Skip to main content
The Statute Law Amendment (Taxation) Act, 1995

This is an unofficial version.
If you need an official copy, contact Statutory Publications.

S.M. 1995, c. 30

The Statute Law Amendment (Taxation) Act, 1995

(Assented to November 3, 1995)

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.

2           Subsection 2(23.1) is repealed and the following is substituted:

Exemption re cargo aircraft for international flights

2(23.1)     A purchaser of aircraft gasoline delivered directly into the fuel tanks of an aircraft that is configured solely for hauling cargo may purchase aircraft gasoline exempt from the tax imposed by clause (23)(b) if

(a) the aircraft has arrived on a non-stop flight from, or will depart on a non-stop flight to, a place outside Canada and the 48 contiguous states in the United States; and

(b) the aircraft carries on the flight cargo for which shipping charges are charged to the shipper or the shipper's agent.

Exemption re mixed cargo and passenger aircraft for international flights

2(23.2)     A purchaser of aircraft gasoline delivered directly into the fuel tanks of an aircraft may purchase the portion of the gasoline determined under subsection (23.3) exempt from the tax imposed by clause (23)(b) if

(a) the aircraft has arrived on a non-stop flight from, or will depart on a non-stop flight to, a place in Europe, Asia or South America; and

(b) the aircraft carries on the flight passengers by or for whom a fare is paid and cargo for which shipping charges are charged to the shipper or the shipper's agent.

Determination of exempt portion

2(23.3)     The portion of the aircraft gasoline that is exempt from tax under subsection (23.2) shall be determined in accordance with the following formula:

A = B x C/D

In this formula,

A

is the number of litres of aircraft gasoline exempt from tax under subsection (23.2);

B

is the total number of litres of aircraft gasoline purchased;

C

is the weight in kilograms of cargo on arrival or departure of the aircraft, whichever is the greater;

D

is the weight in kilograms of the cargo and the passengers and their baggage on arrival if the weight on arrival is used in C or on departure if the weight on departure is used in C.

PART 2

THE HEALTH AND POST SECONDARY EDUCATION TAX LEVY ACT

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

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

4           Section 3.2 is amended by striking out "no tax is"  and substituting "the employer is exempt as provided in the regulations from the tax".

5           Clause 38(1)(e) is amended

(a) by adding "or the exemption from tax referred to in section 3.2" after "section 3.1"; and

(b) by striking out "that section" and substituting "those sections".

PART 3

THE INCOME TAX ACT

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

6           The Income Tax Act is amended by this Part.

7           Clause 4(20)(b) is amended by striking out "clause 132(4)(b)(i)(B)" and substituting "paragraph (b) of the description of A in the definition "refundable capital gains tax on hand" in subsection 132(4)".

8           The following is added after subsection 4(20.3):

Mutual fund trust net income tax credit for 1987

4(20.4)     For the 1987 taxation year, there may be deducted from the tax otherwise payable under this Act by a mutual fund trust an amount not exceeding the least of

(a) the amount, if any, by which the tax otherwise payable under subsection (9) by the trust for the year exceeds the amount, if any, refundable to the trust under subsection (20.2) for the year;

(b) 1% of the amount included under paragraph 82(1)(b) of the federal Act in computing the trust's income for the year; and

(c) the amount, if any, by which the amount deductible under section 121 of the federal Act in computing the trust's federal tax payable for the year exceeds the amount that would, if no amount were deductible under that section, be its federal tax payable for the year.

Mutual fund trust net income tax credit for 1988 and later

4(20.5)     For the 1988 and subsequent taxation years, there may be deducted from the tax otherwise payable under this Act by a mutual fund trust an amount not exceeding the least of

(a) the amount, if any, by which the total of the amounts otherwise payable under subsections (11) and (12) by the trust for the year exceeds the amount, if any, refundable to the trust under subsection (20.3) for the year;

(b) 4% of the amount included under paragraph 82(1)(b) of the federal Act in computing the trust's income for the year; and

(c) the amount, if any, by which the amount deductible under section 121 of the federal Act in computing the trust's federal tax payable for the year exceeds the amount that would, if no amount were deductible under that section, be its federal tax payable for the year.

9           Subsection 7.2(2) is amended by striking out "1995" in the definition "qualified property" and substituting "1996".

10          The definition "eligible expenditure" in subsection 7.3(1) is repealed and the following is substituted:

"eligible expenditure" means an expenditure that

(a) was made after March 11, 1992 by a corporation with a permanent establishment in Manitoba in respect of scientific research and experimental development carried out in Manitoba, and

(b) would, if the definition "qualified expenditure" in subsection 127(9) of the federal Act were read without reference to paragraph (b) thereof, be a qualified expenditure for the purposes of subsections 127(9) and (11.1) of that Act,

and, for taxation years that end after December 2, 1992,  includes the portion of the corporation's prescribed proxy amount (as determined under the federal regulations for the purposes of the definition "qualified expenditure" in subsection 127(9) of the federal Act) that can reasonably be considered to relate to scientific research and experimental development carried out in Manitoba; (« dépense admissible »)

PART 4

THE MINING TAX ACT

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

11          The Mining Tax Act is amended by this Part.

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

"commission" means the Tax Appeals Commission established under section 2 of The Tax Appeals Commission Act; (« Commission »)

13          The following provisions are amended by adding "31.1," before "32 and 33":

(a) subsection 5(1);

(b) subsection 5(2); and

(c) section 8.

14          Subsection 30(6) is amended

(a) by adding "under section 31.1 or appeals the decision of the commission" after "the amount of an assessment or reassessment"; and

(b) by adding "the commission," after "a final conclusion by".

15(1)       The following provisions of section 31 are amended by adding "31.1," before "32":

(a) subsection (1), in the part following clause (d);

(b) subsection (4); and

(c) subsection (7), in the part following clause (d).

15(2)       Clause 31(9)(b) is amended by striking out "or reassessment".

15(3)       Subsection 31(11) is amended by adding "31.1," before "32 or 33".

16          The following is added after section 31:

Notice of objection to commission

31.1(1)     Where an operator disputes the amount of an assessment or reassessment made under section 31, the operator may, directly or by his or her agent, within 90 days after the date on which the notice of assessment or reassessment, as the case may be, is mailed or served in accordance with subsection 31(2) or 31(8), appeal the assessment or reassessment by serving on the commission and the director a notice of objection in writing setting forth clearly the reasons for the objection and any facts relative thereto.

Consideration of appeal by commission

31.1(2)     Upon receipt of a notice of objection, the commission shall make an investigation and inquiry in accordance with The Tax Appeals Commission Act and shall affirm, rescind or amend the assessment or reassessment including any finding made or allowance allowed by the director in arriving at the amount of the assessment or reassessment and shall forthwith serve notice of its decision on the operator, the director and the minister.

Transition

31.1(3)     This section applies to an assessment or reassessment under section 31 from which, on the coming into force of this section, an appeal exists but has not been taken, to the same extent as if this section had been in force when the assessment or reassessment was made.

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

Appeal from commission to minister

32(1)       The operator, his or her agent or the director may, within 60 days after receipt of the notice of the decision of the commission, appeal the decision to the minister by serving a notice of appeal on any other person entitled to appeal and on the minister.

18          Section 32.1 is amended by adding ", 31.1" before "and 32".

PART 5

THE RETAIL SALES TAX ACT

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

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

20(1)       The following is added after subsection 2(4):

Tax payable at time of vehicle registration

2(4.1)      A person who

(a) purchases a vehicle required to be registered under The Highway Traffic Act or The Off-Road Vehicles Act from a person other than a vendor at a retail sale in the province; and

(b) has not paid the tax under this Act in respect of the vehicle before registering it;

shall on registration pay the tax to a person authorized by the minister for the purpose of this subsection.

20(2)       The following is added after subsection 2(17):

Person deemed to be a vendor

2(18)       A person authorized by the minister for the purpose of subsection 2(4.1) or 2.2(3)

(a) is deemed to be a vendor under this Act for purposes of collecting tax under those subsections and shall remit the tax so collected and make returns to the minister as prescribed by the regulations; and

(b) is, for the purpose of collecting the tax and remitting the proceeds to the minister or refunding tax to the purchaser of a vehicle under subsection 3(11.1), an agent of Her Majesty in right of Manitoba and a revenue officer within the meaning of The Financial Administration Act and is subject to the duties and responsibilities of a revenue officer under that Act.

21(1)       Subsection 3(1) is amended

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

(q.1) student yearbooks;

(b) in clause (r), by adding "not including student yearbooks and" after "but"; and

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

(xx) drill bits and explosive materials purchased and used for exploration for minerals as defined in The Mining Tax Act or development activities directly related to mining for minerals as defined in that Act.

21(2)       The following is added  after subsection 3(11):

Tax refund to vehicle purchaser

3(11.1)     Subject to any terms and conditions provided in the regulations, a person authorized by the minister may refund to the purchaser of a vehicle on the minister's behalf the tax refundable under subsection (11) if

(a) the authorized person is required to collect the tax for the purpose of subsection 2(4.1) in respect of the purchased vehicle;

(b) registration of the purchased vehicle under The Highway Traffic Act takes place after the purchaser has sold another vehicle; and

(c) neither the tax in respect of the vehicle purchased nor the vehicle sold is subject to the proration of tax under this Act based on its use in interprovincial or international commerce.

Tax refundable at time of vehicle registration

3(11.2)     A person authorized by the minister who makes a refund under subsection (11.1) shall deduct the tax refundable from the tax payable on the purchase of the vehicle and remit the net tax, if any, to the minister.

22(1)       Subsection 3.1(3) is amended

(a) in clause (a), by striking out "April 1, 1995 " and substituting "January 1, 1996";

(b) in clause (b),

(i) by striking out "April 1, 1995" and substituting "January 1, 1996",

(ii) by striking out "March 31, 1995" and substituting "December 31, 1995", and

(iii) by striking out "August 1, 1995" and substituting "May 1, 1996"; and

(c) in clause (c), by striking out "August 1, 1995" and substituting "May 1, 1996".

22(2)       Clause 3.1(4)(a) is amended by striking out "January 1, 1996" and substituting "October 1, 1996".

22(3)       Subsection 3.1(6) is amended,

(a) in clause (a),

(i) by striking out "March 31, 1995" wherever it occurs and substituting "December 31, 1995",

(ii) by striking out "August 1, 1995" and substituting "May 1, 1996", and

(iii) by striking out ".82%" and substituting ".83%"; and

.

(b) in clause (b), by striking out "July 31, 1995" and substituting "April 30, 1996".

23(1)       Subsection 9(3) is repealed.

23(2)       The following is added after subsection 9(6):

Fee for administering tax refunds.

9(6.1)      The minister may pay from the consolidated fund to each person authorized for the purpose of subsection  3(11.1) the fee prescribed in the regulations for administering and processing tax refunds on vehicles under subsection 3(11.1).

24          The following is added after section 9:

Definition of "taxes"

9.1(1)      In subsection (2), "taxes" in respect of a sale means the tax imposed under this Act in respect of the sale and the tax imposed under Part IX of the Excise Tax Act (Canada) in respect of the sale.

Deductions in respect of bad debts

9.1(2)      Where a vendor has remitted the tax payable under this Act by a purchaser in respect of a sale after March 9, 1995 of tangible personal property or a service and all or a portion of the purchase price and the taxes in respect of the sale has been written off by the vendor as a bad debt (in this section referred to as the "bad debt"), the vendor may, subject to the terms and conditions prescribed in the regulations, deduct from the amount otherwise required to be remitted under section 9, at any time before the end of the 24th month following the end of the month in which the bad debt was written off, an amount not exceeding the amount determined by the following formula:

A = (B x C/D) - E

In this formula,

A

is the maximum deduction permitted at that time in respect of the bad debt;

B

is the amount of tax remitted by the vendor in respect of the sale;

C

is the amount of the bad debt;

D

is the total of the purchase price and the taxes in respect of the sale;

E

is the total of all amounts deducted under this subsection before that time by the vendor in respect of the bad debt.

Recovery of bad debt

9.1(3)      Where at any time all or a portion of a bad debt is recovered by a vendor, the vendor shall pay to the minister, on or before the 20th day of the month following the month in which the recovery is made, the amount determined by the following formula:

A = B x C/D

In this formula,

A

is the amount required to be paid;

B

is the total of the amounts deducted under subsection (2) before that time in respect of the bad debt;

C

is the portion of the bad debt recovered at that time;

D

is the amount of the bad debt.

Order of payment

9.1(4)      For the purposes of subsection (3), each amount recovered by a vendor in respect of a bad debt shall be conclusively deemed to be applied first to the payment of the bad debt.

25          Subsection 29(1) is amended

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

(j.1) providing terms and conditions respecting refunding of tax to vehicle purchasers under subsection 3(11.1);

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

(p.1) prescribing the amount of the fee payable for administering and processing a tax refund under subsection 9(6.1), and governing the procedure for paying the fee;

(p.2) prescribing terms and conditions for the purposes of, and defining any word or expression used but not specifically defined in, section 9.1;

PART 6

THE REVENUE ACT

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

26          The Revenue Act is amended by this Part.

27          Subsection 6(3) is repealed.

28          The following is added after section 9:

Definition of "taxes"

9.1(1)      In subsection (2), "taxes" in respect of a sale means the tax imposed under section 3 in respect of the sale and the tax imposed under Part IX of the Excise Tax Act (Canada) in respect of the sale.

Deductions in respect of bad debts

9.1(2)      Where a dealer has remitted the tax payable under this Part by a purchaser in respect of a sale after March 9, 1995 of a taxable product and all or a portion of the purchase price and the taxes in respect of the sale has been written off by the dealer as a bad debt (in this section referred to as the "bad debt"), the dealer may, subject to the terms and conditions prescribed in the regulations, deduct from the amount otherwise required to be remitted under section 6 at any time before the end of the 24th month following the end of the month in which the bad debt was written off an amount not exceeding the amount determined by the following formula:

A = (B x C/D) - E

In this formula,

A

is the maximum deduction permitted at that time in respect of the bad debt;

B

is the amount of tax remitted by the dealer in respect of the sale;

C

is the amount of the bad debt;

D

is the total of the purchase price and the taxes in respect of the sale;

E

is the total of all amounts deducted under this subsection before that time by the dealer in respect of the bad debt.

Recovery of bad debt

9.1(3)      Where at any time all or a portion of a bad debt is recovered by a dealer, the dealer shall pay to the minister, on or before the 20th day of the month following the month in which the recovery is made, the amount determined by the following formula:

A = B x C/D

In this formula,

A

is the amount required to be paid;

B

is the total of the amounts deducted under subsection (2) before that time in respect of the bad debt;

C

is the portion of the bad debt recovered at that time;

D

is the amount of the bad debt.

Order of payment

9.1(4)      For the purposes of subsection (3), each amount recovered by a dealer in respect of a bad debt shall be conclusively deemed to be applied first to the payment of the bad debt.

29          Subsection 24(1) is amended by adding the following after clause (n):

(o) prescribing terms and conditions for the purposes of, and defining any word or expression used but not specifically defined in, section 9.1.

30          The following is added after subsection 35(1.1):

Transfer for benefit of Indian band

35(1.2)     No tax is payable under this Part in respect of a transfer of land where

(a) the transferee acquires the land, for the use and benefit of a band (as defined in the Indian Act (Canada)), pursuant to or as contemplated by an agreement made between the band and the Government of Canada in settlement of a treaty land entitlement of the band; and

(b) an agreement made between the Government of Manitoba and the Government of Canada to enable the Government of Canada to fulfill its treaty obligations to the band provides that no tax shall be payable under this Part in respect of an acquisition described in clause (a).

31          Subsection 35(2) is amended by striking out "subsection (1) or subsection (1.1)" and substituting "this section".

PART 7

COMING INTO FORCE

Coming into force

32          Subject to sections 33 to 35, this Act comes into force on the day it receives royal assent.

Part 1:  Gasoline Tax Act

33          Section 2 comes into force on July 1, 1995 and, in the event that this Act receives royal assent after that date, section 2 is retroactive and is deemed to have come into force on July 1, 1995.

Part 4:  Mining Tax Act

34          Subsection 15(2) is retroactive and is deemed to have come into force with respect to fiscal years commencing after December 31, 1993.

Part 5:  Retail Sales Tax Act

35(1)       Subsection 21(1) is retroactive and is deemed to have come into force on March 10, 1995.

Retail Sales Tax Act:  various provisions

35(2)       Clause 2(18)(b) of The Retail Sales Tax Act as enacted by subsection 20(2) of this Act, subsections 21(2) and 23(2) and clause 25(a) of this Act and clause 29(1)(p.1) of The Retail Sales Tax Act as enacted by clause 25(b) of this Act come into force on a day fixed by proclamation.

Retail Sales Tax Act:  section 22

35(3)       Section 22 is retroactive and is deemed to have come into force on April 1, 1995.