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The Budget Implementation and Tax Statutes Amendment Act, 2003

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S.M. 2003, c. 4

Bill 3, 1st Session, 38th Legislature

The Budget Implementation and Tax Statutes Amendment Act, 2003

(Assented to September 30, 2003)

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 8(1)(f) is amended by striking out "but not including its" and substituting "including, for greater certainty, bankers' acceptances but not".

3           The following is added after section 10:

Capital deduction

10.1(1)     In computing its taxable paid up capital for a fiscal year, a corporation may claim a capital deduction equal to

(a) if the corporation is a member of an associated group for the calendar year in which the fiscal year ends, nil or, subject to subsection (5), any greater amount allocated to the corporation for the calendar year under subsection (3) or (4); or

(b) in any other case, $5,000,000.

Meaning of "associated group for a calendar year"

10.1(2)     For the purpose of this section, an associated group for a calendar year includes all the corporations that are associated with each other under section 256 of the Income Tax Act (Canada) at a time that, for each of them, is in a fiscal year that ends in the calendar year.  A corporation might belong to more than one associated group for a calendar year.

Agreement among members of associated group

10.1(3)     A member of an associated group for a calendar year may file with the minister, on behalf of the members of the group and in a form authorized by the minister, an agreement that allocates among them for the calendar year an amount not exceeding $5,000,000.  The agreement must be filed on or before the filing due date for the first return to be filed by any of them under subsection 17(1) for a fiscal year ending in the calendar year.

Minister may allocate capital deduction

10.1(4)      The minister may request a corporation that was a member of an associated group for a calendar year to file an agreement under subsection (3). If the corporation does not file the agreement within 30 days after receiving the request, the minister may allocate an amount not exceeding $5,000,000. among the members of the group for that calendar year.

Multiple allocations

10.1(5)     If more than one amount is allocated to a corporation for a calendar year, the amount allocated to the corporation for the year is deemed to be the least of the amounts so allocated.

Application

10.1(6)     This section applies to fiscal years that begin after January 1, 2004.

4           Subsection 12(8) is amended by adding "and beginning before January 2, 2004" after "1999" in the section heading and in the subsection.

5           Subsection 14(8) is amended by adding "and beginning before January 2, 2004" after "1999" in the section heading and in the subsection.

6           Subsection 32(1) is replaced with the following:

Information confidential

32(1)       No person employed in the administration of this Act shall disclose to any person any personal or confidential information obtained under this Act, except

(a) to the extent required for the administration or enforcement of this Act or any other Act of the Legislature that imposes a tax or levy;

(b) as required or permitted under Part 5 of The Electronic Commerce and Information Act or under a regulation or agreement made under that Part; or

(c) as permitted under subsection (2) or the regulations.

7           Subsection 34.1(1) is amended by striking out "receiving the notice of the assessment" and substituting "the third business day following the day the notice of assessment is mailed to the corporation".

8            Subsection 35(1) is amended by striking out "receipt of the notice of the decision of the commission" and substituting "the third business day following the day the notice of the commission's decision is mailed to the corporation".

9           The following is added after section 35:

Interpretation

35.1        For the purpose of subsections 34.1(1) and 35(1):

(a) a mailed notice is to be presumed to have been mailed on the date of the notice; and

(b) "business day" means any day other than a Saturday or a holiday.

10          The following is added after subsection 38(2):

No other right of recovery

38(3)       No person has a right of action or other remedy against the government for the recovery of an amount paid as tax under this Act, unless the person is entitled under this Act to a refund of the amount.

11          Subsection 51(1) is amended by adding the following after clause (l):

(m) for the purpose of clause 32(1)(c), respecting the disclosure of non-financial information by persons employed in the administration of this Act.

S.M. 2000, c. 39 amended

12          Subsection 4(2) of The Statute Law Amendment (Taxation) Act, 2000, S.M. 2000, c. 39, is repealed.

PART 2

THE GASOLINE TAX ACT

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

13          The Gasoline Tax Act is amended by this Part.

14          Section 1 is amended

(a) in the definition "carrier", by striking out "commercial"; and

(b) in the part before clause (a) of the definition "qualified motor vehicle", by striking out "commercial".

15(1)       Subsection 4(8) is amended by striking out everything after "gasoline" and substituting "must apply to the minister, in a form authorized by the minister, for such a licence."

15(2)       Subsection 4(9) is amended by striking out everything after "gasohol" and substituting ", must apply to the minister, in a form authorized by the minister, for a permit to do so."

16(1)       Subsection 5(1) is amended by striking out everything after "subsection 2(16)" and substituting "must apply to the minister, in a form authorized by the minister, for a permit to do so."

16(2)       Subsection 5(5) is amended by striking out everything after "or (21.1)" and substituting "must apply to the minister, in a form authorized by the minister, for a refund permit."

16(3)       Subsection 5(8) is amended

(a) in the part before clause (a), by striking out everything after "shall" and substituting ", subject to the regulations,"; and

(b) in clause (a), by adding ", in a form authorized by the minister," after "refund".

17          Subsection 6(1) is replaced with the following:

Issue of licences and permits

6(1)        The minister may issue any licence or permit required or authorized by this Act and containing such information as the regulations require. The minister may issue it subject to any terms or conditions not inconsistent with this Act and the regulations.

18(1)       Clause 10(2)(a) is amended by striking out everything after "report to the minister" and substituting "in accordance with the regulations and in a form authorized by the minister; and".

18(2)       Clause 10(3)(a) is amended by striking out everything after "report to the minister" and substituting "in accordance with the regulations and in a form authorized by the minister; and".

18(3)       The following is added after subsection 10(16):

Information confidential

10(17)      No person employed in the administration of this Act shall disclose to any person any personal or confidential information obtained under this Act, except

(a) to the extent required for the administration or enforcement of this Act or any other Act of the Legislature that imposes a tax or levy;

(b) as required or permitted under Part 5 of The Electronic Commerce and Information Act or under a regulation or agreement made under that Part; or

(c) as permitted under subsection (15) or the regulations.

19          Subsection 12(1) is amended by striking out everything after "by a return" and substituting "in a form authorized by the minister and containing such information as the regulations require."

20          Subsection 16(11) is amended by striking out ", in a form prescribed by the regulations,".

21          The following is added after section 17:

Deemed trust

17.1(1)     Property of a collector, and property held by a secured creditor that but for a security interest would be property of the collector, equal in value to the tax required to be collected is, from the time it is required to be collected until it is remitted, deemed

(a) to be held in trust for, and beneficially owned by, Her Majesty in right of Manitoba;

(b) to be held separate and apart from other property of the collector and other property that but for a security interest would be property of the collector; and

(c) to form no part of the estate or property of the collector.

These rules apply to property even if it is subject to a security interest and even if the security interest arose before the coming into force of this subsection or before the tax was required to be collected.

Priority

17.1(2)     Money held in trust under subsection (1), and the proceeds of any other property held in trust under that subsection, must be paid to the minister in priority to all security interests, including one that arose before the coming into force of this subsection or before the money or other property became subject to the trust.

Minister's certificate required before distribution

17.2(1)     Every person who as assignee, liquidator, administrator, receiver, receiver-manager, secured or unsecured creditor, or as agent of the creditor, trustee or other like person, takes control or possession of a collector's property must

(a) notify the minister in writing, within 30 days after taking possession or control of the property, that the person has taken control or possession of it; and

(b) before distributing the property or proceeds of the property, obtain from the minister a certificate confirming that all amounts required to be remitted by the collector, including any interest and penalties payable by the collector, have been remitted or that security acceptable to the minister has been given.

Minister to advise of indebtedness

17.2(2)     As soon as practicable after receiving a notice from a person under clause (1)(a), the minister must advise the person of the amount required to be remitted by or on behalf of the collector, and the amount of any interest and penalties owing by the collector.

Liability for distribution without certificate

17.2(3)     A person who fails to obtain a certificate under clause (1)(b) before distributing property or proceeds is personally liable to Her Majesty in right of Manitoba for an amount equal to the lesser of

(a) the fair value, at the time of the distribution, of the property or proceeds distributed; and

(b) the amount that the collector is required to remit, plus any interest and penalties payable by the collector.

22          Subsection 19(1) is amended by striking everything after "production return" and substituting "in a form authorized by the minister and containing such information as the regulations require."

23          The following is added after subsection 21(3):

Vehicle stopping

21(3.1)     An officer referred to in subsection (3) may signal or request the operator of a motor vehicle to stop the vehicle to enable the officer to examine its fuel and take a sample of it

(a) when the operator is a person who regularly purchases or uses marked or coloured gasoline;

(b) when the officer has reasonable grounds to believe that the operator is using marked or coloured gasoline for an unlawful purpose; or

(c) when the vehicle is being operated in an area of the province where marked or coloured gasoline is ordinarily used or made available for use.

The operator must then immediately bring the vehicle to a safe stop and allow the officer to make the examination and take the sample.

24          The following is added after section 26 and before the centered heading that follows that section:

Refund of overpayment

26.1(1)     A person is entitled to a refund, without interest, of an amount paid as tax under this Act if

(a) the amount was not required to be paid or remitted and is not otherwise refundable; and

(b) the person applies to the minister for the refund within two years after the day the amount was paid or remitted.

No other right of recovery

26.1(2)     No person has a right of action or other remedy against the government for the recovery of an amount paid or remitted as tax under this Act, unless the person is entitled under this Act to a refund of the amount.

25          Section 39 is amended

(a) by replacing clause (f) with the following:

(f) prescribing information to be set out in licences or permits;

(b) by repealing clauses (g), (n), (s),(aa) and (cc) and subclause (ff)(vi);

(c) by replacing clause (h) with the following:

(h) respecting refunds;

(d) by replacing clause (r) with the following:

(r) respecting application procedures and reporting requirements;

(e) by replacing clause (dd) with the following:

(dd) respecting competition assistance grants under subsection 38(1);

(f) by adding the following after clause (ff):

(gg) for the purpose of clause 10(17)(c), respecting the disclosure of non-financial information by persons employed in the administration of this Act.

PART 3

THE HEALTH AND POST SECONDARY EDUCATION TAX LEVY ACT

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

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

27          Subsection 19(1) is replaced with the following:

Information confidential

19(1)       No person employed in the administration of this Act shall disclose to any person any personal or confidential information obtained under this Act, except

(a) to the extent required for the administration or enforcement of this Act or any other Act of the Legislature that imposes a tax or levy;

(b) as required or permitted under Part 5 of The Electronic Commerce and Information Act or under a regulation or agreement made under that Part; or

(c) as permitted under subsection (2) or the regulations.

28          Subsection 21.1(1) is amended by striking out "receiving the notice of the assessment" and substituting "the third business day following the day the notice of assessment is mailed to the employer".

29          Subsection 22(1) is amended by striking out "receipt of the notice of the decision of the commission" and substituting "the third business day following the day the notice of the commission's decision is mailed to the employer".

30          The following is added after section 22:

Interpretation

22.1        For the purpose of subsections 21.1(1) and 22(1):

(a) a mailed notice is to be presumed to have been mailed on the date of the notice; and

(b) "business day" means any day other than a Saturday or a holiday.

31          Section 25 is replaced with the following:

Refund of overpayment

25(1)       A person is entitled to a refund, without interest, of an amount paid as tax under this Act if

(a) the amount was not payable and is not otherwise refundable; and

(b) the person applies to the minister for the refund within two years after the day the amount was paid.

No other right of recovery

25(2)       No person has a right of action or other remedy against the government for the recovery of an amount paid as tax under this Act, unless the person is entitled under this Act to a refund of the amount.

32          Subsection 38(1) is amended by adding the following after clause (i):

(j) for the purpose of clause 19(1)(c), respecting the disclosure of non-financial information by persons employed in the administration of this Act.

PART 4

THE INCOME TAX ACT

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

33          The Income Tax Act is amended by this Part.

34(1)       Subsection 4(1) is amended in Rule 1 by striking out "and" at the end of subclause (b)(ii) and by replacing subclause (b)(iii) with the following:

(iii) under subsection 4.1(2.1) for the 2003 taxation year, and

(iv) under subsection 4.1(2.2) for the 2004 and subsequent taxation years.

34(2)       Subsection 4(1) is amended in Rule 7 by striking out "and" at the end of clause (e), by adding "and" at the end of clause (f), and by adding the following after clause (f):

(g) if the individual is not a trust, the individual's community enterprise development tax credit for the year determined under section 11.8.

35(1)       Subsection 4.1(2.1) is amended

(a) in the section heading, by striking out "and subsequent taxation years" and substituting "taxation year"; and

(b) in the section, by striking out "and for each subsequent taxation year".

35(2)       The following is added after subsection 4.1(2.1):

Basic tax payable — 2004 and subsequent taxation years

4.1(2.2)    An individual's basic tax payable for the 2004 taxation year and for each subsequent taxation year is the amount determined according to the following table:

Taxable income (TI) Basic tax payable (BT)
$30,544. or less BT = 10.9% x TI
more than $30,544. but not more than $65,000. BT = $3,329. + 14% x (TI - $30,544.)
more than $65,000. BT = $8,153. + 17.4% x (TI - $65,000.)

35(3)       Subsection 4.1(3) is amended by striking out "(2.1)" and substituting "(2.2)".

36(1)       Subsection 4.6(10) is amended in the part before clause (a) by adding "was resident in Manitoba on the last day of the taxation year and who" after "An individual who".

36(2)       Subsections 4.6(12) and (13) are replaced with the following:

Dependant disability amount

4.6(12)     An individual who is entitled to deduct an amount in respect of another person under subsection 118.3(2) of the federal Act for the taxation year may claim the amount determined by the following formula:

A - B/.109

In this formula,

A   is the other person's disability amount for the year under subsection (11); and

B   is the amount that would be the other person's tax payable under this Act for the year if the only amounts claimed by the other person under this section were the amounts claimable under subsections (3) to (10).

For this purpose, if the other person was not resident in Manitoba at the end of the taxation year, this formula must be applied as if he or she were.

Unused tuition and education amount

4.6(13)     An individual who is entitled to deduct an amount under subsection 118.61(2) of the federal Act may claim an amount equal to the lesser of

(a) the amount that would be the individual's tax payable under this Act for the taxation year if the only amounts claimed under this section were the amounts claimable under subsections (3) to (12); and

(b) the individual's unused tuition and education amount at the end of the preceding taxation year.

For this purpose, an individual's unused tuition and education amount at the end of a taxation year is the amount determined by the following formula:

A + (B - C/.109) - (D + E)

In this formula,

A   is

(a) the individual's unused tuition and education amount at the end of the preceding taxation year, or

(b) if the individual was not resident in Manitoba at the end of that year, the individual's unused tuition and education tax credits at the end of that year determined under section 118.61 of the federal Act and divided by .16;

B   is the individual's tuition and education amount for the year determined under subsection (14);

C   is the lesser of

(a) B multiplied by .109, and

(b) the amount that would be the individual's tax payable under this Act for the year if the only amounts claimed under this section were the amounts claimable under subsections (3) to (12);

D   is the amount claimable by the individual under this subsection for the preceding taxation year; and

E   is the tuition and education amount transferred for the year by the individual under subsection (14.1).

36(3)       Subsection 4.6(14) is amended by replacing the formula and its description with the following:

(A + B)/.16

In this formula,

A   is the amount deducted by the individual for the year under subsection 118.5(1) of the federal Act; and

B   is the amount that would be deductible by the individual for the year under subsection 118.6(2) of the federal Act if, in the description of B in that subsection,

(a) the dollar amount set out in clause (a) were $400., and

(b) the dollar amount set out in clause (b) were $120.

36(4)       The following is added after subsection 4.6(14):

Transfer of tuition and education amount

4.6(14.1)   For the purpose of subsections (15) and (16), the tuition and education amount transferred by an individual to a person (the "transferee") to whom the individual transferred related tuition and education tax credits for the purpose of section 118.8 or 118.9 of the federal Act is the amount that the individual designates in writing for the year for the purpose of subsection (15) or (16), not exceeding the amount determined by the following formula:

(A - B)/.109

In this formula,

A   is the lesser of

(a) $545., and

(b) the individual's tuition and education amount for the year determined under subsection (14), multiplied by .109; and

B   is the amount that would be the individual's tax payable under this Act for the year if

(a) he or she were resident in Manitoba at the end of the taxation year, and

(b) the only amounts claimed by individual for the year under this section were the amounts claimable under subsections (3) to (13).

But if the individual is resident in another province on the last day of the taxation year, the amount transferred cannot exceed the maximum tuition and education amount of the individual determined under subsection (14) that could be applied to reduce the tax payable by the transferee for the year under the income tax law of that province if he or she were resident in that province on the last day of the taxation year and his or her tax otherwise payable exceeded the amount of any credit arising from the transferred amount.

36(5)       Subsections 4.6(15) and (16) are replaced with the following:

Tuition and education amounts transferred from child

4.6(15)     An individual who is entitled to deduct an amount under section 118.9 of the federal Act in respect of tuition and education tax credits transferred for the year from his or her child or grandchild may claim an amount equal to the tuition and education amount transferred for the year by the child or grandchild.

Amounts transferred from spouse or common-law partner

4.6(16)     An individual who is entitled to deduct an amount under section 118.8 of the federal Act for the taxation year may claim the amount determined by the following formula:

A + B - C

In this formula,

A   is the tuition and education amount, if any, transferred to the individual for the year by his or her spouse or common-law partner;

B   is the total of the spouse's or common-law partner's

(a) age amount for the year determined under subsection (4),

(b) pension income amount for the year determined under subsection (10), and

(c) disability amount for the year determined under subsection (11);

C   is the amount determined by the following formula:

(D - E)/.109

In this formula,

D   is the amount that would be the spouse's or common-law partner's tax payable under this Act for the year if the only amounts claimed by him or her under this section were the amounts claimable under subsections (3), (9) and (13), and

E   is the lesser of

(a) the spouse's or common-law partner's tuition and education amount for the year determined under subsection (14) multiplied by .109, and

(b) the amount that would be the spouse's or common-law partner's tax payable under this Act for the year if the only amounts claimed by him or her under this section were the amounts claimable under subsections (3) to (13).

36(6)       Subsection 4.6(17) is amended in the part after the formula by striking out everything after "A is the amount" and substituting" that would be deductible by the individual under that subsection if

(a) it were computed with respect to the same medical expenses with respect to which the individual deducted an amount under that subsection;

(b) the amount determined for C in the formula were the lesser of $1,728. and 3% of the individual's income for the year; and

(c) in determining the amount D in the formula,

(i) "68%" were read as "32%", and

(ii) the amount determined by paragraph (b) of the description of D were the individual's basic personal amount under subsection (3)."

37          Subsection 4.7(1) is amended in the part before clause (a) by striking out "An individual's dividend tax credit for a taxation year" and substituting "The dividend tax credit for a taxation year of an individual who was resident in Manitoba at the end of the year".

38          Section 4.8 is amended by striking out "An individual's overseas employment tax credit for a taxation year" and substituting "The overseas employment tax credit for a taxation year of an individual who was resident in Manitoba at the end of the year".

39(1)       Clause 4.10(2)(b) is amended

(a) in subclause (vii), by striking out "section 118.8 of the federal Act" and substituting "subsection 4.6(16)"; and

(b) in subclause (viii),

(i) by striking out "section 118.8 of the federal Act" and substituting "subsection 4.6(16)", and

(ii) by striking out "subsection 118(2) of that Act" and substituting "subsection 4.6(4)".

39(2)       Clause 4.10(3)(d) is amended

(a) by striking out "section 118.8 of the federal Act" and substituting "subsection 4.6(16)"; and

(b) by striking out "that Act" and substituting "this Act".

40          Clause (d) of the definition "dwelling unit cost" in section 5.3 is amended by striking out "section 118.2 of the federal Act" and substituting "subsection 4.6(17)".

41          Subsection 5.4(4) is amended

(a) by striking out "$775." and substituting "$800."; and

(b) by striking out "$375." and substituting "$400.".

42(1)       Clause 5.7(1)(b) is amended by striking out everything after "under" and substituting "subsection 4.6(5), (6), (7), (11), (12) or (16) or subclause 4.10(2)(b)(ii)".

42(2)       The description of A in the formula in subsection 5.7(2) is amended

(a) in subclause (b)(i), by striking out "paragraph 118(1)(a) of the federal Act" and substituting "subsection 4.6(5)";

(b) in subclause (b)(ii), by striking out "paragraph 118(1)(b) of the federal Act" and substituting "subsection 4.6(6)";

(c) in clause (c), by striking out "paragraph 118(1)(d) of the federal Act" and substituting "subsection 4.6(7)";

(d) in subclause (e)(ii), by striking out "118.3(1) of the federal Act" and substituting "4.6(11)";

(e) in subclause (e)(iii), by striking out "118.3(2) of the federal Act" and substituting "4.6(12)";

(f) in subclause (e)(iv), by striking out "section 118.8 of the federal Act" and substituting "subsection 4.6(16)"; and

(g) in subclause (e)(v),

(i) by striking out "section 118.8 of the federal Act" and substituting "subsection 4.6(16)", and

(ii) by striking out "subsection 118(2) of that Act" and substituting "subsection 4.6(4)".

42(3)       Clause 5.7(3)(b) is amended

(a) by striking out "section 118.8 of the federal Act" and substituting "subsection 4.6(16)"; and

(b) by striking out "that Act" and substituting "this Act".

43          Subsections 7(1) to (4) are replaced with the following:

Tax payable by corporation

7(1)        Subject to subsection (2), the tax payable under section 3 by a corporation for a taxation year is the total of all amounts, each of which is the amount determined by the following formula for a period in subsection (3) any part of which falls within the taxation year:

tax payable = T x R x Dp/Dy

In this formula,

T   is corporation's taxable income earned in Manitoba for the taxation year;

R   is the applicable tax rate for the period as set out in subsection (3);

Dpis the number of days in the taxation year that fall within the period; and

Dyis the number of days in the taxation year.

Small business deduction

7(2)        If the corporation claims a small business deduction for the taxation year under section 125 of the federal Act, there may be deducted from its tax otherwise payable under this Act an amount equal to the total of all amounts each of which is the small business deduction determined by the following formula for a period referred to in subsection (1):

D = L x R x (Dp/Dy) x (Tm/Tc)

In this formula,

D   is the small business deduction for the period;

L   is the least of

(i) the amount that would be determined for the taxation year under paragraph 125(1)(a) of the federal Act if the dollar amounts specified in clauses (i) and (ii) of the description of M in the definition "specified partnership income" in subsection 125(7) of that Act were the M(i) and M(ii) amounts specified for the period in subsection (3.1),

(ii) the amount determined under paragraph 125(1)(b) of the federal Act for the taxation year, and

(iii) the proportion of the business limit for the period specified in subsection (3.1) that

(A) the corporation's business limit for the year under section 125 of the federal Act,

is of

(B) the amount that would be its business limit under that section if it were not associated in the year with any other corporation;

R   is the small business deduction rate for the period as set out in subsection (3);

Dpis the number of days in the taxation year that fall within the period;

Dyis the number of days in the taxation year;

Tmis the corporation's taxable income earned in Manitoba for the taxation year; and

Tcis the corporation's taxable income earned in Canada for the taxation year.

Tax and small business deduction rates

7(3)        For the purposes of subsections (1) and (2), the tax and small business deduction rates are as follows:

Period Tax Rate SBD Rate
calendar year after 1988 and before 1994 17% 7%
calendar year 1994 17% 7.5%
Jan.1, 1995 to June 30, 1999 17% 8%
July 1, 1999 to Dec. 31, 1999 17% 9%
calendar year 2000 17% 10%
calendar year 2001 17% 11%
calendar year 2002 16.5% 11.5%
calendar year 2003 16% 11%
calendar year 2004 15.5% 10.5%
calendar year after 2004 15% 10%

Business limit and specified amounts

7(3.1)      For the purpose of subsection (2), the business limits and the M(i) and M(ii) amounts are as follows:


Period
Business limit and M(i) amount M (ii) amount
period before 2002 $200,000. $548.
calendar year 2002 $300.000. $822.
calendar year 2003 $320,000. $877.
calendar year 2004 $360,000. $986.
calendar year after 2004 $400,000. $1,096.

Small business deduction for credit union

7(4)        In applying subsection (2) to a credit union, if the lesser of

(a) the credit union's taxable income for the year; and

(b) the amount, if any by which 4/3 of its maximum cumulative reserve, as defined in subsection 137(7) of the federal Act, at the end of the year exceeds its preferred-rate amount at the end of the immediately preceding year;

exceeds L in the formula in subsection (2), the excess amount shall be added to L.  For the purpose of clause (b), the credit union's preferred-rate amount is the preferred-rate amount that would be determined under subsection 137(4.3) of the federal Act if the amount deductible under section 125 of that Act were the amount deductible under subsection (2).

Tax rate for guarantee corporation

7(4.01)     Despite subsection (1), the rate of tax to be applied to the taxable income of a guarantee corporation, as defined in The Credit Unions and Caisses Populaires Act, for a taxation year beginning after 2002 is 5%.  For greater certainty, no part of the income of such a corporation is eligible for a deduction under subsection (2).

44(1)       Subsection 7.2(2) is amended

(a) in clauses (a) and (b) of the definition "investment tax credit", by striking out "without reference to subsection 13(7.1) of the federal Act" and substituting "with reference to paragraphs 127(11.1)(b) and (d) of the federal Act, but without treating the investment tax credit as government assistance under those provisions"; and

(b) by replacing the definition "qualified property" with the following:

"qualified property" of a corporation means property that was acquired by the corporation before July 1, 2006, and

(a) is qualified property, as defined in subsection 127(9) of the federal Act (having regard to subsection 127(11) of that Act), that was acquired by the corporation after March 11, 1992, and is

(i) to be used by the corporation in Manitoba primarily for manufacturing or processing goods for sale or lease, or

(ii) to be leased by the corporation — in the ordinary course of its principal business in Manitoba of manufacturing property for sale or lease — to a lessee who is not exempt from tax under section 149 of the federal Act and who can reasonably be expected to use the property in Manitoba primarily for manufacturing or processing goods for sale or lease, or

(b) is Class 43.1 property under the federal regulations that was acquired by the corporation after April 22, 2003, was not used — or acquired for use or lease — for any purpose whatever before it was acquired by the corporation, and is

(i) to be used by the corporation in Manitoba for producing energy — or for conserving or reducing the need to acquire energy — primarily for use in its business in Manitoba of manufacturing or processing goods for sale or lease, or

(ii) to be leased by the corporation — in the ordinary course of its principal business in Manitoba of manufacturing goods for sale or lease — to a lessee who is not exempt from tax under section 149 of the federal Act and who can reasonably be expected to use the property in Manitoba for producing energy — or for conserving or reducing the need to acquire energy — primarily for use in its business in Manitoba of manufacturing or processing goods for sale or lease; (« biens admissibles »)

44(2)       The following is added after subsection 7.2(2):

Transitional

7.2(2.1)    In applying the definition "investment tax credit" to a taxation year ending before April 23, 2003, no amount shall be included in respect of the capital cost of Class 43.1 property under the federal regulations that was acquired on or after that day.

45          Subsection 7.5(1) is amended in clause (b) of the definition "government assistance" by striking out "Manitoba Film & Sound Development" and substituting "Manitoba Film and Sound Recording Development".

46          Subsection 7.6(1) is amended in the description of A in the formula by adding "and before March 2, 2005" after "for the year".

47          Section 7.12 is amended by striking out "7.12" in clauses (a), (a.1), (d) and (e) and substituting "7.11".

48          The following is added before Division III of Part I:

Co-operative Education Tax Credit

Co-operative education tax credit

10.1(1)     Subject to subsection (3), a corporation may deduct from its tax otherwise payable under this Act for a taxation year, for each qualifying work placement for which the corporation paid salary or wages and that ended in the taxation year and before 2006, the amount determined for C in the following formula:

C = W x A/B

In this formula,

C   is the amount deductible by the corporation for the year for the work placement;

W   is the maximum credit determined under subsection (2) for the work placement;

A   is the total salary and wages paid by the corporation for the work placement, including, if they were paid by a partnership in which the corporation is a general partner, the corporation's pro rata share of the salary and wages so paid by the partnership; and

B   is the total salary and wages paid for the work placement.

Maximum credit for work placement

10.1(2)     The maximum credit for a qualifying work placement is the least of the following amounts:

(a) $1,000.;

(b) 10% of the total salary or wages paid to the employee under that work placement for work performed primarily in Manitoba; and

(c) the amount, if any, by which $5,000. exceeds the total of the amounts determined under this subsection for previous qualifying work placements of the same individual, or any greater amount approved by the minister for that individual.

Proof of credit

10.1(3)     A corporation is not entitled to a credit under this section for a taxation year unless it files with its return for the year a statement issued under subsection (4).

Minister may issue statement

10.1(4)     The Minister of Finance for Manitoba or a person authorized by him or her for the purpose may issue to a corporation, upon application in accordance with the regulations, a statement certifying that the work placement for which the corporation intends to claim a credit under this section is a qualifying work placement.

Regulations

10.1(5)     The Lieutenant Governor in Council may make regulations

(a) defining "qualifying work placement";

(b) respecting statements to be issued under subsection (4), and applications for such statements;

(c) respecting the maintenance of books and records, and the provision of information or access to information, for the purpose of verifying the validity of a claim for a co-operative education tax credit under this section;

(d) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out the intent and purpose of this section.

49          The following heading is added before section 11.1:

LABOUR-SPONSORED FUNDS TAX CREDIT

50          The following heading is added before section 11.6:

MANITOBA EQUITY TAX CREDIT

51          The following heading is added before section 11.7:

MINERAL EXPLORATION TAX CREDIT

52          The following is added after section 11.7:

COMMUNITY ENTERPRISE DEVELOPMENT TAX CREDIT

Definitions

11.8(1)     In this section and sections 11.9 to 11.12,

"CED tax credit" of an individual for a taxation year means the individual's community enterprise development tax credit determined under subsection (2) for the year; (« crédit d'impôt pour l'expansion des entreprises dans les collectivités »)

"CED tax credit receipt" means a receipt, in a form authorized by the responsible minister, that contains prescribed information concerning an eligible investment issued to an individual or a qualifying trust for an individual; (« reçu relatif au crédit d'impôt pour l'expansion des entreprises dans les collectivités »)

"eligible investment" means an eligible investment as defined in the regulations; (« placement admissible »)

"individual" does not include

(a) a trust, or

(b) an individual acting in his or her capacity as an investment dealer under The Securities Act; (« particulier »)

"issuer" means a person, partnership or trust that issues an eligible investment to an individual or to a qualifying trust for an individual; (« émetteur »)

"qualifying trust" in relation to an individual means a trust governed by

(a) a registered retirement savings plan or registered retirement income fund of the individual, unless it is a spousal plan, or

(b) a spousal plan in relation to the individual; (« fiducie admissible »)

"responsible minister" means the minister appointed by the Lieutenant Governor in Council to administer sections 11.8 to 11.12. (« ministre responsable »)

Tax credit

11.8(2)     An individual's community enterprise development tax credit for a taxation year ending after 2002 and before 2006 is the lesser of $9000. and the total of the following amounts:

(a) the lesser of $9000. and 30% of all amounts each of which is the cost to the individual, or to a qualifying trust for the individual, of an eligible investment acquired in the year and after April 22, 2003, by the individual or the qualifying trust;

(b) the individual's unused CED tax credit for the immediately preceding seven taxation years; and

(c) the individual's unused CED tax credit for the immediately following three taxation years.

Interpretation

11.8(3)     For the purpose of subsection (2),

(a) if the individual or qualifying trust irrevocably subscribed and paid for an eligible investment before acquiring it, the acquisition of it is deemed to have occurred when it was irrevocably subscribed and paid for;

(b) the individual's unused CED tax credit for the immediately preceding seven taxation years is the amount, if any, by which

(i) the total of all amounts each of which is the amount determined under clause (2)(a) for one of those preceding years,

exceeds

(ii) the total of all amounts each of which is the amount that would be determined under Rule 7 of subsection 4(1) for one of those preceding years if the individual's CED tax credit for that preceding year were nil; and

(c) the individual's unused CED tax credit for the immediately following three taxation years is the amount, if any, by which

(i) the total of the amounts each of which is the amount determined under clause (2)(a) for one of those following years,

exceeds

(ii) the total of all amounts each of which is the amount that would be determined under Rule 7 of subsection 4(1) for one of those following years if the individual's CED tax credit for that following year were nil.

Issuer must provide receipt

11.8(4)     The issuer of an eligible investment to an individual or to a qualifying trust for an individual must provide a CED tax credit receipt to the individual no later than the 60th day after the end of the year in which the investment was acquired by the individual or trust.

Proof of credit

11.8(5)     An individual is not entitled to a credit under this section unless the amount for which the credit is claimed is proven by filing a CED tax credit receipt with the Minister of National Revenue.

Use of eligible investment proceeds

11.9(1)     The issuer of an eligible investment must use or invest the proceeds of the issuance in accordance with the regulations.

Minister may assess penalty

11.9(2)     If satisfied that the issuer has not used or invested the proceeds in accordance with the regulations, the responsible minister may, by written order, require the issuer to pay to the Minister of Finance for Manitoba a penalty not exceeding 30% of the proceeds that were not used or invested as required.

Restriction on transfers

11.10       An eligible investment may not be transferred except as permitted by the regulations.

Recovery of credit on early redemption

11.11(1)    If an eligible investment is redeemed in circumstances described in subsection (2), the person who was the shareholder immediately before the redemption (referred to in this section as the "vendor") must pay a tax equal to the lesser of

(a) the CED tax credit of an individual in respect of the acquisition of the investment; and

(b) the amount that would, but for subsection (4), be payable to the vendor on the redemption.

Application of subsection (1)

11.11(2)    Subsection (1) applies when an eligible investment in respect of which a CED tax credit receipt was issued is redeemed less than three years after it was acquired, unless

(a) no CED tax credit has been claimed in respect of the eligible investment, and the CED tax credit receipt for the investment has been returned to the issuer; or

(b) the redemption occurs at the written request of the vendor and

(i) the investment devolved on the vendor as a consequence of the death of the individual who held the investment or who was the annuitant under a registered retirement savings plan or registered retirement income fund that held the investment, or

(ii) the corporation is notified in writing that the individual to whom the CED tax credit receipt was issued in respect of the investment became disabled and permanently unfit for work, or terminally ill, after the investment was acquired, and the vendor is

(A) that individual, or his or her current or former spouse or common-law partner, or

(B) a registered retirement savings plan or registered retirement income fund under which the individual, spouse or common-law partner is the annuitant.

Withholding and remittance of tax

11.11(3)    Where tax is payable under subsection (1) in respect of the redemption, acquisition or cancellation of an eligible investment by the issuer within three years after it was issued, the issuer must

(a) withhold the amount of the tax from the amount otherwise payable to the vendor;

(b) issue to the vendor a receipt showing the amount of tax withheld;

(c) within 30 days after the transaction, remit the withheld amount to the Minister of Finance for Manitoba on behalf of the vendor; and

(d) submit with the remitted amount a statement, in a form authorized by the responsible minister, containing prescribed information.

Liability for tax

11.11(4)    An issuer who fails to withhold and remit an amount as required by subsection (3) is liable to pay the amount to the Minister of Finance for Manitoba on behalf of the vendor, and is entitled to recover the amount so paid from the vendor.

Interpretation of "redeemed"

11.11(5)    For the purpose of this section, an eligible investment is redeemed when it is redeemed, acquired or cancelled by the issuer of the investment or is acquired by a person who does not deal with the issuer at arm's length.

Regulations

11.12(1)    The Lieutenant Governor in Council may make regulations

(a) defining "eligible investment" and any other term used but not defined in sections 11.8 to 11.11;

(b) respecting the use or investment of the proceeds of issuing eligible investments;

(c) establishing recordkeeping and reporting requirements for issuers;

(d) prescribing information to be included on receipts to be issued to investors;

(e) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the proper administration of the CED tax credit.

Administration and enforcement

11.12(2)    For the purpose of administering and enforcing sections 11.8 to 11.11, the responsible minister and any person authorized for the purpose by him or her has all the powers conferred by this Act on the Minister of Finance for Manitoba or the Minister of National Revenue in relation to the administration or enforcement of any other provision of this Act.

Delegation

11.12(3)    The responsible minister may delegate to one or more persons employed in the government any power conferred or duty imposed on the responsible minister under this section or sections 11.8 to 11.11, or under the regulations made under this section.

PART 5

THE MINING TAX ACT

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

53          The Mining Tax Act is amended by this Part.

54          The definition "mineral" in subsection 1(1) is amended by adding "or" at the end of clause (g) and by adding the following after clause (g):

(h) salt;

55          The following is added after section 16:

Refund of overpayment

16.1(1)     An operator is entitled to a refund, without interest, of an amount paid as tax under this Act if

(a) the amount was not payable and is not otherwise refundable; and

(b) the operator applies to the minister for the refund within two years after the day the amount was paid.

No other right of recovery

16.1(2)     No operator has a right of action or other remedy against the government for the recovery of an amount paid as tax under this Act, unless the operator is entitled under this Act to a refund of the amount.

56          Subsection 18(2) is amended

(a) by striking out ", in a form prescribed in the regulations,"; and

(b) in the English version, by striking out "payable; and he" and substituting "payable. The minister".

57          Subsection 22(1) is amended by striking out "prescribed in the regulations" and substituting "authorized by the minister".

58          Subsection 29(1) is replaced with the following:

Information confidential

29(1)       No person employed in the administration of this Act shall disclose to any person any personal or confidential information obtained under this Act, except

(a) to the extent required for the administration or enforcement of this Act or any other Act of the Legislature that imposes a tax or levy;

(b) as required or permitted under Part 5 of The Electronic Commerce and Information Act or under a regulation or agreement made under that Part; or

(c) as permitted under subsection (2) or the regulations.

59          Subsection 31.1(1) is amended by striking out "the date on which" and substituting "the third business day following the day".

60          Subsection 32(1) is amended by striking out "receipt of the notice of the decision of the commission" and substituting "the third business day following the day the notice of the commission's decision is mailed to the operator".

61          Section 32.1 is replaced with the following:

Date of mailing

32.1        For the purpose of sections 31, 31.1 and 32:

(a) a mailed notice is to be presumed to have been mailed on the date of the notice; and

(b) "business day" means any day other than a Saturday or a holiday.

62          Section 45 is amended

(a) by repealing clause (a); and

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

(d) for the purpose of clause 29(1)(c), respecting the disclosure of non-financial information by persons employed in the administration of this Act.

S.M. 1994, c. 23 amended

63          Clause 18(a) of The Statute Law Amendment Taxation Act, 1994, S.M. 1994, c. 23, is repealed.

PART 6

THE MOTIVE FUEL TAX ACT

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

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

65          Section 1 is amended

(a) in the definition "carrier", by striking out "commercial"; and

(b) in the part before clause (a) of the definition "qualified motor vehicle", by striking out "commercial".

66          Subsection 5(9) is amended by striking out everything after "refine motive fuel" and substituting "must apply to the minister, in a form authorized by the minister, for such a licence."

67          Subsection 6(6) is amended by striking out "on a form prescribed by the regulations" and substituting ", in a form authorized by the minister,".

68          Subsection 7(1) is replaced with the following:

Issue of licences and permits

7(1)        The minister may issue any licence or permit required or authorized by this Act and containing such information as the regulations require. The minister may issue it subject to any terms or conditions not inconsistent with this Act and the regulations.

69(1)       Clause 11(3)(a) is amended by striking out everything after "report to the minister" and substituting "in accordance with the regulations and in a form authorized by the minister; and".

69(2)       Clause 11(4)(a) is amended by striking out everything after "report to the minister" and substituting "in accordance with the regulations and in a form authorized by the minister; and".

69(3)       The following is added after subsection 11(17):

Information confidential

11(18)      No person employed in the administration of this Act shall disclose to any person any personal or confidential information obtained under this Act, except

(a) to the extent required for the administration or enforcement of this Act or any other Act of the Legislature that imposes a tax or levy;

(b) as required or permitted under Part 5 of The Electronic Commerce and Information Act or under a regulation or agreement made under that Part; or

(c) as permitted under subsection (16) or the regulations.

70          Subsection 13(1) is amended by striking out everything after "by a return" and substituting "in a form authorized by the minister and containing such information as the regulations require."

71          Subsection 17(10) is amended by striking out ", in a form prescribed by the regulations,".

72          The following is added after section 18:

Deemed trust

18.1(1)     Property of a collector, and property held by a secured creditor that but for a security interest would be property of the collector, equal in value to the tax required to be collected is, from the time it is required to be collected until it is remitted, deemed

(a) to be held in trust for, and beneficially owned by, Her Majesty in right of Manitoba;

(b) to be held separate and apart from other property of the collector and other property that but for a security interest would be property of the collector; and

(c) to form no part of the estate or property of the collector.

These rules apply to property even if it is subject to a security interest and even if the security interest arose before the coming into force of this subsection or before the tax was required to be collected.

Priority

18.1(2)     Money held in trust under subsection (1), and the proceeds of any other property held in trust under that subsection, must be paid to the minister in priority to all security interests, including one that arose before the coming into force of this subsection or before the money or other property became subject to the trust.

Minister's certificate required before distribution

18.2(1)     Every person who, as assignee, liquidator, administrator, receiver, receiver-manager, secured or unsecured creditor, or agent of the creditor, trustee or other like person, takes control or possession of a collector's property must

(a) notify the minister in writing, within 30 days after taking possession or control of the property, that the person has taken control or possession of it; and

(b) before distributing the property or proceeds of the property, obtain from the minister a certificate confirming that all amounts required to be remitted by the collector, including any interest and penalties payable by the collector, have been paid or remitted or that security acceptable to the minister has been given.

Minister to advise of indebtedness

18.2(2)     As soon as practicable after receiving a notice from a person under clause (1)(a), the minister must advise the person of the amount required to be remitted by or on behalf of the collector, and the amount of any interest and penalties owing by the collector.

Liability for distribution without certificate

18.2(3)     A person who fails to obtain a certificate under clause (1)(b) before distributing property or proceeds is personally liable to Her Majesty in right of Manitoba for an amount equal to the lesser of

(a) the fair value, at the time of the distribution, of the property or proceeds distributed; and

(b) the amount that the collector is required to remit, plus any interest and penalties payable by the collector.

73          Subsection 20(1) is amended by striking everything after "production return" and substituting "in a form authorized by the minister and containing such information as the regulations require."

74          The following is added after subsection 22(3):

Vehicle stopping

22(3.1)     An officer referred to in subsection (3) may signal or request the operator of a motor vehicle to stop the vehicle to enable the officer to examine its fuel and take a sample of it

(a) when the operator is a person who regularly purchases or uses marked or coloured motive fuel;

(b) when the officer has reasonable grounds to believe that the operator is using marked or coloured motive fuel for an unlawful purpose; or

(c) when the vehicle is being operated in an area of the province where marked or coloured motive fuel is ordinarily used or made available for use.

The operator must then immediately bring the vehicle to a safe stop and allow the officer to make the examination and take the sample.

75          The following is added after section 26 and before the centered heading that follows that section:

Refund of overpayment

26.1(1)     A person is entitled to a refund, without interest, of an amount paid or remitted as tax under this Act if

(a) the amount was not required to be paid or remitted and is not otherwise refundable; and

(b) the person applies to the minister for the refund within two years after the day the amount was paid or remitted.

No other right of recovery

26.1(2)     No person has a right of action or other remedy against the government for the recovery of an amount paid or remitted as tax under this Act, unless the person is entitled under this Act to a refund of the amount.

76           Section 38 is amended

(a) by replacing clause (d) with the following:

(d) prescribing information to be set out in licences or permits;

(b) by repealing clauses (e), (l), (p), (u) and (v) and subclause (aa)(vi);

(c) by replacing clause (f) with the following:

(f) respecting refunds;

(d) by replacing clause (o) with the following:

(o) respecting application procedures and reporting requirements;

(e) by replacing clause (z) with the following:

(z) respecting competition assistance grants under subsection 37(1);

(f) by adding the following after clause (aa):

(bb) for the purpose of clause 11(18)(c), respecting the disclosure of non-financial information by persons employed in the administration of this Act.

PART 7

THE RETAIL SALES TAX ACT

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

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

78          Section 1 is amended

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

"RST number" means a retail sales tax number assigned under this Act; (« numéro de TVD »)

(b) in the definition "vendor", by replacing everything after clause (b) with "and includes a person who

(c) collects from a purchaser an amount paid as tax under this Act, or

(d) not being required to have an RST number, applies for and is issued an RST number otherwise than under subsection 5(6) (diplomat's RST number). (« marchand »)"

79(1)       Subsection 2(4) is amended in the part after clause (b) by striking out "such form" and substituting "a form authorized by the minister".

79(2)       Subsection 2(5.2) of the English version is amended by adding "of" after "in respect".

79(3)       Clause 2(8)(a) is replaced with the following:

(a) who does not have an RST number; and

80(1)       Clause 2.2(4)(f) is amended by striking out "who holds a registration certificate referred to in subsection 5(5)" and substituting "with an RST number issued under subsection 5(6) (diplomat's RST number)".

80(2)       Subsection 2.2(6) is amended

(a) in clause (a), by striking out "and a valid subsisting registration certificate issued under subsection 5(1) of this Act"; and

(b) in clause (d), by striking out "and holds a valid subsisting registration certificate required under subsection 5(1)".

81(1)       The definition "valeur imposable du véhicule" in subsection 2.3(1) of the French version is replaced with the following:

« valeur imposable du véhicule » La juste valeur marchande d'un véhicule au moment de son acquisition ou la valeur plus élevée qui :

a) dans le cas d'un achat, correspond au prix d'achat du véhicule;

b) dans le cas d'une location, est précisée dans le contrat de location à titre de prix d'achat.

La présente définition inclut les dépenses en immobilisations faites à l'égard du véhicule après son acquisition. ("vehicle taxable value")

81(2)       Subsection 2.3(12) is replaced with the following:

Vehicle ceasing to be part of fleet

2.3(12)      When a vehicle ceases to be registered as part of a fleet before the end of the fleet registration year, the minister may provide a credit or refund in accordance with the regulations for a portion of the tax paid under subsection (2) in respect of the vehicle for that year.

81(3)       Subsection 2.3(15) is replaced with the following:

Tax refund or credit

2.3(15)     When an amount is to be refunded or credited under this section, it is to be refunded or credited in accordance with the regulations.

82(1)       Subsection 3(1) is amended

(a) by adding the following after clause (cc);

(cc.1) straw pellets used as fuel for heating or cooking;

(b) in subclause (yy)(i), by striking out "2003" and substituting "2005".

82(2)       Subsection 3(17) is amended in the part after clause (c) by striking out "the number of his registration certificate issued in accordance with the regulations" and substituting "the person's RST number".

82(3)       Subsection 3(24) is replaced with the following:

Exemption for certain aircraft

3(24)       Despite section 2 and subsection (9), no tax is payable under this Act in respect of the purchase of an aircraft, or of parts for an aircraft, that

(a) is registered under the Aeronautics Act (Canada) as a state or commercial aircraft; and

(b) if registered as a commercial aircraft, is used solely for transporting passengers or tangible personal property for gain as an air service licensed under the Canada Transportation Act.

82(4)       Subsection 3(27.1) is amended in the part before clause (a) by striking out "2003" and substituting "2005".

82(5)       Clause 3(30)(b) is amended by striking out "who holds a subsisting registration certificate issued by the minister" and substituting "with an RST number".

83          Subsection 4(1) is amended

(a) in clause (b), by replacing subclauses (iii) and (iv) with the following:

(iii) in respect of a telecommunication that begins or ends on a transmitter that is ordinarily situated in the province, and is invoiced with respect to such a transmitter,

(iv) in respect of a telecommunication that begins within the province and is not taxed in any other jurisdiction, or

(v) for which the purchaser pays a specified amount of money and obtains a card or other means to access prepaid telecommunication services;

(b) by replacing clause (e) with the following:

(e) processing, assembling or installing tangible personal property, unless

(i) a retail sale of the property would be exempt from tax under this Act,

(ii) the sale price for the processing, assembly or installation is included in the sale price of the property, or

(iii) by the installation, the property is incorporated as part of real property and ceases to be tangible personal property;

(e.1) disassembling or uninstalling tangible personal property for assembly or installation at another location in Manitoba, unless

(i) a retail sale of the property would be exempt from tax under this Act, or

(ii) the property is being sold for use at the other location and the sale price includes the price of disassembling or uninstalling the property;

84          Section 5 is replaced with the following:

Vendors to have RST number

5(1)        No person without an RST number shall

(a) carry on business in Manitoba as a vendor; or

(b) collect tax on a sale to a purchaser.

Manufacturers and others to have RST number

5(2)        No person without an RST number shall carry on business in Manitoba as a manufacturer, wholesaler, importer or jobber, either directly or through an agent.

No fee for RST number

5(3)        No fee may be charged for issuing an RST number.

RST number not transferable

5(4)        An RST number is not transferable.

Proof of RST number

5(5)        A person who has or claims to have an RST number must produce for inspection, at the request of an officer referred to in subsection 17(1), the document issued by the minister setting out the person's RST number.

RST number for diplomat

5(6)        The minister may issue an RST number to an official of the Foreign Diplomatic Corps, a Consular Office or a Trade Commission who

(a) is at the established level of diplomatic privilege of Consul General, Trade Commissioner, Consul or Vice-Consul;

(b) is a citizen of the country he or she represents; and

(c) is not engaged in any other business or profession in Manitoba.

The official may present the RST number to a vendor to purchase property or services without paying tax under this Act, in which event the vendor must note the RST number on the sale invoice or other appropriate record.

85          Section 6 is replaced with the following:

Refusal to issue RST number

6(1)        The minister may by written order refuse to issue an RST number to a person who

(a) has been convicted of an offence under this Act;

(b) fails to enter into a bond when required to do so under section 11;

(c) fails to comply with any demand made by the director or the minister under this Act or the regulations; or

(d) in relation to an intoxicating substance or paraphernalia forfeited under section 27.4 of The Public Health Act, was in possession or control of it when it was seized.

Suspension

6(2)        If it is in the public interest to do so, the minister may by written order suspend a person's RST number for up to 30 days.  For the purposes of this Act, the person is deemed not to have an RST number during the suspension.

Cancellation

6(3)        The minister may by written order cancel a person's RST number for any reason for which the minister may refuse to issue an RST number under subsection (1).

Hearing

6(4)        Before cancelling a person's RST number or refusing to issue a person an RST number, the minister must serve the person with a notice

(a) stating the minister's intention to cancel or refuse to issue the RST number, and the reasons for doing so; and

(b) fixing a place, date and time for the person to appear before the minister to show why the minister should not cancel or refuse to issue the RST number.

The date for the hearing must not be earlier than one week after the day the notice is served, unless the person served consents to an earlier date.

Decision within 14 days

6(5)        The minister must make the decision within 14 days after the hearing.

Effective date of order

6(6)        An order under this section is not effective against a person until it is served on the person.

86(1)       Subsection 7(1) is replaced with the following:

Appeal

7(1)        A person served with an order under section 6 may appeal the order by application to a judge of the Court of Queen's Bench.

86(2)       Subsection 7(3) is amended by striking out "applicant or the holder of the registration certificate" and substituting "the appellant".

86(3)       Subsection 7(4) is replaced with the following:

Stay of minister's order

7(4)        The judge may, on application, stay the minister's suspension or cancellation order pending the hearing of the appeal.

87(1)       Subsection 12(1) is replaced with the following:

Returns

12(1)       Every vendor must make returns to the minister in accordance with the regulations and in a form authorized by the minister.

87(2)       Subsection 12(4) is replaced with the following:

Information confidential

12(4)       No person employed in the administration of this Act shall disclose to any person any personal or confidential information obtained under this Act, except

(a) to the extent required for the administration or enforcement of this Act or any other Act of the Legislature that imposes a tax or levy;

(b) as required or permitted under Part 5 of The Electronic Commerce and Information Act or under a regulation or agreement made under that Part; or

(c) as permitted under subsection (5) or the regulations.

88          Subsection 13(14) is amended by striking out ", in a form prescribed by the regulations,".

89          Subsection 17.1(1) is amended by striking out "receiving the notice of estimate or assessment" and substituting "the third business day following the day the notice of estimate or assessment is mailed to the person".

90          Subsection 18(1) is amended by striking out "receipt of the notice of the decision of the commission" and substituting "the third business day following the day the notice of the commission's decision is mailed to the appellant".

91          Subsection 19(2) is amended by striking out "of the date on which notice of the decision appealed from was given" and substituting "after the third business day following the day the notice of the decision appealed from is mailed to the appellant".

92          The following is added after section 19:

Interpretation

19.1        For the purpose of subsections 17.1(1), 18(1) and 19(2),

(a) a mailed notice is to be presumed to have been mailed on the date of the notice; and

(b) "business day" means any day other than a Saturday or a holiday.

93          Subsection 21(8) is amended by striking out everything after "by a return" and substituting "in a form authorized by the minister and containing such information as the regulations require."

94          Clause 24(1)(b) is amended by striking out "prescribed or required by this Act or by" and substituting "filed under this Act or".

95          Section 25 is repealed.

96          The following is added after subsection 26(2.2):

No interest on refunds

26(2.3)     Subject to subsection 19(6), no interest is payable on an amount required to be refunded under this Act.

No other right of recovery

26(2.4)     No person has a right of action or other remedy against the government for the recovery of an amount paid as tax under this Act, unless the person is entitled under this Act to a refund of the amount.

97          Subsection 28(2) is repealed.

98          Subsection 29(1) is amended

(a) in clause (a), by striking out "prescribing" and substituting "respecting";

(b) by repealing clause (p); and

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

(mm) for the purpose of clause 12(4)(c), respecting the disclosure of non-financial information by persons employed in the administration of this Act.

S.M. 1993, c. 46 amended

99          Subsection 79(3) and section 80 of The Statute Law Amendment (Taxation) Act, 1993, S.M. 1993, c. 46, are repealed.

S.M. 2000, c. 39 amended

100         Subsection 89(5) of The Statute Law Amendment (Taxation) Act, 2000, S.M. 2000, c. 39, is repealed.

S.M. 2002, c. 38 amended

101         Section 6 of The Public Health Amendment Act, S.M. 2002, c. 38, is repealed unless it comes into force before this Act receives royal assent.

PART 8

THE REVENUE ACT

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

102         The Revenue Act is amended by this Part.

103         Subsection 4(2) is replaced with the following:

Minister may issue licence

4(2)        The minister may issue a licence required by subsection (1) and containing such information as the regulations require. The minister may issue it subject to any terms or conditions not inconsistent with this Part and the regulations.

104         The following is added after subsection 5.1(2):

No interest on refunds

5.1(3)      No interest is payable on an amount required to be refunded under this section.

No other right of recovery

5.1(4)      No person has a right of action or other remedy against the government for the recovery of an amount paid as tax under this Act, unless the person is entitled under this Act to a refund of the amount.

105         Subsection 6(7) is amended by striking out everything after "to the minister" and substituting "in accordance with the regulations and in a form authorized by the minister."

106         The following is added after subsection 10(2):

Information confidential

10(3)       No person employed in the administration of this Part shall disclose to any person any personal or confidential information obtained under this Act, except

(a) to the extent required for the administration or enforcement of this Act or any other Act of the Legislature that imposes a tax or levy;

(b) as required or permitted under Part 5 of The Electronic Commerce and Information Act or under a regulation or agreement made under that Part; or

(c) as permitted under subsection (1) or the regulations.

107         Subsection 12(10) is amended by striking out ", in a form prescribed by the regulations,".

108         The following is added after section 12:

Deemed trust

12.1(1)     Property of a dealer, and property held by a secured creditor that but for a security interest would be property of the dealer, equal in value to the tax required to be collected is, from the time it is required to be collected until it is remitted, deemed

(a) to be held in trust for, and beneficially owned by, Her Majesty in right of Manitoba;

(b) to be held separate and apart from other property of the dealer and other property that but for a security interest would be property of the dealer; and

(c) to form no part of the estate or property of the dealer.

These rules apply to property even if it is subject to a security interest and even if the security interest arose before the coming into force of this subsection or before the tax was required to be collected.

Priority

12.1(2)     Money held in trust under subsection (1), and the proceeds of any other property held in trust under that subsection, must be paid to the minister in priority to all security interests, including one that arose before the coming into force of this subsection or before the money or other property became subject to the trust.

Minister's certificate required before distribution

12.2(1)      Every person who, as assignee, liquidator, administrator, receiver, receiver-manager, secured or unsecured creditor, or agent of the creditor, trustee or other like person, takes control or possession of a dealer's property must

(a) notify the minister in writing, within 30 days after taking possession or control of the property, that the person has taken control or possession of it; and

(b) before distributing the property or proceeds of the property, obtain from the minister a certificate confirming that all amounts required to be remitted by the dealer, including any interest and penalties payable by the dealer, have been paid or remitted or that security acceptable to the minister has been given.

Minister to advise of indebtedness

12.2(2)     As soon as practicable after receiving a notice from a person under clause (1)(a), the minister must advise the person of the amount required to be remitted by or on behalf of the dealer, and the amount of any interest and penalties owing by the dealer.

Liability for distribution without certificate

12.2(3)     A person who fails to obtain a certificate under clause (1)(b) before distributing property or proceeds is personally liable to Her Majesty in right of Manitoba for an amount equal to the lesser of

(a) the fair value, at the time of the distribution, of the property or proceeds distributed; and

(b) the amount that the dealer is required to remit, plus any interest and penalties payable by the dealer.

109         Subsection 24(1) is amended

(a) in clause (a), by striking out "prescribing" and substituting "respecting";

(b) in clause (j), by striking out "prescribing the form of" and substituting "respecting";

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

(k.1) for the purpose of clause 10(3)(c), respecting the disclosure of non-financial information by persons employed in the administration of Part 1 of this Act;

(d) by repealing clause (l).

110         Section 27 is amended by striking out "prescribed in the regulations" and substituting "authorized by the minister".

111         Clause 32(b) is repealed.

112         Subsection 47(7) is amended by striking out everything after "by a return" and substituting "in a form authorized by the minister."

PART 9

THE SUMMARY CONVICTIONS ACT

C.C.S.M. c. S230 amended

113         The Summary Convictions Act is amended by this Part.

114(1)      Section 1 is amended by adding the following definitions in alphabetical order:

"costs" means the total of the following amounts assessed against a person convicted of an offence:

(a) court costs,

(b) a surcharge under The Victims' Bill of Rights,

(c) a justice services surcharge; (« frais »)

"court costs" means court costs assessed under section 8; (« frais judiciaires »)

"justice services surcharge" means a surcharge assessed under section 8.1; (« amende supplémentaire relative aux services judiciaires »)

114(2)      Section 1 is amended by replacing the definition "fine" with the following:

"fine", except in section 21, means a monetary penalty imposed on a person convicted of an offence; (« amende »)

115(1)      The French version of the centred heading before section 6 is amended by striking out "ET DÉPENS".

115(2)      Subsection 6(2) is amended by adding "or costs" after "the fine" wherever it occurs.

115(3)      Subsections 6(3) and (4) are amended by adding "or costs" after "fine" wherever it occurs.

116(1)      Subsections 8(1) and (2) are amended in the section headings and in the subsections by striking out "costs" wherever it occurs and substituting "court costs".

116(2)      Subsection 8(3) is amended in the section heading and in the subsection by striking out "Costs" and substituting "Court costs".

116(3)      Subsection 8(4) is repealed.

117         The following is added after section 8:

Justice services surcharge

8.1(1)      A person who pleads guilty to or is found guilty of an offence under an Act of the Legislature, a by-law of a municipality, or a regulation, — other than an offence referred to in subsection 16(2) (parking offences) or an offence exempted by regulation — shall pay a justice services surcharge in addition to any other penalty imposed.

Amount of surcharge

8.1(2)      The amount of the justice services surcharge is the amount provided for in the regulations.

Justice may reduce or waive surcharge

8.1(3)      Despite subsections (1) and (2), a justice may reduce or waive the justice services surcharge, having regard to the person's circumstances, including the degree of financial hardship the surcharge would impose on him or her.

Collection of surcharge

8.1(4)      The justice services surcharge may be recovered in the same manner and with the same procedures as a fine imposed upon a person.

Application of payment

8.2         If a fine, or costs, or both, are imposed or assessed against a person, any money paid must be applied in the following order:

(a) first, to pay any court costs;

(b) second, to pay any surcharge under The Victims' Bill of Rights;

(c) third, to pay any justice services surcharge;

(d) last, to pay any fine.

118(1)      Subsection 10(1) is amended

(a) by striking out "a fine or compensation" and substituting "a fine, costs or compensation";

(b) by striking out "fine, compensation, or sum of money" wherever it occurs and substituting "fine, costs, compensation, or other sum of money"; and

(c) by striking out "with costs".

118(2)      Subsection 10(3) is amended by striking out "fine, compensation, or sum of money" and substituting "fine, costs, compensation, or other sum of money".

118(3)      Subsection 10(4) is amended by striking out "fines or penalties" and substituting "fines, costs or penalties".

119         Section 11 of the French version is amended by striking out "et dépens" wherever it occurs.

120         Section 12 is replaced with the following:

Additional time for payment

12          If a person who is ordered to pay a fine or costs in proceedings to which this Act applies asks the justice for time to make payment, the justice must allow the person at least 14 days to pay the amount ordered.

121         Subsection 12.1(1) is amended by adding "or costs, or both," after "order imposing a fine".

122(1)      Subsection 13(3) of the French version is amended by striking out "et dépens" in the section heading and wherever it occurs in the section.

122(2)      Subsection 13(4) of the French version is amended by striking out "et dépens".

123         Subsection 14(3) is amended by adding "and costs" after "impose a fine".

124(1)      Subsection 17(2.1) is amended in the part after clause (c) by adding "and costs" after "and the fine".

124(2)      Subsection 17(2.2) is amended by adding "and costs" after "fine" wherever it occurs.

124(3)      Subsection 17(11) is amended in the part before clause (a) by adding "or costs" after "payment of a fine".

124(4)      Subsections 17(2), (2.1), (3), (4), (5), (6) and (10) of the French version are amended by striking out "et dépens" wherever it occurs.

125         Subsection 17.1(1) of the French version is amended by striking out "et dépens".

126(1)      Subsections 19.1(1) and (1.1) are amended by adding "or costs" after "paid a fine".

126(2)      Subsection 19.1(2) is amended by striking out "the fine and any penalty" and substituting "the fine, costs, and any penalty".

126(3)      Subsection 19.1(4) is replaced with the following:

Exercise of registrar's powers

19.1(4)     Where the person does not pay the fine, costs and any penalty payable under subsection 17.1(1) on or before the date specified in the notice, the registrar may, without further notice to the person, and subject to subsection (6), exercise a power under subsection (1) or (1.1) until the fine, costs, any penalty payable under subsection 17.1(1) and the administrative fee under section 19.4 are paid.

126(4)      Subsection 19.1(6) is amended

(a) in the part before clause (a), by striking out "unpaid fine imposed" and substituting "unpaid fine or costs"; and

(b) in clause (b), by striking out "of a fine imposed" and substituting "in paying an amount ordered to be paid".

127         Clause 19.3(a) is amended by striking out "the fine is paid" and substituting "the fine, costs, any penalty payable under subsection 17.1(1) and the administrative fee under section 19.4 are paid".

128         The following is added after section 19.3:

Administrative fee

19.4        If the registrar has exercised a power under subsection 19.1(1) or (1.1) or 19.2(2) with respect to a person, that person shall pay an administrative fee in an amount prescribed by regulation in addition to the fine, costs and any penalty payable under subsection 17.1(1).

129(1)      Subsection 20(1) is amended by adding "and costs" after "the fine" wherever it occurs.

129(2)      Subsection 20(2) is amended

(a) in the part before clause (a), by adding "and costs" after "a fine";

(b) in the part after clause (c), by adding "and costs" after "the fine".

130         The following is added after subsection 21(5):

Definition: "fine"

21(6)       In this section, "fine" means a monetary penalty imposed on a person convicted of an offence and includes any court costs assessed against the convicted person.

131         Section 22 is amended by striking out "of a fine" and substituting "of a fine or costs".

132(1)      Subsection 23.1(1) is amended

(a) in the part before clause (a), by adding "and costs" after "a fine";

(b) in the part after clause (c), by adding "and costs" after "the fine".

132(2)      Subsection 23.1(2) is repealed.

132(3)      Subsection 23.1(4) is amended

(a) in the part before clause (a), by adding "and costs" after "following fines"; and

(b) in clauses (a) and (b) by adding "and costs" after "fines" wherever it occurs.

133         Subsection 23.2(2) is amended in clauses (a) and (d) by adding "and costs" after "parking fines".

134         Section 23.4 of the French version is amended by striking out "et dépens".

135         Section 30 is amended

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

(b.1) respecting justice service surcharges, including prescribing the amount of a surcharge or a method of calculating a surcharge, and prescribing offences for which no surcharge is payable;

(b) in the French version of clause (c), by striking out "et dépens"; and

(c) by adding the following after clause (d.1):

(d.2) prescribing the amount of an administrative fee for the purpose of section 19.4;

Consequential amendment, C.C.S.M. c. E160

136          The definition "fine" in section 19.2 of The Executions Act is amended

(a) by adding "court" before "costs" in clause (c); and

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

(c.1) a justice services surcharge imposed under The Summary Convictions Act,

Consequential amendment, C.C.S.M. c. G20

137         The definition "fine" in section 14.4 of The Garnishment Act is amended

(a) by adding "court" before "costs" in clause (c); and

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

(c.1) a justice services surcharge imposed under The Summary Convictions Act,

Transitional

138         A justice services surcharge may be assessed only with respect to an offence committed on or after January 1, 2004.

PART 10

THE TOBACCO TAX ACT

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

139         The Tobacco Tax Act is amended by this Part.

140         Subsection 2(1) is amended

(a) in clause (a), by striking out "14.5¢" and substituting "15.5¢";

(b) in clause (b), by striking out "45%" and substituting "60%";

(c) in clause (c), by striking out "$1.87" and substituting "$2.06";

(d) in clause (d), by striking out "13.2¢" and substituting "14.5¢";

(e) in subclause (e)(i), by striking out "$1.69" and substituting "$1.85"; and

(f) in subclause (e)(ii), by striking out "11.9¢" and substituting "13.0¢".

141         Subsection 4(6) is amended by striking out "the prescribed form" and substituting "a form authorized by the minister".

142         Subsection 5(1) is replaced with the following:

Minister may issue licence

5(1)        The minister may issue any licence required or authorized by this Act and containing such information as the regulations require. The minister may issue it subject to any terms or conditions not inconsistent with this Act and the regulations.

143         The following is added after subsection 9(16):

Information confidential

9(17)       No person employed in the administration of this Act shall disclose to any person any personal or confidential information obtained under this Act, except

(a) to the extent required for the administration or enforcement of this Act or any other Act of the Legislature that imposes a tax or levy;

(b) as required or permitted under Part 5 of The Electronic Commerce and Information Act or under a regulation or agreement made under that Part; or

(c) as permitted under subsection (15) or the regulations.

144         Section 11 is amended by striking out everything after "by a return" and substituting "in a form authorized by the minister and containing such information as the regulations require."

145         Subsection 13(8) is replaced with the following:

Refund of overpayment

13(8)       A person is entitled to a refund, without interest, of an amount paid or remitted as tax under this Act if

(a) the amount was not required to be paid or remitted and is not otherwise refundable; and

(b) the person applies to the minister for the refund within two years after the day the amount was paid or remitted.

No other right of recovery

13(9)       No person has a right of action or other remedy against the government for the recovery of an amount paid or remitted as tax under this Act, unless the person is entitled under this Act to a refund of the amount.

146         Subsection 14(12) is amended by striking out ", in a form prescribed by the regulations,".

147         The following is added after section 14.1:

Deemed trust

14.2(1)     Property of a collector, and property held by a secured creditor that but for a security interest would be property of the collector, equal in value to the tax required to be collected is, from the time it is required to be collected until it is remitted, deemed

(a) to be held in trust for, and beneficially owned by, Her Majesty in right of Manitoba;

(b) to be held separate and apart from other property of the collector and other property that but for a security interest would be property of the collector; and

(c) to form no part of the estate or property of the collector.

These rules apply to property even if it is subject to a security interest and even if the security interest arose before the coming into force of this subsection or before the tax was required to be collected.

Priority

14.2(2)     Money held in trust under subsection (1), and the proceeds of any other property held in trust under that subsection, must be paid to the minister in priority to all security interests, including one that arose before the coming into force of this subsection or before the money or other property became subject to the trust.

Minister's certificate required before distribution

14.3(1)     Every person who, as assignee, liquidator, administrator, receiver, receiver-manager, secured or unsecured creditor, or agent of the creditor, trustee or other like person, takes control or possession of a collector's property must

(a) notify the minister in writing, within 30 days after taking possession or control of the property, that the person has taken control or possession of it; and

(b) before distributing the property or proceeds of the property, obtain from the minister a certificate confirming that all amounts required to be remitted by the collector, including any interest and penalties payable by the collector, have been paid or remitted or that security acceptable to the minister has been given.

Minister to advise of indebtedness

14.3(2)     As soon as practicable after receiving a notice from a person under clause (1)(a), the minister must advise the person of the amount required to be remitted by or on behalf of the collector, and the amount of any interest and penalties owing by the collector.

Liability for distribution without certificate

14.3(3)     A person who fails to obtain a certificate under clause (1)(b) before distributing property or proceeds is personally liable to Her Majesty in right of Manitoba for an amount equal to the lesser of

(a) the fair value, at the time of the distribution, of the property or proceeds distributed; and

(b) the amount that the collector is required to remit, plus any interest and penalties payable by the collector.

148         Section 28 is amended

(a) by replacing clause (c) with the following:

(c) prescribing information to be set out in licences;

(b) by repealing clauses (d) and (m);

(c) by replacing clause (l) with the following:

(l) respecting records, reports or returns to be made or filed under this Act;

(d) by adding the following after clause (l.1):

(l.2) for the purpose of clause 9(17)(c), respecting the disclosure of non-financial information by persons employed in the administration of this Act;

PART 11

COMING INTO FORCE

Coming into force

149(1)      Except as otherwise provided in this section, this Act comes into force on the day it receives royal assent.

Part 1: The Corporation Capital Tax Act

149(2)      Section 2 is retroactive and is deemed to have come into force on April 20, 1994.

149(3)      Section 10 is retroactive and is deemed to have come into force on April 22, 2003.

Part 2: The Gasoline Tax Act

149(4)      Sections 14 and 24 are retroactive and are deemed to have come into force on April 22, 2003.

Part 3: The Health and Post Secondary Education Tax Levy Act

149(5)      Section 31 is retroactive and is deemed to have come into force on April 22, 2003.

Part 4: The Income Tax Act

149(6)      Subsection 34(2), sections 36 to 43 are retroactive and are deemed to have come into force on January 1, 2003 with respect to the 2003 and subsequent taxation years.

149(7)      Despite subsection (6), subsection 36(1) and sections 37 and 38 do not apply to the 2003 taxation year of a taxpayer whose return for the year was filed before the day the Bill to enact those provisions was given first reading in the Legislature.

149(8)      Sections 44, 48 and 52 are retroactive and are deemed to have come into force on April 23, 2003.

149(9)      Section 45 is retroactive and is deemed to have come into force on January 1, 1997.

149(10)     Section 46 is retroactive and is deemed to have come into force on April 23, 2002.

Part 5: The Mining Tax Act

149(11)     Section 55 is retroactive and is deemed to have come into force on April 22, 2003.

Part 6: The Motive Fuel Tax Act

149(12)     Sections 65 and 75 are retroactive and are deemed to have come into force on April 22, 2003.

Part 7: The Retail Sales Tax Act

149(13)     Section 81 is retroactive and is deemed to have come into force on March 1, 2001.

149(14)     Clause 82(1)(a) and section 96 are retroactive and are deemed to have come into force on April 22, 2003.

149(15)     Clause 82(1)(b) and subsection 82(4) are retroactive and are deemed to have come into force on July 1, 2003.

149(16)     Clause 6(1)(d) of The Retail Sales Tax Act, as enacted by section 85 of this Act, comes into on the day that section 2 of The Public Health Amendment Act, S.M. 2002, c. 38, comes into force, unless that section comes into force before this Act receives royal assent.

Part 8: The Revenue Act

149(17)     Section 104 is retroactive and is deemed to have come into force on April 22, 2003.

Part 9: The Summary Convictions Act

149(18)     Part 9 comes into force on January 1, 2004.

Part 10: The Tobacco Tax Act

149(19)     Sections 140 and 145 are retroactive and are deemed to have come into force on April 22, 2003.