agreement is in effect, the minister may employ all the powers and shall perform all the duties that the Minister of Finance for Manitoba would, if no collection agreement were in effect, have under this Act, other than this Part, including the discretion to refuse to permit the production in judicial or other proceedings in Manitoba of any document that, in the opinion of the minister, it is not in the public interest to produce.

64(3)       Subsection 61(4) is amended

(a) by striking out the section heading and substituting "Deputy head";

(b) in the part before clause (a), by striking out "Deputy Minister of National Revenue for Taxation of Canada" and substituting "deputy head"; and

(c) by repealing clause (b) and substituting the following:

(b) designate officers of the Canada Customs and Revenue Agency to carry out functions, duties and powers that are similar to those carried out by them under the federal Act on behalf of the deputy head.

65          Subsection 62(1) is amended by striking out "minister on account" and substituting "treasurer on account".

66          Subsection 64(2) is amended by striking out "section 28 of this Act applies" and substituting "the provisions of the federal Act that apply for the purposes of this Act because of section 28.1 apply".

67(1)       Subsection 65(2) is amended by striking out "treasurer" wherever it occurs and substituting "Minister of Finance for Manitoba".

67(2)       The part of subsection 65(4) before clause (a) is amended by striking out "section 17 in respect of the tax payable" and substituting "subsection 153(1) of the federal Act, as it applies for the purposes of this Act, in respect of the tax payable under this Act".

67(3)       The part of subsection 65(5) after clause (b) is amended by striking out "tax payable" and substituting "tax payable under this Act".

67(4)       Subsection 65(6) is repealed and the following is substituted:

Credit

65(6)       If an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, an individual who is resident in Manitoba on the last day of the year is not required to remit any amount on account of tax payable under this Act by the individual for the year to the extent of the amount deducted or withheld on account of income tax payable, or that might have been payable, by the individual for the year under the law of that non-agreeing province.

67(5)       Subsection 65(7) is amended by striking out "section 28 of this Act applies" and substituting "the provisions of the federal Act that apply for the purposes of this Act because of section 28.1 apply".

67(6)       The part of subsection 65(8) after clause (b) is amended by striking out "under section 17" and substituting "under subsection 153(1) of the federal Act, as it applies for the purposes of this Act,".

68          The definition "refund of tax" in subsection 67(1) is amended

(a) by repealing clause (a) and substituting the following:

(a) as an overpayment of tax paid under this Act or the federal Act or collected pursuant to an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act (Canada); or

(b) in clause (c), by striking out "Unemployment Insurance Act, (Canada)" and substituting "Employment Insurance Act (Canada)"; and

(c) in the part after clause (d) of the English version, by striking out "overpayment or payment" and substituting "overpayments or payments".

69          Clauses 71(1)(a) and (b) and (2)(a) are amended by striking out "Tax Rebate Discounting Act (Canada)" and substituting "Tax Rebate Discounting Regulations (Canada)".

PART 5

THE MINING TAX ACT

C.C.S.M. c. M195 amended

70          Subsection 13.1(3) of The Mining Tax Act is amended in the part after clause (c) by striking out "and the Provincial Auditor confirms the excess of the aggregate amount paid under clauses (a) and (b) over the amount calculated under clause (c),".

PART 6

THE MOTIVE FUEL TAX ACT

C.C.S.M. c. M220 amended

71          The Motive Fuel Tax Act is amended by this Part.

72          Section 1 is amended

(a) by adding the following definitions in alphabetical order:

"carrier" means a person who owns or operates one or more motor vehicles used interprovincially or internationally for the commercial carriage of passengers or goods; (« transporteur »)

"carrier decal" means a decal issued to a carrier for the purposes of the International Fuel Tax Agreement by

(a) the director under section 19.3, or

(b) a member jurisdiction other than Manitoba; (« autocollant de transporteur »)

"carrier licence" means a licence issued to a carrier for the purposes of the International Fuel Tax Agreement by

(a) the director under section 19.3, or

(b) a member jurisdiction other than Manitoba; (« licence de transporteur »)

"International Fuel Tax Agreement" means the agreement entered into by the minister under section 19.1; (« Entente internationale concernant la taxe sur les carburants »)

"licensed carrier" means a person who holds a carrier licence; (« transporteur autorisé »)

"member jurisdiction" means a jurisdiction whose government is a party to the International Fuel Tax Agreement; (« ressort membre »)

"qualified motor vehicle" means a motor vehicle that is used interprovincially or internationally for the commercial carriage of passengers or goods and that

(a) has a registered gross vehicle weight greater than 11,797 kg,

(b) has, by itself or when combined with the trailer with which it is used, a gross vehicle weight greater than 11,797 kg, or

(c) has three or more axles,

but does not include

(d) a vehicle that is used exclusively for personal pleasure by an individual, or

(e) while it is being used exclusively for personal pleasure by an individual, a motor home, a pickup truck with attached camper or a bus; (« véhicule automobile admissible »)

(b) in the definition "licence", by adding "or the director" after "minister"; and

(c) by repealing the definitions "licensed purchaser" and "purchaser's licence".

73(1)       Subsections 2(3) to (7) are repealed and the following is substituted:

Single trip permit and tax

2(3)        Every time that a purchaser, other than a licensed carrier, brings motive fuel into the province in the fuel tank of a qualified motor vehicle, the purchaser shall, upon entering the province,

(a) obtain a permit; and

(b) pay to the minister a tax equal to the greater of

(i) $18., and

(ii) 6¢ for each kilometer travelled or to be travelled in the province before the vehicle next leaves the province, as estimated by the issuer of the permit.

Tax on motive fuel purchased outside Manitoba

2(4)        A licensed carrier who, in the operation of a qualified motor vehicle in the province, uses motive fuel that was not purchased in the province shall pay tax on that fuel, at the rate established under subsection (1), on or before the date prescribed by regulation or specified in a quarterly remittance form authorized by the minister.

Remittance by licensed carrier

2(5)        The tax payable by a licensed carrier under subsection (4) must be remitted

(a) in the case of a carrier licensed under section 19.3, to the minister in accordance with section 19.4; and

(b) in the case of a carrier licensed by a member jurisdiction other than Manitoba, to that jurisdiction in accordance with the terms and conditions of the licence.

73(2)       Subsections 2(24) and (25) are repealed.

74          Subsections 5(10) to (16) are repealed.

75(1)       Subsection 11(14) is amended by striking out "licensed purchaser" and substituting "licensed carrier".

75(2)       Subsection 11(15) is amended by striking out "licensed purchaser" and substituting "holder of a carrier license issued by the director".

76          Subsections 13(2) to (4) are repealed.

77          Subsection 17(4) is amended by striking out "or" at the end of clause (d), and by repealing everything after clause (d) and substituting the following:

the person liable to pay the debt shall pay interest, calculated and compounded monthly at the annual rate of interest prescribed or determined by regulation under The Financial Administration Act, to the minister on that debt.

78(1)       Subsection 19(1) is amended by striking out "all taxes, penalties, and costs, for which the debtor is liable; and the debtor shall pay them" and substituting "any debt due to the government under this Act, and the debtor shall pay the debt".

78(2)       Subsection 19(2) is amended by striking out "tax" and substituting "debt".

79          Section 19.1 is repealed and the following is substituted:

INTERNATIONAL FUEL TAX AGREEMENT

Minister may enter into agreement

19.1        The minister may, with the approval of the Lieutenant Governor in Council, enter into an agreement with one or more governments of other jurisdictions, whether inside or outside Canada, to facilitate the interjurisdictional administration of the collection, remittance and enforcement of the tax on motive fuel imposed under this Act and under similar Acts of other jurisdictions.

80          Subsection 19.2(1) is repealed and the following is substituted:

Payments to member jurisdictions

19.2(1)     Despite any other provision of this or any other Act, the minister may pay to a member jurisdiction the part of the tax or any other amount remitted to the minister in accordance with this Act or the International Fuel Tax Agreement that, under the agreement, is payable to that jurisdiction.

81          The following is added after section 19.2:

Carrier licence and decals

19.3(1)     On application by a carrier in a form authorized by the minister, and payment of the prescribed fee, the director may issue to the carrier

(a) a licence that recognizes the carrier as a person to whom the International Fuel Tax Agreement applies; and

(b) two decals for each qualified motor vehicle owned or operated by the carrier.

Additional decals

19.3(2)     Upon application by a licensed carrier in a form authorized by the minister and payment of the prescribed fee, the director must issue to the carrier two decals for each additional qualified motor vehicle owned or operated by the carrier and for which decals were not issued when the carrier's licence was issued under this section.

Obligations re licence and decals

19.3(3)     When a qualified motor vehicle is operated in Manitoba under a carrier licence, the operator of the vehicle must

(a) carry a copy of the licence in the cab of the vehicle at all times;

(b) produce the copy of the licence for inspection on the request of a peace officer or other authorized person; and

(c) ensure that carrier decals are affixed to the cab of the vehicle in accordance with the regulations.

Carrier licence and decals not transferable

19.3(4)     No person shall assign or otherwise transfer a carrier licence or carrier decals issued by the director.

Terms and conditions of licence

19.3(5)     The terms and conditions of a carrier licence include the terms and conditions of the International Fuel Tax Agreement that are set out or incorporated by reference in the application form for a carrier licence.

Quarterly reports and remittances

19.4(1)     The holder of a carrier licence issued by the director must

(a) provide to the director a quarterly report, in a form authorized by the minister, setting out for the period covered by the report all information required by the form, including

(i) the distance travelled in each member jurisdiction,

(ii) the quantity of motive fuel purchased in each member jurisdiction, and

(iii) the quantity of motive fuel used in each member jurisdiction, calculated in the manner specified by the form; and

(b) remit to the minister with the report an amount equal to the total of the net taxes, interest and penalties, if any, payable to the member jurisdictions, calculated in the manner specified by the form.

Refund to licensed carrier

19.4(2)     The minister may refund to the holder of a carrier licence issued by the director the amount, calculated according to the form of the quarterly report, of any net overpayment of motive fuel taxes or other amounts paid to member jurisdictions.

Records

19.5(1)     A carrier to whom a carrier licence is issued by the director must maintain records in accordance with any applicable regulations and the terms and conditions of the licence.

Access to records

19.5(2)     A carrier required to maintain records under subsection (1) must provide access to those records at the request of the director to

(a) the director or a person designated by the director for the purpose; or

(b) an official from a member jurisdiction.

Carrier licence may be suspended or cancelled

19.6(1)     The director may, in accordance with any applicable regulations, suspend or cancel a carrier licence issued by the director if the carrier or an operator of a vehicle operated under the licence fails to comply with this Act, the regulations or the terms and conditions of the licence.

Appeal of suspension or cancellation

19.6(2)     Section 10 applies, with necessary modifications, to a suspension or cancellation under subsection (1).

Return of licence and removal of decals

19.7(1)     When a carrier licence issued by the director is suspended or cancelled, or a licensed carrier ceases to engage in interjurisdictional commercial transportation of passengers or goods, the carrier must promptly

(a) surrender the licence to the director;

(b) destroy all copies of the licence in its possession or control; and

(c) remove from its vehicles all carrier decals that were issued in conjunction with the licence.

Removal of decals

19.7(2)     A carrier must promptly remove the carrier decals from any motor vehicle that the carrier has ceased to use for the interjurisdictional commercial transportation of passengers or goods.

82(1)       Subsection 22(1) is amended by adding the following after clause (a):

(a.1) for the purpose of determining the tax payable under subsection 2(4) (motive fuel purchased outside of Manitoba) or the amount to be remitted under section 19.4 (amounts payable to member jurisdictions); or

82(2)       Subsection 22(2) is amended by striking out "licensed purchaser" and substituting "licensed carrier".

82(3)       The following is added after subsection 22(4):

Offence of obstruction or failure to produce

22(4.1)     A person who obstructs a peace officer, or an officer appointed under this Act, in the performance of the officer's duties in enforcing any provision of this Act or the regulations, or in exercising any right or performing any duty under this Act or the regulations, is guilty of an offence.

83          Subsection 23(4) is amended

(a) by striking out "any tax payable by a purchaser has not been paid" and substituting "any tax or other amount to be paid or remitted by a purchaser has not been paid or remitted"; and

(b) by striking out "or payable by the purchaser" wherever it occurs and substituting "or the tax or other amount to be paid or remitted by the purchaser".

84(1)       Clause 27(3)(a) is amended by striking out "he is required under this Act;" and substituting "he or she is required by this Act, the regulations or the terms and conditions of a licence".

84(2)       The following is added after subsection 27(3):

Carrier licence or decals offence

27(3.1)     A person who fails to comply with subsection 19.3(3) or 19.7(1) or (2) is guilty of an offence.

84(3)       The part of subsection 27(4) before clause (a) is amended by striking out "this section" and substituting "subsection (1), (2), (3) or (3.1)".

PART 7

THE RETAIL SALES TAX ACT

C.C.S.M. c. R130 amended

85          The Retail Sales Tax Act is amended by this Part.

Unproclaimed provisions amended

86          Section 2.3, as enacted by section 18 of The Statute Law Amendment (Taxation) Act, 1996, S.M. 1996, c. 66, is amended

(a) by adding the following after subsection (2):

Transitional: 2-year exemption

2.3(2.1)    No tax is payable under subsection (2) by a person referred to in clause (2)(a) in respect of a vehicle for a registration period that begins before March, 2003 if tax was paid under section 2 on the last acquisition of the vehicle before March 2001.

Transitional: refund

2.3(2.2)    The minister may, on application by a person referred to in clause (2)(b), refund to the person the tax paid by the person under subsection (2) in respect of a vehicle for a registration period that begins before March 2003.

(b) by repealing subsection (14); and

(c) in subsection (15), by striking out "(12) or (14)" and substituting "(2.2) or (12)".

87(1)       Clause 3(1)(i) is amended by striking out ", farm machinery, and repair parts therefor as defined in the regulations" and substituting "and farm machinery as defined in the regulations, and repair parts for such implements and machinery".

87(2)       The section heading for subsection 3(21) is amended by adding "or" after "Ready-to-move".

88          Clause 4(1)(c) is amended by striking out "the charges for the facilities are charged to and payable by a person residing or carrying on business in the province" and substituting "the telecommunication is invoiced with respect to a transmitter that is ordinarily situated in the province."

89(1)       Subsection 13(4) is amended by striking out"at a rate or rates prescribed in the regulations, but where no rate or rates have been prescribed in the regulations, the debt bears interest at 3/4 of 1% for each full month after the date that the debt was due and payable;" and substituting "at the annual rate of interest prescribed or determined by regulation under The Financial Administration Act, calculated and compounded monthly;".

89(2)       Subsection 13(5) is amended by striking out ", but not in any case less than $5.,".

89(3)       Subsection 13(5.1) is amended by adding at the end "; and any such assessment is a debt due to Her Majesty in right of Manitoba and is recoverable as such in a court of competent jurisdiction."

89(4)       The following is added after subsection 13(5.1):

Failure to file return

13(5.2)     Every vendor who fails to file a return or a complete return within the time fixed or allowed for it to be filed is liable, regardless of whether the vendor is prosecuted or convicted under any provision of this Act, to a penalty to be assessed by the minister, not exceeding $100. for each day during which the failure continued,and any such penalty is a debt due to Her Majesty in right of Manitoba and is recoverable as such in a court of competent jurisdiction.

89(5)       Subsection 13(6) is repealed.

90          Subsection 24.1(1) is amended

(a) by adding "pay or" before "collect tax"; and

(b) by striking out "to collect or" and substituting "to pay, collect or".

91(1)       Subsection 29(1) is amended

(a) in clause (h), by striking out everything after "clause 3(1)(i)," and substituting "farm implements and farm machinery;"; and

(b) by repealing clause (q).

Unproclaimed provision amended

91(2)       Clause 29(1)(ee), as enacted by subsection 21(1) of The Statute Law Amendment (Taxation) Act, 1996, S.M. 1996, c. 66, is repealed.

92          Subsection 21(7) of The Statute Law Amendment (Taxation) Act, 1999, S.M. 1999, c. 3, is repealed and the following is substituted:

Part 5: The Retail Sales Tax Act

21(7)       Section 17 is retroactive and is deemed to have come into force on March 7, 1998.

21(7.1)     Section 18 is retroactive and is deemed to have come into force on April 30, 1999.

PART 8

THE REVENUE ACT

C.C.S.M. c. R150 amended

93          The Revenue Act is amended by this Part.

94          The definition "dealer" in section 1 is amended by adding "or delivers" after "sells".

95          The following is added after subsection 3(10):

Sale and delivery by different dealers

3(10.1)     Despite subsection (10), if taxable product is purchased from one dealer and delivered by another dealer who charges the purchaser for transportation of the taxable product, the purchaser shall pay the tax payable in respect of the transportation charge to that other dealer at the time that the charge is due and payable.

96          Subsection 6(1) is repealed and the following is substituted:

Dealer to collect tax

6(1)        Every dealer shall, at the time the tax is payable to the dealer under section 3, collect the tax so payable and shall, in accordance with the regulations, remit to the minister the tax so collected.

PART 9

THE TOBACCO TAX ACT

C.C.S.M. c. T80 amended

97          The Tobacco Tax Act is amended by this Part.

98          Subsection 2(1) is amended

(a) in clause (a), by striking out "" and substituting "8.6¢";

(b) in clause (c), by striking out "75¢" and substituting "$1.04";

(c) in clause (d), by striking out "5.3¢" and substituting "7.3¢";

(d) in subclause (e)(i), by striking out "57¢" and substituting "85¢"; and

(e) in clause (e)(ii), by striking out "" and substituting "".

99          The following is added after subsection 20(2.3):

Offence of obstruction or failure to produce

20(2.4)     A person is guilty of an offence if the person

(a) obstructs a peace officer, or an officer appointed under this Act, in the performance of the officer's duties in enforcing any provision of this Act or the regulations, or in exercising any right or performing any duty under this Act or the regulations; or

(b) fails or refuses to comply with a requirement to produce for inspection any tangible personal property, or any book, record, statement, account, letter or document, or any parcel, box, receptacle or container, in the person's possession or under the person's control.

PART 10

COMING INTO FORCE

Coming into force

100(1)      Subject to subsections (2) to (24), this Act comes into force on royal assent.

Part 1: The Corporation Capital Tax Act

100(2)      Section 2 is retroactive and is deemed to have come into force on June 28, 1999.

100(3)      Section 3 is retroactive and is deemed to come into force on January 1, 2000.

100(4)      Sections 4 and 5 come into force on a day fixed by proclamation.

Part 2: The Gasoline Tax Act

100(5)      Sections 7 to 11 and 13 to 20 come into force on June 30, 2000, and if this Act receives royal assent after that day, they are retroactive and are deemed to have come into force on that day.

100(6)      Section 12 comes into force on a day fixed by proclamation.

Part 3: The Health and Post Secondary Education Tax Levy Act

100(7)      Sections 22 and 24 come into force on a day fixed by proclamation.

Part 4: The Income Tax Act

100(8)      Clauses 26(1)(a) and (3)(d), section 51 and subsections 63(3) and 64(3) are retroactive and are deemed to have come into force on November 1, 1999.

100(9)      Clauses 26(1)(b) and (c), sections 29, 37, 40, 50 and 52 and subsection 63(2) are retroactive and are deemed to have come into force on January 1, 2000.

100(10)     Subsections 32(2) and (3) are retroactive and are deemed to have come into force on March 12, 1992.

100(11)     Subsection 33(1) is retroactive and is deemed to have come into force on January 1, 1996 with respect to taxation years beginning after 1995.

100(12)     Subsection 39(1) is retroactive and is deemed to have come into force on January 1, 1998 with respect to the 1998 and subsequent taxation years.

100(13)     Sections 41, 43, 44 and 57, subsections 67(2) and (6) and section 68 are retroactive and are deemed to have come into force as necessary for them to apply to the 1996 and subsequent taxation years.

100(14)     Subsection 63(1) is retroactive and is deemed to have come into force as necessary for it to apply to the 1992 and subsequent taxation years.

Part 5: The Mining Tax Act

100(15)     Section 70 comes into force on June 30, 2000, and if this Act receives royal assent after that day, section 70 is retroactive and is deemed to have come into force on that day.

Part 6: The Motive Fuel Tax Act

100(16)     Sections 72 to 76 and 78 to 84 come into force on June 30, 2000, and if this Act receives royal assent after that day, they are retroactive and are deemed to have come into force on that day.

100(17)     Section 77 comes into force on a day fixed by proclamation.

Part 7: The Retail Sales Tax Act

100(18)     Section 86 and subsections 89(1) and (3) to (5) and 91(1) come into force on a day fixed by proclamation.

100(19)     Subsection 87(1), section 88 and subsection 89(2) come into force on June 30, 2000, and if this Act receives royal assent after that day, they are retroactive and are deemed to have come into force on that day.

100(20)     Section 90 is retroactive and is deemed to have come into force on May 11, 2000 with respect to amounts assessed on or after that day.

100(21)     Subsection 91(2) is retroactive and is deemed to have come into force on June 30, 1999.

100(22)     Section 92 is retroactive and is deemed to have come into force on May 17, 1999.

Part 9: The Tobacco Tax Act

100(23)     Section 98 is retroactive and is deemed to have come into force on May 11, 2000.

100(24)     Section 99 comes into force on June 30, 2000, and if this Act receives royal assent after that day, section 99 is retroactive and is deemed to have come into force on that day.

Explanatory Note

This Bill amends several taxation statutes.

Part 1 amends The Corporation Capital Tax Act to

  • clarify that authorized foreign banks are taxed as banks;
  • clarify how a corporation may be taxed when it amalgamates or disposes of a substantial part of its assets; and
  • harmonize interest and penalty provisions with those in other taxation statutes.

Part 2 amends The Gasoline Tax Act to

  • enhance the administration of the taxation of licensed carriers under the International Fuel Tax Agreement;
  • repeal spent provisions relating to licensed purchasers; and
  • harmonize offence, interest and penalty provisions with those in other taxation statutes.

Part 3 amends The Health and Post Secondary Education Tax Levy Act to

  • replace outdated expressions; and
  • harmonize interest and penalty provisions with those in other taxation statutes.

Part 4 amends The Income Tax Act to

  • implement tax changes announced in the 2000 budget; and
  • correct technical anomalies.

Part 5 amends The Mining Tax Act to remove a requirement for the provincial auditor to confirm certain refundable amounts.

Part 6 amends The Motive Fuel Tax Act to

  • enhance the administration of the taxation of licensed carriers under the International Fuel Tax Agreement;
  • repeal spent provisions relating to licensed purchasers; and
  • harmonize offence, interest and penalty provisions with those in other taxation statutes.

Part 7 amends The Retail Sales Tax Act to

  • implement changes announced in the 2000 budget; and
  • harmonize interest and penalty provisions with those in other taxation statutes.

Part 8 amends The Revenue Act to clarify the application of tax to delivery charges when taxable product is purchased from one dealer and delivered by another.

Part 9 amends The Tobacco Tax Act to

  • implement tax changes announced in the 2000 budget; and
  • add an offence provision for obstructing an officer or failing to produce something for inspection.