Third Session, Thirty-Eighth 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 44
THE BUDGET IMPLEMENTATION AND TAX STATUTES AMENDMENT ACT, 2005
| Section | Table of Contents |
| PART 1 | |
| THE CORPORATION CAPITAL TAX ACT | |
| 1 | C.C.S.M. c. C226 amended |
| 2 | |
| 3 | |
| 1.1 | Administration and enforcement |
| 4 | |
| 5 | |
| 6(1) | |
| (2) | |
| 7 | |
| 8 | |
| (3) | Effective date |
| PART 2 | |
| THE GASOLINE TAX ACT | |
| 9 | C.C.S.M. c. G40 amended |
| 10 | |
| 11 | |
| 1.1 | Administration and enforcement |
| 12 | |
| 13 | |
| 14 | |
| 15 | |
| (2) | Effective date |
| PART 3 | |
| THE HEALTH AND POST SECONDARY | |
| EDUCATION TAX LEVY ACT | |
| 16 | C.C.S.M. c. H24 amended |
| 17 | |
| 18 | |
| 19 | |
| 1.2 | Administration and enforcement |
| 20(1) | |
| (2) | |
| (3) | |
| (4) | |
| 21 | |
| 22 | |
| 23 | |
| 38(1) | Regulations |
| (2) | Effective date |
| 24 | |
| PART 4 | |
| THE INCOME TAX ACT | |
| 25 | C.C.S.M. c. I10 amended |
| 26 | |
| 27 | |
| 28(1) | |
| (2) | |
| (2.3) | |
| (3) | |
| 29(1) | |
| (3) | Basic personal amount |
| (2) | |
| 30(1) | |
| (2) | |
| (1.1) | |
| 31(1) | |
| (2) | |
| 32 | |
| MANUFACTURING INVESTMENT TAX CREDIT | |
| 33(1) | |
| (2) | |
| (1.1) | Refundable credit |
| (3) | |
| (4) | |
| (2.2) | |
| (2.3) | Transitional |
| (2.4) | Property acquired when available for use |
| (2.5) | Limitations |
| 34 | |
| RESEARCH AND DEVELOPMENT TAX CREDIT | |
| 35(1) | |
| (2) | |
| (2.1) | Transitional |
| (2.2) | Limitations |
| 36(1) | |
| (2) | |
| 37(1) | |
| (2) | |
| (3) | |
| (1.3) | Frequent filming bonus involving series |
| 38 | |
| 39(1) | |
| (2) | |
| (3) | |
| (2.1) | Limitations |
| 40 | |
| 41 | |
| PART 5 | |
| THE LAW FEES AND | |
| PROBATE CHARGE ACT | |
| 42 | C.C.S.M. c. L80 amended |
| 43 | |
| 44 | |
| PART 6 | |
| THE MINING TAX ACT | |
| 45 | C.C.S.M. c. M195 amended |
| 46 | |
| 47 | |
| 1.2 | Administration and enforcement |
| 48 | |
| 49 | |
| 50(1) | |
| (2) | |
| 51 | |
| 52 | |
| 45(1) | Regulations |
| (2) | Effective date |
| PART 7 | |
| THE MOTIVE FUEL TAX ACT | |
| 53 | C.C.S.M. c. M220 amended |
| 54 | |
| 55 | |
| 1.1 | Administration and enforcement |
| 56 | |
| 57 | |
| 58 | |
| 59 | |
| (2) | Effective date |
| PART 8 | |
| THE MUNICIPAL ACT | |
| 60 | C.C.S.M. c. M225 amended |
| 61(1) | |
| (2) | |
| PART 9 | |
| THE PROPERTY TAX AND INSULATION | |
| ASSISTANCE ACT | |
| 62 | C.C.S.M. c. P143 amended |
| 63 | |
| PART III.1 | |
| FARMLAND SCHOOL TAX REBATE | |
| 16.1 | Definitions |
| 16.2(1) | Rebate of 50% of school tax |
| (2) | Change in ownership |
| (3) | Amalgamation or winding-up |
| 16.3(1) | Property taxes to be paid in full |
| (2) | Exception |
| 16.4(1) | Application for rebate |
| (2) | Form and content of application |
| (3) | Application deadline |
| 16.5 | Claims for rebate by two or more taxpayers |
| 16.6 | Rebate reduced by school tax reduction |
| 16.7 | Delegation |
| 16.8 | Regulations |
| 16.9 | Reimbursement of municipality |
| 16.10(1) | Recovery of school tax rebate or reduction |
| (2) | Interest payable |
| PART III.2 | |
| SCHOOL TAX REDUCTION | |
| 16.11(1) | Regulations for school tax reduction program |
| (2) | Effective date |
| PART 10 | |
| THE PROVINCIAL-MUNICIPAL TAX SHARING ACT | |
| 64 | C.C.S.M. c. T5 amended |
| 65 | |
| 66 | |
| PART 1 | |
| MUNICIPAL TAXATION | |
| 67 | |
| 68 | |
| 69 | |
| PART 2 | |
| GRANTS TO MUNICIPALITIES | |
| 6 | Definitions |
| 7(1) | Building Manitoba Fund established |
| (2) | Credit to fund for 2005-06 fiscal year |
| (3) | Annual credit to fund |
| (4) | Grants charged to fund |
| 8(1) | Estimates of expenditure for grants to municipalities |
| (2) | Deferral for anticipated reductions |
| (3) | Adjustment for decrease in revenue |
| 9(1) | Allocation and distribution of grants |
| (2) | Conditional grants |
| (3) | Adjustments for increase or decrease in revenue |
| (4) | Prior rights to grants or recoveries extinguished |
| 10 | Regulations |
| PART 3 | |
| C.C.S.M. REFERENCE | |
| 11 | C.C.S.M. reference |
| PART 11 | |
| THE RETAIL SALES TAX ACT | |
| 70 | C.C.S.M. c. R130 amended |
| 71 | |
| 72 | |
| 1.1 | Administration and enforcement |
| 73(1) | |
| (2) | |
| (3) | |
| 74 | |
| 75(1) | |
| (2) | |
| 76 | |
| 77(1) | |
| (2) | Vendor to file returns and remit tax |
| (2.1) | Recovery of amount remitted but not collected |
| (2) | |
| 78 | |
| 79 | |
| 80(1) | |
| (2) | |
| (3) | |
| 81 | |
| 82(1) | |
| (2) | |
| (2) | Effective date |
| PART 12 | |
| THE REVENUE ACT | |
| 83 | C.C.S.M. c. R150 amended |
| 84 | |
| THE TAX ADMINISTRATION AND | |
| 85 | |
| PART I | |
| TAX ADMINISTRATION | |
| DIVISION 1 | |
| GENERAL | |
| 1(1) | Definitions |
| (2) | Solicitor-client privilege |
| (3) | Process for dealing with solicitor-client privilege |
| (4) | No privilege in respect of accounting record |
| 2 | Crown bound |
| 3(1) | Director may delegate |
| (2) | Director may continue to act |
| 4(1) | Designation of tax officer |
| (2) | Status as peace officer |
| 5 | Minister or director may approve forms |
| 6(1) | Information confidential |
| (2) | Reciprocal exchange of information |
| (3) | Notice of arrangements and agreements |
| (4) | Conflict |
| 7(1) | Service of documents |
| (2) | Service by mail |
| (3) | Time of mailing and delivery |
| (4) | Service by delivery |
| 8 | Evidence of service |
| 9 | Earlier due date |
| DIVISION 2 | |
| COMPLIANCE | |
| TAX AUTHORIZATIONS | |
| 10(1) | Reasons not to issue tax authorization |
| (2) | Additional reasons not to issue tax authorization |
| (3) | Cancellation |
| (4) | Opportunity to make submission |
| (5) | Temporary suspension |
| (6) | When cancellation or suspension becomes effective |
| (7) | Automatic cancellation or refusal to issue |
| (8) | Appeal of director's decision or order |
| 11(1) | Return of tax authorization |
| (2) | Removal of carrier decals |
| REPORTING AND PAYMENT OF TAX | |
| 12(1) | Director may require bond |
| (2) | Amount of bond |
| (3) | Other form of security |
| 13(1) | Payment by purchaser applied first to tax |
| (2) | Payment by deputy collector applied first to tax |
| 14(1) | Definitions |
| (2) | Contractor to provide information |
| (3) | Extra-provincial contractor to provide security |
| (4) | Other form of security |
| (5) | Liability of principal |
| (6) | Principal entitled to recover amount paid |
| 15(1) | |
| (2) | Director may extend filing or payment deadline |
| 16(1) | Reporting by receiver, trustee, etc. |
| (2) | Receiver, trustee or other like person to file returns |
| (3) | Director may issue certificate |
| RECORDS | |
| 17(1) | Taxpayer to maintain records |
| (2) | Carrier to maintain records |
| (3) | Records must be adequate |
| (4) | Director may order records to be kept |
| 18(1) | How long records must be kept |
| (2) | When records may be destroyed |
| (3) | Records requiring authorization to be destroyed |
| (4) | Extended preservation |
| (5) | Preserving electronic records |
| INSPECTIONS | |
| 19 | Tax authorization to be produced for inspection |
| 20 | Records to be made available for inspection, etc. |
| 21(1) | Order to produce records, etc |
| (2) | Who may be required to produce records, etc. |
| (3) | Contents of order |
| (4) | Director may assess penalty |
| 22(1) | General authority to inspect |
| (2) | Right of entry |
| (3) | Officer to show identification |
| (4) | Assistance to tax officer |
| (5) | Electronic records |
| (6) | Tax officer may make copies |
| (7) | Tax officer may remove records to make copies |
| 23 | Copies as evidence |
| 24(1) | Warrant to enter and inspect |
| (2) | Application without notice |
| 25(1) | Right to take fuel samples |
| (2) | Stopping vehicle to examine fuel |
| (3) | Stopping vehicle operated under carrier licence |
| INVESTIGATION, SEARCH AND SEIZURE | |
| 26 | General authority of tax officer |
| 27(1) | Warrant for search and seizure |
| (2) | Warrant re unmarked tobacco held by common carrier |
| (3) | Application without notice |
| (4) | Tax officer may secure evidence |
| 28(1) | Search and seizure without warrant |
| (2) | Seizure without warrant |
| (3) | Seizure of vehicle or container |
| 29 | Seizure of abandoned tobacco |
| 30 | Stopping vehicle on suspicion of tobacco offence |
| 31(1) | Tax officer may seize bulk fuel, vehicle, etc. |
| (2) | Stopping vehicle to seize bulk fuel |
| DISPOSITION OR RELEASE OF SEIZED ITEMS | |
| 32 | Property seized without a warrant |
| 33(1) | Return of records |
| (2) | Justice may extend time to return records |
| (3) | Decision final |
| 34(1) | Release of bulk fuel |
| (2) | Sale of bulk fuel |
| (3) | Interest on proceeds |
| (4) | Disposition of proceeds and interest |
| (5) | Compensation where cost of fuel exceeds proceeds |
| (6) | Tax deemed to be paid |
| (7) | Refund |
| 35 | Disposition of perishable or dangerous items |
| 36(1) | Release of seized tobacco |
| (2) | Disposition of seized tobacco |
| (3) | Release or payment — no conviction |
| (4) | Application for release or compensation |
| (5) | Tobacco to be marked before release |
| (6) | Forfeiture on conviction |
| (7) | Forfeiture of abandoned or unmarked tobacco |
| DIVISION 3 | |
| TAX DEBT | |
| LIABILITY FOR TAX DEBT | |
| 37(1) | Tax debt |
| (2) | Tax debt not affected by offence |
| 38(1) | Interest |
| (2) | When interest begins to accrue |
| (3) | Interest on deficient instalments |
| (4) | No interest on refund of instalments |
| 39(1) | Penalty for late payment |
| (2) | Director may impose additional penalty |
| 40(1) | |
| (2) | Report of waiver |
| 41 | Sale or assignment of account receivable |
| 42(1) | Tax debt not dependent on assessment |
| (2) | Liabilities arising only by assessment |
| (3) | Exception — liability not acknowledged by debtor |
| 43(1) | Corporate directors liable for corporation's tax debt |
| (2) | Prudent director not liable |
| (3) | Limitation period for assessment |
| (4) | Limitations |
| (5) | Director may allocate payments |
| (6) | |
| (7) | Corporation remains liable |
| 44(1) | Liability of transferee after non-arm's length transfer |
| (2) | Limit of transferee's liability |
| (3) | Meaning of "arm's length" |
| (4) | Effect of payments |
| (5) | Transferor remains liable |
| 45(1) | Definitions |
| (2) | Seller to obtain tax certificate before sale in bulk |
| (3) | Application fee |
| (4) | Director to issue certificate |
| (5) | Seller to provide certificate to buyer |
| (6) | Liability of buyer |
| (7) | Buyer's right of recovery |
| ASSESSMENT OF TAX DEBT | |
| 46(1) | Assessment or reassessment of tax debt |
| (2) | Clarification |
| (3) | Determination of taxable amount |
| (4) | Estimate of tax payable |
| (5) | Tax deemed to have been collected |
| 47(1) | Limits on assessment or reassessment |
| (2) | Limit on reassessment after appeal |
| 48(1) | Notice of assessment or reassessment |
| (2) | Notice to taxpayer |
| 49 | Assessment deemed correct |
| 50 | Time for payment |
| ANTI-AVOIDANCE | |
| 51(1) | Definitions |
| (2) | General anti-avoidance rule |
| (3) | Request for adjustments |
| (4) | Director's response |
| (5) | Determining tax consequences |
| (6) | Application |
| 52(1) | Advance ruling |
| (2) | Fees re advance ruling |
| REFUND OF OVERPAYMENT | |
| 53(1) | Refund of overpayment by taxpayer |
| (2) | Refund of overpayment by collector |
| (3) | Limitation |
| (4) | No other right of recovery |
| (5) | Amounts under $10. not refundable |
| DIVISION 4 | |
| APPEALS | |
| 54 | Appeals do not affect tax debt obligations |
| 55 | Appeal to Tax Appeals Commission |
| 56(1) | How to appeal |
| (2) | Acting on behalf of taxpayer |
| 57(1) | Powers of Tax Appeals Commission |
| (2) | Power to vary |
| (3) | Technical irregularity |
| 58 | Appeal to Court of Queen's Bench |
| 59(1) | How to appeal |
| (2) | Appeal of director's decision or order |
| (3) | Appeal of commission's decision |
| (4) | Appellant to serve application on other party |
| (5) | Court decision |
| 60 | Refund after appeal |
| DIVISION 5 | |
| TAX DEBT RECOVERY | |
| ENFORCEMENT ACTIONS | |
| 61 | Exercise of powers to collect tax debts |
| 62 | Tax debt recoverable by civil action |
| 63 | Tax debt certificate |
| 64(1) | Lien for tax debt |
| (2) | Extent of security |
| (3) | When lien takes effect |
| (4) | Effect of failure to proceed |
| 65(1) | Registration against real property |
| (2) | Registration on production |
| (3) | Enforcement of lien on real property |
| (4) | Director may postpone, amend or discharge lien |
| 66(1) | Registration in Personal Property Registry |
| (2) | Effect of registration |
| (3) | Priority of lien for tax collected but not remitted |
| (4) | Exceptions to priority |
| (5) | |
| 67(1) | Tax debt warrant |
| (2) | Effect of warrant |
| (3) | Authority of sheriff re cash and credit card receipts |
| 68(1) | Director may demand payment from third party |
| (2) | Joint account |
| (3) | Application of demand to periodic payments |
| (4) | Amount payable by third party |
| (5) | When payment is due |
| (6) | Priority of demand — tax collected and not remitted |
| (7) | Priority of demand — other tax debt |
| (8) | Personal liability under a third party demand |
| 69(1) | |
| (2) | Director may demand payment from other lender |
| (3) | Expiry of demand |
| (4) | Liability of lender |
| 70 | Content of demand for payment |
| 71(1) | Payment discharges liability |
| (2) | Deemed loan or payment |
| 72 | Right of recovery |
| DEEMED TRUST FOR TAXES NOT REMITTED | |
| 73(1) | "Collector" includes deputy collector |
| (2) | Property of collector deemed to be held in trust |
| (3) | Priority of taxes collected and held in trust |
| (4) | |
| (5) | Liability for distribution without certificate |
| (6) | Collector remains liable |
| (7) | Right of recovery |
| RELIEF FROM ENFORCEMENT | |
| 74(1) | Application for court protection from enforcement |
| (2) | Time to make application |
| (3) | Court order may terminate or limit enforcement action |
| (4) | Limitations |
| (5) | Court may require tax debtor to provide security |
| DIVISION 6 | |
| OFFENCES AND PENALTIES | |
| 75(1) | Offences — records and reporting |
| (2) | |
| (3) | Offences — failure to comply with director's order |
| (4) | Penalty |
| (5) | Additional order to file returns |
| (6) | Additional order to comply with director's order |
| 76(1) | Offences — inspections and investigations |
| (2) | Offences — evasion |
| (3) | Offence — refusal to pay or remit |
| (4) | Penalty |
| (5) | Additional penalty for tax evasion |
| (6) | Onus re payment or remittance of tax |
| (7) | Additional order to pay or remit tax |
| 77(1) | Offences — fuel |
| (2) | Offences — carrier licences |
| (3) | Penalty |
| 78(1) | "Motor vehicle" defined |
| (2) | Impoundment of vehicle |
| (3) | Release of vehicle |
| (4) | Sale of vehicle |
| (5) | Liability for negligence |
| 79(1) | Offences — bulk fuel |
| (2) | Penalty |
| (3) | Additional penalty |
| 80(1) | Offences — marking or stamping tobacco packaging |
| (2) | Offences — possession or sale of tobacco |
| (3) | Offence — accounting for tax on tobacco |
| (4) | Penalty |
| (5) | Additional fine |
| (6) | Reduction of additional fine |
| (7) | Presumption re possession for purpose of sale |
| 81 | Separate offence for each transaction |
| 82(1) | |
| (2) | |
| 83(1) | Six-year limitation period for prosecution |
| (2) | Extended limitation period for certain offences |
| 84(1) | Affidavit as to compliance by director |
| (2) | Certificate of analyst |
| DIVISION 7 | |
| REGULATIONS | |
| 85(1) | Regulations |
| (2) | Effective date |
| DIVISION 8 | |
| TRANSITIONAL PROVISIONS | |
| 86 | Definitions |
| 87 | General application to prior periods and events |
| 88 | Penalty for late payment or remittance |
| 89 | Interest |
| 90(1) | Matters under appeal |
| (2) | Appeal period not expired |
| (3) | |
| 91(1) | Priority of lien registered under former Act |
| (2) | |
| (3) | |
| (4) | Lien may be registered under this Part |
| 92 | Continuation of debt recovery action |
| 93 | Offences and penalties |
| 94 | Tax officers |
| 95(1) | Regulations |
| (2) | Effective date of regulation |
| 86 | |
| 87 | |
| 97(1) | Tax imposed |
| (2) | Tax to nearest cent |
| (3) | When tax payable |
| (4) | Transportation charge payable to other dealer |
| (5) | Taxable product acquired otherwise than from a dealer |
| 98 | Consumption of taxable product on which tax not paid |
| 99(1) | |
| (2) | Exemption for domestic use of coal and derivatives |
| (3) | Partial exemption for combined use |
| 88(1) | |
| (2) | |
| (3) | |
| (3) | |
| (4) | |
| (4) | Approval and notice of special rate |
| (5) | Application of rate reduction |
| (6) | Notice of change |
| 89 | |
| 101(1) | Dealer to be licensed |
| (2) | Director may issue licence |
| (3) | Licence not transferable |
| 90 | |
| 91 | |
| 92(1) | |
| (2) | |
| (2) | Tax on sale to non-purchaser |
| (3) | |
| (4) | |
| (3) | Dealer to file returns and remit tax |
| (4) | Recovery of amount remitted but not collected |
| (5) | |
| 93(1) | |
| (2) | |
| 94 | |
| 95 | |
| 96 | |
| 97 | |
| 98 | |
| 99 | |
| 100 | |
| 101 | |
| 109(1) | Regulations |
| (2) | Effective date |
| 110 | Application of Part I |
| 102 | |
| 103 | |
| 104(1) | |
| (2) | |
| 105 | |
| 106 | |
| 107 | |
| 108 | |
| 109 | |
| 120 | Application of Part I |
| 110 | |
| 111 | |
| 112 | |
| PART V | |
| C.C.S.M. REFERENCE | |
| 126 | C.C.S.M. reference |
| PART 13 | |
| THE TOBACCO TAX ACT | |
| 113 | C.C.S.M. c. T80 amended |
| 114 | |
| 115 | |
| 1.1 | Administration and enforcement |
| 116 | |
| 117 | |
| 118 | |
| 119 | |
| 120 | |
| 121 | |
| 4.1 | Permit for possession of cigarettes or fine cut tobacco |
| 4.2(1) | Permit required for producing tear tape |
| (2) | Possession of tear tape prohibited |
| 122(1) | |
| 5(1) | Director may issue licence or permit |
| (2) | |
| (3) | |
| (4) | |
| (4) | Licence or permit not transferable |
| 123 | |
| 124(1) | |
| (2) | |
| (3) | Effective date |
| PART 14 | |
| MISCELLANEOUS AMENDMENTS | |
| 125 | Consequential amendment, C.C.S.M. c. B5 |
| 126 | C.C.S.M. c. C107 amended |
| 127(1) | Consequential amendments, C.C.S.M. c. E110 |
| (2) | |
| (3) | |
| 102.1 | Priority of lien for tax collected and not remitted |
| 128(1) | Consequential amendments, C.C.S.M. c. F20 |
| (2) | |
| (3) | |
| (7) | Priority of lien for tax collected and not remitted |
| 129 | Consequential amendment, C.C.S.M. c. S230 |
| 130 | Consequential amendment, C.C.S.M. c. W200 |
| 131 | Unproclaimed provisions in S.M. 1992, c. 52 repealed |
| 132 | Unproclaimed provisions in S.M. 2000, c. 39 repealed |
| 133 | Unproclaimed provisions in S.M. 2002, c. 38 repealed |
| 134(1) | |
| (2) | |
| (3) | |
| (4) | |
| 135 | Conditional amendment |
| PART 15 | |
| COMING INTO FORCE | |
| 136(1) | Coming into force |
| (2) | Part 1: Corporation Capital Tax Act |
| (3) | Part 2: Gasoline Tax Act |
| (4) | |
| (5) | Part 4: Income Tax Act |
| (6) | |
| (7) | |
| (8) | |
| (9) | |
| (10) | |
| (11) | Part 6: Mining Tax Act |
| (12) | Part 7: Motive Fuel Tax Act |
| (13) | Part 8: Municipal Act |
| (14) | |
| (15) | Part 9: Property Tax and Insulation Assistance Act |
| (16) | Part 10: Provincial-Municipal Tax Sharing Act |
| (17) | Part 11: Retail Sales Tax Act |
| (18) | |
| (19) | Part 12: Revenue Act |
| (20) | |
| (21) | Part 13: Tobacco Tax Act |
| (22) | Part 14: Miscellaneous amendments |