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The Mineral Exploration Incentive Program Act

S.M. 1991-92, c. 45

Bill 71, 2nd Session, 35th Legislature

The Mineral Exploration Incentive Program Act

(Assented to July 26, 1991)

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

DEFINITIONS

Definitions

1           In this Act,

"beneficiary", in relation to an entitlement to or application for an incentive, means a person prescribed as a beneficiary for the purposes of this Act or any provision of this Act; («ayant droit»)

"flow-through share" means a "flow-through share" as defined in clause 66(15)(d.1) of the Income Tax Act (Canada), without reference to the expression "(other than a prescribed share)"; («action accréditive»)

"incentive" means a payment authorized under the regulations; («subvention »)

"Manitoba exploration expense" means a "Canadian exploration expense" as defined in clause 66.1(6)(a) of the Income Tax Act (Canada) that is incurred in Manitoba, but does not include a prescribed expense; («frais d'exploration au Manitoba»)

"Manitoba exploration investment corporation" means a corporation prescribed, or determined in accordance with prescribed rules, as being a Manitoba exploration investment corporation; («corporation manitobaine de placement dans l'exploration»)

"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; («ministre»)

"prescribed" means prescribed by the regulations.

Establishment of program

2(1)        The Lieutenant Governor in Council may make regulations

(a) respecting the establishment and operation of a program for the provision of incentives to individuals who

(i) are entitled to an income tax deduction in respect of Manitoba exploration expenses incurred by a partnership; or

(ii) through a Manitoba exploration investment corporation, are holders of flow-through shares issued by a junior exploration corporation in respect of Manitoba exploration expenses incurred by it;

(b) prescribing any matter or thing that by this Act may be prescribed;

(c) defining a word or expression used but not defined in this Act; and

(d) respecting any matter the Lieutenant Governor in Council considers necessary or advisable to carry out the intent and purpose of this Act.

Powers of minister

2(2)        Despite anything in the Act or the regulations, the minister may

(a) where he or she is of the opinion that it is in the public interest, disapprove any application by a partnership or a Manitoba exploration investment corporation under a program established pursuant to subsection (1); or

(b) refuse to pay an incentive if sufficient proof is not provided that Manitoba exploration expenses have been incurred in respect of that incentive.

INFORMATION AND RECORDS

Information and documentation

3           A beneficiary shall, within such reasonable time as is stipulated in a request, submit such information and documentation as the minister may require in order to enable the minister to determine whether the beneficiary is entitled to an incentive.

Documents, records and books

4           A beneficiary shall

(a) keep documents, records and books of account, at the beneficiary's principal place of business in Manitoba or at another place of business in Manitoba authorized by the minister, as relate to that beneficiary in a form and containing such information as will enable the minister to determine whether the beneficiary is entitled to an incentive; and

(b) unless otherwise authorized by the minister, retain at the beneficiary's principal place of business in Manitoba or at another place of business in Manitoba authorized by the minister the documents, records and books of account until the expiration of six years from the day the minister receives the application for the incentive to which the document, record or book of account relates.

DISENTITLEMENT

Withholding payment

5           Where a beneficiary in relation to an incentive has contravened any provision of this Act or the regulations, the minister may withhold in whole or in part, or may refuse to pay, that incentive.

Recovery of incentive

6           If a beneficiary receives an incentive to which that beneficiary is not entitled or in excess of that to which the beneficiary is entitled,

(a) the beneficiary shall without delay return the amount or the excess amount to the minister; and

(b) the amount or the excess amount, and interest determined in accordance with the regulations, is a debt due to Her Majesty in right of Manitoba and may be recovered in any court of competent jurisdiction or in the manner provided by The Financial Administration Act.

Reduced incentives

7(1)        Despite anything in this Act, where the minister is of the opinion that a beneficiary has done any act or thing that lacks any substantial business purpose other than to increase the amount of an incentive or that improperly, unduly or artificially increases the amount of the incentive that would otherwise be paid, the minister may

(a) where the incentive has not been paid, refuse to pay it or reduce it by an amount the minister considers appropriate; or

(b) where the incentive has been paid, notify the beneficiary in receipt of the incentive in writing that the beneficiary was not entitled to it or that its amount is reduced by the sum specified in the notice as the minister considers appropriate.

Recovery

7(2)        Where under clause (1)(b) the minister notifies a beneficiary that the beneficiary is not entitled to the incentive or that its amount is reduced by the sum specified, the incentive or the sum specified, and interest determined in accordance with the regulations, is a debt due to Her Majesty in right of Manitoba and may be recovered, whether or not it was received on behalf of another, in any court of competent jurisdiction or in the manner provided by The Financial Administration Act.

CONFIDENTIALITY OF INFORMATION

Information confidential

8(1)        Except as provided in subsections (3), (4), (5) and (6), information or documentation obtained by the minister or by an employee or agent of the minister is confidential and no person who obtains information or documentation under this Act shall knowingly disclose it or knowingly allow it to be disclosed to any person not legally entitled to it.

Evidence in legal proceedings

8(2)        Despite any other Act or law, but subject to clause (3)(b), no person who obtains information or documentation under this Act shall be required in any legal proceedings to give evidence relating to, or to produce documents containing, such information or documentation.

Exceptions

8(3)        Information or documentation obtained under this Act may be disclosed

(a) with the consent of the person from whom it was obtained; or

(b) for the purposes of the administration or enforcement of this Act or legal proceedings related thereto.

Permitted disclosures

8(4)        The minister may disclose information and documentation obtained under this Act to

(a) the Minister of Finance for the purposes of evaluating and formulating fiscal policy with respect to mineral resources;

(b) the Minister of National Revenue of Canada; or

(c) The Manitoba Securities Commission.

Disclosure of names of recipients and amount

8(5)        The name of the recipient of an incentive and the aggregate of the incentives received by the recipient may be disclosed by the minister.

Disclosure of reports etc.

8(6)        The minister may disclose any technical reports, maps, plans or other information obtained by the minister at such time, not less than two years after the making of an application for an incentive, as may be prescribed by regulation.

INSPECTION

Inspectors

9(1)        The minister may appoint any person as an inspector for the purposes of this Act.

Certificate to be furnished

9(2)        The minister shall furnish an inspector with a certificate of appointment.

Certificate to be produced

9(3)        An inspector exercising a power under this Act shall, on request, produce his or her certificate of appointment.

Powers of inspectors

10(1)       An inspector may

(a) at any reasonable time enter any place where the inspector believes on reasonable grounds that any documents, records, books of account or things relevant to the enforcement of this Act or the regulations are located;

(b) examine or audit any documents, records or books of account or examine any things found in the place; and

(c) after giving a receipt for them, remove from the place any documents, records or books of account for the purpose of making copies or extracts.

Warrant to enter

10(2)       Where a justice is satisfied by information on oath that there are reasonable grounds to believe that it is necessary to enter a place for the enforcement of this Act or the regulations, and that

(a) a reasonable, unsuccessful effort to enter the place has been made; or

(b) there are reasonable grounds to believe that entry would be denied without a warrant;

the justice may, on application without notice, issue a warrant authorizing an inspector, with such peace officers as are required to assist, to enter the place, to take any action that an inspector may take under this Act and to use such force as may be necessary.

Assistance to inspectors

10(3)       The person in charge of a place referred to in subsection (1) and any person found in that place shall

(a) give the inspector all reasonable assistance to enable the inspector to carry out his or her functions under this Act; and

(b) furnish the inspector with any information he or she may reasonably require for the enforcement of the Act or the regulations.

Obstruction of inspectors

10(4)       No person shall obstruct an inspector in the carrying out of his or her functions under this Act.

ADVISORY COMMITTEE

Advisory committee

11          The minister may appoint an advisory committee to advise him or her on any matters relating to this Act.

OFFENCES

Failure to comply

12(1)       Every person is guilty of an offence who

(a) contravenes this Act or the regulations; or

(b) under this Act submits any information or documentation, makes any statement or answers any question, whether in connection with an application or otherwise, knowing that the information, documentation, statement or answer is false or misleading or misrepresents or fails to disclose a material fact.

Director or officer of corporation

12(2)       If a corporation commits an offence under this Act, a director or officer of the corporation who authorized, permitted or acquiesced in the commission of the offence is a party to and is guilty of an offence and is liable on summary conviction to the penalty provided in subsection (3) whether or not the corporation has been prosecuted or convicted.

Penalty for individuals

12(3)       An individual who is convicted of an offence under this Act is liable to a fine of not more than $250,000. or to imprisonment for a term not exceeding one year, or to both.

Penalty for corporations

12(4)       A corporation that is convicted of an offence under this Act is liable to a fine of not more than $250,000.

Limitation

12(5)       Proceedings in respect of an offence under this Act may not be instituted more than three years after the commission of the offence.

COMING INTO FORCE

C.C.S.M. reference

13          This Act may be cited as The Mineral Exploration Incentive Program Act and referred to as chapter M145 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

14          This Act comes into force on a day fixed by proclamation.