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3rd Session, 40th Legislature

This HTML version is provided for ease of use and is based on the bilingual version that was distributed in the Legislature after First Reading.

Bill 47

THE BUDGET IMPLEMENTATION AND TAX STATUTES AMENDMENT ACT, 2013


  Bilingual version (PDF) 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           Subsection 6(2) is amended by striking out "4%" and substituting "5%".

3           Subsection 13(4) is replaced with the following:

Exemption for small financial institutions

13(4)       For a fiscal year ending after April 12, 2011, no tax is payable under this Act by a bank, loan corporation, trust corporation or trust and loan corporation if, at the close of the fiscal year,

(a) the corporation's taxable paid up capital is less than $4,000,000,000; and

(b) where the corporation is a member of an associated group for the calendar year in which the fiscal year ends, the total of the taxable paid up capital of those members of the group that are banks, loan corporations, trust corporations or trust and loan corporations is less than $4,000,000,000.

PART 2

THE CRIMINAL PROPERTY FORFEITURE ACT

C.C.S.M. c. C306 amended

4           The Criminal Property Forfeiture Act is amended by this Part.

5(1)        Subsection 19(3) is replaced with the following:

Payments re property under Part 2

19(3)       Money paid into the fund from the forfeiture or management of property that was the subject of proceedings under Part 2 is to be paid out first

(a) to reimburse the director for costs and expenses incurred in the proceedings; and

(b) to reimburse the asset manager for costs and expenses incurred in managing, selling or otherwise disposing of the property in question.

Payments re property under Part 3

19(3.1)     Money paid into the fund from the forfeiture or management of property that was forfeited as the result of administrative forfeiture proceedings under Part 3 is to be paid out first to defray the costs of operating the administrative forfeiture program, by way of payment of a prescribed percentage of the value of the forfeited property.

Payments re other property

19(3.2)     Money paid into the fund as the result of the forfeiture or management of property referred to in subsection 19.7(3) is to be paid out first to reimburse the asset manager for costs and expenses incurred in managing, selling or otherwise disposing of the property in question.

5(2)        Subsection 19(4) of the English version is amended in the part before clause (a) by striking out "remains in the fund after the director and asset manager have been reimbursed under subsection (3)" and substituting "remain in the fund after payments have been made under subsection (3), (3.1) or (3.2)".

6           Subclause 19.10(1)(c)(i) is amended by striking out "for costs and expenses under subsection 19(3)" and substituting "under subsections 19(3), (3.1) and (3.2)".

7           Clause 24(f) is amended

(a) by striking out "subsection 19(3)" and substituting "subsections 19(3) and (3.2)"; and

(b) by adding "and expenses" after "those costs" in the English version.

PART 3

THE FUEL TAX ACT

C.C.S.M. c. F192 amended

8           The Fuel Tax Act is amended by this Part.

9           The following is added after clause 8(f):

(f.1) for natural gas to be used in operating a motor vehicle,

(i) 3.0¢ per cubic metre purchased before April 1, 2014,

(ii) 6.0¢ per cubic metre purchased after March 31, 2014 and before April 1, 2015, and

(iii) 10.0¢ per cubic metre purchased after March 31, 2015;

10          The following is added after subsection 13(8):

Refund — fuel losses by deputy collector

13(9)       A deputy collector who has lost fuel as a result of an accident, a fire, faulty equipment or theft is entitled to a refund of any amount the deputy collector has remitted on account of tax in respect of the lost fuel unless the deputy collector has received a credit or refund from the collector in respect of the amount.

11          Section 14 is replaced with the following:

Refund application

14          To obtain a refund under section 13, the applicant must file with the director, within two years after the purchase date, a signed application that includes

(a) the reasons for the refund request;

(b) evidence sufficient to satisfy the director that the tax was paid or the tax proceeds were remitted by the applicant and that the applicant is entitled to the refund; and

(c) if another person is acting on the applicant's behalf, a written authorization signed by the applicant.

12          Section 17 is replaced with the following:

Licence required for sale of bulk or dyed fuel

17(1)       No person shall carry on business or act as a dealer of bulk fuel or dyed fuel in Manitoba except as authorized by a licence issued by the director.

No sale of dyed fuel to unlicensed dealer

17(2)       No dealer shall sell or offer to sell dyed fuel in Manitoba to another dealer who is not authorized to sell dyed fuel.

13          Section 18 is repealed.

14          The following is added after section 22 and before the centred heading that follows it:

Remote northern reserve permit

22.1(1)     The director may, on terms specified by the director, issue a remote northern reserve permit to a dealer who sells fuel that will be delivered to a remote northern reserve.

Fuel delivery

22.1(2)     Despite section 22, a remote northern reserve permit may authorize the permit holder not to collect or remit tax proceeds in respect of fuel that will be delivered by a permit holder to a remote northern reserve.

Obligations of permit holder

22.1(3)     The director may require a remote northern reserve permit holder to

(a) file reports with the director in accordance with the regulations; and

(b) provide a copy of the permit to any person from whom he or she acquires fuel to which subsection (2) applies.

Definition — "remote northern reserve"

22.1(4)     In this section, "remote northern reserve" means a reserve, as defined in the Indian Act (Canada), that is not accessible by road other than by a winter road.

PART 4

THE INCOME TAX ACT

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

15          The Income Tax Act is amended by this Part.

16          Clause 4.7(1)(b) is amended by striking out "and" at the end of paragraph (i)(E) and adding the following after subclause (i):

(i.1) 0.83% of the total amount included in the individual's income for the year in respect of a taxable dividend for which the federal dividend gross-up rate is 18%, and

17          The definition "qualified care recipient" in subsection 5.11(1) is amended

(a) in the part before clause (a), by striking out "means" and substituting ", in relation to a taxation year, means"; and

(b) by renumbering clause (a) as clause (a.2) and adding the following before clause (a.2):

(a) is resident in Manitoba at the end of the taxation year;

(a.1) is an insured person as defined in The Health Services Insurance Act;

18(1)       The table in subsection 7(3.1) is amended by replacing the last row with the following:

calendar year after 2004 and before 2014 $400,000. $1,096.
calendar year after 2013 $425,000. $1,165.

18(2)       Subsection 7(4.01) is replaced with the following:

Tax rate for guarantee corporation

7(4.0.1)    Despite subsections (1) and (3), the applicable tax rate for a guarantee corporation, as defined in The Credit Unions and Caisses Populaires Act, is as follows:

(a) 5% for the calendar years 2003, 2004 and 2005;

(b) 4.5% for the calendar year 2006;

(c) 3% for the calendar year 2007;

(d) 2% for the calendar year 2008;

(e) 1% for the period after 2008 and before December 1, 2010;

(f) 0% for the period after November 30, 2010.

No small business deduction for guarantee corporation

7(4.0.2)    Despite subsection (2), a guarantee corporation is not entitled to a deduction under that subsection.

19(1)       Clause 7.2(1)(a) is replaced with the following:

(a) the amount by which its investment tax credit at the end of the year exceeds the amount renounced under subsection (7) in respect of the year; and

19(2)       Subsection 7.2(1.1) is replaced with the following:

Refundable credit

7.2(1.1)    A corporation is deemed to have paid on its balance due day for a taxation year on account of its tax payable for that taxation year, an amount equal to the least of the following amounts:

(a) the amount, if any, by which its investment tax credit at the end of the taxation year, determined without reference to any expenditure incurred after the end of the year, exceeds the total of

(i) the tax that would otherwise be payable by it for the year if no amount were deducted in respect of a loss realized, property acquired or expenditure incurred after the end of the year, and

(ii) the amount renounced under subsection (7) in respect of the year;

(b) 70% of the total of the amounts determined for the year under clauses (a) and (c) of the definition "investment tax credit" in subsection (2);

(c) the amount, if any, by which

(i) the total of the amounts determined for the year under clauses (a) and (c) of the definition "investment tax credit" in subsection (2),

exceeds

(ii) the amount renounced under subsection (7) in respect of the year.

19(3)       Clause 7.2(1.1)(b) as replaced by subsection 19(2) is amended by striking out "70%" and substituting "subject to subsection (1.2), 80%".

19(4)       Subsection 7.2(1.2) is replaced with the following:

Transitional

7.2(1.2)    The reference in clause (1.1)(b) to "80%" is to be read as "70%" in respect of property acquired before July 1, 2013.

19(5)       The definition "investment tax credit" in subsection 7.2(2) is amended

(a) by replacing subclauses (b)(i) to (iii) with the following:

(i) the 10 immediately preceding taxation years ending after 2003, or

(ii) the three immediately following taxation years,

(b) by replacing the part after clause (d) with the following:

exceeds the aggregate of

(e) all amounts each of which is an amount previously deducted under subsection (1), or previously credited under subsection (1.1), in respect of an amount included under clauses (a) to (d) in determining the corporation's investment tax credit at the end of the taxation year, and

(f) all amounts each of which is an amount renounced under subsection (7) in respect of an amount included under clause (b) in determining the corporation's investment tax credits at the end of the taxation year;

19(6)       Subsection 7.2(2.1) is repealed.

19(7)       Subsection 7.2(8) is amended

(a) in the section heading, by adding "by filing-due date" after "renunciation"; and

(b) by adding "by the filing-due date for that year" after "taxation year".

19(8)       The following is added after subsection 7.2(8):

Effect of renunciation within following year

7.2(8.1)    A corporation that renounces an amount under subsection (7) in respect of a taxation year within the 365-day period immediately following the filing-due date for that year is deemed for that year, for all purposes except

(a) paragraph 37(1)(d) of the federal Act (scientific research and experimental development); and

(b) subsections 127(18) to (20) of the federal Act (reduction of qualified expenditure);

never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the amount.

20(1)       The definition "eligible expenditure" in subsection 7.3(1) is replaced with the following:

"eligible expenditure" means

(a) an expenditure that was made by a corporation with a permanent establishment in Manitoba in respect of scientific research and experimental development carried out in Manitoba and that would be a qualified expenditure as defined in subsection 127(9) of the federal Act if

(i) paragraph (a) of that definition were to include the following subparagraph:

(iv) an expenditure of a capital nature made by the taxpayer (in respect of property acquired that would be depreciable property of the taxpayer if section 37 were not applicable in respect of the property, other than land or a leasehold interest in land) in the year on scientific research and experimental development carried on in Manitoba, directly undertaken by or on behalf of the taxpayer, and related to a business of the taxpayer, or

(ii) in the case of an expenditure referred to in subclause (2.3)(b)(i) of this section, the reference to "80%" in subparagraph (a)(ii) of that definition were read as "100%", and

(iii) that definition were read without reference to paragraphs (b) and (d), and

(b) the portion of the corporation's prescribed proxy amount referred to in paragraph (b) of the definition "qualified expenditure" in subsection 127(9) of the federal Act that can reasonably be considered to relate to scientific research and experimental development carried out in Manitoba; (« dépense admissible »)

20(2)       The definition "research and development tax credit" in subsection 7.3(1) is amended

(a) by repealing clause (a);

(b) in clause (a.1), by striking out "and after March 8, 2005";

(c) by repealing clause (b);

(d) in clause (d), by striking out "(b) or"; and

(e) by replacing the part after clause (d.1) with the following:

exceeds the aggregate of

(e) all amounts each of which is an amount previously deducted under subsection (2), or previously credited under subsection (2.3), in respect of an amount included under clauses (a.1) to (d.1) in determining the corporation's research and development tax credit at the end of the taxation year, and

(f) all amounts each of which is an amount renounced under subsection (7) in respect of an amount included under clause (b.1) in determining the corporation's investment tax credits at the end of the taxation year.

20(3)       Clause 7.3(2)(a) is replaced with the following:

(a) the amount by which its research and development tax credit at the end of the year exceeds the amount renounced under subsection (7) in respect of the year; and

20(4)       Subsection 7.3(2.1) is repealed.

20(5)       Subsection 7.3(2.2) is amended

(a) in the part before clause (a), by striking out "at any time after March 8, 2005"; and

(b) in clauses (a) and (b), by striking out "made after that date".

20(6)       Subsection 7.3(2.3) is amended

(a) in the part before clause (a), by striking out "lesser of" and substituting "least of the following:";

(b) by replacing clause (a) with the following:

(a) the amount, if any, by which its research and development tax credit at the end of the taxation year, determined without reference to any expenditure incurred after the end of the year, exceeds the total of

(i) the tax that would otherwise be payable by it for the year if no amount were deducted in respect of a loss realized, property acquired or expenditure incurred after the end of the year, and

(ii) the amount renounced under subsection (7) in respect of the year;

(c) by adding the following after clause (b) and before the sentence after clause (b):

(c) the amount, if any, by which

(i) the total of the amounts determined for the year under clauses (a.1) and (c) of the definition "research and development tax" in subsection (1),

exceeds

(ii) the amount renounced under subsection (7) in respect of the year.

20(7)       Subsection 7.3(3) is amended by striking out "clause (a)," and substituting "clause".

20(8)       Subsection 7.3(4) is amended by striking out "clause (a)," and substituting "clause".

20(9)       Subsection 7.3(7.1) is amended

(a) in the section heading, by striking out "before" and substituting "by"; and

(b) by striking out "before the filing-due date" and substituting "by the filing-due date".

21          Section 7.4 is repealed.

22(1)       The definition "government assistance" in subsection 7.5(1) is amended

(a) in clause (b), by striking out "equity investment provided by The Canada Television and Cable Production Fund" and substituting "amount paid or payable to the corporation by The Canada Media Fund"; and

(b) in clause (c), by striking out "Television and Cable Production" and substituting "Media".

22(2)       Clause 7.5(2)(e) is amended by striking out "March 1, 2014" and substituting "January 1, 2017".

23          Subsection 7.6(6) is amended in clause (f) of the description of A in the formula by striking out "March 1, 2014" and substituting "January 1, 2017".

24          The definition "eligible donation" in subsection 7.17(1) is amended in clause (a) by adding "and before 2020" after "April 12, 2011".

25          The centred heading before section 7.19 is amended by striking out "CENTRE INVESTMENT TAX CREDIT" and substituting "INVESTMENT TAX CREDITS".

26(1)       Subsection 7.19(1) is amended by adding "centre" before "corporation".

26(2)       The following is added after subsection 7.19(1):

Refundable data processing equipment investment tax credit

7.19(1.1)   An eligible corporation is deemed to have paid on its balance-due day for a taxation year, on account of its tax payable under this Act for the year, an amount equal to its data processing equipment investment tax credit for the year.

26(3)       The definition "data processing equipment" in subsection 7.19(2) is replaced with the following:

"data processing equipment" of a corporation means equipment

(a) that the corporation acquired by purchase or lease after April 16, 2013 and before 2016;

(b) that is or would be, if it were owned by the corporation, a property included in Class 46 or Class 50 in Schedule II to the federal regulations;

(c) that was not used, or acquired for use or lease, for any purpose before it was acquired by the corporation;

(d) that is not replacement property;

(e) in respect of which no amount is or has been included in computing the corporation's data processing centre investment tax credit for any taxation year; and

(f) that is situated in Manitoba and is used, or will be used, by the corporation exclusively, or nearly exclusively, for the purpose of data processing. (« matériel de traitement de l'information »)

26(4)       Subsection 7.19(2) is further amended by adding the following definitions:

"data processing centre equipment" of a corporation means equipment

(a) that the corporation acquired by purchase or lease after April 17, 2012;

(b) that is or would be, if it were owned by the corporation,

(i) prescribed machinery and equipment as defined in subsection 4600(2) of the federal regulations for the purpose of the definition "qualified property" in subsection 127(9) of the federal Act, or

(ii) a property included in paragraph (o) of Class 12, paragraph (c) of Class 17, or in Class 42 or Class 50 in Schedule II to the federal regulations;

(c) that

(i) was not used, or acquired for use or lease, for any purpose before it was acquired by the corporation, or

(ii) was refurbished when it was acquired by the corporation; and

(d) that is situated in Manitoba and is used, or will be used, by the corporation in connection with the operation or maintenance of a data processing building. (« matériel de traitement de l'information du centre »)

"eligible corporation" means a taxable Canadian corporation with a permanent establishment in Manitoba. (« corporation admissible »)

26(5)       The following is added after subsection 7.19(2):

Replacement property

7.19(2.1)   For the purpose of clause (d) of the definition "data processing equipment" in subsection (2), equipment (referred to in this subsection as "new equipment") is replacement property for other equipment (referred to in this subsection as "former equipment") if

(a) it is reasonable to conclude that the new equipment was acquired to replace the former equipment;

(b) the former equipment

(i) was acquired by purchase or lease by the corporation or a person who is related to the corporation,

(ii) is or would be if it were owned by the corporation a property included in Class 46 or Class 50 in Schedule II to the federal regulations,

(iii) is or was situated in Manitoba, and

(iv) is or was used in Manitoba by the corporation or related person exclusively, or nearly exclusively, for the purpose of data processing; and

(c) the new equipment was acquired by the corporation

(i) for a use that is the same as or similar to the use to which the corporation or related person put the former equipment, and

(ii) for the purpose of gaining or producing income from the same or a similar business as that in which the former equipment was used.

26(6)       Subsection 7.19(3) is amended by adding "centre" after "data processing" in the section heading and the part before clause (a).

26(7)       Subsection 7.19(4) is amended by adding "centre" after "data processing" in the part of clause (a) before subclause (i) and in the part of clause (b) before subclause (i).

26(8)       Subsection 7.19(4) is further amended

(a) in the description of A in the formula, by striking out "7%" and substituting "8%" in the part before clause (a); and

(b) in the description of B in the formula, by striking out "4%" and substituting "4.5%" in the part before clause (a).

26(9)       The following is added after subsection 7.19(4):

Data processing equipment investment tax credit amount

7.19(4.1)    Subject to subsection (4.2), a corporation's data processing equipment investment tax credit for a taxation year is the total of all amounts each of which is, subject to subsection (6), 8% of the amount, if any, by which

(a) the corporation's capital cost of an item of data processing equipment purchased within the year and before 2016, or a later prescribed date; or

(b) the corporation's leasing cost for the year for an item of data processing equipment acquired by lease before 2016, or a later prescribed date;

exceeds

(c) the amount of any government assistance, other than a tax credit under this section, that was received or is receivable by the corporation in respect of that item of equipment and that,

(i) in the case of equipment referred to in clause (a), was not deducted in calculating the corporation's capital cost of the item of equipment, or

(ii) in the case of leased equipment, was not deducted in computing the corporation's data processing equipment investment tax credit for that item of equipment for a previous year.

Minimum investment

7.19(4.2)   A corporation is not entitled to a data processing equipment investment tax credit unless the total of all amounts each of which is a cost referred to in clause (4.1)(a) or (b) is at least $10,000,000.

26(10)      Subsection 7.19(5) is amended by striking out "after April 17, 2012,".

26(11)      Subsection 7.19(6) is amended in the part before clause (a) by adding "or data processing equipment investment tax credit" before "for a taxation year".

26(12)      Clause 7.19(7)(c) is amended by adding "and for the purpose of clauses (4.1)(a) and (b)" after "subsection (4)".

27(1)       Clause 10.2(1)(a) is replaced with the following:

(a) the amount by which the taxpayer's odour-control tax credit at the end of the year exceeds the amount renounced under subsection (9) in respect of the year; and

27(2)        Subsection 10.2(1.1) is replaced with the following:

Credit refundable if it relates to farming

10.2(1.1)   An eligible taxpayer who is carrying on the business of farming is deemed to have paid on his or her balance-due day, on account of his or her tax payable under this Act for a taxation year, the amount, if any, by which the taxpayer's odour-control tax credit at the end of the year exceeds the total of

(a) the tax otherwise payable by the taxpayer under this Act for the year; and

(b) the amount renounced under subsection (9) in respect of the year.

27(3)       The definition "odour-control tax credit" in subsection 10.2(2) is amended by striking out "and" at the end of clause (b), adding "and" at the end of clause (c) and adding the following after clause (c):

(d) the total of all amounts renounced under subsection (9) in respect of an eligible expenditure of the taxpayer for any of the 10 immediately preceding taxation years or the three immediately following taxation years.

27(4)       Subsection 10.2(10) is amended

(a) in the section heading, by adding "by filing-due date" after "renunciation"; and

(b) by adding "by the filing-due date for that year" after "taxation year".

27(5)       The following is added after subsection 10.2(10) and before the centred heading that follows it:

Effect of renunciation within following year

10.2(11)    A corporation that renounces an amount under subsection (9) in respect of a taxation year within the 365-day period immediately following the filing-due date for that year is deemed for that year, for all purposes except

(a) paragraph 37(1)(d) of the federal Act (scientific research and experimental development); and

(b) subsections 127(18) to (20) of the federal Act (reduction of qualified expenditure);

never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the amount.

28(1)       Subsection 10.5(1) is replaced with the following:

Interactive digital media tax credit

10.5(1)      Subject to subsections (2) to (2.3), a qualifying corporation is deemed to have paid on its balance-due day for a taxation year, on account of its tax payable under this Act for that year, such amount as is claimed by the corporation, but not exceeding the total of all amounts each of which is the lesser of

(a) 40% of the corporation's eligible project costs in relation to an eligible project for the year; and

(b) the amount by which $500,000 exceeds the total of all amounts each of which is an amount claimed by the corporation as a tax credit under this subsection in relation to the eligible project for a previous taxation year.

Eligible project costs for the year

10.5(1.1)   A corporation's eligible project costs in relation to an eligible project for a taxation year is the total of

(a) the corporation's eligible labour costs in relation to the eligible project for the year; and

(b) the lesser of

(i) the corporation's eligible marketing and distribution costs in relation to the eligible project for the year, and

(ii) the amount by which $100,000 exceeds the total of all amounts each of which is the corporation's eligible marketing and distribution costs in relation to the eligible project for a previous taxation year in which an amount was claimed under subsection (1).

Eligible labour costs for the year

10.5(1.2)   A corporation's eligible labour costs in relation to the eligible project for a taxation year is the amount, if any, by which

(a) the total of the corporation's labour expenses in relation to the eligible project as at the end of the year;

exceeds the aggregate of

(b) the total of all government assistance in respect of the corporation's labour expenses in relation to the eligible project; and

(c) the total of all amounts each of which is the amount of the corporation's eligible labour costs in relation to the eligible project for a previous taxation year in which an amount was claimed under subsection (1).

Eligible marketing and distribution costs for the year

10.5(1.3)   A corporation's eligible marketing and distribution costs in relation to the eligible project for a taxation year is the amount, if any, by which the aggregate of

(a) 50% of the total of the corporation's marketing and distribution expenses for meals or entertainment in relation to the eligible project as at the end of the year; and

(b) the total of all other marketing and distribution expenses of the corporation in relation to the eligible project as at the end of the year;

exceeds the aggregate of

(c) the total of all government assistance in respect of the corporation's marketing and distribution expenses in relation to the eligible project; and

(d) the total of all amounts each of which is the amount of the corporation's eligible marketing and distribution costs in relation to the eligible project for a previous taxation year in which an amount was claimed under subsection (1).

Transitional — eligible marketing and distribution costs

10.5(1.4)   No amount may be claimed as eligible marketing and distribution costs in relation to a project with a commencement date before 2013.

28(2)       The following is added after subsection 10.5(2.2):

Limitation on credit due to government contribution

10.5(2.3)   Despite subsection (1), the total of a corporation's credits under that subsection in relation to an eligible project, including credits claimed in relation to the project for previous taxation years, must not exceed the amount by which

(a) the corporation's total cost of the project;

exceeds

(b) the total of all assistance which the corporation receives or is entitled to receive from a government, municipality or other public authority in respect of the eligible project — other than a tax credit under this section — that is not repaid by the corporation before the day that is three years after the project's completion date.

28(3)       Subsection 10.5(4) is amended

(a) in the definition "commencement date", by striking out "eligible labour costs" and substituting "labour expenses";

(b) by repealing the definition "eligible labour costs";

(c) in the definition "eligible project", by adding "who does not deal with the corporation at arm's length" after "purchaser" where it first occurs in clause (b); and

(d) by adding the following definitions:

"eligible product", in relation to an eligible project, means the interactive digital media product to be developed in the course of the eligible project. (« produit admissible »)

"government assistance" means assistance that the corporation receives or is entitled to receive from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance, other than

(a) assistance — including an amount paid or payable to the corporation by The Canada Media Fund — that is recoupable or repaid; and

(b) the tax credit under this section or section 10.1 (co-op education and apprenticeship tax credit), received or receivable by the corporation. (« aide gouvernementale »)

"labour expense" of a corporation in relation to an eligible project means any of the following amounts, to the extent that the amount is reasonable in the circumstances, directly attributable to the project and incurred and paid before 2017 and within the project period:

(a) an amount on account of salaries and wages paid by the corporation to its employees who are Manitoba residents for the project period;

(b) 65% of the fee paid by the corporation to

(i) an individual who is a Manitoba resident for the project period and is not an employee of the corporation for services performed by the individual or by one or more employees of the individual who are Manitoba residents for the project period,

(ii) a taxable Canadian corporation with a permanent establishment in Manitoba for services performed on its behalf by one or more employees who are Manitoba residents for the project period, or

(iii) a partnership carrying on business in Canada for services performed on its behalf by one or more individuals who are employees or members of the partnership and are Manitoba residents for the project period;

(c) 20% of an amount that would be included under clause (a) or (b) in respect of services performed in Manitoba for the project by an individual who is not a Manitoba resident for the project period if

(i) the individual were a Manitoba resident for the project period, and

(ii) no amount were included in respect of the benefits or allowances that are included (or would be included if the individual were an employee resident in Canada) in the income of the individual under section 6 of the federal Act. (« frais de main-d'œuvre »)

"marketing and distribution expense" of a corporation in relation to an eligible project means an expense that

(a) is reasonable in the circumstances and directly attributable to advertising or promoting the eligible product or distributing the eligible product to customers or potential customers;

(b) is incurred and paid by the corporation

(i) during the project period or within 12 months after the day on which the project period ends, and

(ii) after 2012 and before 2017;

(c) does not relate directly to processing an order by, or shipping an eligible product to, a consumer who purchased the eligible product directly from the corporation;

(d) does not relate to an eligible product that is developed

(i) under the terms of an agreement between the corporation and a purchaser that deals at arm's length with the corporation, and

(ii) for the purpose of sale or license by the purchaser to one or more persons any of whom deals at arm's length with the purchaser;

(e) is not an amount referred to in clause (5)(a) or subclause (5)(b)(ii) or (iii); and

(f) is not included in computing

(i) the corporation's eligible labour costs in relation to the eligible project,

(ii) the corporation's eligible project costs in relation to any other project, or

(iii) the eligible project costs of any other corporation. (« frais de commercialisation et de distribution »)

28(4)       Subsection 10.5(5) is amended in the section heading and the part before clause (a) by striking out "eligible labour costs" and substituting "labour expense".

28(5)       Clause 10.5(7)(e) is amended by adding "and eligible marketing and distribution costs" after "eligible labour costs".

28(6)       Subsection 10.5(9) is amended

(a) in clause (d), by striking out "eligible labour costs" and substituting "labour expenses and marketing and distribution expenses";

(b) in subclause (e)(iii), by striking out "eligible labour costs qualify as eligible labour costs;" and substituting "labour expenses qualify as labour expenses, and"; and

(c) by striking out "and" at the end of subclause (e)(ii) and adding the following after subclause (e)(iii):

(iv) that the amounts claimed as marketing and distribution expenses qualify as marketing and distribution expenses;

28(7)        Clause 10.5(13)(b) is amended by striking out everything after "remuneration" and substituting "expenses to be excluded from the definitions "labour expenses" and "marketing and distribution expense" in subsection (4).".

29          The following is added after section 10.5:

RENTAL HOUSING CONSTRUCTION TAX CREDIT

Definitions

10.6(1)     The following definitions apply in this section.

"affordable residential unit" means a residential unit for which the total of the amounts paid as rent and for utilities does not exceed the amount in respect of the applicable type of unit that the minister establishes for a calendar year and publishes on or before September 1 of the immediately preceding year. (« unité résidentielle à prix abordable »)

"eligible rental housing project" means a rental housing project certified by the minister to be an eligible rental housing project for the taxation year. (« projet admissible de logements locatifs »)

"minister" means the Minister of Housing and Community Development or a person designated by him or her to perform certain duties assigned to the minister under this section or the regulations. (« ministre »)

"qualifying corporation" means a taxable Canadian corporation that has a permanent establishment in Manitoba and is not a qualifying entity. (« corporation admissible »)

"qualifying entity" means

(a) a housing corporation described in paragraph 149(1)(i) of the federal Act;

(b) a non-profit organization described in paragraph 149(1)(l) of the federal Act;

(c) a limited dividend housing company described in paragraph 149(1)(n) of the federal Act; or

(d) a not for profit housing cooperative as described in subsection 275(2) of The Cooperatives Act. (« entité admissible »)

"rental housing project" means a building, group of buildings or portion of a building that

(a) is in Manitoba;

(b) is constructed, or converted from a non-residential use, by or for the taxpayer in accordance with a building permit obtained after April 16, 2013;

(c) becomes available for use before 2017;

(d) is Class 1 property of the taxpayer for the purpose of Schedule II to the federal regulations;

(e) is situated on land owned or leased by the taxpayer;

(f) contains at least five residential units; and

(g) is not a hotel, hostel or prescribed ineligible facility. (« projet de logements locatifs »)

"residential unit" means a residential dwelling unit that has its own keyed entry door, contains a bathroom and a kitchen or kitchenette and is usually rented or leased for a period of not less than one month. (« unité résidentielle »)

Rental housing construction tax credit — qualifying entity

10.6(2)     A qualifying entity is deemed to have paid on its filing-due day for a taxation year, on account of its tax payable under this Act for the year, the total of all amounts each of which is the lesser of

(a) 8% of the entity's capital cost of an eligible rental housing project that became available for use during the year determined

(i) without any tax credit under this section being treated as government assistance, and

(ii) without including any amount that is included in computing a tax credit claimed under any other section of this Act; and

(b) $12,000 multiplied by the number of residential units in the rental housing project.

Rental housing construction tax credit — qualifying corporation

10.6(3)     A qualifying corporation may deduct from its tax otherwise payable under this Act for a taxation year an amount not exceeding the total of all amounts each of which is the lesser of

(a) 1.6% of the corporation's capital cost of a rental housing project that is an eligible rental housing project for the year determined

(i) without any tax credit under this section being treated as government assistance, and

(ii) without including any amount that is included in computing a tax credit claimed under any other section of this Act; and

(b) $2,400 multiplied by the number of residential units in the rental housing project.

Carry-over of unused credit

10.6(4)     A taxable Canadian corporation may deduct from its tax otherwise payable for a taxation year the amount, if any, by which

(a) the total of all amounts each of which is its tax credit determined under subsection (3) for any of the immediately preceding 10 taxation years;

exceeds

(b) the total of all amounts each of which is an amount deducted by the corporation under subsection (3) or this subsection in respect of the tax credits described in clause (a).

Certification by minister

10.6(5)     The minister shall certify a rental housing project as an eligible rental housing project for a taxation year ending not later than five years after the rental housing project became available for use if the minister is satisfied that

(a) at least 10% of the residential units in the rental housing project are designated as and rented or available for rent as affordable residential units;

(b) the taxpayer has undertaken to make at least 10% of the residential units in the rental housing project available for rent as affordable units for at least five years after the rental housing project became available for use; and

(c) in a taxation year that began after the rental housing project became available for use, at least 10% of the residential units in the rental housing project were available throughout the year as affordable residential units.

Waiver of affordable unit requirement

10.6(6)     Despite clause (5)(c), the minister may waive that requirement if the minister is satisfied that it was not met as a result of circumstances beyond the control of the taxpayer.

Annual filing

10.6(7)     A qualifying entity or a corporation that claims an amount under subsection (2) or (3) in respect of an eligible rental housing project must — on or before the filing-due date for the taxation year in which the project becomes available for use and on or before the filing-due date for each of the next five taxation years — file with the minister a form containing the information stipulated by the form.

Amalgamation

10.6(8)     For the purpose of determining the amount that a corporation formed by an amalgamation to which subsection 87(1) of the federal Act applies may deduct under subsection (3) or (4), the corporation is deemed to be the same corporation as, and a continuation of, each of its predecessor corporations.

Winding-up

10.6(9)     For the purpose of determining the amount that a corporation may deduct under subsection (3) or (4) for a taxation year ending after a winding-up of its subsidiary to which subsection 88(1) of the federal Act applies, the corporation is deemed to be the same corporation as, and a continuation of, the subsidiary.

Regulations

10.6(10)    The Lieutenant Governor in Council may make regulations

(a) defining any term used in this section but not defined in this Act;

(b) prescribing ineligible facilities for the purpose of the definition "rental housing project" in subsection (1);

(c) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out the purpose of this section.

30          Subclauses 11.13(3)(a)(i) and (ii) are amended by striking out "2014" and substituting "2017".

31          Subsection 28.1(1) is amended by adding ", (2.01)" after "(1.5)".

PART 5

THE PROPERTY TAX AND INSULATION ASSISTANCE ACT

C.C.S.M. c. P143 amended

32          The Property Tax and Insulation Assistance Act is amended by this Part.

33(1)       The definition "taxpayer" in subsection 16.1(1) is amended

(a) in the part of clause (a) before subclause (i), by striking out "person" and substituting "Manitoba resident"; and

(b) in clause (d), by striking out "person" where it first occurs and substituting "Manitoba resident".

33(2)       Subsection 16.1(1) is further amended by adding the following definitions:

"administrator" means the minister or a person to whom administration of this Part has been delegated under section 16.7. (« responsable de l'application »)

"Manitoba resident" means

(a) an individual who is resident in Manitoba for the purpose of The Income Tax Act for the taxation year or for the previous year;

(b) a private Canadian corporation at least 50% of the voting shares of which are directly or indirectly owned by one or more individuals described in clause (a);

(c) a cooperative, within the meaning of The Cooperatives Act, at least 50% of the member shares of which are owned by one or more individuals described in clause (a); or

(d) any other person specified by regulation. (« résident du Manitoba »)

"private Canadian corporation" means a corporation incorporated under the laws of Canada or a province or territory of Canada, the shares of which are not listed on any stock exchange. (« corporation privée canadienne »)

34          Subsection 16.1(2) is amended by striking out "minister" and substituting "administrator".

35(1)       Subsection 16.2(1) is amended in the part before clause (a)

(a) by striking out "after 2004"; and

(b) by adding "subsection (1.1) and" before "section 16.6 and the regulations".

35(2)       The following is added after subsection 16.2(1):

$5,000 maximum for total of all rebates

16.2(1.1)   The total of all rebates received or assigned under this Part for a taxation year after 2012 by a taxpayer and every person to whom the taxpayer is related must not exceed $5,000.

35(3)       The following is added after subsection 16.2(3):

Meaning of "related person"

16.2(4)     For the purpose of subsection (1.1) , a taxpayer is related to a person if the taxpayer and the person are "related persons", or persons related to each other, as defined in subsection 251(2) of the Income Tax Act (Canada), unless deemed by regulation not to be.

36(1)       In the following provisions, "minister" is struck out and "administrator" is substituted:

(a) subsection 16.4(1);

(b) subsection 16.4(2) in the sentence after clause (f).

36(2)       Subsection 16.4(3) is amended by striking out "minister before the end of the third year following that year" and substituting "administrator before April 1 of the year following that taxation year".

36(3)       The following is added after subsection 16.4(3):

Transitional

16.4(4)     Despite subsection (3), an application for a rebate for the 2011 or 2012 taxation year may be filed any time before April 1, 2014.

37          Section 16.5 is replaced with the following:

Claims for rebate by two or more taxpayers

16.5        The following rules apply if two or more taxpayers apply for a rebate under section 16.2 in respect of the same farmland for the same taxation year:

1.  The total of the rebates paid in respect of the farmland must not exceed the applicable percentage of the school tax paid on that land for that year.

2.  A taxpayer is not entitled to a rebate in excess of the amount determined in respect of that taxpayer under subsections 16.2(1) and (1.1).

3.  Subject to rules 1 and 2, before a rebate is paid the taxpayers may agree on how the amount to be rebated is to be divided between them.

4.  If the total amount claimed by the taxpayers is greater than the applicable percentage of the school tax paid on that land for that year,

(a) the administrator may refuse to provide a rebate to any of them until they agree on how the rebate amount is to be divided between them; and

(b) if the administrator has provided a rebate to a taxpayer before being made aware of any other taxpayer's claim in respect of the same farmland, the administrator

(i) may provide or refuse to provide a rebate to the other taxpayer, and

(ii) may, after paying an amount as a rebate to the other taxpayer, recover all or any part of that amount from the first taxpayer.

38           Section 16.8 is amended by adding the following after clause (c):

(c.1) prescribing circumstances in which persons are deemed not to be related for the purpose of subsection 16.2(1.1);

(c.2) specifying persons, or classes of persons, for the purpose of the definition "Manitoba resident";

39          Subsection 16.10(1) is amended by striking out "by the minister" and substituting "by the administrator".

PART 6

THE RETAIL SALES TAX ACT

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

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

41(1)       Clause 2(1.2)(b) is replaced with the following:

(b) heating or cooling a building at least 80% of which is used for the purposes referred to in clauses (a) and (b) of the definition "farm building" in subsection 1(1); or

41(2)       Subsection 2(5.3) is replaced with the following:

Property brought into Manitoba for temporary use

2(5.3)      A person who brings tangible personal property — other than a multijurisdictional vehicle, railway rolling stock to which subsection (5.4) applies or an aircraft — into Manitoba for temporary use in Manitoba may pay tax under subsection (5.3.1) in respect of its use in Manitoba if

(a) the person

(i) owned the property for more than 30 days before it was brought into Manitoba, or

(ii) acquired the property by lease or rent; and

(b) the person satisfies the minister that the property is expected to be used in Manitoba for a period of not more than 36 months.

41(3)       Clause 2(5.3.1)(b) is replaced with the following:

(b) must pay, for each calendar month in which the property is used by the person in Manitoba, a tax equal to the following amount multiplied by the general sales tax rate:

(i) if the property is owned by the person, either

(A) 1/36th of the untaxed amount, or

(B) 1/1095th of the untaxed amount multiplied by the number of days on which the property is used during the month, or

(ii) if the property is leased to or rented by the person, either

(A) the amount of the monthly lease or rental payments or, if they are not payable monthly, the monthly equivalent of those payments, or

(B) the amount of the daily lease or rental payments or, if they are not payable daily, the daily equivalent of those payments, multiplied by the number of days on which the property is used during the month; and

41(4)       Clause 2(5.3.1)(c) is repealed.

41(5)       Subsection 2(5.3.2) is amended in the descriptions of Tm and I2 in the formula by striking out "monthly tax payments made under clause (5.3.1)(c)" and substituting "tax payments made under clause (5.3.1)(b)".

42(1)       Subsection 2.2(2) is amended by adding ", trailer" after "motor vehicle".

42(2)       Subsection 2.2(3) is replaced with the following:

Tax payable to MPI or agent at time of registration

2.2(3)      The tax payable in respect of the purchase or other acquisition of the motor vehicle, trailer or off-road vehicle is payable to MPI or to the MPI agent when the vehicle or trailer is registered.

42(3)        Subsection 2.2(5) of the English version is amended in the part before clause (a) by striking out "(tax on fair value)".

42(4)       In the following provisions, ", trailer" is added after "motor vehicle":

(a) in the part before clause (a) in subsections 2.2(6) and (7);

(b) subsection 2.2(8).

42(5)       The following is added after subsection 2.2(10):

Calculation of tax reduction if purchase before or after infrastructure funding period

2.2(11)     The reference to "the general sales tax rate" in clause (9)(c) shall be read as "7%" if the tax on the purchased vehicle became payable before or after the infrastructure funding period.

43(1)       The following is added before clause 3(1)(c):

(b.1) protective helmets for cycling that meet the standards prescribed under The Highway Traffic Act;

43(2)       Clause 3(1)(c) is amended by striking out everything after "not including" and substituting "any item of clothes or footwear where the sale price of the item is more than $150;".

43(3)       The following is added after clause 3(1)(c.1):

(c.2) the following items for use with children under 24 months of age:

(i) items designed for nursing,

(ii) items designed for feeding, bathing and grooming,

(iii) pacifiers, soothers and teething rings,

(iv) strollers, carriers and related accessories,

(v) furniture and related accessories designed to be used exclusively by children under 24 months of age, but not including toys, mobiles and mirrors,

(vi) thermometers and related accessories;

(c.3) breast pumps and accessories;

(c.4) items designed for toilet training children, including diapers used by children, and items designed for changing children's diapers, but not including diaper bags, pails or pail liners;

(c.5) child safety items, including restraint systems used in vehicles;

43(4)       Clause 3(1)(m) is amended by striking out "purchased and used exclusively, or nearly exclusively," and substituting "at least 80% of the product is purchased and used".

43(5)       Clause 3(1)(o.1) is replaced with the following:

(o.1) a granary purchased by a farmer if 80% of the floor area is designed and used for the storage of grain;

43(6)       Clause 3(1)(zz) is replaced with the following:

(zz) the following items when purchased directly by a municipality or local government district for its own use:

(i) sand,

(ii) gravel,

(iii) a mixture of sand and salt containing at least 80% sand,

(iv) recycled asphalt,

(v) shredded tires;

43(7)       Clause 3(1)(bbb) is repealed.

43(8)       Subsection 3(2.1) is amended by striking out "subclause (1)(c)(ii)" and substituting "clause (1)(c)".

43(9)       Subsection 3(18) is amended by striking out everything after "if" and replacing it with the following:

(c) the seller remains closely related to the purchaser throughout the first six months after the sale;

(d) the seller and purchaser did not become closely related in contemplation of the sale;

(e) during the six-month period referred to in clause (c), neither the seller nor the purchaser begins a winding-up and dissolution; and

(f) the seller has paid tax under this Act in respect of a previous purchase of the property.

43(10)      Clause 3(18.4)(a) is amended by striking out "and" at the end of subclause (i) and adding the following after subclause (i):

(i.1) the winding-up and dissolution of the corporation did not begin before, or within six months after, the shareholder acquired shares of the corporation, and

43(11)      Clause 3(18.5)(a) is amended by striking out "and" at the end of subclause (i) and adding the following after subclause (i):

(i.1) the winding-up and dissolution of the partnership did not begin before, or within six months after, the member acquired an interest in the partnership, and

44          Clause 4(8)(a) is amended

(a) by striking out "clause 3(1)(f)" and substituting "clause (3)(c.2), (c.3), (c.4), (c.5), (f)"; and

(b) by striking out ", (bbb)".

45(1)       Subsection 4.1(4) is replaced with the following:

Time for payment of tax — definite term contract not exceeding one year

4.1(4)      The tax in respect of an insurance contract for a definite term that does not exceed one year, other than a group insurance contract, is payable on the total of all premiums payable in respect of the contract. The tax is due on the day that coverage under the contract or renewal begins.

Time for payment of tax — definite term contract exceeding one year

4.1(4.1)    The tax in respect of an insurance contract for a definite term that exceeds one year, other than a group insurance contract, is payable annually on the total of all premiums payable in respect of coverage for the 12 months beginning on the day on which the tax is due. The tax is due on the day that coverage under the contract or renewal begins and on each anniversary of that day during the term.

45(2)       Clause 4.1(7)(b) is amended by striking out "used exclusively or nearly exclusively" and substituting ", if at least 80% of the use of the property is".

45(3)       Clause 4.1(7)(d) is amended by striking out everything after "insurance contract" and substituting "covering only a vehicle rented in Manitoba and other risks related to the vehicle rental;".

45(4)       Clause 4.1(7)(f) is amended by striking out everything after "therapy services," and substituting "and long term care;".

45(5)       The following is added after subsection 4.1(7):

Liability insurance for goods in possession for commercial purposes not exempt

4.1(7.1)    Despite clauses (7)(d), (i) and (j), tax is payable under this section for insurance in respect of the property and liability of a person who takes possession of one or more vehicles, boats or aircraft for display, sale, storage, repair, maintenance, cleaning or parking, or for another similar commercial purpose, including insurance in respect of the person's liability for damage to property owned by others.

46(1)       Clauses 9(2.3)(a) and (b) are amended by striking out "fair value".

46(2)       The following is added after subsection 9(2.8):

Exception for bulk sales

9(2.9)      Despite subsection (2), tax is not required to be collected and remitted by the seller in respect of a sale in bulk as defined in subsection 45(1) of The Tax Administration and Miscellaneous Taxes Act.

47          Subsection 22.1(1) is amended

(a) in the definition "clothes", by striking out ", but does not include disposable diapers that are designed for babies or young children";

(b) in the definition "tangible personal property", by adding "baby supplies," before "books"; and

(c) by adding the following definition:

"baby supplies" means the items described in clauses 3(1)(c.2) to (c.5); (« produit pour bébés »)

48(1)        Subsection 26(4) is amended

(a) in the part before clause (a), by adding "or trailer" after "motor vehicle" wherever it occurs; and

(b) in clauses (a) and (b), by striking out "motor".

48(2)       The following is added after subsection 26(4):

No refund if tax reduced

26(4.1)     A person is not entitled to a refund under subsection (4) if the tax payable in respect of the purchased vehicle was reduced under subsection 2.2(9).

48(3)       The following is added after subsection 26(10):

Calculation of refund if purchase before or after infrastructure funding period

26(10.1)    The reference to "the general sales tax rate" in clauses (4)(b), (8)(b) and (9)(b) shall be read as "7%" if the tax on the vehicle or aircraft purchased became payable before or after the infrastructure funding period.

48(4)       Subsection 26(12) is replaced with the following:

Refund for farm storage buildings

26(12)      The minister may refund a portion of the tax paid by a farmer in respect of the purchase of a farm storage building or structure, or the materials used to construct a farm storage building or structure, if at least 80% of the floor area of the building or structure is designed and equipped for the storage of crops grown for sale and at least 80% of the use of that part of the building or structure is for that purpose. The portion of the tax that may be refunded is calculated in accordance with the following formula:

C/T

In this formula,

C   is the floor area designed, equipped and used for storing crops;

T   is the total floor area of the building or structure.

48(5)       Clause 26(15)(a) is amended by adding "within 30 days" before "after registering".

49          Section 26.1 is repealed.

PART 7

THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT

C.C.S.M. c. T2 amended

50          The Tax Administration and Miscellaneous Taxes Act is amended by this Part.

51          Section 4.1 is amended by replacing everything after "applies to" with the following:

(c) a tax officer who purchases, obtains or is in possession of the thing in connection with the administration or enforcement of a tax Act;

(d) a peace officer who purchases, obtains or is in possession of the thing in connection with the performance of his or her duties;

(e) a member of the technical or scientific staff of a department of the Government of Canada or Manitoba who is in possession of the thing for the purposes of, and in connection with, his or her employment; or

(f) a person acting as an agent for a person described in clause (c), (d) or (e).

52          Subsection 6(2) is amended in the part before clause (a) by striking out "province, territory, country or state" and substituting "country or by another provincial, territorial, municipal or state government".

53          The following is added after subsection 65(3):

Lien remains in effect

65(3.1)     The lien remains in effect until the director discharges it.

54          Subsection 111(1) is amended by adding the following definition:

"transaction" includes an arrangement or event; (« opération »)

55          Subsection 112(1) is amended by striking out "113 and" and substituting "112.1 to".

56          The following is added after section 112:

Refund on rescission

112.1(1)    If a court of competent jurisdiction issues an order rescinding an agreement under which a transfer has been registered and requiring the transfer of the land back to the transferor

(a) the tax paid in respect of the initial transfer is refundable by the minister; and

(b) no tax is payable in respect of the transfer of the land back to the transferor.

Refund on Registrar-General's order

112.1(2)    If the Registrar-General issues an order under section 169.2 of The Real Property Act that cancels a transfer, the tax paid in respect of the transfer is refundable by the minister.

Conditions of agreement not met

112.1(3)    If the parties to an agreement under which a transfer has been registered declare in writing that the land must be transferred back to the transferor because the conditions of the agreement cannot be met, the minister may

(a) refund the tax paid in respect of the initial transfer; and

(b) waive the tax payable in respect of the transfer of the land back to the transferor.

Refund of land transfer tax if RST also paid

112.2       A purchaser of land who pays a tax under The Retail Sales Tax Act on a building or improvement situated on the land is entitled to a refund of the amount, if any, by which

(a) the tax paid under this Part on the transfer of the land to the purchaser;

exceeds

(b) the tax that would have been payable under this Part on the transfer if, for the purpose of the formula in subsection 112(1), FMV were the amount by which the fair market value of the land as a whole exceeds the fair value of the building or improvement on which tax under The Retail Sales Tax Act was paid.

Application for refund or waiver

112.3(1)    To claim a refund or a waiver under this Part, a person must file an application with the minister in a form approved by the minister.

Notice

112.3(2)    The minister must notify the applicant by mail of the minister's decision respecting the application and must include, if applicable, a notice of assessment.

Appeal

112.3(3)    An applicant who disagrees with the decision of the minister may, within 30 days of the date the decision is made or such further period as the court may allow, appeal the decision to the Court of Queen's Bench.

57          The following is added after clause 114(1)(b):

(b.1) an instrument that creates, but does not assign or transfer, a statutory easement under section 111.1 or 111.2 of The Real Property Act;

58(1)       Subsection 117(1) is replaced with the following:

Assessment

117(1)      The minister may, on information available to him or her,

(a) determine the fair market value of the land as a whole with respect to which a transfer is tendered for registration and the correct amount of tax payable;

(b) determine whether tax is payable in respect of a transaction and, if so, the correct amount of tax payable; and

(c) if he or she is satisfied that section 119.1 (general anti-avoidance rule) applies to a transaction or series of transactions, determine the correct amount of tax payable in respect of the transaction or series of transactions in accordance with that section.

58(2)       Subsection 117(3) is amended by striking out "of the fair market value".

59          The following is added after section 119:

Definitions

119.1(1)    The following definitions apply in this section.

"avoidance transaction" means a transaction

(a) that, but for this section, would result, directly or indirectly, in a tax benefit; or

(b) that is part of a series of transactions that, but for this section, would result, directly or indirectly, in a tax benefit;

but does not include a transaction that may reasonably be considered

(c) to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit; or

(d) not to result directly or indirectly in a misuse of the provisions of this Part or an abuse having regard to the provisions of this Part read as a whole. (« opération d'évitement »)

"tax benefit" means a reduction, avoidance or deferral of tax or an increase in a refund of tax. (« avantage fiscal »)

General anti-avoidance rule

119.1(2)    The minister may, by assessment under section 117, determine or redetermine the tax consequences of an avoidance transaction, or of a series of transactions that includes an avoidance transaction, as is reasonable in the circumstances in order to deny a tax benefit that, but for this section, would result, directly or indirectly, from that transaction or from a series of transactions that includes that transaction.

Request for adjustments

119.1(3)    Within 180 days after an assessment in respect of a transaction or series of transactions is mailed to a person, any other person involved in the same transaction or series may, by written notice to the minister, request the minister to adjust, under subsection (2), tax consequences to the person of that transaction or series.

Minister's response

119.1(4)    On receipt of the request, the minister must consider the request and determine the tax consequences under subsection (2) to the person who made the request.

Determining tax consequences

119.1(5)     Without limiting the generality of subsection (2), in determining or redetermining the tax consequences to a person of a transaction or series of transactions under that subsection, the minister may do one or more of the following:

(a) determine or redetermine the fair market value of land as a whole;

(b) allow or disallow an exemption in relation to a transfer;

(c) recharacterize the nature of a transaction or series of transactions;

(d) ignore the tax effects that would otherwise result under this Part.

Advance ruling

119.2(1)    The minister may, upon written application, make an advance ruling regarding the application of section 119.1 in respect of a proposed transaction or series of transactions.

Fees re advance ruling

119.2(2)    A person who applies for an advance ruling regarding the application of section 119.1 must pay the following fees to the Minister of Finance:

(a) at the time of applying for the ruling, a minimum non-refundable fee of $300;

(b) upon receiving the ruling or withdrawing the application for it, an additional fee of $60 per hour for time in excess of five hours spent in considering the application and, where applicable, preparing the ruling.

PART 8

THE TOBACCO TAX ACT

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

60          The Tobacco Tax Act is amended by this Part.

61          Subsection 2(1) is amended

(a) in clause (a), by striking out "25¢" and substituting "29¢";

(b) in clause (c), by striking out "22.5¢" and substituting "26.5¢"; and

(c) in clause (d), by striking out "24¢" and substituting "28¢".

62          Section 4.1 is amended by striking out "cigarettes or fine cut" in the section heading.

PART 9

MISCELLANEOUS PROVISIONS

ANNUAL ALLOWANCE FOR REGISTERED PARTIES REGULATION

Annual Allowance for Registered Parties Regulation amended

63(1)       The Annual Allowance for Registered Parties Regulation made under The Election Financing Act is amended by this section.

63(2)       Subsection 4(1) is amended in the part before clause (a) by adding "section 4.1 (maximum allowance) and" after "Subject to".

63(3)       The following is added after section 4:

Maximum annual allowance

4.1(1)      The annual allowance payable to a registered political party must not exceed the greater of

(a) $100,000; and

(b) the amount that is 30% less than the amount determined under subsection 4(1).

4.1(2)      If the annual allowance received by a registered political party for 2012 is greater than the amount determined under subsection (1), the party's financial officer must ensure that the excess is promptly repaid to the Minister of Finance.

THE EMISSIONS TAX ON COAL ACT

C.C.S.M. c. E90 amended

64          Subsection 3(1) of The Emissions Tax on Coal Act is amended in the part before clause (a) by striking out "March 1" and substituting "March 20".

THE FINANCIAL ADMINISTRATION ACT

C.C.S.M. c. F55 amended

65          The following is added after section 17 of The Financial Administration Act:

Collection and retention of service fees

17.1(1)     The Minister of Finance may, with the approval of the Lieutenant Governor in Council, authorize a person who is providing a service on behalf of the government

(a) to collect on behalf of the government the fee or charge payable by a user of the service; and

(b) despite section 15, to retain all or a portion of the fee or charge as compensation for providing the service on behalf of the government.

Reporting of amounts

17.1(2)     The amounts retained under clause (1)(b) are not public money but they must be reported in the public accounts.

THE HOUSING AND RENEWAL CORPORATION ACT

C.C.S.M. c. H160 amended

66          Clause 8.1(5)(a) of The Housing and Renewal Corporation Act is amended by striking out "of existing housing but not including a project under Part II or III" and substituting ", repair and maintenance of existing housing".

MEMBERS' SALARIES REGULATION

Members' Salaries Regulation amended

67(1)       The Members' Salaries Regulation made under The Legislative Assembly Act is amended by this section.

67(2)       Clause 1(2)(b) is amended by striking out "subsection (2.1)" and substituting "subsections (2.1) and (2.2)".

67(3)       Subsection 1(2.2) is amended by striking out "For the pay periods" and substituting "Despite subsection (2.1), for the pay periods".

67(4)       Subsection 1(2.3) is amended by striking out "before April 1, 2014" and substituting "within the economic recovery period, as defined in section 16.2 of that Act".

THE PARI-MUTUEL LEVY ACT

C.C.S.M. c. P12 amended

68(1)        The Pari-Mutuel Levy Act is amended by this section.

68(2)       Clauses 8(a) and (b) are amended by striking out "or such other percentage of the bet as may be prescribed by regulation".

68(3)       Section 12 is amended by renumbering it as subsection 12(1) and adding the following:

Deduction — general purposes

12(2)       In addition to any amount that may be deducted under subsection (1), the commission must deduct from the levies remitted to it by an operator an amount equal to 15% of those levies, or such lesser amount as may be determined in accordance with the regulations, and pay the amount deducted to the Minister of Finance.

Amounts received to be paid into the Consolidated fund

12(3)       The Minister of Finance must pay the amounts received under subsection (2) into the Consolidated Fund.

Public money

12(4)       Despite section 34, the amounts paid or payable to the Minister of Finance under subsection (2) are public moneys within the meaning of The Financial Administration Act.

68(4)       Subsection 13(2) is amended by striking out "deduction" and substituting "deductions".

68(5)       Section 36 is amended

(a) by repealing clause (a);

(b) in clause (d), by striking out "section 12" and substituting "subsection 12(1)"; and

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

(d.1) for the purpose of subsection 12(2), prescribing the manner for determining the amount to be deducted, which must not exceed 15% of the remitted levies;

(d.2) prescribing the time or times when amounts under subsection 12(2) are to be paid;

VIDEO LOTTERY GAMING REVENUES

Definitions

69(1)       The following definitions apply in this section.

"agreement" means the agreement entered into by Lotteries and Manitoba Jockey Club Inc., made as of the 30th day of April 2011 to be effective as of the 1st day of January 2011. (« accord »)

"Lotteries" means The Manitoba Lotteries Corporation continued under The Manitoba Lotteries Corporation Act. (« société des loteries »)

"video lottery gaming" means the lottery scheme conducted and managed by Lotteries for the government under The Manitoba Lotteries Corporation Act that involves the placement of video lottery terminals at sites throughout the province, including a site in the premises of Manitoba Jockey Club Inc. known as Assiniboia Downs. (« jeux de loterie vidéo »)

Purpose

69(2)       The purpose of this section is to redirect video lottery gaming revenues that are being used to support the horse racing industry and make those revenues available for payment into the Consolidated Fund so that they may be used to support programs and services that the government considers to be in the public interest.

Agreement terminated

69(3)       The agreement is terminated 60 days after the day this section comes into force.

No cause of action

69(4)       No cause of action arises as a direct or indirect result of the termination of the agreement by subsection (3).

No remedy

69(5)       No costs, compensation or damages are owing or payable to any person and no remedy, including but not limited to a remedy in contract, restitution, tort or trust or for a breach of fiduciary duty is available to any person in connection with the termination of the agreement by subsection (3) or any breach of the agreement or a term of the agreement.

Proceedings barred

69(6)       No action or other proceeding, including but not limited to any action or proceeding in contract, restitution, tort or trust, that is directly or indirectly based on or related to the termination of the agreement by subsection (3) or any breach of the agreement or a term of the agreement may be brought or maintained against any person.

Definition of "person"

69(7)       In subsection (6), "person" includes, but is not limited to, the Crown in right of Manitoba and its employees and agents, members of the Executive Council, and Lotteries and its employees and agents.

Application — before or after coming into force

69(8)       Subsection (6) applies regardless of whether the cause of action on which the proceeding is purportedly based arose before or after the coming into force of this section.

Proceedings set aside

69(9)       Any action or proceeding referred to in subsection (6) commenced before the day this section comes into force shall be deemed to have been dismissed, without costs, on the day this section comes into force.

No admission, etc.

69(10)      Nothing in this section acknowledges, admits, validates or recognizes an action or other proceeding referred to in subsection (6).

No expropriation or injurious affection

69(11)       For all purposes, including for the purposes of The Expropriation Act, no expropriation or injurious affection occurs as a result of the enactment of this section or the termination of the agreement by subsection (3).

Different siteholder agreement

69(12)      Nothing in this section precludes Lotteries and Manitoba Jockey Club Inc. from entering into a different siteholder agreement, before or after the coming into force of this section, provided that the terms of the siteholder agreement are generally consistent with those found in other siteholder agreements entered into by Lotteries.

PART 10

COMING INTO FORCE

Coming into force

70(1)       Except as otherwise provided in this section, this Act comes into force on the day it receives royal assent.

Part 1: The Corporation Capital Tax Act

70(2)       Section 2 is deemed to have come into force on April 17, 2013 and applies to fiscal years ending on or after that date.

Part 3: The Fuel Tax Act

70(3)       Section 9 is deemed to have come into force on April 17, 2013.

Part 4: The Income Tax Act

70(4)        Section 17 is deemed to have come into force on January 1, 2009.

70(5)       Subsections 18(1) and 20(1) come into force on January 1, 2014.

70(6)       Subsection 18(2) is deemed to have come into force on January 1, 2006.

70(7)       Subsections 19(1), (2), (5), (7) and (8) and section 27 are deemed to have come into force on June 16, 2011.

70(8)       Subsections 19(3) and (4) and 26(8) come into force on July 1, 2013 and, if this Act receives royal assent after that date, are deemed to have come into force on that date.

70(9)       Subsections 20(2), (3), (6), (7), (8) and (9) are deemed to have come into force on June 11, 2009.

70(10)      Subsection 22(1) is deemed to have come into force on April 1, 2010.

70(11)      The following provisions are deemed to have come into force on April 17, 2013:

(a) section 25;

(b) subsections 26(1) to (7) and (9) to (12);

(c) section 29.

70(12)      Section 28 is deemed to have come into force on January 1, 2013.

70(13)      Section 31 is deemed to have come into force on April 1, 2007.

Part 5: The Property Tax and Insulation Assistance Act

70(14)      Sections 32 to 39 are deemed to have come into force on January 1, 2013.

Part 6: The Retail Sales Tax Act

70(15)      Subsections 41(3), (4) and (5) and 48(1) come into force when this Act receives royal assent or immediately after Bill 20, introduced in the Second Session of the 40th Legislature and titled The Manitoba Building and Renewal Funding and Fiscal Management Act (Various Acts Amended), receives royal assent, whichever is later.

70(16)      Subsection 42(5) is deemed to have come into force on the day that subsection 2(10) of Bill 20, introduced in the Second Session of the 40th Legislature and titled The Manitoba Building and Renewal Funding and Fiscal Management Act (Various Acts Amended) comes into force.

70(17)      Subsection 43(1) is deemed to have come into force on May 1, 2013.

70(18)      The following provisions come into force on July 1, 2013 and, if this Act receives royal assent after that date, are deemed to have come into force on that date:

(a) subsections 43(2), (3), (6), (7) and (8);

(b) section 44;

(c) section 47;

(d) section 49.

70(19)      Subsections 45(1), (3), (4) and (5) are deemed to have come into force on July 15, 2012.

70(20)      Subsection 48(3) is deemed to have come into force on the earliest day on which subsection 2(16), (17) or (18) of Bill 20, introduced in the Second Session of the 40th Legislature and titled The Manitoba Building and Renewal Funding and Fiscal Management Act (Various Acts Amended), comes into force.

Part 7: The Tax Administration and Miscellaneous Taxes Act

70(21)      Section 56 insofar as it enacts section 112.2 is deemed to have come into force on June 1, 2011.

70(22)      Section 57 is deemed to have come into force on June 16, 2011.

Part 8: The Tobacco Tax Act

70(23)      Section 61 is deemed to have come into force on April 17, 2013.

Part 9: The Pari-Mutuel Levy Act

70(24)      Section 68 comes into force on April 1, 2014.

Explanatory Note

This Bill implements measures in the 2013 Manitoba Budget, and makes various other amendments to tax and financial legislation.

Budget Measures

The budget measures implemented by this Bill include the following:

Corporation Capital Tax (Part 1)

  • increasing the corporation capital tax on financial institutions from 4% to 5% (s. 2)

Criminal Property Forfeiture (Part 2)

  • allowing the Director of the Criminal Property Forfeiture Program to allocate a prescribed percentage of the value of property forfeited under administrative proceedings to the costs of administering the program (s. 5 to 7)

Fuel Tax (Part 3)

  • phasing in a fuel tax rate for natural gas used in motor vehicles as follows to replace the current rate per litre: 3¢ per cubic metre until March 31, 2014, 6¢ per cubic metre from April 1, 2014 until March 31, 2015, and 10¢ per cubic metre after March 31, 2015 (s. 9)
  • removing the requirement that all fuel retailers obtain a dealer licence and requiring only sellers of bulk fuel or dyed fuel to obtain a licence (s. 12 and 13)

Income Tax (Part 4)

  • adjusting Manitoba's dividend tax credit from 1.75% to .83% to maintain integration with and offset changes to the federal dividend gross-up rate (s. 16)
  • increasing the small business income limit eligible for the small business deduction from $400,000 to $425,000 effective January 1, 2014 (s. 18(1))
  • clarifying the calculation of the manufacturing investment tax credit when a taxpayer renounces a credit and clarifying the effect of renunciation after the filing-due date (s. 19(1), (2) and (5) to (8))
  • increasing the refundable portion of the manufacturing investment credit from 70% to 80% of the credit effective July 1, 2013 (s. 19(3) and (4))
  • revising the research and development tax credit in light of changes to the federal scientific research and experimental development tax credit to

— follow the federal reduction in the "proxy amount" claimable in respect of administrative costs

— follow the federal reduction of the claimable portion of contract payments (other than contract payments to eligible educational institutions which remain fully eligible)

— not follow the federal change disallowing capital expenditures (s. 20(1))

  • clarifying the calculation of the research and development tax credit when a taxpayer renounces a credit (s. 20(2), (3) and (6) to (9))
  • extending the film and video production tax credit to December 31, 2016 (s. 22(2) and 23)
  • allowing corporations that are not engaged primarily in data processing to claim the data processing investment tax credit if they acquire at least $10 million of eligible data processing equipment, and increasing the tax credit from 7% to 8% on data processing equipment and from 4% to 4.5% on data processing buildings (s. 25 and 26)
  • making the odour-control tax credit fully refundable to a person carrying on the business of farming (s. 27(2))
  • extending the interactive digital media tax credit to December 31, 2016, allowing up to $100,000 of marketing and distribution expenses to be claimed and removing the requirement to demonstrate that an arm's length purchaser of an eligible product will resell or license the product (s. 28)  
  • providing a new rental housing construction tax credit — equal to 8% of the capital cost of an eligible rental housing project — that is refundable to a qualifying (not-for-profit) entity and that is non-refundable to, and claimable over five years by, a for-profit corporation (s. 29)
  • extending the small business venture capital tax credit to December 31, 2016 (s. 30)

Farmland School Tax Rebate (Part 5)

  • restricting the farmland school tax rebate under Part III.1 of The Property Tax and Insulation Assistance Act to Manitoba residents, capping the total rebate payable to any group of related persons to $5,000 and requiring the rebate application to be filed by March 31 of the year following the year in which school taxes were payable (s. 32 to 39)

Retail Sales Tax (Part 6)

  • prescribing the method for determining the refund or reduction of tax payable on a qualifying purchase and sale of a vehicle that overlaps the beginning or end of the infrastructure funding period (s. 42(5) and 48(3))
  • exempting bicycle helmets, various baby supplies and child safety items (s. 43(1), (2), (3) and (8), 47 and 49)
  • expanding the exemption for qualifying sand and salt mixtures purchased by a municipality for its own use (s. 43(6) and (7) and 44)

Tax Administration and miscellaneous Tax (Part 7)

  • authorizing the minister to make an assessment or advance ruling respecting land transfer tax under general anti-avoidance rules (s. 54, 58 and 59)
  • allowing for a refund of land transfer tax paid on property that is also subject to retail sales tax and allowing for a refund if a transfer has been reversed as a result of an order by a court or the Registrar-General or because the transfer cannot be completed (s. 55 and 56)
  • providing that land transfer tax is not payable in respect of the first registration of a statutory easement (s. 57)

Tobacco Tax (Part 8)

  • increasing the tax rates on tobacco as announced in the Budget (s. 61)

Pari-Mutuel Levy (Part 9)

  • requiring that a portion of the pari-mutuel levies remitted to The Horse Racing Commission be deposited into the Consolidated Fund (s. 68)

Video Lottery Gaming Revenues (Part 9)

  • terminating the existing video lottery siteholder agreement between The Manitoba Lotteries Corporation and Manitoba Jockey Club Inc. effective 60 days after this Bill receives royal assent (s. 69)

Other Amendments

Other amendments include the following:

  • an amendment to The Corporation Capital Tax Act to clarify the criteria for the exemption for small financial institutions that are members of associated groups of companies (s. 3)
  • various amendments to The Fuel Tax Act, including amendments

— to allow a deputy collector that loses fuel to obtain a refund of tax proceeds remitted by him or her in respect of that fuel (s. 10 and 11)

— to authorize the director to issue remote northern reserve permits that would allow dealers who sell fuel that will be delivered to remote northern reserves not to collect or remit tax on that fuel (s. 14)

  • various amendments to The Income Tax Act

— to clarify that the primary caregiver tax credit is available only in respect of care provided to a Manitoba resident who is entitled to receive benefits under The Health Services Insurance Act (s. 17)

— to clarify the tax rate for the Deposit Guarantee Corporation of Manitoba (s. 18(2))

— to update references to federal government assistance programs in relation to the film and video production tax credit (s. 22(1))

— to clarify the expiry date of the Neighbourhoods Alive! tax credit (s. 24)

— to clarify the calculation of the odour-control tax credit when the taxpayer renounces a credit and the effect of renunciation after the filing-due date (s. 27)

— to make minor corrections (s. 20(4) and (5), 21 and 31)

  • various amendments to The Retail Sales Tax Act

— to clarify various provisions by replacing the requirement that property be used "exclusively or nearly exclusively" for a certain purpose with the requirement that at least 80% of the use of the property be for that purpose (s. 41(1), 43(4) and (5), 45(2) and 48(4))

— to clarify the taxation of property brought into Manitoba for temporary use (s. 41(2) to (5))

— to clarify the provisions respecting the payment of tax on vehicles (s. 42(1), (2) and (4), 48(1) and (2))

— to update the criteria respecting exemptions on the sale of property to closely related companies, shareholders and partners (s. 43(9) to (11))

— to clarify when tax is payable in respect of insurance for a definite term (s. 45(1))

— to clarify exemptions respecting insurance on certain vehicles, boats and aircraft (s. 45(3) and (5))

— to clarify the exemption respecting health care insurance (s. 45(4))

— to clarify that the purchaser of bulk goods is responsible for remitting the tax (s. 46(2))

— to clarify that an appraisal report must be obtained within 30 days after registering a vehicle to obtain a refund based on that report (s. 48(5))

— to make minor corrections (s. 42(3) and 46(1))

  • various amendments to The Tax Administration and Miscellaneous Taxes Act

— to clarify that a tax officer may purchase and obtain prohibited goods in connection with the administration and enforcement of a tax Act (s. 51)

— to allow for a reciprocal exchange of information with municipal governments (s. 52)

— to clarify that a lien for a tax debt that is registered against specific land of the tax debtor does not expire until discharged by the director (s. 53)

  • an amendment to The Tobacco Tax Act to update a section heading (s. 62)
  • amendments to the Annual Allowance for Registered Parties Regulation made under The Election Financing Act to limit the annual allowance payable to a registered political party (s. 63)
  • an amendment to The Emissions Tax on Coal Act to change the filing-due date for information returns from March 1 to March 20 to coincide with the filing-due date for retail sales tax (s. 64)
  • an amendment to The Financial Administration Act to allow the Minister of Finance to authorize a person providing services on behalf of the government to collect a government fee and to retain a portion or all of the fee as compensation for providing the service on behalf of the government (s. 65)
  • an amendment to The Housing and Renewal Corporation Act to allow profits from suburban land developments to be used for maintenance and repair of existing housing stock (s. 66)
  • amendments to the Members' Salaries Regulation made under The Legislative Assembly Act to clarify that the reduction in the additional salary for ministers continues until the end of the economic recovery period (s. 67)