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S.M. 2005, c. 40
Bill 44, 3rd Session, 38th Legislature
The Budget Implementation and Tax Statutes Amendment Act, 2005
(Assented to June 16, 2005)
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
1 The Corporation Capital Tax Act is amended by this Part.
2 Section 1 is amended
(a) by repealing the definitions "assessment", "commission", "prescribed" and "tax payable";
(b) by replacing the definition "minister" with the following:
"minister" means the Minister of Finance; (« ministre »)
(c) in the definition "return", by striking out "authorized by the minister" and "required by the minister".
3 The following is added after section 1:
Administration and enforcement
1.1 Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act.
4 Subsection 10.1(3) is amended by striking out "authorized by the minister," and substituting "approved by the minister or the director,".
5 The following provisions are repealed:
(a) sections 11 and 11.1;
(b) subsections 17(2) to (4.1);
(c) sections 19, 20 and 22 to 37.
6(1) Subsection 38(1) is amended by adding "of tax payable" after "assessment".
6(2) Subsection 38(3) is repealed.
7 The following provisions are repealed:
(a) sections 39 to 49;
(b) clauses 51(1)(k), (l) and (m);
8 Subsection 51(3) is replaced with the following:
51(3) A regulation under this section may be made retroactive to the extent the Lieutenant Governor in Council considers it necessary in order to implement or give effect to
(a) a tax or administrative measure included in a budget presented to the Legislative Assembly; or
(b) an amendment to this Act.
PART 2
THE GASOLINE TAX ACT
9 The Gasoline Tax Act is amended by this Part.
10 Section 1 is amended
(a) in the definition "licence", by striking out "the minister or";
(b) in the part of the definition "motor vehicle" before clause (a), by striking out ", subject to subsection 30(12),";
(c) by repealing the definition "peace officer"; and
(d) in the definition "permit", by striking out "minister" and substituting "director".
11 The following is added after section 1:
Administration and enforcement
1.1 Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act.
12 Clause 2.1(2)(a) is amended by striking out "issued by the minister" and substituting "issued by the director".
13 In the following provisions, "minister" is struck out wherever it occurs and "director" is substituted:
(a) subsections 4(1), (1.1), (2), (4), (7), (8) and (9);
(b) clauses 4(3)(a) and 4(5)(a);
(c) subsections 5(4) and 6(1).
14 The following provisions are repealed:
(a) sections 7 to 9;
(b) subsections 10(4) to (9) and (13) to (17);
(c) subsections 13(3) to (5);
(d) sections 16 to 18, 18.5 to 18.7;
(e) subsection 19(2);
(f) sections 19.1 to 36, 38.1 and 38.2.
15 Section 39 is amended
(a) by repealing clauses (t), (w) to (z) and (gg);
(b) in subclause (ff)(i), by striking out ", renewal, suspension, revocation and reinstatement" and substituting "or renewal"; and
(c) by renumbering it as subsection 39(1) and adding the following as subsection 39(2):
39(2) A regulation under this section may be made retroactive to the extent the Lieutenant Governor in Council considers it necessary in order to implement or give effect to
(a) a tax or administrative measure included in a budget presented to the Legislative Assembly; or
(b) an amendment to this Act.
PART 3
THE HEALTH AND POST SECONDARY
EDUCATION TAX LEVY ACT
16 The Health and Post Secondary Education Tax Levy Act is amended by this Part.
17 Section 1 is amended
(a) by repealing the definitions "assessment", "commission", "debtor", "prescribed" and "tax payable"; and
(b) by replacing the definition "employer" with the following:
"employer" means a person paying remuneration to an employee and includes
(a) a partnership or trust paying remuneration to an employee,
(b) the government,
(c) the Government of Canada, and
(d) a trustee in bankruptcy, assignee, liquidator, receiver, administrator or other person administering, managing, winding-up, controlling or otherwise dealing with an employer's property or business; (« employeur »)
18 Subsection 1.1(1) is repealed.
19 The following is added after section 1.1:
Administration and enforcement
1.2 Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act.
20(1) Subsection 2(1) of the English version is amended by striking out "Subsidiaries" and substituting "Subsidiary's" in the section heading.
20(2) Subsection 2(5.2) of the English version is amended by striking out "in manner" and substituting "in a manner".
20(3) Subsection 2(6) is amended by striking out "(3.1) or".
20(4) Subsection 2(8) of the English version is amended by adding "by regulation" after "prescribed".
21 Subsection 3(3.10) is amended
(a) in clauses (d), (e) and (f),
(i) by striking out "subsections (3.13) and" and substituting "subsection", and
(ii) by striking out "(3.1) or"; and
(b) in clause (f) of the English version, by striking out "the" before "all".
22 Subsection 7(2) and sections 8 to 36 are repealed.
23 Section 38 is replaced with the following:
38(1) The Lieutenant Governor in Council may make regulations
(a) respecting the time and manner of payment of tax under this Act;
(b) respecting refunds under this Act;
(c) prescribing circumstances in which subsections 2(4) and (4.1) do not apply to a partnership;
(d) respecting any other matter the Lieutenant Governor in Council considers necessary or advisable for the purposes of this Act.
38(2) A regulation under this section may be made retroactive to the extent the Lieutenant Governor in Council considers it necessary in order to implement or give effect to
(a) a tax or administrative measure included in a budget presented to the Legislative Assembly; or
24 Sections 39 and 40 are repealed.
PART 4
THE INCOME TAX ACT
25 The Income Tax Act is amended by this Part.
26 Subsections 3(4), (5) and (6) are repealed.
27 In subsection 4(1), clause (b) of Rule 1 is amended
(a) by striking out "and" at the end of subclause (iii); and
(b) by replacing subclause (iv) with the following:
(iv) under subsection 4.1(2.2) for the 2004 and 2005 taxation years, and
(v) under subsection 4.1(2.3) for the 2006 and subsequent taxation years.
28(1) Subsection 4.1(2.2) is amended
(a) in the section heading, by striking out "subsequent" and substituting "2005"; and
(b) in the subsection, by striking out "the 2004 taxation year and for each subsequent taxation year" and substituting "each of the 2004 and 2005 taxation years".
28(2) The following is added after subsection 4.1(2.2):
Basic tax payable — 2006 and subsequent taxation years
4.1(2.3) An individual's basic tax payable for the 2006 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% × TI |
| more than $30, 544. but not more than $65,000. | BT = $3,329. + 13.5% × (TI - $30,544.) |
| more than $65,000. | BT = $7,981. + 17.4% × (TI - $65,000.) |
28(3) Subsection 4.1(3) is amended by striking out "(2.2)" and substituting "(2.3)".
29(1) Subsection 4.6(3) is replaced with the following:
4.6(3) An individual may claim a basic personal amount of
(a) $7,634. for a taxation year ending after 2001 and before 2006; and
(b) $7,734. for a taxation year ending after 2005.
29(2) Clause 4.6(17)(c) is replaced with the following:
(c) in determining the amount for D in the formula, the amount determined for F were the lesser of $1,728. and 3% of the dependant's income for the year.
30(1) Subsection 4.11(1) is amended:
(a) by replacing the subsection heading with "Political contribution credit — 2002 to 2004"; and
(b) in the part before the table, by adding "and before 2005" after "2001".
30(2) The following is added after subsection 4.11(1):
Political contribution credit — 2005 and subsequent taxation years
4.11(1.1) An individual's political contribution tax credit for a taxation year ending after 2004 is the lesser of $650. and the amount determined according to the following table:
| Total contributions (T) | Political Contribution Credit (PCC) |
| $400. or less | PCC = .75 × T |
| more than $400. but not more than $750. | PCC = $300. + (T - $400.)/2 |
| more than $750. | PCC = $475. + (T - $750.)/3 |
31(1) The table in subsection 7(3) is amended
(a) in the last row, by replacing "calendar year after 2004" with "calendar year 2005"; and
(b) by adding the following rows to the end of the table:
| Jan. 1, 2006 to June 30, 2006 | 15% | 10.5% |
| July 1, 2006 to Dec. 31, 2006 | 14.5% | 10% |
| Jan. 1, 2007 to June 30, 2007 | 14.5% | 10.5% |
| after June 30, 2007 | 14% | 10% |
31(2) Subsection 7(4.1) is repealed.
32 The following centred heading is added before section 7.2:
MANUFACTURING INVESTMENT TAX CREDIT
33(1) The section heading for subsection 7.2(1) is replaced with "Manufacturing investment tax credit".
33(2) The following is added after subsection 7.2(1):
7.2(1.1) A corporation is deemed to have paid on its balance due day for a taxation year ending after March 8, 2005, on account of its tax payable for that taxation year, an amount equal to the lesser of
(a) the amount, if any, by which its investment tax credit at the end of the taxation year, determined without reference to any expenditure incurred after the end of the year, exceeds the tax that would otherwise be payable by it for the year if no amount were deducted in respect of a loss realized, property acquired or expenditure incurred after the end of the year; and
(b) 20% of the amount determined for the taxation year under clause (a) of the definition "investment tax credit" in subsection (2).
33(3) The definition "investment tax credit" in subsection 7.2(2) is amended
(a) in the part after clause (d) and before clause (e) of the English version, by adding "the total of" after "exceeds"; and
(b) by adding "and" at the end of clause (e) and adding the following after clause (e):
(f) the total of all amounts each of which is an amount deemed by subsection (1.1) to have been paid on account of tax payable by the corporation for any of the 10 immediately preceding taxation years;
33(4) The following is added after subsection 7.2(2.1):
Qualified property acquired after March 8, 2005 includes used property
7.2(2.2) In determining whether property acquired after March 8, 2005, is qualified property,
(a) the definition "qualified property" in subsection 127(9) of the federal Act shall be read without reference to "that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer" in the part after paragraph (b) and before paragraph (c); and
(b) the part of clause (b) before subclause (i) of the definition "qualified property" in subsection (2) of this Act shall be read without reference to "was not used — or acquired for use or lease — for any purpose whatever before it was acquired by the corporation,".
7.2(2.3) In applying the definition "investment tax credit" in subsection (2) to a taxation year ending before March 9, 2005, this section shall be read without reference to subsection (2.2).
Property acquired when available for use
7.2(2.4) In determining a taxpayer's investment tax credit at any time after March 8, 2005,
(a) a property acquired after that date is deemed not to have been acquired by the taxpayer; and
(b) an expenditure incurred after that date to acquire property is deemed not to have been incurred by the taxpayer;
before the property is considered to have become available for use by the taxpayer, as determined under subsection 13(27) of the federal Act without reference to paragraph (c) or under subsection 13(28) of that Act without reference to paragraph (d).
7.2(2.5) In determining a taxpayer's investment tax credit at any time after March 8, 2005,
(a) no amount shall be included in respect of property acquired after that date unless and until the taxpayer has filed with the minister, within one year after the filing-due date for the taxation year in which the property was acquired and in a form and manner authorized by the minister, the information about the property stipulated by the authorized form; and
(b) no amount shall be included in respect of property acquired after that date if an amount in respect of the property is included in computing a tax credit claimed under any other section of this Act.
34 The following centred heading is added before section 7.3:
RESEARCH AND DEVELOPMENT TAX CREDIT
35(1) The definition "research and development tax credit" in subsection 7.3(1) is amended
(a) in clause (a), by adding "and before March 9, 2005," after "in the year";
(b) by adding the following after clause (a):
(a.1) an amount equal to 20% of the aggregate of all amounts each of which is an eligible expenditure made by it in the year and after March 8, 2005, computed without reference to subsection 13(7.1) of the federal Act,
(c) in clause (b),
(i) in the part before subclause (i), by adding "before March 9, 2005" after "made by it", and
(ii) by adding "or" at the end of subclause (i), striking out "or" at the end of subclause (ii) and repealing subclause (iii);
(d) by adding the following after clause (b):
(b.1) an amount equal to 20% of the aggregate of all amounts each of which is an eligible expenditure made by it after March 8, 2005, in any of
(i) the 10 immediately preceding taxation years, or
(ii) the three immediately following taxation years,
computed without reference to subsection 13(7.1) of the federal Act,
(e) in clause (d), by adding "or (b.1)" after "clause (b)".
35(2) The following is added after subsection 7.3(2):
7.3(2.1) In applying the definition "research and development tax credit" in subsection (1) to a taxation year ending before March 9, 2005, the references in clauses (a.1) and (b.1) to "20%" shall be read as "15%".
7.3(2.2) In determining a taxpayer's research and development tax credit at any time after March 8, 2005,
(a) no amount shall be included in respect of an eligible expenditure made after that date unless and until the taxpayer has filed with the minister, within one year after the filing-due date for the taxation year in which the expenditure was made and in a form and manner authorized by the minister, the information about the expenditure stipulated by the authorized form; and
(b) no amount shall be included in respect of an expenditure made after that date if an amount in respect of the expenditure is included in computing a tax credit claimed under any other section of this Act.
36(1) The definition "eligible salaries" in subsection 7.5(1) is amended
(a) in clause (a), by striking out "final script stage" and substituting "production commencement time"; and
(b) in the part of clause (b) before subclause (i), by striking out "end of the final script stage" and substituting "production commencement time".
36(2) Subsection 7.5(3) is amended by striking out "and" at the end of clause (d), adding "and" at the end of clause (e), and adding the following after clause (e):
(f) the references in clauses (a) and (b) of the definition to "production commencement time" shall be read as "final script stage" when applying the definition to
(i) an eligible film the principal photography for which commenced before March 9, 2005, or
(ii) a taxation year that ended before March 9, 2005.
37(1) Subsection 7.6(1) is amended
(a) in the formula, by striking out ".35" and substituting ".45"; and
(b) in the description of C,
(i) by striking out "40 kilometres" in clauses (a) and (c) and substituting "35 kilometres", and
(ii) in the English version of clause (c), by striking out "on at least" and substituting "for at least".
37(2) Subsection 7.6(1.1) is amended by striking out "or" at the end of clause (a), adding "or" at the end of clause (b), and adding the following after clause (b):
(c) whom the minister, upon application in accordance with the regulations, recognizes as the film's principal owner because of their contribution to the development, creative and financial control, and exploitation of the film, having regard to their role in
(i) the acquisition or development of the film's story,
(ii) commissioning the writing of the film's screenplay,
(iii) selecting, hiring or firing key artists and creative personnel,
(iv) preparing, revising and approving the film's budget,
(v) binding the production company to talent and crew contracts,
(vi) arranging production financing,
(vii) making final creative decisions,
(viii) making or authorizing production expenditures, and
(ix) banking arrangements for the production.
A person's application under clause (c) must contain sufficient information to enable the minister to apply the criteria in subclauses (c)(i) to (ix).
37(3) The following is added after subsection 7.6(1.2):
Frequent filming bonus involving series
7.6(1.3) In determining the amount for B in the formula in subsection (1) in respect of an eligible film,
(a) a cycle of a commercially exploitable series may be treated as an eligible film, regardless of the combined running length of its episodes;
(b) episodes with a combined running length of two hours within the same cycle of a commercially exploitable series may be treated as a prior film;
(c) the remaining episodes in a cycle that are not treated as a prior film under clause (b) may be treated as a separate eligible film if, as a separate eligible film, the amount determined for it under B in that formula would not be nil; and
(d) the amount determined for A for the separate eligible film under clause (c) shall be that proportion of the amount determined for A for the cycle that the running length of the separate film is of the running length of the whole cycle.
For the purpose of this subsection, if the series is a television series, the running length of an episode is deemed to be its broadcast length and the running length of a cycle is the total running length of the episodes in that cycle.
38 In subsection 8(1), the description of C in the formula is amended by striking out "amount of the deduction claimed" and substituting "amount deductible".
39(1) Subsection 10.1(1) is amended by striking out "2006" in the part before the formula and substituting "2009".
39(2) The definition "eligible expenditure" in subsection 10.2(2) is amended by adding "and" at the end of clause (c), striking out "and" at the end of clause (d), and repealing clause (e).
39(3) The following is added after subsection 10.2(2):
10.2(2.1) Despite subsection (2), in determining a taxpayer's odour-control tax credit,
(a) no amount shall be included in respect of an acquisition of property unless and until the taxpayer has filed with the minister, within one year after the filing-due date for the taxation year in which the property was acquired, a prescribed form containing the information about the property stipulated by the form; and
(b) no amount shall be included in respect of an acquisition of property if an amount in respect of the property is included in computing a tax credit claimed under any other section of this Act.
40 The definition "eligible share" in subsection 11.6(1) is amended by striking out ", 2005" in clauses (d) and (f) and substituting "2008".
41 Clause 11.8(2)(a) is amended by striking out "2006" and substituting "2009".
PART 5
THE LAW FEES AND
PROBATE CHARGE ACT
42 The Law Fees and Probate Charge Act is amended by this Part.
43 Section 6 of the Schedule is amended in the part before clause (a) by striking out "on or after March 30, 1998" and substituting "during the period commencing on March 30, 1998 and ending on June 30, 2005".
44 The following is added after section 6 of the Schedule:
7. For an application made on or after July 1, 2005:
(a) where the value of the property devolving is $10,000. or less $70.
(b) where the value of the property devolving is more than $10,000. $70.,
| plus $7. for every additional $1,000. of value or fraction thereof. |
PART 6
THE MINING TAX ACT
45 The Mining Tax Act is amended by this Part.
46 Subsection 1(1) is amended by repealing the definitions "assessment", "commission" and "court".
47 The following is added after section 1.1:
Administration and enforcement
1.2 Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act.
48 Subsections 5(1) and (2) and section 8 are amended by striking out "subject to sections 31.1, 32 and 33," and substituting "subject to an appeal under Part I, Division 4 of The Tax Administration and Miscellaneous Taxes Act,".
49 Sections 15 to 21 are repealed.
50(1) Subsection 22(1) is amended by striking out "in a form authorized by the minister and".
50(2) Subsection 22(3) is repealed.
51 Sections 25 to 35, 37 to 42 and 44.1 are repealed.
52 Section 45 is replaced with the following:
45(1) The Lieutenant Governor in Council may make regulations
(a) prescribing information to be contained in, or filed in respect of, returns required under this Act;
(b) prescribing the manner in which the detailed statements of an operator's operations to be filed under section 23 are to be reconciled with the operator's unconsolidated financial statements;
(c) respecting any other matter the Lieutenant Governor in Council considers necessary or advisable for the purposes of this Act.
45(2) A regulation under this section may be made retroactive to the extent the Lieutenant Governor in Council considers it necessary in order to implement or give effect to
(a) a tax or administrative measure included in a budget presented to the Legislative Assembly; or
(b) an amendment to this Act.
PART 7
THE MOTIVE FUEL TAX ACT
53 The Motive Fuel Tax Act is amended by this Part.
54 Section 1 is amended
(a) by repealing the definitions "court" and "peace officer";
(b) in the definition "licence", by striking out "the minister or";
(c) in the part of the definition "motor vehicle" before clause (a), by striking out ", subject to subsection 29(9),"; and
(d) in the definition "permit", by striking out "minister" and substituting "director".
55 The following is added after section 1:
Administration and enforcement
1.1 Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act.
56 Subsections 3(1) and (2) are amended by striking out "subsection 2(9), 2(9.1) or 2(9.2)" and substituting "subsection 2.1(1) or (2)".
57 In the following provisions, "minister" is struck out wherever it occurs and "director" is substituted:
(a) subsections 5(1), (5), (7), (8) and (9);
(b) clause 5(6)(a);
(c) subsections 6(5) and 7(1).
58 The following provisions are repealed:
(a) sections 8 to 10;
(b) subsections 11(5) to (10) and (14) to (18);
(c) subsections 14(3) to (5);
(d) sections 17 to 19, 19.5 to 19.7;
(e) subsection 20(2);
(f) sections 20.1 to 35, 37.1 and 37.2.
59 Section 38 is amended
(a) by repealing clauses (q), (x), (y) and (bb);
(b) by replacing clause (r) with the following:
(r) exempting persons or classes of persons from the requirement in subsection 6(5) for a blending permit;
(c) in subclause (aa)(i), by striking out ", renewal, suspension, revocation and reinstatement" and substituting "or renewal"; and
(d) by renumbering it as subsection 38(1) and adding the following as subsection 38(2):
38(2) A regulation under this section may be made retroactive to the extent the Lieutenant Governor in Council considers it necessary to implement or give effect to
(a) a tax or administrative measure included in a budget presented to the Legislative Assembly; or
(b) an amendment to this Act.
PART 8
THE MUNICIPAL ACT
60 The Municipal Act is amended by this Part.
61(1) The definition "institutional lands" in section 334 is amended
(a) in subclause (a)(ii), by striking out "The University of Manitoba, The University of Winnipeg, Le Collège de Saint-Boniface, Brandon University or"; and
(b) by striking out "and" at the end of clause (b), adding "and" at the end of clause (c), and adding the following after clause (c):
(d) lands that are owned by The University of Manitoba, The University of Winnipeg, Le Collège de Saint-Boniface or Brandon University and belong to a residential class of assessable property under The Municipal Assessment Act.
61(2) Clause (d) of the definition "institutional lands" in section 334, as enacted by subsection (1), is amended by adding "universitaire" after "Le Collège".
PART 9
THE PROPERTY TAX AND INSULATION
ASSISTANCE ACT
62 The Property Tax and Insulation Assistance Act is amended by this Part.
63 The following is added after section 16:
PART III.1
FARMLAND SCHOOL TAX REBATE
16.1 The following definitions apply in this Part.
"farmland" means land, as defined in The Municipal Assessment Act, that is classified as Farm Property under that Act. (« terre agricole »)
"minister" means the minister appointed by the Lieutenant Governor in Council to administer this Part. (« ministre »)
"occupier", "person", "real owner" and "registered owner" have the same meaning as in The Municipal Assessment Act. (« occupant », « personne », « propriétaire inscrit » et « propriétaire véritable »)
"school tax" in relation to a parcel of farmland for a taxation year means the tax imposed by the council of a municipality under section 188 of The Public Schools Act in respect of that land for that year. (« taxe scolaire »)
"taxpayer" in relation to the school tax imposed in respect of a parcel of farmland for a taxation year means
(a) a person who was, in that year,
(i) a registered owner or real owner of the land who was liable to pay the tax, other than a person who became the registered owner or real owner in that year on a tax sale, quit claim or foreclosure, or
(ii) an occupier who was liable under subsection 25(1) of The Municipal Assessment Act to pay the tax;
(b) if a person referred to in subclause (a)(i) or (ii) has died, the person's legal representative or any heir who has become the registered owner or real owner of the land;
(c) while a person referred to in subclause (a)(i) or (ii) is in bankruptcy, the person's trustee in bankruptcy; and
(d) any other person who the minister recognizes as a person who paid the tax for all or part of that year. (« contribuable »)
16.2(1) Subject to sections 16.3 to 16.6, a rebate is payable for a taxation year after 2004 to every taxpayer in relation to farmland in Manitoba who applies for it in accordance with this Part. Subject to section 16.6 and the regulations, the amount of the rebate is 50% of the school tax paid in respect of that land for that taxation year by or on behalf of
(a) the taxpayer; or
(b) another taxpayer in relation to whom the applicant for the rebate is a legal representative, heir or trustee in bankruptcy.
16.2(2) If there was a change in taxpayers in relation to a parcel of farmland in a taxation year and, in relation to that change, some or all of the school tax paid by or on behalf of one taxpayer is reimbursed by another taxpayer pursuant to a written agreement between them, the reimbursed tax is deemed for the purpose of this Part to have been paid by the one who made the reimbursement and not by or on behalf of the one who received it.
16.2(3) For the purposes of this Part,
(a) if two or more corporations are amalgamated, the amalgamated corporation is deemed to be the same corporation as, and a continuation of, each of the predecessor corporations; and
(b) if a subsidiary corporation is wound up into a parent corporation in a transaction to which subsection 88(1) of the Income Tax Act (Canada) applies, the parent corporation is deemed to be the same corporation as, and a continuation of, the subsidiary corporation.
Property taxes to be paid in full
16.3(1) Subject to subsection (2), no rebate is payable in respect of a parcel of farmland for a taxation year unless the following amounts are paid in full on or before the day the application for the rebate is filed:
(a) all property taxes for that year and all earlier years in respect of the real property that includes that parcel;
(b) any interest and penalties payable in respect of those taxes;
(c) any amount payable by the taxpayer under section 16.10.
16.3(2) A rebate for a taxation year may be paid to a taxpayer in respect of a parcel of farmland disposed of by the taxpayer before the property taxes for that year became due, but only if the following amounts are paid in full on or before the day the application is filed:
(a) all property taxes for all earlier years in respect of the real property that includes that parcel;
(b) any interest and penalties payable in respect of those taxes;
(c) any amount payable by the taxpayer under section 16.10.
16.4(1) A taxpayer wishing to obtain a rebate under this Part must apply for it in a form approved by the minister.
Form and content of application
16.4(2) The application for a rebate for a taxation year must include the following information:
(a) the taxpayer's name and address and, if applicable, the location of the taxpayer's head office;
(b) the taxpayer's social insurance number, if applicable;
(c) the taxpayer's business number for income tax purposes, if applicable;
(d) the roll number of the real property that includes the farmland for which the rebate is being sought, and proof that the property taxes for that property have been paid in full as required by section 16.3;
(e) any information stipulated by the application form in respect of situations involving more than one taxpayer, whether because of joint or common ownership or because of a change in ownership in that taxation year;
(f) any other information stipulated by the application form.
The taxpayer must also provide any other information that the minister requires to determine the applicant's status as a taxpayer and his or her entitlement to the rebate.
16.4(3) An application for a rebate for a taxation year must be filed with the minister before the end of the third year following that year.
Claims for rebate by two or more taxpayers
16.5 Where two or more taxpayers apply for a rebate in respect of the same farmland for the same taxation year, and the total amount claimed by them is greater than 50% of the school tax paid on that land for that year,
(a) the minister may refuse to provide a rebate to each of them until they agree on how the amount to be rebated is to be divided between them; and
(b) if the minister has provided a rebate to one taxpayer before being made aware of another taxpayer's claim, the minister
(i) may provide or refuse to provide a rebate to the second taxpayer, and
(ii) may, after paying an amount as a rebate to the second taxpayer, recover all or any part of that amount from the first taxpayer.
Rebate reduced by school tax reduction
16.6 The amount otherwise payable as a school tax rebate in respect of a parcel of farmland for a taxation year must be reduced by the amount of any school tax reduction allowed under the regulations in respect of that parcel for that taxation year.
16.7 The minister may delegate the administration of some or all of this Part to any person.
16.8 The Lieutenant Governor in Council may make regulations
(a) establishing a method for delivering, instead of a school tax rebate under this Part, a benefit equivalent to that rebate by way of a reduction in the school tax payable for a taxation year on a parcel of farmland, but only if the following amounts are paid in full before the beginning of that taxation year:
(i) all property taxes for all earlier years in respect of the real property that includes that parcel,
(ii) any interest and penalties in respect of those taxes,
(iii) any amount payable under section 16.10 before the beginning of that taxation year;
(b) respecting the reimbursement of municipalities and local government districts for any benefit provided by way of a school tax reduction;
(c) increasing or decreasing the percentage in subsection 16.2(1) for any taxation year or years;
(d) establishing a process to deal with objections or complaints respecting the granting of, or the failure or refusal to grant, a tax rebate or reduction under this Part;
(e) providing authority to investigate, inspect or audit any matter pertaining to a person's eligibility for a tax rebate or reduction under this Part;
(f) requiring a person to provide information necessary to support a tax rebate or reduction under this Part;
(g) respecting any matter the Lieutenant Governor in Council considers necessary or advisable for the purposes of this Part.
16.9 The Minister of Finance for Manitoba shall ensure that each municipality and local government district is reimbursed out of the Consolidated Fund, in accordance with the regulations, for any school tax reduction made by it in accordance with the regulations.
Recovery of school tax rebate or reduction
16.10(1) If a school tax rebate or reduction has been paid or allowed under this Part to a person who was not eligible for it or in respect of property that was not eligible for it, the person who received the rebate or the benefit of the reduction must pay to the Minister of Finance for Manitoba, upon receipt of a notice of assessment by the minister, the amount that should not have been paid as a rebate or allowed as a reduction.
16.10(2) If a person fails to pay when it is due an amount payable under subsection (1), interest is payable by the person on the unpaid amount, at the rate prescribed under The Income Tax Act for the purpose of subsection 5.6(4) of that Act,
(a) if it is payable in respect of a school tax reduction, from the date the municipal taxes levied in respect of the property for the year were due; or
(b) if it is payable in respect of a school tax rebate, from the date the rebate was paid.
PART III.2
SCHOOL TAX REDUCTION
Regulations for school tax reduction program
16.11(1) The Lieutenant Governor in Council may make regulations to continue, for any local government district that participated in it in 2004, with such changes as the Lieutenant Governor in Council considers appropriate, the school tax reduction program provided under Part II of The Revenue Act as it read before this section came into force.
16.11(2) A regulation under this section may be made retroactive to a date specified in the regulation, but not earlier than April 1, 2005.
PART 10
THE PROVINCIAL-MUNICIPAL TAX SHARING ACT
64 The Provincial-Municipal Tax Sharing Act is amended by this Part.
65 The title is replaced with "THE MUNICIPAL REVENUE (GRANTS AND TAXATION) ACT".
66 The following is added before section 1:
PART 1
67 The following provisions are amended by striking out "Act" and substituting "Part":
(a) section 1, in the part before the first definition;
68 Sections 2 and 2.1 are repealed.
69 The following is added after section 5:
PART 2
GRANTS TO MUNICIPALITIES
6 The following definitions apply in this Part.
"fiscal year" means the period beginning on April 1 of one year and ending on March 31 of the following year. (« exercice »)
"fund" means the special account established under section 7. (« Fonds »)
"minister" means the minister appointed by the Lieutenant Governor in Council to administer this Part. (« ministre »)
"municipality" includes an Indian Reserve, a local government district and a community under The Northern Affairs Act. (« municipalité »)
"taxable litre" means
(a) in relation to gasoline, a litre of gasoline, other than aircraft gasoline, on the purchase of which tax is paid under The Gasoline Tax Act; and
(b) in relation to motive fuel, a litre of motive fuel, other than motive fuel used in the operation of a locomotive, on the purchase of which tax is paid under The Motive Fuel Tax Act. (« litre taxable »)
Building Manitoba Fund established
7(1) There shall be established in the Consolidated Fund a special account to be known as the "Building Manitoba Fund".
Credit to fund for 2005-06 fiscal year
7(2) There shall be credited to the fund for the fiscal year ending on March 31, 2006, out of the sums appropriated for grants to municipalities for that year, the sum of $118,709,100.
7(3) There shall be credited to the fund in each fiscal year beginning after 2005 the sums appropriated for grants to municipalities under this Part for the fiscal year.
7(4) There shall be charged to the fund in each fiscal year the grants paid or distributed in that year to municipalities under section 9.
Estimates of expenditure for grants to municipalities
8(1) Subject to subsections (2) and (3), the government's estimates of expenditure for a fiscal year beginning after 2005 must include, as a sum to be voted for grants to municipalities under this Part in that year, an amount not less than the total of the following amounts:
(a) $0.02 times the number of taxable litres of gasoline that the Minister of Finance estimates will be purchased in the fiscal year;
(b) $0.01 times the number of taxable litres of motive fuel that the Minister of Finance estimates will be purchased in the fiscal year;
(c) 4.15% of the amount estimated by the Minister of Finance to be the government's revenue under The Income Tax Act for the fiscal year.
Deferral for anticipated reductions
8(2) If the amount to be included under subsection (1) for a fiscal year is greater than the sum voted for grants to municipalities under this Part for the immediately preceding fiscal year and the Minister of Finance anticipates a reduction in the amount to be included for a future year, the government may defer the inclusion of all or part of the excess to the future year to offset the anticipated reduction in that year.
Adjustment for decrease in revenue
8(3) If the Minister of Finance, before tabling the government's estimates of expenditure for a fiscal year in the Legislative Assembly, determines that
(a) the number of taxable litres of gasoline or motive fuel sold in the immediately preceding fiscal year; or
(b) the government's revenue under The Income Tax Act for the preceding fiscal year;
is significantly lower than estimated for the preceding fiscal year under subsection (1), the Minister of Finance may reduce the amount to be included under that subsection to reflect the reduction in revenue, except to the extent that the reduction is reflected in an adjustment made under subsection 9(3) in the preceding year.
Allocation and distribution of grants
9(1) The manner in which the amount credited to the fund in a fiscal year is to be allocated and paid or distributed among municipalities and other areas of the province is to be determined by the Lieutenant Governor in Council.
9(2) The Lieutenant Governor in Council may, by order or by regulation, impose terms and conditions on grants to be paid or distributed under this section.
Adjustments for increase or decrease in revenue
9(3) If in any fiscal year the Minister of Finance
(a) determines that the number of taxable litres of gasoline or motive fuel sold in the immediately preceding fiscal year, or the government's revenue under The Income Tax Act for the preceding fiscal year, is significantly higher or lower than estimated for that fiscal year under subsection 8(1) and the increase or decrease has not been reflected in
(i) an adjustment under this subsection in the preceding year, or
(ii) the amount included under subsection 8(1) in the estimates of expenditure for the current fiscal year; or
(b) anticipates that the number of taxable litres of gasoline or motive fuel sold in the current fiscal year, or the government's revenue under The Income Tax Act for the current fiscal year, will be significantly higher or lower than estimated for that fiscal year under subsection 8(1);
the Lieutenant Governor in Council may adjust the amounts allocated or to be allocated to municipalities for the current fiscal year to reflect that increase or decrease. The amount of any increase may be paid out of the Consolidated Fund from money authorized for the purpose by or under an Act of the Legislature.
Prior rights to grants or recoveries extinguished
9(4) On the coming into force of this Part, the following rights and entitlements are extinguished:
(a) any right or entitlement of a municipality, or of the municipalities as a group, to an allocation or distribution of tax revenue under section 2 or 2.1 of this Act as it read before this Part came into force;
(b) any right or entitlement of the government to recover, by deduction, set-off or in any other manner, any amounts allocated or distributed to municipalities under section 2 of this Act before this Part came into force.
10 The Lieutenant Governor in Council may make regulations
(a) defining words or expressions used but not defined in this Part;
(b) establishing reporting requirements for municipalities respecting grants received by them;
(c) providing authority to investigate, inspect or audit any matter pertaining to a grant made or to be made to a municipality under this Part;
(d) respecting any matter the Lieutenant Governor in Council considers necessary or advisable for the purposes of this Part.
PART 3
C.C.S.M. REFERENCE
11 This Act shall no longer be referred to as chapter T5 of the Continuing Consolidation of the Statutes of Manitoba but may be referred to as chapter M265 of the Continuing Consolidation of the Statutes of Manitoba.
PART 11
THE RETAIL SALES TAX ACT
70 The Retail Sales Tax Act is amended by this Part.
71 Subsection 1(1) is amended
(a) by repealing the definitions "assessment", "commission" and "estimate";
(b) in clause (c) of the definition "fair value", by striking out "pursuant to section 16" and substituting "under subsection 46(3) of The Tax Administration and Miscellaneous Taxes Act"; and
(c) in the definition "purchase", by striking out "and subsection 15(2)".
72 The following is added after section 1:
Administration and enforcement
1.1 Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act.
73(1) Subsection 3(1) is amended
(a) in clause (r.1), by adding "and magazines" after "newspapers";
(b) by replacing clause (w) with the following:
(w) tangible personal property declared in the regulations to be a catalyst or a direct agent;
(c) in subclause (yy)(i), by striking out "after April 29, 1999 and before July 2005" and substituting "before July 2007".
73(2) Subsection 3(3) is amended by striking out "Part 1 of The Revenue Act" and substituting "Part I.1 of The Tax Administration and Miscellaneous Taxes Act".
73(3) Subsection 3(27.1) is amended by striking out "after April 29, 1999 and before July, 2005" and substituting "before July 2007".
74 Subclause 4(1)(f)(ii) is amended by adding "and magazines" after "newspapers".
75(1) Subsection 5(5) is repealed.
75(2) Subsection 5(6) is amended in the part before clause (a) by striking out "minister" and substituting "director".
76 Sections 6 to 8.1 are repealed.
77(1) Subsection 9(2) is replaced with the following:
Vendor to file returns and remit tax
9(2) Every vendor must
(a) collect the tax payable under section 2 at the time that it is payable; and
(b) in accordance with the regulations
(i) file returns with the director, and
(ii) remit to the minister the tax that the vendor collected and any amount that the vendor was required to collect as tax but did not collect.
Recovery of amount remitted but not collected
9(2.1) A vendor who remits an amount in respect of tax payable by a purchaser that the vendor did not collect from the purchaser is entitled to recover that amount in a court of competent jurisdiction as a debt owing by the purchaser to the vendor.
77(2) Subsections 9(5) and (6.1), sections 10 to 20.2 and subsection 21(10) are repealed.
78 Clause 23(1)(e) is amended by striking out "minister" and substituting "director".
79 Sections 24 and 24.1 are repealed.
80(1) Clause 26(1.1)(b) is amended by striking out "The Revenue Act" and substituting "The Tax Administration and Miscellaneous Taxes Act".
80(2) Subsection 26(2.3) is amended by striking out "Subject to subsection 19(6), no" and substituting "No".
80(3) Subsection 26(2.4) is repealed.
81 Sections 28 to 28.3 are repealed.
82(1) Subsection 29(1) is amended
(a) in clause (b), by striking out "recordkeeping and"; and
(b) by repealing clauses (s) and (t).
82(2) The part of subsection 29(2) before clause (a) is replaced with the following:
29(2) A regulation under this section may be made retroactive to the extent the Lieutenant Governor in Council considers it necessary in order to implement or give effect to
PART 12
THE REVENUE ACT
83 The Revenue Act is amended by this Part.
84 The title of the Act is replaced with the following:
THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT
85 Part I is renumbered as Part I.1 and the following is added as Part I:
PART I
TAX ADMINISTRATION
DIVISION 1
GENERAL
1(1) The following definitions apply in this Part.
"assessment" means an assessment made by the director under section 46. (« cotisation »)
"bulk fuel" means more than 200 litres of fuel that is not stored in a fuel tank as part of the fuel system of a vehicle or other machine. (« carburant en vrac »)
"carrier licence" means a licence that
(a) is issued under the law of a jurisdiction whose government is a party to the International Fuel Tax Agreement referred to in the fuel tax Acts; and
(b) is issued to a person who owns or operates one or more motor vehicles, as defined in The Highway Traffic Act, used for the interjurisdictional carriage of passengers or goods. (« licence de transporteur »)
"cigarette" has the same meaning as in The Tobacco Tax Act. (« cigarette »)
"collector" means
(a) a person who is required by or under a tax Act to collect and remit tax; and
(b) any other person who collects an amount as tax, otherwise than as a person employed under the minister. (« collecteur »)
"deputy collector" means a person appointed under a tax Act by a collector to collect and remit tax to the collector. (« collecteur adjoint »)
"director" means
(a) the Deputy Minister of Finance; or
(b) an Assistant Deputy Minister of Finance;
except where it refers to a director of a corporation. (« directeur »)
"financial institution" means a bank, credit union, trust company or other similar institution. (« établissement financier »)
"fuel" means gasoline as defined in The Gasoline Tax Act and motive fuel as defined in The Motive Fuel Tax Act. (« carburant »)
"fuel tax Act" means The Gasoline Tax Act and The Motive Fuel Tax Act. (« loi fiscale sur les carburants »)
"information return" includes a tax return under a tax Act. (« déclaration de renseignements »)
"marked fuel" means
(a) marked or coloured gasoline as defined in The Gasoline Tax Act; and
(b) marked or coloured motive fuel as defined in The Motive Fuel Tax Act. (« carburant marqué »)
"marked tobacco" means cigarettes or fine cut tobacco the packaging of which is marked or stamped for the tax purposes of Manitoba as required by The Tobacco Tax Act. (« tabac marqué »)
"minister" means the Minister of Finance. (« ministre »)
"person" includes a partnership. (« personne »)
"Personal Property Registry" means the Personal Property Registry under The Personal Property Security Act. (« Bureau d'enregistrement »)
"reassessment" means a reassessment made by the director under section 46. (« nouvelle cotisation »)
"receiver, trustee or other like person" means a person who as assignee, liquidator, administrator, trustee, receiver, receiver-manager, secured or unsecured creditor, or as agent of any such person, takes control or possession of money or other property of another person. But it does not include a trustee in bankruptcy except in section 16. (« séquestre, fiduciaire ou autre personne exerçant des fonctions semblables »)
"record" means information that
(a) is recorded or stored by mechanical, electronic, magnetic, optical or any other means; and
(b) is recorded or stored in understandable form or is capable of being produced or reproduced in understandable form. (« document »)
"secured creditor"
(a) means a person who has a security interest in property of another person or who, in connection with a security interest, acts for or on behalf of the person who has the security interest; and
(b) includes a trustee appointed under a trust deed relating to a security interest, a receiver or receiver-manager appointed by a secured creditor or by a court on the application of a secured creditor, a sequestrator, and any other person performing a similar function. (« créancier garanti »)
"security interest"
(a) means an interest in property that secures payment or performance of an obligation; and
(b) includes an interest created by or arising out of a debenture, mortgage, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind. (« sûreté »)
"tangible personal property" means tangible personal property as defined in The Retail Sales Tax Act. (« biens personnels corporels »)
"tax" means a tax imposed under a tax Act. (« taxe »)
"taxable service" means a taxable service as defined in The Retail Sales Tax Act. (« service taxable »)
"tax Act" means any of the following enactments:
(a) The Corporation Capital Tax Act;
(b) The Gasoline Tax Act;
(c) The Health and Post Secondary Education Tax Levy Act;
(d) The Mining Tax Act;
(e) The Motive Fuel Tax Act;
(f) The Retail Sales Tax Act;
(g) The Tobacco Tax Act;
(h) this Part and Part I.1 of this Act;
(i) a regulation made under any enactment referred to in clauses (a) to (h). (« loi fiscale »)
"Tax Appeals Commission" means the Tax Appeals Commission established under section 2 of The Tax Appeals Commission Act. (« Commission d'appel des impôts et des taxes »)
"tax authorization" means
(a) an RST number under The Retail Sales Tax Act; and
(b) a licence or permit under a tax Act. (« autorisation fiscale »)
"tax debt" of a person means the total of all amounts that the person is required to pay or remit under a tax Act, whether as tax, or as a penalty, interest, fee or other charge, other than a fine or surcharge payable upon conviction of an offence. (« dette fiscale »)
"tax debtor" means a person who is liable to pay or remit a tax debt. (« débiteur fiscal »)
"tax officer" means
(a) the director; and
(b) a person designated by the director as a tax officer under section 4. (« agent du fisc »)
"taxpayer" means
(a) a person on whom a tax is imposed;
(b) a collector; and
(c) a person who is liable under a tax Act for all or any part of another taxpayer's tax debt. (« contribuable »)
"tobacco" means tobacco or a tobacco product as defined in The Tobacco Tax Act. (« tabac »)
"unit", in relation to tobacco, means a unit as defined in The Tobacco Tax Act. (« unité »)
"unmarked tobacco" means cigarettes or fine cut tobacco the packaging of which is not marked or stamped for the tax purposes of Manitoba as required by The Tobacco Tax Act. (« tabac non marqué »)
1(2) Subject to subsections (3) and (4), nothing in this Part shall be construed to affect a solicitor-client privilege.
Process for dealing with solicitor-client privilege
1(3) Section 232 of the Income Tax Act (Canada) applies, with necessary changes, to
(a) any requirement to produce or make available for inspection, audit or examination; or
(b) any attempt to inspect, examine or seize;
any record in respect of which a solicitor-client privilege is claimed and has not been waived by the person entitled to waive it.
No privilege in respect of accounting record
1(4) For the purposes of this Part, no solicitor-client privilege exists or may be claimed in respect of an accounting record of a lawyer or any supporting voucher or cheque for such an accounting record.
2 This Act binds the Crown.
3(1) The director may delegate to a person, with or without conditions, any power or duty conferred or imposed on the director by a tax Act.
3(2) The director may continue to exercise a power or perform a duty that he or she has delegated.
4(1) The director may designate a person or class of persons, with or without conditions, as tax officers for the purpose of the administration and enforcement of any or all of the tax Acts.
4(2) For the purpose of The Summary Convictions Act, a tax officer for the purpose of the administration and enforcement of a tax Act is deemed to be a peace officer in relation to that tax Act.
Minister or director may approve forms
5 The minister or the director may approve forms, including electronic forms, for use under a tax Act, and may require them to be used.
6(1) No person employed in the administration of a tax Act may disclose any personal or confidential record or information obtained under a tax Act, except
(a) with the consent of the person to whom the record or information relates;
(b) in the case of personal information, as permitted by The Freedom of Information and Protection of Privacy Act;
(c) to the extent required for the administration or enforcement of a tax Act or any other Act that imposes a tax or levy or, with the approval of the minister, to the extent required for the administration or enforcement of any other enactment;
(d) as required or permitted under Part 5 of The Electronic Commerce and Information Act or under a regulation or an agreement made under that Part; or
(e) as permitted under subsection (2) or the regulations.
Reciprocal exchange of information
6(2) The minister may permit records or information, including personal information, obtained under a tax Act to be given or shown to any person employed by the government of Canada or of another province, territory, country or state if
(a) there is an agreement or arrangement with that government for the reciprocal exchange of records or information relating to the administration or enforcement of laws that impose a tax or levy; and
(b) the minister is satisfied that the records or information provided are required for the administration or enforcement of laws that impose a tax or a levy and will be used by that government only for that purpose.
Notice of arrangements and agreements
6(3) When an agreement or an arrangement referred to in subsection (2) is entered into, the minister must publish in The Manitoba Gazette a notice summarizing its terms.
6(4) In the event of a conflict between this section and a provision of The Freedom of Information and Protection of Privacy Act, this section prevails. But nothing in this section shall be construed to limit or deny a person's right to access his or her own personal information.
7(1) A document to be served under a tax Act may be served
(a) in the case of a document to be served on the minister, by delivering it to the office of the minister or the deputy minister, or sending it by prepaid mail addressed to either office;
(b) in the case of a document to be served on the director, by delivering it to the office of the director, or sending it by prepaid mail addressed to that office;
(c) in the case of a document to be served on the Tax Appeals Commission, by delivering it to the office of the Tax Appeals Commission, or sending it by prepaid mail addressed to that office;
(d) in the case of a document to be served on a partnership,
(i) by giving it to a general partner of the partnership, or to an adult employed at a place of business of the partnership, or
(ii) by sending it by prepaid mail addressed to a general partner of the partnership, to the partnership or to a name under which the partnership carries on business, at the address of the partner or partnership last known to the director;
(e) in the case of a document to be served on any other person,
(i) by giving it to the person or to an adult employed at a place of business of the person, or
(ii) by sending it by prepaid mail addressed to the person or to a name under which the person carries on business, at the address of the person or the person's business last known to the director; or
(f) in any other manner prescribed by regulation.
7(2) If a document is sent to a person by mail in accordance with subsection (1), it is deemed to have been served on the person
(a) in the case of registered mail, when it is received by the person or by another person on the person's behalf; and
(b) in the case of certified or ordinary mail, when it is delivered by the post office to the address to which it was mailed.
7(3) Unless the contrary is shown, a document mailed by the director or the Tax Appeals Commission is deemed to have been
(a) mailed on the date of the document; and
(b) delivered to the address to which it was mailed on the third day after the day it was mailed, not including weekends and holidays.
7(4) A document delivered to the office of a person in accordance with subsection (1) is deemed to have been served on the person on the day it was delivered.
8 A statutory declaration as to how and when a document was served is proof of those facts unless the contrary is shown.
9 Despite any other provision of a tax Act, when the deadline for doing anything that is required or permitted to be done by or under a tax Act occurs on a weekend or a holiday, that deadline is deemed to occur on the last preceding day that does not fall on a weekend or a holiday.
DIVISION 2
COMPLIANCE
TAX AUTHORIZATIONS
Reasons not to issue tax authorization
10(1) The director may refuse to issue a tax authorization to a person who
(a) has been convicted of an offence under a tax Act;
(b) is not willing to undertake any duty or obligation he or she would have as the holder of a tax authorization;
(c) is in breach of, or has failed to comply with,
(i) a provision of a tax Act,
(ii) an order or demand made under a tax Act, or
(iii) the terms or conditions of a tax authorization or collector's agreement under a tax Act;
(d) provides incomplete, false, misleading or inaccurate information or records in support of his or her application for the tax authorization; or
(e) in the opinion of the director, does not require a tax authorization.
Additional reasons not to issue tax authorization
10(2) The director may also refuse to issue
(a) a licence or permit under The Tobacco Tax Act to a person who has been convicted of an offence under The Non-Smokers Health Protection Act;
(b) a permit under The Tobacco Tax Act for possessing unmarked tobacco, if the director is not satisfied that the tobacco will be dealt with in accordance with that Act or the regulations under that Act;
(c) a permit under The Tobacco Tax Act for producing Manitoba tear tape as defined under that Act, if the director is not satisfied that the person seeking the permit will
(i) take reasonable steps to ensure the security of the tear tape in the applicant's possession,
(ii) mark the tear tape produced by the applicant in a manner that allows it to be identified as tear tape produced by the applicant,
(iii) keep adequate records of the quantity of tear tape produced by the applicant, and
(iv) co-operate with an inspection, examination or audit by a tax officer or peace officer;
(d) a tax authorization under a fuel tax Act or The Retail Sales Tax Act to a person who was in possession or control of an intoxicating substance or paraphernalia, as defined in section 27.1 of The Public Health Act, at the time it was seized under that Act, if a justice has made an order under section 27.4 of that Act forfeiting the intoxicating substance or paraphernalia.
10(3) Subject to subsection (4), the director may, by written order, cancel a person's tax authorization for any reason for which he or she may refuse to issue such a tax authorization under subsection (1) or (2). But a carrier licence may be cancelled only if it was issued by the director.
Opportunity to make submission
10(4) Before cancelling a person's tax authorization or deciding to refuse to issue a tax authorization to a person, the director must notify the person in writing
(a) that he or she intends to cancel or refuse to issue the tax authorization, and why; and
(b) that the person may, within 14 days after the notice is served on the person, make a submission as to why the tax authorization should not be cancelled or refused.
10(5) If the director believes that a reason to cancel a person's tax authorization exists, the director may, by written order, suspend the tax authorization for up to 30 days. The tax authorization is not valid during the period of the suspension.
When cancellation or suspension becomes effective
10(6) Subject to subsection (7), an order to cancel or suspend a person's tax authorization becomes effective when it is served on the person or at the date and time specified in the order, whichever is later.
Automatic cancellation or refusal to issue
10(7) If a notice under subsection (4) states that the proposed decision or order will become effective at the end of the 14-day period for making a submission unless a submission is made to the director within that period, the decision or order becomes effective at the end of that period, without further notice, if no submission is received within that period.
Appeal of director's decision or order
10(8) The director's decision or order may be appealed to the Court of Queen's Bench under Division 4 (Appeals).
11(1) The holder of a tax authorization issued by the director must return it immediately to the director, along with any additional copies of it in the holder's possession, when
(a) the tax authorization is cancelled or suspended under section 10; or
(b) the holder ceases to carry on the business or activity for which the tax authorization was issued.
In the case of an RST number, the holder must return all original copies of the document used to issue the number to the holder.
11(2) When the holder of a carrier licence is required to return it to the director, the holder must immediately remove from each motor vehicle operated under the licence any carrier decals that were issued in connection with the licence.
REPORTING AND PAYMENT OF TAX
12(1) The director may require a taxpayer or prospective taxpayer to provide the government with a bond to secure the performance of his or her obligation to pay or remit tax when it is due.
12(2) The terms, conditions and amount of the bond must be satisfactory to the director.
12(3) The director may accept a letter of credit or a deposit of cash or securities in lieu of a bond.
Payment by purchaser applied first to tax
13(1) A payment by a purchaser to a collector or deputy collector in respect of a purchase of property or services is deemed to be applied to the tax payable in respect of that purchase until the tax is paid in full and before any part of the payment is applied to the purchase price.
Payment by deputy collector applied first to tax
13(2) A payment by a deputy collector to a collector is deemed to be applied to the payment of any tax collected by the deputy collector and to be remitted to the collector before any part of the payment is applied to any amount otherwise payable by the deputy collector to the collector.
14(1) The following definitions apply in this section.
"extra-provincial contractor" means a person who has entered into a contract to be performed in Manitoba, but does not include a person who at the time of entering into the contract and during the immediately preceding 12 months,
(a) was an individual resident in Manitoba; or
(b) had a permanent place of business in Manitoba. (« entrepreneur extraprovincial »)
"principal" means a person with whom an extra-provincial contractor has entered into a contract to be performed in Manitoba. (« commettant »)
Contractor to provide information
14(2) An extra-provincial contractor who, in connection with a contract to be performed in Manitoba, sells property or services in Manitoba or brings into Manitoba, or receives in Manitoba, tangible personal property or taxable services acquired for the contractor's own use or consumption or for the use or consumption of others at the contractor's expense, must
(a) report the matter to the director; and
(b) provide the director with a copy of all relevant invoices and other information that the director requires in respect of the contract, the property or the services.
Extra-provincial contractor to provide security
14(3) For the purpose of securing an extra-provincial contractor's obligation to pay or remit tax under The Corporation Capital Tax Act, The Retail Sales Tax Act or The Health and Post Secondary Education Tax Levy Act in respect of a contract to be performed in Manitoba, including any tax to be paid or remitted in respect of the property or services referred to in subsection (2), the contractor must provide a bond that
(a) contains terms and conditions satisfactory to the director; and
(b) secures the payment of an amount determined by the director, which must not exceed 9.15% of the total value of the consideration payable under the contract.
14(4) The director may accept a letter of credit or a deposit of cash or securities in lieu of a bond.
14(5) If the extra-provincial contractor has not provided security as required by this section,
(a) the principal is liable, upon assessment under section 46, for the tax and any penalties and interest to be paid or remitted by the contractor in respect of the contract or the property and services referred to in subsection (2); and
(b) payment of that tax, and any related penalties and interest, may be enforced against the principal or the contractor, or both.
Principal entitled to recover amount paid
14(6) A principal who pays an amount under subsection (5) in respect of tax, penalties or interest owing by an extra-provincial contractor is entitled to recover that amount from the contractor, and may
(a) withhold that amount from money owing by the principal to the contractor; or
(b) recover it in a court of competent jurisdiction as a debt owing by the contractor to the principal.
Director may impose reporting or remittance requirements
15(1) Despite the reporting and remittance requirements of a tax Act, the director may, by written order, require a taxpayer to do one or more of the following:
(a) file an information return, whether or not the taxpayer has previously filed one;
(b) provide reports or file information returns in addition to, or earlier or more frequently than, those required by the tax Act;
(c) pay or remit tax, and any applicable interest and penalties, earlier or more frequently than required by the tax Act;
(d) pay or remit tax, and any applicable interest and penalties, by direct deposit to a government account at a financial institution;
(e) in the case of a collector, require the collector
(i) to establish a trust account for the amounts to be collected as tax under a tax Act, and
(ii) to deposit those amounts in the trust account until they are remitted to the minister.
Director may extend filing or payment deadline
15(2) The director may, with or without conditions, extend the deadline for a taxpayer to file a report or information return or to pay or remit tax that would otherwise apply under a tax Act or under an order under subsection (1).
Reporting by receiver, trustee, etc.
16(1) Every person who, as receiver, trustee or other like person, takes control or possession of any business or property of a taxpayer who is or was carrying on a business in Manitoba in relation to which any tax is payable must notify the director in writing, within 10 days after taking control or possession of the business or property, that the person has taken control or possession of it.
Receiver, trustee or other like person to file returns
16(2) The receiver, trustee or other like person, in addition to any other duty that he or she has in that capacity, must file reports and information returns that become due, and pay tax or remit tax that becomes due or payable,
(a) during or in respect of any period during which he or she is acting as a receiver, trustee or other like person in relation to the business or property of the taxpayer; or
(b) in respect of any taxable transaction in which he or she participates as a receiver, trustee or other like person in relation to the business or property of the taxpayer.
Director may issue certificate
16(3) The director, upon being satisfied that
(a) all reports and information returns to be filed under subsection (2) have been filed; and
(b) any tax to be paid or remitted under subsection (2) has been paid or remitted,
may issue a certificate to the receiver, trustee or like person stating he or she has no further liability under this section.
RECORDS
17(1) A taxpayer must maintain records in accordance with
(a) this section and any applicable regulations;
(b) any order or agreement made under a tax Act; and
(c) the terms and conditions of any tax authorization held by the taxpayer.
17(2) The holder of a carrier licence issued by the director must maintain records in accordance with any applicable regulations and the terms and conditions of the licence, and must provide access to those records
(a) to a tax officer at his or her request; or
(b) to an official from a jurisdiction whose government is a party to the International Fuel Tax Agreement referred to in the definition "carrier licence" in section 1, at the request of the official or the director.
17(3) A taxpayer's records must be adequate to enable the following to be determined or verified:
(a) the amount of any tax, interest and penalties to be paid or remitted by the taxpayer;
(b) the taxpayer's entitlement to any credit or refund;
(c) the entitlement to a tax exemption claimed by the taxpayer or applied by the taxpayer in a transaction with another person;
(d) the taxpayer's compliance with the tax Acts and any applicable tax authorization, order or agreement.
Director may order records to be kept
17(4) If the director considers a taxpayer's records to be inadequate for the proper administration and enforcement of a tax Act, the director may, by written order, require the taxpayer to do one or more of the following:
(a) begin maintaining the types of records specified in the order, and to maintain them in the manner specified;
(b) create or complete records for a specified period.
The order may specify a deadline for the taxpayer to comply with the order.
18(1) The records that a taxpayer is required to maintain under a tax Act must be preserved by the taxpayer until
(a) he or she obtains a written authorization from the director allowing them to be destroyed; or
(b) they may be destroyed under subsection (2);
whichever occurs first.
18(2) Subject to subsections (3) and (4), a taxpayer may destroy records when all of the following conditions are met with respect to those records:
(a) they relate to a period for which all returns have been filed and for which the tax, including any related interest or penalty, has been paid or remitted as required by a tax Act;
(b) they relate to a fiscal year of the taxpayer that ended more than six years before the beginning of the current fiscal year;
(c) there is no dispute as to the amount to be paid or remitted for the period to which the records relate;
(d) they do not relate to a period or matter that is currently the subject of an inspection, audit or examination.
Records requiring authorization to be destroyed
18(3) The following records may be destroyed only with the written authorization of the director:
(a) general ledgers;
(b) records required to determine tax payable under The Mining Tax Act and any interest or penalty payable in respect of that tax.
18(4) If the director has, by written notice, required the taxpayer to keep records for a specified period to enable an inspection, examination or audit to be carried out or completed, the taxpayer must not destroy the records until the end of that period or until authorized by the director in writing to do so, whichever occurs first.
18(5) A taxpayer who maintains records in electronic form must ensure that, for as long as they are required to be preserved, they
(a) remain complete and unaltered, apart from any changes or additions made in the normal course of communication, storage or display, from the time they were first made in final form, whether as a paper document or otherwise;
(b) are accessible by the person who is required to retain them; and
(c) are capable of being printed and of being produced in electronically readable format for inspection, examination or audit by a tax officer.
INSPECTIONS
Tax authorization to be produced for inspection
19 The holder of a tax authorization must produce it for inspection by a tax officer upon request by the tax officer.
Records to be made available for inspection, etc.
20 A taxpayer must
(a) make the records that he or she is required to maintain under a tax Act available for inspection, examination or audit by a tax officer at the place where they are maintained; and
(b) if the records are not maintained in Manitoba, pay to the minister, upon receipt of a statement from the director, the amount charged by the director for expenses incurred in inspecting, examining or auditing the records at the place where they are maintained.
21(1) The director may, for any purpose relating to the administration or enforcement of a tax Act, by written order, require a person to
(a) provide any information; or
(b) make available or produce for inspection, examination, audit or testing any records or things in the person's possession or control that relate to the administration of the tax Act.
Who may be required to produce records, etc.
21(2) The order may be addressed and given to
(a) a taxpayer;
(b) a person who deals with or has dealt with a taxpayer; or
(c) a director, officer, agent or employee of a taxpayer or of a person who deals with or has dealt with a taxpayer.
21(3) The order
(a) must state the name of
(i) the person to whom it is directed, and
(ii) if different, the name of the taxpayer to whom the records or other things to be produced or made available for inspection, audit, examination or testing relate;
(b) must specify or describe the information to be provided or the records or other things to be produced or made available and where to produce them or make them available;
(c) may direct the manner in which records or other things are to be produced or made available, including the format in which electronically maintained records are to be produced or made available; and
(d) may specify a deadline for the person to comply with the order.
21(4) A person who fails to comply with an order under this section is liable, upon assessment under section 46, to a penalty of not more than $200. for each day that the failure continues.
22(1) Subject to any conditions imposed by the director, a tax officer may carry out any inspection, examination, audit or test reasonably required to
(a) determine compliance with a tax Act or the terms and conditions of
(i) an order or agreement made under a tax Act, or
(ii) a tax authorization issued under a tax Act;
(b) determine the existence or amount of a tax debt;
(c) verify the accuracy or completeness of an information return or other report, record or information filed with or otherwise provided to the minister or the director;
(d) determine the value of a property, service or transaction in respect of which tax is payable; or
(e) perform any other duty or function the director or tax officer considers necessary or advisable in the administration of a tax Act.
22(2) In order to perform a duty or function under subsection (1) (in this section referred to as an "inspection"), a tax officer may at any reasonable time, without a warrant, enter
(a) any business premises; or
(b) any other premises or place where the tax officer has reasonable grounds to believe records relevant to the administration or enforcement of a tax Act are kept.
Officer to show identification
22(3) A tax officer must show his or her tax officer identification card if requested to do so in the context of an inspection.
22(4) The owner or person in charge of the place of inspection or having custody or control of the relevant records must
(a) produce or make available to the tax officer all records and property that the tax officer requires for the inspection;
(b) provide any assistance or additional information, including personal information, that the tax officer reasonably requires to perform the inspection; and
(c) upon request, provide written answers to the tax officer's questions.
22(5) In order to inspect records that are maintained electronically at the place of inspection, the tax officer may require the owner or person in charge of the premises or of the relevant records to produce the records in the form of a printout or to produce them in an electronically readable format.
22(6) The tax officer may use equipment at the place of inspection to make copies of relevant records, and may remove the copies from the place of inspection for further examination.
Tax officer may remove records to make copies
22(7) A tax officer who is not able to make copies of records at the place of inspection may remove them from the place of inspection to make copies. The tax officer must make the copies as soon as practicable and return the original records to the person or place from which they were removed.
23 A document certified by the minister or a tax officer to be a printout or copy of a record obtained under a tax Act
(a) is admissible in evidence without proof of the office or signature of the person purporting to have made the certificate; and
(b) has the same probative force as the original record.
24(1) A justice, upon being satisfied by information on oath that
(a) a tax officer has been refused entry to any premises or place to carry out an inspection under section 22; or
(b) there are reasonable grounds to believe that
(i) a tax officer will be refused entry to any premises or place to carry out an inspection under section 22, or
(ii) if a tax officer were to be refused entry to any premises or place to carry out an inspection under section 22, delaying the inspection in order to obtain a warrant on the basis of the refusal could be detrimental to the inspection;
may at any time issue a warrant authorizing a tax officer and any other person named in the warrant to enter the premises or place and carry out an inspection under section 22.
24(2) A warrant under this section may be issued upon application without notice.
25(1) When making an inspection under section 22 in relation to a fuel tax Act, a tax officer may, without a warrant, examine the fuel in any tank, container or other receptacle, or in the fuel system of a motor vehicle or other machine.
Stopping vehicle to examine fuel
25(2) For any purpose relating to a fuel tax Act, a tax officer may, without a warrant, signal or request the operator of a 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 regular purchaser of marked fuel;
(b) when the officer has reasonable grounds to believe that the operator is using marked fuel for an unlawful purpose; or
(c) when the vehicle is being operated in an area of Manitoba where marked fuel is ordinarily used or made available for use.
The operator must immediately bring the vehicle to a safe stop and allow the officer to examine the fuel and take a sample of it.
Stopping vehicle operated under carrier licence
25(3) A tax officer may, without a warrant, signal or request the operator of a vehicle that appears to be operated under a carrier lic