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The Statute Law Amendment (Taxation) Act

S.M. 1989-90, c. 15

Bill 86, 2nd Session, 34th Legislature

The Statute Law Amendment (Taxation) Act

(Assented to December 8, 1989)

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

PART 1

THE GASOLINE TAX ACT

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

1           The Gasoline Tax Act is amended by this Part.

Section 1: "gasohol"

2           The definition of "gasohol" in section 1 is amended by striking out "Canada" and substituting "Manitoba".

Subsection 2(6) amended

3(1)        Subsection 2(6) is amended by striking out "2.5¢" and substituting "3.5¢".

Subsection 2(21.1) added

3(2)        Section 2 is amended by adding the following subsection after subsection (21):

Aerial spray refunds

2(21.1)     Where a purchaser

(a) is the owner or lessee of a single seat aircraft that is designed for aerial spraying and that is registered with Transport Canada for such use;

(b) purchases and uses aircraft gasoline for spraying farm land in Manitoba and pays tax on the aircraft gasoline under subsection (5) ;

(c) holds a permit issued under subsection 5(5);

(d) applies to the minister within two years of the date of purchase of the aircraft gasoline for a refund of the tax paid on the aircraft gasoline; and

(e) provides to the director, in a form acceptable to the director, such information and documentation as the director requests for purposes of the refund application;

and the minister is satisfied that the purchaser qualifies for a refund under this subsection, the minister shall, subject to subsection (22), refund the tax to the purchaser in accordance with subsection 5(9).

Subsection 2(22) amended

3(3)        Subsection 2(22) is amended by striking out "or (21)" and substituting ", (21) or (21.1)".

Subsection 2(23): repeal and substitution

3(4)        Subsection 2(23) is repealed and the following is substituted:

Tax on certain gasoline and aircraft gasoline

2(23)       Notwithstanding subsections (1) and (5) and subject to subsections (8), (15) and (16), a purchaser shall pay to the minister a tax at the rate of

(a)9.0¢ per litre on gasoline other than aircraft gasoline or gasohol purchased by the purchaser; and

(b)5.8¢ per litre on aircraft gasoline purchased by the purchaser.

Subsection 5(5) amended

4(1)        Subsection 5(5) is amended by striking out "subsections 2(18) or (19)" and substituting "subsection 2(18), (19) or (21.1)".

Subsection 5(6) amended

4(2)        Subsection 5(6) is amended by striking out "or (19)" and substituting ", (19) or (21.1)".

Subsection 5(9) amended

4(3)        Subsection 5(9) is amended by striking out "or (19)" and substituting ", (19) or (21.1)".

Subsection 12(2): repeal and substitution

5           Subsection 12(2) is repealed and the following is substituted:

Filing of statement by licensed purchasers

12(2)       For purposes of determining the tax payable by a licensed purchaser under subsection 2(10), the licensed purchaser shall file a statement with the minister at such times, in such form and containing such information as may be prescribed by regulation.

Subsection 21(4) amended

6           Subsection 21(4) is amended by adding "or, in the case of gasoline or other perishable or dangerous thing, to dispose of it in accordance with subsection 10(6), 10(7) or 10(8)" after "proceedings".

Clause 39(r): repeal and substitution

7           Clause 39(r) is repealed and the following is substituted:

(r) prescribing the form of reports, returns or statements to be made or filed under this Act and the information to be provided in such returns, reports or statements;

PART 2

THE HEALTH AND POST SECONDARY EDUCATION TAX LEVY ACT

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

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

Subsection 3(3.4) amended

9(1)        Subsection 3(3.4) is amended by striking out "1988," and substituting "1988 and before January 1, 1990,".

Subsection 3(3.5) amended

9(2)        Subsection 3(3.5) is amended by striking out "1988" and substituting "1988 and before January 1, 1990".

Subsections 3(3.6) and 3(3.7) added

9(3)        Section 3 is amended by adding the following subsections:

Exemption after 1989

3(3.6)      Where, after 1989, the total remuneration paid by an employer to employees in the province in a calendar year is $600,000. or less, no tax is payable by the employer under subsection (3.1) in respect of the calendar year.

Tax rate after 1989

3(3.7)      Where, after 1989, the total remuneration paid by an employer to employees in the province in a calendar year is more than $600,000. and not more than $1,200,000., the amount of the tax payable by the employer under subsection (3.1), apart from interest or penalties otherwise applicable, is 4.5% of the remuneration paid in the calendar year in excess of $600,000. but not exceeding $1,200,000.

Subsection 5(2.2) amended

10(1)       Subsection 5(2.2) is amended by striking out "1988," and substituting "1988 and before January 1, 1990,".

Subsection 5(2.3) added

10(2)       Section 5 is amended by adding the following subsection after subsection (2.2):

Annual declaration of salaries after 1989

5(2.3)      Notwithstanding subsection (1), an employer having a permanent establishment in the province and paying, in a calendar year after 1989, a total remuneration of $600,000. or less to employees in the province shall, without notice or demand, file with the minister on or before the end of the second month of the next ensuing year, a declaration of the amount of the total remuneration paid in the calendar year.

PART 3

THE INCOME TAX ACT

C.C.S.M. I10 amended

11          The Income Tax Act is amended by this Part.

Subsection 1(6) added

12          Section 1 is amended by adding the following subsection after subsection (5):

Modification of federal provisions

1(6)        Where a section or subsection (in this subsection referred to as "the section") of the federal Act or the federal regulations is made applicable for the purposes of this Act, the section, as amended from time to time, applies with such modifications as the circumstances require for the purposes of this Act as though enacted as a provision of this Act and in applying the section for the purposes of this Act, in addition to any other modifications required by the circumstances,

(a) a reference in the section to tax under Part I of the federal Act shall be read as a reference to tax under this Act;

(b) where the section contains a reference to tax under any of Parts I.1 to XIV of the federal Act, the section shall be read without reference to tax under any of those Parts and without reference to any portion of the section that applies only to or in respect of tax under any of those Parts;

(c) a reference in the section to a particular provision of the federal Act that is the same as or similar to a provision of this Act shall be read as a reference to the provision of this Act;

(d) a reference in the section to a particular provision of the federal Act that applies for the purposes of this Act shall be read as a reference to the particular provision as it applies for the purposes of this Act;

(e) where the section contains a reference to any of Parts I.1 to XIV of the federal Act or to a provision in any of those Parts, the section shall be read without reference to the Part or the provision and without reference to any portion of the section that applies only because of the application of any of those Parts or the application of a provision in any of those Parts;

(f) where the section contains a reference to the Bankruptcy Act, the section shall be read without reference to the Bankruptcy Act;

(g) a reference in the section to a federal regulation that applies for the purposes of this Act shall be read as a reference to the regulation as it applies for the puposes of this Act;

(h) a reference in the section to a word or expression in the left hand column of the following table shall be read as a reference to the word or expression opposite in the right hand column of the table:

TABLE

Her Majesty Her Majesty in right of the Province of Manitoba
Canada Manitoba
Receiver General Treasurer
Deputy Minister of National Revenue for Taxation deputy head
Deputy Attorney General of Canada Deputy Attorney General of Manitoba
Tax Court of Canada Court of Queen's Bench of Manitoba
Tax Court of Canada Act The Court of Queen's Bench Act
Federal Court of Canada Court of Queen'sBench of Manitoba
Federal Court Act The Court of Queen's Bench Act
Registrar of the Tax Court of Canada Registrar of the Court of Queen's Bench of Manitoba
Registry of the Federal Court an administrative centre of the Court of Queen's Bench of Manitoba

Section 2: repeal and substitution

13          Section 2 is repealed and the following is substituted:

Compounding of interest

2           Interest computed under subsection 161(1), 161(2), 161(11), 164(3), 164(3.1), 164(4), 227(8.3) or 227(9.2) of the federal Act, as these provisions apply for the purposes of this Act, shall be compounded daily and where interest that is computed under any of these provisions is unpaid on the day that it would, but for this section, have ceased to be computed under the provision, interest at the rate provided by the provision shall be computed and compounded daily on the unpaid interest from that day.

Clause 3(1)(b) amended

14          Clause 3(1)(b) is amended by striking out "4(17)" and substituting "4(15)".

Subsection 4(4): repeal and substitution

15(1)       Subsection 4(4) is repealed and the following is substituted:

Computation of tax

4(4)        For purposes of this section, the percentage of the tax payable under the federal Act to be used for computing the tax payable under section 3 is,

(a) for 1987 and 1988, 54%, allocated and distributed as 51.8% for provincial purposes and 2.2% for municipal purposes;

(b) for 1989 and subsequent years, 52%, allocated and distributed as 49.8% for provincial purposes and 2.2% for municipal purposes.

Subsection 4(13) amended

15(2)       Subsection 4(13) is amended by striking out "There" and substituting "Subject to subsection (13.1), there".

Subsection 4(13.1) added

15(3)       Section 4 is amended by adding the following subsection after subsection (13):

Dependent deduction for 1989 and after

4(13.1)     For 1989 and subsequent years, the amount allowed under subclause (13)(a)(ii) is $250. and the amount allowed under subclause (13)(a)(iii) is $250.

Subsection 4(14) amended

15(4)       Subsection 4(14) is amended

(a) by adding "a deduction for" after "has claimed";

(b) by striking out "claimed" after "medical expenses"; and

(c) by striking out "subsections (9) or (11)" wherever it occurs and in each case substituting "subsection (9), (11) or (12)".

Subsections 4(14.2) and 4(14.3) added

15(5)       Section 4 is amended by adding the following subsections after subsection (14.1):

Tax refund on repaid unemployment benefits

4(14.2)     Where, in respect of a taxation year, an individual pays a tax under subsection (9), (11) or (12) on unemployment insurance benefits that the individual repays and for which a deduction is allowed under paragraph 110(1)(i) of the federal Act, the treasurer may refund to the individual the tax paid under subsection (9), (11) or (12) in respect of the unemployment insurance benefits.

Tax refund on capital gains of farmers

4(14.3)     Where, in respect of a taxation year, an individual

(a) by reason of foreclosure, repossession or a quit claim, disposes or is deemed to dispose of qualified farm property as defined in section 110.6 of the federal Act; and

(b) pays a tax under subsection (9), (11) or (12) on taxable capital gains for which the individual is allowed a deduction under subsection 110.6(2) of the federal Act;

the treasurer may refund to the individual the tax paid under subsection (9), (11) or (12).

Subsection 4(17) amended

15(6)       Subsection 4(17) is amended,

(a) in clause (a), by striking out the words that follow "exceeds", placing a comma after "exceeds" and adding the following subclauses:

(i) for 1985 and previous years, the amount claimed under the federal Act as a deduction for the year under subsection 126(1) of the federal Act,

(ii) for 1986 and subsequent years, the aggregate of all amounts each of which is an amount claimed by him as a deduction for the year under subsection 126(1) or 180.1(1.1) of the federal Act; and

(b) in subclause (b)(i), by adding after "110(1)(f)(i) of the federal Act," the following:

or in respect of which, for 1985 and subsequent years, an amount was deductible by him for the year under section 110.6 of the federal Act,;

(c) by striking out the words after paragraph (b)(ii)(B) and substituting the following:

minus any amounts deductible by the individual,

(iii) for 1984 and previous years, under paragraph 110(1)(d) or (f), paragraph 111(1)(b) or section 112 of the federal Act for the year or such period or periods, as the case may be,

(iv) subject to subsection (17.1), for 1985 and subsequent years, under section 110.6 or paragraph 111(1)(b) of the federal Act, or under paragraph 110(1)(d), (d.1), (d.2), (d.3), (f) or (j) or section 112 of the federal Act, for the year or such period or periods, as the case may be.

Subsection 4(17.1) added

15(7)       Section 4 is amended by adding the following subsection after subsection (17):

Federal Act references for 1985-87

4(17.1)     For purposes of subclause (17)(b)(iv), the reference in the subclause to section 110.6 of the federal Act does not apply to 1985, 1986 and 1987 taxation years and, in its place, a reference to section 110.1 or 110.6 of the federal Act applies to 1985, 1986 and 1987 taxation years.

Subsection 4(18) amended

15(8)       Subsection 4(18) is amended by striking out "For" and substituting "Subject to subsection (18.1), for".

Subsection 4(18.1) added

15(9)       Section 4 is amended by adding the following subsection after

subsection (18):

Federal Act references after 1984

4(18.1)     For purposes of subsection (18), the reference in the subsection to section 120.1 of the federal Act applies to 1984 and previous years and, in its place, a reference to sections 120.1 and 127.4 of the federal Act applies to 1985 and subsequent years.

Clause 5(4)(b) amended

16(1)       Clause 5(4)(b) is amended by striking out "an exemption for the other under section 109" and substituting "an amount in respect of the other under section 118".

Subsection 5(13) amended

16(2)       Subsection 5(13) is amended by striking out "An" and substituting "Subject to subsection (13.1), an".

Subsection 5(13.1) added

16(3)       Section 5 is amended by adding the following subsection after subsection (13):

Filings after 1982:  three year limit

5(13.1)     For purposes of subsection (13), an individual shall file a return in respect of 1983 and subsequent years within three years following the end of the taxation year.

Clause 7.1(7)(f) amended

17          Clause 7.1(7)(f) is amended by striking out "10%" wherever it occurs and in each case substituting "25%".

Sections 14 and 15:  repeal and substitution

18          Sections 14 and 15 are repealed and the following is substituted:

Application of federal provisions (return of income, assessments and withholding)

14          Sections 150 and 151 and subsections 152(1), (2), (3), (4), (4.1), (5), (6), (7) and (8) and subsections 153(1), (1.1), (1.2), (1.3), (1.4), (2) and (3) of the federal Act apply for the purposes of this Act.

Reassessment

15          Where a collection agreement is in effect, notwithstanding that more that three years have elapsed since the day of mailing a notice of an original assessment of tax, interest or penalties payable by a taxpayer for a taxation year or of a notification that no tax is payable by the taxpayer for the year, if the tax payable under Part I of the federal Act by the taxpayer for the year is reassessed, the minister shall reassess or make additional assessments or assess tax, interest or penalties, as the circumstances require.

Sections 16 and 17:  repeal

19          Sections 16 and 17 are repealed.

Subsection 18(1):  repeal and substitution

20          Subsection 18(1) is repealed and the following is substituted:

Payment of tax by farmer or fisherman

18(1)       An individual whose chief source of income is farming or fishing, other than an individual to whom subsection 153(2) of the federal Act applies for the purposes of this Act, shall pay to the treasurer

(a) on or before December 31 in each taxation year, two thirds of

(i) the amount estimated by him under section 151 of the federal Act, as it applies for the purposes of this Act, to be the tax payable under this Act by him for the year computed without reference to section 127.3 of the federal Act, or

(ii) the tax payable under this Act by him for the immediately preceding taxation year; and

(b) on or before April 30 in the next following year, the remainder of the tax as estimated under section 151 of the federal Act as it applies for the purposes of this Act.

Subsection 19(1):  repeal and substitution

21          Subsection 19(1) is repealed and the following is substituted:

Payment of tax by other individuals

19(1)       An individual, other than an individual to whom subsection 153(2) of the federal Act applies for the purposes of this Act or to whom section 18 applies, shall pay to the treasurer,

(a) on or before March 15, June 15, September 15 and December 15 in each taxation year, an amount equal to one quarter of

(i) the amount estimated by him under section 151 of the federal Act to be the tax payable under this Act by him for the year computed without reference to section 127.3 of the federal Act, or

(ii) the tax payable under this Act by him for the immediately preceding taxation year; and

(b) on or before April 30 in the next following year, the remainder of the tax as estimated under section 151 of the federal Act, as it applies for the purposes of this Act.

Taxation years previous to 1990

19(1.1)     In applying subsection (1) to taxation years before the 1990 taxation

year, the reference in subsection (1) to March 15, June 15, September 15 and December 15 shall be read as a reference to March 31, June 30, September 30 and December 31.

Section 21:  repeal and substitution

22          Section 21 is repealed and the following is substituted:

Application of federal provision (payments by corporations)

21(1)       Subsections 157(1), (2), (2.1) and (4) of the federal Act apply for the purposes of this Act.

Payments where collection agreement in effect

21(2)       Where a collection agreement is in effect, a corporation that pays amounts in respect of a taxation year computed under subparagraph 157(1)(a)(i), (ii) or (iii) of the federal Act and that is required to make payments under subsection 157(1) of the federal Act as it applies for the purposes of this Act shall pay amounts in respect of the year computed under the same subparagraph as it applies for the purposes of this Act.

Sections 22-24:  repeal and substitution

23          Sections 22, 23 and 24 are repealed and the following is substituted:

Application of federal provisions (returns, payments and interest)

22(1)       Subsection 70(2), subsection 104(2), paragraph 104(23)(e), sections 158, 159 and 160, subsection 160.1(1), sections 160.2 and 160.3 and subsections 161(1), (2), (2.1), (2.2), (3), (4), (4.1), (5), (6), (6.1), (7), (9) and (11) of the federal Act apply for the purposes of this Act.

Refunds for tax credits

22(2)       In applying subsection 160.1(1) of the federal Act for the purposes of this Act, "refund" includes a refund that arises by reason of a provision of this Act

(a) that allows a taxpayer to deduct an amount from the tax payable under this Act; or

(b) that deems an amount to have been paid by a taxpayer as, or on account of, the tax payable under this Act by the taxpayer.

Amount on which instalment computed

23          Where a collection agreement is in effect and a taxpayer is deemed under subsection 161(4) of the federal Act to be liable, with respect to the tax payable under Part I of the federal Act for a particular taxation year, to pay a part or an instalment computed by reference to an amount described in paragraph 161(4)(c) or (d) of the federal Act, notwithstanding subsection 161(4) of the federal Act, as it applies for the purposes of this Act, the taxpayer is deemed for the purposes of subsection 161(2) of the federal Act, as it applies for the purposes of this Act, to be liable to pay, in respect of the tax payable under this Act for the particular year, a part or an instalment computed by reference to the same paragraph as it applies for the purposes of this Act.

Sections 25-27:  repeal and substitution

24          Sections 25, 26 and 27 are repealed and the following is substituted:

Penalty for failure to file return

25(1)       A person who fails to file a return of income for a taxation year as required under subsection 150(1) of the federal Act, as it applies for the purposes of this Act, is liable to a penalty equal to the aggregate of

(a) an amount equal to 5% of the tax that is payable by the person for the year under this Act and is unpaid as of the date on which the return is required to be filed; and

(b) the product obtained when 1% of the tax that is payable by the person for the year under this Act and is unpaid on the day that the return is required to be filed is multiplied by the number of complete months, not exceeding 12, from the date on which the return is required to be filed to the date on which the return is filed.

Further penalty

25(2)       Where a person is assessed for a penalty under subsection (1) or this subsection in respect of a return of income for any of the three preceding taxation years and

(a) fails to file a return of income for a taxation year as required under subsection 150(1) of the federal Act as it applies for the purposes of this Act; and

(b) is served with a demand for a return for the taxation year under subsection 150(2) of the federal Act as it applies for the purposes of this Act;

the person is liable to a penalty equal to the aggregate of

(c) an amount equal to 10% of the tax that is payable under this Act for the taxation year and that is unpaid when the return is required under this Act to be filed; and

(d) the product obtained when 2% of the tax that is payable under this Act for the taxation year and that is unpaid when the return is required under this Act to be filed is multiplied by the number of complete months, not exceeding 20, from the date on which the return is required under this Act to be filed to the date on which the return is filed.

Penalty for late or no return

25(3)       A person who fails to file a return as required under subsection 150(3) of the federal Act, as it applies for the purposes of this Act, is liable to a penalty of $10. for each day of default but not exceeding $50.

Penalty re information

25(4)       A person who fails to provide information that is required on a prescribed form under this Act or a regulation or a provision of the federal Act or of the federal regulations that applies for the purposes of this Act is, except where the minister, in the case of an individual, waives the penalty, liable to a penalty of $100. for each failure unless, in the case of information that is required in respect of another person, a reasonable effort is made by the person to obtain the information from the other person.

Failure to comply with regulation

25(5)       Where a person fails

(a) to make an information return as required under this Act or a regulation or a provision of the federal Act or of the federal regulations that applies for the purposes of this Act; or

(b) to comply with a duty or obligation imposed under this Act or a regulation or a provision of the federal Act or federal regulations that applies for the purposes of this Act;

the person is liable in respect of each failure, unless another provision of this Act provides a penalty for the failure, to a penalty equal to the greater of $100. and the product obtained when $25. is multiplied by the number of days, not exceeding 100, during which the failure continues.

Collection agreement

25(6)       Where a collection agreement is in effect, the minister may refrain from levying or may reduce a penalty to which a person is liable for a failure under this section where the person is required to pay a penalty under section 162 of the federal Act in respect of the failure.

"Return"

26(1)       For purposes of this section, "return" means a return under section 150 of the federal Act as it applies for purposes of this Act and includes a form, certificate, statement, answer or other document that is filed as part of, or with respect to, a return.

Repeated failures

26(2)       Where a person

(a) in a return for a taxation year; and

(b) in a return for any of the three preceding taxation years;

fails to report an amount that is required to be included in the income of the person for the taxation year, the person is liable to a penalty equal to 10% of the amount not included in the return under clause (a), except where the person is liable to a penalty under subsection (3) in respect of the same amount.

False statements or omissions

26(3)       A person who knowingly or by reason of gross negligence in the performance of a duty or obligation imposed under this Act or under a provision of the federal Act as it applies for the purposes of this Act, makes or participates in, assents to or acquiesces in the making of, a false statement or omission in a return that is filed or made in respect of a taxation year as required under this Act or a regulation made under this Act or as required under the federal Act as it applies for the purpose of this Act, is liable to a penalty that is the greater of $100 and 50% of the amount, if any, by which the tax that is payable under this Act, when computed

(a) in the case of an understatement of income for a year, after adding to the taxable income reported in the return the portion of the understatement that is reasonably attributable to the false statement or omission;

(b) in the case of a wrongful deduction, after subtracting from the amount claimed in the return as a deduction such portion of the amount as might reasonably be attributed to the false statement or omission;

exceeds the tax that would be payable were the tax computed on the basis of the information provided in the return, including the false statement or omission.

Interpretation

26(4)       For purposes of subsection (3),

(a) the taxable income in a return to which the subsection applies is deemed to be not less than nil; and

(b)"understatement of income for a year" has the meaning provided by subsection 163(2.1) of the federal Act.

Burden of proof on penalties

26(5)       Where, in an appeal under this Act, a penalty that is assessed by the minister under this section is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the minister.

Collection agreement

26(6)       Where a collection agreement is in effect and a person who is liable to a penalty under this section is also liable to a penalty under section 163 of the federal Act in respect of the same failure or in respect of the same false statement or omission, the minister may refrain from levying or may reduce the penalty to which the person is liable under this section.

Late or deficient instalments

27          Where a person, on or before the day on which an instalment of tax that is payable under this Act for a taxation year is required to be paid under this Act or a provision of the federal Act that applies for the purposes of the Act, fails to pay all or a part of the instalment of tax, the person is liable to a penalty equal to 50% of the amount, if any, by which the interest payable by the person in respect of all instalments for the taxation year under section 161 of the federal Act, as it applies for the purposes of this Act exceeds the greater of

(a)$1000.; and

(b)25% of the interest that would be payable by the person in respect of all instalments for the year under section 161 of the federal Act, as it applies for the purposes of this Act, if no instalment were made for the taxation year.

Subsection 28(1) amended

25          Subsection 28(1) is amended by striking out "Where" and substituting "Subject to section 28.1, where".

Section 28.1 added

26          The following section is added after section 28:

Section 28 does not apply after 1984

28.1(1)     Section 28 does not apply to 1985 and subsequent taxation years.

Federal provisions applicable after 1984

28.1(2)     Subsections 164(1), (1.1), (1.2), (1.3), (1.31), (2), (3), (3.1), (4), (4.1), (5), (5.1), (6) and (7) of the federal Act apply to 1985 and subsequent taxation years for the purposes of this Act.

Refunds based on federal refunds

28.1(3)     In respect of 1985 and subsequent taxation years, where a collection agreement is in effect and by reason of a decision referred to in subsection 164(4.1) of the federal Act a repayment of tax, interest or penalties under the federal Act for a taxation year is made to a taxpayer or security that is accepted under the federal Act for such tax, interest or penalties is surrendered to the taxpayer, subsection 164(4.1) of the federal Act as it applies for the puposes of this Act applies to any overpayment of tax, interest or penalties under this Act for the year that arises by reason of the decision.

Section 29:  repeal and substitution

27          Section 29 is repealed and the following is substituted:

Application of federal provisions (objections)

29          Section 165 of the federal Act applies for the purposes of this Act.

Subsection 30(1): repeal and substitution

28(1)       Subsection 30(1) is repealed and the following is substituted:

Right of appeal

30(1)       A taxpayer who serves a notice of objection to an assessment or re-assessment under subsection 165(1) of the federal Act, as it applies for the purposes of this Act, may,

(a) at any time after the minister confirms the assessment or re-assessment; or

(b) where the minister has not notified the taxpayer that the assessment or re-assessment is vacated or confirmed, not less than 90 days after service of the notice of objection;

appeal to the court to have the assessment or re-assessment vacated or varied but no appeal under this section may be instituted more than 90 days after the day notice that the minister has confirmed the assessment or reassessment is mailed to the taxpayer in accordance with subsection 165(3) of the federal Act as it applies for the purposes of this Act.

Subsection 30(2) amended

28(2)       Subsection 30(2) is amended by striking out "4(17)" wherever it occurs and in each case substituting "4(15)".

Subsections 32(3) and 32(4) repealed

29          Subsections 32(3) and 32(4) are repealed.

Section 33:  repeal and substitution

30          Section 33 is repealed and the following is substituted:

Application of federal provisions (Appeals)

33          Sections 166, 167, and 177, subsection 178(1) and section 179 of the federal Act apply for the purposes of this Act.

Section 35 repealed

31          Section 35 is repealed.

Section 36:  repeal and substitution

32          Section 36 is repealed and the following is substituted:

Application of federal provisions (administration, garnishment and proceedings to collect)

36          Sections 220, 224, 225.1 and 225.2 of the federal Act apply for the purposes of this Act.

Section 39:  repeal and substitution

33          Section 39 is repealed and the following is substituted:

Certificates

39(1)       An amount or part of an amount that is payable under this Act by a person (in this section referred to as a "debtor") and that is not paid may be certified by the minister as an amount payable by the debtor.

Registration in court

39(2)       On production to the court, a certificate made under subsection (1) in respect of a debtor shall be registered in the court and when so registered has the same effect, and all proceedings may be taken thereon, as if the certificate were a judgment obtained in the court against the debtor for a debt in the amount certified plus interest thereon to the day of payment as provided by law and, for the purposes of any such proceedings, the certificate shall be deemed to be a judgment of the court against the debtor for a debt due to Her Majesty in right of the Province of Manitoba enforceable in the amount certified plus interest thereon to the day of payment as provided by law.

Costs

39(3)       All reasonable costs and charges incurred or paid in respect of the registration in the court of a certificate made under subsection (1) or in respect of any proceedings taken to collect an amount certified are recoverable in like manner as if they had been included in the amount certified in the certificate when it was registered.

Section 223 of federal Act

39(4)       Where a collection agreement is in effect, subsections (1) to (3) do not apply but the minister may proceed under section 223 of the federal Act for the purpose of collecting any amount payable under this Act by a taxpayer.

Section 40 repealed

34          Section 40 is repealed.

Section 44:  repeal and substitution

35          Section 44 is repealed and the following is substituted:

Direction to seize chattels

44(1)       Where a person fails to pay an amount that is required by this Act, the minister may give 30 days notice to the person, by registered mail addressed to his or her latest known address, of the intention of the minister to direct that the person's goods and chattels be seized and sold and if the person fails to make the payment before the expiration of the 30 days, the minister may issue a certificate of the failure and direct that the goods and chattels of the person that are located in the province be seized.

Application of federal provisions (seizure)

44(2)       Subsections 225(2), (3), (4) and (5) of the federal Act apply for the purposes of this Act.

Subsection 45(2):  repeal and substitution

36          Subsection 45(2) is repealed and the following is substituted:

Direction to seize chattels

45(2)       Where a person fails to pay tax, interest or penalties that are demanded under this section, the minister may direct that the goods and chattels of the taxpayer that are located in the province be seized and thereupon subsections 225(2), (3), (4) and (5) of the federal Act apply.

Subsections 46(1) to (7): repeal and substitution

37(1)       Subsections 46(1) to (7) are repealed and the following is substituted:

Application of federal provisions (moneys withheld)

46(1)       Subsections 227(1), (2), (3), (4), (5), (8), (8.2), (8.3), (8.4), (8.5), (9), (9.2), (9.4) and (9.5) of the federal Act apply for the purposes of this Act.

Subsection 46(8):  repeal and substitution

37(2)       Subsection 46(8) is repealed and the following is substituted:

Assessment

46(8)       The minister may assess a person

(a) for an amount that is deducted or withheld by the person

(i) under this Act or under a regulation under this Act, or

(ii) under the federal Act, or under a regulation under the federal Act, that applies for purposes of this Act;

(b) for an amount that is payable by the person under subsection 224(4) or (4.1) or subsection 227(8), (8.3), (8.4), (8.5), (9), (9.2), (9.4) or (9.5) of the federal Act, as they apply for the purposes of this Act, or under section 47 or 52;

and where the minister sends a notice of assessment to the person, sections 14 and 22 to 34 are applicable with such modification as the circumstances require.

Subsection 47(1): repeal and substitution

38          Subsection 47(1) is repealed and the following is substituted:

Liability of directors of corporations

47(1)       Where a corporation fails to deduct, withhold or remit an amount as required by subsection 153(1) of the federal Act, as it applies for the purposes of this Act, the directors of the corporation at the material time are jointly and severally liable, together with the corporation, to pay the amount that the corporation failed to deduct, withhold or remit, including any interest applicable in respect of the amount or any penalty imposed on the corporation for not deducting, withholding or remitting the amount.

Subsection 48(2): repeal and substitution

39(1)       Subsection 48(2) is repealed and the following is substituted:

Application

48(2)       Subsections 230(2.1), (3), (4), (5), (6), (7) and (8) of the federal Act apply for the purposes of this Act.

Subsections 48(3) to (7) repealed

39(2)       Subsections 48(3), (4), (5), (6) and (7) are repealed.

Section 49:  repeal and substitution

40          Section 49 is repealed and the following is substituted:

Application of federal provisions (inspections, privilege, information return and corporate execution)

49          Sections 231 to 231.5, 232, 233 and 236 of the federal Act apply for the purposes of this Act.

Sections 50 and 51 repealed

41          Sections 50 and 51 are repealed.

Section 53 repealed

42          Section 53 is repealed.

Section 54:  repeal and substitution

43          Section 54 is repealed and the following is substituted:

Offence and penalty

54(1)       A person who fails

(a) to file a return as required under this Act or a regulation or under a provision of the federal Act or the federal regulations as the provision applies for the purposes of this Act; or

(b) to comply with subsection 153(1), 227(5), 230(3), 230(4) or 230(6) or any of sections 231 to 231.5 and 232 of the federal Act, as any of these provisions applies for the purposes of this Act;

is guilty of an offence and, in addition to a penalty that is otherwise provided, is liable

(c) to a fine of not less than $1000. and not more than $25,000.; or

(d) to both the fine described in clause (c) and imprisonment for a term not exceeding 12 months.

Compliance order

54(2)       Where a person is convicted by a court of an offence under subsection (1) for failure to comply with a provision of this Act or a regulation or a provision of the federal Act or of the federal regulations that applies for the purposes of this Act, the court may make such order as it deems proper in order to enforce compliance with the provision.

Saving provision

54(3)       Where a person is convicted under this section for failure to comply with a provision of this Act or a regulation or a provision of the federal Act or of the federal regulations that applies for the purposes of this Act, the person is not liable to a penalty under subsection 227(8), (8.5), (9) or (9.5) of the federal Act as these subsections apply for the purposes of this Act or under section 25 or 52 for the same failure unless the person is assessed

for the penalty or the penalty is demanded from the person before the information or complaint giving rise to the conviction is laid or made.

Clause 55(a):  repeal and substitution

44(1)       Clause 55(a) is repealed and the following is substituted:

(a) makes or participates in, assents to or acquiesces in the making of, false or deceptive statements in a return, certificate, statement or answer filed or made under this Act or a regulation or under a provision of the federal Act or of the federal regulations that applies for the purposes of this Act;

Section 55 amended

44(2)       Section 55 is amended by striking out "25%" and substituting "50%".

Subsection 57(1):  repeal and substitution

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

Revealing confidential information

57(1)       Where a person, while employed in the administration or enforcement of this Act,

(a) is in possession of information that is obtained by or on behalf of the minister for the purposes of this Act and knowingly communicates the information or knowingly allows the information to be communicated to another person who is not legally entitled to receive the information;

(b) is in possession of or has custody or control of a book, record, writing, return or other document that is obtained by or on behalf of the minister for the purposes of this Act and knowingly allows another person, who is not legally so entitled, to inspect or to have access to the book, record, writing, return or other document; or

(c) is in possession of information that is obtained by or on behalf of the minister for the purposes of this Act and knowingly uses the information other than in the course of the duties of the person in connection with the administration or enforcement of this Act;

the person is guilty of an offence and is liable to a fine not exceeding $5,000. or to imprisonment for a term not exceeding 12 months or to both.

Subsection 60(4):  repeal and substitution

46(1)       Subsection 60(4) is repealed and the following is substituted:

Limitation

60(4)       An information or complaint under The Summary Convictions Act in respect of an offence under this Act, may be laid or made on or before the day that is eight years after the day on which the matter of the information or complaint arises.

Subsection 60(13):  repeal and substitution

46(2)       Subsection 60(13) is repealed and the following is substituted:

Day of mailing

60(13)      For the purposes of this Act, the day of mailing of a notice or notification described in subsection 152(4) of the federal Act as the subsection applies for the purposes of this Act or of a notice of assessment shall be presumed to be the date of the notice or notification.

Day of receiving mailed document

60(13.1)    For the purposes of this Act, anything sent by first class mail or its equivalent shall be deemed to be received by the person to whom it is sent on the day that it is mailed except that a remittance of an amount deducted or withheld as required by this Act or a regulation or by a provision of the federal Act or of the federal regulations that applies for the purposes of this Act shall be deemed to be remitted on the day it is received by the treasurer.

Section 63:  repeal and substitution

47          Section 63 is repealed and the following is substituted:

No action for tax remitted

63          Where a collection agreement is in effect and an amount is remitted to the minister under subsection 153(1) of the federal Act, as it applies for the purposes of this Act, on account of the tax of an individual who is resident on the last day of the taxation year in another agreeing province,

(a) no action lies for recovery of the amount by the individual; and

(b) the amount may not be applied in discharge of a liability of the individual under this Act.

Subsection 65(5): repeal and substitution

48          Subsection 65(5) is repealed and the following is substituted:

No recovery of amounts deducted

65(5)       Where, for a taxation year, an adjusting payment to a non-agreeing province is made under this section in respect of an individual who

(a) is taxable under the federal Act for the taxation year; and

(b) is resident in the non-agreeing province on the last day of the taxation year;

and an amount is deducted or withheld under subsection 153(1) of the federal Act, as it applies for the purposes of this Act, on account of tax payable by the individual for the taxation year, no action lies for recovery of the amount by the individual and the amount may not be applied in discharge of a liability of the individual under this Act.

PART 4

THE MINING TAX ACT

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

49          The Mining Tax Act is amended by this Part.

Subsection 1(1): "special tax"

50(1)       Subsection 1(1) is amended by adding in alphabetical order in the subsection the following definition:

"special tax" means a special tax under section 13.1; («taxe spéciale»)

Subsection 1(1): "tax"

50(2)       The definition of "tax" in subsection 1(1) is repealed and the following is substituted:

"tax" means a tax payable under this Act, other than a special tax; («taxe»)

Section 13.1 added

51          The following section is added after section 13:

Definitions

13.1(1)     In this section, "taxation year", "taxable income" and "gross revenue" mean taxation year, taxable income and gross revenue, respectively, as defined in The Income Tax Act and "income tax" means the tax payable under The Income Tax Act.

Special tax for 1989

13.1(2)     An operator of a mineral processing establishment shall pay to the minister a special tax calculated at the rate of 1.5% of the profits of the operator during the period commencing January 1, 1989 and ending December 31, 1989.

Tax refund

13.1(3)     Where an operator pays

(a) income tax for the 1989 taxation year; and

(b) a special tax;

and the aggregate of the amounts paid under clauses (a) and (b) exceeds

(c) the amount of income tax that would be payable by the operator in respect of the 1989 taxation year if the taxable income of the operator earned in Manitoba were calculated in accordance with Part IV of the Income Tax Regulations made under the Income Tax Act (Canada) with the exception that where the operator sells to a customer a shipment of mineral product produced from mineral mined in Canada and the destination of the shipment is in a country other than Canada, the gross revenue derived from the shipment, and to be attributed to Manitoba under Part IV, be the gross revenue derived from mineral product produced from mineral mined in Manitoba;

and the Provincial Auditor confirms the excess of the aggregate amount paid under clauses (a) and (b) over the amount calculated under clause (c), the minister may refund the excess to the operator in an amount not exceeding the amount paid under clause (b).

Special tax to be treated as tax

13.1(4)     The provisions of this Act in respect of tax under this Act, other than subsection 14(1), apply to a special tax.

Section 14 amended

52          Section 14 is renumbered as subsection 14(1) and the following subsection is added:

Special tax payment by March 25, 1990

14(2)       Where an operator is liable for payment of a special tax, the operator shall pay the special tax on or before March 25, 1990.

Schedule Formula 2 amended

53(1)       Clause (a) of Formula 2 in the Schedule is amended by adding "or disposal" after "sale".

Schedule Formula 4 amended

53(2)       Formula 4 in the Schedule is amended by striking out "amount" where it occurs in the definitions of "M" and "N" and in each case substituting "quantity".

PART 5

THE MOTIVE FUEL TAX ACT

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

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

Clause 2(1)(a) amended

55(1)       Clause 2(1)(a) is amended by striking out "(8),".

Subsection 2(8) repealed

55(2)       Subsection 2(8) is repealed.

Subsection 2(25):  repeal and substitution

55(3)       Subsection 2(25) is repealed and the following is substituted:

Partial refund of tax on reefer fuel

2(25)       Subject to subsection (26), where a purchaser

(a) uses motive fuel solely in the operation of a reefer unit mounted on a truck or trailer that is operated on a highway; and

(b) pays the tax applicable to the motive fuel under subsection (1); and

(c) purchases the motive fuel before September 5, 1989;

the purchaser is entitled to claim a refund of tax under subsection 6(6).

Subsection 2(27) amended

55(4)       Subsection 2(27) is amended by repealing clause (b).

Subsection 2(28) amended

55(5)       Subsection 2(28) is amended

(a) by striking out "(8)";

(b) by striking out "on and after April 1, 1987"; and

(c) by repealing clause (b).

Subsection 2(29) amended

55(6)       Subsection 2(29) is amended by striking out "(8),".

Clause 2(30)(b) repealed

55(7)       Subsection 2(30) is amended by repealing clause (b).

Subsections 3(1) and 3(2) amended

56          Subsections 3(1) and 3(2) are amended by striking out "subsection 2(8) or (9)" and in each case substituting "subsection 2(9)".

Subsections 6(1) to (4) repealed

57          Subsections 6(1), 6(2), 6(3) and 6(4) are repealed.

Subsection 13(2): repeal and substitution

58          Subsection 13(2) is repealed and the following is substituted:

Filing of statement by licensed purchasers

13(2)       For purposes of determining the tax payable by a licensed purchaser under subsection 2(3), the licensed purchaser shall file a statement with the minister at such times, in such form and containing such information as may be prescribed by regulation.

Subsection 22(3) amended

59(1)       Subsection 22(3) is amended by striking out "to which subsection 2(8) does not apply,".

Subsection 22(4) amended

59(2)       Subsection 22(4) is amended by adding "or, in the case of motive fuel or other perishable or dangerous thing, to dispose of it in accordance with subsection 11(7), 11(8) or 11(9)" after "proceedings".

Subsection 30(1):  repeal and substitution

60          Subsection 30(1) is repealed and the following is substituted:

Unauthorized use of motive fuel

30(1)       Where a person purchases motive fuel and

(a) pays a tax under subsection 2(10) or 2(14) and uses the fuel for a purpose other than a purpose applicable under subsection 2(10) or 2(14);

(b) is exempted from tax under subsection 2(9) and uses the fuel for a purpose other than a purpose described in clauses 2(9)(a) to (h) inclusive; or

(c) is exempted from tax under subsection 2(11) or 2(12) and uses the fuel for a purpose other than the purpose applicable under subsection 2(11) or 2(12);

the person is guilty of an offence and is liable,

(d) in the case of a first offence, to a fine of not less than $250. and not more than $375.; and

(e) in the case of a second or subsequent offence, to a fine of not less than $500. and not more than $750. or to imprisonment for a term not exceeding three months or to both.

Subsection 32(1):  repeal and substitution

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

False information offence

32(1)       Where the minister requests information from a person for purposes of section 6 and the person makes a misrepresentation of fact or gives false information to the minister, the person is guilty of an offence and liable,

(a) in the case of a first offence, to a fine of not less than $250.; and

(b) in the case of a second or subsequent offence, to a fine of not less than $500. or to imprisonment for a term not exceeding three months or to both.

Clause 38(o): repeal and substitution

62          Clause 38(o) is repealed and the following is substituted:

(o) prescribing the form of reports, returns or statements to be made or filed under this Act and the information to be provided in such returns, reports or statements;

PART 6

THE RETAIL SALES TAX ACT

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

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

Subsection 1(1): "designated land"

64(1)       Subsection 1(1) is amended by adding the following definition after the definition of "designated item":

"designated land" means land or an interest in land with respect to which legal title is vested in Her Majesty in right of Canada and the band of Indians for whose benefit the land is set apart for use as a reserve has, otherwise than absolutely, released or surrendered its rights or interests; («bien-fonds désigné»)

Subsection 1(1): "reserve"

64(2)       The definition of "reserve" in subsection 1(1) is amended by adding "and includes designated land" after "band of Indians".

Subsection 2(11) amended

65          Subsection 2(11) is amended by striking out "and manufactured in Canada" wherever it occurs in the subsection.

Subsection 4(5) added

66          Section 4 is amended by adding the following subsection after subsection 4(4):

Telephone service exemption

4(5)        Notwithstanding section 2 or subsection (1), no tax is payable on an amount charged to an Indian for telephone services in respect of a telephone situated on a reserve where the amount charged relates to a telecommunication service that originates or terminates on the reserve.

PART 7

THE REVENUE ACT

C.C.S.M. R150 amended

67          The Revenue Act is amended by this Part.

Subsection 33(1) amended

68          Subsection 33(1) is amended by adding the following definitions after the definition of "collector":

"FMV" and "fair market value" mean fair market value, at the time a transfer is tendered for registration, of the land as a whole with respect to which the transfer is tendered for registration; («JVM» et «juste valeur marchande»)

"fractional interest in land" means a legal interest, an equitable interest or a beneficial interest in land that is a part, share, portion or fraction of a whole legal, equitable or beneficial interest in the land; («intérêt fractionné dans un bien-fonds»)

"land as a whole" means, in relation to a transfer, the entire piece or parcel of land to which the transfer relates, including all buildings or improvements situated on the piece or parcel of land and does not include a fractional interest in land. («bien-fonds global»)

Subsection 34(1) amended

69(1)       Subsection 34(1) is amended

(a) by adding "subsections (1.1) and (1.2) and" after "Subject to"; and

(b) by striking out the words that follow the formula.

Subsections 34(1.1) and 34(1.2) added

69(2)       Section 34 is amended by adding the following subsections after subsection (1):

Calculation of nil value

34(1.1)     For purposes of subsection (1), where a calculation results in a negative value, the calculation is deemed to result in a nil value.

Transfer of fractional interests

34(1.2)     Where a fractional interest in land is transferred, the transferee shall pay tax under this Part in an amount that bears the same proportion to the tax payable upon a transfer of the land as a whole, calculated in accordance with the formula in subsection (1), as the fractional interest in the land bears to a whole interest in the land.

Subsection 37(1) amended

70          Subsection 37(1) is amended by striking out "the land being transferred" and substituting "the land as a whole with respect to which the transfer is tendered for registration".

Subsection 38(3) amended

71          Subsection 38(3) is amended

(a) by adding "of the land as a whole with respect to which the transfer is tendered for registration" after "fair market value"; and

(b) by striking out "protest" where it occurs after "person" and substituting "protesting".

Subsection 39(1) amended

72(1)       Subsection 39(1) is amended by adding "of the land as a whole with respect to which the transfer is tendered for registration" after "fair market value".

Subsection 39(3) amended

72(2)       Subsection 39(3) is amended by adding "under subsection (1)" after "minister".

Subsection 40(2) amended

73          Subsection 40(2) is amended by adding "of the land as a whole with respect to which the transfer is tendered for registration" after "fair market value".

Part IV added

74          The following is added as Part IV:

PART IV

ENVIRONMENTAL PROTECTION TAX

Definitions

45          In this Part,

"beer" means beer as defined in The Liquor Control Act; («bière»)

"collector" means a person appointed as a collector under subsection 47(1), but does not include a deputy collector; («collecteur»)

"dealer" means any person who in the province sells liquor or offers or keeps liquor for sale by retail; («marchand»)

"deposit" means an amount of money that is paid to a dealer by a purchaser as security for the return of the container in which the liquor is sold and that is refundable to the purchaser upon surrender of the container to the dealer or an authorized agent; («dépôt»)

"deputy collector" means a person duly appointed by a collector under subsection 47(2), or deemed to have been appointed by a collector under subsection 47(3); («collecteur adjoint»)

"liquor" means liquor as defined in The Liquor Control Act; («boisson alcoolisée»)

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

"tax" means the tax imposed under section 46. («taxe»)

Environmental Protection Tax

46(1)       Every purchaser of liquor in its original bottle, original can or other original container shall, where no deposit is payable at the time of purchase in respect of such container, pay to Her Majesty in right of Manitoba for the public use of the government a tax, in recognition of the cost of protecting the environment against damage or deterioration caused by the disposal of bottles, cans and other containers in which liquor is sold,

(a) with respect to

(i) liquor sold in cans, and

(ii) liquor, other than beer, sold in containers, other than cans, with a content capacity of less than 750 millilitres,

at the rate of 5¢ for each can or other container, as the case may be;

(b) with respect to

(i) beer sold in containers, other than cans, and

(ii) liquor, other than beer, sold in containers, other than cans, with a content capacity of 750 millilitres or more,

at the rate of 10¢ for each container.

Exception

46(2)       Subsection (1) does not apply to a person who acquires liquor in its original closed bottle, original closed can or other original closed container for resale in that container whether that container is open or closed at the time of resale.

Collectors

47(1)       The minister may appoint any person to be a collector of the tax payable under this Part and may enter into agreements with collectors with respect to the collection of the tax.

Deputy collectors

47(2)       A collector may, with the approval of the minister, appoint deputy collectors and shall forthwith notify the minister in writing of the name and address of any person so appointed.

Dealers deemed to be deputy collectors

47(3)       Except where the dealer is a collector appointed under subsection (1), every dealer to whom liquor is sold or delivered by a collector is deemed to have been appointed a deputy collector by the collector who makes the sale or delivery, and shall carry out and perform the duties imposed on a deputy collector under this Part.

Duty of collectors

47(4)       Every collector shall collect the tax, or cause it to be collected, from each purchaser who purchases liquor in respect of which the tax is payable from the collector or from a dealer who is a deputy collector appointed or deemed to have been appointed by the collector.

Duty of deputy collectors

47(5)       Every dealer who is also a deputy collector, from whom liquor is purchased in respect of which the tax is payable, shall collect the tax from the purchaser thereof.

Remission of proceeds

47(6)       A deputy collector who collects the tax from a purchaser as provided in subsection (5) shall, in the manner and at the times agreed by the collector and the deputy collector, remit to that collector the moneys collected as proceeds of the tax.

Remission of tax by collectors

47(7)       Every collector shall remit to the minister all moneys received by the collector under this section from purchasers or through deputy collectors as proceeds of the tax, and the remittance shall be accompanied by a return in the form and containing the information prescribed by the minister.

Agents of Crown

47(8)       Every collector and every deputy collector is an agent of Her Majesty for the purposes of the collection of the tax and the remission of the moneys collected as proceeds of the tax.

Revenue officers

47(9)       Every collector and every deputy collector is, for the purposes of collecting and remitting the tax but not otherwise, a revenue officer within the meaning of The Financial Administration Act, and is subject to the duties and liabilities of a revenue officer under that Act.

Regulations

48          The Lieutenant Governor in Council may make regulations respecting any matter considered necessary or advisable by the Lieutenant Governor in Council to carry out effectively the intent and purpose of this Part.

PART 8

THE TOBACCO TAX ACT

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

75          The Tobacco Tax Act is amended by this Part.

Section 1: definitions

76          Section 1 is amended

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

"cigarette" includes a preportioned stick; («cigarette»)

"preportioned stick" means a roll of tobacco that is encased in material other than tobacco leaf and where the roll of tobacco exceeds 90 millimeters in length, each 60 millimeter length or part thereof is deemed to be a separate preportioned stick; («bâtonnet mesuré») and

(b) by repealing the definition of "tobacco" and substituting the following:

"tobacco" or "tobacco product" means tobacco in any form in which tobacco is consumed and includes snuff. («tabac» ou «produit du tabac»)

Clause 2(1)(a) amended

77(1)       Clause 2(1)(a) is amended by striking out "5.5¢" and substituting "6.5¢".

Clause 2(1)(q) amended

77(2)       Clause 2(1)(q) is amended by striking out "26¢" and substituting "61¢".

Clause 2(1)(r) amended

77(3)       Clause 2(1)(r) is amended by striking out "1.9¢" and substituting "4.3¢".

Subsection 9(2) amended

78(1)       Subsection 9(2) is amended by striking out "A person" and substituting "Subject to subsections (3.3) and (3.4), a person".

Subsection 9(3) amended

78(2)       Subsection 9(3) is amended by striking out "A person" and substituting "Subject to subsections (3.3) and (3.4), a person".

Subsection 9(3.1) amended

78(3)       Subsection 9(3.1) is amended by striking out "No person" and substituting "Subject to subsections (3.3) and (3.4), no person".

Subsecs. 9(3.2), 9(3.3), 9(3.4) and 9(3.5) added

78(4)       Section 9 is amended by adding the following subsections after subsection (3.1):

"Marked product"

9(3.2)      In subsections (3.3), (3.4) and (3.5), "marked product" means tobacco or tobacco product that, for the tax purposes of a jurisdiction other than Manitoba, is endorsed or marked, whether on the tobacco or tobacco product or on the packaging or wrapping in which the tobacco or tobacco product is contained, to permit sale of the tobacco or tobacco product in the other jurisdiction or for export out of Canada.

Marked product sales prohibited

9(3.3)      No person shall sell marked product in the province or offer marked product for sale in the province.

Marked product possession prohibited

9(3.4)      Subject to subsection (3.5), no person shall possess

(a) more than 200 cigarettes that are marked product; or

(b) more than 50 cigars or 900 grams of tobacco products other than cigarettes or cigars, that are marked product for export out of Canada.

Marked product possession exemption

9(3.5)      Where a person is authorized to collect tobacco taxes for a jurisdiction, other than Manitoba, that requires the marking of tobacco or tobacco products for tax purposes and the person is a collector under this Act, the person may possess marked product for the purpose of selling the marked product in the other jurisdiction.

Subsections 9(5), 9(7), 9(8) and 9(9) amended

78(5)        Subsections 9(5), 9(7), 9(8) and 9(9) are amended by striking out "or (3.1)" in each subsection and in each case substituting ", (3.1), (3.3) or (3.4)".

Subsection 20(2) amended

79          Subsection 20(2) is amended by adding "or, in the case of tobacco or other perishable thing, dispose of it in accordance with subsection 9(6), 9(7) or 9(8)" after "proceedings".

Subsection 26(2):  repeal and substitution

80          Subsection 26(2) is repealed and the following is substituted:

Penalties:  subsections 9(2), (3.1), (3.3), (3.4)

26(2)       Subject to subsections (2.2) and (2.3), where a person is found guilty of an offence under subsection 9(2), 9(3.1), 9(3.3) or 9(3.4), the person is liable,

(a) in the case of a first offence, to a fine of not less than $100. and not more than $2,000. or to imprisonment for a term not exceeding three months or to both;

(b) in the case of a second or subsequent offence, to a fine of not less than $1,000. and not more than $10,000. or to imprisonment for a term not exceeding 12 months or to both.

Justice may order confiscation

26(2.1)     Where a person is found guilty of an offence under subsections 9(2), 9(3.1), 9(3.3) or 9(3.4), the justice may, in addition to imposing a penalty under subsection (2), order the confiscation of the tobacco or tobacco product that is seized in connection with the offence.

Double tax penalty

26(2.2)     Where a confiscation order is not made under subsection (2.1), the justice shall order the person to pay to the Minister of Finance an amount equal to double the tax otherwise payable under section 2 in respect of the tobacco or tobacco product.

Double tax as alternative

26(2.3)     Where a confiscation order is made under subsection (2.1), the justice may, as an alternative penalty to a penalty otherwise applicable under clause (2)(a) or (b), order the person to pay the double tax under subsection (2.2).

Satisfaction of tax liability

26(2.4)     Upon payment of amounts payable in satisfaction of a fine imposed under subsection (2) or a double tax imposed under subsection (2.2) or (2.3) or both, as the case may be, the tax otherwise payable in respect of the tobacco product that is the subject of the offence for which the fine or penalty is imposed is deemed to be paid and satisfied.

PART 9

COMING INTO FORCE

Part 1:  The Gasoline Tax Act

81(1)       Subject to subsections (2) and (3), Part 1 comes into force on the day this Act receives the royal assent.

Subsections 3(2) and 3(3) and section 4

81(2)       Subsections 3(2) and 3(3) and section 4 are retroactive and upon this Act receiving the royal assent are deemed to have come into force on January 1, 1989.

Section 2 and subsections 3(1) and 3(4)

81(3)       Section 2 and subsections 3(1) and 3(4) are retroactive and upon this Act receiving the royal assent are deemed to have come into force on September 5, 1989.

Part 2:  The Health and Post Secondary Education Tax Levy Act

82          Part 2 comes into force on January 1, 1990.

Part 3:  The Income Tax Act

83(1)       Subject to subsections (2), (3), (4), (5), (6), (7), (8) and (9), Part 3 comes into force on a day to be fixed by proclamation.

Section 12

83(2)       Section 12 comes into force on the day this Act receives the royal assent.

Sections 13, 14 and 15

83(3)       Subject to subsections (4), (5) and (6), sections 13, 14 and 15 are retroactive and upon this Act receiving the royal assent are deemed to have come into force on January 1, 1989.

Subsections 15(2), 15(6) and 15(7)

83(4)       Subsections 15(2), 15(6) and 15(7) come into force on the day this Act receives the royal assent.

Subsections 15(4) and 16(1)

83(5)       Subsections 15(4) and 16(1) are retroactive and upon this Act receiving the royal assent is deemed to have come into force on January 1, 1988.

Subsection 15(5)

83(6)       Subsection 15(5) is retroactive and upon this Act receiving the royal assent is deemed to have come into force on January 1, 1987.

Section 17

83(7)       Section 17 is retroactive and upon this Act receiving the royal assent is deemed to have come into force on August 8, 1988.

Section 23

83(8)       Section 23 is retroactive and upon this Act receiving the royal assent is deemed to have come into force on October 29, 1985.

Section 24

83(9)       Section 24 is retroactive and upon this Act receiving the royal assent is deemed to have come into force on September 13, 1988.

Part 4:  The Mining Tax Act

84(1)       Subject to subsections (2) and (3), Part 4 comes into force on the day this Act receives the royal assent.

Sections 50, 51 and 52

84(2)       Sections 50, 51 and 52 are retroactive and upon this Act receiving the royal assent are deemed to have come into force on January 1, 1989.

Section 53

84(3)       Section 53 comes into force on January 1, 1990.

Part 5:  The Motive Fuel Tax Act

85(1)       Subject to subsection (2), Part 5 is retroactive and upon this Act receiving the royal assent is deemed to have come into force on September 5, 1989.

Section 58, subsection 59(2), section 62

85(2)       Section 58, subsection 59(2) and section 62 come into force on the day this Act receives the royal assent.

Part 6:  The Retail Sales Tax Act

86(1)       Section 63 comes into effect on the day this Act receives the royal assent.

Sections 64 and 66

86(2)       Sections 64 and 66 are retroactive and upon this Act receiving the royal assent are deemed to have come into effect on July 1, 1989.

Section 65

86(3)       Section 65 is retroactive and upon this Act receiving the royal assent is deemed to have come into force on August 1, 1989.

Part 7:  The Revenue Act

87(1)       Subject to subsections (2) and (3), Part 7 comes into force on a day to be fixed by proclamation.

Retroactive on fractional interest transfers

87(2)       With respect to a transfer of a fractional interest in land, Part 7 is retroactive and upon this Act receiving the royal assent is deemed to have come into force on February 16, 1989.

Section 74

87(3)       Section 74 is retroactive and upon this Act receiving the royal assent is deemed to have come into force on August 1, 1989.

Part 8:  The Tobacco Tax Act

88(1)       Subject to subsection (2), Part 8 comes into force on the day this Act receives the royal assent.

Sections 76 and 77

88(2)       Sections 76 and 77 are retroactive and upon this Act receiving the royal assent are deemed to have come into force on July 10, 1989.

Part 9: Coming into force

89          Part 9 comes into force on the day this Act receives the royal assent.