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The Manitoba Employee Ownership Fund Corporation Amendment and Income Tax Amendment Act

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If you need an official copy, contact Statutory Publications.

S.M. 1994, c. 27

The Manitoba Employee Ownership Fund Corporation Amendment and Income Tax Amendment Act

(Assented to July 5, 1994)

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

PART 1

THE MANITOBA EMPLOYEE OWNERSHIP FUND CORPORATION ACT

C.C.S.M. c. E95 amended

1           The Manitoba Employee Ownership Fund Corporation Act is amended by this Part.

2(1)        Clause 15(2)(b) is repealed and the following is substituted:

(b) if, despite the existence of a published market value for particular investment assets of the Fund,

(i) in the opinion of the Board such investment assets could not readily be disposed of through such market at the valuation date, the Board may adjust the value of those assets to reflect the amount which would likely be realized from their sale, or

(ii) it was the intention of the Board at the time such assets were acquired to hold them as a fixed income security until maturity, the Board may value those assets at cost, adjusted to reflect the amortized portion of the discount or premium, as the case may be;

2(2)        Subsection 15(6) is amended

(a) by striking out "material change" wherever it occurs and substituting "change"; and

(b) by striking out "an effect" and substituting "a material effect".

2(3)        Subsection 15(7) is amended by striking out "prepare a report stating his or her opinion as to the value of the Class "A" Common Shares at such valuation date" and substituting "prepare a report stating his or her opinion as to the manner in which the value of the Class "A" Common Shares should be calculated by the accountants to the Fund at such valuation date".

2(4)        Subsection 15(8) is repealed and the following is substituted:

Exception

15(8)        If on any valuation date the Board determines that since the preceding valuation date there has been no change in the assets or liabilities of the Fund which could have a material effect upon the manner of calculating the value of the Class "A" Common Shares of the Fund, the Board may dispense with the report as to the manner in which the value of the Class "A" Common Shares should be calculated, and, when it does so, the calculation determining the value of the Class "A" Common Shares shall be done by the accountants to the Fund in accordance with the last report prepared by the person qualified to make an evaluation of the Fund.

3(1)        Clause 6(1)(c) of the Schedule is amended by striking out "original" wherever it occurs .

3(2)        Subsection 6(7) of the Schedule is amended by striking out "was retired or".

4           Subsection 7(1) of the Schedule is amended by striking out "5(1)(g)" and substituting "5(1)(f)".

PART 2

THE INCOME TAX ACT

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

5           The Income Tax Act is amended by this Part.

6(1)        Subsection 11.1(1) is amended

(a) in the definition "approved share", by striking out "acquired by an individual where the individual" and substituting "acquired by an individual or by a qualifying trust for the individual in respect of the share where the individual or the qualifying trust, as the case may be,";

(b) in the definition "labour-sponsored funds tax credit", in the part preceding clause (a), by adding "or by a qualifying trust for the taxpayer in respect of the share" after "irrevocably subscribed and paid for by the taxpayer";

(c) in the definition "net cost",

(i) in the part preceding clause (a), by adding ", or to a qualifying trust for the individual in respect of an approved share," before "means the amount", and

(ii) in clause (a), by adding "or the qualifying trust" after "individual"; and

(d) by adding the following definition in alphabetical order:

"qualifying trust" for an individual in respect of an approved share means a trust governed by a retirement savings plan registered under paragraph 146(1)(i) of the Income Tax Act (Canada) where

(a) the individual makes contributions to that trust and those contributions (and no other funds) can reasonably be considered to have been used by the trust to acquire or subscribe for the share, and

(b) the annuitant under the plan is the individual or a spouse of the individual. (« fiducie admissible »)

6(2)        Subsection 11.1(5) is amended in the part preceding clause (a) by adding "and a qualifying trust for the taxpayer" after "by a taxpayer".

PART 3

COMING INTO FORCE

Coming into force

7           This Act comes into force on the day it receives royal assent.