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The Budget Implementation and Tax Statutes Amendment Act, 2017

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S.M. 2017, c. 40

Bill 36, 2 nd Session, 41st Legislature

The Budget Implementation and Tax Statutes Amendment Act, 2017

Explanatory Note

This note is a reader's aid and is not part of the law.

This Act implements measures in the 2017 Manitoba Budget and makes various other amendments to tax legislation.

BUDGET MEASURES

The budget measures implemented by this Act include the following:

CORPORATION CAPITAL TAX (PART 1)

  • eliminating the capital tax deduction effective for fiscal years ending after April 30, 2017 [s. 10]

INCOME TAX (PART 2)

  • amending the Act to provide support for the following credits, which were tied to federal credits that have been eliminated:

    –   the fitness tax credit for children and young adults [s. 20(1) and (2)]

    –   the children's arts and cultural activity tax credit [s. 20(3) and (4)]

    –   the Manitoba education amount forming part of the tuition and education amount [s. 20(5) and (6)]

  • limiting the volunteer firefighter and search and rescue tax credit to those who are resident in Manitoba at the end of the year [s. 20(7)]
  • reducing the maximum graduate's tuition fee income tax rebate for 2017 to $500 and eliminating it for 2018 and subsequent years [s. 21]
  • increasing the maximum political contribution tax credit to $1,000 [s. 23]
  • modifying the primary caregiver tax credit by

    –   limiting the total credit to $1,400 for 2017 and subsequent years

    –   allowing a person to claim the credit in respect of more than three recipients

    –   disallowing a credit for a period of care before the year in which the application for the credit is submitted to the assessing authority [s. 32]

  • eliminating the advance tuition fee income tax rebate for courses beginning after April 30, 2017 [s. 33]
  • extending the manufacturing investment tax credit by three years to December 31, 2020 and reducing the non- refundable portion from 2% to 1% for property acquired after April 11, 2017 [s. 35]
  • reducing the research and development tax credit from 20% to 15% for eligible expenditures made after April 11, 2017 [s. 36]
  • narrowing the scope of the paid work experience tax credit by making government agencies and similar entities ineligible for the credit for taxation years ending after 2016 [s. 40 and 90(14)]
  • extending

    –   the book publishing tax credit by one year to December 31, 2018 [s. 43]

    –   the interactive digital media tax credit by three years to December 31, 2022 [s. 44]

    –   the mineral exploration tax credit by three years to December 31, 2020 [s. 46]

  • eliminating

    –   the cooperative development tax credit for contributions made after April 11, 2017 [s. 37]

    –   the Neighbourhoods Alive! tax credit for contributions made after April 11, 2017 [s. 38]

    –   the data processing investment tax credits for property acquired after April 11, 2017 [s. 39]

    –   the odour-control tax credit for expenditures made after April 11, 2017 [s. 41]

    –   the nutrient management tax credit for expenditures made after April 11, 2017 [s. 42]

PROPERTY TAX AND INSULATION ASSISTANCE (PART 3)

  • eliminating the riparian property tax reduction except for unused credits for five-year commitments made before April 12, 2017 [s. 54]

MISCELLANEOUS PROVISIONS (PART 6)

  • repealing The Affordable Utility Rate Accountability Act and the regulation under that Act effective for fiscal years ending after March 31, 2017 [s. 80]
  • eliminating licensing requirements under The Animal Care Act for companion animal kennels, breeders and retail stores [s. 81]
  • amending The Financial Administration Act to respond to changes in how the Bank of Canada publishes foreign exchange rates [s. 82]
  • enabling a civil servant to be designated as the administrator under The Labour-Sponsored Venture Capital Corporations Act [s. 85]
  • enabling fees to be imposed by regulation for registrations and appointments under The Marriage Act [s. 86]
  • amending The Municipal Taxation and Funding Act to replace the Building Manitoba Fund with the Strategic Municipal Investment Fund [s. 87]

OTHER AMENDMENTS

Other amendments to tax legislation include

  • amendments to The Corporation Capital Tax Act to

    –   repeal outdated provisions, dates and references and simplify and clarify existing provisions [s. 2(1), 3 to 9, 11, 12 and 14]

    –   move provisions from the Corporation Capital Tax Regulation into the Act and repeal the regulation and related regulation-making authority [s. 2(2), 13, 15 and 16]

  • an amendment to The Fuel Tax Act to add the requirement (previously found in The Motive Fuel Tax Act and The Gasoline Tax Act) for the operator of a commercial vehicle to obtain a single-trip permit for an interjurisdictional trip if the vehicle is not operated under a carrier licence [s. 83]
  • an amendment to The Health and Post Secondary Education Tax Levy Act to improve consistency in the use of terminology [s. 84]
  • amendments to The Income Tax Act to

    –   update outdated references to the Commissioner of Revenue, Canada Customs and Revenue Agency and Revenue Canada [s. 18, 47 and 49]

    –   update the donations tax credit because of recent changes to the federal donations tax credit to which the Manitoba credit is tied [s. 20(8)]

    –   make corrections to the French version of various provisions [s. 19(b)(i), 22, 23(2)(a) and (d), 23(4)(a), 24 to 26, 27(1), 28, 29(4), 30, 31 and 38(2)]

    –   clarify that only one principal residence may be designated for an individual or the individual's cohabiting spouse or common-law partner [s. 26(4)(a)]

    –   enable the seniors' education property tax credit and the seniors' school tax rebate to be determined by regulation [s. 27(3) and (5) and 29(2) and (3)]

    –   if both the education property tax credit and the seniors' school tax rebate are claimed, require them to be claimed by the same individual [s. 29(1)]

    –   enable the process for obtaining the primary caregiver tax credit to be changed by regulation [s. 32(3)]

    –   clarify the references to a corporation's taxable income earned in Manitoba [s. 34(1) to (3)]

    –   enable a credit union's preferred-rate amount to be determined by regulation [s. 34(4) and (5)]

    –   eliminate the Manitoba equity tax credit [s. 45]

    –   authorize the minister to enter into an information sharing agreement with the federal government [s. 48]

  • amendments to The Property Tax and Insulation Assistance Act to

    –   enable the maximum farmland school tax rebate to be set by regulation [s. 51 and 52]

    –   repeal the provisions for the seniors' school tax rebate (which was moved into The Income Tax Act for the 2016 taxation year) [s. 53]

  • amendments to The Retail Sales Tax Act to

    –   improve consistency in the use of terminology [s. 56, 62 and 65(6)]

    –   clarify the duty of a registered vehicle dealer to collect and remit tax on all taxable sales [s. 57(1)]

    –   change the tax reduction or refund available to a person who buys a vehicle (or aircraft) and sells it or another one within six months of the purchase — by basing the reduction or refund on the lesser of the tax on the purchase and 8% of the sale price of the sold vehicle instead of the least of those amounts and the tax paid by the person on the sold vehicle — as long as the person paid the tax payable on the sold vehicle [s. 57(2) and (3) and 65]

    –   clarify the tax rate to be used in the tax calculation for fleet vehicles [s. 58]

    –   clarify the taxation of returnable packaging [s. 59]

    –   clarify that depreciable property used in printing does not qualify for the exemption for consumables used in printing [s. 60(1)]

    –   extend the tax exemption for a sale to a new corporation or partnership to circumstances where tax was not paid by the seller because the property was acquired under a bequest, on the devolution of an estate or as a gift from a family member who paid tax or acquired it in a transaction that was not a sale [s. 60(2)]

    –   clarify the exemption for sale of a manufacturing plant [s. 60(3)]

    –   remove an outdated reference [s. 61(1)]

    –   apply the tax to 10% of the purchase price where the price for installing an underground cable or natural gas line is not shown separately from the price for the related earthwork [s. 61(2) and (3)]

    –   consolidate the provisions in the Act and the regulations that require an RST number to be provided by the purchaser and noted on the invoice [s. 63 and 66]

    –   correct an error in the French version [s. 64(1)]

    –   require the purchaser of underground cable or natural gas line services to pay the tax directly to the minister (instead of to the vendor) if the vendor provides the services in connection with the related earthwork [s. 64(2)]

  • amendments to The Tax Administration and Miscellaneous Taxes Act to

    –   authorize tax officers who are designated as peace officers to enforce certain provisions of the Criminal Code [s. 69]

    –   eliminate the requirement to publish notice of an inter-governmental information sharing agreement or arrangement in the Manitoba Gazette [s. 70]

    –   provide for electronic service of documents through TAXcess (the government's secure online service for providing and accessing tax information) [s. 71]

    –   increase the maximum penalty from 50% to 100% of the tax owing when a person refuses, or fails by reason of neglect or carelessness, to pay tax when it is due [s. 72]

    –   allow the costs of searches conducted to secure or recover a tax debt to be collected as a tax debt [s. 73(1)]

    –   increase the tax evasion penalty for repeat offenders from twice the tax to triple the tax sought to be evaded [s. 74]

    –   make the penalties for offences relating to marked fuel the same as the penalties for offences relating to bulk fuel [s. 75 and 76]

    –   provide for the suspension of the driver's licence of a person who uses a vehicle in the commission of an offence relating to the purchase, sale or possession of tobacco [s. 68 and 77]

    –   enable penalties, fines, costs and surcharges imposed under the Act to be collected as a tax debt [s. 78]

The Act also enacts The Insurance Corporations Tax Act, which replaces the existing Act and makes related amendments to The Fires Prevention and Emergency Response Act, The Insurance Act and The Tax Administration and Miscellaneous Taxes Act. The new Act comes into force on January 1, 2018 and will be administered under Part I of The Tax Administration and Miscellaneous Taxes Act. [s. 79 and Schedule A]

The Act also makes corrections to the French version of The Budget Implementation and Tax Statutes Amendment Act, 2015. [s. 88]

(Assented to November 10, 2017)

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(1)        Subsection 1(1) is amended

(a) in the definition "corporation", by striking out "an insurance corporation, with or without share capital and";

(b) by replacing the definition "financial institution" with the following:

"financial institution" means a bank, trust corporation, loan corporation or a trust and loan corporation; (« institution financière »)

(c) by repealing the definitions "director", "insurance corporation", "jurisdiction" and "taxation year".

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

Joint venture or partnership

1(3)        In computing its amount taxable for the purposes of this Act, every corporation carrying on a joint venture or in partnership with any other person or partnership must include its proportionate share of the assets, liabilities, and capital of the joint venture or partnership.

3(1)        Subsection 4(1) is amended by striking out "mines, oil and gas wells, farms, timberlands, factories, workshops, warehouses,".

3(2)        Subsection 4(3) is amended by adding "and" at the end of clause (d) and repealing clauses (e) and (f).

4           Clause 5(c) is amended by striking out "unless all or part of that amount is not permitted by the regulations to be deducted" and substituting "otherwise than under paragraph 20(1)(n) of that Act (reserve for unpaid amounts)".

5(1)        Subsections 6(1) and (1.1) are repealed.

5(2)        Subsection 6(2) is amended

(a) in the section heading, by striking out "bank or trust or loan corporation" and substituting "financial institution"; and

(b) in the subsection, by striking out "corporation that is a bank, a trust corporation, a loan corporation or a trust and loan corporation" and substituting "financial institution".

5(3)        Subsection 6(3) is amended by striking out "that begins after January 1, 2008,".

6           Subsection 7(1.1) is repealed.

7(1)        Subsection 8(1) is amended

(a) in clause (c), by striking out ", unless the amount or a portion thereof is not permitted to be deducted by the regulations"; and

(b) in clause (f), by striking out "for fiscal years ending after April 20, 1994,".

7(2)        Subsection 8(2) is amended

(a) in the part before clause (a), by striking out "paragraph 9(1)(b)(ii)(B)" and substituting "subclause 9(1)(b)(ii)"; and

(b) in the part of clause (g) before subclause (i), by striking out "as at the close of any fiscal year ending after June 30, 1981,".

7(3)        Subsection 8(4) is amended, in the part before clause (a), by striking out "subsections (1) and 10(1)" and substituting "subsection (1)".

7(4)        Subsection 8(5) is amended

(a) in the part before clause (a), by striking out "subsections (1) and 10(1)" and substituting "subsection (1)"; and

(b) in clause (c), by striking out ", unless the amount or a portion thereof is not permitted to be deducted by the regulations".

8(1)        Subsection 9(1) is amended

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

(a) The amount that is equal to 12.5 multiplied by the corporation's taxable income earned in Canada for the fiscal year as determined under the Income Tax Act (Canada);

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

(ii) its current accounts payable as at the close of the fiscal year relating to its permanent establishments in Canada.

(c) by repealing everything after clause (b).

8(2)        Subsections 9(2) and (3) are repealed.

9(1)        Subsections 10(1), (3) and (4) are repealed.

9(2)        Subsection 10(2) is amended by striking out everything after "is the paid up capital employed in Canada as at the close of the fiscal year".

9(3)        Subsection 10(5) is amended

(a) in the part before the formula, by striking out "beginning after December 31, 2010"; and

(b) in clause (a) of the description of C in the formula, by adding "or credit union" after "institution".

10          Section 10.1 is repealed.

11(1)       Subsection 13(1) is repealed.

11(2)       Subsection 13(4) is replaced with the following:

Exemption for small financial institutions

13(4)       No tax is payable under this Act for a fiscal year by a financial institution if, at the close of the fiscal year,

(a) its taxable paid up capital is less than $4,000,000,000; and

(b) where it is a member of an associated group of corporations for the calendar year in which that fiscal year ends, the total of the taxable paid up capital of the members of the group that are financial institutions is less than $4,000,000,000.

12          Section 13.1 is repealed.

13          Section 15 is replaced with the following:

Deduction for capital used outside Manitoba

15          There may be deducted from the tax otherwise payable for a fiscal year by a corporation that has a permanent establishment outside Manitoba in that year the amount determined by the following formula:

Deduction = T × A/B

In this formula,

T

is the tax otherwise payable by the corporation for that year;

A

is the portion of the corporation's taxable income for that year under the Income Tax Act (Canada) that, according to Part IV of the Income Tax Regulations (Canada), is not taxable income earned in the year in Manitoba;

B

is the corporation's taxable income for that year under the Income Tax Act (Canada).

For this purpose, if a corporation has no taxable income for the year, its taxable income for that year is deemed to be $1,000.

14(1)       Clause 17(1)(b) of the English version is amended by striking out "the instalments" and substituting "any instalments".

14(2)       Subsections 17(4) to (7) are repealed.

15          Section 51 is repealed.

16          The Corporation Capital Tax Regulation, Manitoba Regulation 67/88 R, is repealed.

PART 2

THE INCOME TAX ACT

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

17          The Income Tax Act is amended by this Part.

18(1)       Clause (b) of the definition "deputy head" in subsection 1(1) is replaced with the following:

(b) if a collection agreement is in effect, the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act;

18(2)       The table in subsection 1(6) is amended

(a) by striking out "Canada Customs and Revenue Agency" and substituting "Canada Revenue Agency"; and

(b) by striking out "Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act" and substituting "Commissioner of Revenue".

19          Subsection 4(1) is amended

(a) in Rule 6, by adding the following after subclause (a)(iv):

(v) subsection 4.6(15.3) (volunteer firefighter or search and rescue amount);

(b) in Rule 7,

(i) in clause (a) of the French version, by striking out "contributions" and substituting "dons", and

(ii) by repealing clause (c).

20(1)       Subsection 4.6(10.3) is amended by striking out "118.03(1)" wherever it occurs in the following provisions and substituting "122.8(1)":

(a) clause (a);

(b) the part of clause (b) before subclause (i).

20(2)       Subsection 4.6(10.3) is replaced with the following:

Definitions for fitness tax credit

4.6(10.3)   The following definitions apply in subsection (10.2) and this subsection.

"eligible fitness expense", in relation to an individual, means the amount of a fee paid to a qualifying entity (other than an amount paid to a person who is, at the time the amount is paid, the individual's parent, spouse or common-law partner or another individual who is under 18 years of age) to the extent that the fee is attributable to the cost of registration or membership of the individual in an eligible program of physical activity or membership in an eligible organization and, for this purpose, that cost

(a) includes the cost to the qualifying entity of the program in respect of its administration, instruction, rental of required facilities, and uniforms and equipment that are not available to be acquired by a participant in the program for an amount less than their fair market value at the time, if any, they are so acquired; and

(b) does not include

(i) the cost of accommodation, travel, food or beverages, or

(ii) any amount deductible under section 63 of the federal Act in computing any person's income for any taxation year. (« dépense admissible pour activités physiques »)

"eligible program of physical activity" means a program of physical activity that is not part of a school's curriculum and is

(a) a weekly program of a duration of eight or more consecutive weeks in which all or substantially all of the activities include a significant amount of physical activity;

(b) a program of a duration of five or more consecutive days in which more than 50% of the daily activities include a significant amount of physical activity; or

(c) a program of a duration of eight or more consecutive weeks offered to children or young adults by an organization in circumstances where a participant may select from a variety of activities offered as part of the program and

(i) at least 50% of those activities include a significant amount of physical activity, or

(ii) at least 50% of the time scheduled for those activities offered is for activities that include a significant amount of physical activity. (« programme admissible d'activités physiques »)

"membership in an eligible organization" means a membership of a duration of eight or more consecutive weeks in an organization that offers activities to children or young adults, participation in which is not part of a school's curriculum, but only if

(a) at least 50% of those activities include a significant amount of physical activity; or

(b) at least 50% of the time scheduled for those activities is for activities that include a significant amount of physical activity. (« adhésion à une organisation admissible »)

"organization" means a club, association or similar organization. (« organisation »)

"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 federal 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.

For greater certainty, horseback riding is an activity that is deemed to meet the requirements of clause (b). (« activité physique »)

"qualifying entity" means a person or partnership that offers one or more eligible programs of physical activity. (« entité admissible »)

20(3)       Subsection 4.6(10.9) is amended by striking out "118.03(1)" and substituting "122.8(1)".

20(4)       Subsections 4.6(10.7) to (10.9) are replaced with the following:

Children's arts and cultural activity tax credit

4.6(10.7)   For a taxation year ending after 2015, an individual who is resident in Manitoba at the end of the taxation year may claim, in respect of each qualifying child of the individual, the lesser of $500 and the amount, if any, by which

(a) the total of all amounts each of which is an amount paid in the taxation year by the individual, or by the individual's spouse or common-law partner, that is an eligible expense in respect of the qualifying child of the individual;

exceeds

(b) the total of all amounts that any person is or was entitled to receive, each of which relates to an amount included under clause (a) in respect of the qualifying child that is the amount of a reimbursement, allowance or any other form of assistance (other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person).

Additional arts and cultural activity tax credit for child with disability

4.6(10.8)   For a taxation year ending after 2015, an individual may claim the amount of $500 in respect of a qualifying child of the individual if

(a) the individual is entitled to claim at least $100 under subsection (10.7) in respect of the qualifying child for that taxation year; and

(b) the individual or any other person who is resident in Manitoba is entitled to claim an amount under subsection (11) in respect of the qualifying child for that taxation year.

Definitions for arts and cultural activity tax credit

4.6(10.9)   The following definitions apply in subsections (10.7) and (10.8) and this subsection.

"artistic, cultural, recreational or developmental activity" means a supervised activity (other than a physical activity), including an activity adapted for children in respect of whom an amount is deductible under subsection (11), that is suitable for children and

(a) is intended to contribute to a child's ability to develop creative skills or expertise, acquire and apply knowledge, or improve dexterity or coordination, in an artistic or cultural discipline including

(i) literary arts,

(ii) visual arts,

(iii) performing arts,

(iv) music,

(v) media,

(vi) languages,

(vii) customs, and

(viii) heritage;

(b) provides a substantial focus on wilderness and the natural environment;

(c) assists with the development and use of intellectual skills;

(d) includes structured interaction among children where supervisors teach or assist children to develop interpersonal skills; or

(e) provides enrichment or tutoring in academic subjects. (« activité artistique, culturelle, récréative ou d'épanouissement »)

"eligible expense" in respect of a qualifying child of an individual for a taxation year means the amount of a fee paid to a qualifying entity (other than an amount paid to a person who is, at the time the amount is paid, the individual's spouse or common-law partner or another individual who is under 18 years of age) to the extent that the fee is attributable to the cost of registration or membership of the qualifying child in an eligible program or membership in an eligible organization and, for this purpose, that cost

(a) includes the cost to the qualifying entity of the program in respect of its administration, instruction, rental of required facilities, and uniforms and equipment that are not available to be acquired by a participant in the program for an amount less than their fair market value at the time, if any, they are so acquired; and

(b) does not include

(i) the cost of accommodation, travel, food or beverages,

(ii) any amount deductible in computing any person's income for any taxation year, or

(iii) any amount included in computing a deduction from any person's tax payable under any Part of this Act, for any taxation year. (« dépense admissible »)

"eligible program" means any of the following programs that is not part of a school's curriculum:

(a) a weekly program of a duration of eight or more consecutive weeks in which all or substantially all the activities include a significant amount of artistic, cultural, recreational or developmental activity;

(b) a program of a duration of five or more consecutive days in which more than 50% of the daily activities include a significant amount of artistic, cultural, recreational or developmental activity;

(c) a program of a duration of eight or more consecutive weeks, offered to children by an organization in circumstances where a participant may select from a variety of activities offered as part of the program and

(i) at least 50% of those activities include a significant amount of artistic, cultural, recreational or developmental activity, or

(ii) at least 50% of the time scheduled for those activities is for activities that include a significant amount of artistic, cultural, recreational or developmental activity. (« programme admissible »)

"membership in an eligible organization" means a membership of a duration of eight or more consecutive weeks in an organization that offers activities to children, participation in which is not part of a school's curriculum, but only if

(a) at least 50% of those activities include a significant amount of artistic, cultural, recreational or developmental activity; or

(b) at least 50% of the time scheduled for those activities is for activities that include a significant amount of artistic, cultural, recreational or developmental activity. (« adhésion à une organisation admissible »)

"organization" means a club, association or similar organization. (« organisation »)

"qualifying child" of an individual for a taxation year means a child of the individual who is, at the beginning of the year,

(a) under 16 years of age; or

(b) if an amount may be claimed under subsection (11) by the individual or any other individual in respect of that child for the taxation year, under 18 years of age. (« enfant admissible »)

"qualifying entity" means a person or partnership that offers one or more eligible programs. (« entité admissible »)

20(5)       Subsection 4.6(14) is replaced with the following:

Tuition and education amount

4.6(14)     An individual who is a qualifying student for any month in the taxation year may claim the amount determined for that taxation year by the following formula:

(A/P) + B

In this formula,

A

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

B

is the total of

(a) $400 multiplied by the number of months in the taxation year in which the individual is a student described in subparagraph (a)(i) of the definition "qualifying student" in subsection 118.6(1) of the federal Act, and

(b) $120 multiplied by the number of months in the taxation year in which the individual is a student described in subparagraph (a)(ii) of the definition "qualifying student" in subsection 118.6(1) of the federal Act;

P

is the percentage specified in paragraph 117(2)(a) of the federal Act (lowest federal marginal rate).

20(6)       The following is added after subsection 4.6(14):

Tuition and education amount for student eligible for disability tax credit

4.6(14.0.1)  Subsection 118.6(3) of the federal Act applies for the purpose of subsection (14).

20(7)       Subsection 4.6(15.3) is amended by striking out "an individual's tax payable under that Act for a taxation year" and substituting "the tax payable for a taxation year under that Act by an individual who was resident in Manitoba at the end of the taxation year".

20(8)       Subsection 4.6(18) is replaced with the following:

Donations tax credit

4.6(18)     An individual's donations tax credit for a taxation year is the amount determined by the following formula:

(A × 10.8%) + (C × 17.4%)

In this formula,

A

is the amount that would be determined for B in subsection 118.1(3) of the federal Act in determining the amount deductible by the individual under that subsection for the taxation year if the amount deductible were the amount actually deducted;

C

is the total of the amounts that would be determined for D and F in subsection 118.1(3) of the federal Act in determining the amount deductible by the individual under that subsection for the taxation year if the amount deductible were the amount actually deducted.

21          Subsection 4.9.1(1) is amended

(a) in the part before clause (a), by striking out "the 2007 and subsequent taxation years" and substituting "a taxation year ending after 2006 and before 2018"; and

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

(a) the following amount:

(i) for a taxation year ending before 2017, $2,500,

(ii) for the 2017 taxation year, $500;

22          The centred heading before section 4.11 of the French version is amended by adding "politiques" after "dons".

23(1)       Subsection 4.11(1) is repealed.

23(2)       Subsection 4.11(1.1) is amended

(a) in the French version, by adding "politiques" after "dons" wherever it occurs;

(b) in the section heading, by striking out "and subsequent taxation years" and substituting "to 2017";

(c) in the part before the table, by adding "and before 2018" after "2004"; and

(d) in the French version of the table, by striking out "CID" wherever it occurs and substituting "CIDP".

23(3)       The following is added after subsection 4.11(1.1):

Political contribution credit — 2018 and subsequent taxation years

4.11(1.2)   An individual's political contribution tax credit for a taxation year ending after 2017 is the lesser of $1000 and the amount determined according to the following table:

Total contributions (T) Political Contribution Credit (PCC)
$400 or less PCC = .75 × T
more than $400 but not more than $750 PCC = $300 + (T − $400)/2
more than $750 PCC = $475 + (T − $750)/3

23(4)       Subsection 4.11(2) is amended

(a) in the section heading and in the part before clause (a) of the French version, by adding "politique" after "don"; and

(b) in the part before clause (a), by striking out "(1) or (1.1)" and substituting "(1.1) or (1.2)".

24(1)       Subclause 5(1)(a)(ii) of the French version is amended by striking out "conjoint visé ou son conjoint de fait" and substituting "conjoint ou conjoint de fait visé".

24(2)       Clause 5(2)(b) of the French version is amended by striking out "conjoint visé ou le conjoint de fait" and substituting "conjoint ou conjoint de fait visé".

25          Clause 5.1(a) of the French version is amended by striking out "conjoint visé ou conjoint de fait" wherever it occurs and substituting "conjoint ou conjoint de fait visé".

26(1)       Subsection 5.3(1) of the French version is amended

(a) in the definitions "conjoint visé ou conjoint de fait" and "résidence principale", by striking out "conjoint visé ou conjoint de fait" wherever it occurs and substituting "conjoint ou conjoint de fait visé"; and

(b) in clause (a) of the definition "revenu familial", by striking out "conjoint visé ou du conjoint de fait" and substituting "conjoint ou conjoint de fait visé".

26(2)       Subsection 5.3(2) is amended

(a) in the French version of the part before clause (a), by striking out "conjoint visé ou conjoint de fait" and substituting "conjoint ou conjoint de fait visé";

(b) in the French version of clause (a), by striking out "conjoint visé ou conjoint de fait" and substituting "conjoint ou conjoint de fait visé"; and

(c) in the English version of clause (a), by adding "cohabiting" before "spouse or common-law partner".

26(3)       Subsection 5.3(3) of the French version is amended, in the part before clause (a), by striking out "conjoint visé ou conjoint de fait" and substituting "conjoint ou conjoint de fait visé".

26(4)       Subsection 5.3(4) is amended

(a) in the English version, by adding "or the individual's cohabiting spouse or common-law partner" at the end; and

(b) in the French version, by striking out "conjoint visé ou conjoint de fait" and substituting "conjoint ou conjoint de fait visé".

27(1)       Subsection 5.4(2) of the French version is amended

(a) in the section heading, by striking out "visés"; and

(b) in clauses (a) and (b), by striking out "conjoint visé ou le conjoint de fait" and substituting "conjoint ou conjoint de fait visé".

27(2)       The section heading for subsection 5.4(2.1) of the English version is amended by striking out "EPTC" and substituting "education property tax credit".

27(3)       Subsection 5.4(4) is replaced with the following:

Education property tax credit for seniors

5.4(4)      The education property tax credit for a taxation year after 2012 at the end of which the individual is at least 65 years old is the greater of

(a) the amount that would be the individual's education property tax credit under subsection (3) if the individual were less than 65 years old at the end of the year; and

(b) is the amount determined by the following formula:

A − B

In this formula,

A

is

(i) the amount determined in accordance with the regulations, if the year is after 2017 and the manner of determining A is prescribed by regulation, and

(ii) in any other case, the lesser of the individual's occupancy cost for the year and the amount determined by the following formula:

$1,100 − C

In this formula, C is the lesser of $400 and 1% of the individual's family income for the year;

B

is the total of all amounts each of which is the municipal tax reduction given in respect of a principal residence of the individual for the year or a part of the year.

27(4)       Subsection 5.4(5) is repealed.

27(5)       The following is added as subsection 5.4(6):

Regulation

5.4(6)      The Lieutenant Governor in Council may by regulation prescribe the manner in which the amount A in the formula in subsection (4) is to be determined. Such a regulation ceases to have effect at the end of the year in which the next Act to implement the government's budget receives royal assent. If that Act does not amend this Act to implement the manner of determining the amount as prescribed by the regulation, no further regulation may be made under this subsection for that year or the immediately following year.

28(1)       Subsection 5.5(1) of the French version is amended by striking out "conjoint visé ou le conjoint de fait" wherever it occurs and substituting "conjoint ou conjoint de fait visé".

28(2)       Clause 5.5(2)(b) of the French version is amended by striking out "conjoint visé ou conjoint de fait" and substituting "conjoint ou conjoint de fait visé".

29(1)       Item 6 of subsection 5.5.1(3) is amended by adding "and has not claimed an education property tax credit for that year" at the end.

29(2)       Subsection 5.5.1(5) is amended

(a) in the section heading, by adding "— 2015 to 2017" at the end; and

(b) in the part before the formula, by adding "and before 2018" after "2015".

29(3)       The following is added after subsection 5.5.1(5):

Seniors' school tax rebate — after 2017

5.5.1(6)    The seniors' school tax rebate for a taxation year after 2017 of an individual who is eligible for the rebate is the amount determined for that year in the manner prescribed by regulation or, if that is not prescribed, the amount determined for that year using the formula set out in subsection (5).

Regulation

5.5.1(7)    The Lieutenant Governor in Council may by regulation prescribe the manner in which the amount in subsection (6) is to be determined. Such a regulation ceases to have effect at the end of the year in which the next Act to implement the government's budget receives royal assent. If that Act does not amend this Act to implement the manner of determining the amount as prescribed by the regulation, no further regulation may be made under this subsection for that year or the immediately following year.

29(4)       Section 5.5.1 is further amended in the French version by striking out "conjoint visé ou conjoint de fait" wherever it occurs and substituting "conjoint ou conjoint de fait visé".

30          Clause 5.6(1.2)(b) of the French version is amended by striking out "visé".

31          Clause 5.7(4)(a) of the French version is amended by striking out "conjoint visé ou le conjoint de fait" and substituting "conjoint ou conjoint de fait visé".

32(1)       Clause (d) of the definition "primary caregiver" in subsection 5.11(1) is replaced with the following:

(d) has acknowledged in writing

(i) to the assessing authority in a form acceptable to that authority, or

(ii) if the regulations so provide, to the Minister of Finance for Manitoba,

his or her role as the recipient's sole primary caregiver, and has done so in or before the taxation year for which he or she is claiming the primary caregiver tax credit in relation to the recipient.

32(2)       Subsection 5.11(2) is amended

(a) in the part before the formula, by striking out "after 2014 is" and substituting "after 2016 is the lesser of $1,400 and"; and

(b) in the description of A in the formula, by adding "and" at the end of clause (b) and repealing clause (c).

32(3)       The following is added after clause 5.11(3)(b):

(b.1) for the purpose of clause (d) of the definition "primary caregiver" in subsection (1), authorizing or requiring a caregiver's acknowledgment to be provided to the Minister of Finance for Manitoba and respecting the form and manner in which it is to be provided;

33          Section 5.12 is amended

(a) in the part before clause (a), by striking out everything after "For the" and substituting "2017 taxation year, an individual's advance tuition fee tax credit is";

(b) in subclause (b)(i), by striking out everything after "$500."; and

(c) in paragraph (b)(ii)(A), by striking out "that ended after November 2010" and substituting "that began before May 1, 2017".

34(1)        The description of T in the formula in subsection 7(1) is amended by striking out "in Manitoba for the taxation year" and substituting "in the year in Manitoba".

34(2)       The description of Tm in the formula in subsection 7(2) is amended by striking out "in Manitoba for the taxation year" and substituting "in the year in Manitoba".

34(3)       Subsection 7(2.1) is amended by striking out "in Manitoba in the taxation year" and substituting "in the year in Manitoba".

34(4)       The part of subsection 7(4) after clause (b) is amended by adding ", subject to the regulations," after "preferred-rate amount is".

34(5)       The following is added after subsection 7(5):

Regulation for determining preferred-rate amount

7(6)        The Lieutenant Governor in Council may by regulation prescribe the manner in which a credit union's preferred-rate amount is to be determined as at the end of a taxation year. Such a regulation may be made with retroactive effect to the extent necessary for determining or redetermining the tax payable by a credit union for a taxation year in relation to which the normal reassessment period has not expired before the day this subsection comes into force.

35(1)       Clause 7.2(1.1)(b) is amended by striking out "80%" and substituting "8/9".

35(2)       Subsection 7.2(1.2) is replaced with the following:

Transitional

7.2(1.2)    The reference in clause (1.1)(b) to "8/9" is to be read as

(a) "70%" in respect of property acquired before July 1, 2013; and

(b) "80%" in respect of property acquired after June 30, 2013 and on or before April 11, 2017.

35(3)       Subsection 7.2(2) is amended

(a) in the definition "investment tax credit", by striking out "10%" and substituting "9%" in

(i) the part of clause (a) before subclause (i), and

(ii) the part of clause (b) before subclause (i); and

(b) in the part of the definition "qualified property" before clause (a), by striking out "2018" and substituting "2021".

35(4)       The following is added after subsection 7.2(2.5):

Transitional

7.2(2.6)    The references to "9%" in clauses (a) and (b) of the definition "investment tax credit" in subsection (2) are to be read as "10%" in respect of property acquired before April 12, 2017.

36(1)       The definition "research and development tax credit" in subsection 7.3(1) is amended

(a) in clause (a.1), by striking out "20%" and substituting "15%";

(b) by replacing clause (b.1) with the following:

(b.1) an amount equal to 15% of the aggregate of all amounts each of which is an eligible expenditure made by it after March 8, 2005, in any of

(i) the 20 immediately preceding taxation years that ends after 2005, or

(ii) the three immediately following taxation years,

computed without reference to subsection 13(7.1) of the federal Act,

(c) by replacing subclauses (d.1)(i) and (ii) with the following:

(i) 20%, if it relates to an expenditure made on or before April 11, 2017, or

(ii) 15%, if it relates to an expenditure made after April 11, 2017,

36(2)        The following is added after subsection 7.3(1):

Transitional

7.3(1.1)    The references to "15%" in clauses (a.1) and (b.1) of the definition "research and development tax credit" in subsection (1) are to be read as "20%" in respect of an eligible expenditure made by the corporation before April 12, 2017.

36(3)       Clause 7.3(2.3)(b) is replaced with the following:

(b) the total of the following amounts:

(i) the following percentage of the total of the corporation's eligible expenditures made 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 Growth, Enterprise and Trade:

(A) 20%, if the expenditure was made on or before April 11, 2017,

(B) 15%, if the expenditure was made after April 11, 2017,

(ii) the following percentage of the total of the corporation's eligible expenditures that were made in the taxation year and are not included under subclause (i):

(A) 10%, if the expenditure was made on or before April 11, 2017,

(B) 7.5%, if the expenditure was made after April 11, 2017;

36(4)       Subclause 7.3(2.3)(c)(i) of the English version is amended by adding "credit" after "tax".

37          The definition "cooperative development contribution" in subsection 7.13(1) is amended by striking out "2021" and substituting "April 12, 2017".

38(1)       Clause (a) of the definition "eligible donation" in subsection 7.17(1) is amended by striking out "2020" and substituting "April 12, 2017".

38(2)       Clause 7.17(2)(f) of the French version is amended by striking out "déficience mentale ou physique" and substituting "personnes handicapées".

39(1)       Clause (a) of the definition "data processing property" in subsection 7.19(2) is amended by striking out "2019" and substituting "April 12, 2017".

39(2)       The following provisions are amended by striking out "December 31, 2018" and substituting "April 11, 2017":

(a) subclauses (a)(i) and (b)(i) of the descriptions of A and B in subsection 7.19(4);

(b) the part before clause (a) in the descriptions of A and B in subsection 7.19(4.0.1);

(c) clauses 7.19(4.1)(a) and (b).

40          Clauses (a) and (b) of the definition "employer" in subsection 10.1(1) are amended by adding "(other than a reporting organization as defined in The Financial Administration Act or any other organization to which any of paragraphs 149(1)(c) to (d.5) of the federal Act applies)" after "taxpayer or partnership".

41          Clauses (b) and (c) of the definition "eligible expenditure" in subsection 10.2(2) are amended by striking out "2018" and substituting "April 12, 2017".

42          Clauses (b) and (c) of the definition "eligible expenditure" in subsection 10.2.1(2) are amended by striking out "2019" and substituting "April 12, 2017".

43          Subsection 10.4(3) is amended

(a) in clauses (a) and (b) of the definition "book publishing labour costs", by striking out "2018" and substituting "2019";

(b) in clause (b) of the definition "eligible book", by striking out "2018" and substituting "2019"; and

(c) in clause (b) of the definition "eligible printing costs", by striking out "2019" and substituting "2020".

44          Subsection 10.5(4) is amended by striking out "2020" and substituting "2023" in the following provisions:

(a) the part of the definition "labour expense" before clause (a);

(b) subclause (b)(i) of the definition "marketing and distribution expense".

45          The following are repealed:

(a) section 11.6 (Manitoba equity tax credit) and the centred heading before it;

(b) the Manitoba Equity Tax Credit Regulation, Manitoba Regulation 111/99.

46          Subsection 11.7(2) is amended, in the part before clause (a), by striking out "2018" and substituting "2021".

47          The following provisions are amended by striking out "Canada Customs and Revenue Agency" and substituting "Canada Revenue Agency":

(a) section 36.1;

(b) subsection 60(19);

(c) clause 61(4)(b).

48          The following is added after section 66 and before Part IV:

INFORMATION SHARING

Agreement respecting sharing of information

66.1        The Minister of Finance for Manitoba, on behalf of the Government of Manitoba, may enter into an agreement with the Government of Canada or the Canada Revenue Agency respecting the sharing of information obtained under this Act or the federal Act.

49          Subsection 70(6) is amended by striking out "Revenue Canada" and substituting "the Canada Revenue Agency".

PART 3

THE PROPERTY TAX AND INSULATION ASSISTANCE ACT

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

50          The Property Tax and Insulation Assistance Act is amended by this Part.

51          Subsection 16.2(1.1) is replaced with the following:

Maximum for total of all rebates

16.2(1.1)   The total of all rebates received or assigned under this Part for a taxation year by a taxpayer and every person to whom the taxpayer is related must not exceed

(a) $5,000 for a taxation year after 2012 and before 2017;

(b) for a taxation year after 2016, the maximum amount prescribed by regulation or, if no amount is prescribed for the purpose of this subsection, $5,000.

52(1)       Clause 16.8(c.1) is replaced with the following:

(c.1) for the purpose of subsection 16.2(1.1),

(i) prescribing a maximum amount, and

(ii) prescribing circumstances in which persons are deemed not to be related;

52(2)       Section 16.8 is further amended by renumbering it as subsection 16.8(1) and adding the following as subsection 16.8(2):

Limitation on setting maximum rebate by regulation

16.8(2)     An amount prescribed under clause (1)(c.1) for the purpose of subsection 16.2(1.1) ceases to have effect at the end of the year in which the next Act to implement the government's budget receives royal assent. If that Act does not change the amount set out in subsection 16.2(1.1), no amount may be prescribed under clause (1)(c.1) for that year or the immediately following year.

53          Part III.3 is repealed.

54          The definition "benefit period" in subsection 25.2(1) is amended by striking out "the application for the tax reduction is made" and substituting "an application for the tax reduction is made before April 12, 2017".

PART 4

THE RETAIL SALES TAX ACT

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

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

56          Subsections 2(5.3.2) and (5.8) are amended, in the part before the formula, by striking out "remitting" and substituting "paying".

57(1)        Subsection 2.2(2) is amended by adding the following at the end:

It does not relieve a registered vehicle dealer of the vendor's duty under subsection 9(2) to collect and remit the tax payable on the purchase of the vehicle.

57(2)       Subsection 2.2(9) is amended

(a) in the part before clause (a),

(i) by striking out "purchaser" and substituting "person", and

(ii) in the English version, by striking out "least of" and substituting "lesser of";

(b) adding "and" at the end of clause (a) and repealing clause (b);

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

(e) the purchased vehicle is registered within two years after the date of purchase;

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

(f) any tax payable by the person in respect of the sold vehicle, or that would be payable if the person were to register the vehicle, has been paid; and

(g) the sold vehicle was not acquired by the person as a gift from a family member of the person less than one year before it was sold.

57(3)       Subsection 2.2(10) is amended

(a) in clause (a), by striking out "purchaser" and substituting "person registering it"; and

(b) by adding "and" at the end of clause (b) and repealing clause (c).

58          The description of R in the formula in subsection 2.3(6) is replaced with the following:

R

is the tax rate for that year as determined under subsection (5) having regard to subsection (5.1);

59(1)       The definition "returnable packaging" in subsection 2.4(1) is replaced with the following:

"returnable packaging" means packaging that is capable of being returned and re-used as packaging. (« emballage récupérable »)

59(2)       Subsection 2.4(2) is replaced with the following:

Tax on returnable packaging

2.4(2)      Tax under section 2 on a purchase of returnable packaging is payable by the person who purchases it for providing tangible personal property or a service, and not by the recipient of the property or service, if

(a) the packaging is subject to a deposit, credit, penalty or replacement charge to encourage its return for re-use as packaging;

(b) the person retains an interest in the packaging after the sale of the property or service;

(c) the packaging, or similar packaging, is required to be returned to the person after the sale of the property or service; or

(d) the property or service is provided in a jurisdiction where the packaging is subject to a regulatory or contractual scheme to recover the packaging for re-use by the person or by other participants in the scheme.

59(3)       Subsection 2.4(3) is replaced with the following:

Tax on non-returnable packaging

2.4(3)      Tax is payable under section 2 on the purchase of non-returnable packaging by a vendor unless it is to be used as packaging for tangible personal property or a service to be sold by the vendor and will be transferred to the person to whom the property or service is sold.

59(4)       Subsection 2.4(4) is replaced with the following:

Use of returnable packaging inside and outside Manitoba

2.4(4)      A vendor who purchases returnable packaging for use both inside and outside Manitoba may, instead of paying tax under section 2, pay for each reporting period, in accordance with the regulations, the tax calculated in accordance with a formula that is acceptable to the director and takes into account the extent to which the packaging is used inside and outside Manitoba.

60(1)       The part of subclause 3(1)(w.1)(v) before paragraph (A) is amended striking out "machinery and equipment" and substituting "depreciable property as defined in subsection 13(21) of the Income Tax Act (Canada)".

60(2)       Clauses 3(18.1)(c), (18.2)(c) and (18.3)(c) are replaced with the following:

(c) the seller has paid tax under section 2 in respect of the property or has acquired the property

(i) as a gift from a family member who paid tax under section 2 in respect of the property or acquired it in a transaction other than a sale as defined in subsection 1(1), or

(ii) under a bequest or by the devolution of an estate.

60(3)       Clause 3(22)(a) is replaced with the following:

(a) the manufacturing plant (consisting of the machinery, equipment, apparatus, land and buildings) is sold or leased to a single purchaser by a single vendor or by two or more vendors who

(i) are closely related to each other at the time of the sale or lease, and

(ii) were closely related to each other for at least six months immediately before that time;

(a.1) for at least six months after the sale or lease to the purchaser,

(i) the machinery, equipment or apparatus continues to be owned by or leased to the purchaser or a person closely related to the purchaser and used in the operation of the manufacturing plant by the purchaser or the closely related person, and

(ii) the land and buildings continue to be owned by or leased to the purchaser or a person closely related to the purchaser; and

61(1)       Clause 4(1)(i) is amended in the part before subclause (i) by striking out "— or relate to Manitoba in a manner prescribed by regulation — and are rendered after June 30, 2004" and substituting "or relate to Manitoba in a manner prescribed by regulation".

61(2)       The definition "line" in subsection 4(3) of the English version is amended, in the part before clause (a), by adding ", except where it refers to a natural gas line," before "includes".

61(3)       The following is added after subsection 4(3):

Prorated purchase price for cable or gas line installation

4(3.1)      If the purchase price for installing an underground cable or natural gas line includes the cost of related earthwork and the price for the earthwork is not billed separately or shown separately on the invoice, the purchase price for the taxable service is deemed to be 10% of the total purchase price.

62          Subsection 4.1(9) is amended by striking out "remit" and substituting "pay".

63          The following is added after subsection 5(8):

RST number to be provided for certain purchases

5(9)        A person wishing to purchase any of the following without paying tax to the vendor must provide his or her RST number to the vendor:

(a) tangible personal property described in subsection 2.4(3) or (5), clause 3(1)(r.1), (v.1), (w), (w.1), (w.2), (w.3), (w.4), (w.5), (hh.1) or (xx) or subsection 3(25.1);

(b) tangible personal property or taxable services if they are being purchased for resale;

(c) railway rolling stock in respect of which the person is paying tax under subsection 2(5.4) (temporary use — railway rolling stock);

(d) aircraft in respect of which the person is paying tax under subsection 2(5.7) (temporary use — aircraft);

(e) returnable packaging in respect of which the person is paying tax in accordance with subsection 2.4(4) (returnable packaging for use inside and outside Manitoba).

The vendor must note the RST number on the sales invoice.

Failure to provide RST number

5(10)       A person who fails or refuses to comply with subsection (9) must pay to the vendor, and the vendor must collect from the person, the amount that would be payable as tax if the purchase were subject to tax under section 2. After paying that amount, the person may apply for a refund of that amount under section 26.

64(1)       Clause 9(2)(a) of the French version is amended by striking out "inscrit de véhicules" and substituting "de véhicules inscrit".

64(2)       The following is added after subsection 9(2.9):

Exception for cable and gas line installation services

9(2.10)     Despite subsection (2), a vendor is not required to collect and remit the tax payable in respect of the installation of an underground cable or natural gas line if the vendor provides that service in connection with the related earthwork. Instead, the purchaser must pay the tax to the minister in accordance with the regulations.

65(1)       Clause 26(4)(a) is amended by striking out "or on the vehicle sold, whichever is less".

65(2)       Clause 26(8)(a) is amended by striking out "or on the vehicle sold, whichever is less".

65(3)       Clause 26(9)(a) is amended by striking out "or on the aircraft sold, whichever is less".

65(4)       Subsection 26(9.3) is replaced with the following:

Restrictions

26(9.3)     No refund is payable to a person under subsection (4), (8) or (9) if

(a) the purchased vehicle or aircraft is also the sold vehicle or aircraft and is sold to a purchaser who acquires it exempt from tax under any of subsections 3(18) to (18.5);

(b) the tax payable by the person in respect of the sold vehicle or aircraft, or that would be payable if the person were to register the vehicle or aircraft, has not been paid; or

(c) the sold vehicle or aircraft was acquired by the person as a gift from a family member of the person less than one year before it was sold.

65(5)       Subsection 26(10) is repealed.

65(6)       Clause 26(15)(a) is amended by striking out "vehicle dealer" and substituting "registered vehicle dealer as defined in that subsection".

65(7)       Clauses 26(16)(a) and (b) are replaced with the following:

(a) takes it out of Manitoba for permanent use in a jurisdiction outside Manitoba within 30 days after it was purchased; and

(b) pays the tax payable in relation to it in that jurisdiction or, if no tax is payable, registers it in that jurisdiction.

66          Clause 29(1)(r.1) is amended by striking out everything after "use of RST numbers".

PART 5

THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT

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

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

68          Subsection 1(1) is amended by adding the following definition:

"driver's licence" means a driver's licence as defined in The Drivers and Vehicles Act. (« permis de conduire »)

69          The following is added as subsection 4(4):

Enforcement of Criminal Code provisions

4(4)        A tax officer designated under subsection (2), or belonging to a class of officers so designated,

(a) may enforce the following provisions of the Criminal Code (Canada):

(i) subsection 121.1(1) (unauthorized sale of tobacco products),

(ii) subsections 145(2), (4) and (5) (fail to attend court), and

(iii) subsection 380(1) (fraud); and

(b) has the powers and protections of a peace officer for the purpose of enforcing those provisions.

70          Subsection 6(3) is repealed.

71          The following is added after section 7:

Electronic service through TAXcess

7.1(1)      A document posted by the director to a person's TAXcess account is deemed to have been served on the person on the day that a message advising of the availability of the document is sent to

(a) the e-mail address specified in the person's settings for the account at the time the message is sent; or

(b) any other e-mail address provided by the person to the director for the delivery of a notice about the document.

Exception

7.1(2)      Subsection (1) does not apply

(a) if sending the message triggers an automated response indicating that the message is not deliverable; or

(b) if, before the message is sent, the person has notified the director in writing that the e-mail address may no longer be used for such messages.

"TAXcess" defined

7.1(3)      For the purpose of this section, "TAXcess" means the web application established by or for the Department of Finance to allow subscribers to submit and access, via the Internet, information to be provided by or to them in respect of one or more taxes.

72          Subsection 39(2) is amended, in the part after clause (b), by striking out "50%" and substituting "100%".

73(1)       The following is added after clause 64(2)(b):

(b.1) disbursements for searches reasonably required to

(i) ascertain the legal status of the tax debtor, or

(ii) identify property that is or may be subject to the lien or ascertain the registered interests in such property;

73(2)       The following is added after subsection 64(4):

Additional amounts recoverable as tax debt

64(5)       If the payment of an amount not otherwise included in a tax debt is or may be secured by a lien under this section, the director may charge that amount to the tax debtor and recover that amount as if it were included in the tax debt.

74          Clause 76(5)(b) is amended by striking out "twice" and substituting "triple".

75          Clauses 77(1)(d), (e) and (e.1) are repealed.

76          Subsection 79(1) is amended

(a) in the section heading, by adding "and marked fuel" at the end;

(b) in the part before clause (a), by striking out ", contrary to The Fuel Tax Act";

(c) in clauses (a) and (b), by striking out "that Act" and substituting "The Fuel Tax Act"; and

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

(c) tampers with marked fuel;

(d) marks fuel contrary to The Fuel Tax Act or the regulations under that Act; or

(e) sells unmarked fuel as marked fuel.

77          The following is added as subsections 80(8) to (11):

Suspension of driver's licence

80(8)       When a person who used a motor vehicle (as defined in The Highway Traffic Act) in the commission of an offence under clause (2)(a), (c), (d), (f) or (g) is convicted of that offence, the court

(a) must order that the person's driver's licence be suspended if the person has a prior conviction for an offence under subsection (2) that was committed within 10 years before the date of the current offence; or

(b) if clause (a) does not apply, may order that the person's driver's licence be suspended for no more than six months.

A suspension under clause (a) must be for at least six months if the person's driver's licence has previously been suspended under this subsection.

Suspension in addition to penalty or fine

80(9)       A suspension under subsection (8) is in addition to any other penalty or fine imposed under this section.

Court to inform Registrar of Motor Vehicles

80(10)      If the court makes an order under subsection (8), the court must inform the registrar under The Drivers and Vehicles Act of the order.

No issuance or renewal of licence during suspension

80(11)      During the period of the suspension, a driver's licence must not be issued or renewed in the person's name.

78          The following is added after section 80.1:

Penalties, fines, costs and surcharges may be collected as tax debt

80.2(1)     The director may collect a penalty or fine imposed under this Part, as well as any cost or surcharge imposed under any other Act in respect of a conviction for an offence under this Part, as if it were a tax debt.

Collection actions

80.2(2)     For the purpose of applying Division 5 (tax debt recovery) to the collection of the penalty, fine, cost or surcharge,

(a) the amount of the penalty, fine, cost or surcharge is deemed to be a tax debt, but not a tax debt in respect of tax that was collected and not remitted;

(b) the person required to pay the penalty, fine, cost or surcharge is deemed to be a tax debtor;

(c) clause 68(7)(a) is to be read as follows:

(a) has the same effect and priority as a garnishing order has under section 14.5 of The Garnishment Act to enforce the payment of a fine; and

(d) section 73 (deemed trust for taxes not remitted) does not apply;

(e) section 74 (relief from enforcement) is to be applied as if the references to an appeal from an assessment or reassessment were references to an appeal from the conviction or sentence imposed for the offence in respect of which the penalty, fine, cost or surcharge was imposed.

PART 6

MISCELLANEOUS PROVISIONS

THE INSURANCE CORPORATIONS TAX ACT

Insurance Corporations Tax Act enacted

79          The Insurance Corporations Tax Act set out in Schedule A is hereby enacted.

THE AFFORDABLE UTILITY RATE ACCOUNTABILITY ACT

Act and regulation repealed

80          The Affordable Utility Rate Accountability Act, S.M. 2012, c. 20, and the Affordable Utility Rate Accountability Regulation, Manitoba Regulation 120/2013, are repealed, but they continue to apply, as they read immediately before their repeal, in respect of the fiscal year that ended on March 31, 2017.

THE ANIMAL CARE ACT

C.C.S.M. c. A84 amended

81(1)       The Animal Care Act is amended by this section.

81(2)       The following provisions are repealed:

(a) the definitions "licence" and "prescribed" in subsection 1(1);

(b) subclause 8(1)(a)(i);

(c) Part 5;

(d) clauses 39(i), (j), (k), (l), (m) and (q).

81(3)       Clauses 8(1)(e), (f) and (g) are amended by striking out "licence,".

81(4)       Clause 8(3)(b) is amended by striking out "licence,".

THE FINANCIAL ADMINISTRATION ACT

C.C.S.M. c. F55 amended

82          Section 52 of The Financial Administration Act is amended

(a) in clause (a),

(i) by striking out "the Bank of Canada Canadian dollar noon spot exchange rate" and substituting "the rate of exchange quoted by the Bank of Canada for that currency", and

(ii) by adding "or, if more than one or no such rate is quoted, the rate of exchange selected or determined by the Minister of Finance" at the end; and

(b) in subclause (b)(ii), by striking out everything after "converted at" and substituting "the rate of exchange quoted by the Bank of Canada for that currency on the settlement date for the loan or, if more than one or no such rate is quoted, the rate of exchange selected or determined by the Minister of Finance; and".

THE FUEL TAX ACT

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

83          The Fuel Tax Act is amended by adding the following after subsection 6(2):

Single-trip permit

6(2.1)      If tax is payable by an operator under subsection (2) in respect of a trip,

(a) a single-trip permit, which may be in the form of a single-trip permit number, is to be issued to the operator upon payment of the tax payable for that trip; and

(b) until a single-trip permit has been issued for that trip, the operator must not operate the vehicle in Manitoba as a part of that trip.

THE HEALTH AND POST SECONDARY EDUCATION TAX LEVY ACT

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

84          Clause 3(3.16)(f) of The Health and Post Secondary Education Tax Levy Act is amended by striking out "the corporation and all the corporations associated with it" and substituting "the associated group".

THE LABOUR-SPONSORED VENTURE CAPITAL CORPORATIONS ACT

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

85(1)       The Labour-Sponsored Venture Capital Corporations Act is amended by this section.

85(2)       The definition "administrator" in subsection 1(1) is amended by striking out "administrator appointed" and substituting "person appointed or designated as the administrator".

85(3)       Subsection 10.1(1) is amended

(a) in the section heading, by striking out "independent"; and

(b) in the part before clause (a), by striking out "appoint a person, other than a civil servant," and substituting "designate a person employed under the minister, or appoint a person who is not a civil servant,".

85(4)       Subsection 10.1(3) is replaced with the following:

Term of office, remuneration, support and reporting

10.1(3)     If the administrator is not a person employed under the minister,

(a) the administrator is to hold office for the term fixed by the minister, or until the minister revokes the appointment or designates or appoints another person as his or her successor;

(b) the minister may determine the remuneration and expenses to be paid to the administrator;

(c) the minister may provide clerical and administrative support to the administrator;

(d) the administrator must prepare and provide to the minister, within three months after the end of each fiscal year of the government and whenever else the minister requires, a report containing such information as the minister requires about the administration and enforcement of the provisions of this Act for which the administrator is responsible.

85(5)       Subsections 10.1(4) to (6) are repealed.

THE MARRIAGE ACT

C.C.S.M. c. M50 amended

86          Section 33 of The Marriage Act is amended by adding the following after clause (b):

(b.1) prescribing fees in respect of registrations or appointments under this Act and requiring them to be paid;

THE MUNICIPAL TAXATION AND FUNDING ACT

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

87(1)       The Municipal Taxation and Funding Act is amended by this section.

87(2)       The heading for Part 2 is replaced with "STRATEGIC MUNICIPAL INVESTMENT FUND".

87(3)       Section 6 is amended

(a) by repealing the definitions ""fuel" and "aviation fuel"", "gasoline", "motive fuel" and "taxable litre";

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

"local capital project" means a capital project for the benefit of the residents of one or more municipalities that involves the acquisition or development of a facility, structure or land, or the upgrading or replacement of a facility or structure. (« projet d'immobilisations local »)

(c) in the definition "municipal grant",

(i) in the part before clause (a), by adding "for capital or operating purposes" after "grant",

(ii) in clause (b), by striking out "a municipality" and substituting "one or more municipalities",

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

(c) to a corporation or other organization that provides facilities or other things for the benefit of the residents of one or more municipalities, if the minister considers the provision of financial support for those facilities or other things to be in the interest of the residents of those municipalities.

87(4)       Subsection 7(1) is replaced with the following:

Strategic Municipal Investment Fund established

7(1)        A special account to be known as the "Strategic Municipal Investment Fund" is to be established in the Consolidated Fund.

87(5)       The following is added after subsection 7(1):

Estimates of expenditure for fund

7(1.1)      The government's estimates of expenditure for a fiscal year must include an amount to be voted for the purposes of the fund in that fiscal year.

87(6)       Subsection 7(4) is amended by striking out "may be used only" and substituting "are to be used".

87(7)       The following is added after subsection 7(4):

Unspent fund monies to lapse at end of fiscal year

7(5)        Amounts credited to the fund in a fiscal year and not paid out in that fiscal year lapse in accordance with section 37 of The Financial Administration Act.

87(8)       Sections 8 and 8.1 and subsection 9(1.1) are repealed.

87(9)       Subsection 9(2) is amended by renumbering it as subsection 7(6).

THE BUDGET IMPLEMENTATION AND TAX STATUTES AMENDMENT ACT, 2015

S.M. 2015, c. 40 amended

88(1)       The Budget Implementation and Tax Statutes Amendment Act, 2015, S.M. 2015, c. 40, is amended by this section.

88(2)       Subsection 37(2) of the French version is amended by replacing clauses (b) and (c) with the following:

b) dans le passage introductif de l'alinéa a), par adjonction, après « à moins que », de « le prix d'achat soit égal à zéro ou que »;

c) dans le passage introductif de l'alinéa b), par adjonction, après « à moins que », de « le prix d'achat soit égal à zéro ou que ».

88(3)       Subsection 39(7) of the French version is amended by replacing clause (a) with the following:

a) dans le sous-alinéa (xii), par substitution, à « le polyéthylène », de « les bâches en polyéthylène »;

PART 7

COMING INTO FORCE

Coming into force

89(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

89(2)       Section 10 is deemed to have come into force on May 1, 2017 and applies to fiscal years ending on or after that day.

Part 2: The Income Tax Act

89(3)       Subsections 20(1), (3) and (7) are deemed to have come into force on January 1, 2015.

89(4)       Subsections 20(2) and (6) are deemed to have come into force on January 1, 2017.

89(5)       Subsections 20(4) and (8) are deemed to have come into force on January 1, 2016.

89(6)       Subsection 29(1) is deemed to have come into force on January 1, 2016.

89(7)       Subsection 32(1) is deemed to have come into force on April 12, 2017 and applies to acknowledgments submitted on or after that day.

89(8)       Subsection 32(2) is deemed to have come into force on January 1, 2017.

89(9)       Section 33 is deemed to have come into force on April 11, 2017.

89(10)      Subsection 34(4) is deemed to have come into force on September 30, 2003.

89(11)      Section 35 and subsections 36(1) to (3) are deemed to have come into force on April 11, 2017.

89(12)      Subsection 36(4) is deemed to have come into force on June 11, 2009.

89(13)      Sections 37 to 39 are deemed to have come into force on April 11, 2017.

89(14)      Section 40 is deemed to have come into force on January 1, 2017 and applies to salary and wages paid for employment within a taxation year that ends on or after that day.

89(15)      Sections 41 and 42 are deemed to have come into force on April 11, 2017.

Part 3: The Property Tax Insulation and Assistance Act

89(16)      Section 54 is deemed to have come into force on January 1, 2017.

Part 4: The Retail Sales Tax Act

89(17)      Section 58 is deemed to have come into force on April 17, 2013.

Part 6: Miscellaneous provisions

89(18)      Section 81 comes into force on a day to be fixed by proclamation.

89(19)      Section 87 is deemed to have come into force on April 1, 2017.

89(20)      Section 88 is deemed to have come into force on November 5, 2015.

SCHEDULE A

THE INSURANCE CORPORATIONS TAX ACT

TABLE OF CONTENTS

Section

INTRODUCTORY PROVISIONS

1   Definitions

2   Administration and enforcement

3   Tax payable to the government

IMPOSITION OF TAX

4   Tax payable by insurer

5   Tax payable by special broker

6   Tax payable by insurance purchaser

7   Exemptions from tax

8   Due date for tax payable

9   Information returns

TRANSITIONAL PROVISIONS, AMENDMENTS AND REPEALS

10   Transitional provisions

11   C.C.S.M. F80 amended

12   C.C.S.M. I40 amended

13   C.C.S.M. T2 amended

14   Repeals

C.C.S.M. REFERENCE AND COMING INTO FORCE

15   C.C.S.M. reference

16   Coming into force

THE INSURANCE CORPORATIONS TAX ACT

INTRODUCTORY PROVISIONS

Definitions

1(1)        The following definitions apply in this Act.

"director" means

(a) the Deputy Minister of Finance; or

(b) an Assistant Deputy Minister of Finance. (« directeur »)

"dividend" includes any amount that is payable or to be credited by an insurer to its insured and is composed in whole or in part of a portion of the amount previously paid by the insured as a premium. (« participation »)

"insurer" means a person who undertakes to provide insurance under a contract of insurance. It includes

(a) an attorney authorized to act for, or acting for, a reciprocal or inter-insurance exchange;

(b) an underwriter or syndicate of underwriters operating on the plan known as "Lloyd's"; and

(c) the United Health Services Corporation;

but does not include a fraternal society, friendly society or employees' mutual benefit society. (« assureur »)

"Manitoba premium" means

(a) in the case of life insurance,

(i) the premium for insurance on the life of a person who is resident in Manitoba when the premium is due, and

(ii) if it is a group contract, the portion of the premium that relates to insurance on the lives of persons who are resident in Manitoba when the premium is due;

(b) in the case of any other insurance, whether it is an individual or group contract, the whole or any portion of the premium that relates to insurance for or in respect of

(i) one or more persons who are resident in Manitoba when the premium is due, or

(ii) property that is situated in Manitoba.

It does not include a premium under a contract of reinsurance. (« prime manitobaine »)

"minister" means the Minister of Finance for Manitoba. (« ministre »)

"net Manitoba premiums" for a taxation year in relation to any type or class of insurance means the total of the insurer's Manitoba premiums for that type or class minus the following amounts:

(a) the cash value of any dividend paid or credited for that taxation year in respect of contracts of insurance on which Manitoba premiums were paid for that type or class of insurance;

(b) the value of any Manitoba premiums paid for that type or class of insurance that were returned in that year to policyholders or their personal representatives or beneficiaries. (« primes manitobaines nettes »)

"premium" means

(a) a single or periodic payment made as consideration under a contract of insurance; and

(b) an amount collected under a reciprocal contract of indemnity or inter-insurance. (« prime »)

"special broker" means a person who procures or arranges for another person, or assists another person to obtain, insurance from an unlicensed insurer. (« courtier spécial »)

"taxation year" means a calendar year. (« année d'imposition »)

"unlicensed insurer" means an insurer who is not licensed under The Insurance Act to carry on an insurance business in Manitoba. (« assureur non titulaire d'une licence »)

Terms used in The Insurance Act

1(2)        In this Act,

(a) "class", "contract", "employees' mutual benefit society", "fraternal society", "friendly society", "insurance", "premium note" and "reciprocal or inter-insurance exchange" have the same meaning as in section 1 of The Insurance Act; and

(b) a reference to "accident and sickness insurance", "aircraft insurance", "automobile insurance", "hail insurance" or "life insurance" is a reference to the corresponding class of insurance prescribed by regulation under The Insurance Act.

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.

IMPOSITION OF TAX

Tax payable by insurer

4(1)        For each taxation year after 2017, an insurer must pay a tax equal to the total of

(a) 2% of the insurer's net Manitoba premiums for that year under

(i) contracts of life insurance, and

(ii) contracts of accident and sickness insurance;

(b) 3% of the insurer's net Manitoba premiums for that year under other contracts of insurance.

Additional tax on property insurance

4(2)        For each taxation year after 2017, an insurer must pay a tax equal to 1.25% of the net Manitoba premiums payable to the insurer in respect of contracts of property insurance other than

(a) aircraft insurance, automobile insurance and hail insurance; and

(b) insurance against loss or damage to an automobile caused by fire, if that insurance is not incidental to automobile insurance.

This tax is in addition to the tax payable under subsection (1).

Additional tax for Fires Prevention Fund

4(3)        The proceeds of the tax payable under subsection (2) are to be deposited in the Fires Prevention Fund referred to in section 37 of The Fires Prevention and Emergency Response Act.

Tax payable by special broker

5            If a contract of insurance with an unlicensed insurer (other than Manitoba Public Insurance Corporation or United Health Services Corporation) is procured or arranged by or obtained with the assistance of a special broker, or continued or renewed through a special broker, section 4 applies not to the insurer but to the special broker as if

(a) the special broker were a licensed insurer; and

(b) the premiums payable for that insurance were payable to the broker and included in the broker's net Manitoba premiums.

Tax payable by insurance purchaser

6(1)        A person who enters into a contract of insurance with an unlicensed insurer, other than a contract to which section 5 applies, must pay a tax equal to the premium payable under or in respect of that contract multiplied by the percentage that applies under section 4 to an insurer's net Manitoba premiums for that type or class of insurance.

Refund of tax if premium refunded

6(2)        If any part of a premium in respect of which tax was paid under this section is refunded, the minister may refund the tax paid in respect of the refunded amount.

Exemptions from tax

7            Despite sections 4 to 6, no tax is payable under this Act on the following:

(a) amounts received or receivable by an insurer, or paid or payable by any person, as consideration for a contract (commonly referred to as an "annuity contract") that provides for the payment of an income for a specified period or for life and under the terms of which the sole benefit stated to be payable by reason of death does not exceed the total of the amounts paid as consideration for the contract together with interest;

(b) premiums paid or payable under a premium note to a mutual insurance company in respect of fire insurance or hail insurance;

(c) premiums paid or payable under a contract of marine insurance as defined in The Marine Insurance Act.

Due date for tax payable by insurer or broker

8(1)        The tax payable by an insurer or special broker for a taxation year must be paid to the minister on or before March 20 of the following year.

Due date for tax payable by insurance purchaser

8(2)        The tax payable under section 6 in respect of a premium must be paid to the minister on or before the 20th day of the month following the month in which the premium became payable.

Information return by insurer or broker

9(1)        On or before March 20 of each year, an insurer or special broker who is required to pay tax for the immediately preceding taxation year must file with the director a completed information return in a form approved by the director.

Information return by insurance purchaser

9(2)        A person who is required to pay the tax under section 6 in respect of a contract of insurance must file a report with the director, in a manner approved by the director, on or before the 20th day of the month following the month in which the contract was entered into.

TRANSITIONAL PROVISIONS, AMENDMENTS AND REPEALS

Transitional

10(1)       In this section, "former Act" means

(a) The Insurance Corporations Tax Act, R.S.M. 1987, c. I50;

(b) section 31 of The Fires Prevention and Emergency Response Act; and

(c) the Property Insurance Assessment Regulation, Manitoba Regulation 174/2008;

as they read immediately before being repealed by this Act.

10(2)       Despite the provisions of the former Act, Part 1 of The Tax Administration and Miscellaneous Taxes Act applies to the administration of the former Act as if it were a tax Act as defined in The Tax Administration and Miscellaneous Taxes Act.

10(3)       Despite the repeal of the former Act but subject to subsection (2), the former Act continues to apply in respect of any tax imposed by the former Act in respect of a taxation year before 2018.

10(4)       The Lieutenant Governor in Council may make regulations respecting

(a) the administration the former Act in accordance with Part 1 of The Tax Administration and Miscellaneous Taxes Act;

(b) the transition from the former Act to this Act and any transitional or other problem arising from the repeal of the former Act before all taxes imposed by that Act have been paid.

C.C.S.M. c. F80 amended

11          Section 31 and clause 46(1)(j) of The Fires Prevention and Emergency Response Act are repealed.

C.C.S.M. c. I40 amended

12(1)       The Insurance Act is amended by this section.

12(2)       Clause 20(1)(a) is replaced with the following:

(a) prepare for the minister an annual report that

(i) shows the particulars of the business of each licensed insurer as ascertained from the insurer's statements and from inspections, financial examinations and inquiries under this Act, and

(ii) lists the persons licensed as special insurance brokers; and

12(3)       Section 37.1 is replaced with the following:

Minister may suspend or cancel licence

37.1        The minister may suspend or cancel, with or without conditions, the licence of an insurer or special insurance broker who

(a) is convicted of an offence mentioned in subsection 410(1);

(b) fails to pay when it is due any tax payable under The Insurance Corporations Tax Act; or

(c) fails to collect and remit when it is due any tax to be collected and remitted under The Retail Sales Tax Act in respect of an insurance premium.

12(4)       Subsection 382(3) is repealed.

12(5)       Clause 382(6)(c) is replaced with the following:

(c) setting out information about contracts arranged with unlicensed insurers during the month, including, for each contract,

(i) the name of the insured,

(ii) the nature of the insurance,

(iii) the name of the unlicensed insurer, and

(iv) the amount of insurance placed and the rate and amount of the premium paid,

and any other information required by the superintendent.

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

13          The definition "tax Act" in subsection 1(1) of The Tax Administration and Miscellaneous Taxes Act is amended by adding the following after clause (c):

(c.1) The Insurance Corporations Tax Act;

Repeal

14          The following are repealed:

(a) The Insurance Corporations Tax Act, R.S.M. 1987, c. I50;

(b) the Insurance Corporations Tax Regulation, Manitoba Regulation 391/87 R;

(c) the Property Insurance Assessment Regulation, Manitoba Regulation 174/2008.

C.C.S.M. REFERENCE AND COMING INTO FORCE

C.C.S.M. reference

15          This Act may be referred to as chapter I50 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

16          This Act comes into force on January 1, 2018.