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The Statute Law Amendment [Taxation] Act, 1996

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If you need an official copy, contact Statutory Publications.

S.M. 1996, c. 66

THE STATUTE LAW AMENDMENT [TAXATION] ACT, 1996


 

(Assented to November 19, 1996)

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

PART 1

THE CORPORATION CAPITAL TAX ACT

C.C.S.M. c. C226 amended

1         The Corporation Capital Tax Act is amended by this Part.

2         Clause 10(1)(c) is amended by striking out "fiscal year in which" and substituting "fiscal year ending prior to January 1, 1996, in which".

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         The following is added after subsection 3(3.9):

Proration of tax exemption and notch provision

3(3.10)   Where in a year after 1996 a corporation that is an employer and was not previously associated with any other corporation (the "corporation not previously associated") in that year becomes associated with one or more corporations not associated with each other or becomes associated with a group of associated corporations,

(a) notwithstanding subsection 2(3) and subsection (3.8), no tax is payable by the corporation not previously associated in respect of remuneration paid to its employees in the portion of that year (the "pre-association period") preceding the date when the corporation became associated (the "date of association"), if the total remuneration paid in the pre-association period does not exceed the prorated amount of tax exemption determined in accordance with the following formula:

A = $750,000. × B/C

where

A   is the prorated amount of tax exemption;

B   is the total number of days in the pre-association period;

C   is the total number of days in that year;

(b) notwithstanding subsection (3.8), in the case of a group of corporations that were associated with each other for the entire pre-association period, the total amount of tax exemption to be shared under subsection 2(3) by the group in relation to the pre-association period shall be equal to the prorated amount of tax exemption determined under clause (a);

(c) notwithstanding subsection (3.8), the total amount of tax exemption to be shared under subsection 2(3) by all the corporations that are associated in the remainder of the year commencing on the date of association shall be the difference between $750,000. and the prorated amount of tax exemption determined under clause (a);

(d) notwithstanding subsection (3.9), where, in clause (a), the total remuneration paid by the corporation not previously associated to its employees in the pre-association period is more than the prorated amount of tax exemption and not more than twice that amount, the tax payable under subsection (3.1) by the corporation not previously associated for the pre-association period is 4.5% of the amount of remuneration paid in the pre-association period that is more than the prorated amount of tax exemption but not more than twice that amount;

(e) notwithstanding subsection (3.9), where, relative to clause (b), the total remuneration paid by the group of corporations that were associated with each other for the entire pre-association period to employees in the pre-association period is more than the prorated amount of tax exemption determined in clause (a) and not more than twice that amount, the tax payable under subsection (3.1) by the group of associated corporations for the pre-association period is 4.5% of the amount of remuneration paid in the pre-association period that is more than the prorated amount of tax exemption but not more than twice that amount; and

(f) notwithstanding subsection (3.9), where, relative to clause (c), the total remuneration paid by all the corporations that are associated in the remainder of the year commencing on the date of association to their employees is more than the difference between $750,000. and the prorated amount of tax exemption determined in clause (a) and not more than twice that difference, the tax payable under subsection (3.1) for the remainder of the year by the all the corporations is 4.5% of the amount of remuneration paid in the remainder of the year that is more than the difference but not more than twice the difference.

Corporations associated at different times

3(3.11)   Subsection (3.10) does not apply in any year in which more than one corporation becomes associated as a part of a group of associated corporations, and they commence to be associated at different times in the year.

5(1) Subsection 3.3(1) is amended by striking out "subsections (2) and (3)" and substituting "subsections (2), (3), (5) and (6)".

5(2)      The following is added after subsection 3.3(4):

Tax refund discontinued

3.3(5)    No tax is refundable under this section in respect of workplace training provided by an employer to employees, or costs incurred for workplace training, after April 2, 1996.

Refund for period January 1, 1996 to April 2, 1996

3.3(6)    Notwithstanding anything otherwise provided in this section or in The Workplace Training Tax Refund Regulation, Manitoba Regulation 194/92 (the "regulation"), in respect of workplace training costs incurred by an employer in the period January 1, 1996 to April 2, 1996,

(a) the minister may approve a tax refund in respect of the workplace training costs that meet the requirements of this section and the regulation, if the employer makes a refund application to the minister no later than June 30, 1996; and

(b) the amount of the refund shall be the least of the following:

(i) the sum of

(A) 75% of the first $20,000. of workplace training costs, and

(B) 50% of workplace training costs that exceed $20,000.,

incurred by the employer in respect of that period and approved by the minister,

(ii) .3% of the amount of the remuneration paid by the employer in that period,

(iii) $25,000.

PART 3

THE INCOME TAX ACT

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

6         The Income Tax Act is amended by this Part.

7         The following is added after subsection 4(13.5):

More than one return in calendar year

4(13.6)   For the 1996 and subsequent taxation years, where an individual becomes bankrupt in a calendar year, the total of the amounts that may be deducted under subsection (13) for the individual's taxation years ending in the calendar year shall not exceed the amount that would have been deductible under that subsection in respect of the calendar year if the individual had not become bankrupt.

8(1)      The definition "principal residence" in subsection 5(1) is repealed and the following is substituted:

"principal residence" means a residential dwelling unit that is

(a) owned or rented by the principal taxpayer or the taxpayer's spouse,

(b) ordinarily occupied by the taxpayer in Manitoba in the taxation year, and

(c) designated by the taxpayer in prescribed manner to be the taxpayer's principal residence for the taxation year,

and may include any contiguous land, not exceeding ½ hectare, which contributes to the enjoyment of the unit as a residence; (« résidence principale »)

8(2)      The following is added after subsection 5(1.1):

Personal care homes

5(1.2)    For the purpose of clause (b) of the definition "dwelling unit cost" in subsection (1), where a principal taxpayer's principal residence is a room in a personal care home, the rental or other payment referred to in that definition shall be deemed not to exceed ½ of the portion of the per diem charges paid to the personal care home that has not been claimed as a medical expense under section 118.2 of the federal Act by the taxpayer, the taxpayer's spouse or a supporting individual.

8(3)      Subsection 5(5) is amended by adding the following after clause (b):

(c) for the 1996 and subsequent taxation years,

(i) an amount equal to 10% of the total of

(A) the individual's tuition fees to the extent that they are included in determining the amount that may be deducted by the individual under section 118.5 of the federal Act, and

(B) an amount equal to $100. times the number of months in the year during which the individual is enrolled in a qualifying educational program as a full-time student at a designated educational institution, within the meaning of section 118.6 of the federal Act, and

(ii) where the individual deducts an amount under section 118.8 or 118.9 of the federal Act in respect of amounts that may be deducted under section 118.5 or 118.6 of the federal Act by another individual for the year, an amount not exceeding the portion of the amount determined under subclause (i) in respect of the other individual for the year that is not deducted under that clause by the other individual.

8(4)      Subsection 5(7) is repealed and the following is substituted:

Limitation on claims under subsection (6)

5(7)      The deduction authorized under subsection (6) may be claimed by

(a) only one spouse of a married couple; and

(b) if one of them is a principal taxpayer for the taxation year, only by that spouse;

and is in lieu of any an all deductions that either spouse could otherwise claim under clause (5)(b).

8(5)      Subsection 5(8) is amended

(a) by repealing the section heading and substituting "Claim by deceased's legal representative"; and

(b) by striking out everything before "legal representative" and substituting "Where, immediately before the death of an individual, the individual was a taxpayer resident in Manitoba and was not married to a taxpayer resident in Manitoba, the individual's".

8(6)      The following is added after subsection 5(8):

Claim by surviving spouse

5(8.1)    Where

(a) immediately before the death of an individual, the individual was married and a taxpayer resident in Manitoba; and

(b) at the end of the year in which the individual died, the surviving spouse of the individual was a taxpayer resident in Manitoba;

the surviving spouse may claim for that year the amounts that, if the individual had been resident in Manitoba and married to the surviving spouse at the end of the year, the individual could have claimed under subsection (5).

8(7)      Subsections (1), (2), (4), (5) and (6) apply to the 1996 and subsequent taxation years.

9         Subsection 7(4.1) is repealed and the following is substituted:

Allocation of tax revenues to municipalities

7(4.1)    For each year after 1977, the government shall allocate and distribute to municipalities, Indian Reserves, communities under The Northern Affairs Act and other areas of the province, in accordance with The Provincial-Municipal Tax Sharing Act, the amount determined by the following formula:

A = .01 × (B - C/D)

In this formula:

A   is the amount to be allocated and distributed under this subsection;

B   is the total taxable income of corporations earned in Manitoba for their taxation years ending in the year;

C   is the total of the amounts refunded in the year by the government to corporations on account of their capital gains refunds and, for this purpose, "capital gains refund" has the same meaning as in section 131 of the federal Act; and

D   is the percentage specified in subsection (1) for the year.

10        The definition "qualified property" in subsection 7.2(2) is amended in the part preceding clause (a) by striking out "1996" and substituting "1997".

11(1)     Clause 11.1(2)(b) is repealed and the following is substituted:

(b) for 1993, 1994 and 1995, $1,000.;

(c) for 1996, the total of

(i) the lesser of

(A) $1,000., and

(B) the product obtained when 0.2 is multiplied by the individual's net cost of approved shares acquired after 1995 and before March 6, 1996 and for which no amount was deducted under this section in computing the individual's tax payable for the 1995 taxation year, and

(ii) the lesser of

(A) the amount, if any, by which $525. exceeds the amount determined under subclause (i) in respect of the individual, and

(B) the product obtained when 0.15 is multiplied by the individual's net cost of approved shares acquired after March 5, 1996 and before March 2, 1997;

(d) for 1997 and subsequent years, $525.

11(2)     The following is added after subsection 11.1(4):

Redemption

11.1(4.1) Where an approved share in respect of which a taxpayer deducted or would otherwise be entitled to deduct an amount under this section is redeemed after March 5, 1996, the taxpayer is not entitled to claim a credit under this section for the year in which it was redeemed or for either of the following two years.

11(3)     Clause 11.1(5)(b) is repealed and the following is substituted:

(b) for 1993, 1994, 1995 and 1996, $5,000.; and

(c) for 1997 and subsequent years, $3,500.

12        The following is added after section 53:

General anti-avoidance rule

53.1      Sections 245 and 246 of the federal Act apply for the purposes of this Act to transactions and events that occur after May 23, 1996.

13        The following is added after section 53.1:

"Untaxed income" defined

53.2(1)   In this section, a person's "untaxed income" in relation to a disposition of property is the total of all amounts each of which is the portion of the person's income or taxable income earned in a year in a province, as determined under the federal regulations, that

(a) is attributable to the disposition; and

(b) because of a difference between the transferor's cost or adjusted cost base of the property for federal tax purposes and its cost or adjusted cost base to the transferor under the income tax law of the province, is not included in the person's income for the year under that law.

Provincial tax avoidance

53.2(2)   Where, as part of a series of transactions or events,

(a) a person or partnership (referred to in this section as the "taxpayer") disposes of property to another person or partnership with whom the taxpayer does not deal at arm's length for proceeds of disposition under the federal Act less than the fair market value of the property at the time of the disposition; and

(b) the property or other property

(i) the fair market value of which is derived primarily from the property, or

(ii) that is acquired by any person other than the taxpayer in substitution for the property,

is subsequently disposed of for proceeds of disposition under the federal Act greater than its adjusted cost base under that Act;

any untaxed income arising from the subsequent disposition shall be added to the taxpayer's proceeds of the disposition referred to in clause (a).

Computation of tax payable

53.2(3)   Despite any other provision of this Act or the federal Act, where subsection (2) applies to a disposition, all amounts required to be determined under this Act or the federal Act for the purpose of determining the tax payable under this Act shall be determined as if the proceeds of disposition were equal to the proceeds of disposition determined under that subsection.

Application

53.2(4)   This section applies to dispositions that occur after 1991.

Transitional

53.2(5)   Despite any other provision of this Act, where a taxpayer to whom subsection (2) applies in respect of a disposition of property that occurred before May 23, 1996 or, where the taxpayer is a partnership, a member of the partnership

(a) reports the disposition and any additional income resulting from the application of that subsection to the disposition; and

(b) remits any increase in tax payable under this Act because of the application of that subsection;

not more than 180 days after the later of the day that this Act receives royal assent and December 31, 1996, the following rules apply:

(c) no interest or penalty is payable in respect of the amount so remitted; and

(d) the taxpayer or member may deduct from the tax otherwise payable under this Act the amount determined by the formula

A - B

where

A   is the increase in the tax that payable under this Act by the taxpayer or member because of the application of subsection (2) to the disposition, and

B   is the total of all amounts each of which is the increase in the tax that would be payable by the taxpayer or member under the income tax law of a province if the cost or adjusted cost base under that law of the property disposed of in the disposition referred to in clause (2)(b) were equal to its cost or adjusted cost base under the federal Act.

PART 4

THE MOTIVE FUEL TAX ACT

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

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

15(1)     Clause 2(1)(a) is amended by adding "(9.1)," after "subsection (9),".

15(2)     The following is added after subsection 2(9):

Exemption for marked or coloured diesel fuel for mineral exploration

2(9.1)    A purchaser who uses diesel fuel for operating an engine off-road exclusively for exploration for minerals as defined in The Mining Tax Act, other than for exploration for minerals in a mine as defined in that Act, may purchase marked or coloured diesel fuel for that purpose exempt from tax and without a permit.

PART 5

THE RETAIL SALES TAX ACT

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

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

17        Subsection 1(1) is amended by adding the following definitions in alphabetical order:

"interjurisdictional commercial purposes" in relation to a vehicle, means use of the vehicle in the province while the vehicle is engaged in interprovincial or international trade for the commercial carriage of passengers or goods; (« à des fins commerciales interterritoriales »)

"multijurisdictional vehicle" means a vehicle in respect of which tax is payable under subsection 2.3(2); (« véhicule multiterritorial »)

"trailer" means a trailer as defined in The Highway Traffic Act; (« remorque »)

"vehicle" means a vehicle as defined in The Highway Traffic Act; (« véhicule »)

18        The following is added after section 2.2:

Definitions

2.3(1)    In this section,

"acquisition date", in respect of a vehicle, means the date on which the vehicle is purchased or, in the case of a leased vehicle, the date on which the lessee first becomes entitled, under the lease, to have access to the vehicle; (« date d'acquisition »)

"acquisition year", in respect of a vehicle, means the calendar year in which the vehicle is purchased or, in the case of a leased vehicle, the calendar year in which the lessee first becomes entitled, under the lease, to have access to the vehicle; (« année d'acquisition »)

"bus" means a vehicle designed to carry more than 10 persons; (« autobus »)

"calculation year" means the period beginning on July 1 and ending on the following June 30, or any other period prescribed in the regulations for the purpose of this definition; (« année du calcul »)

"fleet registration date", in respect of vehicles registered in a calendar year as part of a fleet, means the first day in that calendar year that fleet vehicles are registered as such; (« date d'immatriculation du parc »)

"fleet registration year", in respect of vehicles registered as part of a fleet, means the period beginning on a fleet registration date for the fleet vehicles and ending on the day before the anniversary of that registration date; (« année d'immatriculation du parc »)

"reciprocal jurisdiction" means a province or territory of Canada, a state of the United States or the District of Columbia that is declared by regulation to be a reciprocal jurisdiction; (« territoire de réciprocité »)

"registration date" means,

(a) in respect of a vehicle that is not registered as part of a fleet, the day on which the vehicle is registered, or

(b) in respect of a vehicle that is registered as part of a fleet, the fleet registration date; (« date d'immatriculation »)

"travel ratio" means

(a) for a vehicle that is not registered as part of a fleet,

(i) if the vehicle was not, for at least 90 days during the calculation year preceding the vehicle's registration date, a multijurisdictional vehicle, the ratio of

(A) a reasonable estimate of the distance that the vehicle will travel in the province during the vehicle registration year, and

(B) a reasonable estimate of the total distance that the vehicle will travel in the vehicle registration year, or

(ii) if the vehicle was, for at least 90 days during the calculation year preceding the vehicle's registration date, a multijurisdictional vehicle, the ratio of

(A) the distance travelled in the province by that vehicle in the period beginning on the day in that calculation year that it became a multijurisdictional vehicle or on the first day of the calculation year, whichever is later, and ending on the last day of the calculation year, and

(B) the total distance travelled by that vehicle during that same period, or

(b) for a vehicle that is registered as part of a fleet,

(i) if none of the vehicles in the fleet, while part of that fleet, were, for at least 90 days during the calculation year preceding the fleet registration date, multijurisdictional vehicles, the ratio of

(A) a reasonable estimate of the distance that the multijurisdictional vehicles in the fleet will travel in the province during the fleet registration year, and

(B) a reasonable estimate of the total distance that the multijurisdictional vehicles in the fleet will travel in the fleet registration year, or

(ii) if one or more of the vehicles in the fleet, while part of that fleet, were, for at least 90 days during the calculation year preceding the fleet registration date, multijurisdictional vehicles, the ratio of

(A) the distance travelled in the province by the multijurisdictional vehicles of the fleet in the period beginning on the first day in that calculation year that a vehicle in the fleet became a multijurisdictional vehicle or on the first day of the calculation year, whichever is later, and ending on the last day of the calculation year, and

(B) the total distance travelled by the multijurisdictional vehicles of the fleet during that same period; (« ratio de la distance »)

"vehicle" does not include a trailer; (« véhicule »)

"vehicle registration year" means the period beginning on a date on which a registration is issued for a vehicle and ending on the expiry date for the registration established on that registration date; (« année d'immatriculation du véhicule »)

"vehicle taxable value", in respect of a vehicle, means

(a) the purchase price of the vehicle, or

(b) if the vehicle is leased, the greater of

(i) the purchase price of the vehicle as described in the lease agreement, and

(ii) the price at which the legal and beneficial interest in the vehicle would, if unencumbered, be conveyed by a willing seller acting in good faith to a willing buyer acting in good faith in an arm's length retail sale in the open market,

and includes any capital expenditure made to the vehicle within 30 days after the vehicle's acquisition date. (« valeur imposable du véhicule »)

Tax payable on vehicle used for interjurisdictional commercial purposes.

2.3(2)     The following persons shall pay to Her Majesty in right of Manitoba tax in accordance with this section for a vehicle registration year:

(a) a person who, in the province, registers a vehicle, whether as part of a fleet or not, for interjurisdictional commercial purposes in the vehicle registration year;

(b) a person who registers a vehicle outside the province, whether as part of a fleet or not, for interjurisdictional commercial purposes in the vehicle registration year.

Time for payment of tax

2.3(3)    The tax payable for a vehicle registration year under subsection (2) in respect of a vehicle shall,

(a) if the vehicle is registered in the province for interjurisdictional commercial purposes, be paid at the time that the vehicle is registered for that vehicle registration year,

(b) if the vehicle is registered in a reciprocal jurisdiction outside the province for interjurisdictional commercial purposes, be paid at the time the vehicle is registered in that jurisdiction for that vehicle registration year; or

(c) if the vehicle is registered outside the province and the tax is not paid at the time mentioned in clause (b), be paid at the time the vehicle first enters the province for interjurisdictional commercial purposes during that vehicle registration year.

Interpretation of subsection (2)

2.3(4)    For greater certainty, payment of tax in respect of a vehicle for a vehicle registration year under subsection (2) includes payment of tax in respect of

(a) any trailer used with the vehicle while the trailer is used for interjurisdictional commercial purposes; and

(b) repair parts or services prescribed in the regulations that are used in or rendered with respect to the vehicle or a trailer mentioned in clause (a) while the vehicle or trailer is used for interjurisdictional commercial purposes.

Tax rate

2.3(5)    The rate of tax payable under subsection (2) in respect of a vehicle in a class indicated at the head of a column in the following table shall, in each calendar year in which the tax is payable in respect of the vehicle, be the tax rate shown opposite that calendar year in the column or such lesser rate as may be prescribed in the regulations for the class of vehicles.

Calendar Year Tax Rate       Tax Rate

                    For Vehicle  For Bus

                other than a Bus

the acquisition year 3.294% 2.059%

the calendar year

following the

acquisition year 2.646% 1.654%

the second calendar year

following the

acquisition year 2.177% 1.360%

the third calendar year

following the

acquisition year 1.838% 1.148%

the fourth calendar year

following the

acquisition year 1.597% .998%

the fifth calendar year

following the

acquisition year 1.577% .985%

the sixth calendar year

following the

acquisition year 1.509% .943%

the seventh calendar year

following the

acquisition year 1.486% .928%

the eight calendar year

following the

acquisition year 1.497% .935%

the ninth and subsequent

calendar years following

the acquisition year 1.533% .958%

Tax calculation

2.3(6)    The tax payable for a vehicle registration year under subsection (2) in respect of a vehicle shall be calculated in accordance with the following formula:

TX = TV × R × TR × T

In this formula,

TX  is the amount of tax payable;

TV  is the vehicle taxable value;

R   is the tax rate established under subsection (5);

TR  is the travel ratio for the vehicle;

T   is the number of whole or partial calendar months left in the vehicle registration year at the time that the vehicle is registered divided by 12.

Tax adjustment where travel ratio estimated for vehicle

2.3(7)    Where the actual distance a vehicle referred to in sub-clause (a)(i) of the definition of "travel ratio" in subsection (1) travels in the province during a vehicle registration year and the actual total distance the vehicle travels during that vehicle registration year results in a different travel ratio from the ratio estimated under that sub-clause, the tax payable under subsection (2) in relation to the vehicle shall be adjusted accordingly at the end of the vehicle registration year.

Tax adjustment where travel ratio estimated for vehicle fleet

2.3(8)    Where the actual distance the vehicles in a fleet of vehicles referred to in sub-clause (b)(i) of the definition of "travel ratio" in subsection (1) travel in the province during a fleet registration year and the actual total distance the vehicles of the fleet travel during that fleet registration year results in a different travel ratio from the ratio estimated under that sub-clause, the tax payable under subsection (2) in relation to a vehicle of that fleet shall be adjusted accordingly at the end of the fleet registration year.

Other persons liable for tax payment

2.3(9)    If tax is payable by a person under subsection (2) in respect of a vehicle for a vehicle registration year, any other person who had management of or the right to determine the utilization of the vehicle while it was in the province during the vehicle registration year is jointly and severally liable with any other person liable for that tax.

Credit for tax previously paid

2.3(10)   The minister, on application and on receipt of evidence satisfactory to the minister, shall provide a credit to a person who registers a vehicle in the province for interjurisdictional commercial purposes if

(a) the vehicle is so registered within five years after its acquisition date;

(b) the vehicle was purchased after or was brought or sent into the province after the coming into force of this section; and

(c) the person had previously paid tax on the purchase price of the vehicle under section 2.

Credit applied against tax payable

2.3(11)   The credit to which a person is entitled under subsection (10) shall be

(a) calculated in accordance with the regulations, and

(b) applied against any tax payable by the person in respect of the vehicle under subsection (2).

Tax adjustment on vehicle transferred between fleets

2.3(12)   Where a vehicle that was registered by a person as part of a fleet is, before the end of the fleet registration year applicable to that fleet, registered by that person as part of a different fleet,

(a) the person shall, in respect of the vehicle's new fleet registration year, pay to Her Majesty in right of Manitoba the tax imposed by subsection (2); and

(b) the minister, on application and on receipt of evidence satisfactory to the minister, shall provide to the person a refund of a portion of the tax previously paid in respect of the vehicle under subsection (2), which refund shall be calculated and provided in accordance with the regulations.

Tax on vehicle transferred to intraprovincial use etc.

2.3(13)   Where a vehicle in respect of which tax has been paid under subsection (2) or a trailer used with the vehicle while the vehicle was used for interjurisdictional commercial purposes is subsequently registered for use solely within the province or otherwise ceases to be used for interjurisdictional commercial purposes,

(a) the owner or lessee shall, on registration or in accordance with subsection 2(4) without delay after the vehicle ceases to be used for interjurisdiction commercial purposes, pay to Her Majesty in right of Manitoba tax at the rate of 7%

(i) of the depreciated value of the vehicle or trailer determined in accordance with the regulations, and

(ii) on repair parts that are prescribed in the regulations and that are purchased for use in, but have not been installed in, the vehicle or trailer; and

(b) the minister, on application and on receipt of evidence satisfactory to the minister, shall provide to the person a credit in respect of tax paid under subsection (2) against the tax payable under subclause (a)(i), which credit shall be calculated and provided in accordance with the regulations.

Transitional provision

2.3(14)   The minister may, in accordance with the regulations, provide to a person who purchased a vehicle in the province or who brought or sent a vehicle into the province, a refund, determined in the prescribed manner, of not more than the amount of tax that the person is obliged to pay in respect of that vehicle under subsection (2), if

(a) the person, on purchasing the vehicle or on bringing or sending the vehicle into the province, paid the tax payable under section 2; and

(b) the vehicle was purchased or was first brought or sent into the province after a date prescribed in the regulations and immediately before the coming into force of this section.

Tax adjustment may be refunded or credited

2.3(15)   The minister may, in accordance with the regulations,

(a) pay the refund referred to in subsection (12) or (14) to the person out of the Consolidated Fund; or

(b) credit the amount of the refund against the amount of any tax that the person is required to pay under subsection (2).

19(1)     The following is added after subsection 3(11.2):

Refunds calculated on average wholesale price in certain circumstances

3(11.3)   For the purpose of subsection (11), "selling price of the vehicles sold" means, in respect of each vehicle sold, the greater of the vehicle's selling price and its average wholesale price when sold, if the seller of that vehicle, previously at the time of purchasing it, paid tax on its average wholesale price under subsection 2.2(2).

19(2)     Subsection 3(12) is amended by striking out "within 30 days of the date of the purchase" and substituting "within six months immediately preceding or immediately following the date of purchase".

19(3)     The following is added after subsection 3(30):

Exemption for geophysical survey and exploration equipment

3(31)     Notwithstanding section 2, no tax is payable under this Act in respect of the purchase of

(a) geophysical survey aircraft; or

(b) geophysical survey or exploration equipment other than a drill rig;

as prescribed in the regulations, that is designed and used solely for prospecting or exploration for minerals as defined in The Mining Tax Act.

Exemption for prototype equipment for mining

3(32)     Notwithstanding section 2, no tax is payable under this Act in respect of the purchase of equipment that, upon application by the purchaser to the director, is specifically approved by the director as being prototype equipment purchased and used to research and develop new mining technologies for minerals as defined in The Mining Tax Act.

Exemption for multijurisdictional vehicles etc.

3(33)     No tax is payable under section 2 in respect of

(a) a multijurisdictional vehicle with respect to which the tax is paid under subsection 2.3(2) while the multijurisdictional vehicle is used for interjurisdictional commercial purposes;

(b) a trailer used with a multijurisdictional vehicle mentioned in clause (a) while the trailer is used for interjurisdictional commercial purposes; or

(c) repair parts or services prescribed in the regulations that are used in or rendered with respect to a multijurisdictional vehicle mentioned in clause (a) or a trailer mentioned in clause (b) while the multijurisdictional vehicle or trailer is used for interjurisdictional commercial purposes.

Interpretation of subsection (33)

3(34)      For greater certainty, a person shall pay the tax payable under section 2 on any tangible personal property that is

(a) permanently mounted on or attached to a multijurisdictional vehicle or a trailer used with a multijurisdictional vehicle; and

(b) used or designed for a purpose other than the commercial carriage of goods or passengers.

Exemption re certain coin-operated devices

3(35)     Notwithstanding section 2, no tax is payable in respect of the purchase of tangible personal property dispensed from, or a service rendered through the operation of, a mechanical coin-operated device that is designed to accept only a single $0.25 coin as the total consideration for the purchase.

20(1)     Subsection 3.1(3) is amended

(a) in clause (a), by striking out "January 1, 1996" and substituting "April 1, 1997",

(b) in clause (b),

(i) by striking out "January 1, 1996" and substituting "April 1, 1997",

(ii) by striking out "December 31, 1995" and substituting "March 31, 1997", and

(iii) by striking out "May 1, 1996" and substituting "August 1, 1997";

(c) in clause (c), by striking out "May 1, 1996" and substituting "August 1, 1997".

20(2)     Clause 3.1(4)(a) is amended by striking out "October 1, 1996" and substituting "January 1, 1998".

20(3)     Subsection 3.1(6) is amended

(a) in clause (a),

(i) by striking out "December 31, 1995" wherever it occurs and substituting "March 31, 1997",

(ii) by striking out "May 1, 1996" and substituting "August 1, 1997", and

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

(b) in clause (b), by striking out "April 30, 1996" and substituting "July 31, 1997".

21(1)     Subsection 29(1) is amended by adding the following after clause (x):

(y) prescribing geophysical survey aircraft for the purpose of clause 3(31)(a);

(z) prescribing geophysical survey or exploration equipment for the purpose of clause 3(31)(b);

(aa) declaring a jurisdiction to be a reciprocal jurisdiction for the purpose of the definition of that term in subsection 2.3(1);

(bb) prescribing a period for the purpose of the definition of "calculation year" in subsection 2.3(1);

(cc) prescribing a reduced rate of tax for a class or classes of vehicles for the purpose of subsection 2.3(5);

(dd) prescribing rules for determining depreciated value of vehicles and trailers for the purpose of subclause 2.3(13)(a)(i);

(ee) prescribing a date for the purpose of clause 2.3(14)(b);

(ff) respecting refunds or credits of tax under subsections 2.3(10) to (15);

(gg) prescribing repair parts and services for the purpose of clause 2.3(4)(b), subclause 2.3(13)(a)(ii) and clause 3(33)(c);

(hh) respecting any matter that the Lieutenant Governor in Council considers necessary or advisable to carry out the provisions of section 2.3.

21(2)     The following is added after subsection 29(8):

Regulations under clause (1)(y)

29(9)     A regulation made under clause (1)(y) is, if it so provides, effective with reference to a period before it was registered, if that period commences not earlier than March 31, 1996.

Regulations under clause (1)(z)

29(10)    A regulation made under clause (1)(z) is, if it so provides, effective with reference to a period before it was registered, if that period commences not earlier than July 1, 1996.

PART 6

COMING INTO FORCE

Coming into force

22        Subject to sections 23 to 27, this Act comes into force on the day it receives royal assent.

Part 1: Corporation Capital Tax Act

23        Section 2 is retroactive and is deemed to have come into force on January 1, 1996.

Part 2: Health and Post Secondary Education Tax Levy Act

24(1)     Section 4 comes into force on January 1, 1997.

24(2)     Section 5 is retroactive and is deemed to have come into force on April 3, 1996.

Part 3: Income Tax Act

25(1)     Sections 7 and 8 are retroactive and are deemed to have come into force on January 1, 1996.

25(2)     Section 9 is retroactive and is deemed to have come into force on January 1, 1978.

25(3)     Section 10 is retroactive and is deemed to have come into force on July 1, 1996.

25(4)     Subsections 11(1) and (2) are retroactive and are deemed to have come into force on March 6, 1996.

25(5)     Section 12 is retroactive and is deemed to have come into force on May 23, 1996.

25(6)      Section 13 is retroactive and is deemed to have come into force on January 1, 1992.

Part 4: Motive Fuel Tax Act

26        Section 15 is retroactive and is deemed to have come into force on April 3, 1996.

Part 5: Retail Sales Tax Act

27(1)     Sections 17 and 18, subsections 3(33) and (34) as enacted by subsection 19(3) and clauses 29(1)(aa) to (hh) as enacted by subsection 21(1) come into force on a day fixed by proclamation.

27(2)     Clause 3(31)(a) as enacted by subsection 19(3), clause 29(1)(y) as enacted by subsection 21(1) and subsection 29(9) as enacted by subsection 21(2) are retroactive and are deemed to have come into force on March 31, 1996.

27(3)     Clause 3(31)(b) as enacted by subsection 19(3), clause 29(1)(z) as enacted by subsection 21(1) and subsection 29(10) as enacted by subsection 21(2) are retroactive and are deemed to have come into force on July 1, 1996.

27(4)     Subsection 3(32) as enacted by subsection 19(3) is retroactive and is deemed to have come into force on April 3, 1996.

27(5)     Subsection 3(35) as enacted by subsection 19(3) is retroactive and is deemed to have come into force on April 24, 1996.

27(6)     Section 20 is retroactive and is deemed to have come into force on January 1, 1996.