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3rd Session, 41st Legislature

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Bill 34

THE BUDGET IMPLEMENTATION AND TAX STATUTES AMENDMENT ACT, 2018


  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 FUEL TAX ACT

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

1           The Fuel Tax Act is amended by this Part.

2           Section 27 is amended by renumbering it as subsection 27(1) and adding the following as subsection 27(2):

Electronic copy of licence

27(2)       For the purpose of subsection (1), the operator is deemed to be carrying a copy of the licence in the cab of the vehicle if the operator

(a) is able to display a copy of the licence on an electronic device for inspection upon request; and

(b) displays a legible copy of the licence on that device when requested to do so.

3(1)        This section amends The Fuel Tax Act as amended by The Fuel Tax Amendment Act as enacted by section 5 of Bill 16 which was introduced in the Third Session of the 41st Legislature and titled The Climate and Green Plan Implementation Act.

3(2)        Subsection 1(1) is amended by adding the following definitions:

"commercial" in relation to a flight means a flight by an aircraft that is registered under the Aeronautics Act (Canada) as a commercial aircraft and is used solely for transporting passengers, cargo or both for gain as an air service licensed under the Canada Transportation Act. (« commercial »)

"interjurisdictional" in relation to a flight means a flight, or a segment of such a flight,

(a) that departs from a place in Manitoba and has, as its next scheduled stop, a destination outside Manitoba; or

(b) that arrives at a place in Manitoba directly from a location outside Manitoba. (« interterritorial »)

3(3)        Subsection 13(2.1) is amended by adding "commercial" after "non-stop".

3(4)        The table in section 1 of the Schedule is amended by replacing the row for "Aviation fuel" with a row containing the following:

(a) in the first column, "Aviation fuel";

(b) in the second column, the following entries:

purchased with a permit and delivered directly into the fuel tanks of an aircraft for an interjurisdictional commercial passenger flight
purchased with a permit and delivered directly into the fuel tanks of an aircraft for an interjurisdictional commercial cargo flight
purchased without a permit for an interjurisdictional commercial cargo flight or delivered directly into the fuel tanks of an aircraft for any other commercial cargo flight
other

(c) in the third, fourth and fifth columns, the following rows of entries aligned with the four entries in the second column:

3.2 ¢/l 0 ¢/l 3.2 ¢/l
1.5 ¢/l 0 ¢/l 1.5 ¢/l
1.5 ¢/l 6.46 ¢/l 7.96 ¢/l
3.2 ¢/l 6.46 ¢/l 9.66 ¢/l

3(5)        Section 2 of the Schedule is amended by adding the following definition:

"purchased with a permit", in relation to a purchase of aviation fuel, means that the buyer's permit to purchase the fuel at the applicable rate specified for that type of purchase is presented to the seller at the time of purchase. (« acheté avec un permis »)

PART 2

THE INCOME TAX ACT

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

4           The Income Tax Act is amended by this Part.

5           Subclause 4.7(1)(b)(i.2) is amended by adding "or lower" after "17%".

6(1)        Subsection 5.3(1) is amended

(a) by repealing the definitions "community revitalization levy", "municipal taxes" and "municipal tax reduction";

(b) in the definition "dwelling unit cost",

(i) in clause (a), by striking out "municipal taxes" and substituting "school taxes",

(ii) by repealing clauses (b) and (c), and

(iii) in clause (d), by striking out "taxes, fees or levies referred to in clauses (a) to (c)" and substituting "taxes referred to in clause (a)";

(c) by replacing the definition "occupancy cost" with the following:

"occupancy cost" of an individual for a taxation year means the total of all amounts each of which is the dwelling unit cost of a principal residence of the individual for the year or a part of the year; (« coût d'habitation »)

(d) by replacing the definition "school tax" with the following:

"school taxes", in relation to a property for a calendar year, means the total of

(a) the tax imposed for that year under section 188 of The Public Schools Act in respect of the property, and

(b) the community revitalization levy, if any, imposed for that year in respect of that property under The Community Revitalization Tax Increment Financing Act in lieu of a tax under section 188 of The Public Schools Act,

before any school tax reduction; (« taxes scolaires »)

(e) by adding the following definition:

"school tax reduction", in relation to a property for a calendar year, means the amount by which school taxes imposed in respect of the property for that year are reduced under section 5.6. (« réduction des taxes scolaires »)

6(2)        Subsection 5.3(2) is replaced with the following:

How to designate principal residence

5.3(2)      A residential dwelling unit may be designated as the principal residence of an individual and their cohabiting spouse or common-law partner, if any, as follows:

(a) on the form on which the education property tax credit, the school tax credit or the seniors' school tax rebate is claimed by the individual or the cohabiting spouse or common-law partner;

(b) by informing the municipality in which the dwelling unit is located, in the form and manner required by the municipality, that the property is their principal residence.

6(3)        Clause 5.3(5)(a) and subsection 5.3(6) are amended by striking out "municipal" wherever it occurs and substituting "school".

6(4)        Subsection 5.3(7) is repealed.

7(1)        Subclause 5.4(2.1)(b)(i) is amended by striking out "municipal tax reduction" and substituting "school tax reduction".

7(2)        Subsection 5.4(3) is amended

(a) in the part before clause (a), by striking out "after 2010"; and

(b) in clause (b), by striking out "municipal" and substituting "school".

7(3)        Subsection 5.4(4) is amended

(a) in the part before clause (a), by striking out "after 2012";

(b) in subclause (i) of the description of A in the formula in clause (b), by striking out "the year is after 2017 and"; and

(c) in the description of B in the formula in clause (b), by striking out "municipal" and substituting "school".

8(1)        Subsection 5.5.1(1) is amended

(a) by replacing the definition "school tax" with the following:

"school tax", in relation to a property for a calendar year, means the school taxes imposed for that year in respect of the property divided by the number of dwelling units included in that property. (« taxe scolaire »)

(b) in the definition "tax due date", by striking out "municipal" and substituting "school".

8(2)        Subsection 5.5.1(3) is amended

(a) in clauses (a) and (b) of item 2, by striking out "municipal" and substituting "property";

(b) in item 3, by striking out "property's municipal taxes" and substituting "property taxes imposed in respect of the property"; and

(c) in clause (b) of item 4, by striking out "municipal" and substituting "school".

8(3)        Subsection 5.5.1(6) is amended by striking out everything after "is not prescribed," and substituting "the amount that would be determined by the formula in subsection (5) if

(a) that subsection applied to the taxation year; and

(b) in a taxation year beginning after 2018, the reference in subclause (b)(iii) in the description of C in the formula to "municipal tax reduction" were read as "school tax reduction"."

9(1)        Subsection 5.6(1) is replaced with the following:

School tax reduction

5.6(1)      Subject to subsection (1.1), the school taxes imposed for a calendar year in respect of the principal residence of an individual who is, or whose spouse or common-law partner is, its assessed owner are to be reduced by

(a) the amount prescribed by regulation for that year or, if no amount is prescribed for the year, $700; or

(b) the amount of the school taxes that, but for this subsection, would be imposed in respect of the property for that year;

whichever is less.

9(2)        Subsection 5.6(1.1) is amended, in the section heading and in the subsection, by striking out "municipal tax reduction"and substituting "school tax reduction".

9(3)        Subsection 5.6(1.2) is replaced with the following:

Assessed owner entitled to municipal tax reduction

5.6(1.2)    The assessed owner of a property that includes only one residential dwelling unit is entitled to a municipal tax reduction in respect of the property for a year if, before issuing the municipal tax statement for the property for the year, the municipality issuing the statement is satisfied that the dwelling is the principal residence of the assessed owner or their spouse or common-law partner.

9(4)        Subsection 5.6(1.2) is further amended, in the section heading and in the subsection, by striking out "municipal tax reduction" and substituting "school tax reduction".

9(5)        Subsection 5.6(1.3) is repealed.

9(6)        Subsection 5.6(2) is amended by striking out "municipal tax reductions" and substituting "school tax reductions".

9(7)        Subsection 5.6(3) is amended, in the section heading and in the part before clause (a), by striking out "municipal tax reduction" and substituting "school tax reduction".

9(8)        Subsection 5.6(3.1) is amended by striking out "municipal" wherever it occurs and substituting "school".

9(9)        Subsection 5.6(7) is amended, in the section heading, in the part before clause (a) and in clauses (a) and (b), by striking out "municipal tax" and substituting "school tax".

9(10)       The following is added after subsection 5.6(7):

Taxpayer's recourse if no municipal tax reduction

5.6(8)      If a municipal tax reduction is not applied in respect of a property as required by subsection (1), an individual's only recourse is to claim the education property tax credit to which the individual is entitled.

9(11)       Subsection 5.6(8) is amended, in the section heading and in the subsection, by striking out "municipal tax reduction" and substituting "school tax reduction".

10(1)       Subsection 5.11(1) is amended

(a) in the definition "assessing authority", in the part before clause (a),

(i) by striking out "the Manitoba Home Care Program" and substituting "home care services", and

(ii) by striking out "Department of Family Services and Labour" and substituting "Department of Families";

(b) by repealing the definition "Manitoba Home Care Program";

(c) in the definition "primary caregiver" by replacing clause (d) with the following:

(d) has filed a registration form for that recipient, completed in accordance with the instructions on the form, with the Minister of Finance for Manitoba in or before the taxation year for which the individual is claiming the primary caregiver tax credit in relation to the recipient.

(d) in the definition "qualified care recipient", by replacing clause (b) with the following:

(b) under the most recent assessment made by

(i) an assessing authority in relation to the individual, or

(ii) a health care professional whose profession is listed in the registration form,

is assessed as requiring a level of care equivalent to level 2, 3 or 4 care under home care services.

(e) by adding the following definitions:

"home care services" means the community-based services that provide support to individuals who require health services or assistance with daily living activities and are administered by regional heath authorities established or continued under The Regional Health Authorities Act. (« services de soins à domicile »)

"registration form" means the form approved by the Minister of Finance for Manitoba for registering an individual as the primary caregiver in relation to a qualified care recipient. (« formulaire d'inscription »)

10(2)       Subsection 5.11(2) is replaced with the following:

Primary caregiver tax credit

5.11(2)     An individual's primary caregiver tax credit for a taxation year after 2017 is $1,400 if

(a) the individual has a creditable period within the taxation year in relation to a qualified care recipient;

(b) no other individual claims a primary caregiver tax credit for that year in relation to that recipient; and

(c) the individual, upon request by the Minister of Finance for Manitoba, provides evidence sufficient to satisfy that minister that, in that year,

(i) the individual was a primary caregiver in relation to the recipient, and

(ii) the recipient continued to require a level of care equivalent to level 2, 3 or 4 care under home care services.

10(3)       Clause 5.11(3)(b.1) is repealed.

10(4)       The following is added after subsection 5.11(3):

Transitional

5.11(4)     A person who is the primary caregiver in relation to a qualified care recipient immediately before March 13, 2018, does not cease to be the primary caregiver in relation to that recipient on that day merely because the person has not filed a registration form with the Minister of Finance for Manitoba.

11(1)       Subsection 7(2) is amended, in the part before the formula, by striking out "the corporation" and substituting "a corporation other than a guarantee corporation as defined in The Credit Unions and Caisses Populaires Act".

11(2)       The description of L in the formula in subsection 7(2) is amended

(a) by replacing subclause (i) with the following:

(i) the amount that would be determined for the taxation year under paragraph 125(1)(a) of the federal Act if the reference in subsection 125(2) of that Act to "$500,000" were a reference to the business limit set out in subsection (3.1) for that period,

(b) by replacing subclause (iii)(B) with the following:

(B) the amount that would be its business limit under subsection 125(2) of the federal Act (determined without reference to subsection 125(5.1) of that Act) if it were not associated in the year with any other corporation;

11(3)       Subsection 7(3) is replaced with the following:

Tax and small business deduction rates

7(3)        For the purposes of this section,

(a) the tax rate for any period after November 30, 2010, is

(i) 0% for a guarantee corporation as defined in The Credit Unions and Caisses Populaires Act, and

(ii) 12% for any other corporation; and

(b) the small business deduction rate is 12% for any period after November 30, 2010.

11(4)       Subsection 7(3.1) is replaced with the following:

Business limit

7(3.1)      For the purpose of subsection (2), the business limit is

(a) $450,000 for any calendar year after 2015 and before 2019; and

(b) $500,000 for any calendar year after 2018.

11(5)       Subsection 7(4) is amended, in the part after clause (b), by striking out everything after "subject to the regulations," and substituting "the preferred-rate amount determined under subsection 137(4.3) of the federal Act.".

11(6)       Subsection 7(4) is further amended, in the part after clause (b), by striking out everything after "subject to the regulations," and substituting "the preferred-rate amount that would be determined under subsection 137(4.3) of the federal Act if the percentage determined by paragraph (f) of the description of C in subsection 137(3) of that Act were the proportion of 100% that the number of days in the taxation year that are after 2016 is of the number of days in the taxation year.".

11(7)       Subsection 7(4) is replaced with the following:

Additional deduction for credit union

7(4)        A corporation that was, throughout the taxation year, a credit union may deduct from its tax otherwise payable under this Act for that year an amount equal to the total of all amounts each of which is the amount determined by the following formula for a period referred to in subsection (1):

A × B × C × Dp/Dy

In this formula,

A   is the small business deduction rate set out in subsection (3) for that period;

B   is the amount, if any, by which the lesser of

(a) the corporation's taxable income earned in the year in Manitoba, and

(b) the amount, if any, by which 4/3 of its maximum cumulative reserve, as defined in subsection 137(6) of the federal Act, at the end of the year exceeds its preferred-rate amount at the end of the immediately preceding taxation year,

exceeds the amount determined for L in subsection (2);

C   is the percentage that is the total of

(a) the proportion of 100% that the number of days in the year that are before 2019 is of the number of days in the year,

(b) the proportion of 80% that the number of days in the year that are in 2019 is of the number of days in the year,

(c) the proportion of 60% that the number of days in the year that are in 2020 is of the number of days in the year,

(d) the proportion of 40% that the number of days in the year that are in 2021 is of the number of days in the year,

(e) the proportion of 20% that the number of days in the year that are in 2022 is of the number of days in the year, and

(f) 0%, if one or more days in the year are after 2022;

Dpis the number of days in the taxation year that fall within the period; and

Dyis the number of days in the taxation year.

11(8)       Subsections 7(4.0.1) and (4.0.2) are repealed.

11(9)       The following is added as subsection 7(4.2):

Preferred rate amount

7(4.2)      For the purpose of subsection (4),

(a) the preferred-rate amount of a credit union at the end of a taxation year is the amount determined by the following formula:

A + B/C

In this formula,

A   is its preferred-rate amount at the end of its immediately preceding taxation year;

B   is the total of the amounts deductible under subsections (2) and (4) from the tax otherwise payable by the credit union for the taxation year; and

C   is its small business deduction rate for the year set out in subsection (3) or, if that rate is not the same throughout the year, the percentage that is the total of all percentages each of which is that proportion of a small business deduction rate that applies to a period within the taxation year that the number of days in the taxation year within that period is of the number of days in the taxation year;

(b) if at any time a new corporation is formed by an amalgamation of two or more predecessor corporations, within the meaning of subsection 87(1) of the federal Act, it is deemed to have had a taxation year ending immediately before that time and to have had, at the end of that year, a preferred-rate amount equal to the total of the preferred-rate amounts of the predecessor corporations at the end of their last taxation years; and

(c) if there has been a winding-up to which subsection 88(1) of the federal Act applies, the preferred-rate amount of the parent at the end of its taxation year immediately preceding its taxation year in which it received the assets of the subsidiary on the winding-up is deemed to be the total of

(i) the amount that would otherwise be its preferred-rate amount at the end of that year, and

(ii) the preferred-rate amount of the subsidiary at the end of its taxation year in which its assets were distributed to the parent on the winding-up.

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

"eligible expenditure" of a taxpayer that is a corporation with a permanent establishment in Manitoba means

(a) an expenditure of a current nature that was made by the taxpayer in the taxation year in respect of scientific research and experimental development carried out in Manitoba and is

(i) an expenditure described in subparagraph 37(1)(a)(i) of the federal Act, or

(ii) an expenditure described in any of subparagraphs 37(1)(a)(i.01) to (iii) of the federal Act,

(b) an expenditure of a capital nature that was made by the taxpayer in the taxation year (determined as if the expenditure had not been made until the property became available for use by the taxpayer within the meaning of subsection 13(27) of the federal Act) in respect of a depreciable property used for the prosecution of scientific research and experimental development in Manitoba directly by or for the benefit of the taxpayer and in relation to a business of the taxpayer, but only if the expenditure was for the provision of depreciable property (other than a building or a leasehold interest in a building)

(i) all or substantially all of the value of which was, when the expenditure was incurred, intended to be consumed in the prosecution of scientific research and experimental development in Manitoba, or

(ii) that was, when the expenditure was incurred, intended to be used during all or substantially all of its operating time in its expected useful life for the prosecution of scientific research and experimental development in Manitoba,

(c) an expenditure of a capital nature that was made by the taxpayer in the taxation year (determined as if the expenditure had not been made until the property became available for use by the taxpayer within the meaning of subsection 13(27) of the federal Act) for property that would qualify as first term shared-use-equipment as defined in subsection 127(9) of the federal Act if that definition were read without reference to "acquired before 2014" and its reference to "Canada" were read as "Manitoba",

(d) an expenditure of a capital nature made by the taxpayer in the taxation year for property that would qualify as second term shared-use-equipment as defined in subsection 127(9) of the federal Act if the reference in that definition to "Canada" were read as "Manitoba", and

(e) 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,

but, despite clauses (a) to (e), does not include an expenditure referred to in paragraph (c), (f), (g) or (h) of the definition "qualified expenditure" in subsection 127(9) of the federal Act or any part of such an expenditure; (« dépense admissible »)

13          The following is added after section 7.19 and before the centred heading that follows it:

CHILD CARE CENTRE DEVELOPMENT TAX CREDIT

Definitions

7.20(1)     The following definitions apply in this section.

"approved", in relation to a child care space, means approved under subsection (4) for the purpose of the child care centre development tax credit. (« approuvé »)

"approved space" does not include a child care space in respect of which the approval granted under subsection (4) has been revoked. (« place approuvée »)

"child care centre"of a corporation means a child care centre as defined in The Community Child Care Standards Act. (« garderie »)

"licensed", in relation to a child care space, means licensed under The Community Child Care Standards Act. (« autorisé »)

"minister" means the minister appointed by the Lieutenant Governor in Council to administer The Community Child Care Standards Act. (« ministre »)

"utilization rate", in relation to a child care centre for any year, means the proportion of the approved and licensed spaces in that centre that are utilized for child care in that year as determined by the minister based on attendance reports submitted to the government under its Early Learning and Child Care Program. (« taux d'utilisation »)

Refundable tax credit

7.20(2)     A corporation is deemed to have paid on its balance-due day for a taxation year ending after March 12, 2018, on account of its tax payable for that year, an amount equal to the total of all amounts, each of which is its child care centre development tax credit in relation to a child care centre for that year, as determined under subsection (3), if

(a) it is a taxable Canadian corporation; and

(b) the provision of child care services is not its primary business.

Tax credit calculation

7.20(3)     Subject to subsection (7), a corporation's child care centre development tax credit in relation to a child care centre for a taxation year is the amount determined by the following formula:

A × $2,000

In this formula, A is nil if

(a) the number of the corporation's approved spaces in that centre that are licensed spaces throughout the year is less than

(i) 74, if the child care centre is in Winnipeg, or

(ii) 52, if the child care centre is outside Winnipeg;

(b) in respect of the approved spaces in that centre that are licensed spaces throughout the year,

(i) the utilization rate for the year is less than 86%, or

(ii) any space is reserved or utilized, at any time in the year, for a child other than an infant or preschool age child as defined by regulation under The Community Child Care Standards Act;

(c) the fees charged for any of the approved spaces exceed the maximum daily fees prescribed in Schedule D of the Child Care Regulation, Manitoba Regulation 62/86; or

(d) the taxation year is more than four years after the first taxation year in which the corporation's child care centre development tax credit in relation to the centre was greater than nil.

In any other case, A is the number of the corporation's approved spaces that are licensed spaces throughout the year.

Approval of child care spaces

7.20(4)     Subject to subsection (5) and the regulations, on application by a corporation that wishes to develop, for use as a child care centre, premises owned or leased, or to be owned or leased, by the corporation, the minister may

(a) approve a specified number of child care spaces for the purpose of the child care centre development tax credit; and

(b) impose conditions on the approval.

Maximum number of approved spaces

7.20(5)     The minister must not approve a number of spaces if, after granting the approval, the total number of approved spaces would be greater than

(a) the maximum number prescribed by regulation; or

(b) if no maximum number is prescribed, 200.

Minister may revoke approval

7.20(6)     The minister may revoke an approval granted under subsection (4), or revoke the approval in respect of some of the spaces for which the approval was granted, if

(a) the corporation to whom the approval was granted

(i) indicates that is no longer proceeding with the development of the child care centre as proposed, or

(ii) fails to comply with any condition imposed on that approval; or

(b) the operator of the child care centre fails to qualify for a licence for the approved spaces.

Proof of credit

7.20(7)     A corporation's child care centre development tax credit in relation to a child care centre for a taxation year is nil unless a certificate issued under subsection (8) to the corporation for that year is

(a) filed with the corporation's return for that year; or

(b) if the return is filed electronically, held by the corporation and filed with the Minister of National Revenue upon request.

Tax credit certificate

7.20(8)     The minister, upon application by a corporation in a form approved by the minister, and upon being satisfied that the corporation qualifies for a tax credit under this section for a child care centre, must issue a tax credit certificate that sets out

(a) the name, address and business number of the corporation and the name or other identifier of the child care centre;

(b) the number of approved spaces eligible for the tax credit and the amount of the tax credit;

(c) the taxation year to which the tax credit applies; and

(d) any other information that the minister considers appropriate or necessary.

Regulations

7.20(9)     The Lieutenant Governor in Council may make regulations

(a) respecting the application for approval of spaces for the purpose of the child care centre development tax credit;

(b) setting out factors to be considered when deciding whether to approve a number of spaces, or the number of spaces to be approved, for the purpose of the tax credit;

(c) respecting conditions that the minister may impose on any approval granted under subsection (4);

(d) prescribing the maximum total number of spaces that may be approved;

(e) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the administration of this section.

14          The following is added after subsection 10.3(9):

Regulation may be retroactive

10.3(10)    A regulation under subsection (9) may be made retroactive to the extent the Minister of Finance for Manitoba considers it necessary to implement or give effect to

(a) a tax or administrative measure included in a budget presented to the Legislative Assembly; or

(b) an amendment to this Act.

15          Subsection 10.4(3) is amended

(a) in clauses (a) and (b) of the definition "book publishing labour costs", by striking out "2019" and substituting "2020";

(b) in clause (b) of the definition "eligible book", by striking out "2019" and substituting "2020"; and

(c) in clause (b) of the definition "eligible printing costs", by striking out "2020" and substituting "2021".

16          Section 10.4.1 is amended by striking out "2019" wherever it occurs in the following provisions and substituting "2020":

(a) the descriptions of L and R2 in the formula in subsection (1);

(b) clause (b) of the definition "eligible printing revenue" in subsection (3).

17          Clause (c) of the definition "rental housing project" in subsection 10.6(1) is replaced with the following:

(c) becomes available for use

(i) before 2020, or

(ii) before 2021, if the taxpayer first applied to the minister for a review of the project after March 12, 2018, and before 2019;

18          Subsection 28.1(2) is amended

(a) in the section heading, by striking out "provincial debt" and substituting "other debts"; and

(b) by adding "or any other province of Canada" after "Manitoba".

PART 3

THE INSURANCE CORPORATIONS TAX ACT

C.C.S.M. c. I50 amended

19          The Insurance Corporations Tax Act is amended by this Part.

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

"TAXcess" means TAXcess as defined in subsection 1(1) of The Tax Administration and Miscellaneous Taxes Act. (« TAXcess »)

21          The following is added after subsection 8(2):

Method of payment

8(3)        The tax payable by an insurer or special broker must be paid by means of an electronic funds transfer using the payment option provided by TAXcess.

22          Subsection 9(1) is amended by striking out everything after "must" and substituting "complete and file with the director, using TAXcess, an information return in the manner required by TAXcess.".

PART 4

THE RETAIL SALES TAX ACT

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

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

24(1)       Subsection 2.3(1) is amended by adding the following definition:

"repair parts", in relation to a multijurisdictional vehicle or a trailer used with such a vehicle, means

(a) replacement parts that are designed and manufactured specifically for that type of vehicle or trailer and cannot be used for any other purpose, and

(b) parts purchased as part of a repair work order for the vehicle or trailer,

but does not include optional accessories that are not included in the purchase price of the vehicle or trailer; (« pièces de rechange »)

24(2)       Subclause 2.3(13)(a)(ii) is amended by striking out "that are prescribed in the regulations and".

25(1)       Subsection 3(1) is amended

(a) by adding the following after clause (k):

(k.1) cannabis, as defined in the Cannabis Act (Canada), but not including

(i) cannabis that is purchased for medical purposes under the authority of applicable federal law, or

(ii) industrial hemp, as defined in section 1 of the Industrial Hemp Regulations, SOR/98-156;

(b) by adding the following after clause (o.1):

(o.2) a fertilizer storage bin purchased by a farmer for farm use;

25(2)       Subsection 3(30.1) is amended by striking out "or" at the end of clause (a) and replacing clause (b) with the following:

(b) a drilling rig or a drill bit designed for use by such a rig; or

(c) a well-servicing rig;

25(3)       Clause 3(33)(c) is amended by adding "as defined in subsection 2.3(1)" after "repair parts".

26(1)       Subsection 4(8) is amended by striking out "or" at the end of clause (b), adding "or" at the end of clause (c) and adding the following after clause (c):

(d) a multijurisdictional vehicle that is being used for interjurisdictional commercial purposes or a trailer being used with such a vehicle for those purposes.

26(2)       Subsection 4(9) is repealed.

27(1)       Subsection 26(4.1) of the English version is amended, in the part before clause (a), by striking out "A person is not entitled to a refund" and substituting "No refund is payable".

27(2)       Subsection 26(9.3) is amended by striking out "or" at the end of clause (b), adding "or" at the end of clause (c) and adding the following after clause (c):

(d) the vehicle or aircraft sold by the person

(i) is the one purchased by the person within the preceding six-month period, and

(ii) when sold, is sold for export outside Manitoba.

27(3)       Clause 26(16)(a) of the English version is amended by adding "by the person or family member" after "permanent use".

PART 5

THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT

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

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

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

"TAXcess" means the web application established by or for the Department of Finance to provide subscribers with

(a) online access to one or more of their tax accounts;

(b) an electronic method of filing information or an information return with the director and accessing information provided by the director to them in respect of their tax accounts; and

(c) a method of authorizing electronic fund transfers to pay their tax debts. (« TAXcess »)

30          Subsection 7.1(3) is repealed.

31          Clause 20(b) is amended by adding "by the government" after "incurred".

32          The following is added after subsection 39(5):

Failure to file through TAXcess

39(6)       The director may impose a penalty of

(a) $100 for the first time; or

(b) $250 for each subsequent time;

that a person fails to file in the required manner an information return or other report required to be filed through TAXcess.

Failure to pay through TAXcess

39(7)       The director may impose a penalty of

(a) $100 for the first time; or

(b) $250 for each subsequent time;

that a person fails to pay in the required manner an amount required to be paid through TAXcess.

33          Subsection 46(1) is amended

(a) in clauses (d) and (e), by striking out "by the director"; and

(b) by adding the following after clause (e):

(e.1) a penalty imposed under subsection 39(6) (failure to file through TAXcess) or 39(7) (failure to pay through TAXcess);

34(1)       Subsection 80(2) is amended

(a) in clause (a), by striking out "more than four" and substituting "25 or more";

(b) in clause (a.1), by striking out "fewer than five" and substituting "fewer than 25"; and

(c) by replacing clause (d) with the following:

(d) contrary to subsection 3.2(1) of The Tobacco Tax Act,

(i) sells 25 or more units of unmarked tobacco, or

(ii) sells fewer than 25 units of unmarked tobacco;

34(2)       Subsection 80(4) is amended, in the part of clause (a) before subclause (i), by adding "or subclause (2)(d)(ii)" after "clause (2)(a.1) or (d.1)".

34(3)       Subsection 80(5) is amended, in the part before clause (a), by adding "or subclause (2)(d)(ii)" after "clause (2)(a.1) or (d.1)".

34(4)       Subsection 80(8) of the French version of is amended in the part after clause (b) by striking out "du présent article" and substituting "du présent paragraphe".

PART 6

THE TOBACCO TAX ACT

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

35          The Tobacco Tax Act is amended by this Part.

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

"fine cut tobacco" means refined loose tobacco that can be formed into a cigarette; (« tabac à coupe fine »)

37          Subsection 2(1) is amended

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

(c.1) 45¢ for every gram or fraction of a gram of fine cut tobacco;

(b) in clause (d), by striking out "(c)" and substituting "(c.1)".

PART 7

MISCELLANEOUS AMENDMENTS

DIVISION 1

THE CHIROPRACTIC ACT

C.C.S.M. c. C100 amended

38          The Chiropractic Act is amended by this Division.

39(1)       Section 1 is amended

(a) in the definition "board", by adding ", except where it refers to the board of a corporation," before "means";

(b) by repealing the definition "chiropractor";

(c) by replacing the definition "lay person" with the following:

"lay person" means an individual other than a member of the association; (« profane »)

(d) in the definition "licence", by striking out "a person indicating that the person" and substituting "a member, or to a person under subsection 8.1(3), indicating that the member or person";

(e) in the definition "member",

(i) by striking out "a person" and substituting "an individual", and

(ii) by adding "as a member" at the end;

(f) in the definition "register", by adding "of members" after "the register";

(g) in the definition "registered", by adding "as a member" after "means registered";

(h) in the definition "registration", by adding "as a member" after "means registration"; and

(i) by adding the following definitions:

"non-chiropractic corporation" means a corporation that is not controlled by

(a) one or more chiropractors or their spouses, common-law partners or children, within the meaning of the Income Tax Act (Canada),

(b) one or more other corporations controlled by one or more persons referred to in clause (a), or

(c) a combination of persons referred to in clauses (a) and (b); (« société qui n'exerce pas la chiropractie »)

"permit" means a permit issued by the registrar to a corporation authorizing it to carry on the practice of chiropractic during the period specified in the permit; (« licence »)

"professional corporation" means a corporation holding a valid permit; (« société professionnelle »)

"voting share", in a relation to a corporation, means a share of its capital stock that entitles the holder to vote in any election of the corporation's directors; (« action avec droit de vote »)

"voting shareholder", in relation to a corporation, means a person who owns a voting share of the corporation or is a voting shareholder of another corporation that owns a voting share of the corporation. (« actionnaire avec droit de vote »)

39(2)       Section 1 is further amended by renumbering it as subsection 1(1) and adding the following as subsection 1(2):

Control of corporation

1(2)        For the purpose of the definition "non-chiropractic corporation" in subsection (1), a corporation is controlled by another person if

(a) the corporation's voting shares carrying more than 50% of the votes for the election of directors are held — otherwise than by way of security only — by or for the benefit of the other person; and

(b) those shares carry sufficient votes to elect a majority of the corporation's board of directors.

40          Section 6 is amended by striking out everything after "the name of" and substituting "each member and such other information as is required by this Act, the by-laws or the regulations.".

41          Section 7 is amended by striking out "person registered in the register in accordance with this Act and" and substituting "registered individual".

42          Section 8 is amended

(a) by striking out "person" and substituting "individual"; and

(b) by striking out "his" and substituting "their".

43(1)       Subsection 12(1) is replaced with the following:

Licenced members may practise chiropractic

12(1)       Licensed members are entitled to engage in the practice of chiropractic in Manitoba and, subject to any restrictions imposed by or under this Act, may hold themselves out as licensed chiropractors.

43(2)       Subsection 12(2) is amended

(a) by striking out "chiropractor who is duly registered and licensed under this Act" and substituting "licensed member";

(b) by striking out "his" and substituting "their"; and

(c) by striking out "he is" and substituting "they are".

44          Section 16 is replaced with the following:

Unauthorized practice

16          No person shall engage in the practice of chiropractic in the province except as follows:

(a) in the case of a member, as authorized by the member's licence;

(b) in the case of a person issued a licence under section 8.1, as authorized by that licence;

(c) in the case of a professional corporation, as authorized by the corporation's permit;

(d) in the case of a non-chiropractic corporation, through one or more licensed members who are providing chiropractic services as authorized by their licences.

45          The following is added after section 21 and before Part IV:

PART III.1

PROFESSIONAL CORPORATIONS

Authority of professional corporation to practise

21.1(1)     A professional corporation established by one or more members may carry on the practice of chiropractic

(a) under the corporation's name; or

(b) as a member of a general partnership of professional corporations, or of professional corporations and licensed members, under a name approved by the registrar in accordance with the by-laws.

How professional corporation may practise

21.1(2)     A professional corporation may practise only through licensed members. PERMIT

Permit for professional corporation

21.2(1)     Subject to subsection (5), the registrar must issue a permit, or a renewal of a permit, to a corporation that wishes to carry on the practice of chiropractic if the registrar is satisfied that

(a) the corporation is incorporated, formed by amalgamation or continued under The Corporations Act, and is in good standing under that Act;

(b) the name of the corporation includes terms used to describe the practice of chiropractic, followed by the word "corporation", and is approved by the registrar in accordance with the by-laws;

(c) each voting share of the corporation is both legally and beneficially owned by

(i) a licensed member, or

(ii) another professional corporation;

(d) each other share in the capital stock of the corporation is both legally and beneficially owned by a person who is

(i) a voting shareholder of the corporation,

(ii) a spouse, common-law partner or child, within the meaning of the Income Tax Act (Canada), of a voting shareholder of the corporation, or

(iii) a corporation, each share of the capital stock of which is legally and beneficially owned by a person referred to in subclause (i) or (ii);

(e) each director of the corporation is a licensed member of the association;

(f) the president of the corporation is a licensed member of the association;

(g) each person through whom the corporation will be carrying on the practice of chiropractic is a licensed member of the association;

(h) the corporation has filed an application, in the form prescribed by by-law, and paid the fee prescribed by by-law for the permit or its renewal; and

(i) all other requirements prescribed by by-law for the issuance or renewal of the permit have been satisfied.

Conditions

21.2(2)     A permit may be issued or renewed subject to any conditions that the registrar considers advisable.

Validity

21.2(3)     Unless it is cancelled, surrendered or suspended, a permit issued or renewed under subsection (1) is valid for the time period specified in the permit.

Validity during consideration of renewal application

21.2(4)     If an application for renewal is received by the registrar by the date set out in the by-laws, the permit continues in force until a decision on the application has been made.

Refusal to issue or renew permit

21.2(5)     The registrar

(a) must refuse to issue a permit to, or renew the permit of, a corporation if the registrar is not satisfied by proper evidence that the corporation meets the requirements of subsection (1); and

(b) may refuse to issue a permit to, or renew the permit of, a corporation if

(i) a permit previously issued to the corporation has been cancelled or surrendered, or

(ii) a director, officer or shareholder of the corporation is or has been a director, officer or shareholder of a professional corporation whose permit has been cancelled or surrendered.

Notice of decision

21.2(6)     If the registrar refuses to issue or renew a permit under subsection (5), or issues or renews a permit subject to conditions, the registrar must notify the corporation in writing of the decision and the reasons for it, and of the corporation's right to appeal the decision.

Appeal to board

21.2(7)     A corporation that is refused a permit or renewal of a permit under subsection (5), or whose permit is issued or renewed subject to conditions, may appeal the registrar's decision to the board.

How to appeal

21.2(8)     The appeal must be made by filing a written notice of appeal with the board within 30 days after the corporation receives notice of the decision. The notice of the appeal must specify the reasons for the appeal.

Decision by board

21.2(9)     The board must either dismiss the appeal or make any decision the registrar could have made. The board must give the corporation written notice of its decision and the reasons for it.

RESTRICTIONS

Restriction on use of name

21.3(1)     A corporation whose name includes the words "chiropractic corporation" or any other phrase prescribed by by-law must not carry on any business in Manitoba unless it is a professional corporation.

Restriction on business of professional corporation

21.3(2)     A professional corporation must not carry on any business or activity other than the practice of chiropractic and the provision of other services directly associated with that practice.

Interpretation of business restriction

21.3(3)     Subsections (1) and (2) must not be construed so as to prohibit a professional corporation from investing its funds in real property, other than for development purposes, or in stocks, mutual funds, debt obligations, insurance, term deposits or similar investments.

Validity of corporate act

21.3(4)     No act of a professional corporation, including a transfer of property to or by the corporation, is invalid merely because it contravenes subsection (1) or (2).

DUTIES AND RESPONSIBILITIES

Conflict in duties

21.4        If there is a conflict or potential conflict between a licensed member's duty to a person receiving a chiropractic service from the member, the association or the public and the member's duty, as an employee, director or officer, to a corporation, the duty to the person receiving the chiropractic service, the association or the public prevails.

Member must comply with Act, etc.

21.5(1)     A licensed member must comply with this Act and the regulations, by-laws, standards of practice and code of ethics for the chiropractic profession, despite any relationship they may have with a corporation.

Contraventions by corporation prohibited

21.5(2)     A corporation must not contravene any provision of this Act, the regulations or the by-laws of the association.

Obligations to persons receiving chiropractic services not diminished

21.5(3)     The fiduciary and ethical obligations of a member, and the obligations of a member respecting confidentiality, to a person receiving a chiropractic service from the member

(a) are not diminished by the fact that the member is practising through a corporation; and

(b) apply equally to a corporation on whose behalf the service is provided, and to its directors and officers and, in respect of a professional corporation, its shareholders.

Liability of members

21.5(4)     The liability of a member to a person receiving a chiropractic service is not affected by the fact that the service is provided on behalf of a corporation.

Liability of voting shareholders

21.5(5)     A person is jointly and severally liable with a professional corporation for all professional liability claims made against the corporation in respect of acts, errors or omissions that were made or occurred while the person was a voting shareholder of the corporation.

Investigation of member practising through corporation

21.5(6)     If the conduct of a member through whom a corporation is or was practising chiropractic at the time the conduct occurs or occurred is the subject of a complaint, investigation or inquiry,

(a) any power of entry, inspection, investigation or inquiry that may be exercised in respect of the member, any premises or place where the member practises or has practised chiropractic or any book, record, document or equipment relating to the member's practice may be exercised in respect of the corporation and its premises or place, equipment, books, records and documents; and

(b) the corporation is jointly and severally liable with the member for all fines and costs the member is ordered to pay.

Member's conditions apply to corporation

21.5(7)     Any condition imposed on the registration or licence of a member practising chiropractic on behalf of a corporation applies to the corporation in relation to its practice through that member.

SUSPENSION OR CANCELLATION

Suspending or cancelling permit

21.6(1)     Subject to subsection (2), the board may suspend or cancel a professional corporation's permit if

(a) the corporation ceases to meet any of the requirements of eligibility for a permit set out or referred to in subsection 21.2(1);

(b) the corporation contravenes any provision of this Act or the regulations or by-laws of the association or any condition on the corporation's permit; or

(c) a member, in the course of providing a chiropractic service on behalf of the corporation, does or fails to do anything as a result of which the member's registration or licence is suspended or cancelled.

Limitation

21.6(2)     A professional corporation's permit must not be cancelled or suspended by reason only of the fact that

(a) one or more shares of the corporation have vested in

(i) an executor or administrator of the estate of an individual as a consequence of the death of the individual, or

(ii) a trustee in bankruptcy on the bankruptcy of the owner of the shares,

unless the corporation is not carrying on the practice of chiropractic through any other licensed member or the shares continue to be vested in the executor, administrator or trustee for more than 180 days, or for any longer period allowed by the registrar;

(b) the former spouse or common-law partner of a voting shareholder continues to own a share of the corporation after the end of their marriage or common-law relationship;

(c) the registration or licence of a member has been suspended, unless

(i) the member remains a director or officer of the corporation for more than 14 days after the commencement of the suspension, or

(ii) the corporation is not providing chiropractic services through any other licensed member;

(d) the registration or licence of a member has been surrendered or cancelled, unless

(i) the member remains a director or officer of the corporation for more than 14 days after the surrender or cancellation,

(ii) the member remains a voting shareholder of the corporation for more than 90 days after the surrender or cancellation, or for any longer period allowed by the board, or

(iii) the corporation is not providing chiropractic services through any other licensed member.

Surrender of permit

21.6(3)     When a corporation's permit is cancelled, it must promptly surrender the permit to the registrar.

Alternatives to suspending or cancelling permit

21.7        Instead of suspending or cancelling the corporation's permit under section 21.6, the board may take any other action it considers appropriate, including one or more of the following:

(a) reprimanding the corporation or one or more directors or voting shareholders of the corporation;

(b) imposing conditions on the permit;

(c) imposing a fine on the corporation, payable to the association, in an amount not exceeding $25,000.

Written notice of cancellation required

21.8        The board must

(a) give notice to the professional corporation in writing with the reasons for the board's decision to suspend or cancel its permit or take any action under section 21.7; and

(b) advise the professional corporation of the right to appeal the decision to the court.

Notice of changes

21.9        A professional corporation must notify the registrar, within the time period and in the form and manner determined under the by-laws, of any change in the voting shareholders, the other shareholders, the directors or the officers of the corporation.

AGREEMENTS

Voting agreements void

21.10(1)    An agreement or proxy that vests the authority to exercise any voting right attached to a share of a professional corporation in a person who is not a member is void.

Unanimous shareholders' agreements void

21.10(2)    A unanimous shareholders' agreement within the meaning of subsection 140(2) of The Corporations Act in respect of a professional corporation is void unless each shareholder of the corporation is a member or a professional corporation.

PROHIBITIONS

Holding out as a professional corporation

21.11(1)    No corporation shall hold itself out as a professional corporation unless it holds a valid permit.

Holding out as a shareholder, officer, etc.

21.11(2)    No person shall hold themselves out as a shareholder, officer, director, agent or employee of a professional corporation unless the corporation holds a valid permit.

Making false representations or declarations

21.12(1)    No person shall make a representation or declaration for the purpose of having a permit issued or renewed if they know it to be false.

Assisting the making of false representation

21.12(2)    No person shall knowingly assist a person in making a false representation or declaration for the purpose mentioned in subsection (1).

RECORD OF CORPORATIONS

Record of professional corporations

21.13(1)    The board must establish a record of all professional corporations holding permits issued under this Part.

Registrar to maintain record

21.13(2)    The registrar must maintain the record of professional corporations in accordance with this Act and the by-laws.

Contents of record

21.13(3)    The record of professional corporations must contain the following information for each corporation to which a permit has been issued:

(a) the name of the corporation;

(b) the name of each member who is a shareholder or director of the corporation;

(c) the name of each licensed member through whom the corporation will be carrying on the practice of chiropractic;

(d) the conditions, if any, imposed on the permit;

(e) the date the permit was issued;

(f) whether the permit has been cancelled or suspended and, if so, when;

(g) any other information required by by-law to be kept in the record.

Inspection of record

21.13(4)    The registrar must make the record of professional corporations available for inspection by any person at the office of the registrar at all reasonable times during regular business hours free of charge; but any inspection may be refused if there is reasonable cause to believe that the person seeking inspection does so for commercial purposes.

MISCELLANEOUS

Association powers

21.14       Any power that the association may exercise in respect of a member may be exercised in respect of a professional corporation.

Prohibition re false advertising

21.15       No member or corporation shall engage in advertising in relation to the practice of chiropractic that is untruthful, inaccurate or otherwise capable of misleading or misinforming the public.

46          Clause 22(1)(b) of the English version is amended by striking out "lay members" and substituting "lay persons".

47          Subsection 25(2) is amended

(a) in clause (f), by striking out "and applicants upon registration" and substituting ", professional corporations and applicants for registration or the renewal of registration or for the issuance or renewal of a licence or permit";

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

(g) any matter regarding the issuance, suspension, expiry or revocation of a licence or permit, including respecting conditions that

(i) must be met before a licence or permit may be issued or renewed, or

(ii) may be imposed on a licence or permit;

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

(i) respecting the record of professional corporations required by section 21.13;

(j) governing the names of professional corporations.

48          Subsection 30(1) is amended

(a) by striking out "a chiropractor" and substituting "another member"; and

(b) by striking out "the chiropractor" and substituting "the other member".

49          Subsection 50(1) is amended

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

(b) the issuance, renewal, suspension or revocation of a licence or permit;

(b) by striking out "or" at the end of clauses (a), (c), (d) and (f); and

(c) by repealing clause (g).

50          Section 52 is amended

(a) in the English version of the section heading, by striking out "against members";

(b) by adding "professional corporation or" after "No"; and

(c) by striking out "professional services" wherever it occurs and substituting "chiropractic services".

51(1)       Subsection 53(1) is amended by striking out "his own in whole or in part unless he" and substituting "their own in whole or in part unless the member is providing chiropractic services on behalf of a corporation or".

51(2)       Subsection 53(3) is replaced with the following:

Limitation on use of "Doctor"

53(3)       No member or professional corporation on whose behalf a member provides a chiropractic service may use or display the title "Doctor" or the abbreviation "Dr." in connection with the member's name unless the word "Chiropractic" or "Chiropractor" is also used or displayed immediately before or after the member's name.

52          Section 54 is amended

(a) in the section heading, by striking out "for registration"; and

(b) by striking out "his registration" and substituting "a registration, licence or permit".

53(1)       Section 55 is amended

(a) in the section heading, by striking out "practising without registration" and substituting "unauthorized practice";

(b) by striking out "not registered under this Act"; and

(c) by adding "without a valid licence or permit" after "province".

53(2)       Section 55 is further amended by renumbering it as subsection 55(1) and adding the following as subsection 55(2):

Exception

55(2)       Subsection (1) does not apply to a non-chiropractic corporation in respect of its practice of chiropractic through one or more licensed members who are providing chiropractic services as authorized by their licence.

54          The following is added after section 55:

Offence by director, officer or employee

55.1        If a corporation commits an offence under this Act, a director, officer or employee of the corporation who authorized, permitted or acquiesced in the commission of the offence is also guilty of an offence and is liable on conviction, whether or not the corporation has been prosecuted or convicted, to a fine of not less than $200 and not more than the maximum fine that may be imposed on the corporation for its offence.

55          Section 59 is repealed.

Consequential Amendments

C.C.S.M. c. H35 amended

56          Clause (e) of the definition "laboratory" in section 119 of The Health Services Insurance Act is amended by striking out "chiropractor" and substituting "person engaged in the practice of chiropractic".

C.C.S.M. c. P215 amended

57          Section 51 of The Manitoba Public Insurance Corporation Act is amended by striking out "chiropractor" and substituting "person engaged in the practice of chiropractic".

DIVISION 2

THE HEALTH SECTOR BARGAINING UNIT REVIEW ACT

C.C.S.M. c. H29 amended

58          The Health Sector Bargaining Unit Review Act is amended by this Division.

59          Section 1 is amended by replacing the definition "province-wide health employer" with the following:

"province-wide health employer" means Shared Health Inc. (« employeur provincial du secteur de la santé »)

60(1)       Subsection 2(1) is amended in the part before clause (a) by striking out "each province-wide health employer" and substituting "the province-wide health employer".

60(2)       Subsection 2(2) is amended by striking out "a province-wide health employer" and substituting "the province-wide health employer".

60(3)       The section heading for subsection 2(4) is replaced with "Multi-employer certification — health region".

60(4)       The following is added after subsection 2(4):

Multi-employer certification — province-wide health employer

2(5)        A bargaining unit for the province-wide health employer is to be certified under a multi-employer certification when, in addition to the province-wide health employer, one or more other employers are specified as providing health services that are provincial in scope by a regulation under clause 31(1)(b.1).

61(1)       Clause 3(1)(b) of the French version is amended by striking out "soins" and substituting "services".

61(2)       The following is added after subsection 3(1):

Employers organization for province-wide health employer

3(1.1)      For the sole purpose of collective bargaining, an employers organization is hereby established for the province-wide health employer, consisting of

(a) the province-wide health employer; and

(b) any other employers that provide health services that are provincial in scope and are specified by a regulation under clause 31(1)(b.1).

61(3)       Subsection 3(2) is amended by striking out "by subsection (1)" and substituting "by subsection (1) or (1.1)".

62          Section 4 is repealed.

63          Section 6 is amended in the part before clause (a) by striking out "each province-wide health employer" and substituting "the province-wide health employer".

64          Clause 7(a) is replaced with the following:

(a) give written notice to

(i) the unions, employers organizations and employer bargaining representatives that will be directly affected by the determination, and

(ii) the province-wide health employer, if it will be directly affected by the determination; and

65(1)       Subsection 8(1) is amended by striking out "each province-wide health employer" and substituting "the province-wide health employer".

65(2)       Subsection 8(3) is amended

(a) by striking out "a province-wide health employer" and substituting "the province-wide health employer"; and

(b) in the English version, by adding "the" after "bargaining unit for that health region or".

66          Subsection 31(1) is amended by

(a) repealing clause (a); and

(b) adding the following after clause (b):

(b.1) specifying employers for the purpose of subsection 3(1.1);

67          Section 32 is amended by striking out "Sections 1 to 4" and substituting "Sections 1 to 3".

DIVISION 3

OTHER AMENDMENTS

S.M. 2017, c. 40 amended

68          The Budget Implementation and Tax Statutes Amendment Act, 2017, S.M. 2017, c. 40, is amended

(a) in subsection 9(2) of the English version, by striking out "close of the fiscal year" and substituting "end of the fiscal year";

(b) in section 54 of the French version, by striking out "est présentée"; and

(c) by replacing clause 57(3)(a) of the French version with the following:

a) dans l'alinéa a), par substitution, à la seconde occurrence de « l'acheteur », de « la personne qui procède à son immatriculation »;

C.C.S.M. c. C302 amended

69(1)       The Credit Unions and Caisses Populaires Profits Tax Act is amended by this section.

69(2)       Subsection 3(1) is amended, in the part before the formula, by adding "and beginning before 2019" after "ending after 2010".

69(3)       The following is added after subsection 3(5):

Transitional — taxation year ending in 2019

3(6)        For a taxation year that ends in 2019, the amount of the tax, if any, determined by the formula in subsection (1) is to be reduced to the proportion of that amount that

(a) the number of the days in the taxation year that occur in 2018 and during which the credit union has a permanent establishment in Manitoba;

is of

(b) 365 or the number of the days in the taxation year during which the credit union has a permament establishment in Manitoba, whichever is less.

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

70(1)       The Property Tax and Insulation Assistance Act is amended by this section.

70(2)       Subsection 1(1) is amended

(a) by repealing the definitions "income of the pensioner's family" and "pensioner homeowner"; and

(b) by replacing the definition "principal residence" with the following:

"principal residence", in relation to an individual, means the individual's principal residence as defined in subsection 5.3(1) of The Income Tax Act; (« résidence principale »)

70(3)       Section 14 is amended

(a) in clause (a), by striking out "the income of the individual's family for the year, as defined in" and substituting "the individual's family income for the year, as defined in subsection 5.3(1) of"; and

(b) in clause (c),

(i) by adding "subsection 5.3(1) of" after "as defined in", and

(ii) by striking out "the municipal tax deduction" and substituting "the total of the education property tax credit and the seniors' school tax rebate".

70(4)       Section 14.1 is amended by striking out "income of the individual's family for the year" and substituting "family income".

70(5)       Section 15 is repealed.

PART 8

COMING INTO FORCE

Coming into force

71(1)       Except as otherwise provided in this section, this Act comes into force on the day it receives royal assent.

Part 1: The Fuel Tax Act

71(2)       Section 3 comes into force immediately after The Fuel Tax Amendment Act as set out in Schedule E of Bill 16, introduced in the Third Session of the 41st Legislature and titled The Climate and Green Plan Implementation Act, comes into force.

Part 2: The Income Tax Act

71(3)       Subsections 6(1), (3) and (4) and sections 7 and 8 come into force on January 1, 2019.

71(4)       Subsection 6(2) is deemed to have come into force on March 13, 2018.

71(5)       Subsections 9(1), (2), (4), (6) to (9) and (11) come into force on January 1, 2019.

71(6)       Subsections 9(3), (5) and (10) are deemed to have come into force on March 13, 2018.

71(7)       Section 10 is deemed to have come into force on January 1, 2018.

71(8)       Clause 11(2)(a) and subsection 11(4) are deemed to have come into force on December 15, 2016, and apply to taxation years beginning after March 21, 2016.

71(9)       Clause 11(2)(b) and subsection 11(5) are deemed to have come into force on September 30, 2003.

71(10)      Subsection 11(6) is deemed to have come into force on January 1, 2017.

71(11)      Subsections 11(7) and (9) come into force on January 1, 2019.

71(12)      Section 12 is deemed to have come into force on March 12, 2018.

71(13)      Section 13 is deemed to have come into force on March 13, 2018.

Part 4: The Retail Sales Tax Act

71(14)      Clause 25(1)(a) comes into force on October 17, 2018. If this Act receives royal assent after that day, that clause is deemed to have come into force on that day.

71(15)      Clause 25(1)(b) and subsection 25(2) are deemed to have come into force on May 1, 2018.

Part 6: The Tobacco Tax Act

71(16)      Part 6 is deemed to have come into force on March 13, 2018.

Part 7: Miscellaneous amendments

71(17)      Clauses 68(a) and (c) are deemed to have come into force on November 10, 2017.

71(18)      Clause 68(b) is deemed to have come into force on January 1, 2017.

Explanatory Note

This Bill implements measures in the 2018 Manitoba Budget and makes various other amendments to tax legislation.

Budget Measures

The budget measures implemented by this Bill include the following:

Income Tax (Part 2)

  • effective January 1, 2019, limiting the education property tax credit and the seniors' education property tax credit to the school taxes imposed on property and eliminating the $250 deduction so that only school taxes, rather than property taxes in excess of $250, qualify for the credit [s. 6, 7 and 8]
  • streamlining the process for obtaining the school tax reduction (the equivalent of the education property tax credit) by allowing homeowners to qualify for it by notifying the municipality of their principal residence status [s. 9]
  • simplifying the administration and calculation of the primary caregiver tax credit by eliminating the process of applying to a health authority for approval and changing the per diem credit to a flat $1,400 annual credit [s. 10]
  • increasing the amount of active business income eligible for the small business deduction from $450,000 to $500,000 effective January 1, 2019 [s. 11(4)]
  • amending the provisions governing the enhanced small business deduction for credit unions

–   to ensure that they more accurately reflect the policy changes introduced in 2003 and the manner in which the deduction has been administered since then [s. 11(2)(b) and 11(5)]

–   to address the impact of phasing out the federal additional deduction for credit unions on the calculation of the Manitoba enhanced deduction [s. 11(6)]

–   to phase out the enhanced deduction over a 5-year period beginning in 2019 [s. 11(7) and (9)]

  • updating the definition "eligible expenditure" for the purpose of the research and development tax credit to take into account changes made to the corresponding federal tax credit [s. 12]
  • establishing a child care centre development tax credit that is earned by a corporation over a 5-year period at the rate of $2,000 per year for each approved space in a new child care centre developed by the corporation [s. 13]
  • enabling regulations respecting the green energy equipment tax credit to be made with retroactive effect [s. 14]
  • extending the book publishing tax credit by one year to December 31, 2019 [s. 15]
  • extending the cultural industries printing tax credit by one year to December 31, 2019 [s. 16]
  • not extending the rental housing construction tax credit, but extending by one year (to the end of 2020) the deadline for making a rental housing project available for use in order to qualify for the credit (applicable only to projects for which the approval application is made after March 12, 2018 and before 2019) [s. 17]
  • enabling the minister to apply a tax refund to the payment of a taxpayer's liability not only to the government of Manitoba or Canada, but also to the government of any other province or territory of Canada [s. 18]

Insurance Corporations Tax (Part 3)

  • streamlining the administration of the Act by requiring insurers and special brokers to use TAXcess (Manitoba Finance's web application) for filing returns and paying the insurance corporations tax [s. 20 to 22]

Retail Sales Tax (Part 4)

  • providing exemptions for the following effective May 1, 2018:

–   fertilizer bins purchased by farmers for farm use

–   drill bits designed specifically for oil or gas drilling rigs [s. 25(1)(b) and (2)]

Tax Administration (Part 5)

  • enabling the director to impose a penalty for failing to use TAXcess to file returns or pay taxes when required to do so [s. 29, 30, 32 and 33]
  • making changes needed for more efficient enforcement of The Tobacco Tax Act by issuing tickets with set fines for the offences of possessing, selling or offering to sell fewer than 25 units of unmarked tobacco [s. 34]

Tobacco Tax (Part 6)

  • defining "fine cut tobacco" and increasing the tax rate on that tobacco product to 45¢ per gram effective March 13, 2018 [s. 36 and 37]

Miscellaneous Amendments (Part 7)

  • amending The Chiropractic Act, and making consequential amendments to The Health Services Insurance Act and The Manitoba Public Insurance Corporation Act, to enable the practice of chiropractic to be carried on by a registered chiropractor through a professional corporation [s. 39 to 57]
  • amending The Health Sector Bargaining Unit Review Act to

–   declare Shared Health Inc. the sole province-wide health employer for the purpose of the Act

–   establish an employers organization for Shared Health Inc. that includes other employers named by regulation as providing health services that are provincial in scope, in addition to the employers organizations for each health region

–   enable a bargaining unit for the Shared Health Inc. employers organization to be certified under a multi-employer certification for the purpose of collective bargaining [s. 59 to 67]

  • eliminating the tax on credit unions and caisses populaires under The Credit Unions and Caisses Populaires Profits Tax Act for taxation years beginning on or after January 1, 2019 [s. 69]
  • amending The Property Tax and Insulation Assistance Act to keep the pensioner tenants school tax assistance consistent with the education property tax credit [s. 70]

Other Amendments

Other amendments to tax legislation include:

  • amendments to The Fuel Tax Act to facilitate the use of licences issued in an electronic format [s. 2]
  • amendments to The Fuel Tax Act, as amended by Schedule E to The Climate and Green Plan Implementation Act (Bill 16, 3rd sess., 41st Leg.), to exempt interjurisdictional commercial cargo and passenger flights from carbon tax when aviation fuel is purchased with a permit and delivered directly into the tanks of an aircraft for such a flight [s. 3]
  • an amendment to The Income Tax Act to take into account the reduction in the federal dividend gross-up rate [s. 5]
  • amendments to The Income Tax Act to

–   take into account federal changes to the small business deduction provisions relating to specified partnership income

–   simplify the non-application of tax to guarantee corporations under The Credit Unions and Caisses Populaires Act [s. 11(1), (3) and (8)]

  • an amendment to The Retail Sales Tax Act to provide an exemption, effective October 17, 2018, for cannabis used for non-medicinal purposes [s. 25(1)(a)]
  • amendments to The Retail Sales Tax Act to bring existing regulatory provisions relating to repair parts and services for multijurisdictional vehicles (including trailers used with such vehicles) into the Act [s. 24, 25(3) and 26]
  • amendments to The Retail Sales Tax Act to prohibit the payment of a tax refund to the buyer of a vehicle or aircraft if

–   the buyer sells it to another person within six months of buying it and the sale is for export outside Manitoba

–   the buyer or their family member removes it from Manitoba for permanent use outside Manitoba by someone else [s. 27]

  • amendments to The Tax Administration and Miscellaneous Taxes Act to

–   clarify the director's ability to charge a taxpayer for costs incurred by the government to examine or audit records outside Manitoba

–   correct a minor error in the French version [s. 31 and 34(4)]

  • minor corrections to The Budget Implementation and Tax Statutes Amendment Act, 2017 [s. 68]