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The Budget Implementation and Tax Statutes Amendment Act, 2012

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S.M. 2012, c. 1

Bill 39, 1st Session, 40th Legislature

The Budget Implementation and Tax Statutes Amendment Act, 2012


TABLE OF CONTENTS

Part 1 — The Corporation Capital Tax Act

Part 2 — The Fuel Tax Act

Part 3 — The Income Tax Act

Part 4 — The Municipal Revenue (Grants and Taxation) Act

Part 5 — The Retail Sales Tax Act

Part 6 — The Tax Administration and Miscellaneous Taxes Act

Part 7 — The Tobacco Tax Act

Part 8 — Members' Salaries

Part 9 — Coming into force


(Assented to June 14, 2012)

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

PART 1

THE CORPORATION CAPITAL TAX ACT

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

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

2           Section 1 is amended by renumbering it as subsection 1(1) and adding the following as subsection 1(2):

Meaning of "associated group for a calendar year"

1(2)        For the purpose of this Act, an associated group for a calendar year includes all the corporations that are associated with each other under section 256 of the Income Tax Act (Canada) at a time that, for each of them, is in a fiscal year that ends in the calendar year. A corporation might belong to more than one associated group for a calendar year.

3           Subsection 6(2) is amended by striking out "3%" and substituting "4%".

4(1)         Subsection 10(1) is amended in the part before clause (a) by striking out "as at the close of a fiscal year" and substituting "in respect of a fiscal year beginning before January 1, 2011".

4(2)        The following is added after subsection 10(4):

Deduction from paid up capital of Crown corporation

10(5)       In computing its taxable paid up capital as at the close of a fiscal year beginning after December 31, 2010, a Crown corporation may deduct, as an investment allowance, the amount calculated in accordance with the following formula:

P × C/B

In this formula,

P

is the paid up capital of the Crown corporation as at the close of the fiscal year;

C

is the cost of investments held by the Crown corporation at the end of the fiscal year in shares and bonds of, and loans and advances to, other corporations and in bonds, debentures and other securities of any government, municipality or school corporation, but not including

(a) cash on deposit with any financial institution that accepts deposits in the normal course of its business,

(b) a loan or advance in the nature of a certificate of term deposit, bearer deposit note, bearer discount note, swap deposit or banker's acceptance note to any corporation doing the business of a financial institution, unless it was outstanding for more than 90 days as at the close of the fiscal year, or

(c) a trade account receivable by the Crown corporation and reported as a current asset of the Crown corporation, unless

(i) the account was outstanding for more than 90 days as at the close of the fiscal year, or

(ii) the account was a portion or a current portion of a long term debt receivable from another corporation;

B

is the value of the total assets of the corporation as at the close of the fiscal year.

5           Subsection 10.1(2) is repealed.

6           Subsection 13(4) is replaced with the following:

Exemption for small financial institutions

13(4)       For a fiscal year ending after April 12, 2011, no tax is payable under this Act by a bank, loan corporation, trust corporation or trust and loan corporation if

(a) the corporation's taxable paid up capital at the close of the fiscal year is less than $4,000,000,000; and

(b) where the corporation is a member of an associated group for the calendar year in which the fiscal year ends, the total of the taxable paid up capital at the close of the fiscal year of the members of the group is less than $4,000,000,000.

PART 2

THE FUEL TAX ACT

C.C.S.M. c. F192 amended

7           The Fuel Tax Act is amended by this Part.

8           Section 1 is amended by adding the following definition:

"marked gasoline" means a marked fuel that contains derivatives from coal, natural gas or petroleum and that has been refined or produced for use in gasoline engines. (« essence marquée »)

9           Subsections 5(1) and (2) are amended by striking out "sections 9 to 12" and substituting "sections 9 to 12.1".

10(1)       The following is added after clause 8(d):

(d.1) 3.0¢ per litre for marked gasoline other than marked gasoline that is subject to tax under clause (d);

10(2)       Clause 8(g) is amended by striking out "11.5¢" and substituting "14¢".

11          Subsection 9(1) is amended in the part before clause (a) by striking out "marked fuel, propane, natural gas, bunker fuel or crude oil" and substituting "propane, natural gas, bunker fuel, crude oil, or marked fuel other than marked gasoline,".

12          Section 12 is amended by adding "that is not used as aviation fuel" after "Board".

13          Subsection 13(3) is replaced with the following:

Refund of tax — marked fuel not available

13(3)       A buyer of fuel is entitled to a refund — in the amount by which the tax paid on that fuel exceeds the tax that would have been payable if the fuel had been marked — if

(a) the fuel was bought in circumstances in which marked fuel was not available; and

(b) the buyer bought the fuel for a use for which he or she could have bought marked fuel exempt from tax or at a lower rate of tax if marked fuel had been available.

14          Section 14 is replaced with the following:

Refund application

14          To obtain a refund under section 13 in relation to a fuel purchase, the buyer must file with the director, within two years after the purchase date, a signed application that includes

(a) the reasons for the refund request;

(b) evidence sufficient to satisfy the director that the tax was paid by the buyer and the buyer is entitled to the refund; and

(c) if another person is acting on the buyer's behalf, a written authorization signed by the buyer.

15          Section 15 is replaced with the following:

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

(a) the fuel is exempt from tax under any of sections 9 to 12.1;

(b) the person is a common carrier under a contract for the transport of the fuel;

(c) the person has paid the tax payable under subsection 5(1) on that fuel; or

(d) as required by subsection 5(2), the person has reported to the director and paid the tax, if any, payable on that fuel.

16          Subsection 16(1) is replaced with the following:

Use of marked fuel

16(1)       No person shall use marked fuel for anything other than heating or a use that,

(a) in the case of marked fuel other than marked gasoline, is a tax-exempt use described in section 9; or

(b) in the case of marked gasoline, would be a tax-exempt use described in section 9 if that section were to apply to marked gasoline.

17          Subsection 22(1) of the English version is amended

(a) in clause (b), by adding "to" after "relation"; and

(b) in clause (d), by adding "with" after "accordance".

PART 3

THE INCOME TAX ACT

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

18          The Income Tax Act is amended by this Part.

19(1)       Subsection 4(1) is amended

(a) by adding the following after clause (d) of Rule 7:

(d.1) if the individual is not a trust, the total of all amounts each of which is the individual's unused mineral exploration tax credit from any of the 10 immediately preceding taxation years as determined under subsection 11.7(3);

(b) in clause (f) of Rule 7, by striking out "or any of the 10 immediately preceding taxation years,".

19(2)       Subsection 4(1) is further amended by adding the following after clause (c) of Rule 9:

(c.1) the amount, if any, that the individual is deemed by subsection 10.2.1(1) (refundable nutrient management tax credit of farmer) to have paid on account of his or her tax payable for the year;

20(1)       Clause 4.6(10.2)(b) of the French version is amended in the description of A in the formula by striking out "à" after "chacun".

20(2)       Subsections 4.6(10.7) to (10.10) are replaced with the following:

Children's arts and cultural activity tax credit

4.6(10.7)   For a taxation year ending after 2010, an individual who is

(a) entitled to deduct an amount under subsection 118.031(2) of the federal Act for that year; and

(b) resident in Manitoba at the end of the taxation year;

may claim the amount that would be determined for B in the formula in that subsection if subparagraph (b)(iii) of the definition "eligible expense" in subsection 118.031(1) of the federal Act were read as follows:

(iii) any amount included in computing the amount of a tax credit of any person for any taxation year under The Income Tax Act (Manitoba).

Additional arts and cultural activity tax credit for child with disability

4.6(10.8)   For a taxation year ending after 2010, an individual who is

(a) entitled to deduct an amount under subsection 118.031(3) of the federal Act for that year in respect of a qualifying child; and

(b) resident in Manitoba at the end of the taxation year;

may claim, in respect of that child, the additional amount of $500.

Definition

4.6(10.9)   In subsection (10.8), "qualifying child" has the same meaning as in subsection 118.03(1) of the federal Act.

20(3)       Subsection 4.6(14.1) of the English version is amended in clause (b) of the description of B in the formula by adding "the" after "claimed by".

21          Subclause 4.7(1)(b)(ii) is amended by striking out "11%" and substituting "8%".

22(1)       Section 5.3 is amended by adding the following definitions:

"community revitalization levy" means a community revitalization levy imposed under The Community Revitalization Tax Increment Financing Act; (« taxe de revitalisation urbaine »)

"school taxes" means municipal taxes for school purposes. (« taxes scolaires »)

22(2)       Section 5.3 is further amended by replacing the definition "municipal taxes" with the following:

"municipal taxes" means

(a) taxes for municipal purposes,

(b) taxes for school purposes, or

(c) community revitalization levies,

in respect of Manitoba residential or farm property payable to a municipality, a local government district or the minister appointed by the Lieutenant Governor in Council to administer The Northern Affairs Act before any municipal tax reduction; (« taxes municipales »)

23          Subsection 5.4(4) of the English version is amended in the part before clause (a) by adding "old" after "65 years".

24(1)       Clause 5.5(1)(c) is amended by striking out "municipal taxes for school purposes" and substituting "school taxes".

24(2)       Clause 5.5(2)(b) is amended by striking out "municipal taxes imposed for school purposes" and substituting "school taxes".

24(3)       Clause 5.5(2)(c) is replaced with the following:

(c) the amount, if any, by which the individual's occupancy cost for the year exceeds his or her education property tax credit.

25(1)       Clause 5.6(1)(a) is amended by striking out "$650" and substituting "$700".

25(2)       Subsection 5.6(2.1) of the French version is amended by striking out "soit payé" and substituting "soit payée".

25(3)       The following is added after subsection 5.6(2.1):

Credit to the Community Revitalization Fund

5.6(2.2)    The Minister of Finance for Manitoba may require a portion of the amount payable to a municipality or local government district under subsection (2) to be credited directly to the Community Revitalization Fund. The amount so credited reduces the amount the municipality or local government district would otherwise be required to remit under section 13 of The Community Revitalization Tax Increment Financing Act.

26          Clause 7(4)(b) is amended by striking out "137(7)" and substituting "137(6)".

27          Subsection 7.3(1) of the English version is amended in the definition "research and development tax credit" by striking out "and" at the end of clause (c) and adding "and" at the end of clause (d).

28(1)       Subsection 7.5(1) is amended by adding the following definitions:

"accommodation unit" means a residence or a hotel room, regardless of the number of people staying in the residence or hotel room. (« unité d'hébergement »)

"eligible accommodation expenditure" of a corporation for a taxation year in relation to an eligible film means the total of all amounts each of which is the lesser of

(a) the amount paid; or

(b) $300;

for each night's use of an accommodation unit in Manitoba, during the year, for the temporary accommodation of one or more individuals whose presence in Manitoba is required for the film's production. (« dépense d'hébergement admissible »)

28(2)       Subsection 7.5(1) is further amended in the definition "excluded production expenditure" by

(a) repealing clause (c); and

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

(d) living expenses other than eligible accommodation expenditures;

29          Subsection 7.6(6) is amended in the description of A in the formula by striking out "and" at the end of clause (c), adding "and" at the end of clause (d) and adding the following after clause (d):

(d.1) if production of the eligible film commenced after April 17, 2012, the corporation's eligible accommodation expenditure in relation to the film,

30(1)       Subsection 7.17(1) is amended in the definition "eligible donation"

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

(a.1) is not less than $50,000 or, together with other gifts of money made by the corporation to the same charity within the four-taxation-year period in which the gift was made, totals at least $50,000;

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

(d) is made, and used or designated in accordance with clause (c), within four years after the first eligible donation was made by any corporation in support of the same eligible social enterprise;

but does not include the portion of the gift that, alone or with the eligible donations previously made by the corporation in support of the same eligible social enterprise, exceeds $200,000.

30(2)       Subsection 7.17(1) is further amended in clause (e) of the definition "eligible social enterprise" by striking out "who" and substituting ", at least 25% of whom".

30(3)       Subsection 7.17(2) is amended by adding "or" at the end of clause (g) and repealing clause (h).

31(1)       Clause 7.18(1)(b) is replaced with the following:

(b) made, before the beginning of the taxation year, one or more eligible donations totalling at least $50,000 to the same Manitoba charity;

31(2)       Subsection 7.18(2) is replaced with the following:

Amount of tax credit

7.18(2)     If a corporation is entitled to a deduction under subsection (1) for a taxation year, its tax credit for that year is the lesser of

(a) $15,000; and

(b) the amount, if any, by which

(i) an amount equal to 30% of the total eligible donations made by the corporation in the immediately preceding four taxation years,

exceeds

(ii) the total of all amounts each of which is the corporation's tax credit determined under this subsection for a preceding taxation year in respect of the eligible donations referred to in subclause (i).

32          The following is added after section 7.18 and before the centred heading that follows it:

DATA PROCESSING CENTRE INVESTMENT TAX CREDIT

Refundable data processing centre investment tax credit

7.19(1)     An eligible data processing 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 the year, an amount equal to its data processing centre investment tax credit for the year.

Definitions

7.19(2)     The following definitions apply in this section.

"data processing" means the use of networked computers to centralize the storage, management, dissemination or hosting of data or information and may include the use of one or more of the following systems or equipment to support the networked computers:

(a) mechanical and power systems or equipment, including substations and redundant or backup systems or equipment;

(b) primary or redundant data communications connections;

(c) fire suppression and security systems;

(d) environmental and temperature control systems or equipment;

(e) racking, cabling and trays used for the maintenance or operation of equipment used for data processing;

(f) any other system or equipment prescribed by regulation. (« traitement de l'information »)

"data processing building" of a corporation means a building in Manitoba

(a) that the corporation acquired by purchase or lease, or constructed, after April 17, 2012;

(b) that is a prescribed building as defined in subsection 4600(1) of the federal regulations for the purpose of the definition "qualified property" in subsection 127(9) of the federal Act, or, in the case of a building that is acquired by lease, would be such a prescribed building if it were owned by the corporation;

(c) that was not used, or acquired for use or lease, for any purpose before it was acquired by the corporation; and

(d) that is used, or will be used, by the corporation for the purpose of data processing. (« bâtiment d'informatique »)

"data processing equipment" of a corporation means equipment

(a) that the corporation acquired by purchase or lease after April 17, 2012;

(b) that is or would be, if it were owned by the corporation,

(i) prescribed machinery and equipment as defined in subsection 4600(2) of the federal regulations for the purpose of the definition "qualified property" in subsection 127(9) of the federal Act, or

(ii) a property included in paragraph (o) of Class 12, paragraph (c) of Class 17, or in Class 42 or Class 50 in Schedule II to the federal regulations;

(c) that

(i) was not used, or acquired for use or lease, for any purpose before it was acquired by the corporation, or

(ii) was refurbished when it was acquired by the corporation; and

(d) that is situated in Manitoba and is used, or will be used, by the corporation in connection with the operation or maintenance of a data processing building. (« matériel de traitement de l'information »)

"refurbished", in relation to equipment, means that at least 50% of the capital cost of the equipment is attributable to unused components installed since the equipment was last used or acquired for use or lease. (« remis à neuf »)

Eligible data processing corporation

7.19(3)     For the purpose of subsection (1), a corporation is an eligible data processing corporation if

(a) it is a taxable Canadian corporation with a permanent establishment in Manitoba;

(b) the principal activity of the corporation in Manitoba is data processing; and

(c) where the corporation is affiliated, within the meaning of the federal Act, with one or more other corporations with a permanent establishment in Manitoba, the principal activity in Manitoba of the corporation and those other corporations, on a combined basis, is data processing.

Data processing centre investment tax credit amount

7.19(4)     A corporation's data processing centre investment tax credit for a taxation year is the amount determined by the following formula:

A + B

In this formula,

A

is the total of all amounts each of which is, subject to subsection (6), 7% of the amount, if any, by which

(a) the corporation's capital cost of an item of data processing equipment purchased or constructed within the year and

(i) on or before December 31, 2015, or a later date prescribed by regulation, or

(ii) after that date, if it was acquired as a replacement for equipment for which the corporation was entitled to claim a data processing centre investment tax credit, or

(b) the corporation's leasing cost for the year for an item of data processing equipment acquired by lease

(i) on or before December 31, 2015, or a later date prescribed by regulation, or

(ii) after that date, if it was acquired as a replacement for equipment for which the corporation was entitled to claim a data processing centre investment tax credit,

exceeds

(c) the amount of any government assistance, other than a tax credit under this section, that was received or is receivable by the corporation in respect of that item of equipment and that,

(i) in the case of equipment referred to in clause (a), was not deducted in calculating the corporation's capital cost of the item of equipment, or

(ii) in the case of leased equipment, was not deducted in computing the corporation's data processing centre investment tax credit for that item of equipment for a previous year;

B

is the total of all amounts each of which is, subject to subsection (6), 4% of the amount, if any, by which

(a) the corporation's capital cost of a data processing building purchased or constructed within the year and

(i) on or before December 31, 2015, or a later date prescribed by regulation, or

(ii) after that date, if it was acquired or constructed as a replacement for a building for which the corporation was entitled to claim a data processing centre investment tax credit, or

(b) the corporation's leasing cost for the year for a data processing building acquired by lease

(i) on or before December 31, 2015, or a later date prescribed by regulation, or

(ii) after that date, if it was acquired as a replacement for a building for which the corporation was entitled to claim a data processing centre investment tax credit,

exceeds

(c) the amount of any government assistance, other than a tax credit under this section, that was received or is receivable by the corporation in respect of that building and

(i) in the case of a building referred to in clause (a), that was not deducted in calculating the corporation's capital cost of the building, or

(ii) in the case of a leased building, that was not deducted in computing the corporation's data processing centre investment tax credit for that building for a previous year.

Property acquired when available for use

7.19(5)     For the purpose of this section, property acquired by a corporation after April 17, 2012, is deemed not to have been purchased or acquired by the corporation before it is considered to have become available for use by the corporation, as determined under subsection 13(27) of the federal Act without reference to paragraph (c) or under subsection 13(28) of that Act without reference to paragraph (d).

Limitations

7.19(6)     In determining a corporation's data processing centre investment tax credit for a taxation year, no amount shall be included in respect of

(a) an item of equipment or a building unless and until the corporation has filed with the minister, no later than one year after the filing-due date for the taxation year in which the equipment or building was acquired and in a form and manner authorized by the minister, the information about the equipment or building stipulated by the authorized form; or

(b) an item of equipment or a building in respect of which an amount is or has been included in computing any other tax credit of the corporation under this Act.

Regulations

7.19(7)     For the purpose of this section, the Lieutenant Governor in Council may make regulations

(a) defining any term used but not defined in this section;

(b) prescribing a system or equipment for the purpose of the definition "data processing" in subsection (2);

(c) prescribing a date for the purpose of subclauses (a)(i) and (b)(i) in the descriptions of A and B in the formula in subsection (4);

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

33          Subsection 8(1) of the English version is amended by striking out "sub-paragraph" and substituting "subparagraph".

34(1)       Subsection 10.1(1) is amended by adding the following definitions:

"record of employment" means a record of employment prepared by an employer in accordance with the Employment Insurance Regulations, SOR/96-332. (« relevé d'emploi »)

"rural or northern apprentice" means a qualifying apprentice who ordinarily resides outside Winnipeg and whose work, in the normal course of employment during a qualifying period of employment, is performed outside Winnipeg. (« apprenti d'une région du Nord ou rurale »)

34(2)       Subsection 10.1(6) is amended

(a) in clause (a), by striking out "$2,000." and substituting "$3,000"; and

(b) in the description of W in the formula in clause (b), by striking out "10%" and substituting "15%".

34(3)       The following is added after subsection 10.1(6):

Increased hiring incentive for rural or northern apprentice

10.1(6.1)   In determining the hiring incentive under subsection (6) in respect of a qualifying period of employment of a rural or northern apprentice at an early level of apprenticeship that the apprentice completes after 2012

(a) the reference in clause (6)(a) to "$3,000" is to be read as "$4,000"; and

(b) the reference in the description of W in the formula in clause (6)(b) to "15%" is to be read as "20%".

34(4)       Subsection 10.1(7) is amended in the description of W in the formula

(a) in clause (a), by striking out "$2,500." and substituting "$5,000"; and

(b) in clause (b), by striking out "5%" and substituting "10%".

34(5)       Subsection 10.1(8) is amended in the description of W in the formula

(a) in clause (a), by striking out "$2,500." and substituting "$5,000"; and

(b) in clause (b), by striking out "5%" and substituting "10%".

34(6)       The following is added after subsection 10.1(9):

Transitional — certification of journeyperson before 2013

10.1(9.1)   In determining the hiring incentive for a qualifying period of employment of a qualifying journeyperson who became a journeyperson in that trade before 2013, the description of W in the formula in subsection (8) is to be read as if

(a) the reference to "$5,000" were "$2,500"; and

(b) the reference to "10%" were "5%".

34(7)       Subsection 10.1(10) is replaced with the following:

Hiring incentive reduced by federal hiring incentive

10.1(10)    The early level apprentice hiring incentive that a taxpayer may claim under subsection (6) in respect of a period of employment is reduced by the amount, if any, that the taxpayer may claim under subsection 127(9) of the federal Act as an investment tax credit for an apprenticeship expenditure in respect of the apprentice.

34(8)       Subsection 10.1(14) is replaced with the following:

Waiver of completion requirement

10.1(14)    The certifying authority may, on receipt of an application that includes the student's record of employment, waive the completion requirement and issue a proof-of-credit certificate for a work placement if

(a) the student completes at least 7 1/2 weeks of the work placement but does not complete the entire term of the work placement; and

(b) the record of employment indicates that the reason for issuing the record of employment is "illness or injury", "quit", "apprenticeship training", "return to school", "maternity", "parental", "retirement" or "compassionate care".

34(9)       Subsections 10.1(18) and (19) are replaced with the following:

Waiver of 12-month completion requirement

10.1(18)    The certifying authority may, on receipt of an application that includes the record of employment for the qualifying graduate or qualifying journeyperson, waive the requirement of a 12-month period of employment and issue a proof-of-credit certificate for a period of employment if

(a) the graduate or journeyperson completes at least 9 months of employment but fails to complete 12 months of employment;

(b) the period of employment does not qualify as a qualifying period of employment only because of that failure; and

(c) the record of employment indicates that the reason for issuing the record of employment is "illness or injury", "quit", "apprenticeship training", "return to school", "maternity", "parental", "retirement" or "compassionate care".

Waiver of apprenticeship completion requirement

10.1(19)    The certifying authority may, on receipt of an application that includes the apprentice's record of employment, waive the requirement for completion of an apprenticeship level and issue a proof-of-credit certificate for a period of employment if

(a) the apprentice performs at least 75% of the work required to complete a level of apprenticeship but fails to complete the level;

(b) the period of employment does not qualify as a qualifying period of employment only because of that failure; and

(c) the record of employment indicates that the reason for issuing the record of employment is "illness or injury", "quit", "apprenticeship training", "return to school", "maternity", "parental", "retirement" or "compassionate care".

35          The definition "eligible expenditure" in subsection 10.2(2) is amended in the part before clause (a) by striking out "the deduction" and substituting "any tax credit".

36          The following is added after section 10.2 and before the centred heading that follows it:

NUTRIENT MANAGEMENT TAX CREDIT

Nutrient management tax credit

10.2.1(1)   An eligible taxpayer is deemed to have paid on his or her balance-due day, on account of his or her tax payable under this Act for a taxation year, an amount equal to 10% of the total of all amounts each of which is an eligible expenditure of the taxpayer for the year.

Definitions

10.2.1(2)   The following definitions apply in this section.

"business entity" means a farmer or a corporation, partnership or trust. (« entreprise »)

"eligible equipment" means any of the following types of equipment, if it is used by the taxpayer for the purpose of eliminating or significantly reducing the risk that nutrients or pathogens in the organic waste used or created in the course of its business in Manitoba will be transported to a waterway:

(a) a solid-liquid separation system;

(b) an anaerobic digester;

(c) a gravity settling tank;

(d) a manure treatment system;

(e) a manure composting facility;

(f) a storage tank used for winter manure storage in an agricultural operation with fewer than 300 animal units as defined in the Livestock Manure and Mortalities Management Regulation, Manitoba Regulation 42/98. (« matériel admissible »)

"eligible expenditure" of a business entity for a taxation year means its capital cost, determined without the tax credit under this section being treated as government assistance, of a depreciable capital property

(a) that is an item of eligible equipment;

(b) that was acquired by the entity after April 17, 2012, and before 2016;

(c) that became available for use by the entity in the taxation year and before 2016, as determined under subsection 13(27) of the federal Act without reference to paragraph (c) or under subsection 13(28) of that Act without reference to paragraph (d); and

(d) that was not used or acquired for any use by anyone before the property was acquired by the entity. (« dépense admissible »)

"eligible taxpayer" means a farmer who is resident in Manitoba or a corporation with a permanent establishment in Manitoba that is carrying on the business of farming in Manitoba. (« contribuable admissible »)

"farmer" means an individual who is carrying on the business of farming in Manitoba as a sole proprietor or as a member of a partnership that is carrying on the business of farming in Manitoba. (« agriculteur »)

"organic waste" means a waste by-product, such as refuse or sewage, that consists of carbon compounds derived from living organisms. (« déchets organiques »)

Limitations

10.2.1(3)   Despite subsections (1) and (2), in determining a taxpayer's nutrient management tax credit

(a) no amount shall be included in respect of an acquisition of property unless and until the taxpayer has filed with the minister, no later than one year after the filing-due date for the taxation year in which the property was acquired, a prescribed form containing the information about the property stipulated by the form;

(b) no amount shall be included in respect of an acquisition of property if an amount in respect of the property is included in computing a tax credit claimed under any other section of this Act; and

(c) no amount shall be included in respect of an acquisition of property that was not acquired for use in the taxpayer's farming business.

Trust or partnership

10.2.1(4)   For the purpose of this section, an eligible taxpayer who was a beneficiary or partner of a business entity at the end of a taxation year of the entity that ended in the taxation year of the taxpayer may include, as an eligible expenditure of the taxpayer for the taxpayer's taxation year, the taxpayer's proportionate share of an eligible expenditure of the entity for its taxation year.

Proportionate share

10.2.1(5)   For the purpose of subsection (4), an eligible taxpayer's proportionate share of an eligible expenditure of a business entity for a taxation year of the entity is the proportion of the expenditure that the fair market value of the taxpayer's interest in the entity at the end of that taxation year is of the total fair market value at that time of all the interests in the entity, determined without regard to any premium or discount that applies to a majority or minority interest.

Tiered partnerships

10.2.1(6)   For the purpose of subsection (4), a person who is a member of a partnership that is a member of another partnership is deemed to be a member of that other partnership.

Regulations

10.2.1(7)   The Lieutenant Governor in Council may make regulations

(a) defining any term used in this section but not defined in this Act;

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

37          Subsection 10.4(3) of the English version is amended in clause (h) of the definition "eligible book" by adding "all" after "substantially".

38          Subsection 10.4.1(3) is amended by replacing clause (c) of the definition "eligible printer" with the following:

(c) prints books in the course of the person's business in Manitoba.

39(1)       Clause 11.7(2)(a) of the English version is amended by striking out "rule 7" and substituting "Rule 7".

39(2)       Subsection 11.7(3) is amended by striking out "An individual's" and substituting "Subject to subsection (3.1), an individual's".

39(3)       Subsection 11.7(3.1) is replaced with the following:

No carryback of unused credit from increased percentage

11.7(3.1)   The amount of unused mineral exploration tax credit that may be carried back to a taxation year before 2010 from a following taxation year must not exceed

(a) 10% of the individual's flow-through mining expenditure for that following year, if the unused credit is being carried back to a taxation year before 2009; and

(b) 20% of the individual's flow-through mining expenditure for that following year, if the unused credit is being carried back to the 2009 taxation year.

40(1)       Subsections 30(3) and (4) are replaced with the following:

Notice of appeal

30(3)       An appeal to the court must be made by

(a) filing a notice of appeal with the court in the judicial centre closest to where the taxpayer resides;

(b) serving the notice of appeal on the treasurer by sending two copies of the notice of appeal to the deputy head by registered mail; and

(c) if the Minister of Finance for Manitoba is not the treasurer, sending a copy of the notice of appeal to the Deputy Minister of Finance for Manitoba by registered mail. 

40(2)       Subsection 30(6) of the English version is amended by striking out "upon the filing of the copy of" and substituting "upon filing".

41          Subsection 66(3) of the English version is amended by striking out "For for purposes" and substituting "For the purposes".

PART 4

THE MUNICIPAL REVENUE (GRANTS AND TAXATION) ACT

C.C.S.M. c. M265 amended

42          The Municipal Revenue (Grants and Taxation) Act is amended by this Part.

43          The title is replaced with "THE MUNICIPAL TAXATION AND FUNDING ACT".

44          The heading for Part 2 is replaced with "BUILDING MANITOBA FUND".

45          Section 6 is amended

(a) by adding the following definition:

"local capital project" means a capital project for the benefit of a municipality that involves the acquisition or development of a facility, structure or land for public use, or the upgrading or replacement of such a facility or structure. (« projet d'immobilisations local »)

(b) in the definition "municipal grant",

(i) in the part before clause (a), by adding "under this Part" after "means a grant", and

(ii) in clause (c), by striking out "Lieutenant Governor in Council" and substituting "minister".

46          Subsections 7(3) and (4) are replaced with the following:

Annual credit to fund

7(3)        There shall be credited to the fund in each fiscal year the amounts appropriated for the purposes of the fund for that year.

Purposes of fund

7(4)        The amounts credited to the fund in a fiscal year may be used only for the payment of municipal grants and for expenses incurred by the government in support of local capital projects.

47          Section 8 is amended

(a) in the section heading, by striking out "municipal grants" and substituting "Building Manitoba Fund"; and

(b) in the part before clause (a),

(i) by striking out "beginning after March 31, 2011", and

(ii) by striking out "for municipal grants under this Part" and substituting "for the purposes of the fund".

48(1)       Subsection 8.1(1) is amended

(a) in the section heading, by adding "and expenses" after "grants"; and

(b) in clause (a), by striking out "municipal grants paid" and substituting "amounts paid out of or charged to the fund".

48(2)       Subsection 8.1(2) is amended

(a) in the section heading, by adding "and expenses" after "grants"; and

(b) in clause (b), by striking out "municipal grants paid" and substituting "amounts paid out of or charged to the fund".

49(1)       Subsection 9(1) is repealed.

49(2)       Subsection 9(1.1) is amended

(a) by striking out "The grants under subsection (1)" and substituting "The municipal grants for a fiscal year"; and

(b) by striking out "Minister of Local Government" and substituting "minister".

49(3)       Subsection 9(2) is replaced with the following:

Terms and conditions

9(2)        Subject to the regulations, the minister may impose terms and conditions on a municipal grant.

50          Section 9.1 is replaced with the following:

Annual report

9.1         For each fiscal year, the annual report for the department over which the minister presides must include a report on how the amounts credited to the fund for that year were used.

51          Section 10 is amended

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

(b) respecting municipal grants, including reporting requirements for grant recipients and terms and conditions that may be imposed on grants;

(b) in clause (c), by striking out "a grant made or to be made to a municipality under this Part" and substituting "a municipal grant".

PART 5

THE RETAIL SALES TAX ACT

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

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

53          The centred heading before section 1 is replaced with "DEFINITIONS AND GENERAL MATTERS".

54(1)       Subsection 1(1) is amended in subclause (c)(iv) of the definition ""purchase price" or "sale price"" by striking out "The Municipal Revenue (Grants and Taxation) Act" and substituting "The Municipal Taxation and Funding Act".

54(2)       Subsection 1(1) is amended in the definition "purchase" by striking out "or a taxable service" and substituting ", a taxable service or insurance".

54(3)       Subsection 1(1) is amended in paragraph (i)(ii)(C) of the definition "sale" in the English version, by striking out "(settler's effects)" and substituting "(settlers' effects)".

54(4)       Subsection 1(1) is amended in the definition "vendor"

(a) in the part before clause (a), by striking out "a person who in the course of business";

(b) by replacing clauses (a) and (b) with the following:

(a) a person who sells or leases tangible personal property, or offers or keeps tangible personal property for sale or lease, directly to a purchaser at a retail sale in the province,

(b) a person who sells a taxable service, or offers a taxable service for sale, directly to a purchaser at a retail sale in the province,

(b.1) an insurer that provides insurance in respect of which tax is payable under section 4.1, or

(b.2) a person, other than a holder of group insurance, who charges or receives payment of a premium on which tax is payable under section 4.1,

(c) in clause (c), by striking out "from a purchaser".

54(5)       Subsection 1(1) is further amended by adding the following definitions:

"group insurance contract" means a single insurance contract that covers a number of persons, but does not include a contract that covers only the individual who makes the contract and his or her family members; (« contrat d'assurance collective »)

"holder", in relation to a group insurance contract, means the employer or other person who makes the contract with the insurer; (« titulaire »)

"insurance" and "insurer" have the same meaning as in The Insurance Act; (« assurance » et « assureur »)

"premium" means a single or periodic payment to be made for insurance and includes

(a) any amount charged in connection with the insurance, and

(b) any amount charged by the holder of a group insurance contract to a person who is covered by the contract,

but does not include financing charges, carrying charges or interest charges on account of deferred payments if the amount of such financing, carrying or interest charges is in addition to the usual amounts payable for insurance and the amount is segregated on the invoice or billed separately; (« prime »)

"tax proceeds" means money collected or required to be collected on account of or as proceeds of tax; (« produit de la taxe »)

55          The following is added after section 1.1 and before the centred heading "TAX ON TANGIBLE PERSONAL PROPERTY":

Tax payable to the government

1.2         Every tax imposed by this Act is payable to the government.

56          The centred heading before section 2 is replaced with "IMPOSITION OF TAX".

57          The centred subheading "Tax on Tangible Personal Property and Taxable Services" is added after the centred heading before section 2.

58(1)       Subsection 2(1) is replaced with the following:

Tax on tangible personal property and taxable services

2(1)        Every purchaser of tangible personal property or a taxable service must pay tax at the rate of 7% of the fair value of the property or service.

58(2)       Subsection 2(1.2) is amended in the part before clause (a) by striking out "some but not all" and substituting "at least 80%".

58(3)       Subclause 2(5.1)(b)(ii) is replaced with the following:

(ii) $40 in the case of a new vehicle, or $20 in the case of a used vehicle.

58(4)       Subsection 2(17) is repealed.

59(1)       Subsection 2.3(1) is amended in the definition "reciprocal jurisdiction" by striking out "is declared by regulation to be a reciprocal jurisdiction" and substituting "participates in the International Registration Plan".

59(2)       Subsection 2.3(2) is amended in the part before clause (a) by striking out "to Her Majesty in right of Manitoba".

59(3)       Subsection 2.3(9.1) is amended by striking out "in a court of competent jurisdiction".

59(4)       Clause 2.3(13)(a) is amended by striking out "to Her Majesty in right of Manitoba".

60          The centred heading before section 3 is replaced with the centred subheading "Tax Exemptions for Tangible Personal Property".

61(1)       Clause 3(1)(a) is replaced with the following:

(a) food and beverages the supply of which is a zero-rated supply under Part III of Schedule VI of the Excise Tax Act (Canada);

61(2)       Clause 3(1)(e) is replaced with the following:

(e) drugs or substances the supply of which is a zero-rated supply under Part I of Schedule VI of the Excise Tax Act (Canada) when purchased for human use;

61(3)       Clauses 3(1)(f) and (f.1) are replaced with the following:

(f) dental appliances, if purchased in accordance with an order of a dentist;

(f.1) optical appliances, if purchased in accordance with an order of an optometrist or physician, and clip-on sunglasses if they are included in the purchase price of eyeglasses exempt under this clause;

61(4)       Clause 3(1)(h) is amended by striking out "equipment" and substituting "tangible personal property".

61(5)       Clause 3(1)(v) is repealed.

61(6)       Clause 3(1)(zz) is amended by adding ", recycled asphalt" after "gravel".

61(7)       Clause 3(18.3)(b) is replaced with the following:

(b) for at least six months after that partnership interest is issued,

(i) no amount is paid or payable to the seller as a return of capital on that partnership interest, and

(ii) the partnership interest remains the property of

(A) the seller, or

(B) if the seller is a corporation and is wound up within the six-month period, the former shareholders to whom the partnership interest was distributed on the winding-up in proportion to their shareholdings; and

61(8)       Subclause 3(18.4)(a)(ii) is replaced with the following:

(ii) tax under this Act was paid on the full purchase price of the property when it was previously acquired by the corporation or the shareholder;

61(9)       Subclause 3(18.5)(a)(ii) is replaced with the following:

(ii) tax under this Act was paid on the full purchase price of the property when it was previously acquired by the partnership or the member;

61(10)      The following is added after subsection 3(18.5):

Refund

3(18.6)     Subsections (18) to (18.5) do not apply if the tax paid in respect of the previous purchase or acquisition of the property has been refunded under section 26.

62          The centred heading before section 4 is replaced with the centred subheading "Taxable Services".

63          Clause 4(1)(j) is replaced with the following:

(j) the following personal services:

(i) spa services, but not including massage therapy or reflexology if the fee for the massage therapy or reflexology is segregated on the invoice or billed separately,

(ii) non-medical skin and aesthetician services,

(iii) hair services, except for a haircut and any other hair services purchased with a haircut if the total cost of the haircut and the other services, if any, is less than $50,

(iv) body modification services, including tattooing, piercing, scarification and branding,

(v) tanning services.

64          The following is added after section 4 and before the centred heading that follows it:

Tax on Insurance

Tax on insurance

4.1(1)      Every person who enters into or renews an insurance contract with an insurer must pay tax at the rate of 7% of the premiums payable under the contract if

(a) the person resides in or carries on business in Manitoba; or

(b) the contract covers

(i) the risks of a person who resides in or carries on business in Manitoba,

(ii) real property in Manitoba,

(iii) personal property in or ordinarily situated in Manitoba,

(iv) title to real property in Manitoba,

(v) the repayment of a debt secured by real property in Manitoba or personal property ordinarily situated in Manitoba,

(vi) the performance of an obligation, or repayment of a debt, by a person who resides in or carries on business in Manitoba, or

(vii) an event taking place in Manitoba.

Tax payable by person covered by group insurance

4.1(2)      Every person who is covered by a group insurance contract must pay tax at the rate of 7% of the premiums payable by the person if

(a) the person resides in or carries on business in Manitoba; or

(b) the contract covers the person's

(i) real property in Manitoba,

(ii) personal property in or ordinarily situated in Manitoba,

(iii) title to real property in Manitoba,

(iv) risks in respect of a debt that is secured by real property in Manitoba or by personal property ordinarily situated in Manitoba,

(v) risks in respect of a debt owed by a person who resides in or carries on business in Manitoba, or

(vi) risks in respect of an event taking place in Manitoba.

Tax payable by holder of group insurance

4.1(3)      Despite subsection (1), the tax payable by a holder of a group insurance contract is reduced by the amount, if any, of the tax paid under subsection (2).

Time for payment of tax — definite term contract

4.1(4)      The tax payable in respect of an insurance contract for a definite term, other than a group insurance contract, is payable — on the total of all premiums payable in respect of the contract — on the day that coverage under the contract or renewal begins.

Time for payment of tax — group and indefinite term contracts

4.1(5)      The tax payable in respect of a group insurance contract or a contract for an indefinite term is payable on each premium when the premium becomes payable.

Duties of holder of group insurance

4.1(6)      In addition to paying tax under this section, the holder of a group insurance contract must

(a) collect any tax payable under subsection (2) on premiums payable to the holder; and

(b) remit the tax proceeds to the vendor when the holder pays the premium to the vendor or when it becomes payable, whichever is earlier.

Exemptions

4.1(7)      Despite subsections (1) and (2), no tax is payable under this section in respect of

(a) an insurer's agreement to undertake or reinsure an insurance contract made by another insurer or group of insurers;

(b) a contract insuring real or personal property used exclusively or nearly exclusively in farming;

(c) insurance providing risk protection against uncontrollable perils related to the production of crops or livestock, including hail insurance;

(d) insurance in respect of a vehicle registered under The Drivers and Vehicles Act, other than an insurance contract

(i) covering only a vehicle rented in Manitoba and other risks related to the vehicle rental, and

(ii) covering the property and liability of a person who takes possession of vehicles for display, sale, storage, repair, maintenance, cleaning or parking, or for another similar commercial purpose, including the person's liability for damage to customers' vehicles;

(e) insurance in respect of the life of an insured individual, or the lives of an insured individual and his or her family members, that is provided under a life insurance contract (other than a group insurance contract), but not including insurance under a contract effected by a creditor in respect of the life of his or her debtor;

(f) insurance in respect of the health care costs of insured individuals, including insurance covering health care equipment, dental care, prescription drugs, vision care, ambulance, hospital room, counselling and therapy services, and long term care, but not including insurance covering the life, disability, critical illness or accidental death and dismemberment of an insured individual or an insured individual and his or her family members;

(g) insurance in respect of the disability, critical illness or accidental death and dismemberment of an individual, other than insurance under a group insurance contract;

(h) marine insurance as defined in The Marine Insurance Act;

(i) insurance in respect of a commercial fishing boat where the purchase of the boat is exempt from tax under clause 3(1)(p);

(j) insurance in respect of an aircraft where the purchase of the aircraft is exempt from tax under clause 3(1)(i) as farm machinery or under subsection 3(24);

(k) an insurance contract, including a group insurance contract,

(i) entered into by an Indian or a band in respect of real or personal property owned by an Indian or band and situated on a reserve or in respect of a risk, peril or event that is wholly on a reserve, or

(ii) in respect of an Indian residing on a reserve;

(l) the purchase of an annuity contract;

(m) insurance obtained by an employer in respect of employees who reside outside Manitoba, or in respect of former employees who no longer reside in Manitoba;

(n) insurance in respect of the life, health or well-being of an individual who does not reside in Manitoba;

(o) insurance on property that is wholly outside Manitoba or in respect of a risk, peril or event that is wholly outside Manitoba;

(p) trip interruption insurance; or

(q) endowment insurance as defined under The Insurance Act.

No tax payable on statutory schemes

4.1(8)      No tax is payable under this section on any amount paid under

(a) The Workers Compensation Act;

(b) the Canada Pension Plan; or

(c) the Employment Insurance Act (Canada).

Premium paid to vendor not collecting tax

4.1(9)      Every person who enters into an insurance contract with, or pays a premium to, a vendor who does not collect the tax payable in respect of the contract or premium must remit the tax to the minister in accordance with the regulations.

Apportionment of premium

4.1(10)     If a contract provides insurance on which tax is payable under this section and other insurance on which tax is not payable

(a) the vendor must specify the insurance on which tax is payable and the premium, or portion of the premium, relating to that taxable insurance; and

(b) if the vendor does not do so, tax is payable on the full amount of the premiums payable under the contract.

Promotional and discounted insurance

4.1(11)     An insurer must pay tax at the rate of 7% of the amount, if any, by which the fair market value of an insurance contract exceeds the value of the premiums received in respect of the contract. The tax under this subsection is payable when the insurance coverage begins.

65(1)       Subsection 5(1) is replaced with the following:

Vendor to have RST number

5(1)        A person without an RST number must not carry on business as a vendor or collect tax.

65(2)       Subsection 5(6) is amended in the part after clause (c) by striking out "or services" and substituting ", services or insurance".

65(3)       Subsection 5(7) is amended by striking out "9(2.3), (2.4) or (2.6) if, because of that subsection," and substituting "9(2.3), (2.4) or (2.6) or 21(5) or section 21.1 if, because of that provision,".

65(4)       Subsection 5(8) is amended by striking out "$400." and substituting "$800".

66(1)       Subsection 9(2) is replaced with the following:

Vendor to file returns and remit tax

9(2)        A vendor must

(a) collect the tax payable under section 2 or subsection 4.1(1) at the time that it is payable;

(b) in the case of a vendor in respect of a group insurance contract, collect from the holder an amount equal to the tax payable under subsection 4.1(2) on premiums payable to the holder;

(c) remit the tax proceeds to the minister in accordance with the regulations; and

(d) file returns with the director in accordance with the regulations.

66(2)       Subsections 9(2.1) and (2.2) are replaced with the following:

Recovery of amount remitted but not collected

9(2.1)      If

(a) a vendor remits an amount on account of tax payable by a person from whom the vendor is required to collect the tax under this Act; and

(b) the vendor did not collect the tax from the person;

the vendor is entitled to recover that amount as a debt owing by the person to the vendor. For the purpose of this subsection, "vendor" includes a holder of group insurance.

Tax remitted on person's behalf

9(2.2)      A person's obligation under this Act to collect and remit tax is satisfied if the tax is collected and remitted on the person's behalf.

66(3)       The following is added after subsection 9(2.7):

Excess amounts collected must be remitted

9(2.8)       Despite any other provision of this Act, where a person collects as tax an amount that is not payable as tax, or that is in excess of the amount payable as tax,

(a) the person is deemed to be a vendor under this Act;

(b) the amount so collected is deemed to be tax under this Act; and

(c) the person shall remit the tax in accordance with the regulations.

67          The following is added after section 21:

Vendor not required to file return or remit tax

21.1        Despite subsection 9(2), if a vendor has remitted the amount to be remitted on account of the tax payable in respect of a taxable service, an insurance contract or a premium, no other vendor is required to file a return or remit any tax payable in respect of that service, contract or premium.

68          Subsections 22(1) and 22.1(1.1) are amended by striking out ", on behalf of her Majesty in right of Manitoba,".

69          Subsection 22.2(5) is amended by striking out "Her Majesty in right of Manitoba" and substituting "the government".

70(1)       Subsection 26(2.2) is replaced with the following:

Refund application

26(2.2)     To obtain a refund under this Act of an amount that is paid or remitted as tax, a person must file with the director, within two years after the date the amount was received as tax, a signed application that includes

(a) the reasons for the refund request;

(b) evidence sufficient to satisfy the director that the person is entitled to the refund; and

(c) if another person is acting on behalf of the person entitled to the refund, a written authorization signed by the person entitled to the refund.

70(2)       The following is added after subsection 26(9.2):

Restriction

26(9.3)     A person is not entitled to a refund under subsection (4), (8) or (9) in respect of the person's purchase and sale of the same vehicle or aircraft if, when the person sells the vehicle or aircraft, the purchaser acquires it exempt from tax under subsections 3(18) to (18.5).

70(3)       Subsection 26(12) is replaced with the following:

Refund for farm storage buildings

26(12)      The minister may refund a portion of the tax paid by a farmer in respect of the purchase of a farm storage building or structure, or the materials used to construct a farm storage building or structure, if at least 80% of the floor area of the building or structure is designed, equipped and used exclusively or nearly exclusively for the storage of crops grown for sale. The portion of the tax that may be refunded is calculated in accordance with the following formula:

C/T

In this formula,

C

is the floor area used exclusively or nearly exclusively for storing crops;

T

is the total floor area of the building or structure.

70(4)       Subsection 26(16) is replaced with the following:

Refund for vehicle or aircraft purchased for use outside Manitoba

26(16)      The minister may refund the tax paid in Manitoba by a person on his or her purchase of a vehicle, off-road vehicle or aircraft if the person or a family member of the person

(a) takes the vehicle, off-road vehicle or aircraft out of Manitoba for permanent use outside Manitoba within 30 days after it was purchased; and

(b) pays any tax payable in the jurisdiction to which the purchased property is taken for use.

71          Section 27 is replaced with the following:

Crown bound

27          This Act binds the Crown.

72(1)       Clauses 29(1)(d) and (e) are amended by adding "proceeds" after "tax".

72(2)       Clause 29(1)(i) is amended by striking out "or service" and substituting ", service or insurance".

72(3)       The following is added after clause 29(1)(r.1):

(r.2) requiring a person who purchases tangible personal property, a taxable service or insurance, on a tax-exempt basis, to provide the vendor with a signed statement;

PART 6

THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT

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

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

74(1)       Clause 10(2)(c) is amended in the part before subclause (i) by striking out ", including tear tape,".

74(2)       The following is added after subsection 10(3):

Stop order

10(3.1)     The director may, by written order, require a person to stop or refrain from doing any activity for which a tax authorization is required if the person is doing the activity without the required tax authorization.

74(3)       Subsection 10(4) is replaced with the following:

Opportunity to make submission

10(4)       Before refusing to issue a tax authorization or issuing an order under subsection (3) or (3.1), the director must notify the affected person in writing

(a) that he or she intends to refuse to issue the tax authorization or intends to issue the order, and why he or she intends to do so; and

(b) that the person may, within 14 days after the notice is served on the person, make a written submission setting out the reasons that decision or order should not be made or issued.

74(4)       Subsection 10(6) is replaced with the following:

When order becomes effective

10(6)       Subject to subsection (7), an order under subsection (3), (3.1) or (5) becomes effective when it is served on the person or at the date and time specified in the order, whichever is later.

75          Subsection 14(3) is amended in the part before clause (a) by striking out "The Corporation Capital Tax Act,".

76          Subsection 38(3) is amended in the part before clause (a) by striking out "clause 17(4.2)(a)" and substituting "subsection 17(2)".

77(1)       Subsection 39(3) is amended by striking out "$20." and substituting "$25".

77(2)       Subsection 39(4) is amended by replacing clauses (a) to (d) with the following:

(a) subsection 10(3.1) (stop order);

(b) clause 15(1)(a) or (b) (information returns and reports);

(c) clause 15(1)(e) (trust accounts);

(d) subsection 21(1) (order to produce records, etc.); or

(e) section 25.1 (faulty dye injector pump);

78          Section 39.1 is amended by striking out "mark, stamp or tear tape" wherever it occurs and substituting "mark or stamp".

79          Subsection 46(3) is replaced with the following:

Determination of taxable amount

46(3)       In making an assessment or reassessment under The Retail Sales Tax Act in respect of a purchase of tangible personal property, a taxable service or insurance, the director may estimate the amount on which tax is payable if no purchase price, rental fee or premium was paid or if, in the director's opinion,

(a) the amount taken as the basis for calculating the tax was

(i) less than the fair market value of the property, service or insurance, or of the consideration given for it, or

(ii) in the case of tangible personal property or a taxable service, less than the fair value determined in accordance with The Retail Sales Tax Act or the regulations under that Act; or

(b) the actual purchase price, rental fee or premium cannot be determined.

80(1)       Subsection 53(1) is amended by adding "and" at the end of clause (a) and replacing clauses (b) and (c) with the following:

(b) the person files with the director, within two years after the day the amount was paid, a signed application that includes

(i) the reasons for the refund request,

(ii) evidence sufficient to satisfy the director that the person is entitled to the refund, and

(iii) if another person acting on behalf of the person entitled to the refund makes the application, a written authorization signed by the person entitled to the refund.

80(2)       Subsection 53(2) is amended by adding "and" at the end of clause (a) and replacing clauses (b) and (c) with the following:

(b) the collector or deputy collector files with the director, within two years after the day the amount was remitted, a signed application that includes

(i) the reasons for the refund request,

(ii) evidence sufficient to satisfy the director that the collector or deputy collector is entitled to the refund, and

(iii) if another person acting on behalf of the collector or deputy collector makes the application, a written authorization signed by the collector or deputy collector.

81          Subsection 53.1(1) is amended by adding the following definitions:

"buyer" includes a person whose risk is covered by an insurance policy. (« acheteur »)

"sale" includes the provision of insurance. (« vente »)

82          Clause 58(a) of the English version is amended by striking out "to deny, suspend or cancel a tax authorization".

83          Subsection 65(3) is replaced with the following:

Enforcement of lien on real property

65(3)       Once the certificate has been registered in the land titles office, the director may take sale proceedings on the lien as if the lien were a judgment registered under The Judgments Act.

84(1)       Clause 75(2)(d) is amended by striking out "or carrier decal to the director as required by section 11" and substituting "as required by subsection 11(1)".

84(2)       Clauses 75(3)(a) to (c) are replaced with the following:

(a) subsection 10(3.1) (stop order);

(b) section 15 (reporting and remittance requirements);

(c) subsection 17(4) (recordkeeping requirements);

(d) subsection 21(1) (requirement to produce records).

84(3)       Subsection 75(4) of the French version is amended

(a) in subclause (a)(ii), by striking out "500" and substituting "500 $"; and

(b) in subclause (b)(ii), by striking out "1 000" and substituting "1 000 $".

85          Subsection 76(4) of the French version is amended

(a) in subclause (a)(ii), by striking out "1 000" and substituting "1 000 $"; and

(b) in subclause (b)(ii), by striking out "2 000" and substituting "2 000 $".

86(1)       Clauses 80(2)(d) and (d.1) are amended by striking out "or offers to sell".

86(2)       Clause 80(2)(g) is replaced with the following:

(g) sells tobacco contrary to subsection 4(1), (2), (3), (4) or (5) of The Tobacco Tax Act; or

86(3)       The following is added after subsection 80(2):

Interpretation

80(2.1)     In clauses (2)(d), (d.1) and (g), "sells" includes offers for sale, exposes for sale and distributes, whether or not the distribution is made for consideration.

86(4)       Subsection 80(4) of the French version is amended

(a) in subclause (b)(i), by striking out "2 000" and substituting "2 000 $";

(b) in subclause (b)(ii), by striking out "20 000" and substituting "20 000 $"; and

(c) in subclause (b)(iii), by striking out "100 000" and substituting "100 000 $".

87          Clause 113(2)(a) is amended by striking out "Director, The Veterans' Land Act" and substituting "the Director under the Veterans' Land Act (Canada)".

CONDITIONAL AMENDMENT

Conditional amendment

88          If Bill 17, introduced in the First Session of the 40th Legislature and entitled The Non-Smokers Health Protection Amendment Act, is enacted, section 7 of that Act is replaced with the following:

Consequential amendment, C.C.S.M. c. T2

7           Clause 80(2)(g) of The Tax Administration and Miscellaneous Taxes Act is amended by striking out "(3),".

PART 7

THE TOBACCO TAX ACT

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

89          The Tobacco Tax Act is amended by this Part.

90          Subsection 2(1) is amended

(a) in clause (a), by striking out "22.5¢" and substituting "25¢";

(b) in clause (c), by striking out "20¢" and substituting "22.5¢"; and

(c) in clause (d), by striking out "21.5¢" and substituting "24¢".

91          Clause 3.1(3)(a.1) is replaced with the following:

(a.1) the cigarettes or fine cut tobacco were purchased outside Manitoba in packaging which meets the requirements of the Excise Act, 2001 (Canada), and the quantity in the person's possession does not exceed one unit of cigarettes and one unit of fine cut tobacco;

92(1)       Subsections 3.2(1) and (2) are amended by striking out "or offer to sell".

92(2)       The following is added after subsection 3.2(2):

Definition

3.2(3)      In this section, "sell" includes offer for sale, expose for sale and distribute, whether or not the distribution is made for consideration.

93          The following is added after clause 3.6(b):

(b.1) possesses the tobacco product in accordance with a valid permit issued under section 4.1;

94          The following is added after clause 3.7(b):

(b.1) possesses the tobacco in accordance with a valid permit issued under section 4.1;

95(1)       Subsections 4(1), (2), (3), (4) and (5) are amended by striking out "or offer to sell".

95(2)       The following is added as subsection 4(7):

Definition

4(7)        In this section, "sell" includes offer for sale, expose for sale and distribute, whether or not the distribution is made for consideration.

96          Section 4.1 is amended in the part before clause (a) by adding "any number of units of tobacco, including" before "cigarettes".

97          Section 13.1 is replaced with the following:

Refund — loss of tobacco inventory

13.1        A holder of a valid retail dealer's licence may obtain a refund of 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 files with the director, within two years after the date of the loss of the tobacco products, a signed application that includes

(i) the reasons for the refund request,

(ii) evidence sufficient to satisfy the director that the amount was paid by the dealer and that the loss occurred, and

(iii) if another person is acting on the dealer's behalf, a written authorization signed by the dealer.

PART 8

MEMBERS' SALARIES

Members' Salaries Regulation amended

98(1)       The Members' Salaries Regulation made under The Legislative Assembly Act is amended by this section.

98(2)       The following is added after subsection 1.1(4):

No adjustments for 2012-2013 and 2013-2014

1.1(5)      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 2012-2013 fiscal year or the 2013-2014 fiscal year.

Definition of "commissioner"

99(1)       In this section, "commissioner" means the commissioner appointed under section 52.7 of The Legislative Assembly Act after the 2011 general election.

No increase for 2012-2013 and 2013-2014

99(2)       The commissioner's decisions and regulations under sections 52.8 and 52.12 of The Legislative Assembly Act must not increase, in the 2012-2013 fiscal year or the 2013-2014 fiscal year,

(a) the basic annual salary for members; or

(b) the additional salary for members of the Executive Council.

PART 9

COMING INTO FORCE

Coming into force

100(1)      Except as otherwise provided in this section, this Act comes into force on the day it receives royal assent.

Part 1: The Corporation Capital Tax Act

100(2)      Sections 2, 5 and 6 are deemed to have come into force on April 13, 2011.

100(3)      Section 3 is deemed to have come into force on April 18, 2012 and applies to fiscal years ending on or after that date.

100(4)      Section 4 is deemed to have come into force on January 1, 2011.

Part 2: The Fuel Tax Act

100(5)      Sections 8, 10, 11, 13 and 16 are deemed to have come into force on May 1, 2012.

100(6)      Section 9 is deemed to have come into force on April 1, 2011.

Part 3: The Income Tax Act

100(7)      Subsection 19(1) is deemed to have come into force on January 1, 2002.

100(8)      The following provisions are deemed to have come into force on April 17, 2012:

(a) subsection 19(2);

(b) sections 28, 29 and 32;

(c) subsections 34(1), (3) and (7);

(d) section 36.

100(9)      Subsections 20(2) and 25(1) are deemed to have come into force on January 1, 2011.

100(10)     Sections 21, 22 and 24 and subsection 25(3) are deemed to have come into force on January 1, 2012.

100(11)     Sections 30 and 31 are deemed to have come into force on April 13, 2011.

100(12)     Subsections 34(2) and (4) come into force on January 1, 2013, and apply to the hiring incentive for a qualifying period of employment that an apprentice completes after 2012.

100(13)     Subsections 34(5) and (6) come into force on January 1, 2013.

100(14)     Section 38 is deemed to have come into force on April 12, 2011.

100(15)     Subsections 39(2) and (3) are deemed to have come into force on January 1, 2009.

Part 4: The Municipal Revenue (Grants and Taxation) Act

100(16)     Part 4 is deemed to have come into force on April 1, 2012.

Part 5: The Retail Sales Tax Act

100(17)     Subsection 54(1) is deemed to have come into force on April 1, 2012.

100(18)     The following provisions come into force on July 15, 2012:

(a) subsections 54(2), (4) and (5) and 58(4);

(b) section 64;

(c) subsections 65(1) and (2);

(d) sections 66 and 72.

100(19)     Subsections 58(3) and 61(6) are deemed to have come into force on May 1, 2012.

100(20)     Section 63, subsection 65(3) and section 67 come into force on July 1, 2012.

Part 6: The Tax Administration and Miscellaneous Taxes Act

100(21)     Subsection 74(1) and section 78 come into force on October 1, 2012.

100(22)     Section 75 is deemed to have come into force on January 1, 2011.

100(23)     Section 76 is deemed to have come into force on October 25, 2007.

100(24)     Subsection 77(1) is deemed to have come into force on May 1, 2012.

100(25)     Sections 79 and 81 come into force on July 15, 2012.

Part 7: The Tobacco Tax Act

100(26)     Section 90 is deemed to have come into force on April 18, 2012.

Part 8: Members' Salaries

100(27)     Subsection 98(2) is deemed to have come into force on March 23, 2012.