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The Statute Law Amendment (Taxation) Act, 1988

S.M. 1988-89, c. 19

Bill 30, 1st Session, 34th Legislature

The Statute Law Amendment (Taxation) Act, 1988

(Assented to December 20, 1988)

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

PART I

AMENDMENTS TO THE GASOLINE TAX ACT

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

1           The Gasoline Tax Act is amended in the manner set out in this Part.

Subsection 2(8) amended

2(1)        Subsection 2(8) is amended by striking out ".90" and substituting "1.8¢".

Clause 2(23)(b) amended

2(2)        Clause 2(23)(b) is amended by striking out "4.8¢" and substituting "5.8¢".

Subsection 10(3.1) added

3(1)        The following is added after subsection 10(3):

Import limitation

10(3.1)     No person, other than a person who has been appointed a collector under subsection (1), shall have possession of more than 200 litres of bulk gasoline unless

(a) he acquired that gasoline from a licensed dealer or a collector in Manitoba; or

(b) he has made the report or payment required under subsection (2) or (3).

Subsection 10(4) amended

3(2)        Subsection 10(4) is amended by striking out "or (3)" and substituting ", (3) or (3.1)".

Subsection 10(5) amended

3(3)        Subsection 10(5) is amended by striking out "or (3)" and substituting ", (3) or (3.1)".

Subsection 10(6) amended

3(4)        Subsection 10(6) is amended by striking out "section" where it appears for the first time and substituting "Act".

Subsection 10(7) amended

3(5)        Subsection 10(7) is amended

(a) by striking out "section" and substituting "Act"; and

(b) by striking out "or (3)" and substituting ", (3) or (3.1)".

Subsection 10(8) amended

3(6)        Subsection 10(8) is amended by striking out "or (3)" and substituting ", (3) or (3.1)".

Subsection 10(9) amended

3(7)        Subsection 10(9) is amended by striking out "or (3)" and substituting ", (3) or (3.1)".

Subsection 16(4) rep. and sub.

4           Subsection 16(4) is repealed and the following is substituted:

Interest on debt

16(4)       From and after the date on which, by agreement or pursuant to this Act or the regulations or as a result of a conviction under this Act or the regulations, any debt due to the government under this Act is to be paid or remitted

(a) by a collector to the minister; or

(b) by a deputy collector to a collector; or

(c) by a purchaser to the government; or

(d) by a deputy collector to the government; or

(e) by a licensed purchaser to the government; the debt bears interest at the rates prescribed by the Lieutenant Governor in Council pursuant to The Financial Administration Act, and the interest is compounded annually and is payable to the minister for the use of the Crown.

Subsection 28(1) amended

5           The heading of subsection 28(1) and subsection 28(1) are amended by adding "or (3.1)" after "10(2)".

Section 35.1 added

6           The following is added after section 35:

Liability of officers and directors of corporation

35.1(1)     Where a corporation

(a) fails or refuses to pay to the minister any tax payable by the corporation under this Act; or

(b) fails or refuses to collect any tax required to be collected by the corporation under this Act; or

(c) fails or refuses to remit to the minister tax collected by the corporation under this Act;

any officer, director or manager of the corporation, or other individual who performs functions for the corporation similar to those normally performed by an officer, director or manager, who directed, authorized, assented to, acquiesced in or participated in the failure or refusal is guilty of an offence.

Penalty for offence under subsection 35.1(1)

35.1(2)     Every person who is guilty of an offence under subsection (1), whether or not the corporation is, or has been prosecuted or convicted for the same offence, is liable, on summary conviction

(a) in the case of a first offence, to a fine of not less than $500. and not more than $1, 500. or to imprisonment for a term not exceeding three months or to both such fine and imprisonment; and

(b) in the case of a second or subsequent offence, to a fine of not less than $1,000. and not more than $3,000. or to imprisonment for a term not exceeding 12 months or to both such fine and imprisonment;

and, in addition, the convicting justice shall order the officer, director, manager or other person, as the case may be, to pay to the minister any tax that the corporation failed or refused to pay, collect or remit, together with any arrears, interest and penalties thereon.

PART II

AMENDMENTS TO THE HEALTH AND POST SECONDARY EDUCATION TAX LEVY ACT

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

7           The Health and Post Secondary Education Tax Levy Act is amended in the manner set out in this Part.

Subsection 3(3.2) amended

8(1)        Subsection 3(3.2) is amended by adding "and before January 1, 1989" after "1986".

Subsection 3(3.3) amended

8(2)        Subsection 3(3.3) is amended by adding "and before January 1, 1989" after " 1986".

Subsecs. 3(3.4) and (3.5) added

8(3)        The following subsections are added after subsection 3(3.3):

Exemption after December 31, 1988

3(3.4)      Where the total amount of remuneration paid by an employer to his employees is $300,000. or less in any calendar year ending after December 31, 1988, no tax is payable by the employer under subsection 3(3.1) for that calendar year.

Notch provision after December 31, 1988

3(3.5)      Where the total amount of remuneration paid by an employer to his employees in any calendar year ending after December 31, 1988 is greater than $300,000. but not greater than $600,000., the tax payable by the employer under subsection 3(3.1), before adding any interest or penalties that may be applicable, shall be 4.5% of the remuneration paid in excess of $300,000. but not exceeding $600,000.

Section 3.1 added

9           The following is added after section 3:

Reduction of tax

3.1         The Lieutenant Governor in Council may make regulations providing for a reduction of the tax payable under subsection 3(3.1) by an employer employing a person who is a driver operating a commercial truck on behalf of that employer both inside and outside Manitoba.

Subsection 5(2.1) amended

10(1)       Subsection 5(2.1) is amended by adding "and before January 1, 1989" after " 1986".

Subsection 5(2.2) added

10(2) The following is added after subsection 5(2.1):

Annual declaration of salaries paid after December 31, 1988

5(2.2)      Notwithstanding subsection (1), every employer that has a permanent establishment in Manitoba, with total annual remuneration paid to employees of $300,000. or less in any calendar year ending after December 31, 1988, shall, without notice or demand, file with the minister, on or before the last day of the second month immediately following the end of the calendar year, a declaration of the total remuneration paid for that calendar year.

Subsection 38(1) amended

11          The following is added after clause 38(l)(d):

(e) providing for the reduction of tax referred to in section 3.1 and defining "commercial truck" for the purposes of that section.

PART III

AMENDMENTS TO THE HOMEOWNERS TAX AND INSULATION ASSISTANCE ACT

C.C.S.M. c. H75 amended

12          The Homeowners Tax and Insulation Assistance Act is amended in the manner set out in this Part.

Section 1 amended

13          Section 1 is amended by adding in alphabetical order the following definition:

"income of the pensioner's family" for a taxation year means the aggregate of

(a) the income for the year of the pensioner homeowner or pensioner tenant; and

(b) the income for the year of the pensioner homeowner's or pensioner tenant's spouse, if the pensioner homeowner or pensioner tenant resides with the spouse on December 31 of the taxation year. («revenu de la famille du pensionné»)

Clause 9(2)(a) rep. and sub.

14(1)       Clause 9(2)(a) is repealed and the following is substituted:

(a)$175 minus, where the pensioner homeowner has attained the age of 55 years but has not attained the age of 65 years before the end of the year, 2% of the amount by which the income of the pensioner's family for the previous year exceeds $15,000.

Clause 9(3)(a) rep. and sub.

14(2)       Clause 9(3)(a) is repealed and the following is substituted:

(a)$175 minus, where the pensioner homeowner has attained the age of 55 years but has not attained the age of 65 years before the end of the year, 2% of the amount by which the income of the pensioner's family for the previous year exceeds $15,000.

Clause 14(a) rep. and sub.

15          Clause 14(a) is repealed and the following is substituted:

(a)$175 minus, where the pensioner tenant has attained the age of 55 years but has not attained the age of 65 years before the end of the year, 2% of the amount by which the income of the pensioner's family for the previous year exceeds $15,000.

Clause 15(a) rep. and sub.

16          Clause 15(a) is repealed and the following is substituted:

(a) the amount determined pursuant to subsection 9(2) or (3).

PART IV

AMENDMENTS TO THE INCOME TAX ACT

C.C.S.M. c. I10 (R.S.M. 1988 c. I10) amended

17          The Income Tax Act is amended in the manner set out in this Part.

Subsections 4(12) and (13) rep. and sub.

18(1)       Subsections 4(12) and (13) are repealed and the following is substituted:

Net income surtax — 1988 et seq.

4(12)       For the 1988 and subsequent taxation years, an individual shall pay, in addition to every other tax payable under this Act, a surtax equal to the amount by which the tax payable under subsection (11) exceeds the aggregate of

(a)$600.; and

(b) where the individual has claimed an amount in respect of a dependent or a spouse under paragraph 118(l)(a) or (b) of the federal Act, $100.; and

(c) for each dependent in respect of whom the individual has claimed an amount under subparagraph 118(l)(d)(i) of the federal Act, $25.; and

(d) for each dependent in respect of whom the individual has claimed an amount under subparagraph 118(l)(d)(ii) of the federal Act, $40.; and

(e) where the individual has attained the age of 65 years before the end of the taxation year, $50.; and

(f) where the individual has claimed a credit under section 118.8 of the federal Act in respect of a spouse who has attained the age of 65 years, $50.; and

(g) in each case where the individual has claimed an amount in respect of a disability under subsection 118.3(1) or (2) of the federal Act, in respect of the individual, or a dependent or, by virtue of section 118.8 of the federal Act, the individual's spouse, $50.

Tax reduction 1988 et seq.

4(13)       There may be deducted from the tax otherwise payable by an individual under this Act for the 1988 and subsequent taxation years an amount equal to the lesser of

(a)$430. plus the aggregate of

(i) where the individual has claimed an amount in respect of a dependent spouse or for any other dependent under paragraph 118(1)(a) or (b) of the federal Act, $370., and

(ii) for each dependent in respect of whom the individual has claimed an amount under subparagraph 118(l)(d)(i) of the federal Act, $50., and

(iii) for each dependent in respect of whom the individual has claimed an amount under subparagraph 118(l)(d)(ii) of the federal Act, $150., and

(iv) where the individual has attained the age of 65 years before the end of the taxation year, $270., and

(v) where the individual has claimed a credit under section 118.8 of the federal Act in respect of a spouse who has attained the age of 65 years, $270., and

(vi) in each case where the individual has claimed an amount in respect of a disability under subsection 118.3(1) or (2) of the federal Act, in respect of the individual or a dependent or, by virtue of section 118.8 of the federal Act, the individual's spouse, $270.,

minus 2% of the individual's net income for the taxation year; and

(b) the tax otherwise payable under this Act by the individual for the taxation year.

Subsection 4(14.1) added

18(2)       The following is added after subsection 4(14):

Refund of tax — vow of perpetual poverty

4(14.1)     Where, in respect of a taxation year, an individual who is a member of a religious order and who has taken a vow of perpetual poverty claims the deduction authorized by subsection 110(2) of the federal Act and pays the tax levied under subsection (9), (11) or (12), the treasurer may refund to that individual the tax paid under subsection (9), (11) or (12).

Subsection 4(20) amended

18(3)       Subsection 4(20) is amended by striking out "subsection (23)" and substituting "subsection (21)".

Subsection 4(20.1) added

18(4)       The following is added after subsection 4(20):

Additional refund

4(20.1)     Where, on or after January 1, 1982, a mutual fund trust is entitled to a capital gains refund for a taxation year under subsection (20) and an amount was paid by the mutual fund trust under subsection (6), the mutual fund trust shall be entitled to receive an additional refund equal to the lesser of

(a) the amount paid under subsection (6), for the taxation year; and

(b)20% of the amount of the mutual fund trust's capital gains refund for the year calculated under subsection (20).

Subsection 4(22) amended

18(5)       Subsection 4(22) is amended by adding "or (20.1)" after "(20)".

Clause 5(5)(b) rep. and sub.

19(1)       Clause 5(5)(b) is repealed and the following is substituted:

(b) an amount equal to the aggregate of the following amounts in respect of the individual or dependents of the individual for whom the individual has claimed in the individual's return of income, amounts or credits under sections 118, 118.3 or 118.8 of the federal Act (i) $190., and

(ii) where the individual has claimed an amount in respect of a spouse under paragraph 118(l)(a) of the federal Act, $190., and

(iii) where the individual has claimed an amount in respect of a dependent under paragraph 118(l)(b) of the federal Act, $190., and

(iv) where the individual has attained the age of 65 years before the end of the taxation year, $110., and

(v) where the individual has claimed a credit under section 118.8 of the federal Act, in respect of a spouse's age exemption, $110., and

(vi) where the individual has claimed an amount in respect of a dependent under subparagraph 118(l)(d)(i) of the federal Act, $25., and

(vii) where the individual has claimed an amount in respect of a disabled dependent under subparagraph 118(l)(d)(ii) of the federal Act, $60., and

(viii) where the individual has claimed an amount in respect of a disability of the individual or a dependent under subsection 118.3(1) or (2) of the federal Act, in each case, $110., and

(ix) where the individual has claimed a credit under section 118.8 of the federal Act in respect of a disability of the individual's spouse, $110.;

minus 1% of the income of the individual's family in that taxation year, but the deduction described in this clause may not be claimed

(x) by an individual to whom reference is made in clause (a), (c) or (d) of the definition "principal taxpayer" in subsection 5(1), or

(xi) by an individual with respect to whom any other taxpayer has, in determining the taxpayer's tax payable under the federal Act, claimed in the return filed in accordance with the federal Act an amount or credit of the type described in subclauses (ii) to (ix) for any portion of the taxation year, or

(xii) by an individual who on the last day of the taxation year, is an inmate of a penitentiary, gaol, correctional institution or penal institution and has been an inmate of a penitentiary, gaol, correctional institution or penal institution for six months or more during that taxation year.

Subsection 5(6) rep. and sub.

19(2)       Subsection 5(6) is repealed and the following is substituted:

Alternate deduction

5(6)        Notwithstanding clause (5)(b), where on the last day of the taxation year, an individual is a married individual, there may be deducted from the tax otherwise payable for that taxation year under this Act by that individual, an amount equal to the aggregate of those amounts described in subclauses (5)(b)(i), (iii), (iv), (vii) and (viii), and that may be claimed by the individual and the individual's spouse minus 1% of the income of the individual's family in that taxation year, but this deduction may not be claimed by an individual to whom reference is made in subclauses (5)(b)(x), (xi) or (xii).

Subsection 7(4.1) added

20          The following is added after subsection 7(4):

Allocation of tax revenues to municipalities

7(4.1)      From the moneys realized from the tax imposed under subsection (1), an amount equal to 1% of the taxable income of corporations earned in Manitoba shall be allocated and distributed to municipalities, Indian Reserves, communities under The Northern Affairs Act and other areas of the province in accordance with The Provincial-Municipal Tax Sharing Act.

Section 7.1 added

21          The following is added after section 7:

Definitions

7.1(1)      In this section,

"active business" means an active business carried on by a corporation as defined in paragraph 125(7)(a) of the federal Act; («entreprise exploitée activement»)

"business connected" means a business connected within the meaning of paragraph 125(9)(a) of the federal Act as that paragraph existed on January 1, 1984; («entreprise rattachée»)

"corporation" means a corporation that

(a) is incorporated pursuant to The Corporations Act, The Cooperatives Act or The Credit Unions and Caisses Populaires Act after August 8, 1988 and before 1991; and

(b) is eligible to claim, with respect to a taxation year, a deduction under subsection 125(1) or subsection 137(3) of the federal Act; («corporation »)

"minister" means the Minister of Finance of Manitoba; («ministre»)

"non-qualifying business" means, with respect to a corporation, a business that is

(a) the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor;

(b) a business of providing services if more that two thirds of the gross revenue for the taxation year of that business

(i) is derived from services provided to, or performed for or on behalf of, one entity related to the corporation, and

(ii) can reasonably be attributed to services performed by persons who are specified shareholders of the corporation or persons related to specified shareholders of the corporation,

unless the corporation employs in the business throughout the taxation year more than five full-time employees who are not specified shareholders of the corporation or persons related to specified shareholders of the corporation; or

(c) a business the principal purpose of which is

(i) to provide managerial, administrative, financial, maintenance or other similar services,

(ii) to lease property other than real property, or

(iii) to provide any services described in subclause (i) and to lease property other than real property, to one or more businesses connected at any time in the taxation year with the corporation; («entreprise non admissible»)

"specified shareholder" means a specified shareholder within the meaning of paragraph 125(9)(c) of the federal Act as that paragraph existed on January 1, 1984. («actionnaire désigné»)

Related corporations

7.1(2)      For the purposes of this section, persons and corporations are related if they are related within the meaning of section 251 of the federal Act.

Calculation of deduction

7.1(3)      Subject to subsections (4) to (10), a corporation may apply to the minister for and the minister may allow a deduction from the tax otherwise payable by the corporation under this Part, an amount equal to

(a) for the first taxation year of the corporation, 10%;

(b) for the second taxation year of the corporation, 8%;

(c) for the third taxation year of the corporation, 6%;

(d) for the fourth taxation year of the corporation, 4%;

(e) for the fifth taxation year of the corporation, 2%;

of an amount equal to, for each taxation year, that proportion of the least of the amounts determined under paragraphs 125(l)(a), (b) and (c) of the federal Act for the taxation year that:

(f) the amount of that portion of its taxable income earned in the taxation year in Manitoba, determined in accordance with paragraph 124(4)(a) of the federal Act;

bears to

(g) the total amount of the portions of its taxable income earned in the taxation year in all provinces, determined in accordance with paragraph 124(4)(a) of the federal Act.

Deemed deduction

7.1(4)      For the purposes of this section, a credit union which is allowed a deduction from the tax payable under the federal Act by virtue of subsection 137(3) of the federal Act, shall be deemed to have been allowed a small business deduction under subsection 125(1) of the federal Act (and shall be eligible for the deduction under subsection (3)) and any references in this section to the small business deduction allowed under subsection 125(1) of the federal Act shall be deemed to include reference to deductions under subsection 137(3) of the federal Act.

Applications

7.1(5)      A corporation that wishes to apply for a deduction shall

(a) apply on a form prescribed by the minister; and

(b) supply the minister with any information that the minister may require.

Minister may allow deduction

7.1(6)      Where the minister has received an application pursuant to subsection (3) and is satisfied that the corporation has complied with this section, the minister may allow the corporation to make the deduction and, where the minister allows the deduction for a taxation year under this section, the minister shall provide the corporation with a completed form certified by the minister.

Ineligible corporations

7.1(7)      A corporation is not eligible for a deduction for a taxation year under this section if it, or any predecessor corporation within the meaning of section 87 of the federal Act, at any time since the date of incorporation

(a) was associated with any other business, unless the minister has waived this restriction;

(b) carried on a non-qualifying business in Canada;

(c) carried on an active business by reason of being a member of a partnership, where any other member of the partnership was not eligible for a deduction under this section for the taxation year;

(d) was a beneficiary of a trust, where any other beneficiary of the trust was not eligible for a deduction under this section for the taxation year;

(e) carried on an active business by reason of being a co-venturer in a joint venture with any other corporation, where the other corporation was not eligible for a deduction under this section for the taxation year;

(f) has purchased or otherwise acquired or leased property from another business with respect to which

(i) any of the shareholders of the corporation or predecessor corporation, or

(ii) any persons related to the corporation or predecessor corporation or its shareholders, beneficially owned at any time, directly or indirectly, more than 10% of the issued shares of any class of the capital stock of, or more than 10% of any other equity interest in, the business; or

(g) has carried on an active business by reason of having purchased or otherwise acquired or leased property in a manner prescribed by regulation or has engaged in any activities prescribed by regulation.

Ineligibility — events or transactions

7.1(8)      A corporation is not entitled to a deduction under this section for the taxation year if, as a result of a transaction or an event, or a series of transactions or events, it is reasonable for the minister to believe that one of the principal purposes of the transaction or event or series of transactions or events is to enable the corporation to claim a deduction from tax under this section that it could not otherwise claim.

Ineligibility — dispositions

7.1(9)      A corporation is not entitled to a deduction under this section for the taxation year if, as a result of a disposition, a deemed disposition or a series of dispositions of shares of any corporation, it is reasonable for the minister to believe that one of the principal purposes of the disposition or deemed disposition is to enable the corporation to claim a deduction from tax under this section that it could not otherwise claim.

Requirements regarding application

7.1(10)     A corporation is not entitled to a deduction under this section unless it has applied to the minister at the time and in the manner prescribed by the minister.

Certified form to accompany annual return

7.1(11)     Where a corporation claims a deduction for a taxation year under this section, its annual return required pursuant to this Act for the taxation year is required to be accompanied by the completed form certified by the minister and provided pursuant to subsection (6).

Regulations

7.1(12)     For the purposes of carrying out the provisions of this section according to their intent, the Lieutenant Governor in Council may make regulations

(a) defining, restricting or enlarging the meaning of any word or expression used in this section but not defined in this section;

(b) governing any deduction to be allowed pursuant to this section and any restrictions, limitations, terms and conditions relating to any deduction.

Retroactivity

7.1(13)     A regulation made pursuant to this section may be made retroactive to a date not earlier than August 9, 1988.

Subsection 69(2) amended

22          Subsection 69(2) is amended by striking out "a form prescribed by the minister" and substituting "the prescribed form".

Subsection 76(2) amended

23          Subsection 76(2) is amended by striking out "suspension" where it appears for the first time and substituting "registration".

PART V

AMENDMENTS TO THE MINING TAX ACT

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

24          The Mining Tax Act is amended in the manner set out in this Part.

Subsection 1(1) amended

25          The definition of "assessment" that appears in subsection 1(1) is amended by striking out "re-assessment" and substituting "reassessment for fiscal years up to and including 1987".

Subsection 3(5) amended

26          Subsection 3(5) is amended by adding "without producing a loss" after "could be claimed".

Subsection 7(1) amended

27          Subsection 7(1) is amended

(a) by striking out "actual costs of in clause (f)" and substituting "actual net costs to"; and

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

(f.1) the actual net costs to the operator of any research that is designed to develop new products or uses of minerals produced from the operator's mine in Manitoba.

Subsection 10(1) amended

28(1)       Subsection 10(1) is amended by adding "without producing a loss" after "claimed or could be claimed".

Subsection 10(5) amended

28(2)       Subsection 10(5) is amended by striking out "nor less than 15%".

Subsection 11(1) amended

29          Subsection 11(1) is amended by adding "or" after clause (e) and by adding the following after clause (e):

(f) for that portion of an expenditure for which or based on which monies have been received in the form of a grant, subsidy or other assistance.

Subsection 13(1) amended

30          Subsection 13(1) is amended by striking out "18%" and substituting "20%".

Subsection 16(3) amended

31          Subsection 16(3) is amended by adding "or reassessment" after "assessment" wherever it appears.

Clause 17(l)(b) amended

32          Clause 17(l)(b) is amended by adding "or reassessment" after "assessment" wherever it appears.

Section 25 amended

33          Section 25 is amended by striking out "$100." and substituting "$250.".

Section 26 amended

34          Section 26 is amended by adding " or reassessments" after "assessments".

Subsection 27(2) amended

35          Subsection 27(2) is amended by striking out "$200." and substituting "$1,000.".

Subsection 30(6) amended

36          Subsection 30(6) is amended by adding "or reassessment" after "assessment" wherever it appears.

Subsection 31(1) amended

37(1)       Subsection 31(1) is amended by adding "or" after clause (c) and by adding the following after clause (c):

(d) an operator has failed to make his books and records available for inspection.

Subsections 31(5) to (11) added

37(2)       The following is added after subsection 31(4):

Transitional provisions

31(5)       For 1987 and prior fiscal years, assessments are to be issued in accordance with subsections (1) to (4), and, for 1988 and subsequent fiscal years, assessments and reassessments are to be issued in accordance with subsections (6) to (11).

Assessment of return

31(6)       The director shall, with all due dispatch, examine each return received in accordance with section 22, and assess the tax for the fiscal year and the interest and penalties, if any, and the amount so assessed is deemed to be the amount of the tax payable by the operator in respect of that fiscal year.

Reassessment

31(7)       Where

(a) an operator fails to make a return required under this Act in respect of a fiscal year; or

(b) the return of an operator in respect of a fiscal year is not, in the opinion of the director, substantiated by books and records of the operator; or

(c) upon inspection, examination or audit of books, records and documents, it appears to the satisfaction of the director that any tax payable by an operator under this Act in respect of a fiscal year has not been paid in accordance with this Act; or

(d) an operator has failed to make his books and records available for inspection;

the director may make a reassessment of the amount of tax payable by the operator in respect of the fiscal year and, subject to sections 32 and 33, the amount so reassessed is deemed conclusively to be the amount of the tax payable by the operator in respect of that fiscal year.

Notices of assessment and reassessment

31(8)       Where the director has made an assessment under subsection (6) or a reassessment under subsection (7), he shall, by notice in writing, mailed to or served on the operator, require the operator to remit to the minister or otherwise account for, within 30 days after the date on which the notice is mailed or served, the tax payable as assessed under subsection (6) or (7) and the operator shall, within that time, pay the tax assessed or otherwise account for the tax to the satisfaction of the minister.

Time limitation on reassessments

31(9)       The director may issue a notice of reassessment for a fiscal year

(a) at any time

(i) if the operator has failed to make a return under this Act for a taxation year, or

(ii) if the operator or the person filing the return has made any misrepresentation that is attributable to neglect, carelessness or willful default or has committed any fraud in filing the return or in supplying any information requested under this Act;

(b) within six years after the date on which a previous notice of assessment or reassessment was mailed or any later date that the operator and the director agree to in writing in cases where the operator does not or cannot supply information by the dates required by the director for the reassessment or in any other case.

Evidence of serving notice

31(10)      An affidavit or statutory declaration of the person serving or mailing a notice pursuant to subsection (8) stating that the person has served or mailed the notice is prima facie proof that the amount stated in the notice is due and owing and the onus of proving otherwise rests on the operator.

Right to reassess

31(11)      Subject to the time limitations imposed under subsection (9), the director is not prevented or prohibited from making a reassessment or a further reassessment of the amount of tax payable by the operator in respect of any fiscal year, but, where an operator has, under section 32 or 33 appealed an assessment or reassessment made under this section, in respect of a fiscal year, the director shall not make a further reassessment of the tax payable by the operator in respect of that fiscal year unless that further reassessment is based on information that was not in the return of the applicant or otherwise submitted to the director by the applicant before or at the time the appealed assessment or reassessment was made.

Subsection 32(1) amended

38(1)       Subsection 32(1) is repealed and the following is substituted:

Appeal to minister

32(1)       Where an operator disputes the amount of an assessment or reassessment made under section 31, he may personally or by his agent, within 60 days after the date on which the notice of assessment or reassessment, as the case may be, is mailed or served pursuant to subsection 31(2), serve notice of appeal on the minister.

Subsection 32(3) amended

38(2)       Subsection 32(3) is amended by adding "or reassessment" after "assessment" wherever it appears.

Section 32.1 added

39          The following is added after section 32:

Date of mailing

32.1        For the purposes of sections 31 and 32, the date on which a notice is mailed is deemed to be the date shown on the notice of assessment or reassessment, as the case may be.

Subsection 33(1) amended

40          Subsection 33(1) is amended by adding "or reassessment" after "assessment".

Subsections 34(1) and (2) amended

41          Subsections 34(1) and (2) are amended by adding "or reassessment" after "assessment" wherever it appears.

Subsections 37(1) and (2) amended

42          Subsections 37(1) and (2) are amended by striking out "$100." wherever it appears and in each case substituting "$1,000.".

Section 39 amended

43          Section 39 is amended by striking out "$50." and substituting "$1,000.".

Clause 44(3)(a) amended

44          Clause 44(3)(a) is amended by striking out "is" and substituting "may be".

Formula 1 amended

45          Formula 1 of the SCHEDULE is amended by adding "and before January 1, 1988" after "December 31, 1978".

PART VI

AMENDMENTS TO THE MOTIVE FUEL TAX ACT

C.C.S.M. c. M220 (R.S.M. 1988 c. M220) amended

46          The Motive Fuel Tax Act is amended in the manner set out in this Part.

Section 1 amended

47          The definition of "motive fuel" in section 1 is repealed and the following definition substituted:

"motive fuel" means any gas fuel or liquid fuel that is not gasoline within the meaning of The Gasoline Tax Act and that can be used for moving or operating any internal combustion engine or machine, or for heating, and, without limiting the generality of the foregoing, includes kerosene, propane, butane, manufactured gas that is not solely propane or butane, crude oil, distillate and other fuel, but does not include

(a) natural or manufactured gas that is used as a fuel and that is delivered to a purchaser by means of a gas pipe distribution system; or

(b) propane or butane that is used as a fuel for the burning in any form of mechanical lighter, torch, camp stove, lantern or similar contrivance. («carburant»)

Subsection 2(20) repealed

48          Subsection 2(20) is repealed.

Subsection 11(4.1) added

49(1)       The following is added after subsection 11(4):

Import limitation

11(4.1)     No person, other than a person who has been appointed a collector under subsection (1), shall have possession of more than 200 litres of bulk motive fuel unless

(a) he acquired that motive fuel from a licensed dealer or a collector in Manitoba; or

(b) he has made the report or payment required under subsection (3) or (4).

Subsection 11(5) amended

49(2)       The heading of subsection 11(5) and subsection 11(5) are amended by striking out "or (4)" and substituting ", (4) or (4.1)".

Subsection 11(6) amended

49(3)       Subsection 11(6) is amended by striking out "or (4)" and substituting ", (4) or (4.1)".

Subsection 11(7) amended

49(4)       Subsection 11(7) is amended by striking out "this section" and substituting "this Act" .

Subsection 11(8) amended

49(5)       Subsection 11(8) is amended

(a) by striking out "section" and substituting "Act"; and

(b) by striking out "or (4)" and substituting ", (4) or (4.1)".

Subsection 11(9) amended

49(6)       Subsection 11(9) is amended by striking out "or (4)" and substituting ", (4) or (4.1)".

Subsection 11(10) amended

49(7)       Subsection 11(10) is amended by striking out "or (4)" and substituting ", (4) or (4.1)".

Subsection 17(4) rep. and sub.

50          Subsection 17(4) is repealed and the following is substituted:

Interest on debt

17(4)       From and after the date on which, by agreement or pursuant to this Act or the regulations or as a result of a conviction under this Act or the regulations, any debt due to the government under this Act is to be paid or remitted

(a) by a collector to the minister; or

(b) by a deputy collector to a collector; or

(c) by a purchaser to the government; or

(d) by a deputy collector to the government; or

(e) by a licensed purchaser to the government; the debt bears interest at the rates prescribed by the Lieutenant Governor in Council pursuant to The Financial Administration Act, and the interest is compounded annually and is payable to the minister for the use of the Crown.

Subsection 27(5) amended

51           The heading of subsection 27(5) and subsection 27(5) are amended by adding "or (4.1)" after "11(3)".

Section 34.1 added

52          The following is added after section 34:

Liability of officers and directors of corporation

34.1(1)     Where a corporation

(a) fails or refuses to pay to the minister any tax payable by the corporation under this Act; or

(b) fails or refuses to collect any tax required to be collected by the corporation under this Act; or

(c) fails or refuses to remit to the minister tax collected by the corporation under this Act;

any officer, director or manager of the corporation, or other individual who performs functions for the corporation similar to those normally performed by an officer, director or manager, who directed, authorized, assented to, acquiesced in or participated in the failure or refusal is guilty of an offence.

Penalty for offence under subsection (1)

34.1(2)     Every person who is guilty of an offence under subsection (1), whether or not the corporation is, or has been prosecuted or convicted for the same offence, is liable, on summary conviction

(a) in the case of a first offence, to a fine of not less than $500. and not more than $1,500. or to imprisonment for a term not exceeding three months or to both such fine and imprisonment; and

(b) in the case of a second or subsequent offence, to a fine of not less than $1,000. and not more than $3,000. or to imprisonment for a term not exceeding 12 months or to both such fine and imprisonment;

and, in addition, the convicting justice shall order the officer, director, manager or other person, as the case may be, to pay to the minister any tax that the corporation failed or refused to pay, collect or remit, together with any arrears, interest and penalties.

PART VII

AMENDMENTS TO THE REVENUE ACT

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

53          The Revenue Act is amended in the manner set out in this Part.

Section 1 amended, "purchase price"

54(1)       The definition of "purchase price" in section 1 is repealed and the following is substituted:

"purchase price" means the value in Canadian money of the consideration, whether money, goods, things done, rental, services or any other consideration whatsoever, accepted by any person as the price or on account of the price of a taxable product, and without limiting the generality of the foregoing includes

(a) where the taxable product is purchased, manufactured or otherwise acquired outside the province and is subsequently brought into or received in the province to be used or consumed in the province, consideration provided to the seller of the taxable product or to any other person in connection with the taxable product, including consideration in respect of the transportation of the taxable product; and

(b) any tax, levy or duty, imposed by the Government of Canada in respect of the taxable product or the purchase, sale or importation thereof, and paid or collected by the seller;

but does not include any tax or levy imposed by a municipal corporation in respect of the taxable product, and, where the minister has fixed under subsection 3(13) an amount on which the tax is payable, means the amount so fixed; («prix d'achat»).

Section 1 amended, "taxable product"

54(2)       The definition of "taxable product" in section 1 is amended by striking out "but does not include natural and manufactured gas that is used as a fuel in an internal combustion engine" after "system" in clause (b).

Subsection 35(1.1) added

55          The following is added after subsection 35(1):

Other exemptions

35(1.1)     No tax is payable under this Part in respect of a transfer where

(a) the transferor is the Director, The Veterans' Land Act, and the transferee is a veteran or the spouse of a veteran;

(b) the transferee is a registered charity as defined in subsection 248(1) of the Income Tax Act (Canada); or

(c) in the distribution of the property of a corporation upon dissolution or winding up, the transferee is a corporation which immediately prior to the dissolution or winding up of another corporation held all of the issued shares of that other corporation.

Subsection 35(2) amended

56          Subsection 35(2) is amended by adding "or subsection (1.1)" after "subsection (1)".

Section 41 repealed

57          Section 41 is repealed.

PART VIII

AMENDMENTS TO THE TOBACCO TAX ACT

C.C.S.M. c. T80 (R.S.M. 1988 c. T80) amended

58          The Tobacco Tax Act is amended in the manner set out in this Part.

Subsection 2(1) amended

59          Subsection 2(1) is amended

(a) by striking out "4.60" in clause (a) and substituting "5.50";

(b) by striking out "22¢" in clause (q) and substituting "26¢"; and

(c) by striking out "1.60" in clause (r) and substituting "1.90".

Subsection 9(3.1) added

60(1)       The following is added after subsection 9(3):

Import limitation

9(3.1)      No person, other than a person who has been appointed a collector under subsection (1), shall have possession of more than 200 cigarettes, 50 cigars or 900 grams of other tobacco products unless

(a) he acquired the cigarettes, cigars or other tobacco products, as the case may be, from a dealer licensed in Manitoba or a collector licensed in Manitoba; or

(b) he has made the report or payment required under subsection (2) or (3).

Subsection 9(4.1) added

60(2)       The following is added after subsection 9(4):

Contravention of subsec. 9(3.1)

9(4.1)      In any prosecution for the contravention of subsection (3.1), possession of tobacco or tobacco products in excess of the minimum amounts specified in that subsection is deemed to be prima facie evidence of the importation, acquisition or possession of tobacco or tobacco products, other than from a dealer licensed in Manitoba or a collector licensed in Manitoba for the purpose of resale.

Subsection 9(5) amended

60(3)       Subsection 9(5) is amended by striking out "or (3)" and substituting ", (3) or (3.1)".

Subsection 9(6) amended

60(4)       Subsection 9(6) is amended by striking out "section" and substituting "Act".

Subsection 9(7) amended

60(5)       Subsection 9(7) is amended

(a) by striking out "section" and substituting "Act";

(b) by striking out "or (3)" and substituting ", (3) or (3.1)".

Subsection 9(8) amended

60(6)       Subsection 9(8) is amended by striking out "or (3)" and substituting ", (3) or (3.1)".

Subsection 9(9) amended

60(7)       Subsection 9(9) is amended by striking out "or (3)" and substituting ", (3) or (3.1)".

Subsection 14(4) rep. and sub.

61(1)       Subsection 14(4) is repealed and the following is substituted:

Interest on debt

14(4)       From and after the date on which, by agreement or pursuant to this Act or the regulations or as a result of a conviction under this Act or the regulations, any debt due to the government under this Act is to be paid or remitted

(a) by a collector to the minister; or

(b) by a deputy collector to a collector; or

(c) by a purchaser to the government; or

(d) by a deputy collector to the government;

the debt bears interest at the rates prescribed by the Lieutenant Governor in Council pursuant to The Financial Administration Act, and the interest is compounded annually and is payable to the minister for the use of the Crown.

Subsection 14(5) amended

61(2)       Subsection 14(5) is amended by striking out "clause 14(4)(e)" and substituting "subsection (4)".

Subsection 26(1) amended

62(1)       Subsection 26(1) is amended by adding "tenders or submits a false or misleading invoice, record or document" after "regulations," where it appears for the first time.

Subsection 26(2) amended

62(2)       The heading of subsection 26(2) and subsection 26(2) are amended by adding "or (3.1)" after "9(2)".

Section 26.1 added

63          The following is added after section 26:

Liability of officers and directors of corporation

26.1(1)     Where a corporation

(a) fails or refuses to pay to the minister any tax payable by the corporation under this Act; or

(b) fails or refuses to collect any tax required to be collected by the corporation under this Act; or

(c) fails or refuses to remit to the minister tax collected by the corporation under this Act;

any officer, director or manager of the corporation, or other individual who performs functions for the corporation similar to those normally performed by an officer, director or manager, who directed, authorized, assented to, acquiesced in, or participated in the failure or refusal is guilty of an offence.

Penalty for offence under subsection (1)

26.1(2)     Every person who is guilty of an offence under subsection (1), whether or not the corporation is, or has been prosecuted or convicted for the same offence, is liable, on summary conviction

(a) in the case of a first offence, to a fine of not less than $500. and not more than $1,500. or to imprisonment for a term not exceeding three months or to both such fine and imprisonment; and

(b) in the case of a second or subsequent offence, to a fine of not less than $1,000. and not more that $3,000. or to imprisonment for a term not exceeding 12 months or to both such fine and imprisonment;

and in addition the convicting justice shall order the officer, director, manager or other person, as the case may be, to pay to the minister any tax that the corporation failed or refused to pay, collect, or remit, together with any arrears, interest and penalties thereon.

PART IX

COMING INTO FORCE

Coming into force

64(1)       Subject to subsections (2) to (16), this Act comes into force on the day it receives the royal assent.

Section 2, Sept. 1, 1988

64(2)       Section 2 of this Act comes into force on September 1, 1988 and, in the event that this Act receives the royal assent after that date, is retroactive and deemed to have come into force on September 1, 1988.

Sections 9 and 11, Oct. 1, 1988

64(3)       Sections 9 and 11 of this Act come into force on October 1, 1988 and, in the event that this Act receives the royal assent after that date, are retroactive and deemed to have come into force on October 1, 1988.

Sections 13 to 16, Jan. 1, 1987

64(4)       Sections 13, 14, 15 and 16 of this Act are retroactive and deemed to have come into force on January 1, 1987.

Sections 18 to 20, Jan. 1, 1988

64(5)       Subject to subsections (6) and (7), sections 18, 19 and 20 of this Act are retroactive and deemed to have come into force on January 1, 1988.

Subsection 18(2), Jan. 1, 1987

64(6)       Subsection 18(2) of this Act is retroactive and deemed to have come into force on January 1, 1987.

Subsection 18(4), Jan. 1, 1982

64(7)       Subsection 18(4) of this Act is retroactive and deemed to have come into force on January 1, 1982.

Section 21, Aug. 8, 1988

64(8)       Section 21 of this Act is retroactive and deemed to have come into force on August 8, 1988.

Sections 24 to 32, 34, 36 to 41, 44 and 45, Jan. 1, 1988

64(9)       Sections 24 to 32, 34, 36 to 41, 44 and 45 of this Act are retroactive and deemed to have come into force on January 1, 1988.

Sections 47 and 48, Nov. 1, 1987

64(10)      Sections 47 and 48 of this Act are retroactive and deemed to have come into force on November 1, 1987.

Subsection 54(1), July 1, 1987

64(11)      Subsection 54(1) of this Act is retroactive and deemed to have come into force on July 1, 1987.

Subsection 54(2), Nov. 1, 1987

64(12)      Subsection 54(2) of this Act is retroactive and deemed to have come into force on November 1,1987.

Section 55, May 15, 1987

64(13)      Subject to subsection (14), section 55 of this Act is retroactive and deemed to have come into force on May 15, 1987.

Section 55, clauses 35(1.1)(b) and (c), Aug. 8, 1988

64(14)      Clauses 35(1.1)(b) and (c) of The Revenue Act, as enacted by section 55 of this Act, are retroactive and deemed to have come into force on August 8, 1988.

Sections 56 and 57, May 15, 1987

64(15)      Sections 56 and 57 of this Act are retroactive and deemed to have come into force on May 15, 1987.

Section 59, Sept. 12, 1988

64(16)      Section 59 of this Act comes into force on September 12, 1988 and, in the event that this Act receives the royal assent after that date, is retroactive and deemed to have come into force on September 12, 1988.