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The Budget Implementation and Tax Statutes Amendment Act, 2010

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S.M. 2010, c. 29

Bill 31, 4th Session, 39th Legislature

The Budget Implementation and Tax Statutes Amendment Act, 2010

(Assented to June 17, 2010)

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

PART 1

FISCAL MANAGEMENT

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1(2)        Subsection 13(2.1) is repealed.

1(3)        The following is added after Part 4:

PART 4.1

FISCAL MANAGEMENT DURING MANITOBA'S FIVE-YEAR ECONOMIC PLAN (BUDGET 2010)

Application of Part

16.1        This Part applies despite any other provision of this Act.

Definitions

16.2        The following definitions apply in this Part.

"economic recovery period" means the period beginning April 1, 2010 and ending

(a) March 31, 2014; or

(b) March 31 immediately preceding the first fiscal year after 2010 for which the net result (for the purpose of determining balance under section 3) is positive;

whichever is earlier. (« période de relance économique »)

"fiscal year" means the period beginning on April 1 of one year and ending on March 31 of the following year. (« exercice »)

"general purpose debt" has the same meaning as in Part 3. (« dette générale »)

Application of balanced budget requirements during economic recovery period

16.3(1)     Subsection 2(1) and sections 4 to 7 do not apply to any fiscal year within the economic recovery period.

Application of balanced budget requirements after economic recovery period

16.3(2)     For the purpose of applying subsection 2(1) and sections 4 to 7 after the end of the economic recovery period, the net result for each fiscal year before the end of that period is deemed to be nil.

Debt repayment

16.4(1)     Subsection 13(2) does not apply to any fiscal year within the economic recovery period.

Amortization of general purpose debt increases

16.4(2)     During the economic recovery period, at least $600,000,000 of the balance in the fiscal stabilization account under The Financial Administration Act must be applied to the amortization of increases in the general purpose debt, including related interest expenses, attributable to negative net results for fiscal years within that period.

Members' Salaries Regulation amended

2(1)        The Members' Salaries Regulation made under The Legislative Assembly Act is amended by this section.

2(2)        The following is added after subsection 1(2.1):

20% reduction in additional salary for ministers

1(2.2)      For the pay periods ending within the economic recovery period, as defined in section 16.2 of The Balanced Budget, Fiscal Management and Taxpayer Accountability Act, the salary for each of the following positions is reduced to 80% of the salary for the position for the last pay period ending before April 1, 2010:

(a) Premier;

(b) Minister with portfolio;

(c) Minister without portfolio.

Salaries restored to 100% on early economic recovery

1(2.3)      If the third-quarter report under section 5 of The Balanced Budget, Fiscal Management and Taxpayer Accountability Act for a fiscal year ending before April 1, 2014, projects a positive net result as at the end of that fiscal year, the salaries for that fiscal year that were reduced under subsection (2.2) may be calculated and paid without reference to that subsection, but the resulting salary increases for that fiscal year must be repaid if the actual balance for that fiscal year is negative.

2(3)        The following is added after subsection 1.1(3):

No adjustments for 2010-11 and 2011-12

1.1(4)      No cost-of-living adjustment is to be made to a member's basic salary under subsection 1(1) or a member's additional salary under subsection 1(2) for the 2010-11 fiscal year or the 2011-12 fiscal year.

PART 2

THE CORPORATION CAPITAL TAX ACT

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

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

4           Subsection 6(1.1) is amended

(a) by striking out the description of B in the formula; and

(b) replacing the formula with the following:

Tax payable = T × A/365

5           The following is added after subsection 7(1):

Limitation

7(1.1)      Subsection (1) does not apply to the fiscal year of a corporation to which subsection 6(1.1) or 13.1(2) applies.

6(1)        Clause 8(1)(a) is replaced with the following:

(a) its paid up capital stock as at the close of the fiscal year, including

(i) any premiums received on the issue of its shares, and

(ii) for greater certainty, any preferred share liability,

but not including any discount allowed in accordance with the law on the issue of the shares;

6(2)        Clauses 8(4)(a) and (5)(a) are replaced with the following:

(a) its paid up capital stock, including

(i) any premiums received on the issue of its shares, and

(ii) for greater certainty, any preferred share liability,

but not including any discount allowed in accordance with the law on the issue of shares;

7           In subsection 13.1(2), the description of B in the formula is replaced with the following:

B

is

(a) 366, if the fiscal year began before March 1, 2008, or

(b) 365, if the fiscal year began on or after that day.

PART 3

TAX ON PROFITS OF CREDIT UNIONS AND CAISSES POPULAIRES

Tax on profits of credit unions and caisses populaires

8           The Credit Unions and Caisses Populaires Profits Tax Act set out in Schedule A is hereby enacted.

PART 4

FUEL TAXES

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

9(1)        The Gasoline Tax Act is amended by this section.

9(2)        The definition "gasoline" in section 1 is amended by replacing the part after clause (c) with the following:

unless it is delivered

(d) from a filling station directly into a tank or refillable container provided by the purchaser, or

(e) by means of a tank or refillable container

(i) provided to the purchaser in exchange for a similar tank or refillable container provided by the purchaser, or

(ii) that the purchaser can later provide to a dealer for a refill or in exchange for a similar tank or container filled with fuel;

9(3)        The definition "international cargo flight" in section 1 is replaced with the following:

"international cargo flight" means a commercial cargo flight carrying cargo that is

(a) loaded onto the aircraft at an airport outside Canada and unloaded from the aircraft at an airport in Manitoba, or

(b) loaded onto the aircraft at an airport in Manitoba and unloaded from the aircraft at an airport outside Canada; (« vol international de transport de marchandises »)

9(4)        Subsection 15(4) of the French version is amended by striking out "perdu" and substituting "perdue".

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

10          The definition "international cargo flight" in section 1 of The Motive Fuel Tax Act is replaced with the following:

"international cargo flight" means a commercial cargo flight carrying cargo that is

(a) loaded onto the aircraft at an airport outside Canada and unloaded from the aircraft at an airport in Manitoba, or

(b) loaded onto the aircraft at an airport in Manitoba and unloaded from the aircraft at an airport outside Canada; (« vol international de transport de marchandises »)

Fuel Tax Act enacted

11          The Fuel Tax Act set out in Schedule B is hereby enacted.

PART 5

THE INCOME TAX ACT

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

12          The Income Tax Act is amended by this Part.

13          Subsections 4.6(10.2) to (10.4) are replaced with the following:

Fitness tax credit

4.6(10.2)   For a taxation year ending after 2010, an individual who is resident in Manitoba at the end of the taxation year and is less than 25 years old at that time may claim the lesser of

(a) $500.; and

(b) the amount determined by the following formula:

A − B

In this formula,

A

is the total of all amounts each of which is an eligible fitness expense that was paid in the taxation year in respect of the individual by

(i) that individual or his or her spouse or common-law partner, if that individual was at least 18 years old at the end of the taxation year, or

(ii) that individual or a parent of the individual, or the spouse or common-law partner of a parent of the individual, if the individual was less than 18 years old at the end of the taxation year;

B

is the total of all amounts each of which is an amount

(i) that relates to an expense included in A in respect of the individual for the year, and

(ii) that any person is or was entitled to receive as a reimbursement, allowance or other form of assistance,

other than an amount that is included in computing the income for any taxation year of that person and is not deductible in computing the taxable income of that person.

"Eligible fitness expense" defined

4.6(10.3)   For the purpose of subsection (10.2), "eligible fitness expense", in relation to an individual, means the amount of a fee that

(a) is an eligible fitness expense as defined in subsection 118.03(1) of the federal Act; or

(b) in the case of an individual who is not a qualifying child as defined in subsection 118.03(1) of the federal Act, would be an eligible fitness expense as defined in that subsection 118.03(1) if the following rules were applied:

(i) in the definition "eligible fitness expense", "in respect of a qualifying child of an individual" is to be read as "in respect of an individual" and "membership of the qualifying child" is to be read as "membership of the individual",

(ii) the definition "physical activity" in subsection 9400(1) of the federal regulations is to be read as follows:

"physical activity" means a supervised activity suitable for children or young adults (other than an activity where a child or young adult rides on or in a motorized vehicle as an essential component of that activity) that

(a) in the case of an individual in respect of whom an amount is deductible under section 118.3 of the Act in computing any person's income for the taxation year, results in movement and in an observable expenditure of energy in a recreational context; and

(b) in the case of any other individual, contributes to cardio-respiratory endurance and to one or more of the following:

(i) muscular strength,

(ii) muscular endurance,

(iii) flexibility,

(iv) balance.

(iii) in subsections 9400(2), (3) and (4) of the federal regulations, each instance of "offered to children" is to be read as "offered to children or young adults".

Additional fitness tax credit for individual with disability

4.6(10.4)   An individual who is entitled to claim amounts under subsections (10.2) and (11) for a taxation year may claim the additional amount of $500. for that year if the amount determined under subsection (10.2) is at least $100.

Fitness tax credit claimable by spouse or common-law partner

4.6(10.5)   A person who at the end of the taxation year is resident in Manitoba and is the spouse or common-law partner of an individual who is at least 18 years old at the end of the year may claim

(a) the amount claimable by the individual for the taxation year under subsection (10.2), if it is not claimed by the individual; and

(b) the amount claimable by the individual for the taxation year under subsection (10.4), if it is not claimed by the individual.

Fitness tax credit claimable by parent or parent's spouse or common-law partner

4.6(10.6)   A person who at the end of the taxation year is resident in Manitoba and is a parent of — or the spouse or common-law partner of a parent of — an individual who is less than 18 years old at the end of the year may claim

(a) the amount claimable by the individual for the taxation year under subsection (10.2), if it is not claimed by the individual or any other person; and

(b) the amount claimable by the individual for the taxation year under subsection (10.4), if it is not claimed by the individual or any other person.

14          Subclause 4.7(1)(b)(ii) is replaced with the following:

(ii) 11% of the total of the amounts included in the individual's income for the year under paragraph 82(1)(a.1) (eligible dividends) and subparagraph 82(1)(b)(ii) (eligible dividends gross-up) of the federal Act.

15          Subsection 4.9.1(1) is amended by replacing clauses (d) and (e) with the following:

(d) the amount, if any, by which 60% of the individual's eligible tuition amount at the end of the taxation year exceeds the total of

(i) all amounts each of which is the tuition fee tax credit that was deducted in computing the individual's tax payable for one of the preceding 19 taxation years, and

(ii) all amounts each of which is the advance tuition fee tax credit claimed by the individual under section 5 for a preceding taxation year;

(e) $25,000. minus the total of

(i) all amounts each of which is the tuition fee tax credit that was deducted under this section in computing the individual's tax payable for a preceding taxation year, and

(ii) all amounts each of which is the advance tuition fee tax credit claimed by the individual under section 5 for a preceding taxation year.

16(1)       The following is added after clause 5(1)(e):

(f) the individual's advance tuition fee tax credit, if any, determined under section 5.12;

(g) the individual's fertility treatment tax credit, if any, determined under section 5.13.

16(2)       Subsection 5(4) is replaced with the following:

No credit if return not filed

5(4)        No amount may be claimed under this section for an individual's taxation year unless

(a) the amount is claimed in the individual's return for the year; and

(b) the return for the year is filed, under section 150 of the federal Act as it applies for the purposes of this Act, within three years after the end of that year.

Exception

5(5)        Despite subsection (4), an individual may claim an amount under this section within 10 years after the end of the taxation year if

(a) a reassessment or redetermination in respect of the taxation year was made under subsection 152(4.2), 220(3.1) or 220(3.4) of the federal Act, as it applies for the purposes of this Act, after the end of the three-year period referred to in subsection (4); and

(b) the reassessment or redetermination affected the amount claimable under this section.

17          Clause 5.7(3)(a) is amended

(a) by striking out "4.10(3)" and substituting "4.6(16.2)"; and

(b) by striking out "4.10(1) or (2)" wherever it occurs and substituting "4.6(16.1)".

18          The following is added after section 5.11:

Advance Tuition Fee Income Tax Rebate

Advance tuition fee income tax rebate

5.12        For the 2010 and subsequent taxation years, an individual's advance tuition fee tax credit for a taxation year is

(a) nil, if the individual claims an amount under section 4.9.1 (graduate's tuition fee income tax rebate) for the taxation year; or

(b) the least of the following amounts:

(i) $500. (except for the 2010 taxation year, in which case the amount is $250.),

(ii) 5% of the amount that

(A) was paid in relation to a school term that ended after November 2010, and

(B) is eligible for a tuition credit under subsection 118.5(1) of the federal Act in computing the individual's tax payable for the taxation year,

(iii) $5,000. minus the total of all amounts each of which is the amount claimed as an advance tuition fee tax credit under section 5 for a preceding taxation year.

Fertility Treatment Tax Credit

Fertility treatment tax credit

5.13        For a taxation year ending after 2009, an individual's fertility treatment tax credit is the lesser of the following amounts:

(a) $8,000.;

(b) 40% of the total of all amounts each of which is a medical expense of the individual as determined under subsection 118.2(2) of the federal Act that was incurred after September 2010, and was paid in the taxation year for

(i) infertility treatment services provided in Manitoba by a clinic accredited by the Assisted Human Reproduction Agency of Canada established under the Assisted Human Reproduction Act (Canada), or

(ii) medication prescribed in relation to the services referred to in subclause (i).

19(1)       The definition "research and development tax credit" in subsection 7.3(1) is amended

(a) in the part between clauses (d) and (e) of the English version, by adding "the total of" after "exceeds";

(b) by adding the following after clause (d) and before "exceeds":

(d.1) the total of all amounts each of which is an amount that would be an amount determined under paragraph (e.1) or (e.2) of the definition "investment tax credit" in subsection 127(9) of the federal Act in relation to an eligible expenditure if the specified percentage referred to in that paragraph were

(i) 15%, if it relates to an expenditure made before March 9, 2005, or

(ii) 20%, if it relates to an expenditure made after March 8, 2005,

(c) in clause (e) of the English version, by striking out "the aggregate of"; and

(d) by adding "and" at the end of clause (e) and adding the following after clause (e):

(f) all amounts each of which is an amount that is deemed by subsection (2.3) to have been paid on account of the corporation's tax payable for a preceding taxation year and is in respect of an eligible expenditure of the corporation that is included under clause (b.1) or (d).

19(2)       The following is added after subsection 7.3(2.2):

Refundable credit

7.3(2.3)    A corporation is deemed to have paid on its balance-due day for a taxation year 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 research and development 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) the total of the following amounts:

(i) 20% of the total of the corporation's eligible expenditures incurred after 2009 and in the taxation year under a research and development contract with a university, college or other post-secondary educational institution in Manitoba or with a person approved for this purpose by the Minister of Innovation, Energy and Mines,

(ii) 5% of the total of the corporation's eligible expenditures incurred in 2011 and in the taxation year that are not included in computing the amount computed under subclause (i), and

(iii) 10% of the total of the corporation's eligible expenditures incurred after 2011 and in the taxation year that are not included in computing the amount computed under subclause (i).

20          Sections 7.5 to 7.12 are replaced with the following:

FILM AND VIDEO PRODUCTION TAX CREDIT

Definitions and Interpretation

Definitions

7.5(1)      The following definitions apply in this section and sections 7.6 to 7.9.

"certifying authority" means Manitoba Film and Sound Recording Development Corporation. (« autorité chargée de la délivrance des certificats »)

"cost-of-production credit", in relation to an eligible film for a taxation year, is the amount determined for that film for that year under subsection 7.6(6). (« crédit pour les coûts de production »)

"cost-of-salaries credit", in relation to an eligible film for a taxation year, means the amount determined for that film for that year under subsection 7.6(2). (« crédit pour les coûts des traitements »)

"eligible corporation", in relation to an eligible film, means a corporation that

(a) is a taxable Canadian corporation incorporated under the laws of Canada or of a province of Canada;

(b) has a permanent establishment in Manitoba;

(c) is producing an eligible film in the course of a film or video production business that is its primary business; and

(d) pays at least 25% of its salaries and wages

(i) to eligible employees and employees who are eligible non-resident individuals in relation to the eligible film for which the tax credit is claimed, and

(ii) except in the case of a documentary, for work performed in Manitoba on an eligible film. (« corporation admissible »)

"eligible employee", in relation to a taxation year of a corporation for which the corporation is claiming a tax credit, means an employee who was resident in Manitoba on December 31 of the taxation year or of the immediately preceding taxation year. (« employé admissible »)

"eligible film" means a film or video that is registered as an eligible film under subsection 7.7(1). (« film admissible »)

"eligible individual", in relation to a taxation year of a corporation for which the corporation is claiming a tax credit, means an individual (other than a trust or estate) who was resident in Manitoba on December 31 of the taxation year or of the immediately preceding taxation year. (« particulier admissible »)

"eligible non-resident individual", in relation to a taxation year of a corporation for which the corporation is claiming a tax credit, means an individual (other than a trust, estate or eligible individual) who, in that taxation year or the immediately preceding taxation year, provided technical services in Manitoba for the production of an eligible film as a member of a film production technical crew of which at least one other member was a Manitoba trainee receiving eligible training. (« non-résident admissible »)

"eligible salaries" of a corporation for a taxation year in respect of an eligible film means the total of the following amounts to the extent that they are reasonable in the circumstances:

(a) the salary or wages of eligible individuals that

(i) are directly attributable to the production of the film,

(ii) are incurred by the corporation for the stages of production from the production commencement time to the end of the post-production stage, and

(iii) were incurred in the year or the immediately preceding taxation year, and paid by the corporation within the year or 60 days after the end of the year,

but not including salaries and wages that were incurred in the immediately preceding year and paid within 60 days after the end of that preceding year;

(b) that portion of the remuneration — other than salary or wages and other than remuneration that relates to services rendered in the immediately preceding taxation year and was paid within 60 days after the end of that preceding year — that is directly attributable to the production of the film, that relates to services rendered in the year or the immediately preceding taxation year to the corporation for the stages of production from the production commencement time to the end of the post-production stage, and that is paid by the corporation in the year or within 60 days after the end of the year to

(i) an eligible individual who is not an employee of the corporation, to the extent that the amount paid

(A) is attributable to services personally rendered by the individual for the production of the film, or

(B) is attributable to and does not exceed the salary or wages of the individual's eligible employees for personally rendering services for the production of the film,

(ii) another corporation, to the extent that the amount paid is attributable to and does not exceed the salary or wages of the other corporation's eligible employees for personally rendering services for the production of the film,

(iii) another corporation,

(A) all of the issued and outstanding shares of the capital stock of which, except directors' qualifying shares, belong to an eligible individual, and

(B) the activities of which consist principally of the provision of the services rendered by that individual,

to the extent that the amount paid is attributable to services rendered personally by the individual for the production of the film, or

(iv) a partnership that is carrying on a business in Canada, to the extent that the amount paid

(A) is attributable to services personally rendered by an eligible individual who is a member of the partnership for the production of the film, or

(B) is attributable to and does not exceed the salary or wages of the partnership's eligible employees for personally rendering services for the production of the film;

(c) where

(i) the corporation is a subsidiary wholly-owned corporation of another corporation (the "parent"), and

(ii) the corporation and the parent have agreed that this clause apply in respect of the production of the film,

the reimbursement made by the corporation in the year, or within 60 days after the end of the year, of an expenditure that was incurred by the parent in a particular taxation year of the parent in respect of that production and that would be included in the eligible salaries of the corporation in respect of the film for the particular taxation year under clause (a) or (b) if

(iii) the corporation had such a particular taxation year, and

(iv) the expenditures were incurred by the corporation for the same purpose as they were by the parent and were paid at the same time and to the same person or partnership as it was by the parent;

(d) the lesser of

(i) the total increase in the amounts that would be included under clause (a) or (b) if the amounts paid by the corporation for services provided in Manitoba by eligible non-resident individuals were paid for services provided by eligible individuals, but no amount were included in respect of the benefits or allowances that are included (or would be included if they were employees resident in Canada) in the income of the eligible non-resident individuals under section 6 of the federal Act, and

(ii) the following percentage of the total of the amounts determined under clauses (a) to (c) for the taxation year:

(A) 30%, if at least two individuals participated, as Manitoba trainees, in the film production technical crew in which the eligible non-resident individual provided services, or

(B) 10%, if only one individual participated, as a Manitoba trainee, in the film production technical crew in which the eligible non-resident individual provided services;

(e) any additional amount that, according to the regulations, may be claimed as eligible salaries. (« traitements admissibles »)

"eligible service contract expenditure" of a corporation in relation to an eligible film means an amount paid

(a) to an eligible individual, other than an employee of the corporation, for services performed in Manitoba in respect of the eligible film by the individual or the individual's employees at a time when they were eligible individuals;

(b) to a taxable Canadian corporation for services performed in Manitoba in respect of the eligible film by that corporation's employees at a time when they were eligible individuals;

(c) to a taxable Canadian corporation,

(i) all the issued and outstanding shares of the capital stock of which belong to an eligible individual, and

(ii) the activities of which consist principally of the provision of services rendered by that individual,

for services rendered personally by that individual in Manitoba in respect of the eligible film; or

(d) to a partnership, each member of which is an eligible individual or a taxable Canadian corporation, for services performed in Manitoba in respect of the eligible film by an eligible individual who is a member of the partnership or by the partnership's employees at a time when they were eligible individuals;

and any other amount that, according to the regulations, may be claimed as an eligible service contract expenditure. (« dépense admissible en contrats de services »)

"eligible tangible property expenditure" of a corporation for a taxation year in relation to an eligible film means the total of the following amounts:

(a) the total of all amounts each of which is the portion of the corporation's lease cost of a tangible property used in making the film that can reasonably be attributed to the use in Manitoba of that property in the taxation year in the course of producing the film;

(b) the total of all amounts each of which is the amount determined by the following formula in respect of a depreciable property owned by the corporation:

C × R × D/365

In this formula,

C

is the corporation's undepreciated capital cost of the property at the beginning of the year or, if the property was acquired by it in the year, the corporation's cost of the property,

R

is the capital cost allowance rate for the property under Schedule II of the federal regulations,

D

is the number of days in the taxation year that the property was available for immediate use, in Manitoba, in producing the film. (« dépense admissible en biens corporels »)

"excluded production expenditure", in relation to an eligible film, means an expenditure incurred for

(a) meals or entertainment, other than food and non-alcoholic beverages provided to individuals working on the eligible film at a studio or location set on a day that filming takes place;

(b) alcoholic beverages;

(c) hotel or other temporary accommodation expenses;

(d) other living expenses;

(e) remuneration that is determined by reference to profit or revenue;

(f) anything for which an amount is included in computing a credit under any other section of this Act other than section 10.1 (co-op education and apprenticeship tax credit); or

(g) advertising, marketing, promotion, market research or anything else that relates in any way to any other film or video production. (« dépense de production exclue »)

"government assistance" means the amount of assistance which the corporation receives or is entitled to receive from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance, other than

(a) any film and video production tax credit under this Act or under the federal Act;

(b) government equity investment provided by The Canada Television and Cable Production Fund, Telefilm Canada or Manitoba Film and Sound Recording Development Corporation that is recoupable or repaid;

(c) any amount received or receivable under The Canada Television and Cable Production Fund Licence Fee Program;

(d) the amount of a credit under section 10.1 (co-op education and apprenticeship tax credit); and

(e) any other amount prescribed by regulation. (« aide gouvernementale »)

"Manitoba trainee" means an eligible individual who, as a member of a film production crew working on the production of an eligible corporation's eligible film, received training or provided technical services for which the corporation has received or is eligible to receive a co-op education and apprenticeship tax credit under section 10.1. (« stagiaire manitobain »)

"parent-subsidiary amount", in relation to a taxation year of a corporation, means an amount that

(a) is paid by the corporation, within the taxation year or 60 days after the end of the year, to another corporation (the "parent") in relation to which it is a subsidiary wholly-owned corporation; and

(b) is paid as a reimbursement of an expense of the parent that

(i) the corporation and the parent have agreed to treat as an expenditure of the corporation, and

(ii) would be an eligible service contract expenditure of the corporation for the taxation year in which it was incurred by the parent if

(A) the corporation's taxation year were the same as the parent's taxation year, and

(B) the expenditure were incurred by the corporation for the same purpose as it was incurred by the parent, and were paid by the corporation at the same time and to the same person as it was paid by the parent. (« remboursement à la corporation mère »)

"tax credit" means the tax credit established in section 7.6. (« crédit d'impôt »)

Limitations re eligible salaries

7.5(2)      For the purpose of the definition "eligible salaries" in subsection (1),

(a) remuneration does not include remuneration determined by reference to profit or revenue;

(b) salary or wages do not include an amount determined by reference to profit or revenue;

(c) where the value of remuneration, salary or wages may include an amount determined by reference to profits or revenues, the minister may deem a value for that portion of the eligible salaries;

(d) services referred to in clause (b) of the definition that relate to the post-production stage of the production include only the services that are rendered at that stage by a person who performs the duties of animation cameraman, assistant colourist, assistant editor, assistant mixer, assistant sound-effects technician, boom operator, colourist, computer graphics designer, developing technician, director of post-production, dubbing technician, encoding technician, inspection technician (clean-up), mixer, music supervisor, optical effects technician, picture editor, printing technician, projectionist, recording technician, senior editor, sound editor, sound-effects technician, special effects editor, subtitle technician, timer, videographer or videotaping technician, or any other duties prescribed by regulation; and

(e) an expense may be included in eligible salaries only if it is incurred and paid before March 1, 2014.

Eligible training

7.5(3)      For the purpose of the definition "eligible non-resident individual" in subsection (1), an individual is receiving eligible training if the training is designed to improve his or her technical film production skills and is authorized or approved by

(a) Film Training Manitoba;

(b) the Directors Guild of Canada;

(c) the International Alliance of Theatrical Stage Employees, Moving Picture Technicians, Artists and Allied Crafts of the United States, Its Territories and Canada;

(d) the Alliance of Canadian Cinema, Television and Radio Artists; or

(e) any other person or organization prescribed by regulation.

Limitation re eligible tangible property expenditure

7.5(4)      An expenditure may be included in an eligible corporation's eligible tangible property expenditure in relation to an eligible film for a taxation year only if all of the following conditions that apply are satisfied:

(a) the property is used in Manitoba in a manner that is directly attributable to the making of the film;

(b) the property is used during the stages of production of the film from the production commencement time to the end of the post-production stage;

(c) the expenditure is incurred by the corporation in the year or the immediately preceding taxation year;

(d) the expenditure is reasonable in the circumstances;

(e) in the case of a lease cost,

(i) the cost is incurred in the taxation year and was paid within the year or 60 days after the end of the year,

(ii) the lessor carries on, at a permanent establishment in Manitoba, the business of leasing tangible property of the type leased to the corporation, and

(iii) at the time of payment of the lease cost, the lessor is

(A) a taxable Canadian corporation that is not related to the eligible corporation or controlled by any of its employees,

(B) an individual resident in Manitoba who is not an employee of the eligible corporation, or

(C) a partnership each member of which is a corporation described in paragraph (A) or an individual described in paragraph (B).

Tax Credit

Refundable film and video production tax credit

7.6(1)      An eligible corporation is deemed to have paid on its balance-due day for a taxation year, on account of its tax payable under this Act for that year, such of the following amounts as are claimed by the corporation in its return for the year:

(a) its cost-of-salaries credit for that year for an eligible film for which the principal photography commenced before April 1, 2010;

(b) either

(i) its cost-of-salaries credit for that year, or

(ii) its cost-of-production credit for that year,

for an eligible film for which the principal photography commenced on or after April 1, 2010.

Cost-of-salaries credit

7.6(2)      Subject to subsections (7) and (8), an eligible corporation's cost-of-salaries credit for a taxation year for an eligible film produced by it in Manitoba is the amount determined by the following formula:

credit = 0.45A + 0.1B + 0.05(C + D)

In this formula,

A

is the amount, if any, by which

(a) the corporation's eligible salaries for the film for the year,

exceeds

(b) the amount of any government assistance received or to be received by the corporation in connection with those salaries;

B

is nil, unless

(a) the principal photography for the eligible film commenced after the commencement of the principal photography for two other eligible films,

(b) the same person or group of persons is the principal owner of each of the three films, and

(c) some of the principal photography for each of the three films took place within the same two-year period,

in which case B is the amount determined for A;

C

is nil, unless

(a) the corporation has, at any time during principal photography for the film, a permanent establishment in Manitoba at least 35 kilometres from Winnipeg, and

(b) the principal photography for the film took place in Manitoba at least 35 kilometres from Winnipeg for at least 1/2 of the days that principal photography took place in Manitoba,

in which case C is the amount determined for A;

D

is nil, unless a person who is resident in Manitoba in the year in which principal photography ends, or in the immediately preceding year, receives credit as a producer, co-producer or executive producer of that film, in which case D is the amount determined for A.

Principal owner

7.6(3)      Subject to subsection (4), a film's principal owner for the purpose of subsection (2) is a person or group of persons

(a) who owned, throughout the period of principal photography of the film, at least 50% of the voting shares of the corporation that claimed a tax credit for the film;

(b) whom the certifying authority, upon application in a form and containing the information required by the authority, recognizes as the film's principal owner because of the direct or indirect equity interest in the film held by the person or group throughout the period of principal photography; or

(c) whom the certifying authority, upon application in a form and containing the information required by the authority, 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.

Only one principal owner

7.6(4)      If a film would otherwise have more than one principal owner, it is deemed to have no principal owner other than

(a) the one principal owner identified in an agreement filed with the certifying authority and signed by each person who

(i) is or would otherwise be a principal owner, or

(ii) is a member of a group that is or would otherwise be a principal owner; or

(b) if no such agreement is filed, the person or group of persons recognized as the film's principal owner for the purpose of a tax credit previously allowed under subsection (2).

Frequent filming bonus involving series

7.6(5)      In determining the amount for B in the formula in subsection (2) 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.

Cost-of-production credit

7.6(6)      An eligible corporation's cost-of-production credit for a taxation year in relation to an eligible film produced by the corporation is the amount determined by the following formula:

credit = 0.3(A − B)

In this formula,

A

is the total of

(a) all amounts included under clauses (a) and (d) of the definition "eligible salaries" in subsection 7.5(1) in relation to the eligible film,

(b) the corporation's eligible service contract expenditures in relation to the eligible film that are not included under clause (a),

(c) the corporation's parent-subsidiary amounts in relation to the eligible film that are not included under clause (a) or (b), and

(d) the corporation's eligible tangible property expenditures in relation to the eligible film that are not included under clause (a), (b) or (c),

to the extent that those amounts

(e) are reasonable in the circumstances and directly attributable to the production of the eligible film,

(f) were incurred and paid before March 1, 2014,

(g) were incurred in the taxation year or the immediately preceding taxation year for goods or services provided in either of those years,

(h) were paid within the taxation year or 60 days after the end of the taxation year,

(i) were not incurred within the immediately preceding taxation year and paid within the first 60 days after the end of that year,

(j) relate to a stage of production of the eligible film from its production commencement time to the end of its post-production stage, and

(k) are not excluded production expenditures;

B

is the total of all amounts each of which is an amount of government assistance that may reasonably be considered to relate directly to any amount included in A.

Application for credit

7.6(7)      A corporation's tax credit under subsection (1) in respect of an eligible film is nil unless the corporation files with the minister an application for the credit in the form required by the minister and containing or accompanied by

(a) the certificate of completion issued under subsection 7.7(3) for the completed production; and

(b) all the information required by the minister to determine or verify the amount of the tax credit.

Duplicate claims

7.6(8)      If any part of the tax credits claimed under this section by two or more corporations can reasonably be attributed to the same salary or service, the tax credit of each of them in respect of that salary or service is nil, unless they file with the minister an agreement signed by all of them that allocates among them the amounts that may be claimed in respect of that salary or service.

Interpretation

7.6(9)      For the purpose of subsection (8), if an amount included in the eligible salaries or eligible service contract expenditures of one corporation is attributable to an amount paid by another corporation and included in that other corporation's eligible salaries or eligible service contract expenditures, the amounts so included by each of them are deemed to be attributable to the same salary or service.

Registration and Certification

Registration as eligible film

7.7(1)      The certifying authority, on receipt of an application in the form and containing the information and records required by the authority, may register a proposed production as an eligible film and issue a certificate of the registration to the applicant if, after reviewing the application, it is satisfied that the production

(a) is intended for a television, cinema, video tape, digital, CD-ROM, multimedia or nontheatrical production;

(b) will be a drama, variety show, animation, children's programming, music programming, informational series or documentary;

(c) will not be a production

(i) of news, current events or public affairs programming, or a program that includes weather or market reports,

(ii) of one or more talk shows,

(iii) of a game, questionnaire or contest (unless the production is directed primarily at minors),

(iv) of one or more sports events or activities,

(v) of one or more gala presentations or awards shows,

(vi) that solicits funds,

(vii) of reality television,

(viii) of pornography,

(ix) of advertising,

(x) produced primarily for industrial, corporate or institutional purposes,

(xi) all or substantially all of which consists of stock footage, unless it is a documentary, or

(xii) for which public financial support would, in the opinion of the Minister of Finance for Manitoba, be contrary to public policy; and

(d) satisfies any additional criteria prescribed by regulation.

Advance certificate of eligibility for credit

7.7(2)      The certifying authority may, on receipt of an application in the form and containing the information and records required by the authority, issue a certificate confirming

(a) the registration of the production as an eligible film;

(b) the status of the applicant as an eligible corporation; and

(c) that the applicant's estimate of the tax credit to be earned for the eligible film, assuming it will be produced as described in the application, is reasonable;

if it is satisfied, after reviewing the application, that the production is an eligible film, that the applicant is an eligible corporation and that the applicant's estimate of the tax credit is reasonable.

Certificate of completion

7.7(3)      The certifying authority, on receipt of an application in the form and containing the information and records required by the authority, must issue a certificate of completion if

(a) the corporation

(i) makes the application within 30 months after the end of the corporation's taxation year in which the principal photography for the film began, or

(ii) makes the application within 48 months after the end of the corporation's taxation year in which the principal photography for the film began and satisfies the authority that it filed with the minister, within the normal reassessment period, a waiver described in subparagraph 152(4)(a)(ii) of the federal Act in respect of the first two taxation years ending after the principal photography for the film began; and

(b) after reviewing the application, the authority is satisfied that

(i) the production has been completed,

(ii) the completed production satisfies the criteria for an eligible film set out or referred to in subsection (1), and

(iii) the applicant is an eligible corporation.

Content of certificate of completion

7.7(4)      A certificate of completion for an eligible film must identify the film and the corporation that produced it and confirm the following:

(a) that the film is an eligible film;

(b) that the corporation is an eligible corporation;

(c) the tax credit rate that is to apply in determining the cost-of-salaries credit, taking into account whether the film qualifies for the frequent filming bonus, the rural filming bonus, the Manitoba producer bonus, or two or more of those bonuses;

(d) if the cost-of-salaries credit or cost-of-production credit includes an amount for eligible non-resident individuals, the rate that is to apply under clause (d) of the definition "eligible salaries" in determining the cap on the amounts that may be included in respect of the amounts paid for their services.

Revocation of registration or certificate

7.8(1)      The registration of a production as an eligible film, or a certificate issued under section 7.7 in respect of a production or proposed production, may be revoked by the certifying authority or the Minister of Finance for Manitoba if

(a) an omission or incorrect statement was made for the purpose of obtaining the registration or certificate;

(b) the production fails to meet the criteria for an eligible film;

(c) the corporation in whose name the production was registered, or to whom the certificate was issued, ceases to be an eligible corporation; or

(d) an application for a certificate of completion is not made within the applicable period specified in clause 7.7(3)(a), or a certificate of completion is not issued in response to an application for it made within that period.

Effect of revocation

7.8(2)      If the registration of a production is revoked, the production is deemed never to have been registered, and if a certificate is revoked, it is deemed never to have been issued.

Regulations

Regulations

7.9         The Lieutenant Governor in Council may make regulations for the purpose of sections 7.5 to 7.8, including regulations

(a) defining terms that are not defined in section 7.5;

(b) prescribing additional expenditures that may be claimed as eligible salaries;

(c) prescribing additional expenditures that may be claimed as eligible service contract expenditures;

(d) prescribing amounts to be excluded from the definition "government assistance";

(e) prescribing additional duties for the purpose of clause 7.5(2)(d);

(f) prescribing additional persons or organizations for the purpose of subsection 7.5(3);

(g) prescribing additional criteria for eligible films for the purpose of clause 7.7(1)(d);

(h) respecting the registration of a film or video production as an eligible film, and the application for such a registration;

(i) respecting certificates that may be issued in respect of an eligible film, and applications for those certificates;

(j) respecting the application for a tax credit;

(k) prescribing recordkeeping requirements for a corporation that claims a tax credit, and respecting access to its records by the certifying authority;

(l) respecting any matter that the Lieutenant Governor in Council considers necessary or advisable for the administration or enforcement of those sections.

21          The following is added after section 7.12:

COOPERATIVE DEVELOPMENT TAX CREDIT

Definitions

7.13(1)     The following definitions apply in this section and sections 7.14 to 7.16.

"administrator" means

(a) Manitoba Cooperative Association Inc.; and

(b) a person or organization designated by regulation as an administrator for the purposes of this section and sections 7.14 to 7.16. (« administrateur »)

"cooperative development contribution" means a contribution of money made by an eligible contributor after September 2010 and before 2021, without conditions, to a cooperative development fund. (« cotisation d'aide au développement coopératif »)

"cooperative development fund" means a fund established by an administrator under subsection (2). (« fonds de développement coopératif »)

"eligible contributor" means

(a) a Manitoba cooperative; and

(b) a credit union as defined in subsection 137(6) of the federal Act that has a permanent establishment in Manitoba. (« cotisant admissible »)

"Manitoba cooperative" means a cooperative corporation as defined in subsection 136(2) of the federal Act that has a permanent establishment in Manitoba. (« coopérative manitobaine »)

"minister" means the minister appointed by the Lieutenant Governor in Council to administer this section. (« ministre »)

Cooperative development fund

7.13(2)     An administrator must establish and maintain a fund for the purpose of promoting cooperative development in Manitoba and use the fund in accordance with this section and the regulations to

(a) assist in the formation of new Manitoba cooperatives;

(b) pay the salaries of no more than two of the administrator's employees for

(i) providing technical assistance to Manitoba cooperatives, and

(ii) co-ordinating supports and services for Manitoba cooperatives; and

(c) make grants or loans to, or investments in, Manitoba cooperatives, other than cooperatives that primarily provide financial services.

Administrator's obligations

7.13(3)     An administrator must

(a) deposit in its cooperative development fund all cooperative development contributions made to the fund;

(b) subject to subsections (5) and (6) and the regulations, issue a tax credit receipt to the contributor within 60 days after receipt of the contribution;

(c) use each contribution for the purpose of the fund and in accordance with subsection (2) by the end of the calendar year immediately following the calendar year within which the contribution was received;

(d) not pay money out of the fund as a grant, loan or investment unless the recipient provides the administrator with a written undertaking, satisfactory to the administrator, that the recipient will

(i) comply with the restrictions in subsection (7),

(ii) allow the administrator to monitor the recipient's use of the money, and audit or inspect the recipient's property, books or records as the administrator considers necessary to verify compliance with the restrictions in subsection (7), and

(iii) provide the administrator with all information necessary for the administrator to complete the annual report under clause (f);

(e) until money in the fund is used as required by clause (c), keep it

(i) on deposit with, or invested in a guaranteed investment certificate issued by,

(A) a bank to which the Bank Act (Canada) applies,

(B) a credit union or caisse populaire to which The Credit Unions and Caisses Populaires Act applies, or

(C) a trust company that is incorporated under the laws of Canada or of a province of Canada and is carrying on business as a trust company in Manitoba, or

(ii) invested in a debt obligation issued by the province of Manitoba, a Manitoba Crown corporation or a Manitoba municipality; and

(f) within 120 days after the end of each calendar year in which the fund is maintained, provide copies to the Minister of Finance for Manitoba — or a person designated by him or her — of all the tax credit receipts issued by it during that year and a report, in a form approved by the Minister of Finance for Manitoba, that includes the following information:

(i) a detailed statement of the receipts and disbursements of the cooperative development fund showing

(A) the total contributions made to the fund in that year,

(B) the investment income earned by the fund in that year, and

(C) the total disbursements made from the fund in that year, and the amount and purpose of each disbursement,

(ii) for each amount paid in that year as a grant or loan or investment in accordance with clause (2)(c),

(A) the name and address of the recipient, and

(B) the amount paid and the purpose of the grant, loan or investment,

(iii) a statement confirming that, as at the end of the year, all the cooperative development contributions received in the preceding calendar year were used as required by clause (c), or a statement setting out the amount that was not used as required,

(iv) a statement confirming the administrator's compliance with clause (e),

(v) any additional information requested by the minister to assist him or her in evaluating the effectiveness of the cooperative development tax credit program.

Tax credit receipt

7.13(4)     The tax credit receipt to be issued to an eligible contributor must be in a form approved by the Minister of Finance for Manitoba and must set out

(a) the name and address of the contributor;

(b) the name and address of the administrator;

(c) the date and amount of the contribution;

(d) the amount of the tax credit calculated in accordance with the regulations;

(e) the portion of the tax credit, if any, that is refundable as determined in accordance with the regulations; and

(f) any additional information required by the Minister of Finance for Manitoba.

Annual limit on tax credits

7.13(5)     An administrator must not issue a tax credit receipt for a cooperative development contribution made in a calendar year if issuing it would cause the total of the tax credits for which tax credits receipts have been issued by the administrator for contributions in that year to exceed the tax credit limit for the year, which is

(a) for the 2010 calendar year, $100,000.; and

(b) for any later calendar year, $200,000.

Reduced limit if more than one administrator

7.13(6)     If there is more than one administrator in a calendar year, an administrator's tax credit limit for the year is nil unless

(a) the administrators file an agreement with the minister as to how the tax credit limit under subsection (5) is to be allocated between them for that year; or

(b) an administrator advises the minister that the administrators cannot agree on an allocation, and the minister allocates the tax credit limit for that year among them;

in which case, the administrator's tax credit limit for the year is the amount so allocated.

Restrictions on use of grant or investment proceeds

7.13(7)     Money paid as a grant, loan or investment from a cooperative development fund must not be used, directly or indirectly, by the recipient for any of the following:

(a) to pay the salary or wage of any employee of the recipient;

(b) to pay for a business reorganization, including a merger, amalgamation or winding-up;

(c) to repay debt or refinance or restructure the debt or equity of the recipient;

(d) to acquire an interest in land that is not necessary or incidental to the active business carried on by the recipient;

(e) to pay a patronage allocation or dividend, or make an advance or return capital to a member or shareholder of the recipient;

(f) to pay an amount owing by the recipient to a member or shareholder of the recipient or to a person related to such a member or shareholder;

(g) to invest in, or pay expenses of carrying on, a business outside Manitoba;

(h) for any other purpose prohibited by regulation;

(i) to carry on or finance any other activity that, in the minister's opinion, is contrary to public policy or does not contribute to cooperative development in Manitoba.

Recovery of tax credit — failure to use contributions

7.13(8)     If an administrator fails to use contributions as required by clause (3)(c), the administrator

(a) must pay to the Minister of Finance for Manitoba — upon written demand by that minister or a person authorized by him or her for this purpose — the amount set out in the demand, which is not to exceed the amount estimated by the minister or the authorized person to be the equivalent of the tax credits that were obtained in respect of the amount that was not used as required; and

(b) may pay that amount out of the cooperative development fund or out of its own resources.

Recovery of tax credit — recipient's failure to comply with restrictions

7.13(9)     If a recipient of money paid out of a cooperative development fund as a grant, loan or investment uses any of it contrary to subsection (7), the administrator of the fund

(a) must pay to the Minister of Finance for Manitoba — upon written demand by that minister or a person authorized by him or her for this purpose — the amount set out in the demand, which is not to exceed the amount estimated by the minister or the authorized person to be the equivalent of the tax credits that were obtained in respect of the amount that was used contrary to subsection (7); and

(b) may recover the amount so paid from that recipient.

Cooperative development tax credit

7.14(1)     Subject to subsections (2) and (3), an eligible contributor may deduct from the tax otherwise payable by it for a taxation year a cooperative development tax credit equal to the lesser of

(a) the total of all amounts each of which is the tax credit determined in accordance with the regulations in respect of a cooperative development contribution made by it in the taxation year; and

(b) the amount that would be the contributor's tax credit for the year if

(i) the total of its cooperative development contributions for the year was $50,000., and

(ii) the administrator were not subject to a tax credit limit for the year.

Proof of credit

7.14(2)     An eligible contributor is not entitled to a credit under this section for a taxation year unless the tax credit receipt or receipts that were issued to the contributor for that credit are

(a) filed with the contributor's return for that year; or

(b) if the return is filed electronically, held by the contributor and filed with the Minister of National Revenue upon request.

Refundable credit

7.14(3)     If an eligible contributor's tax credit under subsection (1) for a taxation year is greater than its tax otherwise payable for the year, the portion or proportion of the tax credit, if any, determined in accordance with the regulations, is deemed to have been paid by the eligible contributor on account of its tax payable for the taxation year.

Administrator to keep records

7.15(1)     An administrator must keep records in such form and containing such information as the minister considers necessary to verify information provided or to be provided in the administrator's annual report to the minister.

Recipient to keep records

7.15(2)     Each recipient of money paid out of a cooperative development fund as a grant, loan or investment must keep records in such form and containing such information that the administrator or the minister considers necessary to verify the recipient's compliance with the restrictions regarding the use of that money.

Location of records

7.15(3)     A person required to keep records under this section must keep them at the person's head office in Manitoba or at any other Manitoba location approved by the minister.

Regulations

7.16        The Lieutenant Governor in Council may make regulations

(a) designating one or more persons or organizations as administrators for the purposes of sections 7.13 to 7.15;

(b) for the purpose of subsection 7.13(2), clarifying the purpose of a cooperative development fund and respecting how it may be used to achieve that purpose;

(c) for the purpose of clause 7.13(7)(h), prescribing purposes for which money paid as a grant, loan or investment must not be used;

(d) prescribing a formula or other method for determining the tax credit under section 7.14 for a cooperative development contribution;

(e) prescribing a formula or other method for determining the amount that, under subsection 7.14(3), is deemed to be paid on account of an eligible contributor's tax payable for a taxation year;

(f) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the administration or enforcement of sections 7.13 to 7.15.

22          The following centred heading is added before section 8:

FOREIGN TAX CREDIT

23          Subsection 8(1) is amended

(a) in the formula in clause (a), by striking out "E" and substituting "F"; and

(b) adding the following after the description of E in the formula:

F

is the corporation's taxable income earned in the year,

24          Section 10.1 is replaced with the following:

Definitions

10.1(1)     The following definitions apply in this section.

"advanced level", in relation to an apprenticeship, means a Level 3 or higher level of apprenticeship, as determined for a designated trade under The Apprenticeship and Certification Act. (« niveau avancé »)

"approved co-op program" means a cooperative education program for which there exists a certificate of approval issued under subsection (21) that has not expired and has not been revoked. (« programme coopératif approuvé »)

"approved institution" means a post-secondary educational institution that offers an approved co-op program. (« établissement agréé »)

"certifying authority" means the Minister of Finance for Manitoba or a person designated by that minister as a certifying authority for the purpose of this section. (« autorité chargée de la délivrance des certificats »)

"cooperative education program" means a program or course of study that formally integrates students' academic studies with qualifying work placements. (« programme d'enseignement coopératif »)

"early level", in relation to an apprenticeship, means a Level 1 or Level 2 apprenticeship, as determined for a designated trade under The Apprenticeship and Certification Act. (« niveau peu avancé »)

"employer" means

(a) in relation to a qualifying work placement, the taxpayer or partnership with whom the student is employed in the work placement; and

(b) in relation to a qualifying period of employment, a taxpayer or partnership with whom the qualifying graduate, qualifying apprentice or qualifying journeyperson is employed for that period. (« employeur »)

"high school apprentice" means a qualifying apprentice who is enrolled in a secondary school and includes a learner as defined in The Adult Learning Centres Act. (« apprenti du secondaire »)

"in approved form" means in a form approved by the Minister of Finance for Manitoba for the provision of information under this section, and completed in accordance with the instructions set out in the form or any guidelines approved by the Minister of Finance for Manitoba for that form. (« formule approuvée »)

"practical experience" means practical experience as defined in The Apprenticeship and Certification Act. (« expérience pratique »)

"proof-of-credit certificate" means a proof-of-credit certificate issued by the certifying authority under this section. (« certificat de preuve de crédit »)

"qualifying apprentice" means an apprentice under an apprenticeship agreement registered under The Apprenticeship and Certification Act. (« apprenti admissible »)

"qualifying graduate" means a person who completed a cooperative education program before 2012 and received a degree, diploma or other certificate of completion for completing the program. (« diplômé admissible »)

"qualifying journeyperson" means a person who holds a certificate of qualification as a journeyperson in a designated trade under The Apprenticeship and Certification Act and became a journeyperson in that trade before 2012. (« compagnon admissible »)

"qualifying period of employment"

(a) in relation to the employment of a qualifying apprentice at an early level, means a period of employment at an early level of apprenticeship — or two or more periods of employment at that level considered collectively — in respect of which the following requirements are satisfied:

(i) throughout the period or periods,

(A) the apprenticeship is governed by an apprenticeship agreement that is in effect and is registered under The Apprenticeship and Certification Act,

(B) the apprentice is employed at that level and performing work to fulfill the practical experience requirements for that level,

(C) the work is performed primarily in Manitoba for an employer who is resident in Manitoba or has a permanent establishment in Manitoba,

(D) the apprentice is resident in Manitoba, and

(E) the apprentice is being paid no less than the applicable minimum wage for that employment,

(ii) the employment is at a level of apprenticeship begun by the apprentice before 2014,

(iii) in the case of a high school apprentice, the apprentice completed, after 2010, a 110-hour credit of practical experience toward a Level 1 apprenticeship and began work toward that credit after August 2010,

(iv) in the case of any other apprentice, the apprentice began that level after 2010 and completed it by satisfying the progression criteria prescribed under The Apprenticeship and Certification Act for that level;

(b) in relation to the employment of a qualifying apprentice at an advanced level, means a period of employment at an advanced level of apprenticeship — or two or more periods of employment at that level within a two-year period, considered collectively — in respect of which the following requirements are satisfied:

(i) throughout the period or periods,

(A) the apprenticeship is governed by an apprenticeship agreement that is in effect and is registered under The Apprenticeship and Certification Act,

(B) the apprentice is employed at that level and performing work to fulfill the practical experience requirements for that level,

(C) the work is performed primarily in Manitoba for an employer who is resident in Manitoba or has a permanent establishment in Manitoba,

(D) the apprentice is resident in Manitoba, and

(E) the apprentice is being paid no less than the applicable minimum wage for that employment,

(ii) the employment is at a level of apprenticeship begun by the apprentice after 2008 and before 2012,

(iii) the apprentice completed that level by satisfying the progression criteria prescribed under The Apprenticeship and Certification Act for that level;

(c) in relation to the employment of a qualifying graduate, means a period of employment in respect of which the following requirements are satisfied:

(i) it is a 12-month period of employment throughout which the graduate is employed in a permanent position, and not in a position for a specified term or completion of a specified task or project,

(ii) the employment is full-time (at least 35 hours per week),

(iii) the work is to be performed primarily in Manitoba for an employer who is resident in Manitoba or has a permanent establishment in Manitoba,

(iv) the work is closely related to the subject matter of the cooperative education program completed by the graduate, or requires skills and knowledge acquired in that program,

(v) the period of employment begins at the beginning of a pay period that begins

(A) within 18 months after the graduate completed the cooperative education program, if the employer has not claimed an amount under subsection (5) for a previous period of employment in relation to that graduate, or

(B) immediately after the end of the previous period of employment for which the employer has claimed an amount under subsection (5) in relation to that graduate,

(vi) the graduate is resident in Manitoba on December 31 within the 12-month period referred to in subclause (i); and

(d) in relation to the employment of a qualifying journeyperson, means a period of employment in respect of which the following requirements are satisfied:

(i) throughout the period, the journeyperson is employed in a permanent position and not in a position for a specified term or completion of a specified task or project,

(ii) the employment is full-time (at least 35 hours per week),

(iii) the work is to be performed primarily in Manitoba for an employer who is resident in Manitoba or has a permanent establishment in Manitoba,

(iv) the work is in, or closely related to, the trade in which the journeyperson is certified,

(v) the period of employment begins at the beginning of a pay period that begins

(A) within 18 months after the journeyperson becomes a qualifying journeyperson, if the employer has not claimed an amount under subsection (8) for a previous period of employment in relation to that journeyperson, or

(B) immediately after the end of the previous period of employment for which the employer has claimed an amount under subsection (8) in relation to that journeyperson,

(vi) the period comprises

(A) 12 consecutive months of continuous employment, or

(B) two periods of continuous employment totalling 12 months, one ending immediately before a seasonal lay-off and the other beginning immediately after the lay-off,

(vii) the journeyperson is resident in Manitoba on December 31 within the 12-month period referred to in subclause (vi). (« période d'emploi admissible »)

"qualifying work placement" means a work placement that ends before 2012 and is

(a) a work placement under a cooperative education program accredited with the Canadian Association for Co-operative Education and under which the student's work is to be performed primarily in Manitoba; or

(b) a work placement in relation to which the following requirements are satisfied:

(i) it has been developed or approved for an approved co-op program in accordance with the certificate of approval issued under subsection (21) for that program,

(ii) it is for a term of at least 10 consecutive weeks,

(iii) at the beginning of its term, the cooperative education program is an approved co-op program,

(iv) the student is employed by the employer on a full-time basis (at least 35 hours per week) throughout the term of the work placement,

(v) the student is entitled to salary or wages for work performed under the work placement,

(vi) the student is required to engage in productive work, and not just observe the work of others,

(vii) the student's work is to be performed primarily in Manitoba for an employer who is resident in Manitoba or has a permanent establishment in Manitoba,

(viii) the institution delivering the co-op program is satisfied that most of the student's work will provide training or work experience that is directly related to and reinforces the goals of the cooperative education program,

(ix) satisfactory completion of the work placement will earn the student a credit toward his or her degree or other certification in the cooperative education program,

(x) the time spent in periods of work experience is at least 20% of the time spent in academic study. (« stage en milieu de travail admissible »)

"recognized association" means a union or other incorporated association that provides apprentices to do work within their designated trades for others. (« association reconnue »)

"seasonal lay-off" of a person means a temporary lay-off of the person — for no more than three months — that occurs because of a typical reduction in the amount of available work. For this purpose, a reduction is typical if it occurs at the same time each year for technical, seasonal or market reasons, for employers in the industry or trade in which the person is employed. (« mise à pied saisonnière »)

Hiring Incentives

Refundable tax credit

10.1(2)     A taxpayer is deemed to have paid on his or her balance-due day for a taxation year, on account of his or her tax payable under this Act for the year, an amount equal to his or her co-op education and apprenticeship tax credit under subsection (3) for the taxation year.

Amount of tax credit

10.1(3)     Subject to the restrictions in subsections (9) to (11), a taxpayer's co-op education and apprenticeship tax credit for a taxation year is the total of the following amounts:

(a) the taxpayer's co-op student hiring incentive for the year, as determined under subsection (4);

(b) the taxpayer's co-op graduate hiring incentive for the year, as determined under subsection (5);

(c) the taxpayer's early level apprentice hiring incentive for the year, as determined under subsection (6);

(d) the taxpayer's advanced level apprentice hiring incentive for the year, as determined under subsection (7);

(e) the taxpayer's journeyperson hiring incentive for the year, as determined under subsection (8).

Co-op student hiring incentive

10.1(4)     A taxpayer's co-op student hiring incentive for a taxation year is the total of all amounts each of which is the amount determined by the following formula in relation to the employment of a co-op student under a qualifying work placement:

W × A/B

In this formula,

W

is the lesser of

(a) $1,000., and

(b) 10% of the amount by which

(i) the total salary and wages paid to the employee under that work placement for work performed primarily in Manitoba,

exceeds

(ii) the amount of any other government assistance received or receivable by the taxpayer in respect of the work placement or the salary and wages;

A

is the total salary and wages paid by the taxpayer for the work placement 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 for the work placement.

Co-op graduate hiring incentive

10.1(5)     A taxpayer's co-op graduate hiring incentive for a taxation year is the total of all amounts each of which is the amount determined by the following formula in respect of a qualifying period of employment of a qualifying graduate:

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 qualifying graduate for a 12-month qualifying period of 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 graduate for that period;

A

is the total salary and wages paid by the taxpayer to the graduate for the qualifying period of 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 for the qualifying period of employment.

Early level apprentice hiring incentive

10.1(6)     A taxpayer's early level apprentice hiring incentive for a taxation year is the total of all amounts each of which is the lesser of the amounts determined under clause (a) and clause (b) in respect of one or more qualifying periods of employment of a qualifying apprentice at an early level of apprenticeship:

(a) $2,000. less the total of all incentives claimed under this subsection for a preceding taxation year in respect of the employment of the apprentice at that level;

(b) the amount determined by the following formula in respect of a qualifying period of employment of the apprentice at that level that ended in the taxation year:

W × A/B

In this formula,

W

is 10% of the amount by which

(i) the total salary and wages paid to the apprentice for that period,

exceeds

(ii) the amount of any other government assistance received or receivable 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 that period 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 that period.

Advanced level apprentice hiring incentive

10.1(7)     A taxpayer's advanced level apprentice hiring incentive for a taxation year is the total of all amounts each of which is the amount determined by the following formula in respect of a qualifying period of employment of a qualifying apprentice at an advanced level of apprenticeship:

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 qualifying period of 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 qualifying period of 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 qualifying period of employment.

Journeyperson hiring incentive

10.1(8)     A taxpayer's journeyperson hiring incentive for a taxation year is the total of all amounts each of which is the amount determined by the following formula in respect of a qualifying period of employment of a qualifying journeyperson:

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 journeyperson for a qualifying period of 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 journeyperson for that period;

A

is the total salary and wages paid by the taxpayer to the journeyperson for the qualifying period of 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 journeyperson for the qualifying period of employment.

Restrictions

Restriction — qualifying period of employment

10.1(9)     If a period of employment is claimed as, or as part of, a qualifying period of employment under subsection (5), (6), (7) or (8), no part of it may be claimed as, or as part of, a qualifying period of employment under any other of those subsections.

Restriction — no incentive for employment qualifying for federal credit

10.1(10)    No period of employment of an apprentice may be claimed as, or as part of, a qualifying period of employment if any person is entitled under section 127 of the federal Act to an investment tax credit in respect of wages or salary paid to the apprentice during that period.

Restriction — proof of credit

10.1(11)    An amount may be included in a hiring incentive for a taxation year for a qualifying work placement or qualifying period of employment only if the taxpayer claiming the incentive

(a) files with his or her return for the taxation year; or

(b) if that return is filed electronically, holds and provides to the minister upon request;

a copy of the proof-of-credit certificate that supports the taxpayer's claim for that amount.

Proof-of-credit — Qualifying Work Placement

Proof-of-credit certificate — qualifying work placement

10.1(12)    Subject to subsection (13), the certifying authority must issue in the name of the employer a proof-of-credit certificate, in approved form, in respect of a qualifying work placement under an approved co-op program if

(a) the approved institution for that program has filed a certificate of completion, in approved form, in respect of that work placement with the authority; and

(b) the authority is satisfied that the work placement is a qualifying work placement.

Limitation

10.1(13)    If the student who completed the qualifying work placement has previously completed five qualifying work placements for which proof-of-credit certificates were issued, the proof-of-credit certificate may be issued only if the Minister of Finance for Manitoba approves the hiring incentive for that placement.

Waiver of completion requirement

10.1(14)    If a student fails to satisfactorily complete a work placement, the certifying authority may, upon

(a) application by the employer or the approved institution accompanied by a description of the circumstances and the reason for the failure; and

(b) being satisfied that

(i) the failure occurred through no fault of the employer, and

(ii) a substantial portion of the work to be performed under the work placement was performed by the student;

waive the requirement for the completion of the work placement and issue a proof-of-credit certificate for the work placement.

Proof-of-credit — Qualifying Period of Employment

Proof-of-credit certificate — qualifying period of employment

10.1(15)    Subject to subsections (16) and (17), the certifying authority must issue in the name of the employer a proof-of-credit certificate, in approved form, in respect of a period of employment if

(a) the employer has filed with the authority

(i) an application for credit, in approved form, in respect of that period of employment, and

(ii) if the employer claims that the employee is a qualifying graduate, evidence sufficient to satisfy the authority that the employee is a qualifying graduate; and

(b) the authority is satisfied, based on that application and any additional information provided to the authority, that the period of employment is a qualifying period of employment of a qualifying graduate, qualifying apprentice or qualifying journeyperson, as the case may be.

Limitation — employment of graduate or journeyperson

10.1(16)    In the case of a period of employment of

(a) a qualifying graduate who already has two 12-month qualifying periods of employment as a qualifying graduate for which proof-of-credit certificates have been issued; or

(b) a qualifying journeyperson who already has two 12-month qualifying periods of employment as a qualifying journeyperson for which proof-of-credit certificates were issued;

the proof-of-credit certificate may be issued only if the Minister of Finance for Manitoba approves the hiring incentive for that period.

Restriction — employer of journeyperson to participate in apprenticeship program

10.1(17)    The certifying authority must not issue a proof-of-credit certificate in respect of the employment of a journeyperson unless the employer is or has been participating in one or more of the following ways in an apprenticeship program administered by the Manitoba government:

(a) by employing, in the taxation year in which the qualifying period of employment ends, at least one apprentice who has completed his or her first year of apprenticeship with the employer;

(b) by having employed, within the preceding five taxation years, at least one apprentice who completed at least two years of apprenticeship with the employer during those years;

(c) by being an active member, in that taxation year, of an association

(i) that is recognized under the regulations under The Apprenticeship and Certification Act as an employer under the apprenticeship program, and

(ii) any member of which satisfies the requirement in clause (a) or (b).

Waiver of 12-month completion requirement

10.1(18)    If a period of employment of a qualifying graduate or a qualifying journeyperson fails to qualify as a qualifying period of employment only because it fails to meet the 12-month requirement for that period, the certifying authority may, upon

(a) application by the employer accompanied by a description of the circumstances and the reason for the failure; and

(b) being satisfied that the failure occurred through no fault of the employer;

waive the 12-month requirement and issue a proof-of-credit certificate for the period of employment.

Waiver of apprenticeship completion requirement

10.1(19)    If a period of employment at a level of apprenticeship fails to qualify as a qualifying period of employment only because the apprentice failed to complete that level, the certifying authority may, upon

(a) application by the employer accompanied by a description of the circumstances and the reason for the failure; and

(b) being satisfied that

(i) the failure occurred through no fault of the employer, and

(ii) the apprentice performed a substantial portion of the work for the completion of the level;

waive the requirement for the completion of that level and issue a proof-of-credit certificate for that period of employment.

Other Administrative Provisions

Application for approval of cooperative education program

10.1(20)    A post-secondary educational institution that operates a cooperative education program may apply to the Minister of Advanced Education and Literacy for a certificate of approval for that program for the purpose of this section.  The application must be made in approved form, and must include an undertaking of the institution to

(a) monitor each work placement under the program as necessary to determine whether it meets the requirements for a qualifying work placement;

(b) issue to each graduand of the program a certificate, in a form approved by the Minister of Advanced Education and Literacy, that sets out the name of the program and his or her anticipated date of graduation;

(c) issue a completed work placement certificate in approved form upon completion of each qualifying work placement; and

(d) provide information about students and work placements under the program to the Minister of Advanced Education and Literacy upon request.

Certificate of approval

10.1(21)    Upon receipt of an application under subsection (20) in respect of a cooperative education program, the Minister of Advanced Education and Literacy may

(a) issue a certificate of approval for the program described in the application; and

(b) in that certificate of approval,

(i) set out an expiry date for the certificate, and

(ii) impose restrictions, conditions or reporting obligations on the applicant in respect of the work placements to be created under the program.

Employers may share apprentice hiring incentive

10.1(22)    If, during the course of an apprenticeship,

(a) the apprenticeship agreement is assigned or transferred in accordance with The Apprenticeship and Certification Act from one employer to another employer; or

(b) the apprentice is employed by two or more employers under an agreement with a recognized association;

upon receipt of a joint application by the employers, in approved form, the certifying authority may

(c) in determining whether the periods of employment of the apprentice by those employers are a qualifying period of employment, treat the employers as one employer and consecutive periods of employment of the apprentice as a single period of continuous employment; and

(d) allocate the hiring incentive for the qualifying period of employment among the employers such that each employer's share of the incentive is the proportion of the incentive otherwise determined for the period that

(i) the salary and wages paid to the apprentice by that employer for that period, less the amount of any government assistance received or receivable by that employer in relation to that employment,

is of

(ii) the total salary and wages paid to the apprentice by all the employers for that period, less the total of all government assistance received or receivable by them in relation to that employment.

Regulations

10.1(23)    The Lieutenant Governor in Council may make regulations

(a) respecting the form and content of certificates referred to in this section, and applications for certificates referred to in this section;

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

(c) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the administration or enforcement of this section.

Unused credit

10.1(24)    A taxpayer who, on the day this subsection comes into force, has an unused tax credit under this section (as it read on March 6, 2006) for a previous taxation year may deduct the unused portion of that credit from its tax otherwise payable for any of the 10 taxation years following the taxation year in relation to which the tax credit arose.

Amalgamation

10.1(25)    For the purpose of determining the amount that a corporation formed by an amalgamation to which subsection 87(1) of the federal Act applies

(a) may deduct under subsection (24); or

(b) is deemed by subsection (1) to have paid on account of its tax payable;

the corporation is deemed to be the same corporation as, and a continuation of, each of its predecessor corporations.

Winding-up

10.1(26)     For the purpose of determining the amount that a corporation

(a) may deduct under subsection (24); or

(b) is deemed by subsection (1) to have paid on account of its tax payable;

for a taxation year ending after a winding-up of its subsidiary to which subsection 88(1) of the federal Act applies, the corporation is deemed to be the same corporation as, and a continuation of, the subsidiary.

Exempt taxpayer may apply for refund

10.1(27)    A taxpayer who

(a) is exempt from tax under Part I of the federal Act; and

(b) is deemed by subsection (2) to have paid an amount on account of tax for a taxation year;

may apply to the Minister of Finance for Manitoba for a refund of that amount.

Application method

10.1(28)    The application for a refund for a taxation year

(a) must be made in approved form on or before the taxpayer's filing-due date for the taxation year; and

(b) must include

(i) the proof-of-credit certificate or certificates issued to the taxpayer under this section in support of the credit, and

(ii) the taxpayer's calculation of the amount the taxpayer is deemed by subsection (2) to have paid on account of tax for the taxation year.

25          Section 10.3 is replaced with the following:

Definitions

10.3(1)     The following definitions apply in this section.

"eligible manufacturer", in relation to a taxation year, means a manufacturer who is an eligible taxpayer for that year and whose primary business in Manitoba in that year is manufacturing geothermal energy equipment. (« fabricant admissible »)

"eligible taxpayer", in relation to a taxation year, means

(a) a corporation with a permanent establishment in Manitoba in the year; or

(b) an individual who is resident in Manitoba at the end of the year. (« contribuable admissible »)

"geothermal energy equipment" means machinery or equipment, other than reconditioned or remanufactured machinery or equipment, that is designated in the regulations as geothermal energy equipment. (« matériel d'énergie géothermique »)

"solar thermal energy equipment" means equipment or machinery, other than reconditioned or remanufactured machinery or equipment, that is designated in the regulations as solar thermal energy equipment. (« matériel d'énergie héliothermique »)

Manufacturer's green energy equipment tax credit

10.3(2)     For a taxation year beginning before 2019, an eligible manufacturer is deemed to have paid on account of its tax payable under this Act for that year the total of all amounts each of which is an amount determined by the following formula in respect of a geothermal heat pump that meets the requirements of subsection (3):

tax credit = P × 5%

In this formula, P is

(a) the price at which the heat pump was sold by the manufacturer; or

(b) if the heat pump was sold by the manufacturer to a person with whom the manufacturer did not deal at arm's length, the lesser of the purchase price and the fair market value of the heat pump at the time of the sale.

Qualifications for geothermal heat pump

10.3(3)     An eligible manufacturer is entitled to a tax credit under subsection (2) in respect of a geothermal heat pump only if the heat pump

(a) is designated in the regulations as geothermal energy equipment;

(b) is manufactured by the eligible manufacturer after April 4, 2007, primarily in Manitoba; and

(c) is sold by the manufacturer in the taxation year and before 2019

(i) to a consumer for use by the consumer in heating and cooling with geothermal energy in Manitoba,

(ii) to a contractor for installation of the heat pump for heating or cooling with geothermal energy in Manitoba, or

(iii) to a retailer with a permanent establishment in Manitoba for the purpose of resale to a contractor or consumer for use of the heat pump in heating or cooling with geothermal energy in Manitoba.

Purchaser's statement

10.3(4)     The manufacturer's claim for a tax credit in respect of a geothermal heat pump may be denied if it is not supported by a statement, signed by the consumer, contractor or retailer who purchased the heat pump from the manufacturer, setting out the purchaser's name and address and confirming that the pump is being purchased for the use or purpose described in clause (3)(c) in relation to that purchaser.

Purchaser's green energy equipment tax credit

10.3(5)     An eligible taxpayer is deemed to have paid on account of his or her tax payable under this Act for a taxation year before 2019 the total of all amounts each of which is an amount determined by one of the following formulas in respect of geothermal energy equipment or solar thermal energy equipment purchased and first used or made available for use by the purchaser in the taxation year:

(a) for geothermal energy equipment other than a geothermal heat pump, the formula is:

tax credit = capital cost × 10%

(b) for a geothermal heat pump for which a manufacturer is eligible for a tax credit under subsection (2), the formula is:

tax credit = price × 5%

(c) for an item of solar thermal energy equipment, the formula is:

tax credit = capital cost × 10%

In these formulas,

"capital cost" means the amount that would be the taxpayer's capital cost of the equipment if

(a) the equipment were depreciable property of the taxpayer,

(b) the amount of any government assistance received by the taxpayer in relation to the purchase of the equipment were deducted from the capital cost otherwise determined, and

(c) no amount were included in respect of the taxpayer's borrowing costs;

"price" means the purchase price paid or payable by the eligible taxpayer for the item.

Claim to be supported by manufacturer's statement

10.3(6)     A taxpayer's claim for a tax credit calculated under clause (5)(b) in respect of a geothermal heat pump may be denied if it is not supported by a statement from the manufacturer of the pump setting out the manufacturer's name and address and confirming that the pump, if purchased for use in heating or cooling with geothermal energy in Manitoba, qualifies for the manufacturer's tax credit under subsection (2).

Tax credit for member of partnership

10.3(7)     An eligible taxpayer who is a member of a partnership

(a) whose primary business in Manitoba is manufacturing geothermal heat pumps; or

(b) that has purchased geothermal energy equipment for use by the partnership in heating or cooling with geothermal energy in Manitoba;

may claim the proportion that may reasonably be considered the member's share of the tax credit to which the partnership would be entitled if it were an eligible taxpayer.

No assignment of tax credit

10.3(8)     Despite subsection 220(6) of the federal Act, a tax credit under this section may not be assigned.

Regulations

10.3(9)     The Lieutenant Governor in Council may make regulations

(a) designating machinery or equipment as geothermal energy equipment for the purpose of this section;

(b) designating machinery or equipment as solar thermal energy equipment for the purpose of this section;

(c) respecting the provision of information by

(i) a manufacturer of geothermal energy equipment, or

(ii) a purchaser of geothermal energy equipment or solar thermal energy equipment,

to the minister appointed by the Lieutenant Governor in Council to administer this section;

(d) respecting the provision of information, for the purposes of the tax credit under subsection (5), by a manufacturer or other seller of geothermal energy equipment to a purchaser of it;

(e) respecting any other matter that the Lieutenant Governor in Council considers necessary or desirable for the administration and enforcement of this section or for measuring the effectiveness of the tax credits under this section.

26          Clause (n) of the definition "eligible book" in subsection 10.4(3) is repealed.

27(1)       Subsections 10.5(1) and (2) are replaced with the following:

Interactive digital media tax credit

10.5(1)     Subject to subsections (2) to (2.2), a qualifying corporation is deemed to have paid on its balance-due day for a taxation year, on account of its tax payable under this Act for that year, such amount as is claimed by the corporation, but not exceeding 40% of the amount, if any, by which

(a) its eligible labour costs for eligible projects for which a claim is not prohibited by subsection (2);

exceed the total of

(b) the amount of any government assistance, other than

(i) the tax credit under this section or section 10.1 (co-op education and apprenticeship tax credit), received or receivable by the corporation in relation to its eligible labour costs for those projects, and

(ii) any government assistance repaid or repayable by the corporation that would otherwise be deducted under this clause; and

(c) the total of all amounts each of which is included under clause (a) and was included under that clause in computing the corporation's tax credit under this subsection for a preceding taxation year.

Claim for credit

10.5(2)     No amount may be claimed under subsection (1) in respect of an eligible project after the filing-due date for the taxation year following the taxation year in which the project was completed.

Proof of credit

10.5(2.1)   A corporation is not entitled to a credit under this section for a taxation year unless the tax credit certificate for that credit is

(a) filed with the corporation's return for that year; or

(b) if the return is filed electronically, held by the corporation and filed with the Minister of National Revenue upon request.

Limitation for projects for government

10.5(2.2)   Despite subsection (1), if the eligible project consists of an interactive digital media product being developed primarily for sale or licence to the government or an agency of the government, a Manitoba municipality or an agency of a Manitoba municipality, or a corporation controlled by the government or by such a municipality or agency,

(a) the credit under that subsection may be claimed only after the project is completed; and

(b) the amount of the credit under that subsection cannot exceed the amount, if any, by which

(i) the taxpayer's total cost of the project,

exceeds

(ii) the taxpayer's proceeds from the sale or licence of the product.

27(2)       Subsection 10.5(4) is amended

(a) in the part of the definition "eligible labour costs" before clause (a), by striking out "2011" and substituting "2014"; and

(b) by replacing the definition "project period" with the following:

"project period", in relation to an eligible project, means

(a) in the case of a project for which no tax credit is claimed before the project is completed, the period that begins on its commencement date or the day that is 24 months before its completion date, whichever is later, and ends on its completion date; and

(b) in the case of a project for which a tax credit is claimed before the project is completed, the period that begins on its commencement date or the day that is 24 months before its estimated completion date, whichever is later, and ends on the actual completion date or on the day that is 24 months after the first day of the project period, whichever is earlier. (« période de projet »)

27(3)       Clause 10.5(9)(c) is amended by adding "or the estimated date of its completion, if it has not yet been completed" at the end.

28          The centred heading before section 11.13 is replaced with "SMALL BUSINESS VENTURE CAPITAL TAX CREDIT".

29(1)       Subsection 11.13(1) is amended

(a) by adding the following definition:

"administrator" means the person appointed as the administrator under subsection (1.1). (« administrateur »)

(b) by repealing the definitions "CEI tax credit", "CEI tax credit receipt" and "responsible minister";

(c) by replacing the definition "eligible investor" with the following:

"eligible investor" means a taxpayer (other than a trust) who meets the requirements prescribed by regulation and is not

(a) a prescribed venture capital corporation or prescribed labour-sponsored venture capital corporation under Part LXVII of the federal regulations; or

(b) acting in his or her capacity as a dealer under The Securities Act. (« investisseur admissible »)

(d) by adding the following definitions:

"SBVC tax credit" of an eligible investor for a taxation year means the investor's small business venture capital tax credit determined under subsection (3) for the year. (« crédit d'impôt pour capital de risque de petites entreprises »)

"SBVC tax credit receipt" means a receipt, in a form authorized by the Minister of Finance for Manitoba, that contains prescribed information concerning an eligible investment issued to an eligible investor or to a flow-through entity in which an eligible investor has an interest. (« reçu relatif au crédit d'impôt pour capital de risque de petites entreprises »)

29(2)       The following is added after subsection 11.13(1):

Appointment of administrator

11.13(1.1)  The Minister of Finance for Manitoba may appoint

(a) the administrator appointed under section 10.1 of The Labour-Sponsored Venture Capital Corporations Act; or

(b) an individual employed under the Minister of Finance for Manitoba;

as the administrator.

Responsibility of administrator

11.13(1.2)  Except as otherwise provided in the terms of his or her appointment, the administrator is responsible for administering and enforcing the provisions of this Act and the regulations that relate to the SBVC tax credit.

Powers of administration and enforcement

11.13(1.3)  For the purpose of carrying out his or her duties, the administrator has all the powers conferred by this Act on the Minister of Finance for Manitoba or the Minister of National Revenue in relation to the administration or enforcement of any other provision of this Act.

29(3)       Subsection 11.13(2) is amended

(a) by striking out "ending after 2007"; and

(b) by striking out "CEI tax credit" and substituting "SBVC tax credit".

29(4)       Subsection 11.13(3) is amended

(a) in the part before clause (a), by striking out "community enterprise investment tax credit" and substituting "small business venture capital tax credit";

(b) in subclauses (a)(i) and (ii), by striking out "2011" and substituting "2014"; and

(c) in paragraphs (b)(ii)(A) and (B), by striking out "CEI tax credit" and substituting "tax credit under this section".

29(5)       Subsection 11.13(5) is repealed.

29(6)       Subsection 11.13(6) is replaced with the following:

Proof of credit

11.13(6)    An eligible investor is not entitled to a credit under subsection (3) for a taxation year unless the SBVC tax credit receipt issued to the investor for that credit is

(a) filed with the investor's return for that year; or

(b) if the return is filed electronically, held by the investor and filed with the Minister of National Revenue upon request.

30          Subsection 11.14(2) is amended

(a) in the section heading, by striking out "Minister" and substituting "Administrator"; and

(b) in the subsection, by striking out "responsible minister" and substituting "administrator".

31          Clause 11.16(2)(a) is replaced with the following:

(a) in respect of an investment if no tax credit has been claimed for it under this section and the SBVC tax credit receipt issued for the investment has been returned to the issuer of the investment; or

32(1)       Clauses 11.17(1) is amended

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

(a.1) prescribing requirements respecting eligible investors;

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

(d) respecting the issuance and filing of SBVC tax credit receipts and information to be included on those receipts;

(c) in the part of clause (h) before subclause (i), and in clause (j), by striking out "CEI" and substituting "SBVC".

32(2)       Subsections 11.17(2) and (3) are repealed.

33(1)       Subsection 53.2(2) is amended by replacing the part after clause (b) with the following:

despite any other provision of this Act, any untaxed income arising from the subsequent disposition referred to in clause (b) shall be included in the taxpayer's taxable income for the taxation year in which the disposition referred to in clause (a) occurred.

33(2)       Subsection 53.2(3) is repealed.

34          Clause 57.1(3)(f) is amended by striking out "section 4.6 or 5" and substituting "this Act".

Validation of Canada-Manitoba Tax Collection Agreement

35          The 2004 Canada-Manitoba Tax Collection Agreement, as amended from time to time, is not invalid by reason only of the fact that it was entered into with the approval of the Executive Council but not the approval of the Lieutenant Governor in Council as required by subsection 61(1) of The Income Tax Act.  Everything done that would have been validly done if the agreement had been entered into with the approval of the Lieutenant Governor in Council is validated and deemed to have been lawfully done.

PART 6

THE MINING TAX ACT

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

36          The Mining Tax Act is amended by this Part.

37          Subsection 1(1) of the French version is amended by striking out "depenses" in the expression "« depenses engagées avant la production »" and substituting "dépenses".

38          The following provisions of the English version are amended by striking out "he" and substituting "the operator":

(a) subsections 3(1) and (2);

(b) subsections 5(1) and (2).

39          The part of subsection 13(2) of the English version before clause (a) is amended by striking out "him" and substituting "the operator".

40(1)       Subsection 14(1) of the English version is amended

(a) in subclause (a)(i), by striking out "by him for that fiscal year as estimated by him on the basis of his" and substituting "by the operator for that fiscal year, as estimated by the operator based on the operator's"; and

(b) in subclauses (a)(ii) and (iii) and clause (b), by striking out "him" and substituting "the operator".

40(2)       Subsection 14(1.1) of the English version is amended by striking out "him" wherever it occurs and substituting "the operator".

41          Subsection 22(2) is amended by striking out "by him under the Act" and substituting "by the operator".

42          Section 23 of the English version is amended by striking out "his operations" and substituting "the operations of the operator".

43          Subsection 44(3) is amended

(a) in the part before clause (a), by striking out ", in his absolute discretion,";

(b) in clause (a), by striking out "the expenditure from the mining community reserve of such sums as he may specify" and substituting "amounts to be paid from the mining community reserve";

(c) in clause (a.1), by striking out "the expenditure from the reserve of the amount, or any part of the amount, by which the reserve exceeds $10,000,000." and substituting "the excess amount or any part of it to be used"; and

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

(e) authorize the doing of anything that the Lieutenant Governor in Council considers necessary for the purposes mentioned in clauses (a) and (a.1).

PART 7

THE PROPERTY TAX AND INSULATION ASSISTANCE ACT

C.C.S.M. c. P143 amended

44          The following is added after Part V.1 of The Property Tax and Insulation Assistance Act:

PART V.2

RIPARIAN PROPERTY TAX REDUCTION

Definitions

25.2(1)     The following definitions apply in this Part.

"agricultural activity" includes haying, grazing, tilling, and cutting trees for lumber or firewood. (« activité agricole »)

"benefit period", in relation to riparian land to which a tax reduction applies, means the five-year period for which the application for the tax reduction is made. (« période de réduction »)

"eligible former crop land" means, subject to subsection (2), riparian land that

(a) has previously been cultivated and is still suitable for cultivation, but is no longer being cultivated;

(b) is maintained with native and tame forage, bushes and trees, or any combination of them; and

(c) is not used for any agricultural activity other than haying. (« bien-fonds admissible anciennement cultivé »)

"eligible former grazing area" of a taxpayer means, subject to subsection (2), a minimum area of riparian land that is suitable for grazing but that, together with the related waterway or lake, is protected by permanent fencing from access by livestock grazing on adjacent land during the benefit period. If the taxpayer owns or occupies land on both sides of the waterway or lake, the fence must protect the waterway from access on each side on which livestock are permitted to graze. It includes the portion of a waterway or lake where the fencing is designed to allow supervised water crossing, but not watering or grazing.  For this purpose, a minimum area of riparian land is an area not less than the lesser of

(a) four contiguous acres of riparian land; and

(b) all of the riparian land within a one-quarter section of land. (« ancienne zone de pâturage admissible »)

"Farm Property" has the same meaning as in The Municipal Assessment Act. (« bien agricole »)

"lake" means a permanent body of water with a surface area of at least two square kilometres and a natural water channel outlet. (« lac »)

"natural water channel" means a water channel that exists in its natural location and with its natural cross-section. It does not cease to be a natural water channel by reason only of the clearing of vegetation, the construction of pilot channels to maintain its natural alignment or improve flow conditions or minor work affecting a minor portion of its length or having a minor effect on its capacity. (« voie d'eau naturelle »)

"off-site watering facility" means a water pump and reservoir where

(a) the pump and reservoir are used only for watering livestock that are grazing in areas near one or more eligible former grazing areas and do not have access to a lake or waterway;

(b) the pump and reservoir become available for use before the end of the first year of the benefit period and remain in use or available for use for the rest of the benefit period; and

(c) the reservoir

(i) has been constructed by the taxpayer, or is a natural depression that has been modified by the taxpayer, for the purpose of watering livestock, and

(ii) has no outflowing water channel. (« installation d'abreuvement hors site »)

"riparian land" means Farm Property

(a) that extends in a strip 30.48 metres wide along one bank of a waterway or the shore of a lake; or

(b) that the minister recognizes as riparian land because it extends in a strip at least 10 metres wide along a natural water channel or body of water the protection of which, in the minister's opinion, merits the support provided by a tax reduction. (« bien-fonds riverain »)

"taxpayer", in relation to riparian land, means a registered owner or an occupier, within the meaning of The Municipal Assessment Act, of that land. (« contribuable »)

"tax reduction" means a tax reduction under this Part or under a riparian property tax reduction regulation made under Part V.1. (« réduction de taxe »)

"waterway" means

(a) a waterway designated as an Order 4, 5, 6, 7 or 8 drain on a plan that shows designations of drains and is maintained by the government department or branch that is responsible for regulating drainage in Manitoba;

(b) a natural water channel designated as an Order 3 drain on a plan referred to in clause (a);

(c) the Red River, the Saskatchewan River, the Winnipeg River, the Carrot River, the Fairford River and the Dauphin River; and

(d) a waterway designated for this purpose by the minister. (« cours d'eau »)

Restriction

25.2(2)     "Eligible former crop land" and "eligible former grazing area" in relation to a benefit period do not include any land that is included as eligible former crop land or eligible former grazing area in calculating a tax reduction for any other benefit period that has not yet ended.

Purposes

25.3        The purposes of the tax reductions are

(a) to promote the protection and restoration of riparian lands, lakes and waterways in agricultural areas;

(b) to improve water quality in Manitoba; and

(c) to recognize the contribution of taxpayers in promoting the protection and restoration of riparian land, lakes and waterways during the benefit period.

Application for tax reduction

25.4(1)     A taxpayer who wishes to obtain a tax reduction in respect of riparian land for a benefit period must apply for it on a form approved by the minister.

Application deadline

25.4(2)     The application must be filed with the minister

(a) before June 30, 2010, if it is for the benefit period beginning on January 1, 2010; and

(b) before April 30 of the first year of any later benefit period.

Content of application

25.4(3)     The application must include the following:

(a) a description of the taxpayer's riparian land, identifying which land is or will be eligible for the tax reduction and the class of tax reduction for which it is or will be eligible;

(b) if the taxpayer is applying for the additional tax reduction under subsection 25.6(5) for an off-site watering facility, a description of that facility and its location;

(c) if the taxpayer is applying for the additional tax reduction under subsection 25.6(8) for sloped riparian land, a description of that land and its slope;

(d) the taxpayer's undertaking to keep the land eligible for the tax reduction until the end of the benefit period;

(e) the taxpayer's authorization for the minister or an agent of the minister to enter upon and inspect the taxpayer's land to verify its eligibility for the tax reduction throughout the benefit period;

(f) if a riparian property tax reduction regulation made under Part V.1 (other than Manitoba Regulation 100/2009) applies to the land, an election by the taxpayer to discontinue its application to that land;

(g) any other information required by the minister.

Effect of election

25.4(4)     If an election is made under clause (3)(f) in relation to a regulation and the taxpayer's application is approved by the minister, the regulation is deemed to have ceased to apply, as of the beginning of the benefit period, to any land that is the subject of the application.

Land must remain eligible to end of benefit period

25.5(1)     Riparian land is eligible for a basic or additional tax reduction for a benefit period only if it is eligible for the reduction throughout the benefit period.

Fence installed before end of first year of benefit period

25.5(2)     For the purpose of subsection (1) and section 25.6, riparian land that becomes an eligible former grazing area before the end of the first year of a benefit period, is considered to have become an eligible former grazing area at the beginning of the benefit period.

Exception in drought emergency

25.5(3)     Riparian land that, but for grazing in an emergency caused by drought, would have qualified for a tax reduction under subsection 25.6(2), (5) or (8) or, but for haying in such an emergency, would have qualified for a tax reduction under clause 25.6(2)(a), does not cease to qualify for the tax reduction if

(a) the Minister of Agriculture, Food and Rural Initiatives, on application by the taxpayer, confirms to the Minister of Finance the existence of the emergency; and

(b) the taxpayer complies with the haying or grazing limits, if any, imposed by the Minister of Agriculture, Food and Rural Initiatives on the taxpayer for continuing eligibility for the tax reduction.

Minister may set conditions for haying or grazing in emergency

25.5(4)     On application by a taxpayer whose application for a tax reduction has been approved by the Minister of Finance, the Minister of Agriculture, Food and Rural Initiatives may

(a) confirm the existence of an emergency caused by drought; and

(b) establish the extent to which haying or grazing may occur because of the emergency without the riparian land becoming ineligible for the tax reduction for which it would otherwise have been eligible.

Basic tax reduction: eligible former crop land

25.6(1)     Subject to subsection (4) and section 25.7, the basic tax reduction for a benefit period for riparian land that is eligible former crop land throughout the period is, for the entire period, $100 times the number of acres of that type of land.

Basic tax reduction: eligible former grazing area

25.6(2)     Subject to subsection (4) and section 25.7, the basic tax reduction for a benefit period for riparian land that is an eligible former grazing area throughout the period is, for the entire period, the following amount times the number of acres of that type of land:

(a) $140, if throughout the period it is not used for any agricultural activity; or

(b) $100, if throughout the period it is not used for any agricultural activity other than haying.

Partial acre

25.6(3)     The basic tax reduction under subsection (1) or (2) may be prorated for a partial acre if it is contiguous to other riparian land comprising at least one acre.

Maximum tax reduction

25.6(4)     The total of the basic tax reductions provided to a taxpayer under subsections (1) and (2) in relation to a benefit period must not exceed six times the property tax assessed on the taxpayer's Farm Property for the last year before the beginning of the benefit period.

Additional tax reduction for off-site watering facility

25.6(5)     Subject to subsection (6), a taxpayer with an off-site watering facility is eligible for an additional tax reduction equal to the lesser of $1,000 and his or her total basic tax reduction under subsection (2) for all eligible former grazing areas near the grazing areas serviced by the facility.

Limitation on tax reductions for off-site watering facilities

25.6(6)     Subject to subsection (7), a taxpayer who claims a tax reduction under subsection (5) for an off-site watering facility is not eligible for a tax reduction for any other off-site watering facility except with the approval of the minister.  The minister may approve a tax reduction for an additional off-site watering facility if the taxpayer satisfies the minister that

(a) the areas where livestock are grazing near one or more eligible former grazing areas are not contiguous; and

(b) it would not be practicable for the livestock grazing in those areas to be serviced by the same off-site watering facility.

Eligible former grazing area divided by waterway

25.6(7)     If an eligible former grazing area includes riparian land on opposite banks of a waterway and the taxpayer has separate off-site watering facilities for livestock grazing on opposite sides of the waterway, the riparian land on each bank is to be considered a separate eligible former grazing area and the taxpayer is eligible for an additional tax reduction under subsection (5) in respect of each of those facilities.  The reduction for each facility is to be calculated with reference only to the eligible former grazing area on its side of the waterway.

Additional tax reduction for sloped riparian land

25.6(8)     If riparian land that is eligible for a basic tax reduction under subsection (1) or (2) has an average natural slope toward the waterway of at least 10%, as determined by the minister, it is eligible for an additional tax reduction equal to 30% of the basic tax reduction.

No doubling up on tax reductions for same land

25.7        Riparian land is not eligible for a tax reduction for a benefit period that includes any year in respect of which a tax reduction is provided for that land

(a) by a riparian property tax reduction regulation under Part V.1; or

(b) under this Part for another benefit period.

Payment of tax reduction in instalments

25.8(1)     If the minister is satisfied that a taxpayer's land will be eligible for a tax reduction if the taxpayer fulfills the undertaking set out in the application, the minister may advance the amount of the tax reduction to the taxpayer in five equal annual instalments. The advance for each year is to be paid only after the taxpayer has paid the taxes for the immediately preceding year.

No instalment if taxes paid after June of fifth year

25.8(2)     No instalment of a tax reduction is payable for any year of a benefit period if the property taxes for the immediately preceding year are not paid before June 30 of the last year of the benefit period.

Recovery of tax reduction

25.8(3)     If a taxpayer who has received a tax reduction in respect of riparian land fails for any reason — other than the death of the taxpayer or a sale of the land to a purchaser dealing at arm's length with the taxpayer — to fulfill the undertaking in his or her application for the tax reduction to keep the land eligible for the tax reduction throughout the benefit period,

(a) the taxpayer must notify the minister in writing of that failure; and

(b) the minister may demand repayment of all or any part of the tax reduction.

The amount demanded to be repaid is a debt due to the government.

Interest payable

25.8(4)     If a person fails to pay an amount payable under subsection (3) when it is due, 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, from the date of the minister's demand to the date of payment.

Transfer of ownership

25.9(1)     A taxpayer whose application for a tax reduction in respect of riparian land for a benefit period has been approved and who ceases to own all or any part of the land before the end of the benefit period must notify the minister in writing of the transfer of ownership.

Notice requirements

25.9(2)     The notice of the transfer must

(a) identify the transferred land and state the date of the transfer;

(b) state the name and address of the new owner;

(c) indicate whether the new owner has undertaken to fulfill the taxpayer's undertaking to keep the land eligible for the tax reduction to the end of the benefit period; and

(d) be filed with the minister within 14 days after the date of the transfer.

Repayment of tax reduction

25.9(3)     If the new owner has not undertaken to fulfill the taxpayer's undertaking, the taxpayer must repay to the minister, when filing the notice, the proportion of the tax reduction advanced to the taxpayer for the year of the transfer that the number of months in the year after the transfer is of 12.

Audit and inspection

25.10(1)    For the purpose of administering and enforcing this Part, a person authorized by the minister for the purposes of this section may at any time

(a) by written notice to a taxpayer who has applied for or received a tax reduction, require the taxpayer to provide

(i) any information or record that will enable the minister to verify the taxpayer's eligibility for the tax reduction, or

(ii) any other information that is relevant to the administration or enforcement of this Part;

(b) audit, examine and take copies of records of a taxpayer who has applied for or received a tax reduction; and

(c) enter on, inspect, and take photographs of land in respect of which a tax reduction has been applied for or received.

Time for providing information

25.10(2)    A taxpayer who has received a notice under clause (1)(a) must provide the information or record required by the notice within the time specified in the notice, or within any additional time allowed by the minister.

Reimbursement

25.11       The Minister of Finance must ensure that each municipality and local government district is reimbursed out of the Consolidated Fund for the tax reductions made by it under this Part.

Regulations

25.12       The Lieutenant Governor in Council may make regulations

(a) respecting the application process for a tax reduction under this Part;

(b) requiring persons to provide information necessary to support a claim for a tax reduction under this Part;

(c) providing authority to investigate, inspect or audit any matter pertaining to a person's claim for a tax reduction under this Part;

(d) establishing a process to deal with objections or complaints;

(e) respecting the reimbursement of municipalities and local government districts under section 25.11;

(f) respecting any matter the Lieutenant Governor in Council considers necessary or advisable for the purposes of this Part.

PART 8

THE RETAIL SALES TAX ACT

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

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

46          Subsection 1(1) is amended

(a) in clause (b) of the English version of the definition "consumption", by striking out "him" and substituting "the purchaser";

(b) in clause (b) of the English version of the definition "fair value", by striking out "him" and substituting "the person";

(c) by replacing the definition "off-road vehicle" with the following:

"off-road vehicle" means, except in section 2.2,

(a) a mini-bike, dirt-bike or trail-bike, or

(b) a snowmobile or all-terrain vehicle as defined in The Off-Road Vehicles Act; (« véhicule à caractère non routier »)

(d) in the definition "purchase", by striking out "(4.1),";

(e) in clause (b) of the English version of the definition ""purchase price" or "sale price"", by striking out "him" and substituting "the purchaser"; and

(f) in the definition "sale",

(i) in clause (e) of the English version, by striking out "him" and substituting "the purchaser", and

(ii) in clause (i), by striking out "and" at the end of subclause (i) and adding the following after subclause (ii):

(iii) a gift by a charitable organization of property received by it as a gift described in subclause (ii), and

47(1)       Subsection 2(4.1) is repealed.

47(2)       Clause 2(5.3)(a) is amended by striking out "5(4)" and substituting "(5.4)".

47(3)       The part of subsection 2(8) after clause (b) is amended by striking out "but, if the minister is satisfied upon evidence submitted to him" and substituting "but if the person satisfies the minister".

47(4)       Subsection 2(18) is repealed.

48          Section 2.2 is replaced with the following:

Definitions

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

"average wholesale price", in relation to a motor vehicle other than a motorcycle, means

(a) the average wholesale price for such a vehicle determined in a manner authorized by the minister; or

(b) the purchase price of the vehicle, if the minister has not authorized a manner of determining the average wholesale price for such a vehicle. (« prix de gros moyen »)

"current resale value", in relation to a motorcycle or off-road vehicle, means

(a) the current resale value for such a vehicle determined in a manner authorized by the minister; or

(b) the purchase price of the vehicle, if the minister has not authorized a manner of determining the current resale value for such a vehicle. (« valeur de revente actuelle »)

"in approved form" means in a form approved by the minister or the director. (« formule approuvée »)

"market value"of a motor vehicle or off-road vehicle means the greater of its purchase price and its appraised value as set out in an appraisal report that is

(a) prepared and certified, in approved form, by a vehicle dealer who regularly deals in that type of vehicle or by an employee of an appraisal firm who is qualified to appraise that type of vehicle; and

(b) provided by the purchaser to MPI or the MPI agent registering the vehicle. (« valeur marchande »)

"motor vehicle" means a motor vehicle as defined in The Highway Traffic Act that is required to be registered under The Drivers and Vehicles Act. (« véhicule automobile »)

"MPI" means The Manitoba Public Insurance Corporation. (« SAP »)

"off-road vehicle" means an off-road vehicle, as defined in subsection 1(1), that is required to be registered under The Drivers and Vehicles Act. (« véhicule à caractère non routier »)

"vehicle dealer" means a person with an RST number who

(a) is an off-road vehicle dealer as defined in section 69 of The Drivers and Vehicles Act; or

(b) is a dealer as defined in The Drivers and Vehicles Act and holds a valid dealer permit issued under Part 7 of that Act. (« commerçant de véhicules »)

Application

2.2(2)      This section applies to the purchase or other acquisition of a motor vehicle or off-road vehicle, but only if tax in respect of the purchase or other acquisition has not been paid to a vehicle dealer.

Tax payable to MPI or agent at time of registration

2.2(3)      The tax payable in respect of the purchase or other acquisition of the motor vehicle or off-road vehicle is payable, at the time of registration of the vehicle, to MPI or to the MPI agent registering the vehicle.

Duties of MPI

2.2(4)      MPI must

(a) ensure that the tax payable to it or to its agent under this section is collected; and

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

Fair value for computing tax payable

2.2(5)      For the purpose of subsection 2(1) (tax on fair value),

(a) the fair value of a motor vehicle, other than a motorcycle, is its purchase price unless it has an average wholesale price of $1,000 or more, in which case the fair value is

(i) the greater of its purchase price and its average wholesale price, or

(ii) its market value, if MPI or its agent is satisfied, based on the appraisal report provided by the purchaser, that its market value is less than its average wholesale price because of severe damage or excessive use; and

(b) the fair value of a motorcycle or off-road vehicle is its purchase price unless it has a current resale value of $1,000 or more, in which case the fair value is

(i) the greater of its purchase price and its current resale value, or

(ii) its market value, if MPI or its agent is satisfied, based on the appraisal report provided by the purchaser, that its market value is less than its current resale value because of severe damage or excessive use.

Claiming a tax exemption

2.2(6)      To claim an exemption under clause 3(1)(y) or any of subsections 3(18) to (18.5) from the tax payable at the time of registering a motor vehicle or off-road vehicle, the purchaser must provide to MPI or an MPI agent, at the time of registration,

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

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

Claiming vehicle not acquired on a sale

2.2(7)      A person claiming that no tax is payable at the time of registering a motor vehicle or off-road vehicle because it was not acquired by the person by way of a sale as defined in subsection 1(1) must provide to MPI or an MPI agent, at the time of registration,

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

(b) any other information that the director requires MPI or its agent to obtain from the person in support of the claim.

Diplomat with RST number

2.2(8)      An official to whom an RST number has been issued under subsection 5(6) may present the RST number to MPI or an MPI agent and register a motor vehicle or off-road vehicle without paying tax under this Act.

Tax reduction for motor vehicle

2.2(9)       If the purchaser who is registering a motor vehicle sold another motor vehicle within six months of purchasing the one being registered, MPI or the MPI agent registering the purchased vehicle may, at the time of registration, reduce the tax otherwise payable to it in respect of the purchased vehicle by the amount equal to the least of

(a) the tax otherwise payable on the purchased vehicle;

(b) the tax paid by the person on the sold vehicle; and

(c) 7% of the sale price of the sold vehicle;

but only if neither the tax on the purchased vehicle nor the tax on the sold vehicle is subject to proration under this Act based on the use of the vehicle for interjurisdictional commercial purposes.

Rules for subsection (9)

2.2(10)     For the purpose of subsection (9),

(a) the sold vehicle is considered to have been sold on the date that title to that vehicle was transferred to the buyer of that vehicle, and the purchased vehicle is considered to have been purchased on the date that title to that vehicle was transferred to the purchaser;

(b) "purchasing", "purchased" and "sold" do not include "leasing" or "leased";

(c) if the sold vehicle was acquired by the purchaser referred to in subsection (9) with a trade-in or exempt from tax (otherwise than by way of a gift from a family member of the purchaser within one year before it was sold), the tax paid on the sold vehicle is deemed to be the tax that would have been payable if it had been acquired without the trade-in and the acquisition had not been exempt from tax; and

(d) "sale price of the sold vehicle" means

(i) in the case of a motor vehicle other than a motorcycle, its average wholesale price when it was sold, if that amount is greater than the actual selling price and the person selling the vehicle, at the time that he or she purchased it, paid tax on its average wholesale price in accordance with this section, and

(ii) in the case of a motorcycle, its current resale value when it was sold, if that amount is greater than the actual selling price and the person selling the motorcycle, at the time that he or she purchased it, paid tax on its current resale value in accordance with this section.

49(1)       Clause 3(1)(h) is replaced with the following:

(h) equipment, other than a vehicle or off-road vehicle, that is designed solely for use by blind or physically disabled persons or chronic invalids;

49(2)       Subclause 3(1)(w.1)(v) is replaced with the following:

(v) items, other than machinery and equipment, that

(A) are consumed exclusively in manufacturing printed materials, and

(B) in the printing process, come into direct contact with the ink or other material that prints or with the paper or other material being printed upon,

49(3)       Subsection 3(1) is amended by adding the following after clause (xx):

(xx.1) the following items when purchased for use by the purchaser in mining or processing minerals for sale as a mineral product:

(i) anode bags, bearing centres and side strips for anodes and cathodes, cathode boxes, spacers used on electrolytic tanks, refinery bus bars for electrolytic tanks, and mother sheets,

(ii) the apex, vortex and liner used in a cyclone,

(iii) blast hole liners,

(iv) carbon electrodes and related casings and rings for furnaces, cottrell rods, dross rakes, furnace pokers, ladle lips, lancing pipe, roaster rabbles and tuyere pipes and punchers,

(v) clay and lubricants used as matt plugs,

(vi) crusher jaws, crusher plates, crusher liners, crusher mantels, grizzly decks, jeffry crusher hammers used in the separation of ore,

(vii) flotation rotors and stators, launder liners and launder tips,

(viii) lifter bars used in rod mills,

(ix) reagents used in processing,

(x) rockbolts, resins, resin retainers, expansion shells, shotcrete, wiremesh, washers, rockbolt straps, and wire rope for rockbolting,

(xi) spray paint used in outlining the ore body,

(xii) timber, burlap, polyethylene, sand and cement used within a mine;

49(4)       Clause 3(1)(zz) is amended by striking out "sand or gravel" and substituting "sand, gravel or shredded tires".

49(5)       The following is added after subsection 3(2.1):

Meaning of "mine", etc.

3(2.2)      For the purpose of clause (1)(xx.1), "mine", "mining", "processing" and "mineral product" have the same meaning as in The Mining Tax Act.

49(6)       Clause 3(18.2)(b) is replaced with the following:

(b) for at least six months after those shares are issued,

(i) no amount is paid or payable to the seller as a return of capital on those shares, and

(ii) the shares remain the property of

(A) the seller, or

(B) if the seller is a partnership and is wound up within the six-month period, the former partners to whom the shares were distributed on the winding-up in proportion to their partnership interests; and

50(1)       Subsection 4(1) is amended

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

(iii) in respect of a telecommunication that ends within the province on a transmitter that is ordinarily situated in the province, if the service is invoiced with respect to that transmitter,

(iii.1) in respect of a telecommunication that begins or ends within the province if

(A) the telecommunication is made from a transmitter that is ordinarily situated in the province, and

(B) the service is invoiced with respect to that transmitter,

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

(j) a tanning service that uses a device to produce ultraviolet radiation.

50(2)       The definition "telecommunication service" in subsection 4(3) is replaced with the following:

"telecommunication service" means

(a) sending or receiving a telecommunication,

(b) a right, whether exercised or not, to send or receive a telecommunication, and

(c) a dedicated telecommunication service; (« service de télécommunications »)

50(3)       Subsection 4(8) is amended in the part before clause (a) by striking out "clause (1)(d) or (h)" and substituting "clause (1)(d), (e) or (h) or subclause (1)(i)(iv)".

51(1)       Subsection 9(2.3) is amended

(a) in the section heading, by striking out "home-based"; and

(b) by adding "and" at the end of clause (a), striking out "and" at the end of clause (b) and repealing clause (c).

51(2)       Subsection 9(6) is amended by striking out "any commission to which he may be entitled under this Act from the amount otherwise to be remitted by him" and substituting "the amount of the commission from the amount otherwise required to be remitted by the vendor".

51(3)       Subsection 9(7) of the English version is amended by adding "or her" after "his".

52(1)       Clauses 26(2)(c) and (d) of the English version are amended by striking out "he" and substituting "the person".

52(2)       Subsection 26(4) is amended

(a) in the section heading and in the part before clause (a), by adding "motor" before "vehicle" wherever it occurs; and

(b) repealing the part after clause (b).

52(3)       Subsections 26(5), (6) and (7) are repealed.

52(4)       The following is added after subsection 26(8):

Definitions for subsections (4) and (8)

26(8.1)     In this subsection and subsections (4) and (8),

(a) "average wholesale price", "current resale value" and "motor vehicle" have the same meaning as in section 2.2; and

(b) "sale price of the vehicle sold" means

(i) in the case of a motor vehicle other than a motorcycle, its average wholesale price when it was sold, if that amount is greater than the actual selling price and the person selling the vehicle, at the time that he or she purchased it, paid tax on its average wholesale price in accordance with section 2.2, and

(ii) in the case of a motorcycle or off-road vehicle, its current resale value when it was sold, if that amount is greater than the actual selling price and the person selling the vehicle, at the time that he or she purchased it, paid tax on its current resale value in accordance with section 2.2.

PART 9

THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT

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

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

54          The definition "tax Act" in subsection 1(1) is amended by adding the following after clause (a):

(a.1) The Credit Unions and Caisses Populaires Profits Tax Act;

55          Section 11 is replaced with the following:

Return of tax authorization

11(1)       If an order under section 10 cancelling or suspending a tax authorization requires the tax authorization to be returned to the director, the holder of it must immediately return it to the director, along with any additional copies of it in the holder's possession.

Return of carrier decals

11(2)       When a carrier licence is cancelled by the director, the holder of it must immediately return to the director all unexpired carrier decals that were issued in connection with the licence.

56          The following is added after section 18:

Suppression software

18.1        No person shall possess, use, sell or offer to sell, update, upgrade or maintain software that is designed for, or is capable of,

(a) suppressing the creation of electronic records of sale transactions that a taxpayer is required to keep under this Act; or

(b) modifying, hiding, or deleting such records without keeping the original data and providing a ready means of access to them.

57(1)       Subsection 25(2) is amended

(a) in the part before clause (a), by striking out "examine its fuel and take a sample of it" and substituting "examine and take a sample of the fuel in the vehicle's fuel tank or in any container or receptacle on or attached to the vehicle or a trailer attached to the vehicle"; and

(b) by striking out the sentence after clause (c).

57(2)       The following is added after subsection 25(2):

Operator to cooperate

25(2.1)     When a tax officer signals or requests the operator to stop the vehicle under subsection (2), the operator must

(a) immediately bring the vehicle to a safe stop;

(b) immediately provide access to the fuel tank of the vehicle and, at the officer's request, to any container or receptacle on or attached to the vehicle or a trailer attached to the vehicle where the officer reasonably believes that marked fuel might be located; and

(c) permit the officer to examine the fuel in any such tank, container or receptacle and take samples of that fuel.

58          The following is added after section 25 and before the centred heading that follows it:

Faulty dye injector pump

25.1        If the director, based on an inspection by the director or a tax officer, reasonably believes that the use of a faulty dye injector pump on a truck or at a cardlock or bulk storage facility has resulted in the sale of unmarked fuel as marked fuel, the director may, by written order, prohibit the owner or operator of the truck or facility from using the pump for the sale or delivery of marked fuel until the person satisfies the director that it is not faulty.

59(1)       Subsection 39(2) of the French version is amended by striking out "taxe d'exigibilité" and substituting "date d'exigibilité".

59(2)       Subsection 39(4) 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) section 25.1 (faulty dye injector pump);

60(1)       Subsection 53(1) is amended by striking out "and" after clause (a), adding "and" after clause (b) and adding the following after clause (b):

(c) the application is accompanied by evidence sufficient to satisfy the director that the person is entitled to the refund.

60(2)       Subsection 53(2) is amended by striking out "and" after clause (a), adding "and" after clause (b) and adding the following after clause (b):

(c) the application is accompanied by evidence sufficient to satisfy the director that the collector or deputy collector is entitled to the refund.

61(1)       Subsection 75(2) is amended by striking out "or" at the end of clause (c) and replacing clause (d) with the following:

(d) fails to return a tax authorization or carrier decal to the director as required by section 11; or

(e) uses or attempts to use a tax authorization that has expired or been cancelled or suspended for any purpose for which it could be used if it were still valid.

61(2)       Subsection 75(5) is amended in the part after clause (b) by striking out "failed to remit" and substituting "failed to pay or remit".

61(3)       The following is added after subsection 75(5):

Additional order to comply with agreement

75(5.1)     A justice who finds a person guilty of an offence under clause (2)(c) (failure to comply with agreement) must, in addition to imposing a penalty under subsection (4), order the person

(a) to provide the information that he or she failed to provide; or

(b) to file the reports or information returns that he or she failed to file;

and, if the person failed to pay or remit any tax as required by the agreement, to pay or remit that amount and any penalties and interest that the person failed to pay or remit.

62          Subsection 76(2) 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) possesses, uses, sells or offers to sell software described in section 18.1.

63(1)       Subsection 77(1) is amended by adding the following after clause (e):

(e.1) sells unmarked fuel as marked fuel;

(e.2) fails to comply with an order of the director made under section 25.1 (faulty dye injector pump);

63(2)       Clause 77(2)(b) is replaced with the following:

(b) fails to return carrier decals when required to do so by subsection 11(2).

64          Subsection 80(2) is amended

(a) in clause (d), by striking out "section 3.2" and substituting "subsection 3.2(1)"; and

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

(d.1) sells or offers to sell cigarettes individually or in packages of fewer than 20 cigarettes contrary to subsection 3.2(2) of The Tobacco Tax Act;

65          Subsection 113(2) is amended by adding the following after clause (a):

(a.1) the transferor is a registered charity as defined in subsection 248(1) of the Income Tax Act (Canada) and the transferee is a non-profit corporation that, at the time that the transfer is submitted for registration, is controlled by the transferor;

PART 10

THE TOBACCO TAX ACT

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

66          The Tobacco Tax Act is amended by this Part.

67          Subsection 1(1) is amended

(a) by replacing the definition "deputy collector" with the following:

"deputy collector" means a person appointed under subsection 9(11) as a deputy collector or deemed by subsection 9(12) to be a deputy collector; (« collecteur adjoint »)

(b) in the definition "purchaser", by replacing everything after clause (b) 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;

68(1)       Subsection 2(1) is amended

(a) in clause (a), by striking out "18.5¢" and substituting "20.5¢";

(b) in clause (c), by striking out "16¢" and substituting "18¢"; and

(c) in clause (d), by striking out "17.5¢" and substituting "19.5¢".

68(2)       Subsection 2(2) is replaced with the following:

Tax payable when tobacco received

2(2)        A purchaser who acquires tobacco from a dealer must pay the tax to the dealer at the time of receiving the tobacco.

69          Section 3.2 is renumbered as subsection 3.2(1) and the following is added as subsection 3.2(2):

Sale of fewer than 20 cigarettes

3.2(2)      No person shall sell or offer to sell cigarettes individually or in packages of fewer than 20 cigarettes.

70          Subsections 4(1) and (2) of the English version are amended by striking out "he is the holder of" and substituting "the person holds".

71(1)       Subsection 9(11) of the English version is amended

(a) by striking out "to be his deputy collector" and substituting "as a deputy collector for the collector"; and

(b) by striking out "he" and substituting "the collector".

71(2)       Subsection 9(12) is replaced with the following:

Dealer deemed to be deputy collector

9(12)       A dealer who is not a collector

(a) is deemed to be a deputy collector of every collector who sells or delivers tobacco to the dealer; and

(b) must perform the duties of a deputy collector under this Act and the regulations.

72          Section 10 is replaced with the following:

Duty of collector

10(1)       A collector must collect

(a) from each purchaser of tobacco from the collector, the tax payable by the purchaser in respect of that tobacco; and

(b) from each deputy collector of the collector, the tax proceeds collected or deemed to have been collected by the deputy collector in respect of tobacco sold or delivered by the collector to the deputy collector.

Duty of deputy collector

10(2)       A deputy collector must

(a) collect the tax payable by a purchaser on a sale of tobacco by the deputy collector to the purchaser; and

(b) remit to the collector who sold or delivered the tobacco to the deputy collector, on account of the tax collected or to be collected on the sale to the purchaser, an amount equal to that tax.

Tax deemed to have been collected

10(3)       A collector or deputy collector who fails to collect any amount that he or she is required to collect is deemed for the purposes of this Act to have collected that amount.

Effect of rate change

10(4)       The minister may require a dealer who possesses tobacco for sale at the time of a change in the rate of tax

(a) to report to the minister in accordance with the regulations; and

(b) to remit to the minister in accordance with the regulations the tax collected or to be collected on sales of that tobacco in excess of the amounts remitted by the dealer to a collector on account of the tax on those sales.

Collector to remit tax

10(5)       A collector must

(a) prepare and file returns with the minister in accordance with the regulations; and

(b) remit to the minister in accordance with the regulations the amounts collected or deemed to have been collected as or on account of the tax payable in respect of the following:

(i) sales of tobacco by the collector,

(ii) sales, by a deputy collector, of tobacco supplied by the collector to the deputy collector.

73          Subsection 11(1) is repealed.

74(1)       Subsection 13(2) of the English version is amended by striking out "by him" and substituting "by the collector".

74(2)       Subsection 13(6) is repealed.

75          The following is added after section 13:

Refund — loss of tobacco inventory

13.1        The minister may refund to the holder of a valid retail dealer's licence an amount paid or remitted by the dealer on account of the tax that the dealer

(a) expected to collect from purchasers of tobacco products; and

(b) could not collect because of a loss of the tobacco products as a result of a fire, theft or any similar cause;

if

(c) the dealer applies for the refund within two years after the date of loss of the tobacco products; and

(d) the application is accompanied by evidence sufficient to satisfy the minister that the amount was paid by the dealer and that the loss occurred.

PART 11

COMING INTO FORCE

Coming into force

76(1)       Except as otherwise provided in this section, this Act comes into force on the day it receives royal assent.

Part 1: Fiscal Management

76(2)       Section 2 is deemed to have come into force on March 27, 2010.

Part 2: The Corporation Capital Tax Act

76(3)       Sections 5 and 7 are deemed to have come into force on July 1, 2008.

Part 4: Fuel Taxes

76(4)       The Fuel Tax Act enacted by section 11 comes into force on April 1, 2011.

Part 5: The Income Tax Act

76(5)       Section 13 comes into force on January 1, 2011.

76(6)       Section 14 is deemed to have come into force on January 1, 2010.

76(7)       Section 17 is deemed to have come into force on January 1, 2008.

76(8)       Section 20 is deemed to have come into force on April 1, 2010.

76(9)       For any project for which a tax credit certificate is issued under section 10.5 of The Income Tax Act (interactive digital media tax credit) on or after March 24, 2010, section 27 of this Act is deemed to have come into force on that date.

76(10)      Subsection 33(1) is deemed to have come into force on January 1, 1992.

Part 7: The Property Tax and Insulation Assistance Act

76(11)      Section 44 is deemed to have come into force on January 1, 2010.

Part 8: The Retail Sales Tax Act

76(12)      Clauses 46(c) and (d), subsections 47(1) and (4), section 48 and subsections 52(2) to (4) are deemed to have come into force on June 1, 2010.

76(13)      Subsection 49(1) is deemed to have come into force on January 1, 2008.

76(14)      Subsections 49(3), (4) and (5) are deemed to have come into force on April 1, 2010.

76(15)      Clause 50(1)(b) comes into force on July 1, 2010.

76(16)      Subsection 51(1) is deemed to have come into force on March 23, 2010.

Part 9: The Tax Administration and Miscellaneous Taxes Act

76(17)      Section 65 is deemed to have come into force on June 1, 2010.

Part 10: The Tobacco Tax Act

76(18)      Subsection 68(1) is deemed to have come into force on March 24, 2010.

SCHEDULE A

THE CREDIT UNIONS AND CAISSES POPULAIRES PROFITS TAX ACT

TABLE OF CONTENTS

Section

1

Definitions

2

Administration and enforcement

3

Imposition of tax

4

Credit union to file return and pay tax

5

Regulations

6

C.C.S.M. reference

7

Coming into force

THE CREDIT UNIONS AND CAISSES POPULAIRES PROFITS TAX ACT

Definitions

1(1)        The following definitions apply in this Act.

"credit union" means a corporation, association or federation that would be a credit union as defined in subsection 137(6) of the Income Tax Act (Canada) if that definition were read without reference to paragraphs (b) and (c).  It includes a credit union and a caisse populaire under The Credit Unions and Caisses Populaires Act, but does not include a central or guarantee corporation as defined in that Act or any other organization that is similar to a central or guarantee corporation and is established under the laws of Canada or of another province or territory of Canada. (« caisse populaire »)

"director" means the Deputy Minister of Finance or an Assistant Deputy Minister of Finance. (« directeur »)

"Manitoba taxable income" of a credit union for a taxation year means its taxable income earned in that taxation year in Manitoba as determined under the Income Tax Act (Canada) and the regulations under that Act. (« revenu imposable gagné au Manitoba »)

"minister" means the Minister of Finance. (« ministre »)

"taxation year" of a credit union means its taxation year for the purposes of the Income Tax Act (Canada). (« année d'imposition »)

Meaning of "associated"

1(2)        For the purpose of this Act, two or more credit unions are associated with each other whenever they are associated with each other under section 256 of the Income Tax Act (Canada).

Administration and enforcement

2           Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act.

Imposition of tax

3(1)        For each taxation year ending after 2010, a credit union must pay to the government a tax equal to the amount determined by the following formula:

tax = 1% × (I − (R × D/365)) − T

In this formula,

I

is the credit union's Manitoba taxable income for the taxation year;

R

is a reduction equal to

(a) $400,000, unless the credit union is associated with another credit union at any time in the taxation year,

(b) nil, if the credit union is associated with one or more other credit unions at any time in the taxation year and no agreement under subsection (2) has been filed for the credit union for the taxation year, or

(c) subject to subsection (3), the amount allocated to the credit union in an agreement filed under subsection (2) for the taxation year;

D

is 365 or the number of the days in the taxation year during which the credit union has a permanent establishment in Manitoba, whichever is less;

T

is the credit union's tax payable under The Income Tax Act for the taxation year, after deducting any tax credits claimed by the credit union.

Allocation agreement among associated credit unions

3(2)        Two or more credit unions that are associated with each other at any time may file with the director an agreement, in a form acceptable to the director, under which the amount of $400,000 is allocated among them for the taxation years that include that time.  The total of the amounts so allocated for those taxation years must not exceed $400,000.

Allocations under multiple agreements

3(3)        If

(a) a credit union is associated with different credit unions within the same taxation year; and

(b) different amounts are allocated to the credit union for that taxation year under two or more agreements;

the amount allocated to it for the taxation year is deemed to be the least of those amounts.

No tax less than $1

3(4)        If the tax payable under subsection (1) for a taxation year is less than $1, the tax payable is deemed to be nil.

Transitional — taxation year beginning in 2010

3(5)        For a taxation year beginning in 2010, the amount of tax, if any, determined by the formula in subsection (1) is to be reduced to the proportion of that amount that

(a) the number of the days in the taxation year that occur after 2010 and during which the credit union has a permanent establishment in Manitoba;

is of

(b) 365 or the number of the days in the taxation year during which the credit union has a permanent establishment in Manitoba, whichever is less.

Credit union to file return and pay tax

4(1)        On or before the date by which a credit union is required to file its return of income under Part I of the Income Tax Act (Canada) for a taxation year, the credit union must

(a) complete an information return, in a form approved by the director, that includes the following information:

(i) the credit union's calculation of the tax payable for the taxation year,

(ii) if the credit union commenced or ceased to have a permanent establishment in Manitoba in the taxation year, the date of that event,

(iii) any other information stipulated by the form or required by the regulations;

(b) file the completed information return with the director, together with a copy of the credit union's return of income under Part I of the Income Tax Act (Canada) for that taxation year; and

(c) pay the tax, if any, payable under section 3 for the taxation year.

Exception

4(2)        Subsection (1) does not apply to a credit union for a taxation year in which it has not had a permanent establishment in Manitoba.

Regulations

5(1)        The Lieutenant Governor in Council may make regulations

(a) prescribing information to be included in information returns to be filed under section 4;

(b) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the purpose of this Act.

Retroactive effect

5(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.

C.C.S.M. reference

6           This Act may be referred to as chapter C302 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

7           This Act comes into force on the day it receives royal assent.

SCHEDULE B

THE FUEL TAX ACT

TABLE OF CONTENTS

Section

DEFINITIONS AND GENERAL MATTERS

1

Definitions

2

Administration and enforcement

3

Tax payable to government

4

Act binds the Crown

IMPOSITION OF TAX

5

Tax on retail purchase, etc.

6

Tax on interjurisdictional use

7

Tax on locomotive fuel

8 Rates of tax

TAX EXEMPTIONS

9

Exemptions — fuel used for certain purposes or not bought in Manitoba

10

Exemption — fuel not delivered into buyer's container

11

Exemption — fuel used in international shipping

12

Exemption — 1-K Kerosene

TAX REFUNDS

13

Tax refunds

14

Refund application

RESTRICTIONS

15

Possession of bulk fuel

16

Use and marking of marked fuel

LICENCES AND PERMITS

17

Dealer licence required

18

No sale to unlicensed dealer

19

Refiner licence required

20

Authority to blend fuel

COLLECTORS AND DEPUTY COLLECTORS

21

When is a dealer a collector or deputy collector?

22

Duties of collectors and deputy collectors

INTERNATIONAL FUEL TAX AGREEMENT

23

Definitions

24

Entering into IFTA

25 Conflict with IFTA

26

Carrier licence and decals

27

Licence and decal obligations of operators and owners

28

Tax returns and remittances

29

Tax refunds

30

Payments to member jurisdictions

REGULATIONS

31

Regulations

TRANSITIONAL PROVISIONS

32

Transitional — licences, permits and decals

CONSEQUENTIAL AMENDMENTS

33-34

C.C.S.M. c. B40 amended

35

C.C.S.M. c. C107 amended

36

C.C.S.M. c. F55 amended

37

C.C.S.M. c. M265 amended

38

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

39

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

REPEALS, C.C.S.M. REFERENCE AND COMING INTO FORCE

40

Repeal

41

C.C.S.M. reference

42

Coming into force

THE FUEL TAX ACT

DEFINITIONS AND GENERAL MATTERS

Definitions

1           The following definitions apply in this Act.

"applicable rate" means the applicable rate of tax under section 8. (« taux applicable »)

"aviation fuel" means any fuel, such as aviation gas or jet fuel, that has been refined or produced specifically for use in an aircraft engine. (« carburant aviation »)

"bulk fuel" means more than 200 litres of fuel that is not stored in a fuel tank of a vehicle or other machine as part of the fuel system of that vehicle or machine. (« carburant en vrac »)

"bunker fuel" means a residual fuel oil that when used for heating requires or would ordinarily require preheating. (« mazout »)

"collector" means a person described in subsection 21(1). (« collecteur »)

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

"dealer" means a person who, in Manitoba, sells or offers to sell fuel, or keeps fuel for sale in the course of the person's business. (« marchand »)

"deputy collector" means a person described in subsection 21(2). (« collecteur adjoint »)

"director" means the Deputy Minister of Finance or an Assistant Deputy Minister of Finance. (« directeur »)

"farm building" means a building used by a person, in the course of farming, exclusively for one or more of the following purposes:

(a) raising or keeping livestock for sale or for the sale of livestock products;

(b) growing crops — or storing crops grown by the person — for sale or for use as feed for livestock being raised or kept by the person for sale or for the sale of livestock products. (« bâtiment agricole »)

"fuel" means any combustible gas or combustible liquid that can be used to generate power by means of an internal combustion or turbine engine, or for heating, and includes additives to that fuel. (« carburant »)

"international cargo" means cargo that is

(a) loaded onto a ship or aircraft at a port or airport outside Canada and unloaded from the ship or aircraft at a port or airport in Manitoba; or

(b) loaded onto a ship or aircraft at a port or airport in Manitoba and unloaded from the ship or aircraft at a port or airport outside Canada. (« cargaison internationale »)

"international cargo flight" means a commercial cargo flight carrying international cargo. (« vol international de transport de cargaison »)

"international shipping voyage" means a voyage by an international ocean-going ship carrying international cargo. (« trajet maritime international »)

"litre" means a litre of fuel that has been volume adjusted to a temperature of 15 degrees C. (« litre »)

"marked fuel" means fuel that is dyed or otherwise marked in accordance with the regulations. (« carburant marqué »)

"minister" means the Minister of Finance. (« ministre »)

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

"person" includes a partnership, a trust and the Crown in right of Manitoba. (« personne »)

"refiner" means a person who manufactures or refines fuel for sale. (« raffineur »)

"regulations" means regulations made under this Act. (« règlements »)

"retail purchase" of fuel means a purchase of fuel for any use or purpose except sale or resale, and "retail sale" means the corresponding sale of that fuel. (« achat au détail »)

"tax" means a tax imposed under this Act, unless the context requires a different meaning. (« taxe »)

"taxpayer" means a person on whom a tax is imposed. (« contribuable »)

"tax proceeds" means money collected or required to be collected on account of or as proceeds of tax. (« produit de la taxe »)

Administration and enforcement

2           Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act.

Tax payable to the government

3           Every tax imposed by this Act is payable to the government.

Act binds the Crown

4           This Act binds the Crown.

IMPOSITION OF TAX

Tax on retail purchase

5(1)        Subject to section 7 (tax on locomotive fuel) and the exemptions in sections 9 to 12, a person who buys fuel at a retail sale in Manitoba

(a) must pay tax on that fuel at the applicable rate; and

(b) must pay the tax at the time of receiving the fuel.

Tax in other circumstances

5(2)        Subject to the exemptions in sections 9 to 12, a person who, for any purpose other than sale or resale,

(a) refines fuel in Manitoba;

(b) brings bulk fuel into Manitoba; or

(c) receives in Manitoba fuel that was bought at a retail sale outside of Manitoba;

must, in accordance with the regulations, report to the director and pay tax on that fuel at the applicable rate.

Tax on fuel imported for sale

5(3)        A person who

(a) brings fuel into Manitoba for sale or resale; and

(b) is not a collector or deputy collector in relation to any other fuel;

may enter into an arrangement with the director under which

(c) the person reports to the director and pays the tax that would be payable under subsection (2) if the fuel were brought into Manitoba for any other purpose; and

(d) the person is not required to collect tax on the sale or resale of that fuel.

Tax on interjurisdictional use — with carrier licence

6(1)        A licensed carrier who

(a) buys fuel outside Manitoba; and

(b) uses that fuel in Manitoba in a qualified motor vehicle;

must pay a tax on that fuel at the applicable rate and in accordance with section 28.

Tax on interjurisdictional use — without carrier licence

6(2)        If a qualified motor vehicle is operated both inside and outside Manitoba on the same trip and is not being operated under a valid carrier licence, the operator must pay — to a person authorized by the minister to collect the tax payable under this subsection — a tax equal to the greater of

(a) $18; and

(b) 6.0¢ for each kilometre travelled or to be travelled in Manitoba as part of that trip, as estimated by the minister or a delegate of the minister.

Interpretation

6(3)        For the purposes of this section, "carrier licence", "licensed carrier" and "qualified motor vehicle" have the same meaning as in section 23.

Tax on locomotive fuel

7           A person who

(a) operates a locomotive both inside and outside Manitoba;

(b) buys fuel in Manitoba or outside Manitoba for use in operating the locomotive, and any equipment attached directly to the locomotive's fuel supply system, in Manitoba;

must, in accordance with the regulations, report to the director and pay a tax on that fuel at the applicable rate as if the person were a collector in relation to that fuel.

Rates of tax

8           The rates of tax are as follows:

(a) 1.5¢ per litre for aviation fuel delivered directly into the fuel tanks of an aircraft for a commercial cargo flight;

(b) 3.2¢ per litre for any other aviation fuel;

(c) 1.7¢ per litre for bunker fuel or crude oil to be used only for heating;

(d) 1.9¢ per litre for marked fuel to be used only for heating;

(e) 3.0¢ per litre or 6.0¢ per kilogram for butane or propane;

(f) 6.3¢ per litre for fuel to be used only for operating a locomotive and any equipment attached directly to the locomotive's fuel supply system;

(g) 11.5¢ per litre for any other fuel.

TAX EXEMPTIONS

Exemptions — fuel used for certain purposes

9(1)        No tax is payable by a buyer of marked fuel, propane, natural gas, bunker fuel or crude oil when it is purchased

Farming

(a) for use only in

(i) operating agricultural machinery, other than a motor vehicle that is not a farm truck, while carrying out agricultural work on farm land in Manitoba,

(ii) operating a truck registered as a farm truck under The Drivers and Vehicles Act while the truck is being used as permitted by section 180 of The Highway Traffic Act,

(iii) heating or cooling a farm building, or

(iv) drying crops with a grain dryer in the course of farming;

Fishing and trapping

(b) by the holder of a valid commercial fishing licence under the Fisheries Act (Canada) or The Fisheries Act for use only in

(i) operating a tractor, or a snowmobile or similar tracked vehicle, to transport fish over the surface of a frozen lake or stream during an open commercial fishing season, or

(ii) operating a boat for catching or transporting fish during an open commercial fishing season;

(c) by the holder of a valid trapper's licence under The Wildlife Act for use only in operating a boat or snowmobile for trapping during an open trapping season;

Shipping

(d) for use only in operating, in the ordinary course of the buyer's business, a boat for shipping cargo for which the shipper or shipper's agent is charged a fee;

Prospecting and mining

(e) by the holder of a valid prospector's licence under The Mines and Minerals Act for use only in operating a boat for prospecting;

(f) for use only in operating an engine off-road exclusively for exploring for minerals as defined in The Mining Tax Act, other than in a mine as defined in that Act;

(g) by a buyer who is mining for minerals as defined in The Mining Tax Act, for use only in the buyer's mining operation and only for

(i) drying mineral ore concentrates,

(ii) heating the replacement air used to ventilate a processing plant or underground mine in Manitoba, or

(iii) operating an engine exclusively off-road to recover ore or to transport ore from a mine in Manitoba to a processing centre in Manitoba;

Forestry

(h) for use only in the buyer's commercial logging operation and only for

(i) operating an engine, other than a motor vehicle engine, in the course of harvesting, handling or processing forest products,

(ii) operating a motor vehicle engine for off-road transportation of forest products or waste material,

(iii) operating an engine in the construction or maintenance of a logging road, or

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

Hospital

(i) for use only in operating machinery used by a hospital as defined in The Health Services Insurance Act;

Municipal

(j) for use by a municipality or local government district only in operating

(i) fire fighting equipment or a lighting plant, or

(ii) its own equipment, other than a motor vehicle, for constructing or maintaining municipal works; or

Residential heating

(k) for use only in heating a dwelling unit in which the buyer of the fuel resides.

Exemption — fuel not bought in Manitoba

9(2)         If a person refines or receives fuel in Manitoba, or brings fuel into Manitoba, for a purpose for which the person could buy the fuel in Manitoba exempt from tax under subsection (1), the fuel is exempt from the tax otherwise payable under subsection 5(2).

Exemption — fuel not delivered into buyer's container

10          No tax is payable on a retail purchase of

(a) natural gas;

(b) propane, butane or any other manufactured gas; or

(c) acetylene, a solvent, mechanical lighter fluid, fire starter fluid or any similar mixture or product;

unless it is delivered

(d) directly into a tank or other refillable container provided by the buyer from a pump, tank, vehicle, place or premises at or from which retail sales are made; or

(e) by means of a tank or other refillable container

(i) provided to the buyer in exchange for a similar tank or refillable container provided by the buyer, or

(ii) that the purchaser may later provide to a dealer for a refill or in exchange for a similar tank or container filled with fuel.

Exemption — fuel used in international shipping

11          No tax is payable on fuel when it is bought for use only in operating an international ocean-going ship on an international shipping voyage.

Exemption — 1-K Kerosene

12          No tax is payable on kerosene refined to the 1-K Kerosene standard fixed by the Canadian General Standards Board.

TAX REFUNDS

Refund of tax — aviation fuel used in aerial spraying

13(1)       A buyer of aviation fuel is entitled to a refund of the tax paid on that fuel if

(a) the buyer owns or leases a single seat aircraft that is configured and registered with Transport Canada for aerial spraying; and

(b) the fuel is bought for use only in the aerial spraying of farm land in Manitoba.

Refund of tax — aviation fuel used for international cargo flight

13(2)       A buyer of aviation fuel is entitled to a refund of the tax paid on that fuel if it is bought 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.

Refund of tax — marked fuel not available

13(3)       A buyer of fuel is entitled to a refund of the tax paid on that fuel if

(a) the fuel was bought in circumstances in which marked fuel was not available; and

(b) the buyer bought the fuel for a purpose for which he or she could have bought marked fuel exempt from tax if marked fuel had been available.

Refund of tax — fuel used to produce electricity

13(4)       A buyer of fuel who uses it to produce electricity for sale is entitled to a refund of the tax paid on that fuel.

Refund of tax — bulk fuel exported for sale

13(5)       A buyer of bulk fuel who exports that fuel to a jurisdiction outside Manitoba for the purpose of sale or resale in that jurisdiction is entitled to a refund of any tax paid, or amount paid on account of tax, by the buyer on that fuel.

Refund of tax — bulk fuel exported for use

13(6)       A buyer of bulk fuel who exports that fuel to a jurisdiction outside Manitoba for use by the buyer in that jurisdiction is entitled to a refund of the tax paid by the buyer on that fuel if the buyer pays tax on that fuel in the other jurisdiction.

Refund of tax — fuel used in international shipping

13(7)       A buyer of fuel that is delivered directly into the fuel tanks of an international ocean-going ship upon its arrival in Manitoba, or departure from Manitoba, as part of an international shipping voyage, is entitled to a refund of any tax paid by the buyer on that fuel.

Refund of tax — non-engine use of fuel

13(8)       A buyer of fuel who uses that fuel

(a) for manufacturing, mixing or thinning paint;

(b) for cleaning

(i) machinery parts in the course of the buyer's business,

(ii) fuel drums or containers, or

(iii) fabrics; or

(c) for operating an incinerator;

is entitled to a refund of the tax paid on that fuel.

Refund application

14          To obtain a refund under section 13 in relation to a purchase of fuel, the buyer must file with the director, within two years after the date of the purchase, an application that includes

(a) a copy of the invoice for the purchase; and

(b) evidence sufficient to satisfy the director that the buyer is entitled to the refund.

RESTRICTIONS

Possession of bulk fuel

15          No person shall have possession of bulk fuel for any purpose other than sale or resale of that fuel unless the person

(a) is in possession of the fuel for a tax-exempt purpose;

(b) is a common carrier under a contract for the transport of the fuel;

(c) has paid the tax payable under subsection 5(1) on that fuel; or

(d) as required by subsection 5(2), has reported to the director and paid the tax, if any, payable on that fuel.

Use of marked fuel

16(1)       No person shall use marked fuel for anything other than heating or a tax-exempt use described in section 9.

Marking of fuel

16(2)       No person shall mark fuel for the purposes of this Act unless

(a) the person is authorized by the director to mark fuel; and

(b) the fuel is being marked in accordance with the regulations.

LICENCES AND PERMITS

Dealer licence required

17          No person shall carry on business or otherwise act as a dealer in Manitoba except as authorized by a dealer licence issued by the director.

No sale to unlicensed dealer

18          No dealer shall sell or offer to sell fuel in Manitoba to another dealer who does not hold a valid dealer licence.

Refiner licence required

19          No person shall carry on business or act as a refiner in Manitoba except as authorized by a refiner licence issued by the director or by a licence issued under The Biofuels Act for the production of a biofuel.

Authority to blend fuel

20          No person shall blend fuel with anything unless

(a) the blending is being done as authorized by a blending permit issued by the director; or

(b) the blended product is to be sold as fuel and will be subject to tax when it is sold.

For this purpose, blending does not include anything done to mark fuel in accordance with the regulations.

COLLECTORS AND DEPUTY COLLECTORS

When is a dealer a collector?

21(1)       A dealer is a collector in relation to fuel that the dealer

(a) manufactures or refines in Manitoba for sale in Manitoba;

(b) brings or imports into Manitoba for sale in Manitoba, unless it is brought into Manitoba under an arrangement described in subsection 5(3);

(c) otherwise acquires or comes into possession of, for resale in Manitoba, from a person who is not a collector or deputy collector in relation to that fuel; or

(d) buys from another dealer, but only if the buyer

(i) is registered with the director as a collector, and

(ii) advises the seller that he or she is buying the fuel as a collector.

When is a dealer a deputy collector?

21(2)       A dealer who buys fuel from another dealer is, in relation to that fuel, a deputy collector for the seller, unless the buyer is a collector in relation to that fuel.

Collector's duties

22(1)       A dealer who sells fuel in relation to which the dealer is a collector must

(a) collect any tax payable on a retail sale of that fuel by the collector;

(b) ensure that any tax payable on a retail sale of that fuel by a deputy collector of the collector in relation that fuel is collected and remitted to the collector;

(c) remit the tax proceeds to the government in accordance with the regulations;

(d) file returns with the director in accordance the regulations; and

(e) report to the director, in accordance with the regulations, the names and addresses of the collector's deputy collectors.

Deputy collector's duties

22(2)       A dealer who sells fuel in relation to which the dealer is a deputy collector (referred to in this subsection as the "seller") must

(a) collect any tax payable on a purchase of the fuel;

(b) if the seller sells the fuel to another dealer for resale, ensure that any tax payable on a subsequent purchase of that fuel is collected and remitted to the seller; and

(c) remit the tax proceeds to the collector or deputy collector from whom the seller acquired the fuel.

INTERNATIONAL FUEL TAX AGREEMENT

Definitions

23          The following definitions apply in this section and sections 6 and 24 to 30.

"carrier" means a person who owns or operates one or more motor vehicles used interprovincially or internationally for the commercial carriage of passengers or goods. (« transporteur »)

"carrier decal" means a decal issued to a carrier for the purposes of IFTA. (« autocollant de transporteur »)

"carrier licence" means a licence that has been issued to a carrier for the purposes of IFTA, has not expired or been cancelled and is not suspended. (« licence de transporteur »)

"IFTA" means the International Fuel Tax Agreement, an agreement that facilitates the collection, remission and enforcement of fuel taxes imposed by the laws of the member jurisdictions. (« Entente internationale concernant la taxe sur les carburants » ou « Entente internationale »)

"licensed carrier" means a person who holds a carrier licence. (« transporteur autorisé »)

"Manitoba licensed carrier" means a person who holds a carrier licence issued by the director. (« transporteur autorisé du Manitoba »)

"member jurisdiction" means a jurisdiction that is a member under IFTA. (« autorité législative membre »)

"qualified motor vehicle" means a motor vehicle that is used interprovincially or internationally for the commercial carriage of passengers or goods and that

(a) has two axles and a gross vehicle weight or registered gross vehicle weight greater than 11,797 kg;

(b) has a gross vehicle weight or registered gross vehicle weight that, when combined with the gross vehicle weight or registered gross vehicle weight of the trailer with which it is used, is greater than 11,797 kg; or

(c) has three or more axles. (« véhicule automobile admissible »)

Minister may enter into IFTA

24          The minister may enter into IFTA with the approval of the Lieutenant Governor in Council.

Conflict with IFTA

25          If there is a conflict between IFTA and this Act, IFTA applies to the extent of that conflict.

Carrier licence and decals

26(1)       Upon application by a carrier and payment of the applicable fees, the director may issue to the carrier

(a) a licence recognizing the carrier as a person to whom IFTA applies; and

(b) two decals for each qualified motor vehicle owned or operated by the carrier.

Additional decals

26(2)       Upon application by a Manitoba licensed carrier and payment of the applicable fee, the director may issue to the carrier two decals for each additional qualified motor vehicle

(a) that is owned or operated by the carrier; and

(b) for which decals were not issued when the carrier licence was issued under this section.

Licence and decal fees

26(3)       The applicable fees are as follows:

(a) for a carrier licence, $65;

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

Term of licence and decals

26(4)       A carrier licence and the related carrier decals are valid only until the end of the year for which they are issued.

Temporary decal permit

26(5)       The director may, in accordance with IFTA, issue a temporary decal permit to a Manitoba licenced carrier for a qualified motor vehicle, which the carrier may use in lieu of decals for that vehicle for a period of not more than 30 days. No fee is payable for the permit.

Carrier licence and decals not transferable

26(6)       No person shall, without the director's permission, assign or otherwise transfer a carrier licence or carrier decals issued by the director.

Licence and decal obligations of operators and owners

27          When a qualified motor vehicle is operated in Manitoba under a carrier licence,

(a) the vehicle's operator must

(i) carry a copy of the licence in the cab of the vehicle at all times,

(ii) produce the copy for inspection upon the request of a peace officer or other authorized person, and

(iii) ensure that carrier decals are affixed to the exterior of the cab in two clearly visible locations, one on the lower rear portion of each side of the cab, or carry a temporary decal permit that, under IFTA, may be used in lieu of decals; and

(b) the vehicle's owner, if he or she is not its operator, must

(i) ensure that a copy of the licence is carried by the operator in the cab of the vehicle at all times, and

(ii) ensure that carrier decals are affixed to the cab as described in subclause (a)(iii), or that the operator is carrying a temporary decal permit that, under IFTA, may be used in lieu of decals.

Remittance of tax

28(1)       The tax payable by a licensed carrier under subsection 6(1) must be remitted

(a) in the case of a Manitoba licensed carrier, to the minister in accordance with subsection (2); and

(b) in the case of any other licensed carrier, to the applicable member jurisdiction in accordance with the licence terms.

Quarterly returns and remittances

28(2)       A Manitoba licensed carrier must

(a) file quarterly returns with the director in accordance with the regulations and in a form required under IFTA and approved by the director; and

(b) remit to the minister with each return an amount equal to the total of the net taxes, interest and penalties, if any, payable in relation to fuel to the member jurisdictions.

Refund to licensed carrier

29          The minister may refund to a Manitoba licensed carrier the amount of any overpayment of fuel taxes or other amounts paid to member jurisdictions.

Payments to member jurisdictions

30(1)       The minister may pay to

(a) a member jurisdiction; or

(b) a person authorized by the member jurisdiction to accept the payment;

the part of the tax, or any other amount remitted to the minister in accordance with this Act or IFTA, that is payable to that jurisdiction under IFTA.

Payments out of Consolidated Fund

30(2)       Any payment under subsection (1) is payable out of the Consolidated Fund from the proceeds of the taxes remitted under this Act.

REGULATIONS

Regulations

31(1)       The Lieutenant Governor in Council may make regulations

(a) respecting the marking of fuel, including regulations that establish or adopt standards for marked fuel or for any dye that is to be used for marking fuel;

(b) respecting information, reports and returns to be provided under this Act;

(c) respecting the payment of tax or remittance of tax proceeds;

(d) providing for allowances that may be claimed when accounting for tax proceeds;

(e) that the Lieutenant Governor in Council considers necessary or advisable for

(i) the administration of IFTA,

(ii) the administration of tax under this Act in accordance with IFTA, and

(iii) the administration of licences, decals and permits in accordance with IFTA;

(f) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable to carry out the purposes of this Act.

Effective date

31(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 IFTA or this Act.

TRANSITIONAL PROVISIONS

Transitional — licences and permits

32(1)       On the coming into force of this Act, a licence or permit that was issued under or for the purposes of The Gasoline Tax Act or The Motive Fuel Tax Act continues in effect for the purposes of this Act as if it were issued under or for the purposes of this Act.

Transitional — carrier licences and decals

32(2)       On the coming into force of this Act, a carrier licence or carrier decal that was issued for the purpose of IFTA under The Gasoline Tax Act or The Motive Fuel Tax Act continues in effect as if it were issued under this Act for the purpose of IFTA.

CONSEQUENTIAL AMENDMENTS

C.C.S.M. c. B40 amended

33(1)       The Biofuels Act is amended by this section.

33(2)       Section 1 is amended

(a) by replacing the definition "fuel supplier" with the following:

"fuel supplier" means a person who is registered with the director under The Fuel Tax Act as a collector. (« fournisseur de carburant »)

(b) by replacing the definition "motive fuel" with the following:

"motive fuel" means a combustible liquid that can be used to generate power by means of a diesel engine. (« carburant »)

33(3)       Clause 6.4(2)(a) is amended

(a) in the part before the formula and in subclause (ii) of the description of L, by adding "or The Fuel Tax Act" after "The Gasoline Tax Act"; and

(b) by replacing subclause (iii) of the description of L with the following:

(iii) the number of litres of gasoline and gasoline-based fuels that were sold by fuel suppliers during the period and on which

(A) tax under clause 2(1)(d) of The Gasoline Tax Act was collected and not refunded, or

(B) tax was imposed under subsection 5(1) of The Fuel Tax Act at the rate specified in clause 8(g) of that Act, and was collected and not refunded,

multiplied by the prescribed percentage that applies in determining the denatured ethanol sales mandate for that period, or, if another percentage is prescribed, by that other percentage;

33(4)       Subsection 6.4(3) is repealed.

34          If Bill 17, introduced in the Fourth Session of the 39th Legislature and entitled The Biofuels Amendment Act, is enacted, the part of clause 6.4.1(2)(a) before the formula, as enacted by section 6 of that Act, is amended by striking out "The Motive Fuel Tax Act" and substituting "The Fuel Tax Act".

C.C.S.M. c. C107 amended

35(1)       The Civil Remedies Against Organized Crime Act is amended by this section.

35(2)       Clause 3(2)(a) is amended

(a) by striking out "The Gasoline Tax Act" and substituting "The Fuel Tax Act"; and

(b) by striking out "The Motive Fuel Tax Act,".

35(3)       Clause 5(2)(d) is amended

(a) by striking out "The Gasoline Tax Act" and substituting "The Fuel Tax Act"; and

(b) by striking out "The Motive Fuel Tax Act,".

C.C.S.M. c. F55 amended

36          Clause 67.1(1)(a) of The Financial Administration Act is amended

(a) by striking out "The Gasoline Tax Act and The Motive Fuel Tax Act" and substituting "The Fuel Tax Act";

(b) by striking out "aircraft gasoline" and substituting "aviation fuel"; and

(c) in the English version, by striking out "motive".

C.C.S.M. c. M265 amended

37(1)       The Municipal Revenue (Grants and Taxation) Act is amended by this section.

37(2)       Section 6 is amended

(a) by adding the following definitions:

"fuel" and "aviation fuel" have the same meaning as in The Fuel Tax Act. (« carburant » et « carburant aviation »)

"gasoline" means a fuel, other than motive fuel and aviation fuel. (« essence »)

"motive fuel" means fuel that can be used to generate power by means of a diesel engine. (« carburant moteur »)

(b) by replacing the definition "taxable litre" with the following:

"taxable litre" means a litre of fuel — other than aviation fuel and fuel used in the operation of a locomotive — on the purchase of which tax is payable under The Fuel Tax Act. (« litre taxable »)

37(3)       In the French version, "moteur" is added after "carburant" in clause 8(1)(b), subsection 8(3) and wherever it occurs in subsection 9(3).

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

38          Subsections 3(4) and (5) of The Retail Sales Tax Act are replaced with the following:

Exemption for certain fuel

3(4)        Despite section 2, no tax is payable under this Act in respect of fuel, as defined in The Fuel Tax Act, unless

(a) it is exempt under section 10 of that Act from tax under that Act; or

(b) tax paid under that Act on that fuel is refunded under subsection 13(8) of that Act.

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

39(1)       The Tax Administration and Miscellaneous Taxes Act is amended by this section.

39(2)       Subsection 1(1) is amended

(a) by replacing the definitions "bulk fuel", "carrier licence", "deputy collector", "fuel" and "marked fuel" with the following:

"bulk fuel" means bulk fuel as defined in The Fuel Tax Act. (« carburant en vrac »)

"carrier licence" means a carrier licence as defined in section 23 of The Fuel Tax Act. (« licence de transporteur »)

"deputy collector" means a person required by a tax Act to collect and remit tax to a collector. (« collecteur adjoint »)

"fuel" means fuel as defined in The Fuel Tax Act. (« carburant »)

"marked fuel" means marked fuel as defined in The Fuel Tax Act. (« carburant marqué »)

(b) by repealing the definition "fuel tax Act"; and

(c) in the definition "tax Act",

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

(b) The Fuel Tax Act;

(ii) by repealing clause (e).

39(3)       Clause 17(2)(b) is amended by striking out  "the definition "carrier licence" in section 1" and substituting "The Fuel Tax Act".

39(4)       The following provisions are amended by striking out "a fuel tax Act" and substituting "The Fuel Tax Act":

(a) clause 10(2)(d);

(b) subsection 25(1);

(c) subsection 25(2), in the part before clause (a);

(d) subsection 31(1), in the part before clause (a), and in clauses (a) and (b);

(e) subsection 34(6);

(f) clauses 77(1)(a), (b) and (c);

(g) clause 77(2)(a), in the part before subclause (i);

(h) clause 77(2)(a.1), in the part before subclause (i);

(i) clause 77(2)(b);

(j) subsection 79(1), in the part before clause (a).

39(5)       Clause 77(1)(e) is replaced with the following:

(e) marks fuel contrary to The Fuel Tax Act or the regulations under that Act; or

39(6)       Clauses 77(1)(g) and (h) are replaced with the following:

(g) blends fuel with any petroleum product that is not subject to tax under The Fuel Tax Act on resale, and sells the resulting produce as fuel contrary to that Act.

39(7)       Subclauses 77(2)(a)(iii) and 77(2)(a.1)(ii) are amended by striking out "the applicable fuel tax Act" and substituting "that Act".

39(8)       Clauses 79(1)(a) and (b) are amended by striking out "a fuel tax Act" and substituting "that Act".

REPEAL, C.C.S.M. REFERENCE AND COMING INTO FORCE

Repeal

40          The following Acts are repealed:

(a) The Gasoline Tax Act, R.S.M. 1987, c. G40;

(b) The Motive Fuel Tax Act, R.S.M. 1988, c. M220.

C.C.S.M. reference

41          This Act may be referred to as chapter F192 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

42          This Act comes into force on April 1, 2011.