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The Budget Implementation and Tax Statutes Amendment Act, 2009

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

S.M. 2009, c. 26

Bill 30, 3rd Session, 39th Legislature

The Budget Implementation and Tax Statutes Amendment Act, 2009

(Assented to June 11, 2009)

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

PART 1

THE BALANCED BUDGET, FISCAL MANAGEMENT AND TAXPAYER ACCOUNTABILITY ACT

C.C.S.M. c. B5 amended

1(1)        The Balanced Budget, Fiscal Management and Taxpayer Accountability Act is amended by this section.

1(2)        Subclause 13(2)(a)(i) is amended by adding "after 2011" after "section 14".

1(3)        The following is added after subsection 13(2):

Exception for 2009-10 and 2010-11

13(2.1)     Subsection (2) does not apply to the 2009-10 and 2010-11 fiscal years, but the minister may transfer to the debt retirement account — in addition to the sum of $20,000,000 transferred on June 1, 2009 for the 2009-10 fiscal year — any portion or additional portion of the amounts determined under subsection (2) that the minister considers feasible to transfer for those fiscal years.

PART 2

THE CORPORATION CAPITAL TAX ACT

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

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

3           Section 1 is amended by adding the following definition:

"AOCI" means accumulated other comprehensive income; (« CAERE »)

4           The part of section 5 before clause (a) is replaced with the following:

Rules for determining various amounts

5           In determining for the purposes of this Act the amount of a corporation's AOCI, its total assets, its cost of investments or its "any other surplus", the amount includes

5(1)        Clause 8(1)(c) is amended by adding ", for greater certainty, the corporation's AOCI and" before "any deferred income tax".

5(2)        Clause 8(4)(d) is replaced with the following:

(d) its reserves including, for greater certainty, its AOCI;

5(3)        Clause 8(5)(c) is amended by adding ", for greater certainty, the corporation's AOCI and" before "any deferred income tax".

6(1)        The part of subsection 13.1(4) before clause (a) is amended by striking out "The costs" and substituting "If the corporation is not a member of a partnership, the costs".

6(2)        The following is added after subsection 13.1(4):

How to determine costs — member of partnership

13.1(5)     If the corporation is a member of a partnership at any time in the corporation's fiscal year, the costs referred to in subsection (3) are to be determined in accordance with section 5204 of the Income Tax Regulations (Canada), with the following changes to that section and to section 5202 of those regulations as it applies to section 5204:

(a) the references in section 5204 to "taxation year" are to be read as "fiscal year";

(b) the references to "Canada" in the following provisions are to be read as "Manitoba":

(i) paragraph (d) of the definition "cost of capital" in section 5204,

(ii) paragraph (e) of the definition "cost of labour" in section 5204,

(iii) paragraphs (a) and (b) of the definition "qualified activities" in section 5202;

(c) the definition "cost of manufacturing and processing capital" in section 5204 is to be read without reference to "100/85 of";

(d) the definition "cost of manufacturing and processing labour" in section 5204 is to be read without reference to "100/75 of";

(e) the definition "qualified activities" in section 5202 is to be read as if the expression "manufacturing or processing" had the same meaning as in subsection 125.1(3) of the Income Tax Act (Canada), and did not include any activities of a corporation that in the fiscal year receives more than 50% of its funding directly or indirectly from the Government of Canada, the Government of Manitoba or a municipality, or from any combination of them.

PART 3

THE GASOLINE TAX ACT

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

7           The Gasoline Tax Act is amended by this Part.

8           Section 1 is amended by adding the following definitions:

"commercial cargo flight" means a commercial flight by an aircraft that is configured for carrying only cargo; (« vol commercial de transport de marchandises »)

"international cargo flight" means a commercial cargo flight that

(a) originates outside Canada and arrives at an airport in Manitoba, where cargo loaded onto the aircraft outside Canada is unloaded, or

(b) originates in Canada and arrives at an airport outside Canada, where cargo loaded onto the aircraft in Manitoba is unloaded; (« vol international de transport de marchandises »)

9           Clause 2(1)(b) is replaced with the following:

(b) for aircraft gasoline,

(i) 1.5¢ per litre, if it is delivered directly into the fuel tanks of an aircraft for a commercial cargo flight, or

(ii) 3.2¢ per litre, in any other case;

10(1)       The following is added after subclause 2.1(1)(f)(iii):

(iv) operating an engine off-road in connection with forest renewal activities, including scarification and site preparation;

10(2)       Subsections 2.1(4) to (6) are repealed.

11          The following is added after subsection 2.2(1):

Refund re aircraft gasoline used for international cargo flight

2.2(1.1)    A purchaser of aircraft gasoline is entitled to a refund of the tax paid on that gasoline if

(a) the gasoline is purchased on the arrival or departure of an international cargo flight and is delivered directly into a fuel tank of the aircraft that made or is about to make that flight; and

(b) the purchaser applies for the refund in accordance with subsection (4).

12          Sections 6 and 13 are repealed.

13(1)       The part of subsection 18.3(1) before clause (a) is amended by striking out "prescribed fee" and substituting "applicable fees".

13(2)       Subsection 18.3(2) is amended by striking out "prescribed fee" and substituting "applicable fee".

13(3)       The following is added after subsection 18.3(2):

Licence and decal fees

18.3(2.1)   The fee payable

(a) for a carrier licence is $65; and

(b) for each set of two carrier decals is $5.

14          Subsection 39(1) is amended by repealing clauses (f), (i), (k), (l) and (m).

Unproclaimed amendment repealed

15          Subsection 6(3) of The Biofuels Amendment Act, S.M. 2007, c. 17, is repealed.

PART 4

THE INCOME TAX ACT

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

16          The Income Tax Act is amended by this Part.

17          Paragraph 4.7(1)(b)(i)(C) is replaced with the following:

(C) 3.15% for the 2008 taxation year,

(D) 2.5% for the 2009 and 2010 taxation years,

(E) 1.75% for a taxation year ending after 2010, and

18          The following is added after subsection 4.9.1(3):

One claim per calendar year

4.9.1(4)    If an individual becomes bankrupt in a calendar year, the total of the amounts that may be claimed under subsection (1) for the individual's taxation years ending in the calendar year shall not exceed the amount that could have been claimed under that subsection for the calendar year if the individual had not become bankrupt.

19          Clause (b) of the definition "family income" in section 5.3 is replaced with the following:

(b) where applicable, the amount that would be determined under clause (a) if no amount were

(i) included under paragraph 56(1)(q.1) of the federal Act (registered disability savings plan payments),

(ii) included under subsection 56(6) of the federal Act (universal child care benefit), or

(iii) deducted under paragraph 60(y) of the federal Act (repayment of universal child care benefit);

20(1)       In subsection 5.4(3), the description of A in the formula is amended in subclause (b)(i) by striking out "$75." and substituting "$25.".

20(2)       Subsection 5.4(4) is amended

(a) by striking out "$75." and substituting "$25."; and

(b) by striking out "$200." and substituting "$150.".

21          Clause 5.6(1)(a) is amended by striking out "$525." and substituting "$650.".

22(1)       Subsection 5.11(1) is amended

(a) by adding the following definitions:

"assessing authority", in relation to an individual, means the regional health authority that administers the Manitoba Home Care Program in the area in which the individual resides, and includes the Department of Family Services and Housing if the individual is a recipient of services under the Children's Special Services program or the Supported Living Program of that department. (« office chargé des évaluations »)

"qualified care recipient" means an individual who

(a) ordinarily resides in a private home or apartment in Manitoba; and

(b) under the most recent assessment

(i) made by an assessing authority in relation to the individual, or

(ii) made by a health care provider and approved by an assessing authority in relation to the individual, is assessed as requiring a level of care equivalent to level 2, 3 or 4 care under the Manitoba Home Care program. (« bénéficiaire de soins admissible »)

(b) by replacing the definitions "creditable period" and "interruption period" with the following:

"creditable period" of a primary caregiver in relation to a qualified care recipient means the period that

(a) begins when the caregiver has provided care or supervision to the recipient for a period of 90 days beginning after last becoming the recipient's primary caregiver; and

(b) ends when

(i) the caregiver ceases to provide care or supervision as the recipient's primary caregiver,

(ii) an interruption period in relation to the recipient has lasted three years, or

(iii) the recipient permanently ceases to be a qualified care recipient. (« période ouvrant droit à un crédit »)

"interruption period" in relation to a period of care of a qualified care recipient means, subject to the regulations, a period of more than 14 consecutive days during which

(a) the recipient is hospitalized or temporarily residing in a personal care home or other institution; or

(b) the recipient has temporarily ceased to be a qualified care recipient, or the recipient's primary caregiver has not provided care or supervision to the recipient.

It also includes a period prescribed by regulation as an interruption period. (« période d'interruption »)

(c) in the definition "primary caregiver", by replacing clauses (b) to (d) with the following:

(b) without any remuneration other than the tax credit under this section, personally provides care or supervision to a qualified care recipient; and

(c) has acknowledged in writing to the assessing authority, in a form acceptable to that authority, his or her role as the recipient's sole primary caregiver.

(d) by repealing the definitions "qualified home care client" and "responsible regional health authority".

22(2)       Subsection 5.11(2) is amended

(a) in the part before the formula, by striking out "home care client" and substituting "care recipient";

(b) in clauses (a), (b) and (d) of the description of A in the formula, by striking out "client" and substituting "recipient"; and

(c) in clause (c) of the description of A in the formula, by striking out "home care clients" and substituting "care recipients".

22(3)       Clause 5.11(3)(c) is amended

(a) in subclause (i), by adding "personal information and" after "including"; and

(b) in subclause (ii), by striking out everything after "including" and substituting "personal information and personal health information, by an assessing authority;".

23          The table in subsection 7(3) is amended by replacing the last row with the following:

July 1, 2009 to Nov. 30, 2010 12% 11%
after Nov. 30, 2010 12% 12%

24(1)       Clause 7.2(1.1)(b) is amended in the part before subclause (i) by striking out "50%" and substituting "70%".

24(2)       Subsection 7.2(1.2) is amended

(a) in the part before clause (a), by striking out "50%" and substituting "70%"; and

(b) in clause (c), by striking out everything after "2008".

25          Subsection 7.3(7) is replaced with the following:

Corporation may renounce tax credit

7.3(7)      A corporation may renounce its entitlement to all or any part of the portion of its research and development tax credit that is attributable to eligible expenditures incurred in a taxation year, but only if it does so no later than one year after the filing-due date for that taxation year.

Effect of renunciation before filing-due date

7.3(7.1)    A corporation that renounces an amount under subsection (7) in respect of a taxation year before the filing-due date for that year is deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the amount.

Effect of renunciation within following year

7.3(7.2)    A corporation that renounces an amount under subsection (7) in respect of a taxation year within the 365-day period immediately following the filing-due date for that year is deemed for that year, for all purposes except

(a) paragraph 37(1)(d) of the federal Act (scientific research and experimental development); and

(b) subsections 127(18) to (20) of the federal Act (reduction of qualified expenditure);

never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the amount.

26(1)       Subsection 10.1(2) is amended

(a) in clauses (a) and (b), by striking out "2009" and substituting "2012";

(b) in clause (c), by adding ", and before 2012" after "2008"; and

(c) by striking out "or" at the end of clause (b), adding "or" at the end of clause (c) and adding the following after clause (c):

(d) a tax credit of the taxpayer for the year, as determined under subsection (6.4), in respect of the salary or wages paid by the taxpayer for a period of qualifying employment of a qualifying apprentice who began a level in an apprenticeship program after 2008 and before 2012.

26(2)       Clause 10.1(4)(a) of the English version is amended by striking out "word" and substituting "work".

26(3)       The following is added after subsection 10.1(6.3):

Credit for employment of apprentice

10.1(6.4)   Subject to subsection (6.6), the tax credit of a taxpayer for a taxation year in respect of a period of employment of a qualifying apprentice is the amount determined by the following formula:

tax credit = W × A/B

In this formula,

W

is the lesser of

(a) $2,500., and

(b) 5% of the amount by which

(i) the total salary and wages paid to the apprentice for a period of qualifying employment that ended in the taxation year,

exceeds

(ii) the amount of any other government assistance received or receivable by the taxpayer in respect of the salary and wages paid to the apprentice for that period;

A

is the total salary and wages paid by the taxpayer to the apprentice for the period of qualifying employment or, if they were paid by a partnership in which the taxpayer is a general partner, the taxpayer's pro rata share of the salary and wages so paid by the partnership;

B

is the total salary and wages paid to the apprentice for the period of qualifying employment.

Minimum wage requirement

10.1(6.5)   For the purpose of subsection (6.4), the salary and wages paid to an apprentice are deemed to be nil if the rate of pay is less than the applicable minimum wage rate.

Restriction

10.1(6.6)   The tax credit under subsection (6.4) in respect of a period of employment of an apprentice is nil if the taxpayer fails to file with his or her return for the taxation year a statement under subsection (7) certifying the period of employment to be a period of qualifying employment and the apprentice to be a qualifying apprentice.

26(4)       Subsection 10.1(7) is amended by striking out "or" at the end of clause (b), adding "or" at the end of clause (c) and adding the following after clause (c):

(d) an apprentice to be a qualifying apprentice and a period of employment of the apprentice to be a period of qualifying employment.

26(5)       Clause 10.1(8)(a) is replaced with the following:

(a) defining the following expressions:

(i) "government assistance",

(ii) "period of qualifying employment",

(iii) "qualifying apprentice",

(iv) "qualifying graduate",

(v) "qualifying journeyperson",

(vi) "qualifying work placement";

26(6)       The following is added after clause 10.1(8)(d):

(d.1) enabling two or more taxpayers to share the co-op education and apprenticeship tax credit that would have been available to a single employer if an individual hired by them for consecutive periods of employment had been hired by the single employer for those periods;

27          Clauses (b) and (c) of the definition "eligible expenditure" in subsection 10.2(2) are amended by striking out "2010" and substituting "2012".

28          The definition "eligible book" in subsection 10.4(3) is amended

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

(b) it is published after April 9, 2008, and before 2012;

(b) in clauses (f) and (g), by adding "fee or" after "is paid a".

29(1)       The definition "qualifying trust" in subsection 11.1(1) is replaced with the following:

"qualifying trust" for an individual in respect of an approved share means

(a) a trust governed by a registered retirement savings plan under which

(i) if it is not a spousal plan, the individual is the annuitant, or

(ii) if it is a spousal plan, the individual or the individual's spouse or common-law partner is the annuitant, if the individual and no other individual claims a deduction under this section in respect of the share, or

(b) an arrangement in trust that is registered under the federal Act, and under the Social Insurance Number of the individual, as a TFSA; (« fiducie admissible »)

29(2)       Clause 11.1(2.1)(b) is replaced with the following:

(b) the amount determined by the following formula:

A − B

In this formula,

A

is the total of all amounts each of which is the individual's labour-sponsored funds tax credit in respect of the original acquisition in the taxation year or in the first 60 days of the following year of an approved share,

B

is the portion of the amount determined for A that was deducted under this subsection for the preceding taxation year.

29(3)       Subsection 11.1(5) is amended by striking out everything after "exceed" and substituting "$12,000."

30(1)       Subsection 11.5(1) is amended in the part before clause (a) by striking out "a Class A share of the capital stock" and substituting "an approved share".

30(2)       The following is added after subsection 11.5(1):

Exchange of Class A shares

11.5(1.1)   Subject to subsection (1.2), if a corporation issues an approved share (the "new share") to the holder of another approved share of the corporation (the "old share") in exchange for the old share within eight years after the original acquisition of the old share,

(a) the holder is not entitled to a tax credit under section 11.1 in respect of the new share;

(b) subsection (1) does not apply to the reacquisition or cancellation of the old share on the exchange; and

(c) for the purposes of this section, the original acquisition of the new share is deemed to have occurred at the time of the original acquisition of the old share.

No non-share consideration

11.5(1.2)   Subsection (1.1) does not apply if

(a) the corporation receives any consideration for the new share other than the old share; or

(b) the holder to whom the new share is issued receives any consideration for the old share other than the new share.

30(3)       Subsection 11.5(2) is amended

(a) in the part before clause (a), by striking out "a Class A share" and substituting "an approved share";

(b) by repealing clause (a);

(c) in the French version of the part of subclause (c)(i) before paragraph (A), by striking out "ou est" and substituting "ou";

(d) by striking out "or" at the end of paragraph (c)(i)(A), striking out "and" at the end of paragraph (c)(i)(B) and substituting "or", and adding the following after paragraph (c)(i)(B):

(C) a trust governed by a TFSA of the individual, spouse or common-law partner, and

(e) in clause (d), by striking out "or was the annuitant" and substituting ", whose TFSA held the share, or who was the annuitant".

30(4)       Subsection 11.5(2.1) is amended in the part before clause (a) by striking out "a Class A share" and substituting "an approved share".

30(5)       Clause 11.5(5)(a) is amended by striking out "a Class A share" and substituting "an approved share".

31          Subsection 11.5.1(1) is amended in the part before the formula by striking out "a Class A share of the capital stock" and substituting "an approved share".

32(1)       Subsection 11.7(1) is replaced with the following:

"Flow-through mining expenditure" defined

11.7(1)     In this section, "flow-through mining expenditure" of an individual for a taxation year means an amount that

(a) is directly attributable to expenditures that

(i) were incurred after March of that year and before April of the following year for exploration in Manitoba for a mineral resource in Manitoba,

(ii) are for goods or services, or both goods and services, most of which, if they were available in Manitoba, were provided in Manitoba,

(iii) have been approved by the minister responsible for The Mines and Minerals Act, or a person authorized by the minister for the purpose, as expenditures that qualify for a mineral exploration tax credit, and

(iv) are not expenditures in relation to which a tax credit under this section may be claimed by another person; and

(b) is included in the individual's flow-through mining expenditure for the year under subsection 127(9) of the federal Act, or would be so included if paragraphs (a), (c) and (d) of the definition "flow-through mining expenditure" in that subsection were read as follows:

"(a) that is a Canadian exploration expense incurred by a corporation after March of that year and before the end of the following year (including, for greater certainty, an expense that is deemed by subsection 66(12.66) to be incurred before the end of that following year) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or quality of a mineral resource described in paragraph (a) or (d) of the definition "mineral resource" in subsection 248(1),"

"(c) an amount in respect of which is renounced in accordance with subsection 66(12.6) by the corporation to the taxpayer (or a partnership of which the taxpayer is a member) under an agreement described in that subsection and made after March of that year and before April of the following year, and"

"(d) that is not an expense that was renounced under subsection 66(12.6) to the corporation (or a partnership of which the corporation is a member), unless that renunciation was under an agreement described in that subsection and made after March of that year and before April of the following year."

32(2)       Subsection 11.7(2) is amended

(a) in the part before clause (a), by adding "and before 2012" after "after 2001"; and

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

(b) the following percentage of the individual's flow-through mining expenditure for the year:

(i) 10%, for a year before 2009,

(ii) 20%, for 2009,

(iii) 30%, for a year after 2009.

32(3)       The following is added after subsection 11.7(3):

No carryback of unused credit from increased percentage

11.7(3.1)   For the purpose of determining the amount A in the formula in subsection (3)

(a) for 2008 or any earlier year, the percentages in subclauses (2)(b)(ii) and (iii) are to be read as "10%"; and

(b) for 2009, the percentage in subclause (2)(b)(iii) is to be read as "20%".

33          The definition "qualifying trust" in subsection 11.8(1) is replaced with the following:

"qualifying trust", in relation to an individual, means

(a) a trust governed by a registered retirement savings plan under which

(i) if it is not a spousal plan, the individual is the annuitant, or

(ii) if it is a spousal plan, the individual or the individual's spouse or common-law partner is the annuitant, if the individual and no other individual claims a deduction under this section in respect of the share, and

(b) an arrangement in trust that is registered under the federal Act, and under the Social Insurance Number of the individual, as a TFSA; (« fiducie admissible »)

34          Clause 11.11(2)(b) is amended

(a) in subclause (i), by striking out "or who was the annuitant" and substituting ", whose TFSA held the share, or who was the annuitant"; and

(b) in subclause (ii), by striking out "or" at the end of paragraph (A), adding "or" at the end of paragraph (B) and adding the following after paragraph (B):

(C) a trust governed by a TFSA of the individual, spouse or common-law partner.

35          The definition "eligible investor" in subsection 11.13(1) is amended

(a) in the part before clause (a), by striking out ", in relation to an investment,"; and

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

(a) a corporation that is not a prescribed venture capital corporation or prescribed labour-sponsored venture capital corporation under Part LXVII of the federal regulations; and

PART 5

THE LABOUR-SPONSORED VENTURE CAPITAL CORPORATIONS ACT

C.C.S.M. c. L12 amended

36          The definition "Class A share" in subsection 1(1) of The Labour-Sponsored Venture Capital Corporations Act is amended in the part before clause (a) by striking out "is issuable only to an individual (other than a trust) or a trust governed by a registered retirement savings plan and that".

PART 6

THE MINING TAX ACT

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

37          The Mining Tax Act is amended by this Part.

38          Subsection 13(1) is replaced with the following:

Imposition of tax

13(1)       An operator of a mineral processing establishment in Manitoba must pay to the minister a tax for each fiscal year equal to

(a) 10% of the operator's profit for the year, if the profit for the year is $50,000,000 or less;

(b) $5,000,000 plus 65% of the operator's profit for the year in excess of $50,000,000, if the profit for the year is more than $50,000,000 and not more than $55,000,000;

(c) 15% of the operator's profit for the year, if the profit for the year is more than $55,000,000 but not more than $100,000,000;

(d) $15,000,000 plus 57% of the operator's profit for the year in excess of $100,000,000, if the profit for the year is more than $100,000,000 and not more than $105,000,000; or

(e) 17% of the operator's profit for the year, if the profit for the year is more than $105,000,000.

39          Subsection 44(2) is replaced with the following:

Payments into reserve

44(2)       Before the books of the government for a fiscal year have been closed, the Lieutenant Governor in Council may order a portion of the taxes received or receivable under this Act for the year to be transferred to the mining community reserve.  That portion must not exceed 6% of the taxes received or receivable for the year.  If the order is made after the end of the fiscal year the transfer is deemed to have occurred on the last day of that fiscal year.

PART 7

THE MOTIVE FUEL TAX ACT

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

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

41          Section 1 is amended by adding the following definitions:

"commercial cargo flight" means a commercial flight by an aircraft that is configured for carrying only cargo; (« vol commercial de transport de marchandises »)

"international cargo flight" means a commercial cargo flight that

(a) originates outside Canada and arrives at an airport in Manitoba, where cargo loaded onto the aircraft outside Canada is unloaded, or

(b) originates in Canada and arrives at an airport outside Canada, where cargo loaded onto the aircraft in Manitoba is unloaded; (« vol international de transport de marchandises »)

42          Clause 2(1)(d) is replaced with the following:

(d) for jet fuel,

(i) 1.5¢ per litre, if it is delivered directly into the fuel tanks of an aircraft for a commercial cargo flight, or

(ii) 3.2¢ per litre, in any other case;

43(1)       The following is added after subclause 2.1(2)(e)(iii):

(iv) operating an engine off-road in connection with forest renewal activities, including scarification and site preparation;

43(2)       Subsections 2.1(4) to (6) are repealed.

44          The following is added after subsection 2.2(1):

Refund re jet fuel used for international cargo flight

2.2(1.1)    A purchaser of jet fuel is entitled to a refund of the tax paid on that fuel if

(a) the fuel is purchased on the arrival or departure of an international cargo flight and is delivered directly into a fuel tank of the aircraft that made or is about to make that flight; and

(b) the purchaser applies for the refund in accordance with subsection (4).

45          Sections 7 and 14 are repealed.

46(1)       The part of subsection 19.3(1) before clause (a) is amended by striking out "prescribed fee" and substituting "applicable fees".

46(2)       Subsection 19.3(2) is amended by striking out "prescribed fee" and substituting "applicable fee".

46(3)       The following is added after subsection 19.3(2):

Licence and decal fees

19.3(2.1)   The fee payable

(a) for a carrier licence is $65; and

(b) for each set of two carrier decals is $5.

47          Subsection 38(1) is amended by repealing clauses (d), (g), (h), (i), (j) and (k).

S.M. 2008, c. 3 amended

48(1)       This section amends The Budget Implementation and Tax Statutes Amendment Act, 2008, S.M. 2008, c. 3.

48(2)       Subsection 54(1) of the French version is amended by striking out "paragraphe de" and substituting "paragraphe".

48(3)       Subsection 54(2) is replaced with the following:

54(2) Subsection 3(2) is amended by adding "clause 2(1)(b) or" after "except as provided in".

PART 8

THE MUNICIPAL ASSESSMENT ACT

C.C.S.M. c. M226 amended

49          The following is added after subsection 22(1) of The Municipal Assessment Act:

Exemption for sports or recreational facility on university land

22(1.1)     Subject to sections 25 and 26, real property is exempt from taxation levied by a municipality, other than for local improvements, where

(a) the land is owned by a university and leased to the Crown, a municipality or a person, or to any combination of them; and

(b) an improvement situated on the land

(i) is, or is designed to be, an outdoor or indoor sports or recreational facility,

(ii) is used primarily for sport or recreational purposes, and

(iii) is

(A) used by a non-profit organization whose purposes and objects include promoting participation in sport or recreational activity, or

(B) used in accordance with an agreement that authorizes it to be used, at least in part, by the university and community groups for sport or recreational purposes.

Application of subsection (1.1)

22(1.2)     The exemption under subsection (1.1) applies to all portions of an improvement described in clause (1.1)(b), including those portions used to prepare, provide, serve or sell food, refreshments or merchandise when an event is being held at the improvement, except those portions that are used for retail shops, restaurants and other businesses which offer goods and services to the public on a regular basis without regard to whether an event is being held at the improvement.

PART 9

THE RETAIL SALES TAX ACT

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

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

51(1)       The definition ""purchase price" or "sale price"" in subsection 1(1) is amended

(a) in the part of clause (a) before subclause (i), by striking out "other than" and substituting "including a charge for a licence or other right relating to the use of property that is the subject of the purchase, if that property cannot be purchased or used by the purchaser without that licence or other right, but not including";

(b) by replacing subclause (a)(ii) with the following:

(ii) a charge for the delivery of tangible personal property from the seller's premises in Manitoba, if

(A) the charge is in addition to the usual or established cash selling price of the property or service that is the subject of the sale and is billed to the purchaser as a separate charge, and

(B) the seller regularly sells tangible personal property for delivery at those premises, or sells taxable services to be provided at those premises in respect of tangible personal property,

(c) in clause (c), by striking out "and" at the end of subclause (iii), adding "and" at the end of subclause (iv) and adding the following after subclause (iv):

(v) a sales tax imposed under the laws of any jurisdiction other than Manitoba,

51(2)        The definition "purchaser" in subsection 1(1) is amended

(a) in clause (c) of the English version, by striking out "by him outside the province, or" and substituting "by the person outside the province,";

(b) by repealing clause (d); and

(c) by replacing the part after clause (d) with the following:

for consumption by the person at his or her own expense, by anyone else at the person's expense, or by the person or anyone else at the expense of anyone for whom the person is acting as agent, and includes a promotional distributor in relation to tangible personal property or a taxable service provided by way of a promotional distribution if its fair value is greater than any amount paid for it by the person to whom it is provided;

52(1)       Clause 2(1.2)(c) is replaced with the following:

(c) drying grain in the course of farming.

52(2)       Subsection 2(5) is replaced with the following:

Deemed purchase

2(5)        A person who

(a) consumes, in Manitoba, tangible personal property that was

(i) acquired by the person for resale,

(ii) acquired or reacquired by the person because of his or her rights as a secured creditor,

(iii) manufactured, processed or produced by the person in Manitoba or outside Manitoba, or

(iv) purchased by the person outside of Manitoba; and

(b) in relation to that property, is not otherwise a purchaser as defined in subsection 1(1);

is deemed to be a purchaser of the property and is deemed to have purchased it at its fair value at a retail sale in Manitoba. For this purpose, if one person consumes property on behalf of, or at the expense of, another person, the other person is considered to consume it.

52(3)       Subsection 2(18) is replaced with the following:

Collection of tax upon vehicle registration

2(18)       A person authorized by the minister for the purpose of subsection (4.1) or section 2.2 (tax payable on registration of motor vehicle) must

(a) collect the tax payable to the person under those provisions; and

(b) file returns with the director and remit the tax to the minister in accordance with the regulations as if the person were a vendor.

53          Section 2.2 is replaced with the following:

Definitions

2.2(1)      The following definitions apply in this section.

"authorized person" means a person authorized by the minister to collect the tax payable in respect of the purchase or other acquisition of a motor vehicle to which this section applies. (« personne autorisée »)

"market value", in relation to a motor vehicle, means the greater of its purchase price and its appraised value as set out in a motor vehicle appraisal report in approved form and certified by

(a) a motor vehicle dealer with an RST number and a valid dealer permit issued under Part 7 of The Drivers and Vehicles Act; or

(b) an employee of an appraisal firm who is qualified to appraise motor vehicles. (« valeur marchande »)

"motor vehicle" means vehicle having a curb weight of 3,000 kg or less that is required to be registered under The Drivers and Vehicles Act. (« véhicule automobile »)

Application

2.2(2)      This section applies to the purchase or other acquisition of a motor vehicle from a person other than a vendor who holds a valid dealer permit issued under Part 7 of The Drivers and Vehicles Act.

Fair value for computing tax payable

2.2(3)      For the purpose of subsection 2(1), the fair value of a used motor vehicle is

(a) the greater of its purchase price and the average wholesale price of such a vehicle determined in the manner authorized by the minister, unless the average wholesale price is less than $1,000; or

(b) its fair value as defined in subsection 1(1), if the average wholesale price is less than $1,000.

Tax payable to authorized person

2.2(4)      The tax payable on the purchase of a motor vehicle must be paid to an authorized person at the time of registering the vehicle under The Drivers and Vehicles Act.

Claiming a tax exemption

2.2(5)      To claim an exemption under clause 3(1)(y) or any of subsections 3(18) to (18.5) in respect of the purchase of a motor vehicle, the purchaser must provide to the authorized person, at the time of registering the vehicle

(a) a completed exemption claim form, in approved form; and

(b) any other information that the director requires the authorized person to obtain from the purchaser in support of the claim.

Claiming vehicle not acquired on a sale

2.2(6)      A person claiming that no tax is payable at the time of registering a vehicle because it was not acquired by the person by way of a sale as defined in subsection 1(1) must provide to the authorized person, at the time of registering the vehicle,

(a) a completed claim form, in approved form; and

(b) any other information that the director requires the authorized person to obtain from the person in support of the claim.

Diplomat with RST number

2.2(7)      An official to whom an RST number has been issued under subsection 5(6) may present the RST number to the authorized person and register the vehicle without paying tax under this Act.

Reduction of tax payable

2.2(8)      If the authorized person to whom the tax is payable is satisfied

(a) that the average wholesale price of such a motor vehicle is $1,000 or more; and

(b) based on the motor vehicle appraisal report provided by the purchaser, that the vehicle's market value is, because of severe damage or excessive use, less than the average wholesale price of such a vehicle;

the authorized person may reduce the tax otherwise payable to the tax that would be payable if the vehicle's fair value were its market value.

54(1)       Clause 2.3(10)(c) is amended by adding "and the tax was not refunded under subsection (10.1)" at the end.

54(2)       The following is added after subsection 2.3(10):

Refund of tax previously paid

2.3(10.1)   The minister may, on application by a purchaser, refund the tax paid by the purchaser under section 2 in respect of the purchase of a vehicle if the minister is satisfied, based on documentary evidence provided by the purchaser, that the purchaser registered the vehicle for interjurisdictional commercial purposes within 30 days after the date of purchase.

55          Clause 2.4(3)(a) is amended by striking out "provided" wherever it occurs and substituting "sold".

56(1)       Subsection 3(1) is amended

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

(e) drugs and biological products, as defined in the regulations, when purchased for human use;

(b) in clause (g), by adding ", when purchased for human use" at the end;

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

(hh) containers purchased by

(i) a farmer for transporting agricultural products produced by him or her, or

(ii) a fisher for transporting fish or fish products caught or produced by him or her;

(hh.1) containers purchased by

(i) a farmers' co-operative, or a similar organization, for transporting agricultural products produced by its members, or

(ii) a fishers' co-operative, or a similar organization, for transporting the fish or fish products caught or produced by its members;

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

(ii) fire trucks and firefighting and rescue equipment installed or carried on fire trucks, including oxygen purchased for use by firefighters in the course of their rescue operations, but not including protective gear worn by firefighters;

(e) in subclause (yy)(i), by striking out "purchased before July 2009 and".

56(2)       Clause 3(36)(c) is replaced with the following:

(c) drying grain in the course of farming.

56(3)       The following is added after subsection 3(38):

Exemption for lease

3(39)       Despite section 2, no tax is payable in respect of a lease of tangible personal property if

(a) the lessee has paid tax under section 2 in respect of a previous purchase of the property; and

(b) the lease is part of a sale and immediate lease-back arrangement under which the lessee sold the property to the lessor.

57(1)       The following is added after subsection 4(1.4):

Veterinarian services not taxable

4(1.5)       A service performed by a veterinarian is not a taxable service.

57(2)       Subsection 4(8) is amended

(a) in clause (a), by striking out "clause 3(1)(f), (g), (h), (i), (o.1), (p)," and substituting "clause 3(1)(f), (f.1), (g), (h), (i), (o.1), (p), (q.1), (r),"; and

(b) 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) software to which subsection 3(37) applies.

57(3)       The following is added after subsection 4(11):

No tax on police or fire department service

4(12)       No tax is payable on the purchase of a service provided by a police or fire department.

58          Subsection 5(4) is repealed.

59          Subsection 9(1) is repealed.

60(1)       The following is added after subsection 26(9):

Six-month period

26(9.1)     In determining whether an amount may be refunded to a person under subsection (4), (8) or (9), the period between selling a vehicle or aircraft and purchasing or leasing another vehicle or aircraft is the period between

(a) the date that the person transferred title to the sold vehicle or aircraft to the buyer; and

(b) the date that the person acquired title to the purchased vehicle or aircraft or, in the case of a lease, the commencement date of the lease.

"Sells" does not include "leases"

26(9.2)     For the purposes of subsections (4), (8) and (9), "sells" does not include "leases".

60(2)       Subsection 26(13) is amended in the part before clause (a) by striking out "purchased before July 2009 and".

60(3)       The following is added after subsection 26(13):

Refund in respect of hospital bed or lift chair

26(14)      On application by or on behalf of a purchaser who is physically disabled or a chronic invalid, the minister may refund the tax paid by the purchaser on the purchase of a lift chair or a hospital bed or other similar bed.  The application must be accompanied by a copy of the invoice and a copy of a medical doctor's order for the purchaser to obtain that equipment.

PART 10

THE SUMMARY CONVICTIONS ACT

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

61          Subsection 8(3) of The Summary Convictions Act is amended by striking out "35%" and substituting "45%".

PART 11

THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT

C.C.S.M. c. T2 amended

62          The Tax Administration and Miscellaneous Taxes Act is amended by this Part.

63(1)       Clause 10(1)(a) is replaced with the following:

(a) has been convicted of an offence under a tax Act or under a taxation Act of Canada or of another province or territory of Canada;

63(2)       Subsection 10(1) is renumbered as subsection 10(1.2) and the following is added as subsections 10(1) and (1.1):

Director may issue tax authorization

10(1)       A tax authorization may be issued by the director subject to any terms or conditions that are not inconsistent with the tax Act under which the tax authorization is required and the regulations under that Act.

Application for tax authorization

10(1.1)     A person requiring a tax authorization must apply to the director for it in a form approved by the director, and must pay any applicable fee.

63(3)       The following is added as subsection 10(1.3):

Additional reason not to issue tax authorization to corporation, partnership or trust

10(1.3)      The director may refuse to issue a tax authorization to a corporation, partnership or trust if

(a) in the case of a corporation, a director or officer of the corporation, or a person who controls the corporation or belongs to a related group that controls the corporation;

(b) in the case of a partnership, a member or officer of the partnership, or a person who controls the partnership or belongs to a related group that controls the partnership; or

(c) in the case of a trust, a trustee or officer of the trust, or a person who controls the trust or belongs to a related group that controls the trust;

has been convicted of an offence under a tax Act or under a taxation Act of Canada or of another province or territory of Canada or was, at the time of the commission of such an offence by a corporation that was later convicted of the offence, a director or officer of that corporation.

63(4)       Subsection 10(3) is amended by striking out "subsection (1) or (2)" and substituting "this section".

64          The following is added after section 10:

Tax authorization not transferable

10.1        A tax authorization is not transferable.

Tax authorization does not satisfy other requirement

10.2        The requirement for a tax authorization is in addition to any other requirement in an Act or regulation for a licence, permit or other authorization.

65          The following is added after section 12:

Collector is agent of government

12.1        For the purposes of collecting and remitting tax, a collector is an agent of the government.

66          Subsection 22(5) is amended by adding ", or to do both" at the end.

67          The following is added after section 27:

Investigative warrant

27.1(1)     Subject to subsection (2), a judge may issue a warrant authorizing a tax officer, and any other persons named in the warrant, to use a device or investigative technique or procedure specified in the warrant that, if not authorized, would constitute an unreasonable search.

Conditions for issuing warrant

27.1(2)     Before issuing the warrant, the judge must be satisfied

(a) by information on oath that there are reasonable grounds to believe

(i) that an offence under a tax Act is being, has been or will be committed, and

(ii) that information concerning the offence may be obtained through the use of the device or investigative technique or procedure described by the applicant for the warrant;

(b) that the use of the device or investigative technique or procedure is not otherwise authorized; and

(c) that it is in the best interests of the administration of justice to issue the warrant.

Interpretation

27.1(3)     Without limiting the generality of the expression "device or investigative technique or procedure" in subsections (1) and (2), it includes a tracking device, a number recorder, video surveillance, audio surveillance and covert entry.

Terms and conditions

27.1(4)     When issuing the warrant, the judge may impose any terms and conditions that he or she considers advisable to ensure that the search authorized by the warrant is reasonable.

Notice after covert entry

27.1(5)     If the warrant authorizes a person to enter and search a place covertly, it must specify a period after the execution of the warrant within which notice of the entry and search must be given.

Extension of deadline for notice

27.1(6)     Upon application for an extension of the deadline for providing notice of a covert entry and search, a judge may grant the extension if he or she is satisfied, on the basis of an affidavit in support of the application, that it would be in the interests of justice to grant it.  But the deadline cannot be extended to more than three years after the date of the entry.

Telewarrant

27.2        If a tax officer believes that it would be impracticable to appear personally before a justice to apply for a warrant under section 24 or 27 or before a judge to apply for a warrant under section 27.1, a warrant may be issued under that section on an information submitted by telephone or other means of telecommunication.  The procedure in section 487.1 of the Criminal Code (Canada) applies to the issuance of the warrant, with such changes to that section and to the form of warrant as are necessary.

68          The following is added after section 31.1:

Definitions

31.2(1)     The following definitions apply in this section.

"owner", in relation to a vehicle, means the person in whose name the vehicle is registered, as shown on the vehicle's registration card or insurance certificate, and includes the legal owner of the vehicle if

(a) the vehicle is registered in the name of a person who has the use of the vehicle under a lease or other agreement for a term of at least 30 days; and

(b) the name of the legal owner is shown on the vehicle's registration card or insurance certificate. (« propriétaire »)

"registration card" means a registration card as defined in The Drivers and Vehicles Act. (« carte d'immatriculation »)

"vehicle" includes a trailer seized under subsection (3). (« véhicule »)

"workday" means any day that does not fall on a weekend and is not a holiday. (« jour ouvrable »)

Operator to provide information

31.2(2)     If a tax officer finds unmarked tobacco in or on a vehicle or a trailer connected to a vehicle, the operator of the vehicle must produce for inspection by the officer, upon request,

(a) his or her driver's licence or any other proof of identity acceptable to the officer; and

(b) the vehicle's registration card or insurance certificate, or both.

Vehicle carrying unmarked tobacco may be seized and impounded

31.2(3)     A tax officer may seize and impound a vehicle if the officer finds more than five units of unmarked tobacco in or on the vehicle or a trailer connected to the vehicle.  If any of the tobacco is found in or on the trailer, the officer may seize both the trailer and the vehicle.

Delayed seizure and impoundment

31.2(4)     If the tax officer thinks that the immediate seizure of the vehicle would jeopardize the safety of, or cause undue hardship to, any person, the officer may order the operator of the vehicle to drive it to a specified location, where any tax officer may take custody of it.

Procedure on seizure

31.2(5)     When seizing the vehicle, the tax officer must

(a) complete a notice of seizure setting out

(i) the name and address of the operator of the vehicle,

(ii) the name and address of any owner who was not the operator, as shown on the vehicle's registration card or insurance certificate,

(iii) the year, make and vehicle identification number of the vehicle,

(iv) the date and time of the seizure, and

(v) a statement that the vehicle is being seized and impounded under this section, and is subject to impoundment for at least 30 days;

(b) immediately give a copy of the notice to the operator;

(c) unless the director has made other arrangements for the immediate custody of the vehicle, arrange for a garage keeper approved by the director to take custody of it; and

(d) within two workdays after the day the vehicle was seized, give a copy of the notice to the director.

Place of impoundment

31.2(6)     The seized vehicle must be stored at a place of impoundment in Manitoba that is

(a) specified by the director; or

(b) operated by the garage keeper who is given custody of the vehicle.

Period of impoundment

31.2(7)     The seized vehicle must be impounded for a period of

(a) 90 days, if

(i) the operator of the vehicle was the operator or an owner of a vehicle when it was previously seized under this section, or

(ii) an owner of the vehicle was

(A) the operator of a vehicle when it was previously seized under this section, or

(B) an owner of a vehicle while it was previously impounded under this section for at least 30 days; and

(b) 30 days, in any other case.

Personal property in vehicle

31.2(8)     Personal property present in the vehicle when the vehicle is seized may be retrieved by the person entitled to possess the property, unless it is

(a) attached to the vehicle or used in connection with its operation; or

(b) unmarked tobacco.

The request may be made to the tax officer at the time the vehicle is seized, or after that to the garage keeper who has custody of the vehicle during the period of impoundment. The garage keeper may charge a fee for retrieving the property or allowing it to be retrieved.

Notice of seizure and impoundment

31.2(9)     Within two workdays after receiving the notice of seizure from the tax officer, the director must

(a) prepare a notice of seizure and impoundment that sets out

(i) a description of the seized vehicle including, where applicable, the year and make of the vehicle and its vehicle identification number,

(ii) the name and address of the operator from whom the vehicle was seized,

(iii) the name and address of any owner who was not the operator, as shown on the vehicle's registration card or insurance certificate,

(iv) the name and address of the garage keeper who has custody of the vehicle, and the place of impoundment,

(v) the period of impoundment determined under subsection (7),

(vi) a description of the right to apply for the release of the vehicle and the application process, and

(vii) a description of the right to retrieve personal property from the vehicle; and

(b) serve a copy of the notice on

(i) the operator from whom the vehicle was seized,

(ii) any owner of the vehicle who was not the operator of it, and

(iii) the garage keeper who has custody of the vehicle.

Application for release to owner

31.2(10)    During the period of impoundment, an owner of the vehicle may apply to a justice for an order to release it. The application must be

(a) made in a form and manner acceptable to the Minister of Justice; and

(b) accompanied by a payment of $100 as an application fee.

Director to be served

31.2(11)    The applicant under subsection (10) must serve a copy of the application on the director.

Hearing by justice

31.2(12)    At the hearing of an application made under subsection (10), the justice must consider

(a) documentary evidence of ownership of the vehicle;

(b) a report of a tax officer respecting the seizure of the vehicle; and

(c) if the director determined that the period of impoundment is 90 days, a report of the director setting out the information on the basis of which that determination was made.

Order for release to owner

31.2(13)    The justice must order the release of the vehicle, subject to the payment of any lien under this section, if he or she is satisfied

(a) that the applicant is an owner of the vehicle who, immediately before the vehicle was seized,

(i) was not the operator of the vehicle and did not otherwise have care or control of the vehicle, and

(ii) did not know, and could not reasonably be expected to have known, that the vehicle was carrying unmarked tobacco; or

(b) in the case of an application during a 90-day period of impoundment, that the period of impoundment should be 30 days, in which case the order does not take effect until the end of the 30-day period.

Garage keeper's lien

31.2(14)    The garage keeper in whose custody the vehicle is impounded has a lien against the vehicle for the following amounts, and may enforce the lien in accordance with The Garage Keepers Act:

(a) the garage keeper's costs and charges, as prescribed under The Highway Traffic Act in relation to a seizure and impoundment under section 242.1 of that Act;

(b) expenditures for searches, registrations and other charges under The Personal Property Security Act that are reasonably incurred by the garage keeper to comply with The Garage Keepers Act.

Effect of lien

31.2(15)    Despite the expiry of the impoundment period and any order under subsection (13) for the release of the vehicle, the vehicle must remain impounded until the amount of the lien is paid or the vehicle is disposed of in accordance with The Garage Keepers Act or this section.

Disposal of impounded vehicle by garage keeper

31.2(16)    After the end of the period of impoundment, the garage keeper may, with the director's approval, dispose of the vehicle by sale or otherwise after delivering to the director

(a) the number plates from the vehicle;

(b) a statutory declaration of the garage keeper declaring that the amount of his or her lien on the vehicle exceeds his or her estimate of its value; and

(c) a certificate issued under The Personal Property Security Act showing that the vehicle is not identified as an item of collateral in the Personal Property Registry.

Transfer to garage keeper

31.2(17)    To facilitate a disposal approved under subsection (16), the director must

(a) complete a transfer of vehicle ownership, in a form approved by the minister, from the owner of the vehicle to the garage keeper; and

(b) deliver the completed form and the vehicle's number plates, to the registrar under The Drivers and Vehicles Act.

Cancellation of previous owner's registration

31.2(18)    Upon receiving the form and the number plates from the director, the registrar must cancel the vehicle's registration and forward any refund to the director.  The director must apply the refund to any costs and charges owing to the Minister of Finance in respect of the vehicle, and pay the balance, if any, to the vehicle's previous owner.

Owner's right against operator

31.2(19)    An owner of the vehicle may recover, from the person who was its operator when it was seized, the direct costs incurred by the owner in relation to the seizure and impoundment.

Minister's response to wrongful seizure

31.2(20)    If the minister is satisfied that the vehicle was wrongfully seized and impounded under this section, the minister may

(a) if the vehicle remains impounded, pay the amount required to discharge the garage keeper's lien and direct the vehicle to be released from impoundment; or

(b) if the vehicle is no longer impounded, despite The Financial Administration Act, indemnify an owner of the vehicle for any direct cost paid by the owner in relation to the seizure and impoundment.

69          The following is added after subsection 36(1):

Exception — more than five units seized

36(1.1)     If more than five units of unmarked tobacco are seized from a person, none of the tobacco shall be released to the person.

70          The following is added after section 36:

Damage to seized or impounded property

36.1        If a person's property is damaged, destroyed or stolen when it is seized or while it is impounded under this Act, the person has no claim or right of action against the government except for any loss to the person arising out of the negligence of the government or its agents or employees.

71          The following is added after section 46:

Correction of minor deficiency

46.1(1)     The director may at any time issue a revised notice of assessment or reassessment to correct an irregularity, omission or technical error that does not affect the amount assessed or reassessed.

No effect on right of appeal

46.1(2)     The revised notice of assessment or reassessment

(a) does not constitute a new assessment or reassessment; and

(b) does not entitle the taxpayer to any additional time to appeal the original assessment or reassessment unless the taxpayer establishes that, because of the deficiency, he or she did not receive the original notice of assessment or reassessment.

72          The following is added after subsection 56(2):

Limitation on appeal of reassessment

56(3)       If a matter or period that is the subject of a reassessment is also the subject of an earlier assessment or reassessment for which the 90-day appeal period has expired, any appeal of the later reassessment must be limited to the difference between

(a) the amount assessed or reassessed in respect of that matter or period in the earlier notice of assessment or reassessment; and

(b) the amount subsequently reassessed in respect of that matter or period.

73          Subsection 75(5) is amended by adding the following after clause (b):

and, if the information to be provided or the reports or information returns to be filed disclose an amount of tax that has not been paid or remitted as required, to pay or remit that amount and any penalties and interest that the person failed to remit.

74          Subsection 78(5) is repealed.

75(1)       Clauses 80(4)(a) and (b) are replaced with the following:

(a) in the case of an individual,

(i) for a first offence, a fine of at least $1,000 and not more than $10,000, imprisonment for up to six months, or both,

(ii) for a second offence, a fine of at least $10,000 and not more than $50,000, imprisonment for up to one year, or both, and

(iii) for a third or subsequent offence, a fine of at least $50,000 and not more than $100,000, imprisonment for up to two years, or both;

(b) in the case of a corporation,

(i) for a first offence, a fine of at least $2,000 and not more than $20,000,

(ii) for a second offence, a fine of at least $20,000 and not more than $100,000, and

(iii) for a third or subsequent offence, a fine of at least $100,000 and not more than $250,000.

75(2)       Clauses 80(5)(a) and (b) are replaced with the following:

(a) in the case of a first offence, three times the tax that would be payable under The Tobacco Tax Act on a purchase of that quantity of tobacco by a purchaser;

(b) in the case of a second offence, four times the tax that would be payable under The Tobacco Tax Act on a purchase of that quantity of tobacco by a purchaser; or

(c) in the case of a third or subsequent offence, five times the tax that would be payable under The Tobacco Tax Act on a purchase of that quantity of tobacco by a purchaser.

76          The following is added after section 80:

Definitions

80.1(1)     In this section, "owner", "vehicle" and "workday" have the same meaning as in section 31.2.

Vehicle liable to forfeiture

80.1(2)     A vehicle that was seized under section 31.2 is liable to be forfeited to the government if

(a) a person is charged with an offence under subsection 80(2) in relation to possession of the unmarked tobacco the presence of which resulted in the vehicle being seized; and

(b) the person (referred to in this section as the "alleged offender") has at least two prior convictions under subsection 80(2) that arise from separate incidents and involve the possession, sale or offer for sale of unmarked tobacco.

Director to register financing statement

80.1(3)     If the director believes on reasonable grounds that a vehicle is liable to forfeiture under this section, the director must register a financing statement in the Personal Property Registry, in the form and manner prescribed under The Personal Property Security Act, stating that the vehicle is liable to forfeiture.

Notice of liability to forfeiture

80.1(4)     Within two workdays after registering the financing statement, the director must prepare a notice of the vehicle's liability to forfeiture and of the registration of the financing statement, and must serve a copy of the notice on

(a) the alleged offender;

(b) each owner of the vehicle who is not the alleged offender; and

(c) each person who holds a security interest in the vehicle that was registered under The Personal Property Security Act before the director registered the financing statement.

Lack of notice does not affect forfeiture

80.1(5)     The vehicle's liability to forfeiture is not affected by a failure to serve the notice under subsection (4) on the alleged offender.

Restrictions affecting owner

80.1(6)     An owner of the vehicle must not dispose of it, or grant a security interest in it,

(a) after the vehicle is seized under section 31.2, if the owner is the alleged offender; or

(b) after being served with a copy of the notice of the liability to forfeiture, if the owner is not the alleged offender.

Additional restrictions

80.1(7)     After the financing statement is registered in respect of the vehicle, no person shall do anything, alone or in concert with any other person,

(a) to prevent the vehicle from being forfeited; or

(b) to reduce the value of the vehicle more than it would be reduced in the normal course of being operated.

Insurance proceeds

80.1(8)     If insurance proceeds are payable to any person in respect of damage to the vehicle that occurred after the financing statement was registered, the insurer must pay the proceeds as follows:

(a) to the repairer for repairing the damage to the vehicle; or

(b) to the Minister of Finance, if the vehicle is written off or the proceeds will not be used to pay a repairer for repairing the damage to the vehicle.

Insurance proceeds paid to Minister of Finance

80.1(9)     The Minister of Finance must hold the insurance proceeds paid under clause (8)(b) in trust while the vehicle remains liable to forfeiture, and

(a) if the vehicle is forfeited, must

(i) pay the proceeds, in order of priority, to secured creditors whose security interests were registered before the financing statement was registered under subsection (3), and

(ii) transfer the balance to the general account of the Consolidated Fund; and

(b) if the vehicle is no longer liable to forfeiture, must pay the proceeds

(i) to the vehicle's owner, or

(ii) into the Court of Queen's Bench, if there is a dispute as to who is entitled to them.

Owner may apply for release of vehicle

80.1(10)    An owner of the vehicle may apply to a justice for an order releasing the vehicle from its liability to forfeiture. The application must be

(a) made in a form and manner acceptable to the Minister of Justice; and

(b) accompanied by payment of $100 as an application fee.

Director to be served

80.1(11)    The applicant under subsection (10) must serve a copy of the application on the director.

Justice may consider any relevant evidence

80.1(12)    The justice hearing the application may consider any evidence or information that he or she considers relevant.

Order for release from liability to forfeiture

80.1(13)    The justice hearing the application may order the vehicle to be released from liability to forfeiture if he or she is satisfied that the applicant is an owner of the vehicle who, immediately before the vehicle was seized under section 31.2,

(a) was not the operator of the vehicle and did not otherwise have care or control of the vehicle; and

(b) did not know, and could not reasonably be expected to have known, that the vehicle was carrying unmarked tobacco.

Owner's right against alleged offender

80.1(14)    The owner making an application under subsection (10) may recover, from the alleged offender, the direct costs incurred by the owner in relation to the application.

Vehicle no longer liable to forfeiture

80.1(15)    The vehicle ceases to be liable to forfeiture, and the director must register a discharge of the financing statement registered under subsection (3) in respect of the vehicle, if

(a) a justice has ordered the vehicle to be released from liability to forfeiture;

(b) the charge referred to in clause (2)(a) is stayed; or

(c) the alleged offender is acquitted of the charge referred to in clause (2)(a) and

(i) the Crown does not appeal the acquittal within the applicable appeal period,

(ii) the Crown abandons its appeal of the acquittal, or

(iii) the final court of appeal upholds the acquittal or dismisses the Crown's application for leave to appeal.

Timing of forfeiture

80.1(16)    A vehicle that is liable to forfeiture is forfeited, subject to any security interest that was registered before the financing statement was registered under subsection (3), when the following conditions are satisfied:

(a) the charge referred to in clause (2)(a) has resulted in a conviction, and the conviction is final;

(b) at least two of the prior convictions referred to in clause (2)(b) are final.

Notice of forfeiture

80.1(17)    When the vehicle is forfeited, the director must serve a notice of the forfeiture on each of its owners.

Content of notice

80.1(18)    The notice of forfeiture must direct the owner to relinquish the vehicle at a place specified in the notice and to do so on or before the date specified in the notice, which must not be earlier than seven days after the notice is sent.

Owner must relinquish vehicle

80.1(19)    The owner must relinquish the vehicle as directed by the notice of forfeiture.

Seizure of vehicle

80.1(20)    If the owner fails to relinquish the vehicle as directed,

(a) a person authorized by the director may

(i) without notice or legal process, take possession of the vehicle from any person on behalf of the Crown, and

(ii) for this purpose, enter upon any land where the vehicle is located, and do any thing he or she considers necessary to take possession of it; and

(b) the cost of the seizure is a debt due to the government by the owner, and may be recovered as a tax debt under this Act.

Owner liable for value of vehicle

80.1(21)    If the owner fails to relinquish the vehicle as directed and it has not been seized under subsection (20), an amount equal to the average wholesale price of such a vehicle as at the date that the vehicle became liable to forfeiture, as determined by the director in a manner authorized by the minister, is a debt due to the government by the owner, and may be recovered as a tax debt under this Act.

Owner liable for reduction in value and appraisal cost

80.1(22)    If the value of the vehicle has been reduced as a result of anything done in contravention of subsection (7), an amount equal to the total of

(a) the reduction in value; and

(b) the director's cost of any appraisal report obtained under subsection (24);

is a debt due to the government by the owner, and may be recovered as a tax debt under this Act.

Exception

80.1(23)    Subsection (22) does not apply to a reduction in value that is attributable to damage in respect of which insurance proceeds are paid in accordance with subsection (8).

Determination of reduction in value

80.1(24)    For the purpose of subsection (22), the reduction in value of the vehicle as a result of anything done in contravention of subsection (7) is the amount by which

(a) the average wholesale price of such a vehicle at the time of the forfeiture, as determined by the director in a manner authorized by the minister;

exceeds

(b) the appraised value of the vehicle at the time of the forfeiture, as set out in a motor vehicle appraisal report in approved form and certified by

(i) a motor vehicle dealer with an RST number and a valid dealer permit issued under section 96 of The Drivers and Vehicles Act, or

(ii) an employee of an appraisal firm who is qualified to appraise motor vehicles.

77          Subsection 85(1) is amended by adding the following after clause (c):

(c.1) respecting tax authorizations, including regulations

(i) respecting applications for tax authorizations,

(ii) establishing terms, conditions or restrictions applicable to tax authorizations or holders of tax authorizations, or

(iii) prescribing information to be included in tax authorizations,

any or all of which may be different for different types of tax authorizations;

PART 12

TAX-FREE SAVINGS ACCOUNTS

C.C.S.M. c. F25 amended

78          Clauses 35(1)(c) and 37(c) of The Family Property Act are amended by adding "TFSA (tax-free savings account) as defined in the Income Tax Act (Canada)," before "retirement savings plan".

C.C.S.M. c. R138 amended

79(1)       The Retirement Plan Beneficiaries Act is amended by this section.

79(2)       The title is replaced with "THE BENEFICIARY DESIGNATION ACT (RETIREMENT, SAVINGS AND OTHER PLANS)".

79(3)       Clause (c) of the definition "plan" in section 1 is amended by adding "TFSA (tax-free savings account)," before "retirement savings plan".

79(4)       Section 19 is amended by striking out "R138" and substituting "B30".

PART 13

THE TOBACCO TAX ACT

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

80          The Tobacco Tax Act is amended by this Part.

81          Subsection 2(1) is amended

(a) in clause (a), by striking out "17.5¢" and substituting "18.5¢";

(b) in clause (c), by striking out "15¢" and substituting "16¢"; and

(c) in clause (d), by striking out "16.5¢" and substituting "17.5¢".

82          Section 3.2 is replaced with the following:

Sale of unmarked tobacco products

3.2         No person shall sell or offer to sell cigarettes or fine cut tobacco unless it is in packaging that is marked or stamped for the tax purposes of Manitoba.

83(1)       Subsection 4(1.1) is replaced with the following:

Retail dealer's licence restrictions

4(1.1)      A retail dealer's licence authorizes the sale of tobacco to purchasers only within

(a) a retail store with a storefront; or

(b) other premises authorized by the director;

at the location specified in the licence.

83(2)       Subsection 4(3) is replaced with the following:

Identification required on vending machines

4(3)        No person shall sell or offer to sell tobacco by the use of a vending machine unless the machine is visibly identified with

(a) a label indicating the person's name, business address and retail dealer's tobacco licence number; or

(b) another form of identification approved by the director for this purpose.

83(3)       Subsection 4(6) is repealed.

84          Clause 4.3(a) is amended by striking out "in Manitoba".

85          Section 5 is repealed.

86          Subsection 10(6) is amended by striking out "Subject to subsection (7), a deputy" and substituting "A deputy".

87          Section 12 is repealed.

88          Clauses 28(1)(c), (e), (f), (g) and (i) are repealed.

PART 14

THE WASTE REDUCTION AND PREVENTION ACT

C.C.S.M. c. W40 amended

89          The Waste Reduction and Prevention Act is amended by this Part.

90          Clause 1(2)(a) is amended by adding "operators of waste disposal grounds," after "government,".

91          Section 2 is amended

(a) in the definition "waste", by adding ", subject to the regulations," after "means"; and

(b) by adding the following definition:

"WRARS levy" means a waste reduction and recycling support levy under section 14.1. (« cotisation ARVRD »)

92          The following is added after section 14:

WRARS levy

14.1(1)     Subject to subsection (3), the operator of a Class 1, Class 2 or Class 3 waste disposal ground must pay to the Minister of Finance, for each of the following periods each year:

(a) January 1 to June 30;

(b) July 1 to December 31;

a waste reduction and recycling support levy determined in accordance with subsection (2) for that period.

Amount of levy

14.1(2)     The amount of the levy for any six-month period is

(a) the amount determined for that period in accordance with the applicable formula or tariff prescribed by regulation; or

(b) if there is no applicable prescribed formula or tariff, an amount equal to $10 times the number of tonnes of waste received — or estimated in accordance with the regulations to have been received — by the waste disposal ground during that period.

Due date

14.1(3)     The levy payable under subsection (1) must be paid on or before the last day of the first month after the end of the period for which it is payable.

Commencement dates

14.1(4)     The first six-month period for which a levy is payable under subsection (1) is

(a) in the case of a Class 1 waste disposal ground that received more than 30,000 tonnes of waste in 2008, the period from July 1 to December 31, 2009;

(b) in the case of any other Class 1 waste disposal ground, the period from January 1 to June 30, 2010; and

(c) in the case of a Class 2 or Class 3 waste disposal ground, the period from January 1 to June 30, 2011, or any later period prescribed by regulation for that Class.

Class of waste disposal ground

14.1(5)     For the purposes of this section and any regulations made for the purposes of this section, a Class 1, Class 2 or Class 3 waste disposal ground is a waste disposal ground of that class as determined by regulation under The Environment Act.

WRARS fund

14.2(1)     A fund to be known as the "Waste Reduction and Recycling Support Fund" is hereby established, as a separate fund within the Consolidated Fund, for the following purposes:

(a) providing support or incentives to municipalities and local government districts for recycling;

(b) supporting recycling programs and improvements to waste management, including management of electronic waste and household hazardous waste.

Payments to fund

14.2(2)     The following amounts are to be paid or credited to the fund:

(a) all amounts paid to the government on account of the WRARS levy;

(b) any amounts authorized by an Act of the Legislature to be so paid and applied;

(c) interest and other income earned on the amounts paid or credited to the fund.

Payments from fund

14.2(3)     The minister may requisition payments from the fund

(a) for the purposes of the fund; and

(b) to pay administrative expenses of operating the fund.

The Minister of Finance must make payments from the fund according to those requisitions.

Annual report

14.2(4)     For each fiscal year, the annual report of the department over which the minister presides must include a report of the accounts and transactions of the fund.

93          Subsection 22(1) is amended

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

(b.1) extending or limiting the meaning of "waste" for one or more purposes of this Act, even if it results in the term having different meanings under different provisions of this Act;

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

(j.1) respecting the WRARS levy, including regulations

(i) exempting waste disposal grounds from the levy,

(ii) for the purpose of clause 14.1(2)(a), prescribing one or more formulas or tariffs for determining the amount of the levy, which may be different for different types of waste or classes of waste disposal grounds,

(iii) for the purpose of clause 14.1(2)(b), prescribing a formula or method for estimating the amount of waste received by a waste disposal ground,

(iv) for the purpose of clause 14.1(4)(c), prescribing

(A) the first period for which the levy applies to a Class 2 waste disposal ground, or

(B) the first period for which the levy applies to a Class 3 waste disposal ground,

(v) respecting the provision of information, reports and returns in respect of waste received by a waste disposal ground;

PART 15

COMING INTO FORCE

Coming into force

94(1)       Except as otherwise provided in this section, this Act comes into force on the day it receives royal assent.

Part 2: The Corporation Capital Tax Act

94(2)       Section 6 is deemed to have come into force on July 1, 2008.

Part 3: The Gasoline Tax Act

94(3)       The following provisions come into force on July 1, 2009:

(a) sections 8 and 9;

(b) subsection 10(2);

(c) section 11.

94(4)       Subsection 10(1) is deemed to have come into force on May 1, 2009.

Part 4: The Income Tax Act

94(5)       The following provisions are deemed to have come into force on January 1, 2009:

(a) sections 17, 20 to 22 and 24;

(b) subsections 29(1) and 30(1),(3), (4) and (5);

(c) sections 31, 33 and 34.

94(6)       Section 28 is deemed to have come into force on April 10, 2008.

94(7)       Section 35 is deemed to have come into force on January 1, 2008.

Part 6: The Mining Tax Act

94(8)       Section 38 comes into force on July 1, 2009, but applies only to an operator's fiscal year ending on or after that day.

Part 7: The Motive Fuel Tax Act

94(9)       The following provisions come into force on July 1, 2009:

(a) sections 41 and 42;

(b) subsection 43(2);

(c) section 44.

94(10)      Subsection 43(1) is deemed to have come into force on May 1, 2009.

94(11)      Section 48 is deemed to have come into force on June 5, 2008.

Part 8: The Municipal Assessment Act

94(12)      Section 49 is deemed to have come into force on October 1, 2008.

Part 12: Tax-free savings accounts

94(13)      In relation to a death occurring on or after the day this Act receives royal assent, subsection 79(3) is deemed to have come into force on June 18, 2008.

Part 13: The Tobacco Tax Act

94(14)      Section 81 is deemed to have come into force on March 26, 2009.