Français   Site Map
 
This is an unofficial version.
If you need an official copy, use the bilingual (PDF) version.

This version is current as of August 29, 2014.
It has been in effect since July 01, 2014.

Show previous versions Hide previous versions


 

C.C.S.M. c. I10

The Income Tax Act

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

Definitions

1(1)        In this Act,

"agreeing province" means a province that has entered into an agreement with the Government of Canada under which the Government of Canada will collect taxes payable under that province's income tax statute and will make payments to that province in respect of taxes so collected; (« province participante »)

"collection agreement" means an agreement entered into pursuant to subsection 61(1); (« arrangement relatif à la perception »)

"court" means the Court of Queen's Bench of Manitoba; (« tribunal »)

"deputy head" means

(a) if no collection agreement is in effect, the Deputy Minister of Finance for Manitoba, and

(b) if a collection agreement is in effect, the Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act (Canada); (« administrateur général »)

"federal Act" means the Income Tax Act (Canada), as amended from time to time; (« loi fédérale »)

"federal regulations" means the regulations made under the federal Act, as amended from time to time; (« règlements fédéraux »)

"income for the year" of an individual means

(a) if section 114 of the federal Act applies in determining the individual's taxable income for the year, the amount determined under paragraph (a) of that section,

(b) if subsection 115(1) of the federal Act applies in determining the individual's taxable income earned in Canada for the year, the amount that would be the individual's taxable income earned in Canada for the year if that subsection ended after paragraph (c), and

(c) in any other case, the individual's income for the year as determined under Part I of the federal Act; (« revenu pour l'année »)

"income tax statute" means, with reference to an agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act; (« loi de l'impôt sur le revenu »)

"individual" means a person other than a corporation and, except in section 5, includes a trust or estate; (« particulier »)

"loss" means a loss as determined in accordance with, and for the purposes of, the federal Act; (« perte »)

"Manitoba income" of an individual for a taxation year means the individual's income earned in the year in Manitoba, as determined under the federal regulations made for the purpose of the definition "income earned in the year in a province" in subsection 120(4) of the federal Act; (« revenu gagné au Manitoba »)

"minister" means, except as otherwise provided,

(a) if no collection agreement is in effect, the Minister of Finance for Manitoba, and

(b) if a collection agreement is in effect, the Minister of National Revenue for Canada,

but in applying any provision of the federal Act for the purposes of this Act, a reference in such a provision to "minister" shall be read as a reference to the treasurer; (« ministre »)

"permanent establishment", where used for a purpose under this Act, has the meaning assigned for the same or a similar purpose in the federal regulations; (« établissement permanent »)

"prescribed" means

(a) in relation to a form, authorized under this Act by the Minister of Finance for Manitoba, and

(b) in any other case, prescribed by the regulations,

but, in applying any provision of the federal Act for the purposes of this Act and when used in reference to something prescribed under the federal Act, it has the meaning assigned by subsection 248(1) of the federal Act; (« prescrit »)

"province" means a province of Canada and includes the Yukon Territory, the Northwest Territories and Nunavut; (« province »)

"Receiver General" means the Receiver General for Canada but, in applying any provision of the federal Act for the purposes of this Act, a reference in the provision to "Receiver General" shall be read as a reference to the treasurer; (« receveur général »)

"regulations" means the regulations made under this Act; (« règlements »)

"taxation year" of a person means the period determined under the federal Act as the person's taxation year; (« année d'imposition »)

"treasurer" means

(a) the Minister of Finance for Manitoba, if no collection agreement is in effect, and

(b) if a collection agreement is in effect,

(i) the Receiver General, in relation to the remittance of an amount as or on account of any tax, interest or penalty payable under this Act, and

(ii) the minister, in relation to the administration and enforcement of this Act other than sections 61 to 65; (« trésorier »)

1(1.1) and (1.2)  [Repealed] S.M. 2000, c. 39, s. 26.

"Last day of the taxation year"

1(2)        The expression "last day of the taxation year" shall, in the case of an individual who resided in Canada at any time in the taxation year but ceased to reside in Canada before the last day thereof, be deemed to be a reference to the last day in the taxation year on which he resided in Canada.

Tax payable

1(3)        The tax payable by a taxpayer under this Act or under Part I of the federal Act means the tax payable by him as fixed by assessment or re-assessment subject to variation on objection or on appeal, if any, in accordance with this Act, or Part I of the federal Act, as the case may be.

Definitions under federal Act

1(4)        For the purposes of this Act, except where they are at variance with the definitions contained in this section, the definitions and interpretations contained in, or made by regulations under, the federal Act apply.

Interpretation generally

1(5)        In any case of doubt, the provisions of this Act shall be applied and interpreted in a manner consistent with similar provisions of the federal Act.

Modification of federal provisions

1(6)        Where a section, subsection, definition or provision (in this subsection referred to as "the section") of the federal Act or the federal regulations is made applicable for the purposes of this Act, the section, as amended from time to time, applies with such modifications as the circumstances require for the purposes of this Act as though enacted as a provision of this Act and in applying the section for the purposes of this Act, in addition to any other modifications required by the circumstances,

(a) a reference in the section to tax under Part I of the federal Act shall be read as a reference to tax under this Act;

(b) where the section contains a reference to tax under any of Parts I.1 to XIV of the federal Act, the section shall be read without reference to tax under any of those Parts and without reference to any portion of the section that applies only to or in respect of tax under any of those Parts;

(c) a reference in the section to a particular provision of the federal Act that is the same as or similar to a provision of this Act shall be read as a reference to the provision of this Act;

(d) a reference in the section to a particular provision of the federal Act that applies for the purposes of this Act shall be read as a reference to the particular provision as it applies for the purposes of this Act;

(e) where the section contains a reference to any of Parts I.1 to XIV of the federal Act or to a provision in any of those Parts, the section shall be read without reference to the Part or the provision and without reference to any portion of the section that applies only because of the application of any of those Parts or the application of a provision in any of those Parts;

(f) where the section contains a reference to the Bankruptcy and Insolvency Act, the section shall be read without reference to the Bankruptcy and Insolvency Act;

(g) a reference in the section to a federal regulation that applies for the purposes of this Act shall be read as a reference to the regulation as it applies for the purposes of this Act;

(g.1) a reference in the section to "under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act" shall be read as "under this Act";

(h) a reference in the section to a word or expression in the left hand column of the following table shall be read as a reference to the word or expression opposite in the right hand column of the table:

TABLE

Her Majesty Her Majesty in right of the Province of Manitoba
Canada Manitoba
Criminal Code The Summary Convictions Act
Receiver General treasurer
Canada Customs and Revenue Agency Department of Finance
Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act deputy head
Deputy Attorney General of Canada Deputy Minister of Justice
Tax Court of Canada Court of Queen's Bench of Manitoba
Tax Court of Canada Act The Court of Queen's Bench Act
Federal Court of Canada Court of Queen's Bench of Manitoba
Federal Court Act The Court of Queen's Bench Act
Registrar of the Tax Court of Canada registrar of the Court of Queen's Bench of Manitoba
Registry of the Federal Court an administrative centre of the Court of Queen's Bench of Manitoba

Negative amounts

1(7)        Except as otherwise provided in this Act, if an amount or number that is required by this Act to be determined by or in accordance with a formula would, but for this subsection, be a negative amount or number, the amount or number is deemed to be nil.

S.M. 1989-90, c. 15, s. 12; S.M. 1993, c. 46, s. 35; S.M. 1997, c. 49, s. 15; S.M. 1999, c. 17, s. 2; S.M. 2000, c. 39, s. 26; S.M. 2001, c. 41, s. 12; S.M. 2014, c. 35, s. 33.

"Federal application rule" defined

1.1(1)      In this section, "federal application rule" means a provision of an Act of Parliament or of the federal regulations that

(a) modifies the application of a provision of the federal Act or the federal regulations; or

(b) makes a provision, or the repeal or amendment of a provision, of the federal Act or the federal regulations apply

(i) to specified taxation years,

(ii) to specified fiscal periods,

(iii) after a specified time, or

(iv) to transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods.

Application of federal Act and regulations

1.1(2)      In applying the provisions of the federal Act and the federal regulations for the purposes of this Act,

(a) every applicable federal application rule shall be applied, with necessary modifications, for the purposes of this Act; and

(b) each provision, and each amendment or repeal of a provision, of the federal Act or the federal regulations to which no federal application rule applies is deemed to come into force for the purposes of this Act on the day it comes into force for the purposes of the federal Act.

S.M. 2000, c. 39, s. 27.

Compound interest

2(1)        Subsection 248(11) of the federal Act applies for the purposes of this Act.

2(2)        [Repealed] S.M. 2000, c. 39, s. 28.

S.M. 1989-90, c. 15, s. 13; S.M. 1993, c. 46, s. 36; S.M. 2000, c. 39, s. 28.

PART I

INCOME TAX

DIVISION I

LIABILITY FOR TAX

Individuals liable to pay tax

3(1)        An individual must pay tax under this Part for a taxation year if he or she

(a) was resident in Manitoba on the last day of the taxation year; or

(b) was not resident in Manitoba on the last day of the taxation year but had Manitoba income for the year.

Corporations liable to pay tax

3(2)        Every corporation that maintains a permanent establishment in Manitoba at any time in a taxation year must pay tax under this Part for the year.

Exemptions

3(3)        Despite subsections (1) and (2), no tax is payable under this Part by

(a) a person for a period during which the person was exempt from tax under the federal Act because of subsection 149(1) of that Act; or

(b) a corporation for a period during which the corporation was a non-resident-owned investment corporation.

3(4) to (6) [Repealed] S.M. 2005, c. 40, s. 26.

S.M. 1989-90, c. 15, s. 14; S.M. 2000, c. 39, s. 29; S.M. 2002, c. 19, s. 17; S.M. 2005, c. 40, s. 26.

DIVISION II

COMPUTATION OF TAX

INDIVIDUAL INCOME TAX

Rules for Computing Tax

Rules for computing individual's tax payable

4(1)        The following rules apply in computing an individual's tax payable under this Part for a taxation year:

Rule 1

For the 2001 and subsequent taxation years, determine the individual's basic tax payable for the year

(a) under subsection 4.1(3), in the case of an inter vivos trust referred to in that subsection; and

(b) in any other case,

(i) under subsection 4.1(1) for the 2001 taxation year,

(ii) under subsection 4.1(2) for the 2002 taxation year,

(iii) under subsection 4.1(2.1) for the 2003 taxation year,

(iv) under subsection 4.1(2.2) for the 2004 and 2005 taxation years,

(v) under subsection 4.1(2.3) for the 2006 taxation year,

(vi) under subsection 4.1(2.4) of the 2007 taxation year,

(vii) under subsection 4.1(2.5) for the 2008 taxation year, and

(viii) under subsection 4.1(2.6) for the 2009 and subsequent taxation years.

Rule 1.1 [Repealed] S.M. 2006, c. 24, s. 28.

Rule 2

Determine under section 4.3 the individual's lump sum tax payable for the year, if any.

Rule 3

Determine under section 4.4 the individual's tax on split income, if any.

Rule 4

Determine the amount, if any, by which

(a) the total of the amounts determined under Rules 1 to 3;

exceeds

(b) the total of the individual's non-refundable tax credits determined under subsection 4.6(2) for the year.

Rule 5

Add to the amount determined under Rule 4 the individual's additional minimum tax, if any, determined under section 4.5.

Rule 6

Multiply the total determined under Rule 5 by the individual's Manitoba percentage for the year.  If the Manitoba percentage is less than 100%, add the amount determined by the following formula:

In this formula, T is the total of the following amounts:

(a) the total of the amounts claimed by the individual for the taxation year under the following provisions, multiplied by the percentage that applies to that year under clause 4.6(2)(a):

(i) subsection 4.6(10) (pension income amount),

(ii) subsection 4.6(10.1) (adoption costs),

(iii) subsections 4.6(10.2) and (10.4) (fitness tax credit),

(iv) subsections 4.6(10.7) and (10.8) (children's arts and cultural activity tax credit);

(b) and (b.1)  [repealed] S.M. 2011, c. 41, s. 14;

(c) the individual's dividend tax credit for the year determined under section 4.7;

(d) the individual's overseas employment tax credit for the year determined under section 4.8.

Rule 7

Determine the amount, if any, by which the amount determined under Rule 6 exceeds the total of the following amounts:

(a) the individual's Manitoba political contribution credit determined under section 4.11;

(b) the individual's labour-sponsored funds tax credit determined under subsection 11.1(2.1);

(c) the individual's equity tax credit determined under subsection 11.6(3);

(d) the total of the individual's foreign tax credits for the year determined under section 4.12;

(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);

(e) if the individual is not a trust, the individual's mineral exploration tax credit determined under subsection 11.7(2);

(f) 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 three immediately following taxation years as determined under subsection 11.7(3);

(g) if the individual is not a trust, the total of

(i) the individual's non-refundable community enterprise development tax credit for the year determined under subsection 11.8(2.3),

(ii) the individual's small business venture capital tax credit for the year determined under section 11.13, and

(iii) the individual's non-refundable employee share purchase tax credit for the year determined under subsection 11.20(4);

(h) the amount, if any, deductible by the individual under subsection 10.2(1) (odour-control tax credit of farmer), as determined after deducting the amounts referred to in clauses (a) to (g) and before applying Rule 9;

(i) the amount, if any, claimed by the individual under section 4.9.1 (graduate's tuition fee income tax rebate).

Rule 8

Determine the greater of

(a) the amount determined under Rule 7; and

(b) the amount, if any, by which the individual's Manitoba percentage of his or her tax on split income determined under section 4.4, exceeds

(i) the individual's Manitoba percentage of the portion of his or her dividend tax credit under section 4.7 that can reasonably be considered to relate to that split income, and

(ii) the portion of his or her foreign tax credit under section 4.12 that can reasonably be considered to relate to that split income.

Rule 9

Subtract the following amounts from the amount determined under Rule 8:

(a) the total of the individual's refundable tax credits claimed under section 5;

(b) the amount, if any, that the individual is deemed by subsection 10.1(1) (refundable co-op education and apprenticeship tax credit of employer) to have paid on account of his or her tax payable for the year;

(c) the amount, if any, that the individual is deemed by subsection 10.2(1.1) (refundable odour-control tax credit of farmer) to have paid on account of his or her tax payable for the year;

(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;

(d) the amount, if any, that the individual is deemed by section 10.3 (refundable green energy equipment tax credit) to have paid on account of his or her tax payable for the year;

(e) the amount, if any, that the individual is deemed by subsection 10.4(1) (Manitoba book publishing tax credit) to have paid on account of his or her tax payable for the year;

(f) the amount, if any, that the individual is deemed by subsection 10.4.1(1) (cultural industries printing tax credit) to have paid on account of his or her tax payable for the year;

(g) the amount, if any, that the individual is deemed by subsection 11.8(2.2) (community enterprise development tax credit) to have paid on account of his or her tax payable for the year;

(h) the individual's refundable employee share purchase tax credit for the year determined under subsection 11.20(3).

Rule 10

If the amount determined under Rule 9 is a positive amount, the individual's tax payable for the year under this Part is equal to that amount.

Rule 11

If the amount determined under Rule 9 is nil or a negative amount, the individual's tax payable for the year under this Part is nil and the amount, if any, by which it is negative is deemed to be an overpayment by the individual on account of his or her tax payable for the year under this Part.

"Manitoba percentage" defined

4(2)        For the purposes of subsection (1), an individual's "Manitoba percentage" for a taxation year is the proportion, expressed as a percentage, that his or her Manitoba income for the year is of his or her income for the year.

S.M. 1988-89, c. 19, s. 18; S.M. 1989-90, c. 15, s. 15; S.M. 1992, c. 52, s. 26; S.M. 1993, c. 46, s. 37; S.M. 1994, c. 23, s. 12; S.M. 1995, c. 30, s. 7 and 8; S.M. 1996, c. 66, s. 7; S.M. 1998, c. 30, s. 26; S.M. 1999, c. 3, s. 5; S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 13; S.M. 2002, c. 19, s. 18; S.M. 2003, c. 4, s. 34; S.M. 2004, c. 43, s. 44; S.M. 2005, c. 40, s. 27; S.M. 2006, c. 24, s. 28; S.M. 2007, c. 6, s. 24; S.M. 2008, c. 3, s. 18; S.M. 2011, c. 41, s. 14; S.M. 2012, c. 1, s. 19; S.M. 2014, c. 35, s. 34.

Basic Tax Payable — 2001 and Later Years

Basic tax payable — 2001 taxation year

4.1(1)      An individual's basic tax payable for the 2001 taxation year is the amount determined according to the following table:


Taxable income (TI)

Basic tax payable (BT)
$30,544. or less BT = 10.9% × TI
more than $30,544. but not more than $61,089. BT = $3,329. + 16.2% × (TI − $30,544.)
more than $61,089. BT = $8,277. + 17.4% × (TI − $61,089.)

Basic tax payable — 2002 taxation year

4.1(2)      An individual's basic tax payable for the 2002 taxation year is the amount determined according to the following table:

Taxable income (TI) Basic tax payable (BT)
$30,544. or less BT = 10.9% × TI
more than $30,544. but not more than $65,000. BT = $3,329. + 15.4% × (TI − $30,544.)
more than $65,000. BT = $8,635. + 17.4% × (TI − $65,000.)

Basic tax payable — 2003 taxation year

4.1(2.1)    An individual's basic tax payable for the 2003 taxation year is the amount determined according to the following table:

Taxable income (TI) Basic tax payable (BT)
$30,544. or less BT = 10.9% × TI
more than $30,544. but not more than $65,000. BT = $3,329. + 14.9% × (TI − $30,544.)
more than $65,000. BT = $8,463. + 17.4% × (TI − $65,000.)

Basic tax payable — 2004 and 2005 taxation years

4.1(2.2)    An individual's basic tax payable for each of the 2004 and 2005 taxation years is the amount determined according to the following table:

Taxable income (TI) Basic tax payable (BT)
$30,544. or less BT = 10.9% × TI
more than $30,544. but not more than $65,000. BT = $3,329. + 14% × (TI − $30,544.)
more than $65,000. BT = $8,153. + 17.4% × (TI − $65,000.)

Basic tax payable — 2006 taxation year

4.1(2.3)    An individual's basic tax payable for the 2006 taxation year is the amount determined according to the following table:

Taxable income (TI) Basic tax payable (BT)
$30,544. or less BT = 10.9% × TI
more than $30,544. but not more than $65,000. BT = $3,329. + 13.5% × (TI − $30,544.)
more than $65,000. BT = $7,981. + 17.4% × (TI − $65,000.)

Basic tax payable — 2007 taxation year

4.1(2.4)    An individual's basic tax payable for the 2007 taxation year is the amount determined according to the following table:

Taxable income (TI) Basic tax payable (BT)
$30,544. or less BT = 10.9% × TI
more than $30,544. but not more than $65,000. BT = $3,329. + 13% × (TI - $30,544.)
more than $65,000. BT = $7,809. + 17.4% × (TI - $65,000.)

Basic tax payable — 2008 taxation year

4.1(2.5)    An individual's basic tax payable for the 2008 taxation year is the amount determined according to the following table:

Taxable income (TI) Basic tax payable (BT)
$30,544. or less BT = 10.9% × TI
more than $30,544. but not more than $66,000. BT = $3,329. + 12.75% × (TI − $30,544.)
more than $66,000. BT = $7,850. + 17.4% × (TI − $66,000.)

Basic tax payable — 2009 and subsequent taxation years

4.1(2.6)    An individual's basic tax payable for the 2009 taxation year and for each subsequent taxation year is the amount determined according to the following table:

Taxable income (TI) Basic tax payable (BT)
$31,000. or less BT = 10.8% × TI
more than $31,000. but not more than $67,000. BT = $3,348. + 12.75% × (TI − $31,000.)
more than $67,000. BT = $7,938. + 17.4% × (TI − $67,000.)

Basic tax payable by inter vivos trust

4.1(3)      Despite subsections (1) to (2.5), the basic tax payable for a taxation year for an inter vivos trust to which subsection 122(1) of the federal Act applies is 17.4% of the trust's taxable income for the year.

S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 14; S.M. 2003, c. 4, s. 35; S.M. 2005, c. 40, s. 28; S.M. 2006, c. 24, s. 29; S.M. 2007, c. 6, s. 25; S.M. 2008, c. 3, s. 19.

4.2         [Repealed]

S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 15; S.M. 2006, c. 24, s. 30.

Tax on Lump Sums

Tax on lump sums

4.3         An individual's lump sum tax payable for a taxation year is 50% of the total of the amounts added by sections 120.3 and 120.31 of the federal Act and section 40 of the Income Tax Application Rules (Canada) to the individual's tax payable for the year under the federal Act.

S.M. 2000, c. 39, s. 29.

Additional Taxes

Tax on split income

4.4         If section 120.4 of the federal Act applies to an individual for a taxation year, the individual's tax on split income for the year is 17.4% of his or her split income for the year as determined under that section.

S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 16.

Additional minimum tax

4.5         An individual's additional minimum tax payable for a taxation year is 50% of the amount that would be his or her additional tax for the year determined under subsection 120.2(3) of the federal Act if that subsection ended after paragraph (b).

S.M. 2000, c. 39, s. 29.

Non-Refundable Tax Credits

4.6(1)      [Repealed] S.M. 2006, c. 24, s. 31.

Non-refundable credits for 2001 and following

4.6(2)      For the 2001 and subsequent taxation years, the total of an individual's non-refundable credits is the total of

(a) all amounts, each of which is the following percentage of an amount claimed for the year under any of subsections (3) to (17) and subsection (19):

(i) 10.9%, if the taxation year ends before 2009,

(ii) 10.8%, if the taxation year ends after 2008;

(b) the individual's donations tax credit for the year determined under subsection (18);

(c) the individual's dividend tax credit for the year determined under section 4.7;

(d) the individual's overseas employment tax credit for the year determined under section 4.8; and

(e) the individual's minimum tax carry-over credit for the year determined under section 4.9.

Basic personal amount

4.6(3)      An individual may claim a basic personal amount of

(a) $7,634. for a taxation year ending after 2001 and before 2006;

(b) $7,734. for a taxation year ending in or at the end of 2006;

(c) $7,834. for a taxation year ending in or at the end of 2007;

(d) $8,034. for a taxation year ending after 2007 and before 2009;

(e) $8,134. for a taxation year ending after 2008 and before 2011;

(f) $8,384. for the 2011 taxation year;

(g) $8,634. for the 2012 taxation year;

(h) $8,884. for the 2013 taxation year; and

(i) $9,134. for a taxation year ending after 2013.

Age amount

4.6(4)      An individual who is at least 65 years old at the end of the taxation year may claim the amount determined by the following formula:

$3,728. − .15A

In this formula, A is the amount, if any, by which the individual's income for the year would exceed $27,749. if no amount were included in respect of a gain from a disposition of property to which section 79 of the federal Act applies in computing that income.

Claim re spouse or common-law partner

4.6(5)      An individual who at any time in the taxation year is

(a) married, supporting his or her spouse and not living separate and apart from the spouse because of a breakdown of their marriage; or

(b) in a common-law partnership, supporting his or her common-law partner, and not living separate and apart from the common-law partner because of a breakdown of their common-law partnership;

may claim

(c) for a taxation year ending after 2001 and before 2008, the amount determined by the following formula:

$6,482. − A + (the lesser of A and $649.)

(d) for a taxation year ending after 2007 and before 2009, the amount determined by the following formula:

$8,034. − A

(e) for a taxation year ending after 2008 and before 2011, the amount determined by the following formula:

$8,134. − A

(f) for the 2011 taxation year, the amount determined by the following formula:

$8,384. − A

(g) for the 2012 taxation year, the amount determined by the following formula:

$8,634. − A

(h) for the 2013 taxation year, the amount determined by the following formula:

$8,884. − A

(i) for a taxation year ending after 2013, the amount determined by the following formula:

$9,134. − A

In these formulas, A is the spouse's or partner's income for the year or, if the individual and the spouse or partner are living separate and apart at the end of the year because of a breakdown of their marriage or partnership, the spouse's or partner's income for the year while married or in the common-law partnership and not so separated.

Eligible dependant amount

4.6(6)      An individual to whom subsection (5) does not apply for the taxation year and who, at any time in the year,

(a) is unmarried and not in a common-law partnership, or is married or in a common-law partnership but neither supports nor lives with his or her spouse or common-law partner and is not supported by the spouse or common-law partner; and

(b) alone or jointly with one or more other persons, maintains a self-contained domestic establishment which is the individual's ordinary place of residence and actually supports in that establishment a person who, at that time, is

(i) except in the case of a child of the individual, resident in Canada,

(ii) wholly dependent for support on the individual, or the individual and the other person or persons, as the case may be,

(iii) related to the individual, and

(iv) except in the case of a parent or grandparent of the individual, either less than 18 years old or dependent on that support because of mental or physical infirmity;

may claim

(c) for a taxation year ending after 2001 and before 2008, the amount determined by the following formula:

$6,482. − A + (the lesser of A and $649.)

(d) for a taxation year ending after 2007 and before 2009, the amount determined by the following formula:

$8,034. − A

(e) for a taxation year ending after 2008 and before 2011, the amount determined by the following formula:

$8,134. − A

(f) for the 2011 taxation year, the amount determined by the following formula:

$8,384. − A

(g) for the 2012 taxation year, the amount determined by the following formula:

$8,634. − A

(h) for the 2013 taxation year, the amount determined by the following formula:

$8,884. − A

(i) for a taxation year ending after 2013, the amount determined by the following formula:

$9,134. − A

In these formulas, A is the dependant's income for the year.

Infirm dependant amounts

4.6(7)      An individual may claim, for each dependant of the individual who

(a) was at least 18 years old at the end of the taxation year; and

(b) was dependent in the year on the individual because of mental or physical infirmity;

the amount determined by the following formula:

$3,605. − (A − $5,115.) − B

In this formula,

A

is the greater of $5,115. and the dependant's income for the year; and

B

is the amount, if any, that the individual may claim under subsection (6).

Caregiver amount

4.6(8)      An individual who, at any time in the taxation year, alone or jointly with one or more persons, maintains a self-contained domestic establishment which is the ordinary place of residence of the individual and of another person

(a) who is at least 18 years old at that time;

(b) who is

(i) the individual's child or grandchild, or

(ii) resident in Canada and is the parent, grandparent, brother, sister, aunt, uncle, nephew or niece of the individual or the individual's spouse or common-law partner; and

(c) who is

(i) at least 65 years old at that time, if he or she is the individual's parent or grandparent, or

(ii) dependent on the individual because of mental or physical infirmity;

may claim the amount determined by the following formula:

$15,917. − A − B

In this formula,

A

is the greater of $12,312. and the other person's income for the year; and

B

is the amount, if any, that the individual may claim under subsection (6).

Pension contributions and EI premiums

4.6(9)      An individual who is entitled to deduct an amount under section 118.7 of the federal Act for the taxation year may claim the amount determined for B in the formula under that section.

Pension income amount

4.6(10)     An individual who was resident in Manitoba on the last day of the taxation year and who received pension income in the taxation year may claim an amount equal to the lesser of $1,000. and

(a) the pension income received by the individual in the year, if he or she is at least 65 years old at the end of the year; or

(b) the qualified pension income received by the individual in the year, if he or she is less than 65 years old at the end of the year.

Adoption costs

4.6(10.1)   An individual who is

(a) entitled to deduct an amount under subsection 118.01(2) of the federal Act for a taxation year beginning after 2005; 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 the amount in clause (a) of the description of B were "$10,000".

Fitness tax credit

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

(a) $500.; and

(b) the amount determined by the following formula:

A − B

In this formula,

A

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

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

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

B

is the total of all amounts each of which is

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

(ii) an amount that any person is or was entitled to receive as a reimbursement, allowance or other form of assistance, other than an amount that is included in computing the income for any taxation year of that person and is not deductible in computing the taxable income of that person.

"Eligible fitness expense" defined

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

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

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

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

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

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

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

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

(i) muscular strength,

(ii) muscular endurance,

(iii) flexibility,

(iv) balance.

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

Additional fitness tax credit for individual with disability

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

Fitness tax credit claimable by spouse or common-law partner

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

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

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

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

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

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

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

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.

4.6(10.10)  [Repealed] S.M. 2012, c. 1, s. 20.

Disability amount

4.6(11)     An individual who is entitled to deduct an amount under subsection 118.3(1) of the federal Act for the taxation year may claim

(a) $6,180.; plus

(b) if he or she is less than 18 years old at the end of the year, the amount, if any, by which $3,605. exceeds the amount determined by the following formula:

A − $2,112.

In this formula, A is the total of the amounts paid in the year for the care and supervision of the individual and included in computing any other individual's deduction under section 63, 64 or 118.2 of the federal Act.

Dependant disability amount

4.6(12)     An individual who is entitled to deduct an amount in respect of another person under subsection 118.3(2) of the federal Act for the taxation year may claim the amount determined by the following formula:

A − B/P

In this formula,

A

is the other person's disability amount for the year under subsection (11);

B

is the amount that would be the other person's tax payable under this Act for the year if the only amounts claimed by the other person under this section were the amounts claimable under subsections (3) to (10);

P

is the percentage that applies to the taxation year under clause (2)(a).

For this purpose, if the other person was not resident in Manitoba at the end of the taxation year, this formula must be applied as if he or she were.

Unused tuition and education amount

4.6(13)     An individual who is entitled to deduct an amount under subsection 118.61(2) of the federal Act may claim an amount equal to the lesser of

(a) the amount that would be the individual's tax payable under this Act for the taxation year if the only amounts claimed under this section were the amounts claimable under subsections (3) to (12) and (15.1); and

(b) the individual's unused tuition and education amount at the end of the preceding taxation year.

For this purpose, an individual's unused tuition and education amount at the end of a taxation year is the amount determined by the following formula:

A + (B − C/P) − (D + E)

In this formula,

A

is

(a) the individual's unused tuition and education amount at the end of the preceding taxation year, or

(b) if the individual was not resident in Manitoba at the end of that year, the individual's unused tuition and education tax credits at the end of that year determined under section 118.61 of the federal Act and divided by the percentage specified in paragraph 117(2)(a) of the federal Act (lowest federal marginal rate);

B

is the individual's tuition and education amount for the year determined under subsection (14);

C

is the lesser of

(a) B multiplied by the percentage determined for P, and

(b) the amount that would be the individual's tax payable under this Act for the year if the only amounts claimed under this section were the amounts claimable under subsections (3) to (12) and (15.1);

D

is the amount claimable by the individual under this subsection for the preceding taxation year;

E

is the tuition and education amount transferred for the year by the individual under subsection (14.1);

P

is the percentage that applies to the taxation year under clause (2)(a).

Tuition and education amount

4.6(14)     An individual who is entitled to deduct an amount under subsection 118.5(1) or 118.6(2) of the federal Act for the taxation year may claim the amount determined by the following formula:

(A + B)/P

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 amount that would be deductible by the individual for the year under subsection 118.6(2) of the federal Act if, in the description of B in that subsection,

(a) the dollar amount set out in clause (a) were $400., and

(b) the dollar amount set out in clause (b) were $120;

P

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

Transfer of tuition and education amount

4.6(14.1)   For the purpose of subsections (15) and (16), the tuition and education amount transferred by an individual to a person (the "transferee") to whom the individual transferred related tuition and education tax credits for the purpose of section 118.8 or 118.9 of the federal Act is the amount that the individual designates in writing for the year for the purpose of subsection (15) or (16), not exceeding the amount determined by the following formula:

A − B/P

In this formula,

A

is the lesser of $5,000. and the individual's tuition and education amount for the year under subsection (14);

B

is the amount that would be the individual's tax payable under this Act for the year if

(a) he or she were resident in Manitoba at the end of the taxation year, and

(b) the only amounts claimed by the individual for the year under this section were the amounts claimable under subsections (3) to (13) and (15.1);

P

is the percentage that applies to the taxation year under clause (2)(a).

But if the individual is resident in another province on the last day of the taxation year, the amount transferred cannot exceed the maximum tuition and education amount of the individual determined under subsection (14) that could be applied to reduce the tax payable by the transferee for the year under the income tax law of that province if he or she were resident in that province on the last day of the taxation year and his or her tax otherwise payable exceeded the amount of any credit arising from the transferred amount.

Tuition and education amounts transferred from child

4.6(15)     An individual who is entitled to deduct an amount under section 118.9 of the federal Act in respect of tuition and education tax credits transferred for the year from his or her child or grandchild may claim an amount equal to the tuition and education amount transferred for the year by the child or grandchild.

4.6(15.1) and (15.2)  [Repealed] S.M. 2007, c. 6, s. 26.

Amounts transferred from spouse or common-law partner

4.6(16)     An individual who is entitled to deduct an amount under section 118.8 of the federal Act for the taxation year may claim the amount determined by the following formula:

A + B − C

In this formula,

A

is the tuition and education amount, if any, transferred to the individual for the year by his or her spouse or common-law partner;

B

is the total of the spouse's or common-law partner's

(a) age amount for the year determined under subsection (4),

(b) pension income amount for the year determined under subsection (10), and

(c) disability amount for the year determined under subsection (11);

C

is the amount determined by the following formula:

(D − E)/P

In this formula,

D

is the amount that would be the spouse's or common-law partner's tax payable under this Act for the year if the only amounts claimed by him or her under this section were the amounts claimable under subsections (3), (9) and (13),

E

is the lesser of

(a) the spouse's or common-law partner's tuition and education amount for the year determined under subsection (14) multiplied by the percentage determined for P, and

(b) the amount that would be the spouse's or common-law partner's tax payable under this Act for the year if the only amounts claimed by him or her under this section were the amounts claimable under subsections (3) to (13),

P

is the percentage that applies to the taxation year under clause (2)(a).

Family tax benefit

4.6(16.1)   Subject to subsection (16.2), for a taxation year ending after 2007 an individual may claim the amount, if any, by which 9% of the individual's income for the year is exceeded by

(a) if the individual is a trust, $2,065.; or

(b) if the individual is not a trust, the total of $2,065. and the following amounts that apply:

(i) $2,065., if the individual has claimed an amount for the year under subsection (5) (claim re spouse or common-law partner) or under subsection (6) (eligible dependant amount),

(ii) $2,752. for each dependant in relation to whom the individual or the individual's spouse or common-law partner was, at any time in the year, an eligible individual (as defined in section 122.6 of the federal Act), other than a dependant in respect of whom an individual has claimed an amount for the year under subsection (6) (eligible dependant amount) or (7) (infirm dependant amount),

(iii) $2,752. for each dependant in respect of whom the individual has claimed an amount for the year under subsection (7) (infirm dependant amount),

(iv) $2,065., if the individual was at least 65 years old at the end of the year,

(v) $2,752., if the individual has claimed an amount for the year under subsection (11) (disability amount),

(vi) $2,752. for each individual in respect of whom the individual has claimed an amount for the year under subsection (12) (dependant disability amount),

(vii) $2,752., if the individual has claimed an amount for the year under subsection (16) in relation to a physical or mental impairment of the individual's spouse or common-law partner,

(viii) $2,065., if the individual claimed an amount for the year under subsection (16) in relation to an age credit deductible under subsection (4) by the individual's spouse or common-law partner.

Limitation

4.6(16.2)   In determining the amounts that may be included in computing the amount that may be claimed under subsection (16.1),

(a) if two individuals who are spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only the individual with the greater income for the year may include it;

(b) if two or more individuals who are not spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only one of them may include the amount and, if they cannot agree as to who will include it, only the individual with the greater income for the year may include it;

(c) if an individual becomes bankrupt in a calendar year, the total of the amounts that may be included under any provision of subsection (16.1) for the individual's taxation years ending in the calendar year shall not exceed the total of the amounts that would have been included under that provision for the calendar year if the individual had not become bankrupt; and

(d) the amount determined for C in the formula in subsection (16) shall be applied to reduce the amounts included in A and B in that formula in the same order in which those amounts must be deducted in computing the tax payable under this Act by the individual's spouse or common-law partner.

Medical expense amount

4.6(17)     An individual who is entitled to deduct an amount under subsection 118.2(1) of the federal Act for the taxation year may claim the amount determined by the following formula:

A/P

In this formula,

A

is the amount that would be deductible by the individual under that subsection if

(a) it were computed with respect to the same medical expenses with respect to which the individual deducted an amount under that subsection,

(b) the amount determined for C in the formula were the lesser of $1,728. and 3% of the individual's income for the year, and

(c) in determining the amount for D in the formula, the amount determined for F were the lesser of $1,728. and 3% of the dependant's income for the year;

P

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

Donations tax credit

4.6(18)     An individual's donations tax credit for a taxation year is the amount that would be deductible under subsection 118.1(3) of the federal Act for the year if, in applying the formula under that subsection,

(a) the percentage referred to in the description of A were the percentage that applies to the taxation year under clause (2)(a);

(b) the percentage referred to in the description of C were 17.4%; and

(c) the amounts determined for B and D were the same as the amounts determined for B and D, respectively, in applying the formula to determine the amount actually deducted.

Interest on student loan

4.6(19)     An individual who is entitled to deduct an amount under section 118.62 of the federal Act for the taxation year may claim the amount determined for B in the formula under that section for the year.

Limitations and interpretation

4.6(20)     For the purposes of subsection (2),

(a) no amount may be claimed under subsection (5) or (6) by an individual for a taxation year for more than one other person;

(b) no amount may be claimed under subsection (6) by an individual for a taxation year for a person in respect of whom another individual has claimed an amount under subsection (5), if throughout the year the person and that other individual are married to each other or in a common-law partnership and are not living separate and apart because of a breakdown of their marriage or common-law partnership;

(c) only one individual is entitled to claim an amount under subsection (6) in respect of the same person or the same domestic establishment and, if two or more individuals otherwise entitled to claim such an amount attempt to claim it, none of them may claim it;

(d) if an individual is entitled to claim an amount under subsection (8) in respect of a person, that person is deemed for the purpose of subsection (7) not to be a dependant of any individual;

(e) if more than one individual is entitled to claim an amount for a taxation year under subsection (7), (8), (10.1), (10.2), (10.4), (10.7) or (10.8) in respect of the same person,

(i) the total of the amounts that may be claimed by them under that subsection for the year shall not exceed the maximum that could be claimed for the person for the year by any one of the individuals if he or she were the only individual entitled to claim an amount for the year under that subsection for that person, and

(ii) if the individuals cannot agree as to what portion of the amount each can so deduct, the minister may fix the portions;

(f) subsection 118(5) of the federal Act applies, with necessary modifications, in determining whether an amount may be claimed under subsection (5), (6), (7) or (8);

(g) a person is a dependant of an individual for a taxation year for the purpose of subsection (6) if the person is at any time in the year dependent on the individual for support and is

(i) the child or grandchild of the individual or of the individual's spouse or common-law partner, or

(ii) resident in Canada at any time in the year and is the parent, grandparent, brother, sister, uncle, aunt, niece or nephew of the individual or of the individual's spouse or common-law partner;

(h) subsections 118(7) and (8) of the federal Act apply, with necessary modifications, in determining any amount that may be claimed under subsection (10);

(i) subsections 118.3(3) and (4) of the federal Act apply, with necessary modifications, in determining any amounts that may be claimed under subsections (11) and (12);

(j) section 118.4 of the federal Act applies, with necessary modifications, in determining any amounts that may be claimed under subsections (11), (12), (14) and (17);

(k) no amount may be claimed under any of subsections (3) to (8) or (10) by a trust;

(l) if an individual is resident in Canada for part of a calendar year and for another part of the calendar year is non-resident,

(i) the individual may claim an amount under subsections (9), (10), (10.1), (10.2), (10.4), (10.7), (10.8), (14) and (17) to (19) only to the extent it can reasonably be considered to be wholly applicable to the period or periods in the year throughout which the individual was resident in Canada, computed as though the period or periods were the whole taxation year,

(ii) the individual may claim only such part of the amounts otherwise claimable under subsections (3) to (8), (11) and (12), (15), (16) and (16.1) as can reasonably be considered to apply to the period or periods in the year throughout which the individual was resident in Canada, computed as the period or periods were the whole taxation year, and

(iii) the amounts that may be claimed under subsections (3) to (19) in respect of the period or periods in the year throughout which the individual was non-resident shall be computed as if that period or periods were the whole taxation year,

but the amount that may be claimed under each of those subsections for the year cannot be more than the amount that would have been claimable under that subsection if the individual had been resident in Canada throughout the year;

(m) the amounts that may be claimed under subsections (3) to (19) must be claimed in the following order and before claiming any credit under sections 4.7 to 4.9:

(i) subsections (3) to (8), in any order,

(ii) subsections (9) to (19), in the order of those subsections;

(n) if a separate return of income with respect to an individual is filed under subsection 70(2), 104(23) or 150(4) of the federal Act for a period ending in a calendar year and another return of income under this Act with respect to the individual is filed for a period ending in the same year, the total of the amounts claimed in those returns under subsections (9) to (15) and (17) to (19) cannot exceed the amounts that could have been claimed under those subsections for the year if that separate return had not been filed;

(o) an individual who at no time in the year is resident in Canada may claim only the following amounts under subsections (3) to (19):

(i) the amount claimable under subsections (9), (11), (13), (18) and (19), and

(ii) the amount that would be claimable under subsection (14) if that subsection were read without reference to "or 118.6(2)";

(p) clause (o) does not apply to an individual for a taxation year if all or substantially all of the individual's income for the year was included in computing his or her taxable income earned in Canada for the year for the purposes of Part I of the federal Act; and

(q) if an individual becomes bankrupt in a calendar year, for each taxation year ending in the year the individual may claim

(i) amounts under subsections (9), (10), (10.1), (10.2), (10.4), (10.7), (10.8), (14) and (17) to (19), only to the extent that they can reasonably be considered to be wholly applicable to the taxation year,

(ii) only such part of the amounts otherwise claimable under subsections (3) to (8), (11), (12), (15), (16) and (16.1) as can reasonably be considered to apply to the taxation year,

but the total of the amounts that may be claimed under each of those subsections for all of the individual's taxation years ending in the calendar year cannot be more than the amount that would have been claimable under that subsection if the individual had not become bankrupt.

S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 17; S.M. 2002, c. 19, s. 19; S.M. 2003, c. 4, s. 36; S.M. 2005, c. 40, s. 29; S.M. 2006, c. 24, s. 31; S.M. 2007, c. 6, s. 26; S.M. 2008, c. 3, s. 20; S.M. 2010, c. 29, s. 13; S.M. 2011, c. 41, s. 15; S.M. 2012, c. 1, s. 20.

Dividend tax credit

4.7(1)      The dividend tax credit for a taxation year of an individual who was resident in Manitoba at the end of the year is as follows:

(a) for a taxation year ending after 2001 and before 2006, 25% of the dividend gross-up amount included in computing the individual's income for the year;

(b) for the 2006 and subsequent taxation years, the total of

(i) the following percentage of the total amount included in the individual's income for the year in respect of a taxable dividend for which the federal dividend gross-up rate is 25%:

(A) 4.87% for the 2006 taxation year,

(B) 3.67% for the 2007 taxation year,

(C) 3.15% for the 2008 taxation year,

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

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

(i.1) 0.83% of the total amount included in the individual's income for the year in respect of a taxable dividend for which the federal dividend gross-up rate is 18%, and

(ii) 8% of the total of the amounts included in the individual's income for the year under paragraph 82(1)(a.1) (eligible dividends) and subparagraph 82(1)(b)(ii) (eligible dividends gross-up) of the federal Act.

NOTE:  For the 2010 and 2011 taxation years, the reference in subclause 4.7(1)(b)(ii) to "8% "was "11%".

Ordering

4.7(2)      An individual must claim the maximum dividend tax credit to which he or she is entitled under subsection (1) before claiming any amount under section 4.8 or 4.9.

S.M. 2000, c. 39, s. 29; S.M. 2003, c. 4, s. 37; S.M. 2006, c. 24, s. 32; S.M. 2007, c. 6, s. 27; S.M. 2009, c. 26, s. 17; S.M. 2010, c. 29, s. 14; S.M. 2012, c. 1, s. 21; S.M. 2013, c. 55, s. 16.

Overseas employment tax credit

4.8         The overseas employment tax credit for a taxation year of an individual who was resident in Manitoba at the end of the year is 50% of the amount deducted under section 122.3 of the federal Act in computing the individual's tax payable for the year under that Act.

S.M. 2000, c. 39, s. 29; S.M. 2003, c. 4, s. 38.

Minimum tax carry-over

4.9         An individual's minimum tax carry-over credit for a taxation year is an amount equal to 50% of the amount deducted under section 120.2 of the federal Act in computing the individual's tax payable for the year under that Act.

S.M. 2000, c. 39, s. 29.

Graduate's tuition fee income tax rebate

4.9.1(1)    For the 2007 and subsequent taxation years, an individual who graduated after 2006 and is resident in Manitoba at the end of the taxation year may claim, as a tuition fee tax credit for the taxation year, an amount not exceeding the least of the following amounts:

(a) $2,500.;

(b) the amount, if any, that would be determined by Rule 7 of subsection 4(1) if that rule were read without reference to clause (i);

(c) an amount equal to 10% of the individual's eligible tuition amount at the end of the taxation year;

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

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

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

(e) $25,000. minus the total of

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

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

Definitions

4.9.1(2)    The following definitions apply in this section.

"eligible tuition amount" of an individual at the end of a taxation year (the "particular year") means the total of all amounts each of which is a tuition fee

(a) that was paid for a course that ended when the individual graduated or before that time;

(b) that was eligible for a tuition credit for a taxation year ending after 2003 and not more than 19 years before the particular year; and

(c) in respect of which the individual first claimed an amount under this section within 10 years after his or her first graduation after completing the course. (« frais de scolarité admissibles »)

"graduate" means complete all of the requirements for a degree, diploma, certificate of completion or other proof of graduation for a program or course of studies in respect of which the tuition fees or any part of them were eligible for tuition credits. (« obtenir un diplôme »)

"tuition credit" means an amount deductible under subsection 118.5(1) of the federal Act in computing an individual's tax payable under that Act. (« crédit d'impôt pour frais de scolarité »)

Application to deceased graduate

4.9.1(3)    When applying subsection (1) to the last taxation year of a deceased individual, it shall be read without reference to clauses (a) and (c).

One claim per calendar year

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

S.M. 2007, c. 6, s. 28; S.M. 2009, c. 26, s. 18; S.M. 2010, c. 29, s. 15.

Tax Reduction

4.10(1)     [Repealed] S.M. 2006, c. 24, s. 33.

Family tax reduction — 2001 to 2007 taxation years

4.10(2)     An individual's tax reduction for a taxation year beginning after 2000 and ending before 2008 is the amount, if any, by which 1% of the individual's income for the year is exceeded by

(a) if the individual is a trust, $225.; or

(b) if the individual is not a trust, the total of $225. and the following amounts that apply:

(i) $225., if the individual has claimed an amount for the year under subsection 4.6(5) (claim re spouse or common-law partner) or under subsection 4.6(6) (equivalent-to-spouse amount),

(ii) $300. for each dependant in relation to whom the individual or the individual's spouse or common-law partner was, at any time in the year, an eligible individual (as defined in section 122.6 of the federal Act), other than a dependant in respect of whom an individual has claimed an amount for the year under subsection 4.6(6) (equivalent-to-spouse amount) or (7) (infirm dependant amounts),

(iii) $300. for each dependant in respect of whom the individual has claimed an amount for the year under subsection 4.6(7) (infirm dependant amounts),

(iv) $225., if the individual was at least 65 years old at the end of the year,

(v) $300., if the individual has claimed an amount for the year under subsection 4.6(11) (disability amount),

(vi) $300. for each individual in respect of whom the individual has claimed an amount for the year under subsection 4.6(12) (dependant disability amounts),

(vii) $300., if the individual has claimed an amount for the year under subsection 4.6(16) in relation to a physical or mental impairment of the individual's spouse or common-law partner, and

(viii) $225., if the individual claimed an amount for the year under subsection 4.6(16) in relation to an age credit deductible under subsection 4.6(4) by the individual's spouse or common-law partner.

Limitation

4.10(3)     In determining the amounts that may be included in computing a reduction under subsection (2),

(a) if two individuals who are spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only the individual with the greater income for the year may include the amount in respect of the dependant;

(b) if two or more individuals who are not spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only one of them may include the amount and, if they cannot agree as to who will include the amount, only the individual with the greater income for the year may include the amount;

(c) if an individual becomes bankrupt in a calendar year, the total of the amounts that may be included under any provision of subsection (2) for the individual's taxation years ending in the calendar year shall not exceed the total of the amounts that would have been included under that provision for the calendar year if the individual had not become bankrupt; and

(d) the amount determined for C in the formula in subsection 4.6(16) shall be applied to reduce the amounts included in A and B in that formula in the same order in which those amounts must be deducted in computing the tax payable under this Act by the individual's spouse or common-law partner.

4.10(4)     [Repealed] S.M. 2006, c. 24, s. 33.

S.M. 2000, c. 39, s. 29; S.M. 2003, c. 4, s. 39; S.M. 2006, c. 24, s. 33; S.M. 2007, c. 6, s. 29.

Political Contribution Credit

Political contribution credit — 2002 to 2004

4.11(1)     An individual's political contribution tax credit for a taxation year after 2001 and before 2005 is the lesser of $500. and the amount determined according to the following table:

Total contributions (T) Political Contribution Credit (PCC)
$200. or less PCC = .75 × T
more than $200. but not more than $550. PCC = $150. + (T − $200.)/2
more than $550. PCC = $325. + (T − $550.)/3

Political contribution credit — 2005 and subsequent taxation years

4.11(1.1)   An individual's political contribution tax credit for a taxation year ending after 2004 is the lesser of $650. and the amount determined according to the following table:

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

Determination of amount contributed

4.11(2)     An amount may be included for a taxation year in the total contributions referred to in subsection (1) or (1.1) only if

(a) the amount is contributed, otherwise than as a non-monetary contribution, in the year by the individual to a registered party or registered candidate; and

(b) payment of the amount is proven by filing with the treasurer a receipt containing prescribed information and signed by the financial officer of the registered party or the official agent of the registered candidate, as the case may be.

Interpretation

4.11(3)     For the purposes of this section, "contribution", "financial officer", "non-monetary contribution", "official agent", "registered candidate" and "registered party" have the same meaning as in The Election Financing Act.

S.M. 2000, c. 39, s. 29; S.M. 2002, c. 19, s. 20; S.M. 2005, c. 40, s. 30; S.M. 2006, c. 24, s. 34; S.M. 2012, c. 35, Sch. A, s. 119; S.M. 2013, c. 54, s. 45.

Foreign Tax Credit

Foreign tax credit

4.12(1)     If an individual who was resident in Manitoba on the last day of the taxation year paid non-business-income tax for the year to the government of a country other than Canada (the "other country") and is not subject to minimum tax under section 127.5 of the federal Act for the year, the individual's foreign tax credit in respect of the other country is the amount claimed by the individual, which shall not exceed the lesser of

(a) the amount, if any, by which

(i) the non-business-income tax paid by the individual for the year to the government of the other country,

exceeds

(ii) the amount deductible for the year as a foreign tax deduction under subsection 126(1) of the federal Act in respect of that non-business-income tax; and

(b) the amount determined by the following formula:

A × B/C

In this formula,

A

is the tax otherwise payable under this Act by the individual for the year;

B

is the amount, if any, by which the total of the individual's qualifying incomes exceeds the total of the individual's qualifying losses

(i) for the year, if the individual was resident in Canada throughout the year, or

(ii) for the part of the year throughout which the individual was resident in Canada, if the individual was not resident in Canada throughout the year,

from sources in the other country, determined as if

(iii) no business were carried on by the individual in the other country,

(iv) no amount were deducted under subsection 91(5) of the federal Act in computing the individual's income for the year, and

(v) the individual's income from employment for the year in the other country, if any, were reduced by the lesser of the amounts determined under paragraphs 122.3(1)(c) and (d) of the federal Act in respect of that employment;

C

is the amount, if any, by which

(i) the individual's Manitoba income for the year computed without reference to paragraph 20(1)(ww) of the federal Act, if the individual was resident in Canada throughout the year, or

(ii) the individual's Manitoba income for the year that is included in the amount determined under paragraph 114(a) of the federal Act in respect of the individual for the year, if the individual was not resident in Canada throughout the year,

exceeds

(iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b) of the federal Act, or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j) or section 112 of that Act, in computing the individual's taxable income for the year.

Interpretation

4.12(2)     For the purposes of this section,

(a) the government of a country other than Canada includes the government of a state, province or other political subdivision of a country other than Canada;

(b) any income that would be tax-exempt income if it were not subject to an income or profits tax by the government of a country other than Canada is deemed to be income from a separate source in that country; and

(c) "non-business-income tax", "qualifying incomes", "qualifying losses" and "tax-exempt income" have the same meaning as in subsection 126(7) of the federal Act.

S.M. 2000, c. 39, s. 29; S.M. 2004, c. 43, s. 45.

Mutual Fund Trusts

Mutual fund trust capital gains refund

4.13(1)     A mutual fund trust is entitled to receive, for a taxation year after 2000, a refund equal to the lesser of

(a) its Manitoba refundable capital gains tax on hand at the end of the year; and

(b) the amount determined by the following formula:

.087 × A × B/C

In this formula,

A

is the trust's capital gains redemptions under subsection 132(4) of the federal Act for the year,

B

is the trust's Manitoba income for the year or, if it has no income for the year, the amount that would be its Manitoba income for the year if its income for the year were $1,000.,

C

is the trust's income for the year or, if it has no income for the year, $1,000.

Manitoba refundable capital gains tax on hand

4.13(2)     For the purpose of subsection (1), the trust's Manitoba refundable capital gains tax on hand at the end of a taxation year is the amount, if any, by which the total of

(a) the trust's Manitoba refundable tax on hand at the end of 2000, as determined by the minister; and

(b) the total of all amounts, each of which is an amount in respect of the year or a preceding taxation year ending after 2000 throughout which the trust was a mutual fund trust (referred to in this clause as the "particular year"), that is equal to the lesser of

(i) the tax otherwise payable under this Act for the particular year, and

(ii) the amount determined by the formula

.174 × A × B/C

where

A

is the lesser of the trust's income for the particular year and its taxed capital gains under subsection 130(3) of the federal Act for the particular year,

B

is the trust's Manitoba income for the particular year or, if it has no income for that year, the amount that would be its Manitoba income for that year if its income for that year were $1,000.,

C

is the trust's income for the particular year or, if it has no income for that year, $1,000.;

exceeds the total of the trust's refunds under this section for preceding taxation years ending after 2000.

Applying refund to other liability

4.13(3)     Instead of refunding an amount to a trust under subsection (1), the treasurer may, where the trust is liable or about to become liable to make any payment under this Act, apply the amount to that other liability and notify the trust of that action.

S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 18; S.M. 2002, c. 19, s. 21; S.M. 2008, c. 3, s. 21.

General

4.14        [Repealed]

S.M. 2000, c. 39, s. 29; S.M. 2007, c. 6, s. 30.

Bankruptcy

4.15        Subsection 128(2) of the federal Act applies for the purposes of this Act.

S.M. 2000, c. 39, s. 29.

4.16(1)     [Repealed] S.M. 2007, c. 6, s. 30.

Application of overpayment

4.16(2)     If under Rule 11 of section 4 an amount is deemed to be an overpayment on account of an individual's tax payable for a taxation year,

(a) the overpayment is deemed to have arisen on the later of the filing due date for the year and the day the individual's return of income for the year is filed;

(b) all or any part of the overpayment may be applied to reduce the federal tax payable by the individual for the year if a collection agreement so provides; and

(c) the remainder of the overpayment, if any, is refundable to the individual out of the Consolidated Fund.

S.M. 2000, c. 39, s. 29; S.M. 2007, c. 6, s. 30.

Refundable Tax Credits

Refundable tax credits

5(1)        Subject to subsections (2) and (4), an individual who resided in Manitoba on the last day of the taxation year may claim the following refundable tax credits in computing his or her tax payable under section 4 for the year:

(a) the amount, if any, by which

(i) the total of the individual's education property tax credit, if any, determined under section 5.4 and the individual's school tax credit, if any, determined under section 5.5

exceeds

(ii) the amount of a shelter allowance benefit (as described in the regulations under The Housing and Renewal Corporation Act) received in the year by the individual or by another individual while he or she was the individual's cohabiting spouse or common-law partner as defined in section 5.3; and

(b) the individual's personal tax credit, if any, determined under section 5.7;

(c) and (d) [repealed] S.M. 2004, c. 43, s. 46;

(e) the individual's primary caregiver tax credit, if any, determined under section 5.11;

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

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

Limited credits for recipients of social assistance

5(2)        Except as permitted by the regulations, an individual is not eligible for a refundable tax credit under clause (1)(a) or (b) for a taxation year if

(a) he or she received in the year a social assistance payment referred to in paragraph 56(1)(u) of the federal Act; or

(b) at the end of the year, he or she is the cohabiting spouse or common-law partner, as defined in section 5.3, of another individual who received such a payment in the year.

Regulations

5(3)        The Lieutenant Governor in Council may make regulations for the purpose of subsection (2).

No credit if return not filed

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

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

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

Exception

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

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

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

S.M. 1988-89, c. 19, s. 19; S.M. 1989-90, c. 15, s. 16; S.M. 1991-92, c. 31, s. 16; S.M. 1993, c. 46, s. 38; S.M. 1994, c. 23, s. 13; S.M. 1996, c. 66, s. 8; S.M. 1997, c. 49, s. 16; S.M. 1998, c. 30, s. 27; S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 19; S.M. 2004, c. 43, s. 46; S.M. 2007, c. 6, s. 31; S.M. 2008, c. 3, s. 22; S.M. 2010, c. 29, s. 16.

Refundable tax credits for year of death

5.1         When an individual who is resident in Manitoba dies,

(a) if immediately before death the individual was the cohabiting spouse or common-law partner, as defined in section 5.3, of another individual who is resident in Manitoba at the end of the calendar year in which the death occurred, the other individual may claim the refundable tax credits that the deceased individual would have been entitled to claim under section 5 for the year if that other individual had been resident in Manitoba and the cohabiting spouse or common-law partner of the deceased individual at the end of the year; and

(b) in any other case, the refundable tax credits for the individual's last taxation year shall be determined as if he or she had been resident in Manitoba at the end of the year.

S.M. 2000, c. 39, s. 29; S.M. 2004, c. 43, s. 47.

More than one return in the same calendar year

5.2(1)      If more than one return of income is filed under the federal Act, as it applies for the purposes of this Act, by or in respect of an individual for two or more periods ending in the same calendar year, the refundable tax credits that may be claimed for the year under clauses 5(1)(a) to (d) by the individual or the individual's spouse or common-law partner are limited to the amounts that he or she could have claimed under those clauses if the individual had filed a single return of income that took into account the individual's entire income for all periods for which such returns were filed.

No credit for separate return under subsection 70(2)

5.2(2)      Section 5 does not apply to a return filed under subsection 70(2) of the federal Act as it applies for the purposes of this Act.

S.M. 2000, c. 39, s. 29.

Education Property and School Tax Credits

Definitions

5.3(1)      In this section and sections 5.4 to 5.7,

"cohabiting spouse or common-law partner" of an individual at any time means the person who at that time is the individual's spouse or common-law partner and who at that time is not living separate and apart from the individual, and, for this purpose, a person shall not be considered to be living separate and apart from an individual unless

(a) they were living separate and apart at that time, because of a breakdown of their marriage or common-law partnership, for a period of at least 90 days that includes that time, or

(b) they were occupying and inhabiting separate residences at that time because of medical necessity; (« conjoint visé ou conjoint de fait »)

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

"dwelling unit cost" of a principal residence of an individual for a taxation year or part of a year means

(a) the amount of the municipal taxes, if any, paid in respect of the principal residence for the year or, if it wasn't the individual's principal residence for the whole year, for the portion of the year that it was the individual's principal residence and was owned by the individual or the individual's spouse or common-law partner,

(b) if the principal residence is a mobile home, the municipal licence fee, if any, paid by the individual or the individual's spouse or common-law partner in respect of the principal residence for the year or, if it wasn't the individual's principal residence for the whole year, for the portion of the year that it was the individual's principal residence,

(c) if no municipal taxes or licence fees and no rent is paid by the individual or the individual's spouse or common-law partner in respect of the principal residence, the total of the government levies or service fees, if any, paid by the individual or the individual's spouse or common-law partner in respect of the principal residence for the year or, if it wasn't the individual's principal residence for the whole year, for the portion of the year that it was the individual's principal residence, and, for this purpose, "government levies or service fees" means levies or fees imposed in respect of services of the type normally provided by a municipal council that are provided by the government, a local government district or a person who provides such services in the area in which the principal residence is located, and

(d) an amount equal to 20% of the rental or other payments (other than taxes, fees or levies referred to in clauses (a) to (c) and payments for meals or board), if any, paid by the individual or the individual's spouse or common-law partner in respect of the principal residence for the year or, if it wasn't the individual's principal residence for the whole year, the portion of the year that it was the individual's principal residence, and, for this purpose, if the principal residence is a room in a personal care home, the rental or other payments are deemed not to exceed 1/2 of the portion of the per diem charges paid to the personal care home by or for the individual that has not been claimed as a medical expense under subsection 4.6(17) by any taxpayer; (« frais de logement »)

"family income" of an individual for a taxation year means

(a) the individual's income for the year plus, if the individual has a cohabiting spouse or common-law partner at the end of the year, the spouse's or common-law partner's income for the year, or

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

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

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

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

"municipal taxes" means

(a) taxes for municipal purposes,

(b) school taxes, 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 »)

"municipal tax reduction", in relation to a property, means the amount by which municipal taxes imposed in respect of the property are, or are required to be, reduced under section 5.6; (« réduction de taxes municipales »)

"occupancy cost" of an individual for a taxation year means the amount, if any, by which

(a) the total of all amounts each of which is the dwelling unit cost of a principal residence of the individual for the year or a part of the year,

exceeds

(b) $250.; (« coût d'habitation »)

"principal residence" of an individual for a taxation year or part of a year means a residential dwelling unit located in Manitoba that is

(a) owned or rented by the individual or the individual's cohabiting spouse or common-law partner throughout the year or that part of the year,

(b) ordinarily occupied or inhabited by the individual or the individual's cohabiting spouse or common-law partner as a residence throughout the year or that part of the year,

(c) designated in accordance with subsections (2) to (4), for the year or that part of the year, as the principal residence of the individual and, if the individual has a cohabiting spouse or common-law partner, of that spouse or common-law partner, and

(d) not designated by any other individual (other than the individual's cohabiting spouse or common-law partner) as a principal residence for the year or that part of the year; (« résidence principale »)

"school tax" means the tax imposed for school purposes under section 188 of The Public Schools Act. (« taxe scolaire »)

How to designate principal residence

5.3(2)      A residential dwelling unit may be designated as the principal residence of an individual and his or her cohabiting spouse or common-law partner, if there is one,

(a) on the form on which the education property tax credit is claimed by the individual or the spouse or common-law partner under section 5;

(b) on an application for a municipal tax reduction in a form authorized by the Minister of Finance for Manitoba; or

(c) on an application under The Property Tax and Insulation Assistance Act for a seniors' school tax rebate.

Only primary residence may be designated

5.3(3)      A residential dwelling unit may be designated as an individual's principal residence for a period only if, throughout that period, it is the primary residence of the individual or the individual's cohabiting spouse or common-law partner as evidenced by such indicators as

(a) the amount of time spent by the individual, spouse or common-law partner at the unit in relation to the amount of time spent by him or her at any other residence;

(b) the address of the individual, spouse or common-law partner shown on his or her income tax return, driver's licence, motor vehicle registration, registration cards for health and health insurance, bank and credit card statements and statements of account for utilities; and

(c) any other prescribed indicators.

Only one principal residence at a time

5.3(4)      A residential dwelling unit may not be designated as the principal residence of an individual for any period during which any other residential dwelling unit is the principal residence of the individual.

Extended meaning of "principal residence"

5.3(5)      A principal residence includes contiguous land that contributes to its use and enjoyment as a residence, but does not include

(a) any land or premises that are exempt from municipal taxes and are not the subject of a grant in lieu of municipal taxes; or

(b) any land not assessed as residential property.

Communal and other arrangements

5.3(6)      For the purposes of this section and section 5.4, municipal taxes paid in respect of property of a communal living arrangement, cooperative housing scheme, Hutterite colony or incorporated farm that includes an individual's principal residence are to be apportioned on the same basis as those taxes are apportioned under that arrangement or by that organization or its governing body among its members, participants, partners or shareholders, as the case may be.

Principal residence and farm property

5.3(7)      For the purpose of determining the education property tax credit and the municipal tax reduction for a principal residence for which the municipal taxes are not shown separately from the municipal taxes on other farm property on the tax statement, the municipal taxes payable in respect of the principal residence are to be determined by the following formula:

T = A × B

In this formula,

T

is the municipal taxes payable in respect of the principal residence;

A

is the portioned value of the principal residence for the purposes of The Municipal Assessment Act;

B

is the total, expressed as a percentage, of the tax rates that apply in determining the municipal taxes payable in respect of the principal residence.

S.M. 2000, c. 39, s. 29; S.M. 2002, c. 19, s. 22; S.M. 2003, c. 4, s. 40; S.M. 2006, c. 24, s. 35; S.M. 2007, c. 6, s. 33; S.M. 2009, c. 26, s. 19; S.M. 2012, c. 1, s. 22; S.M. 2014, c. 35, s. 35.

Eligibility for education property tax credit

5.4(1)      Subject to subsection (2), an individual who resides in Manitoba on the last day of a taxation year is eligible for an education property tax credit for the year unless

(a) the individual is less than 16 years old at the end of the year;

(b) the individual resides in the principal residence of, and is claimed as a dependant of, another individual for the taxation year;

(c) the individual is exempt from tax under paragraph 149(1)(a) or (b) of the federal Act; or

(d) the individual is not a Canadian citizen and is on active military service as a member of the armed forces of a country other than Canada, or is a member of the family of such an individual.

Only one spouse or partner eligible for education property tax credit

5.4(2)      An individual is not eligible for an education property tax credit

(a) for a taxation year if he or she was, throughout the year, the cohabiting spouse or common-law partner of another individual who has claimed an education property tax credit in respect of all or any part of the year; or

(b) in respect of any period throughout which he or she was the cohabiting spouse or common-law partner of another individual who has claimed an education property tax credit in respect of the period.

Only one EPTC per residence

5.4(2.1)    An individual is not eligible for an education property tax credit for a residential dwelling unit for any period if

(a) he or she is not the assessed owner of the property that includes the dwelling unit; and

(b) either

(i) a municipal tax reduction was granted in respect of the property that includes the dwelling unit, or

(ii) another individual claims an education property tax credit for that dwelling unit for that period.

Education property tax credit

5.4(3)      The education property tax credit for a taxation year after 2010 at the end of which the individual is less than 65 years old is the amount, if any, by which

(a) the lesser of $700. and the individual's occupancy cost for the year;

exceeds

(b) 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.

Education property tax credit for seniors

5.4(4)      Subject to subsection (5), the education property tax credit for a taxation year after 2010 at the end of which the individual is at least 65 years old is the amount, if any, by which

(a) the lesser of

(i) the amount by which $1,100. exceeds the lesser of $400. and 1% of the individual's family income for the year, and

(ii) the individual's occupancy cost for the year;

exceeds

(b) the total of

(i) the municipal tax reduction given for the year in respect of the individual's principal residence for that year or, if a residential dwelling unit was the individual's principal residence for less than the full year, the total of all amounts each of which is the municipal tax reduction given in respect of a principal residence of the individual for a part of the year, and

(ii) the seniors' school tax rebate, if any, received for that year by the individual or the individual's cohabiting spouse or common-law partner.

Transitional adjustments for 2011 and 2012

5.4(5)      When applying subsection (4) to the 2011 and 2012 taxation years, the references in subclause (a)(i) to "$1,100." and "$400." are to be read as follows:

(a) for the 2011 taxation year, as "$950." and "$250.", respectively;

(b) for the 2012 taxation year, as "$1,025." and "$325.", respectively.

S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 21; S.M. 2002, c. 19, s. 23; S.M. 2003, c. 4, s. 41; S.M. 2007, c. 6, s. 34; S.M. 2008, c. 3, s. 23; S.M. 2009, c. 26, s. 20; S.M. 2011, c. 41, s. 16; S.M. 2012, c. 1, s. 23; S.M. 2014, c. 35, s. 36.

Eligibility for school tax credit

5.5(1)      An individual is eligible for a school tax credit for a taxation year only if

(a) the individual is at least 55 years old at the end of the year;

(b) the individual or the individual's cohabiting spouse or common-law partner is the owner of the individual's principal residence or of a life interest in the principal residence, or has entered into an agreement to purchase the principal residence;

(c) the individual or the individual's cohabiting spouse or common-law partner has paid school taxes in respect of the principal residence for the year; and

(d) the individual's cohabiting spouse or common-law partner has not claimed a school tax credit for the year.

School tax credit

5.5(2)      An individual's school tax credit for a taxation year is the least of the following amounts:

(a) the amount determined by the following formula:

$175. − .02A

In this formula, A is the amount, if any, by which the individual's family income for the year exceeds $15,000.;

(b) the amount, if any, by which the school taxes for the year in respect of the individual's principal residence exceed the total of $160 and the seniors' school tax rebate, if any, received for that year by the individual or the individual's cohabiting spouse or common-law partner;

(c) the amount, if any, by which the individual's occupancy cost for the year exceeds the total of the individual's education property tax credit for the year and the seniors' school tax rebate, if any, received for that year by the individual or the individual's cohabiting spouse or common-law partner.

Use of table

5.5(3)      An individual whose family income for a taxation year exceeds $15,000. may use a table approved by the treasurer for determining the amount otherwise determined by the formula in clause (2)(a).

S.M. 2000, c. 39, s. 29; S.M. 2012, c. 1, s. 24; S.M. 2014, c. 35, s. 37.

Municipal tax reduction

5.6(1)      Subject to subsection (1.1), the municipal taxes imposed for a calendar year in respect of a principal residence of an individual who is, or whose spouse or common-law partner is, its assessed owner shall be reduced by the lesser of

(a) the amount prescribed by regulation for that year or, if no amount is prescribed for the year, $700; and

(b) the amount by which those taxes exceed $250.

No municipal tax reduction for property with multiple residences

5.6(1.1)    A property that includes more than one residential dwelling unit, as determined by the Minister of Finance for Manitoba, is not eligible for a municipal tax reduction.

Assessed owner may apply for municipal tax reduction

5.6(1.2)    The assessed owner of a property that includes only one residential dwelling unit may apply to the Minister of Finance for Manitoba for the municipal tax reduction to be applied to the property for the year if

(a) the property's municipal tax statement for that year does not include the municipal tax reduction; and

(b) the dwelling unit is at the time of the application, and was at the beginning of the year, the principal residence of the assessed owner or of his or her spouse or common-law partner.

The application must be made before November 16 of the year in question and must be made in a form authorized by the Minister of Finance for Manitoba.

Amount paid to municipality or local government district

5.6(1.3)    If the Minister of Finance for Manitoba is satisfied that the applicant is entitled to the municipal tax reduction, the minister must pay the amount of the reduction to the municipality or local government district entitled to collect taxes on the property, who must then credit that amount to the payment of those taxes.

Reimbursement of municipality or local government district

5.6(2)      The Minister of Finance for Manitoba shall ensure that each municipality and local government district is reimbursed out of the Consolidated Fund for the municipal tax reductions made under this section.

Payment to school board

5.6(2.1)    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 paid directly to a school board for which it levies school taxes.  The amount so paid reduces the amount otherwise payable by the municipality or local government district to the school board.

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.

Repayment of municipal tax reduction

5.6(3)      If a municipal tax reduction has been granted in respect of a property for a period during which

(a) the property was the principal residence of neither its assessed owner nor the assessed owner's spouse or common-law partner; or

(b) the property contained more than one residential unit;

the person who was the assessed owner during that period must pay to the Minister of Finance for Manitoba the portion of the reduction that relates to that period determined by prorating the reduction on a daily basis.

Repayment due date

5.6(3.1)    The amount payable under subsection (3) must be paid within 45 days after the due date for the municipal taxes payable for the year. But if, after that due date, the property ceases

(a) to be the principal residence of that person or the person's spouse or common-law partner; or

(b) to be eligible for the municipal tax reduction;

the amount must be paid within 90 days after that occurs.

Interest payable

5.6(4)      If a person fails to pay to the Minister of Finance for Manitoba the amount payable under subsection (3) within the period within which it must be paid under subsection (3.1), interest is payable by the person on the unpaid amount at the prescribed rate from the beginning of that period.

Demand by minister

5.6(5)      The Minister of Finance for Manitoba may, by registered letter or by a letter served personally, demand that an amount payable under subsection (3) and any interest payable under subsection (4) be paid within 30 days after the date of the demand.

Penalty

5.6(6)      A person who fails to comply with a demand made under subsection (5) may be assessed a penalty equal to the lesser of

(a) $500.; and

(b) $5. multiplied by the number of days that all or any part of the amount demanded remains unpaid after the end of the 30-day period.

Regulations re municipal tax reduction

5.6(7)      The Lieutenant Governor in Council may make regulations respecting municipal tax reductions, including regulations

(a) extending or limiting the application of the municipal tax reduction to classes of residential properties or to residential properties based on ownership;

(b) prescribing the manner in which a municipality, a local government district or the minister responsible for the administration of The Northern Affairs Act must grant a municipal tax reduction;

(c) and (d) [repealed] S.M. 2014, c. 35, s. 38;

(e) respecting changes in principal residences during a taxation year;

(f) and (g) [repealed] S.M. 2014, c. 35, s. 38.

S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 22; S.M. 2004, c. 43, s. 48; S.M. 2007, c. 6, s. 35; S.M. 2009, c. 26, s. 21; S.M. 2012, c. 1, s. 25; S.M. 2014, c. 35, s. 38.

Personal Tax Credit

Eligibility for personal tax credit

5.7(1)      An individual who resides in Manitoba on the last day of a taxation year is eligible for a personal tax credit for the year unless

(a) the individual is an individual described in clause 5.4(1)(a), (c) or (d);

(b) another taxpayer claims an amount for the year in respect of the individual under subsection 4.6(5), (6), (7), (11), (12) or (16) or subclause 4.10(2)(b)(ii);

(c) the individual is an inmate of a correctional facility or penitentiary on the last day of the year and has been an inmate of one or more such institutions for a total of at least six months during the year; or

(d) the individual is less than 19 years old at the end of the year and is not a parent, does not have a spouse or common-law partner and is not eligible for an education property tax credit under section 5.4 for the year.

Personal tax credit

5.7(2)      Subject to subsections (2.1) and (5), an individual's personal tax credit for a taxation year is the amount determined by the following formula:

A − B

In this formula,

A

is the total of the following amounts that apply:

(a) $190.;

(b) $190., if the individual has claimed an amount for the year

(i) in respect of a spouse or common-law partner under subsection 4.6(5), or

(ii) in respect of a dependant under subsection 4.6(6);

(c) $60. for each dependant in respect of whom the individual has claimed an amount for the year under subsection 4.6(7);

(d) $25. for each qualified dependant, other than a dependant in relation to whom the individual has claimed an amount under clause (b) or (c), in relation to whom the individual is an eligible individual (as defined in section 122.6 of the federal Act) at any time in the year;

(e) $110. in each of the following cases:

(i) the individual is at least 65 years old at the end of the year,

(ii) the individual has claimed an amount for the year under subsection 4.6(11),

(iii) the individual has claimed an amount for the year under subsection 4.6(12) in relation to a dependant's impairment,

(iv) the individual has claimed an amount for the year under subsection 4.6(16) in relation to a physical or mental impairment of the individual's spouse or common-law partner,

(v) the individual has claimed an amount for the year under subsection 4.6(16) in relation to an age credit deductible under subsection 4.6(4) by the individual's spouse or common-law partner; and

B

is 1% of the individual's family income for the year.

Adjustments to personal credit

5.7(2.1)    For a taxation year ending after 2008, the amounts in the description of A in the formula in subsection (2) are to be read as follows:

(a) in clauses (a) and (b), "$190." is to be read as "$195.";

(b) in clause (c), "$60." is to be read as "$62.";

(c) in clause (d), "$25." is to be read as "$26.";

(d) in clause (e), "$110." is to be read as "$113.".

Limitation

5.7(3)      In determining the amounts that may be included in the total for A in the formula under subsection (2),

(a) if two or more individuals could, but for subsection 4.6(16.2), claim an amount for the year under subsection 4.6(16.1) in respect of the same dependant, only the individual who claims an amount under subsection 4.6(16.1) in respect of the dependant may include an amount in respect of the dependant; and

(b) the amount determined for C in the formula in subsection 4.6(16) shall be applied to reduce the amounts included in A and B in that formula in the same order in which those amounts must be deducted in computing the tax payable under this Act by the individual's spouse or common-law partner.

Further limitation re certain dependants

5.7(4)      No amount may be included in subsection (2) for a taxation year in respect of a dependant who

(a) has received, or whose cohabiting spouse or common-law partner has received, during the year a social assistance payment referred to in paragraph 56(1)(u) of the federal Act; or

(b) is an inmate referred to in clause (1)(c).

Alternate personal tax credit claimable by only one spouse or partner

5.7(5)      If on the last day of a taxation year an individual is married to, or in a common-law partnership with, another individual who, though entitled to do so, claims neither an education property tax credit nor a personal tax credit for the year under subsection 5(1), the individual's personal tax credit for the year is the amount determined by the following formula:

B + C − D

In this formula,

B

is the amount that would be determined for the individual for A in the formula under subsection (2) if the description of A were read without reference to subclauses (b)(i) and (e)(iv) and (v);

C

is the amount that would be determined for the individual's spouse or common-law partner for A in the formula under subsection (2) if the description of A were read without reference to subclauses (b)(i) and (e)(iv) and (v); and

D

is 1% of the individual's family income for the year.

S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 23; S.M. 2002, c. 19, s. 24; S.M. 2003, c. 4, s. 42; S.M. 2006, c. 24, s. 37; S.M. 2008, c. 3, s. 24; S.M. 2010, c. 29, s. 17.

5.8         [Repealed]

S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 24; S.M. 2002, c. 19, s. 25.

5.9 and 5.10  [Repealed]

S.M. 2000, c. 39, s. 29; S.M. 2002, c. 19, s. 25.

Primary Caregiver Tax Credit

Definitions

5.11(1)     The following definitions apply in this section.

"assessing authority", in relation to an individual, means the regional health authority that administers the Manitoba Home Care Program in the area in which the individual resides, and includes the Department of Family Services and Labour if the individual is a recipient of services under any of the following programs of that department:

(a) Children's disABILITY Services, formerly called Children's Special Services;

(b) Community Living Disability Services, formerly called Supported Living. (« office chargé des évaluations »)

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

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

(b) ends when

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

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

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

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

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

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

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

"Manitoba Home Care Program" means the community-based program that provides support to individuals who require health services or assistance with daily living activities and is administered by regional heath authorities established or continued under The Regional Health Authorities Act. (« Programme de soins à domicile du Manitoba »)

"primary caregiver", in relation to a qualified care recipient for a taxation year, means an individual who

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

(b) without reward or compensation of any kind other than the tax credit under this section, personally provides care or supervision to the recipient;

(c) is not the spouse or common-law partner of a person who receives compensation for providing care or supervision to the recipient; and

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

"qualified care recipient", in relation to a taxation year, means an individual who

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

(a.1) is an insured person as defined in The Health Services Insurance Act;

(a.2) ordinarily resides in a private home or apartment in Manitoba; and

(b) under the most recent assessment

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

(ii) made by a health care provider and approved by an assessing authority in relation to the individual,

is assessed as requiring a level of care equivalent to level 2, 3 or 4 care under the Manitoba Home Care program. (« bénéficiaire de soins admissible »)

Primary caregiver tax credit

5.11(2)     An individual's primary caregiver tax credit for a taxation year after 2010 is the total of all amounts each of which is the amount determined by the following formula in relation to a qualified care recipient:

tax credit = $1,275. × A/365

In this formula, A is the total number of days in the taxation year each of which

(a) is within the individual's creditable period in relation to the recipient;

(b) does not fall within an interruption period in relation to the recipient;

(c) is not included in determining the caregiver's tax credit for the taxation year in respect of more than two other qualified care recipients; and

(d) is not included in determining another individual's primary caregiver tax credit for the taxation year in respect of the recipient.

NOTE:  For the 2010 taxation year, "$1,275." in the formula was "$1,020.".

Regulations

5.11(3)     The Lieutenant Governor in Council may make regulations

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

(b) for the purpose of the definition "interruption period" in subsection (1),

(i) prescribing circumstances in which a period is not an interruption period, or in which days are not to be considered part of an interruption period, and

(ii) prescribing other periods as interruption periods;

(c) for the purpose of verifying the validity of a claim for a tax credit under this section,

(i) respecting the maintenance of books and records, and the provision of information or access to information, including personal information and personal health information, by primary caregivers, and

(ii) respecting the maintenance of books and records, and the provision of information or access to information, including personal information and personal health information, by an assessing authority;

(d) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out effectively the intent and purpose of this section.

S.M. 2008, c. 3, s. 25; S.M. 2009, c. 26, s. 22; S.M. 2010, c. 33, s. 80; S.M. 2011, c. 41, s. 17; S.M. 2012, c. 40, s. 61; S.M. 2013, c. 55, s. 17.

Advance Tuition Fee Income Tax Rebate

Advance tuition fee income tax rebate

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

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

(b) the least of the following amounts:

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

(ii) 5% of the amount that

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

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

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

S.M. 2010, c. 29, s. 18.

Fertility Treatment Tax Credit

Fertility treatment tax credit

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

(a) $8,000.;

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

(i) infertility treatment services (other than a procedure to reverse an elective sterilization procedure) provided to the individual or to the individual's spouse or common-law partner in Manitoba by a physician or by a clinic that provides those services in Manitoba, or

(ii) medication prescribed by a physician in Manitoba in relation to infertility treatment services described in subclause (i), whether those services are provide inside or outside Manitoba;

(c) nil, if a claim for a credit under this section for the taxation year is made by the individual's spouse or common-law partner.

S.M. 2010, c. 29, s. 18; S.M. 2011, c. 41, s. 18.

6           [Repealed]

S.M. 2000, c. 39, s. 29.

CORPORATION INCOME TAX

Tax payable by corporation

7(1)        Subject to subsection (2), the tax payable under section 3 by a corporation for a taxation year is the total of all amounts, each of which is the amount determined by the following formula for a period in subsection (3) any part of which falls within the taxation year:

tax payable = T × R × Dp/Dy

In this formula,

T

is corporation's taxable income earned in Manitoba for the taxation year;

R

is the applicable tax rate for the period as set out in subsection (3);

Dp

is the number of days in the taxation year that fall within the period; and

Dy

is the number of days in the taxation year.

Small business deduction

7(2)        If the corporation claims a small business deduction for the taxation year under section 125 of the federal Act, there may be deducted from its tax otherwise payable under this Act an amount equal to the total of all amounts each of which is the small business deduction determined by the following formula for a period referred to in subsection (1):

D = L × R × (Dp/Dy) × (Tm/Tc)

In this formula,

D

is the small business deduction for the period;

L

is the least of

(i) the amount that would be determined for the taxation year under paragraph 125(1)(a) of the federal Act if the dollar amounts specified in clauses (i) and (ii) of the description of M in the definition "specified partnership income" in subsection 125(7) of that Act were the M(i) and M(ii) amounts specified for the period in subsection (3.1),

(ii) the amount determined under paragraph 125(1)(b) of the federal Act for the taxation year, and

(iii) the proportion of the business limit for the period specified in subsection (3.1) that

(A) the corporation's business limit for the year under section 125 of the federal Act,

is of

(B) the amount that would be its business limit under that section if it were not associated in the year with any other corporation;

R

is the small business deduction rate for the period as set out in subsection (3);

Dp

is the number of days in the taxation year that fall within the period;

Dy

is the number of days in the taxation year;

Tm

is the corporation's taxable income earned in Manitoba for the taxation year; and

Tc

is the corporation's taxable income earned in Canada for the taxation year.

Limitation

7(2.1)      For the purpose of subsection (2), the product of L × (Tm/Tc) cannot exceed the corporation's taxable income earned in Manitoba for the taxation year.

Tax and small business deduction rates

7(3)        For the purposes of subsections (1) and (2), the tax and small business deduction rates are as follows:

Period Tax Rate SBD Rate
calendar year after 1988 and before 1994 17% 7%
calendar year 1994 17% 7.5%
Jan.1, 1995 to June 30, 1999 17% 8%
July 1, 1999 to Dec. 31, 1999 17% 9%
calendar year 2000 17% 10%
calendar year 2001 17% 11%
calendar year 2002 16.5% 11.5%
calendar year 2003 16% 11%
calendar year 2004 15.5% 10.5%
calendar year 2005 15% 10%
calendar year 2006 14.5% 10%
calendar year 2007 14% 11%
Jan. 1, 2008 to June 30, 2008 14% 12%
July 1, 2008 to Dec. 31, 2008 13% 11%
Jan. 1, 2009 to June 30, 2009 13% 12%
July 1, 2009 to Nov. 30, 2010 12% 11%
after Nov. 30, 2010 12% 12%

Business limit and specified amounts

7(3.1)      For the purpose of subsection (2), the business limits and the M(i) and M(ii) amounts are as follows:

Period Business limit and M(I) amount M(ii) amount
period before 2002 $200,000. $548.
calendar year 2002 $300,000. $822.
calendar year 2003 $320,000. $877.
calendar year 2004 $360,000. $986.
calendar year after 2004 and before 2014 $400,000. $1,096.
calendar year after 2013 $425,000. $1,165.

Small business deduction for credit union

7(4)        In applying subsection (2) to a credit union, if the lesser of

(a) the credit union's taxable income for the year; and

(b) the amount, if any by which 4/3 of its maximum cumulative reserve, as defined in subsection 137(6) of the federal Act, at the end of the year exceeds its preferred-rate amount at the end of the immediately preceding year;

exceeds L in the formula in subsection (2), the excess amount shall be added to L. For the purpose of clause (b), the credit union's preferred-rate amount is the preferred-rate amount that would be determined under subsection 137(4.3) of the federal Act if the amount deductible under section 125 of that Act were the amount deductible under subsection (2).

Tax rate for guarantee corporation

7(4.0.1)    Despite subsections (1) and (3), the applicable tax rate for a guarantee corporation, as defined in The Credit Unions and Caisses Populaires Act, is as follows:

(a) 5% for the calendar years 2003, 2004 and 2005;

(b) 4.5% for the calendar year 2006;

(c) 3% for the calendar year 2007;

(d) 2% for the calendar year 2008;

(e) 1% for the period after 2008 and before December 1, 2010;

(f) 0% for the period after November 30, 2010.

No small business deduction for guarantee corporation

7(4.0.2)    Despite subsection (2), a guarantee corporation is not entitled to a deduction under that subsection.

7(4.1)      [Repealed] S.M. 2005, c. 40, s. 31.

Meaning of "taxable income earned in the year in Manitoba"

7(5)        For the purposes of this section, section 8 and subsection 9(2), "taxable income earned in the year in Manitoba" of a corporation means its taxable income earned in the year in Manitoba as determined in accordance with federal regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act.

S.M. 1988-89, c. 19, s. 20; S.M. 1994, c. 23, s. 14; S.M. 1996, c. 66, s. 9; S.M. 1999, c. 3, s. 6; S.M. 2000, c. 39, s. 30; S.M. 2001, c. 41, s. 25; S.M. 2002, c. 19, s. 26; S.M. 2003, c. 4, s. 43; S.M. 2005, c. 40, s. 31; S.M. 2006, c. 24, s. 38; S.M. 2007, c. 6, s. 37; S.M. 2008, c. 3, s. 26; S.M. 2009, c. 26, s. 23; S.M. 2011, c. 41, s. 19; S.M. 2012, c. 1, s. 26; S.M. 2013, c. 55, s. 18.

7.1         [Repealed]

S.M. 1988-89, c. 19, s. 21; S.M. 1989-90, c. 15, s. 17; S.M. 1990-91, c. 13, s. 6; S.M. 1991-92, c. 31, s. 17; S.M. 1992, c. 52, s. 27; S.M. 2000, c. 39, s. 31.

MANUFACTURING INVESTMENT TAX CREDIT

Manufacturing investment tax credit

7.2(1)      There may be deducted from the tax otherwise payable under this Act by a corporation for a taxation year an amount not exceeding the lesser of

(a) the amount by which its investment tax credit at the end of the year exceeds the amount renounced under subsection (7) in respect of the year; and

(b) the tax otherwise payable by it under this Act for the year.

Refundable credit

7.2(1.1)    A corporation is deemed to have paid on its balance due day for a taxation year, on account of its tax payable for that taxation year, an amount equal to the least of the following amounts:

(a) the amount, if any, by which its investment tax credit at the end of the taxation year, determined without reference to any expenditure incurred after the end of the year, exceeds the total of

(i) the tax that would otherwise be payable by it for the year if no amount were deducted in respect of a loss realized, property acquired or expenditure incurred after the end of the year, and

(ii) the amount renounced under subsection (7) in respect of the year;

(b) subject to subsection (1.2), 80% of the total of the amounts determined for the year under clauses (a) and (c) of the definition "investment tax credit" in subsection (2);

(c) the amount, if any, by which

(i) the total of the amounts determined for the year under clauses (a) and (c) of the definition "investment tax credit" in subsection (2),

exceeds

(ii) the amount renounced under subsection (7) in respect of the year.

Transitional

7.2(1.2)    The reference in clause (1.1)(b) to "80%" is to be read as "70%" in respect of property acquired before July 1, 2013.

Definitions

7.2(2)      In this section,

"investment tax credit" of a corporation at the end of a taxation year means the amount, if any, by which the aggregate of

(a) an amount equal to 10% of the aggregate of all amounts each of which is the capital cost to the corporation of a qualified property acquired by it in the year, determined with reference to paragraphs 127(11.1)(b) and (d) of the federal Act, but without treating the investment tax credit as government assistance under those provisions,

(b) an amount equal to 10% of the aggregate of all amounts each of which is the capital cost to the corporation of a qualified property acquired by it in any of

(i) the 10 immediately preceding taxation years ending after 2003, or

(ii) the three immediately following taxation years,

determined with reference to paragraphs 127(11.1)(b) and (d) of the federal Act, but without treating the investment tax credit as government assistance under those provisions,

(c) all amounts each of which is an amount required by subsection (3) or (4) to be added in computing its investment tax credit at the end of the year, and

(d) all amounts each of which is an amount required by subsection (3) or (4) to be added in computing its investment tax credit at the end of any of the taxation years referred to in clause (b),

exceeds the aggregate of

(e) all amounts each of which is an amount previously deducted under subsection (1), or previously credited under subsection (1.1), in respect of an amount included under clauses (a) to (d) in determining the corporation's investment tax credit at the end of the taxation year, and

(f) all amounts each of which is an amount renounced under subsection (7) in respect of an amount included under clause (b) in determining the corporation's investment tax credits at the end of the taxation year; (« crédit d'impôt à l'investissement »)

"manufacturing or processing" has the meaning assigned by subsection 125.1(3) of the federal Act, and includes qualified activities as defined in the federal regulations made for the purpose of the definition "Canadian manufacturing and processing profits" in that subsection; (« fabrication ou transformation »)

"qualified property" of a corporation means property that was acquired by the corporation before 2018, and

(a) is qualified property, as defined in subsection 127(9) of the federal Act (having regard to subsection 127(11) of that Act), that was acquired by the corporation after March 11, 1992, and is

(i) to be used by the corporation in Manitoba primarily for manufacturing or processing goods for sale or lease, or

(ii) to be leased by the corporation — in the ordinary course of its principal business in Manitoba of manufacturing property for sale or lease — to a lessee who is not exempt from tax under section 149 of the federal Act and who can reasonably be expected to use the property in Manitoba primarily for manufacturing or processing goods for sale or lease, or

(b) is Class 43.1 or 43.2 property under the federal regulations that was acquired by the corporation after April 22, 2003, was not used — or acquired for use or lease — for any purpose whatever before it was acquired by the corporation, and is

(i) to be used by the corporation in Manitoba for producing energy — or for conserving or reducing the need to acquire energy — primarily for use in its business in Manitoba of manufacturing or processing goods for sale or lease, or

(ii) to be leased by the corporation — in the ordinary course of its principal business in Manitoba of manufacturing goods for sale or lease — to a lessee who is not exempt from tax under section 149 of the federal Act and who can reasonably be expected to use the property in Manitoba for producing energy — or for conserving or reducing the need to acquire energy — primarily for use in its business in Manitoba of manufacturing or processing goods for sale or lease. (« biens admissibles »)

7.2(2.1)    [Repealed] S.M. 2013, c. 55, s. 19.

Qualified property acquired after March 8, 2005 includes used property

7.2(2.2)    In determining whether property acquired after March 8, 2005, is qualified property,

(a) the definition "qualified property" in subsection 127(9) of the federal Act shall be read without reference to "that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer" in the part after paragraph (b) and before paragraph (c); and

(b) the part of clause (b) before subclause (i) of the definition "qualified property" in subsection (2) of this Act shall be read without reference to "was not used — or acquired for use or lease — for any purpose whatever before it was acquired by the corporation,".

7.2(2.3)    [Repealed] S.M. 2006, c. 24, s. 39.

Property acquired when available for use

7.2(2.4)    In determining a taxpayer's investment tax credit at any time after March 8, 2005,

(a) a property acquired after that date is deemed not to have been acquired by the taxpayer; and

(b) an expenditure incurred after that date to acquire property is deemed not to have been incurred by the taxpayer;

before the property is considered to have become available for use by the taxpayer, as determined under subsection 13(27) of the federal Act without reference to paragraph (c) or under subsection 13(28) of that Act without reference to paragraph (d).

Limitations

7.2(2.5)    In determining a taxpayer's investment tax credit at any time after March 8, 2005,

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

(b) no amount shall be included in respect of property acquired after that date if an amount in respect of the property is included in computing a tax credit claimed under any other section of this Act.

Credit — trust beneficiary

7.2(3)      Where, in a particular taxation year of a corporation that is a beneficiary under a trust, an amount would, if the trust were a corporation, be determined in respect of the trust under clause (a) or (c) of the definition of "investment tax credit" in subsection (2) for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be the corporation's share thereof is the amount required to be added in computing the investment tax credit of the corporation at the end of that particular taxation year.

Credit — partnership

7.2(4)      Where, in a particular taxation year of a corporation that is a member of a partnership, an amount would, if the partnership were a corporation, be determined in respect of the partnership under clause (a) or (c) of the definition of "investment tax credit" in subsection (2) for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share thereof is the amount required to be added in computing the investment tax credit of the corporation at the end of that particular taxation year.

Tiered partnerships

7.2(4.1)    For the purpose of subsection (4), a corporation that is a member of a partnership that is a member of another partnership is deemed to be a member of that other partnership.

Credit — amalgamation

7.2(5)      Where after March 11, 1992, there has been an amalgamation within the meaning of subsection 87(1) of the federal Act and one or more of the predecessor corporations had an investment tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes only of determining the investment tax credit of the new corporation for any taxation year preceding any taxation year of the new corporation, the new corporation shall be deemed to be the same corporation as, and a continuation of, each such predecessor corporation.

Credit — winding-up

7.2(6)      Where after March 11, 1992 there has been a winding-up to which subsection 88(1) of the federal Act applies and the subsidiary had an investment tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes only of determining the investment tax credit of the parent for any taxation year preceding any taxation year of the parent, the parent shall be deemed to be the same corporation as, and a continuation of, the subsidiary.

Corporation may renounce tax credit

7.2(7)      A corporation may renounce its entitlement to all or any part of the portion of its investment tax credit that is attributable to qualified property acquired by it in a taxation year, but only if it does so no later than one year after the filing-due date for that taxation year.

Effect of renunciation by filing-due date

7.2(8)      A corporation that renounces an amount under subsection (7) in respect of a taxation year by the filing-due date for that year is deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the amount.

Effect of renunciation within following year

7.2(8.1)    A corporation that renounces an amount under subsection (7) in respect of a taxation year within the 365-day period immediately following the filing-due date for that year is deemed for that year, for all purposes except

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

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

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

S.M. 1992, c. 52, s. 28; S.M. 1993, c. 46, s. 39; S.M. 1994, c. 23, s. 15; S.M. 1995, c. 30, s. 9; S.M. 1996, c. 66, s. 10; S.M. 1997, c. 49, s. 17; S.M. 1999, c. 3, s. 7; S.M. 2000, c. 39, s. 32; S.M. 2003, c. 4, s. 44; S.M. 2004, c. 43, s. 49; S.M. 2005, c. 40, s. 33; S.M. 2006, c. 24, s. 39; S.M. 2007, c. 6, s. 38; S.M. 2008, c. 3, s. 27; S.M. 2009, c. 26, s. 24; S.M. 2011, c. 41, s. 20; S.M. 2013, c. 55, s. 19; S.M. 2014, c. 35, s. 39.

RESEARCH AND DEVELOPMENT TAX CREDIT

Definitions

7.3(1)      In this section,

"eligible expenditure" means

(a) an expenditure that was made by a corporation with a permanent establishment in Manitoba in respect of scientific research and experimental development carried out in Manitoba and that would be a qualified expenditure as defined in subsection 127(9) of the federal Act if

(i) paragraph (a) of that definition were to include the following subparagraph:

(iv) an expenditure of a capital nature made by the taxpayer (in respect of property acquired that would be depreciable property of the taxpayer if section 37 were not applicable in respect of the property, other than land or a leasehold interest in land) in the year on scientific research and experimental development carried on in Manitoba, directly undertaken by or on behalf of the taxpayer, and related to a business of the taxpayer, or

(ii) in the case of an expenditure referred to in subclause (2.3)(b)(i) of this section, the reference to "80%" in subparagraph (a)(ii) of that definition were read as "100%", and

(iii) that definition were read without reference to paragraphs (b) and (d), and

(b) the portion of the corporation's prescribed proxy amount referred to in paragraph (b) of the definition "qualified expenditure" in subsection 127(9) of the federal Act that can reasonably be considered to relate to scientific research and experimental development carried out in Manitoba; (« dépense admissible »)

"research and development tax credit" of a corporation at the end of a taxation year means the amount, if any, by which the aggregate of

(a) [repealed] S.M. 2013, c. 55, s. 20,

(a.1) an amount equal to 20% of the aggregate of all amounts each of which is an eligible expenditure made by it in the year, computed without reference to subsection 13(7.1) of the federal Act,

(b) [repealed] S.M. 2013, c. 55, s. 20,

(b.1) an amount equal to 20% of the aggregate of all amounts each of which is an eligible expenditure made by it after March 8, 2005, in any of

(i) the 10 immediately preceding taxation years, or

(ii) the three immediately following taxation years,

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

(c) all amounts each of which is an amount required by subsection (3) or (4) to be included in computing its research and development tax credit at the end of the year,

(d) all amounts each of which is an amount required by subsection (3) or (4) to be included in computing its research and development tax credit at the end of any of the taxation years referred to in clause (b.1), and

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

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

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

exceeds the aggregate of

(e) all amounts each of which is an amount previously deducted under subsection (2), or previously credited under subsection (2.3), in respect of an amount included under clauses (a.1) to (d.1) in determining the corporation's research and development tax credit at the end of the taxation year, and

(f) all amounts each of which is an amount renounced under subsection (7) in respect of an amount included under clause (b.1) in determining the corporation's investment tax credits at the end of the taxation year. (« crédit d'impôt pour la recherche et le développement »)

Deduction

7.3(2)       A corporation may deduct from the tax otherwise payable under this Act for a taxation year an amount not exceeding the lesser of

(a) the amount by which its research and development tax credit at the end of the year exceeds the amount renounced under subsection (7) in respect of the year; and

(b) its tax otherwise payable by it under this Act for the year.

7.3(2.1)    [Repealed] S.M. 2013, c. 55, s. 20.

Limitations

7.3(2.2)    In determining a taxpayer's research and development tax credit,

(a) no amount shall be included in respect of an eligible expenditure unless and until the taxpayer has filed with the minister, within one year after the filing-due date for the taxation year in which the expenditure was made and in a form and manner authorized by the minister, the information about the expenditure stipulated by the authorized form; and

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

Refundable credit

7.3(2.3)    A corporation is deemed to have paid on its balance-due day for a taxation year on account of its tax payable for that taxation year an amount equal to the least of the following:

(a) the amount, if any, by which its research and development tax credit at the end of the taxation year, determined without reference to any expenditure incurred after the end of the year, exceeds the total of

(i) the tax that would otherwise be payable by it for the year if no amount were deducted in respect of a loss realized, property acquired or expenditure incurred after the end of the year, and

(ii) the amount renounced under subsection (7) in respect of the year;

(b) the total of the following amounts:

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

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

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

(c) the amount, if any, by which

(i) the total of the amounts determined for the year under clauses (a.1) and (c) of the definition "research and development tax" in subsection (1),

exceeds

(ii) the amount renounced under subsection (7) in respect of the year.

For the purpose of clause (b), the portion of an expenditure of a trust or partnership that is included in computing the corporation's research and development tax credit is deemed to be the corporation's eligible expenditure.

Beneficiary of trust

7.3(3)      Where, in a particular taxation year of a corporation that is a beneficiary under a trust, an amount would, if the trust were a corporation, be included, by virtue of clause (a.1) or (c) of the definition of "research and development tax credit" as set out in subsection (1), in computing the research and development tax credit of the trust for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be the corporation's share thereof shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.

Member of partnership

7.3(4)      Where, in a particular taxation year of a corporation which is a member of a partnership, an amount would, if the partnership were a corporation, be included, by virtue of clause (a.1) or (c) of the definition of "research and development tax credit" as set out in subsection (1), in computing the research and development tax credit of the partnership for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share thereof shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.

Tiered partnerships

7.3(4.1)    For the purpose of subsection (4), a corporation that is a member of a partnership that is a member of another partnership is deemed to be a member of that other partnership.

Amalgamation

7.3(5)      Where, after March 11, 1992, two or more corporations amalgamate within the meaning of subsection 87(1) of the federal Act and one or more of the corporations had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes of determining the research and development tax credit of the new corporation for any taxation year preceding any taxation year of the new corporation, the new corporation shall be deemed to be the same corporation as and a continuation of each such predecessor corporation.

Winding-up

7.3(6)       Where, after March 11, 1992, a subsidiary is wound up within the meaning of subsection 88(1) of the federal Act and the subsidiary had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes of determining the research and development tax credit of the parent for any taxation year preceding any taxation year of the parent, the parent shall be deemed to be the same corporation as and a continuation of the subsidiary.

Corporation may renounce tax credit

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

Effect of renunciation by filing-due date

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

Effect of renunciation within following year

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

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

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

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

Exception

7.3(8)      Notwithstanding the definition "eligible expenditure" in subsection (1), for the purposes of determining the research and development tax credit of a corporation, the amount of a contract payment paid or payable by a person to the corporation for an eligible expenditure made by the corporation shall be deemed to be nil if the person is not entitled to treat the contract payment as an eligible expenditure under this section, or if the person is a corporation that has renounced the research and development tax credit in respect of the contract payment under subsection (7).

S.M. 1992, c. 52, s. 28; S.M. 1994, c. 23, s. 16; S.M. 1995, c. 30, s. 10; S.M. 1997, c. 49, s. 18; S.M. 1998, c. 30, s. 28; S.M. 2000, c. 39, s. 33; S.M. 2002, c. 19, s. 27; S.M. 2004, c. 43, s. 50; S.M. 2005, c. 40, s. 35; S.M. 2006, c. 24, s. 40; S.M. 2009, c. 26, s. 25; S.M. 2010, c. 29, s. 19; S.M. 2011, c. 41, s. 21; S.M. 2012, c. 1, s. 27; S.M. 2013, c. 55, s. 20.

7.4         [Repealed]

S.M. 1993, c. 46, s. 40; S.M. 2013, c. 55, s. 21.

FILM AND VIDEO PRODUCTION TAX CREDIT

Definitions and Interpretation

Definitions

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

"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 »)

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

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

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

"eligible 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 »)

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

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

(b) has a permanent establishment in Manitoba;

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

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

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

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

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

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

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

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

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

(a) the salary or wages of eligible individuals that

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

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

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

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

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

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

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

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

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

(iii) another corporation,

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

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

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

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

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

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

(c) where

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

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

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

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

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

(d) the lesser of

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

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

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

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

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

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

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

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

(c) to a taxable Canadian corporation,

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

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

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

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

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

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

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

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

C × R × D/365

In this formula,

C

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

R

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

D

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

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

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

(b) alcoholic beverages;

(c) [repealed] S.M. 2012, c. 1, s. 28;

(d) living expenses other than eligible accommodation expenditures;

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

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

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

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

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

(b) government amount paid or payable to the corporation by The Canada Media Fund, Telefilm Canada or Manitoba Film and Sound Recording Development Corporation that is recoupable or repaid;

(c) any amount received or receivable under The Canada Media Fund Licence Fee Program;

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

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

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

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

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

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

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

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

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

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

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

Limitations re eligible salaries

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

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

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

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

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

(e) an expense may be included in eligible salaries only if it is incurred and paid before January 1, 2017.

Eligible training

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

(a) Film Training Manitoba;

(b) the Directors Guild of Canada;

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

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

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

Limitation re eligible tangible property expenditure

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

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

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

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

(d) the expenditure is reasonable in the circumstances;

(e) in the case of a lease cost,

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

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

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

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

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

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

S.M. 1997, c. 49, s. 19; S.M. 1998, c. 30, s. 29; S.M. 2000, c. 39, s. 34; S.M. 2001, c. 41, s. 26; S.M. 2002, c. 19, s. 28; S.M. 2003, c. 4, s. 45; S.M. 2004, c. 43, s. 51; S.M. 2005, c. 40, s. 36; S.M. 2007, c. 6, s. 39; S.M. 2008, c. 3, s. 28; S.M. 2010, c. 29, s. 20; S.M. 2012, c. 1, s. 28; S.M. 2013, c. 55, s. 22.

Tax Credit

Refundable film and video production tax credit

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

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

(b) either

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

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

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

Cost-of-salaries credit

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

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

In this formula,

A

is the amount, if any, by which

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

exceeds

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

B

is nil, unless

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

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

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

in which case B is the amount determined for A;

C

is nil, unless

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

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

in which case C is the amount determined for A;

D

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

Principal owner

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

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

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

(c) whom the certifying authority, upon application in a form and containing the information required by the authority, recognizes as the film's principal owner because of their contribution to the development, creative and financial control, and exploitation of the film, having regard to their role in

(i) the acquisition or development of the film's story,

(ii) commissioning the writing of the film's screenplay,

(iii) selecting, hiring or firing key artists and creative personnel,

(iv) preparing, revising and approving the film's budget,

(v) binding the production company to talent and crew contracts,

(vi) arranging production financing,

(vii) making final creative decisions,

(viii) making or authorizing production expenditures, and

(ix) banking arrangements for the production.

Only one principal owner

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

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

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

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

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

Frequent filming bonus involving series

7.6(5)      In determining the amount for B in the formula in subsection (2) in respect of an eligible film,

(a) a cycle of a commercially exploitable series may be treated as an eligible film, regardless of the combined running length of its episodes;

(b) episodes with a combined running length of two hours within the same cycle of a commercially exploitable series may be treated as a prior film;

(c) the remaining episodes in a cycle that are not treated as a prior film under clause (b) may be treated as a separate eligible film if, as a separate eligible film, the amount determined for it under B in that formula would not be nil; and

(d) the amount determined for A for the separate eligible film under clause (c) shall be that proportion of the amount determined for A for the cycle that the running length of the separate film is of the running length of the whole cycle.

For the purpose of this subsection, if the series is a television series, the running length of an episode is deemed to be its broadcast length and the running length of a cycle is the total running length of the episodes in that cycle.

Cost-of-production credit

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

credit = 0.3(A − B)

In this formula,

A

is the total of

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

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

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

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

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

to the extent that those amounts

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

(f) were incurred and paid before January 1, 2017,

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

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

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

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

(k) are not excluded production expenditures;

B

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

Application for credit

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

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

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

Duplicate claims

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

Interpretation

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

S.M. 1997, c. 49, s. 19; S.M. 1999, c. 3, s. 8; S.M. 2001, c. 41, s. 27; S.M. 2002, c. 19, s. 29; S.M. 2003, c. 4, s. 46; S.M. 2004, c. 43, s. 52; S.M. 2005, c. 40, s. 37; S.M. 2006, c. 24, s. 41; S.M. 2007, c. 6, s. 40; S.M. 2008, c. 3, s. 29; S.M. 2010, c. 29, s. 20; S.M. 2012, c. 1, s. 29; S.M. 2013, c. 55, s. 23.

Registration and Certification

Registration as eligible film

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

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

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

(c) will not be a production

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

(ii) of one or more talk shows,

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

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

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

(vi) that solicits funds,

(vii) of reality television,

(viii) of pornography,

(ix) of advertising,

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

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

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

(d) satisfies any additional criteria prescribed by regulation.

Advance certificate of eligibility for credit

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

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

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

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

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

Certificate of completion

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

(a) the corporation

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

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

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

(i) the production has been completed,

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

(iii) the applicant is an eligible corporation.

Content of certificate of completion

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

(a) that the film is an eligible film;

(b) that the corporation is an eligible corporation;

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

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

S.M. 1997, c. 49, s. 19; S.M. 1998, c. 30, s. 30; S.M. 2001, c. 41, s. 28; S.M. 2004, c. 43, s. 53; S.M. 2008, c. 3, s. 30; S.M. 2010, c. 29, s. 20.

Revocation of registration or certificate

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

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

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

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

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

Effect of revocation

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

S.M. 1997, c. 49, s. 19; S.M. 2002, c. 19, s. 30; S.M. 2008, c. 3, s. 31; S.M. 2010, c. 29, s. 20.

Regulations

Regulations

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

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

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

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

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

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

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

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

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

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

(j) respecting the application for a tax credit;

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

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

S.M. 1997, c. 49, s. 19; S.M. 2002, c. 19, s. 31; S.M. 2010, c. 29, s. 20.

7.10 to 7.12[Repealed]

S.M. 1997, c. 49, s. 19; S.M. 1998, c. 30, s. 31; S.M. 2002, c. 19, s. 32 and 33; S.M. 2003, c. 4, s. 47; S.M. 2008, c. 3, s. 32; S.M. 2010, c. 29, s. 20.

COOPERATIVE DEVELOPMENT TAX CREDIT

Definitions

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

"administrator" means

(a) Manitoba Cooperative Association Inc.; and

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

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

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

"eligible contributor" means

(a) a Manitoba cooperative; and

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

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

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

Cooperative development fund

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

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

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

(i) providing technical assistance to Manitoba cooperatives, and

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

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

Administrator's obligations

7.13(3)     An administrator must

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tax credit receipt

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

(a) the name and address of the contributor;

(b) the name and address of the administrator;

(c) the date and amount of the contribution;

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

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

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

Annual limit on tax credits

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

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

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

Reduced limit if more than one administrator

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

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

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

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

Restrictions on use of grant or investment proceeds

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

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

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

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

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

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

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

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

(h) for any other purpose prohibited by regulation;

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

Recovery of tax credit — failure to use contributions

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

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

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

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

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

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

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

S.M. 2010, c. 29, s. 21.

Cooperative development tax credit

7.14(1)     Subject to subsection (3), an eligible contributor may deduct from the tax otherwise payable by it for a taxation year an amount not exceeding the contributor's cooperative development tax credit (T) determined according to the following table based on the total of the cooperative development contributions (C) made by the contributor in that taxation year:

Contributions © Tax Credit (T)
$10,000 or less T = C × 3/4
$10,001 to $30,000 T = $7,500 + © − $10,000)/2
$30,001 to $50,000 T = $17,500 + © − $30,000)/3
$50,001 or more T = $24,167

Refundable credit

7.14(2)     Subject to subsection (3), if an eligible contributor's maximum tax credit for a taxation year under subsection (1), determined according to the table in that subsection, exceeds its tax otherwise payable for the year, it is deemed to have paid, on account of its tax payable for the taxation year, the amount of the excess or $750., whichever is less.

Proof of credit

7.14(3)     An eligible contributor is not entitled to a credit under this section for a taxation year unless the tax credit receipt or receipts that were issued to the contributor for that credit are

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

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

Unused credit deductible in other years

7.14(4)     If an eligible contributor's maximum credit for a taxation year under subsection (1), determined according to the table in that subsection, exceeds the total of $750. and its tax otherwise payable for that year, the contributor may apply the excess — to the extent that it has not been applied to reduce its tax otherwise payable for any taxation year — to reduce its tax payable for

(a) any of the three preceding taxation years ending after 2009; or

(b) any of the next 10 taxation years.

S.M. 2010, c. 29, s. 21; S.M. 2011, c. 41, s. 22.

Administrator to keep records

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

Recipient to keep records

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

Location of records

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

S.M. 2010, c. 29, s. 21.

Regulations

7.16        The Lieutenant Governor in Council may make regulations

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

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

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

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

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

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

S.M. 2010, c. 29, s. 21.

"NEIGHBOURHOODS ALIVE!" TAX CREDIT

Definitions

7.17(1)     The following definitions apply in this section and section 7.18.

"eligible donation" means a gift of money that

(a) is made by a taxable Canadian corporation to a Manitoba charity after April 12, 2011 and before 2020;

(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) is deductible under paragraph 110.1(1)(a) of the federal Act in computing the donor's taxable income;

(c) is used by the charity or designated by the charity for its use in

(i) establishing and operating an eligible social enterprise, or

(ii) assisting another Manitoba charity controlled by it to establish and operate an eligible social enterprise; and

(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. (« don admissible »)

"eligible service contribution" of a corporation means a contribution of services by it, without reward or compensation of any kind, to a Manitoba charity to assist it in the establishment or operation of the eligible social enterprise supported by one or more eligible donations of the corporation. (« services admissibles »)

"eligible social enterprise" means a business or not-for-profit undertaking that

(a) is carried on in Manitoba by or on behalf of a Manitoba charity;

(b) commenced operation after April 12, 2011;

(c) generates revenue for the charity;

(d) in the case of a business, is a related business of the charity within the meaning of subsection 149.1(6) of the federal Act; and

(e) employs individuals, at least 25% of whom, at the time of applying for employment, are resident in Manitoba and face multiple barriers to employment. (« entreprise sociale admissible »)

"Manitoba charity" means a registered charity that is resident in Manitoba or has a permanent establishment in Manitoba. (« organisme de bienfaisance du Manitoba »)

Barriers to employment

7.17(2)     For the purpose of the definition "eligible social enterprise" in subsection (1), an individual faces a barrier to employment if, at the time of applying for employment, the individual

(a) has been out of the labour force for more than a year;

(b) has not completed high school;

(c) is more than 45 years old;

(d) is receiving assistance under The Manitoba Assistance Act;

(e) has a previous criminal conviction;

(f) is eligible for the disability tax credit under section 118.3 of the federal Act;

(g) is a Convention refugee, a protected person or a person in need of protection within the meaning of sections 95 to 97 of the Immigration and Refugee Protection Act (Canada); or

(h) [repealed] S.M. 2012 c. 1, s. 30;

(i) meets any other criteria prescribed by regulation.

S.M. 2011, c. 41, s. 23; S.M. 2012, c. 1, s. 30; S.M. 2013, c. 55, s. 24; S.M. 2014, c. 35, s. 25.

Deduction from tax payable

7.18(1)     A corporation may deduct from its tax otherwise payable under this Act for a taxation year that ends after 2011 an amount not exceeding its tax credit determined under subsection (2) for the year if the corporation

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

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

(c) made an eligible service contribution in that taxation year for the benefit of the eligible social enterprise assisted by the eligible donation referred to in clause (b); and

(d) receives from the Manitoba charity to whom the eligible service contribution was provided, a receipt, in a form approved by the Minister of Finance for Manitoba, acknowledging receipt of the contribution, describing the contribution and stating when it was provided.

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).

Carry-over of unused credit

7.18(3)     A corporation may deduct from its tax otherwise payable for a taxation year ending after 2011 the amount, if any, by which

(a) the total of all amounts each of which is its tax credit determined under subsection (2) for any of the immediately preceding 10 taxation years or the immediately following three taxation years;

exceeds

(b) the total of all amounts each of which is an amount deducted by the corporation under subsection (1) or this subsection in respect of the tax credits described in clause (a).

Charity to file return

7.18(4)     Within six months after the end of the taxation year in which a Manitoba charity receives an eligible donation or an eligible service contribution in support of an eligible social enterprise, the charity must file with the Minister of Finance for Manitoba

(a) a copy of each receipt issued by it for an eligible service contribution received by it in that year; and

(b) a return of information, in a form approved by the Minister of Finance for Manitoba, that

(i) identifies and describes the enterprise,

(ii) identifies each corporation that made an eligible donation or eligible service contribution in that year to support the establishment and operation of the enterprise, and describes each service contribution for which a receipt was issued in that year,

(iii) sets out the total of the eligible donations made in that year in support of the enterprise, and by whom they were made,

(iv) verifies that the service contributions have been used, and the eligible donations have been used or set aside for use, in the establishment or operation of the enterprise, and

(v) provides employment statistics for the enterprise, including the numbers of full-time and part-time employees employed in the enterprise in that year, how many of them faced multiple barriers to employment and the types of barriers faced by them.

S.M. 2011, c. 41, s. 23; S.M. 2012, c. 1, s. 31.

DATA PROCESSING INVESTMENT TAX CREDITS

Refundable data processing centre investment tax credit

7.19(1)     An eligible data processing centre 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.

Refundable data processing equipment investment tax credit

7.19(1.1)   An eligible corporation is deemed to have paid on its balance-due day for a taxation year, on account of its tax payable under this Act for the year, an amount equal to its data processing equipment 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 centre 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 du centre »)

"data processing equipment" of a corporation means equipment

(a) that the corporation acquired by purchase or lease after April 16, 2013 and before 2016;

(b) that is or would be, if it were owned by the corporation, a property included in Class 46 or Class 50 in Schedule II to the federal regulations;

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

(d) that is not replacement property;

(e) in respect of which no amount is or has been included in computing the corporation's data processing centre investment tax credit for any taxation year; and

(f) that is situated in Manitoba and is used, or will be used, by the corporation exclusively, or nearly exclusively, for the purpose of data processing. (« matériel de traitement de l'information »)

"eligible corporation" means a taxable Canadian corporation with a permanent establishment in Manitoba. (« corporation admissible »)

"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 »)

Replacement property

7.19(2.1)   For the purpose of clause (d) of the definition "data processing equipment" in subsection (2), equipment (referred to in this subsection as "new equipment") is replacement property for other equipment (referred to in this subsection as "former equipment") if

(a) it is reasonable to conclude that the new equipment was acquired to replace the former equipment;

(b) the former equipment

(i) was acquired by purchase or lease by the corporation or a person who is related to the corporation,

(ii) is or would be if it were owned by the corporation a property included in Class 46 or Class 50 in Schedule II to the federal regulations,

(iii) is or was situated in Manitoba, and

(iv) is or was used in Manitoba by the corporation or related person exclusively, or nearly exclusively, for the purpose of data processing; and

(c) the new equipment was acquired by the corporation

(i) for a use that is the same as or similar to the use to which the corporation or related person put the former equipment, and

(ii) for the purpose of gaining or producing income from the same or a similar business as that in which the former equipment was used.

Eligible data processing centre corporation

7.19(3)     For the purpose of subsection (1), a corporation is an eligible data processing centre 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), 8% of the amount, if any, by which

(a) the corporation's capital cost of an item of data processing centre 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 centre 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), 4.5% 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.

Data processing equipment investment tax credit amount

7.19(4.1)   Subject to subsection (4.2), a corporation's data processing equipment investment tax credit for a taxation year is the total of all amounts each of which is, subject to subsection (6), 8% of the amount, if any, by which

(a) the corporation's capital cost of an item of data processing equipment purchased within the year and before 2016, or a later prescribed date; or

(b) the corporation's leasing cost for the year for an item of data processing equipment acquired by lease before 2016, or a later prescribed date;

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 equipment investment tax credit for that item of equipment for a previous year.

Minimum investment

7.19(4.2)   A corporation is not entitled to a data processing equipment investment tax credit unless the total of all amounts each of which is a cost referred to in clause (4.1)(a) or (b) is at least $10,000,000.

Property acquired when available for use

7.19(5)     For the purpose of this section, property acquired by a corporation 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 or data processing equipment 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) and for the purpose of clauses (4.1)(a) and (b);

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

S.M. 2012, c. 1, s. 32; S.M. 2013, c. 55, s. 26.

FOREIGN TAX CREDIT

Foreign tax credit for corporations

8(1)        Where the income for a taxation year of a corporation that maintained a permanent establishment in Manitoba at any time in the taxation year includes income described in subparagraph 126(1)(b)(i) of the federal Act from sources in a country other than Canada (in this section referred to as "foreign investment income") and where the corporation has claimed a deduction under subsection 126(1) of the federal Act in respect of the foreign investment income, the corporation may deduct from the tax for the year otherwise payable under this Act an amount equal to the lesser of the following amounts:

(a) the amount determined by the following formula:

P × A × D/F

(b) the amount determined by the following formula:

(B − C) × D/E

In these formulas,

A

is the foreign investment income of the corporation for the year from sources in the other country,

B

is the part of any non-business-income tax (as defined in subsection 126(7) of the federal Act) paid by the corporation for the year to the government of a country other than Canada (other than any tax that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation),

C

is the amount deductible by the corporation under subsection 126(1) of the federal Act,

D

is the taxable income earned in the year in Manitoba of the corporation,

E

is the total of all amounts each of which is the taxable income earned in the year in a province, as determined in accordance with the federal regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act,

F

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

P

is the tax rate under subsection 7(3) for the period in which the taxation year falls or, if it falls in more than one period in that subsection, the total of the tax rates each of which is that proportion of the tax rate for a period in which a part of the taxation year falls that

(i) the number of days in the taxation year that fall in that period,

bears to

(ii) the number of days in the taxation year.

Separate credit for each foreign country

8(2)        Where the income of a corporation for a taxation year includes income from sources in more than one country other than Canada, subsection (1) shall be read as providing for separate deductions in respect of each of the countries other than Canada.

Interpretation

8(3)        For the purpose of subsection (1), the government of a country other than Canada includes the government of a state, province or other political subdivision of that country.

S.M. 2000, c. 39, s. 35; S.M. 2004, c. 43, s. 54; S.M. 2005, c. 40, s. 38; S.M. 2006, c. 24, s. 42; S.M. 2010, c. 29, s. 23; S.M. 2012, c. 1, s. 33.

Capital gains refund

9(1)        Where an amount is to be refunded to a corporation for a taxation year under section 131 of the federal Act, the treasurer shall, subject to subsection (2), at such time and in such manner as is provided in that section, refund to the corporation an amount (in this section referred to as its "capital gains refund" for the year) equal to the lesser of

(a) the corporation's Manitoba refundable capital gains tax on hand at the end of the year; and

(b) the amount determined by the following formula:

0.5 × T × (D + R) × I1/I2

In this formula,

T

is the applicable tax rate for the taxation year,

D

is the total of all dividends paid by the corporation in the period commencing 60 days after the beginning of the taxation year and ending 60 days after the end of the taxation year that are capital gains dividends for that year for the purposes of section 131 of the federal Act,

R

is the amount of the corporation's capital gains redemptions for the year as determined for the purposes of section 131 of the federal Act,

I1

is the corporation's taxable income earned in the year in Manitoba or, if the corporation has no taxable income for the year, the amount that would be its taxable income earned in the year in Manitoba if its taxable income for the year were $1,000.,

I2

is the corporation's taxable income for the year or, if it has no taxable income for the year, $1,000.

Manitoba refundable capital gains tax on hand

9(2)        For the purpose of subsection (1), a corporation's Manitoba refundable capital gains tax on hand at the end of a taxation year is the amount determined by the following formula:

T − R

In this formula,

T

is the total of all amounts each of which is the least of the following amounts determined in relation to a particular taxation year that is the current taxation year or a previous taxation year ending after 2005 throughout which the corporation was a mutual fund corporation:

(a) the tax otherwise payable by the corporation under this Act for the particular taxation year,

(b) the corporation's taxed capital gains, as determined under subsection 130(3) of the federal Act for the particular taxation year, multiplied by the applicable tax rate for that year,

(c) the corporation's taxable income for the particular taxation year multiplied by the applicable tax rate for that year;

R

is the total of all amounts refunded to the corporation under this section for a previous taxation year ending after 2005.

"Applicable tax rate" defined

9(3)        For the purposes of subsections (1) and (2), the applicable tax rate for a taxation year is the applicable tax rate for that year under subsection 7(3) or, if different rates under that subsection apply to different periods in the year, the applicable tax rate is the total of all rates each of which is the rate determined by the following formula for such a period:

rate = R × Dp/Dy

In this formula,

R

is the applicable tax rate under subsection 7(3) for the period;

Dp

is the number of days in the taxation year that fall within the period;

Dy

is the number of days in the taxation year.

Applying refund to other liability

9(4)        Instead of refunding an amount to a corporation under subsection (1), the treasurer may, where the corporation is liable or about to become liable to make any payment under this Act, apply the amount to that other liability and notify the corporation of that action.

S.M. 1993, c. 46, s. 41; S.M. 2000, c. 39, s. 36; S.M. 2008, c. 3, s. 33.

10          [Repealed]

S.M. 1998, c. 5, s. 83; S.M. 2000, c. 39, s. 37; S.M. 2002, c. 19, s. 34.

DIVISION III

SPECIAL CASES

CO-OP EDUCATION AND APPRENTICESHIP TAX CREDIT

Definitions

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

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

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

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

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

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

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

"employer" means

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

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

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

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

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

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

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

"qualifying graduate" means a person who completed a cooperative education program before 2015 and received a degree, diploma or other certificate of completion for completing the program. (« diplômé admissible »)

"qualifying journeyperson" means a person who holds a certificate of qualification as a journeyperson in a designated trade under The Apprenticeship and Certification Act and became a journeyperson in that trade before 2015. (« compagnon admissible »)

"qualifying period of employment"

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

(i) throughout the period or periods,

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

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

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

(D) the apprentice is resident in Manitoba, and

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

(ii) the employment is at a level of apprenticeship begun by the apprentice before 2015,

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

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

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

(i) throughout the period or periods,

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

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

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

(D) the apprentice is resident in Manitoba, and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(vi) the period comprises

(A) 12 consecutive months of continuous employment, or

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

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

"qualifying work placement" means a work placement that ends before 2015 and is

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

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

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

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

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

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

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

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

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

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

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

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

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

"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 »)

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

Hiring Incentives

Refundable tax credit

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

Amount of tax credit

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

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

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

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

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

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

Co-op student hiring incentive

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

W × A/B

In this formula,

W

is the lesser of

(a) $1,000., and

(b) 10% of the amount by which

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

exceeds

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

A

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

B

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

Co-op graduate hiring incentive

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

W × A/B

In this formula,

W

is the lesser of

(a) $2,500., and

(b) 5% of the amount by which

(i) the total salary and wages paid to the qualifying graduate for a 12-month qualifying period of employment that ended in the taxation year,

exceeds

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

A

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

B

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

Early level apprentice hiring incentive

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

(a) $3,000 less the total of all incentives claimed under this subsection for a preceding taxation year in respect of the employment of the apprentice at that level;

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

W × A/B

In this formula,

W

is 15% of the amount by which

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

exceeds

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

A

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

B

is the total salary and wages paid to the apprentice for that period.

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%".

Advanced level apprentice hiring incentive

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

W × A/B

In this formula,

W

is the lesser of

(a) $5,000, and

(b) 10% of the amount by which

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

exceeds

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

A

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

B

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

Journeyperson hiring incentive

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

W × A/B

In this formula,

W

is the lesser of

(a) $5,000, and

(b) 10% of the amount by which

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

exceeds

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

A

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

B

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

Restrictions

Restriction — qualifying period of employment

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

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%".

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.

Restriction — proof of credit

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

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

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

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

Proof-of-credit — Qualifying Work Placement

Proof-of-credit certificate — qualifying work placement

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

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

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

Limitation

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

Waiver of completion requirement

10.1(14)    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".

Proof-of-credit — Qualifying Period of Employment

Proof-of-credit certificate — qualifying period of employment

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

(a) the employer has filed with the authority

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

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

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

Limitation — employment of graduate or journeyperson

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

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

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

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

Restriction — employer of journeyperson to participate in apprenticeship program

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

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

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

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

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

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

Waiver of 12-month completion requirement

10.1(18)    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".

Other Administrative Provisions

Application for approval of cooperative education program

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

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

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

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

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

Certificate of approval

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

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

(b) in that certificate of approval,

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

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

Employers may share apprentice hiring incentive

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

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

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

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

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

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

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

is of

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

Regulations

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

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

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

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

Unused credit

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

Amalgamation

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

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

(b) is deemed by subsection (2) to have paid on account of its tax payable;

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

Winding-up

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

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

(b) is deemed by subsection (2) to have paid on account of its tax payable;

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

10.1(27) and (28)  [Repealed] S.M. 2011, c. 41, s. 24.

S.M. 2003, c. 4, s. 48; S.M. 2004, c. 43, s. 55; S.M. 2005, c. 40, s. 39; S.M. 2006, c. 24, s. 43; S.M. 2008, c. 3, s. 35; S.M. 2009, c. 26, s. 26; S.M. 2009, c. 33, s. 52; S.M. 2010, c. 29, s. 24; S.M. 2011, c. 41, s. 24; S.M. 2012, c. 1, s. 34.

ODOUR-CONTROL TAX CREDIT

Odour-control tax credit

10.2(1)     An eligible taxpayer may deduct from his or her tax otherwise payable under this Act for a taxation year an amount not exceeding the lesser of

(a) the amount by which the taxpayer's odour-control tax credit at the end of the year exceeds the amount renounced under subsection (9) in respect of the year; and

(b) the tax otherwise payable by the taxpayer under this Act for the year.

Credit refundable if it relates to farming

10.2(1.1)   An eligible taxpayer who is carrying on the business of farming 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, the amount, if any, by which the taxpayer's odour-control tax credit at the end of the year exceeds the total of

(a) the tax otherwise payable by the taxpayer under this Act for the year; and

(b) the amount renounced under subsection (9) in respect of the year.

Definitions

10.2(2)     In this section,

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

"capital cost", in relation to a business entity's depreciable capital property, means the amount that would be the business entity's capital cost of the property if the amount of any government assistance received or receivable in respect of the property by the entity, or by a taxpayer claiming an amount under subsection (4), were deducted from the capital cost otherwise determined; (« coût en capital »)

"eligible equipment" means any of the following types of equipment, if it is used by the taxpayer for the purpose of preventing, eliminating or significantly reducing odour that arises — or without the use of the equipment would arise — from organic waste used or created in the course of the taxpayer's business in Manitoba:

(a) a straw cannon;

(b) a sewage lagoon cover or seal;

(c) biofiltering equipment;

(d) a storage tank or container for organic waste;

(e) spraying equipment for aerobic or anaerobic treatment of organic waste;

(f) a soil injector for a manure spreader. (« matériel admissible »)

"eligible expenditure" of a business entity for a taxation year means its capital cost of a depreciable capital property that

(a) is an item of eligible equipment, or is declared under subsection (3) to be a qualifying property,

(b) was acquired by it after April 19, 2004, and before 2018 for the purpose of preventing, eliminating or significantly reducing odour that arises — or without the use of the property would arise — from organic waste used or created in the course of its business in Manitoba,

(c) became available for use by it in the taxation year and before 2018, 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) was not used or acquired for any use by anyone before the property was acquired by the business entity;

(e) [repealed] S.M. 2005, c. 40, s. 39. (« dépenses admissibles »)

"eligible taxpayer" means a corporation or a farmer. (« contribuable admissible »)

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

"government assistance" means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance, other than a tax credit under this section; (« aide gouvernementale »)

"minister" means the Minister of Finance for Manitoba or a person designated by him or her to perform certain duties assigned to the minister under this section or the regulations; (« ministre »)

"odour-control tax credit" of an eligible taxpayer at the end of a taxation year means the amount, if any, by which

(a) 10% of all amounts each of which is an eligible expenditure of the taxpayer for the year or for any of the 10 immediately preceding taxation years or the three immediately following taxation years,

exceeds the total of

(b) the total of all amounts deducted under subsection (1) for a preceding taxation year in respect of an eligible expenditure of the taxpayer for any of the 10 immediately preceding taxation years or the two immediately following taxation years,

(c) the total of all amounts deemed by subsection (1.1) to have been paid by the taxpayer on account of tax payable for a preceding taxation year in respect of an eligible expenditure of the taxpayer for any of the 10 immediately preceding taxation years or the two immediately following taxation years, and

(d) the total of all amounts renounced under subsection (9) in respect of an eligible expenditure of the taxpayer for any of the 10 immediately preceding taxation years or the three immediately following taxation years. (« crédit d'impôt pour la lutte contre l'émission d'odeurs »)

"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(2.1)   Despite subsection (2), in determining a taxpayer's odour-control tax credit,

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

(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;

(b.1) no amount shall be included in respect of

(i) equipment used for monitoring or testing for odours,

(ii) equipment, other than a soil injection manure spreader, used for transmitting or transporting organic waste or odours, or

(iii) equipment used primarily to prevent, reduce or eliminate air pollution or water pollution;

(c) no amount shall be included in respect of an acquisition of property by a farmer unless the property is acquired for use in his or her farming business; and

(d) for the purpose of subsection (1.1), no amount shall be included in respect of an acquisition of property that was not acquired for use in the taxpayer's farming business.

Minister may issue certificate

10.2(3)     The minister may issue a certificate to a business entity declaring a property to be a qualifying property for the purpose of this section if the entity satisfies the minister that the property

(a) is capable of being used, and is being or will be used, by it for the purpose of preventing, eliminating or significantly reducing odour that arises — or without the use of the property would arise — from organic waste used or created in the course of its business in Manitoba; and

(b) is being or will be used by it in a process that involves

(i) aerobic or anaerobic treatment,

(ii) composting,

(iii) drying or dehydration, or

(iv) fermentation,

of organic waste.

Trust or partnership

10.2(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(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(5.1)   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.

Amalgamation

10.2(6)     For the purpose of determining the amount that a corporation formed by an amalgamation to which subsection 87(1) of the federal Act applies may deduct under subsection (1) or is deemed by subsection (1.1) to have paid on account of tax, the corporation is deemed to be the same corporation as, and a continuation of, each of its predecessor corporations.

Winding-up

10.2(7)     For the purpose of determining the amount that a corporation may deduct under subsection (1) or is deemed by subsection (1.1) to have paid on account of tax for a taxation year ending after a winding-up of its subsidiary to which subsection 88(1) of the federal Act applies, the corporation is deemed to be the same corporation as, and a continuation of, the subsidiary.

Regulations

10.2(8)     The Lieutenant Governor in Council may make regulations

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

(b) [repealed] S.M. 2011, c. 41, s. 25;

(c) respecting the declaration of property as qualifying property for the purpose of this section, and the application for such a declaration;

(d) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out the intent and purpose of this section.

Corporation may renounce tax credit

10.2(9)     A corporation may renounce its entitlement to all or any part of the portion of its odour-control tax credit that is attributable to eligible expenditures incurred in a taxation year, but only if it does so no later than one year after the filing-due date for that taxation year.

Effect of renunciation by filing-due date

10.2(10)    A corporation that renounces an amount under subsection (9) in respect of a taxation year by the filing-due date for that year is deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the amount.

Effect of renunciation within following year

10.2(11)    A corporation that renounces an amount under subsection (9) in respect of a taxation year within the 365-day period immediately following the filing-due date for that year is deemed for that year, for all purposes except

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

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

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

S.M. 2004, c. 43, s. 56; S.M. 2005, c. 40, s. 39; S.M. 2006, c. 24, s. 44; S.M. 2009, c. 26, s. 27; S.M. 2011, c. 41, s. 25; S.M. 2012, c. 1, s. 35; S.M. 2013, c. 55, s. 27; S.M. 2014, c. 35, s. 41.

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 »)

"capital cost", in relation to a business entity's depreciable capital property, means the amount that would be the business entity's capital cost of the property if the amount of any government assistance received or receivable in respect of the property by the entity, or by a taxpayer claiming an amount under subsection (4), were deducted from the capital cost otherwise determined. (« coût en capital »)

"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 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 »)

"government assistance" means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance, other than a tax credit under this section. (« aide gouvernementale »)

"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.

S.M. 2012, c. 1, s. 36; S.M. 2014, c. 35, s. 42.

GREEN ENERGY EQUIPMENT TAX CREDIT

Definitions

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

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

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

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

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

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

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

Manufacturer's geothermal energy equipment tax credit

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

tax credit = P × 7.5%

In this formula, P is

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

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

Manufacturer's green energy transmission equipment tax credit

10.3(2.1)   For a taxation year beginning before 2019, an eligible manufacturer of prescribed green energy transmission equipment is deemed to have paid on account of its tax payable under this Act for that year the amount determined in accordance with the regulations in respect of the items of prescribed green energy transmission equipment sold by it in the taxation year to a purchaser for use in Manitoba.

Qualifications for geothermal heat pump

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

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

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

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

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

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

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

Purchaser's statement

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

Purchaser's green energy equipment tax credit

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

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

tax credit = capital cost × 15%

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

tax credit = price × 7.5%

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

tax credit = capital cost × 10%

In these formulas,

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

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

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

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

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

Claim to be supported by manufacturer's statement

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

Tax credit for member of partnership

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

(a) whose primary business in Manitoba is manufacturing geothermal heat pumps or prescribed green energy transmission equipment; or

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

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

No assignment of tax credit

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

Regulations

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

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

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

(c) respecting the provision of information by

(i) a manufacturer of geothermal energy equipment or prescribed green energy transmission equipment, or

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

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

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

(d.1) prescribing, as green energy transmission equipment, equipment that is related to the transmission of energy from a renewable resource and designed to minimize the loss of energy through transmission;

(d.2) prescribing a formula or method for calculating the tax credit under subsection (2.1) in respect of prescribed green energy transmission equipment;

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

S.M. 2007, c. 6, s. 42; S.M. 2010, c. 29, s. 25; S.M. 2011, c. 41, s. 26.

MANITOBA BOOK PUBLISHING TAX CREDIT

Book publishing tax credit

10.4(1)     Subject to subsection (2), an eligible publisher is deemed to have paid on the publisher's balance-due day for a taxation year, on account of the publisher's tax payable under this Act for that year, such amount as is claimed by the publisher, but not exceeding the total of

(a) the lesser of

(i) $100,000., and

(ii) the amount determined by the following formula:

40% × [A + (L × P1/P2)]

In this formula,

A

      is, subject to any limit prescribed by regulation, the total of the non-refundable monetary advances made in the taxation year by the publisher to authors of eligible books published or to be published by the publisher,

L

      is the publisher's book publishing labour costs for the taxation year,

P1

      is the total number of pages that make up the eligible books published by the publisher in the taxation year,

P2

      is the total number of pages that make up the books published by the publisher in the taxation year, and, for the purpose of this formula, the number of pages that make up an electronic book is to be determined in accordance with the regulations; and

(b) the total of

(i) 10% of the publisher's eligible printing costs for the taxation year, and

(ii) 5% of the publisher's eligible printing costs for the taxation year that were incurred and paid after April 12, 2011.

Claim for credit

10.4(2)     No amount may be claimed under subsection (1) for a taxation year except by filing with the minister, within one year after the filing due date for the taxation year and in a form and manner authorized by the minister, the information to be provided on that form.

Definitions

10.4(3)     The following definitions apply in this section.

"book publishing labour costs" of a publisher for a taxation year ending after April 12, 2011, means the total of

(a) the amounts paid by the publisher in that taxation year and before 2018 as salary or wages to its employees who were resident in Manitoba on December 31 of that taxation year; and

(b) 65% of the amounts paid by the publisher in that taxation year and before 2018 as fees to an individual who is resident in Manitoba and not an employee of the publisher, or to a corporation with a permanent establishment in Manitoba;

to the extent that the amounts are reasonable in the circumstances and

(c) are related to the publication of hardcover or paperback books; or

(d) were incurred after April 12, 2011, and are related to the publication of electronic books;

but are not related to the marketing or promotion of books. (« coûts en main-d'œuvre d'édition »)

"eligible book" means a first edition, non-periodical publication that meets all of the following requirements:

(a) in the case of a book published before April 13, 2011, it is published in hardcover or paperback book format;

(b) it is published after April 9, 2008, and before 2018;

(c) in the case of a hardcover or paperback book, a prescribed number of copies of the book — or 300 copies, if no number of copies is prescribed — have been printed;

(d) the book is assigned an International Standard Book Number (ISBN), and is classified as fiction, non-fiction, poetry, drama, biography or a children's book;

(e) if it is not a children's book, it is at least 48 pages long or, in the case of an electronic book, it is the equivalent of at least 48 pages long as determined in accordance with the regulations;

(f) the entire book, or substantially all of it, has been written, adapted or translated by an author who is a Canadian citizen or permanent resident and is paid a fee or royalty on sales of the book;

(g) if it is an illustrated children's book, the illustrations or substantially all of them have been created by an illustrator who is a Canadian citizen or permanent resident and is paid a fee or royalty on sales of the book;

(h) if it is a book comprising written works by different authors, all or substantially all of the written works within the book meet the requirements of clause (f) and, if applicable, clause (g);

(i) its publisher deals at arm's length with the author referred to in clause (f) and, if applicable, with the illustrator referred to in clause (g);

(j) its publisher's costs of publishing the book are recoverable only from sales of the book, and are not directly or indirectly funded or guaranteed to be paid, in whole or in part, by the author, the illustrator or a person who is the subject of the book, or by any person who is related to any of them;

(k) it is not a directory, agenda, catalogue, calendar, map or collection of maps, loose-leaf publication, colouring book, sticker book or other activity book or book of games, or a similar product;

(l) it does not contain any advertising other than the publisher's own promotional material;

(m) it does not contain material that is hate propaganda or child pornography as defined in the Criminal Code (Canada) or is deemed to be obscene under that Act, or any other material the publication, sale or possession of which is an offence under that Act;

(n) [repealed] S.M. 2010, c. 29, s. 26;

(o) any additional requirement prescribed by regulation. (« livre admissible »)

"eligible printing costs" of a publisher for a taxation year means the publisher's costs for the year of printing, assembling and binding eligible books, to the extent that those costs

(a) are reasonable in the circumstances;

(b) are incurred after April 9, 2008 and before 2019;

(c) are incurred in relation to an eligible book in the year it is published or in the immediately following year;

(d) are paid by the publisher in the taxation year;

(e) relate to the publication of eligible books that are printed on paper having at least 30% recycled content comprised of post-consumer waste paper; and

(f) satisfy any other requirements prescribed by regulation. (« coûts d'impression admissibles »)

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

"tax credit" means the book publishing tax credit under subsection (1). (« crédit d'impôt »)

Interpretation of "book publishing labour costs"

10.4(4)     For the purpose of the definition "book publishing labour costs" in subsection (3),

(a) an amount is related to the publication of a book if it is incurred as a cost of

(i) editing, design, research or project management in relation to the book,

(ii) creating artwork for the book, or

(iii) developing a prototype of the book;

(b) legal and accounting costs are deemed not to be related to the publication of books, even if they are incurred in connection with the publication of books; and

(c) any part of a salary, wage or fee that is determined by reference to profits or revenues is deemed not to be related to the publication of books.

Eligible publisher

10.4(5)     For the purpose of subsection (1), a person is an eligible publisher for a taxation year if

(a) the person is

(i) an individual, other than a trust, who is resident in Manitoba at the end of the taxation year, or

(ii) a corporation that has a permanent establishment in Manitoba in the taxation year;

(b) the person is

(i) carrying on the book publishing business as a university press, or

(ii) primarily engaged in the operation of the book publishing business;

(c) where the business is operated as a university press, at least 25% of the total salaries and wages paid in the taxation year by the person to employees employed in that business was paid to employees who were resident in Manitoba on December 31 of the taxation year;

(d) where the business is not operated as a university press, at least 25% of the total salaries and wages paid in the taxation year by the person to the person's employees was paid to employees who were resident in Manitoba on December 31 of the taxation year; and

(e) the person has published at least two eligible books within the two-year period ending at the end of the taxation year.

Book publishing business

10.4(6)     For the purpose of subsection (5), a business is a book publishing business only if, in the course of that business,

(a) books are selected, edited, published and offered for sale to retailers, or directly or indirectly to consumers;

(b) the owner of the business enters into agreements with authors and copyright holders for the production of books in print form; and

(c) the owner maintains an inventory of books that it publishes, or has agreements to repurchase or allow the return of unsold books.

Duplicate claims

10.4(7)     If more than one publisher claims to be the publisher of an eligible book, the book must be excluded in determining the tax credit of each of them, unless they file with the minister an agreement signed by all of them that allocates among them the number of pages of the book that are to be included in determining their tax credits.

Recovery of overpayment of tax credit

10.4(8)     If the minister determines that all or any part of an amount paid or applied under subsection (1) did not qualify as a tax credit of the person to whom it was paid or for whose benefit it was applied, that amount or part of the amount is recoverable from the person and is a debt due by the person to Her Majesty in right of Manitoba.

Regulations

10.4(9)     The Lieutenant Governor in Council may make regulations

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

(b) prescribing a limit to non-refundable advances to authors that may be included in determining the amount of a tax credit;

(c) prescribing additional requirements for the purpose of

(i) the definition "eligible book", or

(ii) the definition "eligible printing costs";

(d) prescribing additional categories of expenses that may be included as book publishing labour costs;

(e) respecting information to be provided by a person claiming a tax credit under this section;

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

(f.1) prescribing how the number of pages of an electronic book is to be determined for the purpose of this section;

(g) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out effectively the intent and purpose of this section.

Delegation

10.4(10)    The minister may delegate to an employee of the government any power, duty or function of the minister under this section.

S.M. 2008, c. 3, s. 37; S.M. 2009, c. 26, s. 28; S.M. 2010, c. 29, s. 26; S.M. 2011, c. 41, s. 27; S.M. 2012, c. 1, s. 37; S.M. 2014, c. 35, s. 43.

CULTURAL INDUSTRIES PRINTING TAX CREDIT

Printing tax credit

10.4.1(1)   Subject to subsection (2), an eligible printer is deemed to have paid on the printer's balance-due day for a taxation year, on account of the printer's tax payable under this Act for that year, an amount equal to 15% of the total of all amounts each of which is the printer's eligible printing revenue for the taxation year in relation to an eligible book.

Claim for credit

10.4.1(2)   No amount may be claimed under subsection (1) for a taxation year except by filing with the minister, within one year after the filing due date for the taxation year and in a form and manner authorized by the Minister of Finance for Manitoba, the information to be provided on that form.

Definitions

10.4.1(3)   The following definitions apply in this section.

"eligible book" means an eligible book as defined in subsection 10.4(3) that meets the following requirements:

(a) at least 90% of its content is new material that has not previously been published otherwise than as an earlier printing of the same publication;

(b) if it contains pictures and it is not a children's book, the ratio of text to pictures is at least 65%;

(c) the printer satisfies the minister that the book is for sale through an established distributor. (« livre admissible »)

"eligible printer" mean a person who

(a) in the case of a corporation, has a permanent establishment in Manitoba in the taxation year;

(b) in the case of an individual, is resident in Manitoba at the end of the taxation year; and

(c) prints books in the course of the person's business in Manitoba. (« imprimeur admissible »)

"eligible printing revenue" of an eligible printer for a taxation year in relation to the printed copies of an eligible book means the lesser of

(a) $30,000 less the amount, if any, included in the printer's eligible printing revenue for a previous taxation year in relation to that book; and

(b) the total of all amounts each of which is an amount paid in the taxation year and before 2016

(i) to the printer by a publisher who is not related to the printer and is resident in Canada, and

(ii) for the service, provided before 2016, of printing, assembling or binding copies of that eligible book in Manitoba. (« revenus d'impression admissibles »)

S.M. 2011, c. 41, s. 28; S.M. 2012, c. 1, s. 38; S.M. 2014, c. 35, s. 44.

INTERACTIVE DIGITAL MEDIA TAX CREDIT

Interactive digital media tax credit

10.5(1)     Subject to subsections (2) to (2.3), a qualifying corporation is deemed to have paid on its balance-due day for a taxation year, on account of its tax payable under this Act for that year, such amount as is claimed by the corporation, but not exceeding the total of all amounts each of which is the lesser of

(a) 40% of the corporation's eligible project costs in relation to an eligible project for the year; and

(b) the amount by which $500,000 exceeds the total of all amounts each of which is an amount claimed by the corporation as a tax credit under this subsection in relation to the eligible project for a previous taxation year.

Eligible project costs for the year

10.5(1.1)   A corporation's eligible project costs in relation to an eligible project for a taxation year is the total of

(a) the corporation's eligible labour costs in relation to the eligible project for the year; and

(b) the lesser of

(i) the corporation's eligible marketing and distribution costs in relation to the eligible project for the year, and

(ii) the amount by which $100,000 exceeds the total of all amounts each of which is the corporation's eligible marketing and distribution costs in relation to the eligible project for a previous taxation year in which an amount was claimed under subsection (1).

Eligible labour costs for the year

10.5(1.2)   A corporation's eligible labour costs in relation to the eligible project for a taxation year is the amount, if any, by which

(a) the total of the corporation's labour expenses in relation to the eligible project as at the end of the year;

exceeds the aggregate of

(b) the total of all government assistance in respect of the corporation's labour expenses in relation to the eligible project; and

(c) the total of all amounts each of which is the amount of the corporation's eligible labour costs in relation to the eligible project for a previous taxation year in which an amount was claimed under subsection (1).

Eligible marketing and distribution costs for the year

10.5(1.3)   A corporation's eligible marketing and distribution costs in relation to the eligible project for a taxation year is the amount, if any, by which the aggregate of

(a) 50% of the total of the corporation's marketing and distribution expenses for meals or entertainment in relation to the eligible project as at the end of the year; and

(b) the total of all other marketing and distribution expenses of the corporation in relation to the eligible project as at the end of the year;

exceeds the aggregate of

(c) the total of all government assistance in respect of the corporation's marketing and distribution expenses in relation to the eligible project; and

(d) the total of all amounts each of which is the amount of the corporation's eligible marketing and distribution costs in relation to the eligible project for a previous taxation year in which an amount was claimed under subsection (1).

Transitional — eligible marketing and distribution costs

10.5(1.4)   No amount may be claimed as eligible marketing and distribution costs in relation to a project with a commencement date before 2013.

Claim for credit

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

Proof of credit

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

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

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

Limitation for projects for government

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

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

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

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

exceeds

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

Limitation on credit due to government contribution

10.5(2.3)   Despite subsection (1), the total of a corporation's credits under that subsection in relation to an eligible project, including credits claimed in relation to the project for previous taxation years, must not exceed the amount by which

(a) the corporation's total cost of the project;

exceeds

(b) the total of all assistance which the corporation receives or is entitled to receive from a government, municipality or other public authority in respect of the eligible project — other than a tax credit under this section — that is not repaid by the corporation before the day that is three years after the project's completion date.

"Qualifying corporation" defined

10.5(3)     For the purpose of this section, a corporation is a qualifying corporation in relation to an eligible project if

(a) throughout the project period, it is a taxable Canadian corporation with a permanent establishment in Manitoba; and

(b) at least 25% of the salary and wages paid by the corporation to its employees for the project period was paid to employees who are Manitoba residents for the project period.

Other definitions

10.5(4)     The following definitions apply in this section.

"commencement date", in relation to an eligible project of a corporation, means the date on which the corporation first incurs an expense to be included in the corporation's labour expenses for the project. (« date de début »)

"eligible product", in relation to an eligible project, means the interactive digital media product to be developed in the course of the eligible project. (« produit admissible »)

"eligible project" means a project of a corporation, certified by the minister to be an eligible project of the corporation, to develop an interactive digital media product primarily for sale to

(a) one or more purchasers who deal with the corporation at arm's length; or

(b) a purchaser who does not deal with the corporation at arm's length for resale or licensing by the purchaser to one or more other persons, most of whom deal at arm's length with the purchaser and the corporation. (« projet admissible »)

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

(a) assistance — including an amount paid or payable to the corporation by The Canada Media Fund — that is recoupable or repaid; and

(b) the tax credit under this section or section 10.1 (co-op education and apprenticeship tax credit), received or receivable by the corporation. (« aide gouvernementale »)

"interactive digital media product" means a product that

(a) consists of a combination of software and data files, in digital format, that are designed to be operated together, interactively by the user, to present information using sound, text and images, or any two of them;

(b) is designed primarily to educate, inform or entertain the user;

(c) in the case of a video game, is classified by the Entertainment Software Rating Board as anything other than "AO" (adults only); and

(d) is not

(i) operating system software,

(ii) a product to be used primarily for interpersonal communication,

(iii) a product to be used primarily for marketing or promoting of an entity, a product or an idea,

(iv) a product that contains hate propaganda or child pornography as defined in the Criminal Code (Canada) or is deemed to be obscene under that Act, or any other material the publication, sale or possession of which is an offence under that Act, or

(v) a product that, in the opinion of the minister, it would be contrary to public policy to support with public funds. (« produit utilisant des médias numériques interactifs »)

"labour expense" of a corporation in relation to an eligible project means any of the following amounts, to the extent that the amount is reasonable in the circumstances, directly attributable to the project and incurred and paid before 2017 and within the project period:

(a) an amount on account of salaries and wages paid by the corporation to its employees who are Manitoba residents for the project period;

(b) 65% of the fee paid by the corporation to

(i) an individual who is a Manitoba resident for the project period and is not an employee of the corporation for services performed by the individual or by one or more employees of the individual who are Manitoba residents for the project period,

(ii) a taxable Canadian corporation with a permanent establishment in Manitoba for services performed on its behalf by one or more employees who are Manitoba residents for the project period, or

(iii) a partnership carrying on business in Canada for services performed on its behalf by one or more individuals who are employees or members of the partnership and are Manitoba residents for the project period;

(c) 20% of an amount that would be included under clause (a) or (b) in respect of services performed in Manitoba for the project by an individual who is not a Manitoba resident for the project period if

(i) the individual were a Manitoba resident for the project period, and

(ii) no amount were included in respect of the benefits or allowances that are included (or would be included if the individual were an employee resident in Canada) in the income of the individual under section 6 of the federal Act. (« frais de main-d'œuvre »)

"Manitoba resident", in relation to a project period, means resident in Manitoba on any December 31 within the period or, if the period does not include that day, on December 31 of the year in which the period ends. (« résident du Manitoba »)

"marketing and distribution expense" of a corporation in relation to an eligible project means an expense that

(a) is reasonable in the circumstances and directly attributable to advertising or promoting the eligible product or distributing the eligible product to customers or potential customers;

(b) is incurred and paid by the corporation

(i) during the project period or within 12 months after the day on which the project period ends, and

(ii) after 2012 and before 2017;

(c) does not relate directly to processing an order by, or shipping an eligible product to, a consumer who purchased the eligible product directly from the corporation;

(d) does not relate to an eligible product that is developed

(i) under the terms of an agreement between the corporation and a purchaser that deals at arm's length with the corporation, and

(ii) for the purpose of sale or license by the purchaser to one or more persons any of whom deals at arm's length with the purchaser;

(e) is not an amount referred to in clause (5)(a) or subclause (5)(b)(ii) or (iii); and

(f) is not included in computing

(i) the corporation's eligible labour costs in relation to the eligible project,

(ii) the corporation's eligible project costs in relation to any other project, or

(iii) the eligible project costs of any other corporation. (« frais de commercialisation et de distribution »)

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

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

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

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

Interpretation of "labour expense"

10.5(5)     For the purpose of the definition "labour expense" in subsection (4),

(a) no amount may be included in respect of the following:

(i) salary, wages or fees determined by reference to profits or revenues,

(ii) stock options, signing bonuses, or other employment incentives,

(iii) ancillary employment benefits that are not required by law to be provided,

(iv) any benefits or remuneration prescribed by regulation,

(v) an amount that is included in computing the corporation's eligible labour costs in relation to any other project or the eligible labour costs of any other corporation,

(vi) an amount that is included in computing a tax credit claimed under any other section of this Act other than section 10.1 (co-op education and apprenticeship tax credit), or under any Act of another province or territory of Canada; and

(b) an amount is not considered to be directly attributable to an eligible project if it is paid for

(i) services related to distribution, marketing or promotion,

(ii) administrative, payroll or management services, other than management services consisting of managing the project, or

(iii) any other service prescribed by regulation.

Certificate of eligibility

10.5(6)     Upon application by a corporation proposing to develop an interactive digital media product, the minister may issue to the corporation a document that

(a) identifies the project and certifies it to be an eligible project;

(b) sets out the corporation's proposed commencement date and estimated completion date for the project;

(c) provides an estimate of the tax credit; and

(d) includes any other information that the minister considers appropriate or necessary.

Application for certificate of eligibility

10.5(7)     A corporation's application for a certificate of eligibility under subsection (6) must be made in a form approved by the minister and before the commencement date of the project, and must include the following:

(a) the name, address and business number of the corporation;

(b) a description of the interactive digital media product to be developed;

(c) if the product is to be developed for sale to a purchaser for resale or licensing to others, the name and address of the purchaser and, if requested by the minister, a copy of the agreement between the corporation and the purchaser;

(d) if clause (c) does not apply or the purchaser referred to in that clause has not been identified, a copy of the corporation's plan for marketing the product;

(e) an estimate of the corporation's eligible labour costs and eligible marketing and distribution costs for the project;

(f) the proposed commencement date and an estimated completion date for the project;

(g) any other information requested by the minister.

Tax credit certificate

10.5(8)     The minister, upon application by a qualifying corporation in accordance with subsection (9), and upon being satisfied that the corporation qualifies for a tax credit for an eligible project, must issue a tax credit certificate that sets out

(a) the name, address and business number of the corporation and the identifier of the project;

(b) the amount of the tax credit;

(c) the taxation year to which the tax credit applies; and

(d) any other information that the minister considers appropriate or necessary.

Application for tax credit certificate

10.5(9)     A corporation's application for a tax credit certificate for an eligible project must be made in a form approved by the minister and must set out or include the following:

(a) the name, address and business number of the corporation;

(b) a copy of the certificate of eligibility for the project;

(c) the commencement date of the project and the date of its completion or the estimated date of its completion, if it has not yet been completed;

(d) a statement of the labour expenses and marketing and distribution expenses;

(e) information the minister requires in order to verify or be satisfied

(i) that the corporation is a qualifying corporation in relation to the project,

(ii) that the project has been completed and satisfies all the requirements for an eligible project,

(iii) that the amounts claimed as labour expenses qualify as labour expenses, and

(iv) that the amounts claimed as marketing and distribution expenses qualify as marketing and distribution expenses;

(f) any other information relating to the project or the corporation that the minister considers appropriate or necessary for the administration of the tax credit.

Revocation of certificate

10.5(10)    The minister may revoke a certificate of eligibility or a tax credit certificate issued to a corporation for a project if any information provided by the corporation to obtain the certificate is false or misleading or fails to disclose a material fact.  The minister may also revoke a certificate of eligibility for a project if

(a) the project is not carried out as proposed and ceases to be an eligible project; or

(b) the project is not completed within 36 months after the certificate was issued.

Effect of revocation

10.5(11)    If a certificate is revoked under subsection (10), it is deemed never to have been issued.

Recovery of overpayment of tax credit

10.5(12)    If the Minister of Finance for Manitoba determines that all or any part of an amount paid or applied under subsection (1) did not qualify as a tax credit of the person to whom it was paid or for whose benefit it was applied, that amount or part of the amount is recoverable from the person and is a debt due by the person to Her Majesty in right of Manitoba.

Regulations

10.5(13)    The Lieutenant Governor in Council may make regulations

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

(b) prescribing benefits or remuneration expenses to be excluded from the definitions "labour expenses" and "marketing and distribution expense" in subsection (4);

(c) prescribing services the costs of which are not to be considered directly attributable to an eligible project;

(d) respecting information to be provided by a person claiming a tax credit under this section;

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

(f) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out effectively the intent and purpose of this section.

Delegation

10.5(14)    The minister may delegate any power, duty or function of the minister under this section to

(a) an employee of the government; or

(b) an officer of New Media Manitoba Inc.

S.M. 2008, c. 3, s. 37; S.M. 2010, c. 29, s. 27; S.M. 2013, c. 55, s. 28.

RENTAL HOUSING CONSTRUCTION TAX CREDIT

Definitions

10.6(1)     The following definitions apply in this section.

"affordable residential unit" means a residential unit for which the monthly rent does not exceed the limit for that type of unit determined in accordance with the regulations. (« unité résidentielle à prix abordable »)

"approved tenant" means a person certified by the minister to be an approved tenant. (« locataire approuvé »)

"capital cost", in relation to an eligible rental housing project of a qualifying corporation or qualifying entity, means the amount that would be its capital cost if the amount of any government assistance received or receivable by the corporation or entity in respect of the project were deducted from the capital cost otherwise determined. (« coût en capital »)

"eligible rental housing project" for a taxation year means

(a) in the case of a qualifying entity's project, a rental housing project certified under subsection (5) to be an eligible rental housing project for that year; and

(b) in the case of a qualifying corporation's project, a rental housing project certified under subsection (6) to be an eligible rental housing project for a specified number of months in that year. (« projet admissible de logements locatifs »)

"government assistance" means assistance from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance, other than a tax credit under this section. (« aide gouvernementale »)

"minister" means the Minister of Housing and Community Development or a person designated by him or her to perform certain duties assigned to the minister under this section or the regulations. (« ministre »)

"program income limit", in relation to a household, means the annual income limit for that household determined in accordance with the regulations. (« plafond de revenu pour le programme »)

"qualifying corporation" means a taxable Canadian corporation that has a permanent establishment in Manitoba and is not a qualifying entity. (« corporation admissible »)

"qualifying entity" means

(a) a housing corporation described in paragraph 149(1)(i) of the federal Act;

(b) a non-profit organization described in paragraph 149(1)(l) of the federal Act;

(c) a limited dividend housing company described in paragraph 149(1)(n) of the federal Act; or

(d) a not for profit housing cooperative as described in subsection 275(2) of The Cooperatives Act. (« entité admissible »)

"rental housing project" means a building, group of buildings or portion of a building that

(a) is in Manitoba;

(b) is constructed, or converted from a non-residential use, by or for the taxpayer in accordance with a building permit obtained after April 16, 2013;

(c) becomes available for use before 2017;

(d) is Class 1 property of the taxpayer for the purpose of Schedule II to the federal regulations;

(e) is situated on land owned or leased by the taxpayer;

(f) contains at least five residential units; and

(g) is not a hotel, hostel or prescribed ineligible facility. (« projet de logements locatifs »)

"residential unit" means a residential dwelling unit that has its own keyed entry door, contains a bathroom and a kitchen or kitchenette and is usually rented or leased for a period of not less than one month. (« unité résidentielle »)

Rental housing construction tax credit — qualifying entity

10.6(2)     A qualifying entity is deemed to have paid on its filing-due day for a taxation year, on account of its tax payable under this Act for the year, the total of all amounts each of which is the lesser of

(a) 8% of the entity's capital cost of an eligible rental housing project that became available for use during the year determined

(i) without any tax credit under this section being treated as government assistance, and

(ii) without including any amount that is included in computing a tax credit claimed under any other section of this Act; and

(b) $12,000 multiplied by the number of residential units in the rental housing project.

Rental housing construction tax credit — qualifying corporation

10.6(3)      A qualifying corporation may deduct from its tax otherwise payable under this Act for a taxation year, for each project that is an eligible rental housing project of the corporation in that year, the amount determined by the following formula:

credit = M × C/60

In this formula,

M

is the number of months in the taxation year that the project is an eligible rental housing project;

C

is the lesser of

(a) 8% of the corporation's capital cost of the project, and

(b) $12,000 multiplied by the number of residential units in the project.

Carry-over of unused credit

10.6(4)     A taxable Canadian corporation may deduct from its tax otherwise payable for a taxation year the amount, if any, by which

(a) the total of all amounts each of which is its tax credit determined under subsection (3) for any of the immediately preceding 10 taxation years;

exceeds

(b) the total of all amounts each of which is an amount deducted by the corporation under subsection (3) or this subsection in respect of the tax credits described in clause (a).

Certification — project of qualifying entity

10.6(5)     Upon application by a qualifying entity, the minister must certify a rental housing project of the entity as an eligible rental housing project for a taxation year if the minister is satisfied that

(a) the project first became available for use in that year;

(b) from the day the project became available for use to the day the application was made, at least 10% of the residential units in the project were

(i) designated as, and rented or available for rent as, affordable residential units, and

(ii) either rented to an approved tenant or vacant; and

(c) the entity has undertaken to make at least 10% of the residential units in the rental housing project available for rent as affordable residential units for at least five years after the rental housing project became available for use.

Certification — project of qualifying corporation

10.6(6)     Upon application by a qualifying corporation within two months after the end of its taxation year, the minister must certify a rental housing project of the corporation as an eligible rental housing project for the months in the taxation year that are not more than 60 months after the project became available for use if the minister is satisfied that, throughout those months in that taxation year, at least 10% of the residential units in the project were

(a) designated as, and rented or available for rent as, affordable residential units; and

(b) either rented to an approved tenant or vacant.

Certification — approved tenant

10.6(6.1)   The minister must certify a person who rents or applies to rent an affordable residential unit as an approved tenant if the minister is satisfied that

(a) as of the date on which the person first rents or applies to rent an affordable residential unit, the person's household income does not exceed the program income limit applicable to the person's household; and

(b) the person is not related to the owner of the rental housing project.

Meaning of "household income"

10.6(6.2)   For the purpose of subsection (6.1), a person's household income is the total of all amounts each of which is the taxable income, for the immediately preceding taxation year, of the person or any other person that resides in or intends to reside in the affordable residential unit.

Meaning of "related person"

10.6(6.3)   For the purpose of subsection (6.1), a person is related to a taxpayer if the taxpayer and the person are "related persons", or persons related to each other, as defined in subsection 251(2) of the Income Tax Act (Canada), unless deemed by regulation not to be.

Annual filing

10.6(7)     A qualifying entity that claims an amount under subsection (2) in respect of an eligible rental housing project must — on or before the filing-due date for the taxation year in which the project becomes available for use and on or before the filing-due date for each of the next five taxation years — file with the minister a form containing the information stipulated by the form.

Amalgamation

10.6(8)     For the purpose of determining the amount that a corporation formed by an amalgamation to which subsection 87(1) of the federal Act applies may deduct under subsection (3) or (4), the corporation is deemed to be the same corporation as, and a continuation of, each of its predecessor corporations.

Winding-up

10.6(9)     For the purpose of determining the amount that a corporation may deduct under subsection (3) or (4) for a taxation year ending after a winding-up of its subsidiary to which subsection 88(1) of the federal Act applies, the corporation is deemed to be the same corporation as, and a continuation of, the subsidiary.

Regulations

10.6(10)    The Lieutenant Governor in Council may make regulations

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

(b) prescribing ineligible facilities for the purpose of the definition "rental housing project" in subsection (1);

(c) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out the purpose of this section.

Regulations by minister

10.6(11)    The minister may make regulations

(a) for the purpose of the definition "program income limit" in subsection (1), establishing annual household income limits for different types of households;

(b) for the purpose of the definition "affordable residential unit" in subsection (1), establishing rent limits for different types of units.

S.M. 2013, c. 55, s. 29; S.M. 2014, c. 35, s. 45.

11          [Repealed]

S.M. 2000, c. 39, s. 38.

LABOUR-SPONSORED FUNDS TAX CREDIT

Interpretation

11.1(1)     In this section and sections 11.5 and 11.5.1,

"approved share" means a Class A share that was issued to an individual who was a Manitoba resident at the time of the original acquisition of the share — or to a qualifying trust for such an individual — by a corporation that, at the time of that acquisition, was registered under The Labour-Sponsored Venture Capital Corporations Act; (« action approuvée »)

"approved share limit", in relation to a selling period of a labour-sponsored venture capital corporation, means the lesser of

(a) the total of the amounts designated by it under subsection (4) in respect of approved shares the original acquisition of which occurred in the period, and

(b) $30,000,000., or any greater amount prescribed in the regulations; (« plafond »)

"Class A share" means a Class A share as defined in The Labour-Sponsored Venture Capital Corporations Act; (« action de catégorie A »)

"labour-sponsored funds tax credit" of an individual (other than a trust) in respect of the original acquisition after 1996 of an approved share (other than a share in respect of which an amount was deducted under this section in computing the individual's income for the 1996 taxation year) by the individual or by a qualifying trust for the individual in respect of the share means 15% of the lesser of

(a) the net cost of the share to the individual or the trust, as the case may be, and

(b) the amount designated in respect of the share in the receipt filed by the individual under subsection (3); (« crédit d'impôt relatif à un fonds de travailleurs »)

"labour-sponsored venture capital corporation" means a corporation that is or has been registered under The Labour-Sponsored Venture Capital Corporations Act; (« corporation à capital de risque de travailleurs »)

"net cost" to an individual of an approved share, or to a qualifying trust for the individual in respect of an approved share, means the amount, if any, by which

(a) the amount of the consideration paid by the individual or the qualifying trust to acquire or subscribe for the share

exceeds

(b) the amount of any assistance (other than an amount included in computing a tax credit of the individual in respect of that share) provided or to be provided by a government, municipality, or any public authority in respect of or for the acquisition of, the share. (« coût net »)

"original acquisition" of a share means the acquisition of the share by the first registered holder of the share where that holder is the first person to acquire the share or to irrevocably subscribe and pay for the share; (« aquisition initiale »)

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

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

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

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

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

"selling period" means a period beginning on the 61st day of a calendar year and ending on the 60th day of the following calendar year; (« période de vente »)

Interpretation

11.1(1.1)   For the purposes of this section and section 11.5,

(a) a broker or dealer in securities who in that capacity acquires, subscribes for or becomes a registered holder of a share is deemed not to have acquired, subscribed for or become a registered holder of the share; and

(b) where the person who became the first registered holder of a Class A share irrevocably subscribed and paid for the share before it was first acquired by the person, the original acquisition of the share is deemed to have occurred when the share was irrevocably subscribed and paid for by the person;

(c) and (d) [repealed] S.M. 2006, c. 23, s. 2.

11.1(1.2) and (1.3) [Repealed] S.M. 2006, c. 23, s. 2.

11.1(2)     [Repealed] S.M. 2000, c. 39, s. 39.

Labour-sponsored funds tax credit

11.1(2.1)   Subject to subsection (3), there may be deducted from the tax otherwise payable under this Act by an individual (other than a trust) for a taxation year an amount not exceeding the lesser of

(a) $1,800.; and

(b) the amount determined by the following formula:

A − B

In this formula,

A

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

B

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

Proof of credit

11.1(3)     An individual is not entitled to a credit under this section unless the amount designated in respect of each approved share for which a credit is claimed is proven by filing with the minister a receipt in prescribed form setting out the amount designated in respect of the share under this section.

Designation of credit

11.1(4)     A corporation that issues an approved share shall designate for the purposes of this section, in the prescribed form and manner, an amount in respect of the share, not exceeding the consideration for which the share was issued.

11.1(4.1) and (4.2)  [Repealed] S.M. 2001, c. 24, s. 2.

Limitation on amount designated

11.1(5)     The total of the amounts designated under subsection (4) by a corporation for a taxation year in respect of approved shares purchased or subscribed for by an individual and a qualifying trust for the individual must not exceed $12,000.

Excess designation

11.1(6)     A corporation that designates under subsection (4) amounts for a selling period that in total exceed its approved share limit for the period shall pay a tax equal to 15% of the excess.

11.1(7) and (8)  [Repealed] S.M. 1997, c. 49, s. 20.

S.M. 1991-92, c. 48, s. 24; S.M. 1993, c. 46, s. 42; S.M. 1994, c. 27, s. 6; S.M. 1996, c. 66, s. 11; S.M. 1997, c. 49, s. 20; S.M. 1999, c. 3, s. 9; S.M. 2000, c. 39, s. 39; S.M. 2001, c. 24, s. 2; S.M. 2002, c. 19, s. 35; S.M. 2005, c. 43, s. 11; S.M. 2006, c. 23, s. 2; S.M. 2006, c. 24, s. 45; S.M. 2008, c. 3, s. 38; S.M. 2009, c. 26, s. 29.

11.2 to 11.4[Repealed]

S.M. 1997, c. 49, s. 21; S.M. 2006, c. 23, s. 3.

Recovery of credit: redemption of share

11.5(1)     Where an approved share of a labour-sponsored venture capital corporation is redeemed, acquired or cancelled by the corporation less than eight years after the original acquisition of the share, the person who was the shareholder immediately before the redemption, acquisition or cancellation (referred to in this section as the "vendor") shall pay a tax equal to the lesser of

(a) the labour-sponsored funds tax credit of an individual in respect of the original acquisition; and

(b) the amount that would, but for subsection (3), be payable to the vendor because of the disposition.

Exchange of Class A shares

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

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

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

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

No non-share consideration

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

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

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

Non-application of subsection (1)

11.5(2)     Subsection (1) does not apply to the redemption, acquisition or cancellation of an approved share by a labour-sponsored venture capital corporation

(a) [repealed] S.M. 2009, c. 26, s. 30;

(b) where no tax credit has been claimed in respect of the original acquisition of the share and the receipt referred to in subsection 11.1(3) in respect of the original acquisition has been returned to the corporation;

(c) where

(i) it occurs at the written request of the vendor and the vendor is the individual entitled to a deduction under subsection 11.1(2.1) in respect of the original acquisition of the share or

(A) the individual's spouse or common-law partner or former spouse or common-law partner,

(B) a registered retirement savings plan or registered retirement income fund under which the individual, spouse or common-law partner is an annuitant, or

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

(ii) the corporation is notified in writing that the individual became disabled and permanently unfit for work, or terminally ill, after the original acquisition;

(d) where it occurs at the request of the vendor, and the vendor is a person on whom the share devolved as a consequence of the death of an individual who held the share, whose TFSA held the share, or who was the annuitant under a registered retirement savings plan or registered retirement income fund that held the share;

(e) where, if the share is redeemed, acquired or cancelled on a day in February or on March 1, subsection (1) would not have applied if the redemption, acquisition or cancellation had occurred 30 days later; or

(f) where the corporation's registration under The Labour-Sponsored Venture Capital Corporations Act has been cancelled.

Recovery of credit: return of capital

11.5(2.1)   When a labour-sponsored venture capital corporation pays an amount to the holder of an approved share as a return of capital on the share less than eight years after the original acquisition of the share, the holder must pay a tax equal to the lesser of

(a) the labour-sponsored funds tax credit of an individual in respect of the original acquisition; and

(b) the amount that would, but for subsection (3), be payable to the holder as a return of capital on the share;

unless

(c) no tax credit has been claimed in respect of the original acquisition of the share and the receipt referred to in subsection 11.1(3) in respect of the original acquisition has been returned to the corporation; or

(d) the corporation's registration under The Labour-Sponsored Venture Capital Corporations Act has been cancelled.

Withholding and remittance of tax

11.5(3)     Where tax is payable under subsection (1) or (2.1) by the vendor or holder of a share, the corporation must

(a) withhold from the amount otherwise payable to the vendor or holder an amount equal to the tax payable by him or her;

(b) within 30 days after making the payment to the vendor or holder, remit the amount withheld to the Minister of Finance for Manitoba on behalf of the vendor or holder; and

(c) submit, with the remitted amount, a statement containing prescribed information.

Liability for tax

11.5(4)     A corporation that fails to withhold an amount to be withheld and remitted under subsection (3) is liable to pay the amount to the Minister of Finance for Manitoba at the time that it was to have been remitted, and may recover the amount so paid from the vendor or holder from whom it was to have been withheld.

Refund of tax

11.5(5)     The Minister of Finance for Manitoba may pay to an individual an amount not exceeding the lesser of

(a) the tax paid under this section in respect of the redemption, acquisition or cancellation of an approved share; and

(b) the amount, if any, by which the individual's labour-sponsored funds tax credit in respect of the original acquisition of the share exceeds the amount deducted by the individual under subsection 11.1(2.1) in respect of the share;

if the individual files a written application for the refund with the Minister of Finance for Manitoba no later than two years after the end of the calendar year in which the disposition occurred.

S.M. 1997, c. 49, s. 21; S.M. 2001, c. 24, s. 3; S.M. 2006, c. 23, s. 4; S.M. 2009, c. 26, s. 30.

Tax where venture capital business discontinued

11.5.1(1)   If a labour-sponsored venture capital corporation's registration under The Labour-Sponsored Venture Capital Corporations Act is cancelled, the corporation must pay to the Minister of Finance for Manitoba, within 90 days after the cancellation, a one-time tax equal to the total of the amounts each of which is an amount determined by the following formula in respect of an approved share of the corporation immediately before the cancellation:

amount per share = 1.875% (8 − Y) × C

In this formula,

Y

is the number of whole years throughout which the share has been outstanding;

C

is the amount of the consideration received by the corporation for the issue of the share.

Tax may be waived

11.5.1(2)   The Minister of Finance for Manitoba may waive the tax imposed by subsection (1).

S.M. 2006, c. 23, s. 5; S.M. 2009, c. 26, s. 31.

MANITOBA EQUITY TAX CREDIT

Definitions

11.6(1)     In this section,

"affiliate" in relation to a particular corporation means, subject to the regulations, a corporation or partnership that is affiliated with the particular corporation for the purposes of the federal Act; (« affiliée »)

"creditable amount" of a share at any time means

(a) in the case of an eligible share, the amount determined in accordance with the regulations in respect of the subscription price of the share, less the total of all amounts paid before that time as a return of capital on the share, and

(b) in any other case, nil; (« montant donnant droit à un crédit »)

"eligible corporation" at any time means a taxable Canadian corporation where

(a) the total carrying value at that time of all the property of the corporation and of all affiliates of the corporation (determined in accordance with generally accepted accounting principles on a consolidated and combined basis, where applicable) does not exceed $50,000,000.,

(b) neither the corporation nor any affiliate of the corporation carries on a business prescribed by regulation,

(c) not more than 10% of the total carrying value of the property of the corporation, and not more than 10% of the total carrying value of the property referred to in clause (a), is attributable to property prescribed by regulation,

(d) the corporation meets any active business or other requirements prescribed by regulation,

(e) the total number of employees each of whom is employed at that time by the corporation or an affiliate of the corporation does not exceed 500,

(f) at least 25% of the total number of employees each of whom is employed at that time by the corporation or an affiliate of the corporation are employed in Manitoba,

(g) at least 25% of the total number of employees employed at that time by the corporation are employed in Manitoba, and

(h) at least 25% of the total of all amounts each of which is comprised of the wages and salaries paid or payable by the corporation or an affiliate of the corporation to its employees for the calendar year that includes that time is reasonably attributable to services rendered in Manitoba by those employees; (« corporation admissible »)

"eligible investor" in relation to a share in the capital stock of a corporation means an individual, other than a trust and an investment dealer, where

(a) the individual or a qualifying trust for the individual owns the share, and

(b) the individual is not an insider of the corporation for the purposes of Part XI of The Securities Act; (« investisseur admissible »)

"eligible share" at any time means a share of a class of the capital stock of a corporation where

(a) the issuer of the share was an eligible corporation at the time it was issued,

(b) the corporation is or would, if the definition "eligible corporation" were read without clauses (a) and (e), be an eligible corporation at the particular time,

(c) the class of shares is listed and posted for trading on a stock exchange that, as determined by The Manitoba Securities Commission, is operating in Manitoba and is not listed on any other stock exchange,

(d) every share of the class was issued after April 29, 1999, before July 2008 and not more than three years before the particular time,

(e) all of the shares of the class were issued on the same primary distribution to the public, as defined in The Securities Act, of previously unissued shares at a time when, or immediately following which, the class of shares was listed and posted for trading on The Winnipeg Stock Exchange or another stock exchange that, as determined by The Manitoba Securities Commission, was then operating in Manitoba,

(f) the class was listed and posted for trading before July 2008 on The Winnipeg Stock Exchange or another stock exchange that, as determined by The Manitoba Securities Commission, was operating in Manitoba at the time of the listing,

(g) every share of the class was issued for consideration that consisted only of money,

(h) the issuer of the share received written confirmation from the minister that the issuance of the share as an eligible share would not cause the total of the creditable amounts for shares issued in the year to exceed $20,000,000.,

(i) the issuance of the share as an eligible share would not cause the total of the eligible shares amounts for the corporation and all affiliates of the corporation to exceed $5,000,000., and

(j) the share is a common share as defined in the regulations,

and includes a successor share as defined in the regulations; (« action admissible »)

"eligible shares amount" of a corporation at any time means the total of all amounts each of which is the creditable amount at that time in respect of a share issued before that time by the corporation or a predecessor of the corporation; (« montant des actions admissibles »)

"investment dealer" means a person registered as an investment dealer under The Securities Act; (« courtier en valeurs mobilières »)

"minister" means the minister appointed by the Lieutenant Governor in Council to administer The Labour-Sponsored Venture Capital Corporations Act; (« ministre »)

"qualifying trust" in relation to an individual means a trust governed by

(a) a registered retirement savings plan or registered retirement income fund of the individual, unless it is a spousal plan, or

(b) a spousal plan in relation to the individual. (« fiducie admissible »)

Delegation by minister

11.6(2)     The minister may delegate to one or more persons the authority to exercise any power or the requirement to perform any duty or function assigned to the minister by this section or the regulations made under this section.

Manitoba equity tax credit

11.6(3)     Subject to subsection (7), a taxpayer's equity tax credit for a taxation year is the total of all amounts each of which is an amount determined for a day in the year as the lesser of

(a) $1,500. divided by the number of days in the year; and

(b) the total of all amounts each of which is an amount determined by the following formula in respect of a share that is owned at the end of the day by the taxpayer or a qualifying trust for the taxpayer:

.05 × A/B

In this formula,

A

is

(i) if at the end of the day the taxpayer is an eligible investor in relation to the share, the creditable amount in respect of the share at that time, and

(ii) in any other case, nil; and

B

is the number of days in the year.

Report by issuer

11.6(4)     Every corporation shall, for each calendar year in which any of its issued shares are eligible shares, submit to the minister, in accordance with the regulations, a report respecting the corporation and each class of shares of its capital stock that were eligible shares at any time in that year.

Information for investment dealers

11.6(5)     For each year in respect of which information is provided under subsection (4) to the minister, the minister shall, in accordance with any applicable regulations,

(a) prepare a report listing all classes of shares that the minister is satisfied were eligible shares in the year and, if they were eligible shares for only part of the year, specifying the period or periods in the year that they were eligible shares; and

(b) send a copy of the report to each investment dealer.

Return of information

11.6(6)     A person who at any time in a calendar year holds, as investment dealer, an eligible share for an eligible investor or for a qualifying trust in relation to an eligible investor shall complete and send to the eligible investor and file with the minister and with the Minister of National Revenue, in accordance with the regulations, a return of information setting out

(a) the name of the issuer of the share and the class of shares to which it belongs;

(b) the eligible investor's total tax credit determined under clause (3)(b) in respect of the shares of that class for the period or periods in the year during which they were owned by the eligible investor or qualifying trust through the investment dealer; and

(c) any additional prescribed information.

Proof of credit

11.6(7)     A taxpayer is not entitled to a credit under this section unless the amount claimed is proven by the taxpayer filing with the Minister of National Revenue a return of information issued under subsection (6).

Regulations

11.6(8)     The Lieutenant Governor in Council may make regulations

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

(b) restricting or enlarging, for the purpose of this section, the meaning of any term used in this section;

(c) prescribing any matter required or authorized by this section to be prescribed by regulation;

(d) respecting the determination of the creditable amount in respect of a share;

(e) respecting reports referred to in subsections (4) and (5);

(f) respecting returns of information to be issued under subsection (6), including information to be included in those returns of information;

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

(h) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable to carry out the purpose of this section.

Stock savings plan

11.6(9)     The program of providing tax credits under this section in respect of the acquisition and ownership of eligible shares is deemed, for the purposes of the federal Act and the federal regulations, to be a stock savings plan, and an eligible share, while it is held by a person who by holding the share is entitled to a tax credit, is deemed to be held in the stock savings plan.

S.M. 1999, c. 3, s. 10; S.M. 2000, c. 5, s. 4; S.M. 2001, c. 41, s. 29; S.M. 2002, c. 19, s. 36; S.M. 2005, c. 40, s. 40.

MINERAL EXPLORATION TAX CREDIT

"Flow-through mining expenditure" defined

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

(a) is directly attributable to expenditures that

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

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

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

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

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

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

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

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

Mineral exploration tax credit

11.7(2)     An individual's mineral exploration tax credit for a taxation year after 2001 and before 2018 is the lesser of the following amounts:

(a) the amount that would be determined under Rule 7 of subsection 4(1) if the rule were read without reference to clauses (e) and (f); and

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

(i) 10%, for a year before 2009,

(ii) 20%, for 2009,

(iii) 30%, for a year after 2009.

Unused credit from other years

11.7(3)     Subject to subsection (3.1), an individual's unused mineral exploration tax credit from any of the three immediately following taxation years or any of the 10 immediately preceding taxation years after 2001 is such amount as the individual claims, not exceeding the amount determined by the following formula:

A − B − C

In this formula,

A

is the amount determined under clause (2)(b) for that following or preceding year;

B

is the amount determined under clause (2)(a) for that following or preceding year; and

C

is the total of all amounts claimed under this subsection in respect of that following or preceding year in computing the individual's tax payable under this Act for other years.

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.

Taxpayer's information return

11.7(4)     An individual is not entitled to a mineral exploration tax credit for a taxation year unless the amount claimed is proven by filing with the minister

(a) an information return issued by the corporation that renounced the flow-through mining expenditures to which the credit is attributable; and

(b) if the expenditures were renounced to a partnership of which the individual is a member, an information return issued by the partnership.

The information returns must include prescribed information and be in a form approved by the minister.

Information summary

11.7(5)     A corporation or partnership that issues an information return under subsection (4) for a taxation year must provide to the minister responsible for The Mines and Minerals Act, within 90 days after the end of the year and in a form approved by that minister, a summary of the information provided in those returns, together with any other information that minister requires

(a) to determine whether the expenditures renounced by the corporation are flow-through mining expenditures; or

(b) to administer mineral exploration tax credits and evaluate their effectiveness.

Regulations

11.7(6)     The Lieutenant Governor in Council may make regulations

(a) respecting the acceptance of expenditures for the purposes of the mineral exploration tax credit;

(b) respecting returns of information under this section and the information to be included in those returns;

(c) respecting the maintenance of books and records, and the provision of information or access to information, for the purpose of verifying the validity of a claim for a mineral exploration tax credit;

(d) respecting any matter the Lieutenant Governor in Council considers necessary or advisable to carry out the purpose of this section.

S.M. 2002, c. 19, s. 37; S.M. 2009, c. 26, s. 32; S.M. 2011, c. 41, s. 29; S.M. 2012, c. 1, s. 39; S.M. 2014, c. 35, s. 46.

COMMUNITY ENTERPRISE DEVELOPMENT TAX CREDIT

Definitions

11.8(1)     In this section and sections 11.9 to 11.12,

"CED tax credit" for a taxation year means

(a) in relation to an eligible investment acquired by an individual or a qualifying trust for an individual, the amount of the individual's community enterprise development tax credit determined under subsection (2),

(b) in relation to an eligible investment acquired by an eligible corporation, the amount of the corporation's community enterprise development tax credit determined under subsection (2.1); (« crédit d'impôt pour l'expansion des entreprises dans les collectivités »)

"CED tax credit receipt" means a receipt, in a form authorized by the responsible minister, that contains prescribed information concerning an eligible investment issued to an eligible corporation, an individual or a qualifying trust for an individual; (« reçu relatif au crédit d'impôt pour l'expansion des entreprises dans les collectivités »)

"eligible investment" means an eligible investment as defined in the regulations; (« placement admissible »)

"individual" does not include

(a) a trust, or

(b) an individual acting in his or her capacity as an investment dealer under The Securities Act; (« particulier »)

"issuer" means a person, partnership or trust that issues an eligible investment to an eligible corporation, an individual or to a qualifying trust for an individual; (« émetteur »)

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

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

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

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

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

"responsible minister" means the minister appointed by the Lieutenant Governor in Council to administer sections 11.8 to 11.12. (« ministre responsable »)

Eligible corporation

11.8(1.1)   For the purpose of this section and sections 11.9 to 11.12, a corporation is an eligible corporation in relation to an investment if

(a) at the end of the taxation year in which it acquired the investment and at the time of acquiring the investment, the corporation has a permanent establishment in Manitoba; and

(b) at least 25% of the salary and wages paid by the corporation for the taxation year in which it acquired the investment are paid to individuals who are resident in Manitoba.

Tax credit — individual

11.8(2)     An individual's community enterprise development tax credit for a taxation year ending after 2013 is the lesser of $27,000 and the total of the following amounts:

(a) the lesser of $9,000 and 30% of the total of all amounts each of which is the cost to the individual, or to a qualifying trust for the individual, of an eligible investment acquired in the year and before June 12, 2014, by the individual or the qualifying trust;

(b) 45% of the total of all amounts each of which is the cost to the individual, or to a qualifying trust for the individual, of an eligible investment acquired in the year after June 11, 2014, and before 2021 by the individual or the qualifying trust;

(c) the amount, if any, by which

(i) the total of all amounts each of which is the amount determined under clause (a) for one of those preceding years,

exceeds

(ii) the total of all amounts each of which is the amount that would be determined under Rule 7 of subsection 4(1) for one of those preceding years if the individual's CED tax credit for that preceding year were nil.

Tax credit — eligible corporation

11.8(2.1)   An eligible corporation's community enterprise development tax credit for a taxation year is the lesser of $27,000 and 45% of the total of all amounts each of which is the cost to the corporation of an eligible investment acquired by it in the year and before 2021.

Refundable tax credit

11.8(2.2)   A taxpayer is deemed to have paid on the taxpayer's balance due day for a taxation year, on account of the tax payable by the taxpayer for that taxation year, such amount as is claimed by the taxpayer not exceeding

(a) in the case of an individual, the amount determined under clause (2)(b) for the year; and

(b) in the case of an eligible corporation, its CED tax credit determined under subsection (2.1) for the year.

Non-refundable tax credit

11.8(2.3)   An individual's non-refundable CED tax credit for a taxation year ending after 2013 is the amount, if any, by which individual's CED tax credit for the year exceeds the individual's refundable tax credit determined under subsection (2.2) for the year.

Interpretation

11.8(3)     For the purpose of subsections (2) and (2.1), if a person irrevocably subscribes and pays for an eligible investment before acquiring it, the person is deemed to have acquired it when it was irrevocably subscribed and paid for.

Issuer must provide receipt to individual

11.8(4)     The issuer of an eligible investment to an individual or to a qualifying trust for an individual must provide a CED tax credit receipt to the individual no later than the 60th day after the end of the year in which the investment was acquired by the individual or trust.

Issuer must provide receipt to eligible corporation

11.8(4.1)   The issuer of an eligible investment issued after 2014 to an eligible corporation must provide a CED tax credit receipt to the corporation within 60 days after the day the investment was acquired by the corporation.

Proof of credit

11.8(5)     A taxpayer is not entitled to a credit under this section unless the amount for which the credit is claimed is proven by filing a CED tax credit receipt with the Minister of National Revenue.

S.M. 2003, c. 4, s. 52; S.M. 2004, c. 43, s. 57; S.M. 2005, c. 40, s. 41; S.M. 2008, c. 3, s. 39; S.M. 2009, c. 26, s. 33; S.M. 2011, c. 41, s. 30; S.M. 2014, c. 35, s. 47.

Use of eligible investment proceeds

11.9(1)     The issuer of an eligible investment must use or invest the proceeds of the issuance in accordance with the regulations.

Minister may assess penalty

11.9(2)     If satisfied that the issuer has not used or invested the proceeds in accordance with the regulations, the responsible minister may, by written order, require the issuer to pay to the Minister of Finance for Manitoba a penalty not exceeding

(a) if the investment was issued before June 12, 2014, 30% of the proceeds that were not used or invested as required; and

(b) if the investment was issued after June 11, 2014, 45% of the proceeds that were not used or invested as required.

S.M. 2003, c. 4, s. 52; S.M. 2014, c. 35, s. 48.

Restriction on transfers

11.10       An eligible investment may not be transferred except as permitted by the regulations.

S.M. 2003, c. 4, s. 52.

Recovery of credit on early redemption

11.11(1)    If an eligible investment is redeemed in circumstances described in subsection (2), the person who was the shareholder immediately before the redemption (referred to in this section as the "vendor") must pay a tax equal to the lesser of

(a) the CED tax credit of an individual or an eligible corporation in respect of the acquisition of the investment; and

(b) the amount that would, but for subsection (4), be payable to the vendor on the redemption.

Application of subsection (1)

11.11(2)    Subsection (1) applies when an eligible investment in respect of which a CED tax credit receipt was issued is redeemed less than three years after it was acquired, unless

(a) no CED tax credit has been claimed in respect of the eligible investment, and the CED tax credit receipt for the investment has been returned to the issuer; or

(b) the redemption occurs at the written request of the vendor and

(i) the investment devolved on the vendor as a consequence of the death of the individual who held the investment, whose TFSA held the share, or who was the annuitant under a registered retirement savings plan or registered retirement income fund that held the investment, or

(ii) the corporation is notified in writing that the individual to whom the CED tax credit receipt was issued in respect of the investment became disabled and permanently unfit for work, or terminally ill, after the investment was acquired, and the vendor is

(A) that individual, or his or her current or former spouse or common-law partner,

(B) a registered retirement savings plan or registered retirement income fund under which the individual, spouse or common-law partner is the annuitant, or

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

Withholding and remittance of tax

11.11(3)    Where tax is payable under subsection (1) in respect of the redemption, acquisition or cancellation of an eligible investment by the issuer within three years after it was issued, the issuer must

(a) withhold the amount of the tax from the amount otherwise payable to the vendor;

(b) issue to the vendor a receipt showing the amount of tax withheld;

(c) within 30 days after the transaction, remit the withheld amount to the Minister of Finance for Manitoba on behalf of the vendor; and

(d) submit with the remitted amount a statement, in a form authorized by the responsible minister, containing prescribed information.

Liability for tax

11.11(4)    An issuer who fails to withhold and remit an amount as required by subsection (3) is liable to pay the amount to the Minister of Finance for Manitoba on behalf of the vendor, and is entitled to recover the amount so paid from the vendor.

Interpretation of "redeemed"

11.11(5)    For the purpose of this section, an eligible investment is redeemed when it is redeemed, acquired or cancelled by the issuer of the investment or is acquired by a person who does not deal with the issuer at arm's length.

S.M. 2003, c. 4, s. 52; S.M. 2009, c. 26, s. 34; S.M. 2014, c. 35, s. 48.

Regulations

11.12(1)    The Lieutenant Governor in Council may make regulations

(a) defining "eligible investment" and any other term used but not defined in sections 11.8 to 11.11;

(b) respecting the use or investment of the proceeds of issuing eligible investments;

(c) establishing recordkeeping and reporting requirements for issuers;

(d) prescribing information to be included on receipts to be issued to investors;

(e) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the proper administration of the CED tax credit.

Administration and enforcement

11.12(2)    For the purpose of administering and enforcing sections 11.8 to 11.11, the responsible minister and any person authorized for the purpose by him or her has all the powers conferred by this Act on the Minister of Finance for Manitoba or the Minister of National Revenue in relation to the administration or enforcement of any other provision of this Act.

Delegation

11.12(3)    The responsible minister may delegate to one or more persons employed in the government any power conferred or duty imposed on the responsible minister under this section or sections 11.8 to 11.11, or under the regulations made under this section.

S.M. 2003, c. 4, s. 52.

SMALL BUSINESS VENTURE CAPITAL TAX CREDIT

Definitions

11.13(1)    The following definitions apply in this section and sections 11.14 to 11.17.

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

"eligible investment" means an eligible investment as defined in the regulations. (« placement admissible »)

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

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

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

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

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

Appointment of administrator

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

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

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

as the administrator.

Responsibility of administrator

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

Powers of administration and enforcement

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

Deduction from tax otherwise payable

11.13(2)    An eligible investor may deduct (under Rule 7 of subsection 4(1), in the case of an individual) from the tax otherwise payable by the investor for a taxation year the amount of the investor's SBVC tax credit for the year.

SBVC tax credit

11.13(3)    An eligible investor's small business venture capital tax credit for a taxation year ending after June 11, 2014, is the lesser of $67,500 and the total of the following amounts:

(a) the lesser of $135,000 and 30% of the total of all amounts each of which is

(i) the cost to the investor of an eligible investment issued to the investor in the taxation year and before June 12, 2014, or

(ii) the investor's share, as determined under the regulations, of the cost to a flow-through investment vehicle of an eligible investment issued to it in the investor's taxation year and before June 12, 2014;

(b) the lesser of $202,500 and 45% of the total of all amounts each of which is

(i) the cost to the investor of an eligible investment issued to the investor in the taxation year, after June 11, 2014, and before 2017, or

(ii) the investor's share, as determined under the regulations, of the cost to a flow-through investment vehicle of an eligible investment issued to it in the investor's taxation year, after June 11, 2014, and before 2017;

(c) the amount, if any, by which

(i) the total of all amounts each of which is the amount determined under clause (a) for any of the 10 immediately preceding taxation years or the amount determined under clause (b) for any of the 10 immediately preceding taxation years or the 3 immediately following taxation years,

exceeds

(ii) the total of all amounts each of which is,

(A) if the investor is an individual, the amount that would be determined under Rule 7 of subsection 4(1) for any of those preceding or following taxation years if the individual's tax credit under this section for that year were nil, or $67,500, whichever is less, or

(B) if the investor is a corporation, the total of all amounts each of which is the amount that would be the corporation's tax payable for any of those preceding or following taxation years if the corporation's tax credit under this section for that year were nil, or $67,500, whichever is less.

The references in paragraphs (c)(ii)(A) and (B) to "$67,500" are to be read as "$45,000" in relation to each preceding taxation year that ended before June 12, 2014.

Interpretation

11.13(4)    For the purpose of subsection (3),

(a) if the eligible investor irrevocably subscribed and paid for an eligible investment before acquiring it, the acquisition of it is deemed to have occurred when it was irrevocably subscribed and paid for; and

(b) the cost to an individual of an eligible investment that also qualifies as an eligible investment of the individual under section 11.8 is the amount, if any, by which the cost otherwise determined exceeds

(i) $30,000 if the investment was acquired before June 12, 2014, or

(ii) $60,000 if the investment was acquired after June 11, 2014.

11.13(5)    [Repealed] S.M. 2010, c. 29, s. 29.

Proof of credit

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

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

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

S.M. 2007, c. 6, s. 44; S.M. 2008, c. 3, s. 40; S.M. 2009, c. 26, s. 35; S.M. 2010, c. 29, s. 29; S.M. 2013, c. 55, s. 30; S.M. 2014, c. 35, s. 49.

Use of eligible investment proceeds

11.14(1)    The issuer of an eligible investment must use or invest the proceeds of the issuance in accordance with the regulations.

Administrator may assess penalty

11.14(2)    If satisfied that the issuer has not used or invested the proceeds in accordance with the regulations, the administrator may, by written order, require the issuer to pay to the Minister of Finance for Manitoba a penalty not exceeding

(a) if the investment was issued before June 12, 2014, 30% of the proceeds that were not used or invested as required; and

(b) if the investment was issued after June 11, 2014, 45% of the proceeds that were not used or invested as required.

S.M. 2007, c. 6, s. 44; S.M. 2010, c. 29, s. 30; S.M. 2014, c. 35, s. 50.

Restriction on transfers

11.15       An eligible investment must not be transferred except as permitted by the regulations.

S.M. 2007, c. 6, s. 44.

Recovery of credit on early redemption or return of capital

11.16(1)    Subject to subsection (2) and the regulations, if, within three years after the day that an eligible investment is issued, the investment is redeemed or an amount is paid to its holder as a return of capital, the person who held the investment immediately before the redemption or payment (referred to in this section as the "holder") must pay a tax equal to the lesser of

(a) 45% (or 30%, if the investment was issued before June 12, 2014) of the amount of the consideration for which the investment was issued; and

(b) the amount that would, but for subsection (3), be payable to the holder on the redemption or as a return of capital.

Exceptions

11.16(2)    Subsection (1) does not apply

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

(b) to a redemption of an investment if it occurs at the written request of the holder and the investment devolved on the holder as a consequence of the death of an individual who held the investment.

Withholding and remittance of tax

11.16(3)    If tax is payable under subsection (1) in respect of an eligible investment, the issuer of the investment must

(a) withhold the amount of the tax from the amount otherwise payable to the holder;

(b) issue to the holder a receipt showing the amount of tax withheld;

(c) within 30 days after the transaction, remit the withheld amount to the Minister of Finance for Manitoba on behalf of the holder; and

(d) submit with the remitted amount a statement containing prescribed information.

Liability for tax

11.16(4)    If the issuer fails to withhold and remit an amount as required by subsection (3), the issuer is liable to pay the amount to the Minister of Finance for Manitoba on behalf of the holder, and is entitled to recover the amount so paid from the holder.

Interpretation

11.16(5)    For the purpose of this section,

(a) a share in the capital stock of a corporation is redeemed when it is redeemed, acquired or cancelled by the corporation or is acquired by a person who does not deal with the corporation at arm's length; and

(b) if a share in the capital stock of a corporation is converted into another share in the capital stock of the corporation, the other share is deemed to be the same share as, and to have been issued at the same time as, the original share.

S.M. 2007, c. 6, s. 44; S.M. 2010, c. 29, s. 31; S.M. 2014, c. 35, s. 51.

Regulations

11.17(1)    The Lieutenant Governor in Council may make regulations

(a) defining "eligible investment" and any other term used in sections 11.13 to 11.16 but not defined;

(a.1) prescribing requirements respecting eligible investors;

(b) respecting the use of the proceeds of issuing eligible investments;

(c) establishing recordkeeping and reporting requirements for issuers of eligible investments;

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

(e) prescribing circumstances in which eligible investments may be transferred;

(f) imposing a tax or penalty on the issuer of an eligible investment in circumstances where

(i) the issuer fails to comply with any requirement prescribed under this section,

(ii) the issuer allows the investment to be transferred contrary to section 11.15, or

(iii) the investment ceases to be an eligible investment within three years after the day it was issued;

(g) respecting subsection 11.16(1) (recovery of credit), including regulations that

(i) exempt transactions from that subsection, or

(ii) reduce the amount otherwise payable under that subsection;

(h) enabling eligible investors to earn SBVC tax credits in respect of an eligible investment acquired by a flow-through investment vehicle, such as a partnership or trust, to which they have contributed the capital required for the investment, including regulations that

(i) establish recordkeeping and reporting requirements for such investment vehicles,

(ii) extend the application of sections 11.15 and 11.16, with necessary changes, to investments in such investment vehicles, and

(iii) impose a tax or penalty on a flow-through investment vehicle or its investors for any failure to comply with section 11.15 or 11.16 or any regulation made under this section;

(i) modifying, extending or limiting the application of sections 11.13 to 11.16 to a corporation and its shareholders in the event of a reorganization, merger or amalgamation or a plan of arrangement under The Corporations Act;

(j) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the proper administration of the SBVC tax credit.

11.17(2) and (3) [Repealed] S.M. 2010, c. 29, s. 32.

S.M. 2007, c. 6, s. 44; S.M. 2010, c. 29, s. 32.

EMPLOYEE SHARE PURCHASE TAX CREDIT

Purposes of employee share purchase tax credit

11.18       The purposes of the employee share purchase tax credit provided for in section 11.20 are

(a) to assist and facilitate succession planning for family businesses in Manitoba;

(b) to assist and facilitate employee buyouts and takeovers designed to create or maintain employment in Manitoba;

(c) to foster the growth of worker cooperatives in Manitoba; and

(d) to facilitate and promote employee participation in business successes in Manitoba.

S.M. 2014, c. 35, s. 52.

Definitions

11.19(1)    The following definitions apply in this section and sections 11.20 and 11.21.

"administrator" means the minister appointed by the Lieutenant Governor in Council to administer section 11.21 or a person designated by that minister as the administrator. (« administrateur »)

"affiliate" of a corporation means a person or partnership that is related to or affiliated with the corporation under section 251 or 251.1 of the federal Act, but does not include a person or partnership that, upon application by the corporation, is declared by the administrator not to be an affiliate of the corporation. (« affiliée »)

"eligible corporation" means

(a) a corporation authorized to issue shares that qualify for a CED tax credit under section 11.8 or the SBVC tax credit under section 11.13;

(b) a corporation that meets the requirements set out in subsection (2); and

(c) an ESOP holding corporation. (« corporation admissible »)

"eligible individual", in relation to a share issued under a registered ESOP, means an individual, other than a trust, who

(a) is resident in Manitoba at the end of the taxation year in which the share was issued; and

(b) did not acquire the share in his or her capacity as a dealer under The Securities Act. (« particulier admissible »)

"eligible share" means a share issued under a registered ESOP by an eligible corporation to

(a) an individual who, at the time of acquiring the share, is resident in Manitoba and is an employee in relation to the issuer; or

(b) a qualifying trust for such an individual. (« action admissible »)

"employee", in relation to an issuer, means an individual who is an employee, director or officer of

(a) the issuer;

(b) an affiliate of the issuer; or

(c) an employer in relation to whom the issuer is a corporation described in clause (c) of the definition "eligible corporation". (« employé »)

"ESOP holding corporation" means a corporation organized and operated primarily for the purposes of issuing shares under a registered ESOP to employees of

(a) a corporation described in clause (a) or (b) of the definition "eligible corporation"; or

(b) one or more affiliates of such a corporation;

and, in accordance with that ESOP, acquiring, holding and otherwise dealing with shares of those employers. (« corporation de portefeuille RADE »)

"issuer" means a corporation that issues shares under a registered ESOP. (« émetteur »)

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

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

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

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

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

"registered ESOP" means an employee share ownership plan that is registered under section 11.21. (« RADE enregistré »)

Requirements for "eligible corporation"

11.19(2)    For the purpose of clause (b) of the definition "eligible corporation" in subsection (1), a corporation is an eligible corporation in relation to an employee share ownership plan if all of the following requirements are satisfied at the time that an application is made for the registration of the plan:

CCPC with permanent establishment in Manitoba

1.

The corporation is a Canadian-controlled private corporation other than

(a) a financial institution as defined in subsection (3); and

(b) a prescribed venture capital corporation under Part LXVII of the federal regulations;

and has a permanent establishment in Manitoba.

Assets used in active business

2.

All or substantially all of the carrying value of the assets of the corporation is attributable to one or more of the following:

(a) assets used principally in an active business carried on by the corporation or by one or more affiliates of the corporation;

(b) shares or indebtedness of, or partnership or beneficial interests in, one or more affiliates of the corporation all or substantially all of the carrying value of the assets of each of which is attributable to assets described in clause (a) or this clause.

Revenue from active business

3.

The revenue of the corporation and its affiliates (determined on a combined and consolidated basis where applicable) for the immediately preceding fiscal period was derived principally from one or more active businesses and not principally from property, prescribed activities or any combination of them.

Small business

4.

The total carrying value of the assets of the corporation and its affiliates, determined as at the beginning of the fiscal period on a combined and consolidated basis in accordance with generally accepted accounting principles,

(a) is not more than $25,000,000; and

(b) does not exceed the total indebtedness of the corporation and its affiliates (determined in a similar manner) by more than $10,000,000.

Manitoba employees

5.

At least 25% of the total wages and salaries paid or payable by the corporation

(a) for its immediately preceding fiscal period; or

(b) before the day the application is made, if the corporation's first fiscal period has not ended before that day;

was paid to employees who are resident in Manitoba.

Financial institution

11.19(3) For the purpose of subsection (2), "financial institution" means

(a) a corporation

(i) that carries on business as a bank, credit union or caisse populaire,

(ii) that provides services as a trustee to the public,

(iii) that carries on the business of insurance,

(iv) that carries on business as a trader or dealer in securities,

(v) whose principal business is the business of lending money, cashing cheques, purchasing and collecting or selling debt obligations, discounting tax refunds or rebates, or any combination of these activities, or

(vi) that derives more than 50% of its revenue from any combination of the businesses referred to in subclauses (i) to (v); and

(b) an affiliate of a corporation described in clause (a).

S.M. 2014, c. 35, s. 52.

Employee share purchase tax credit

11.20(1)    Subject to subsections (6) and (7), an eligible individual's employee share purchase tax credit for a taxation year is the total of the following amounts:

(a) the lesser of $202,500 and 45% of the cost to the individual, or to a qualifying trust for the individual, of the eligible shares issued in the year to the individual or trust under a registered ESOP established and registered for one or more of the following purposes:

(i) to facilitate succession planning for a family business in Manitoba,

(ii) to facilitate an employee buyout or takeover designed to create or maintain employment in Manitoba;

(b) the lesser of $27,000 and 45% of the cost to the individual, or to a qualifying trust for the individual, of the eligible shares issued in the year to the individual or trust under any other registered ESOP.

Interpretation — time of issuance

11.20(2)    For the purpose of subsection (1), a share that is issued to an individual or a qualifying trust for an individual is deemed to have been issued when it was irrevocably subscribed and paid for by the individual or the trust.

Refundable tax credit

11.20(3)    An eligible individual's refundable employee share purchase tax credit for a taxation year is equal to the lesser of $27,000 and the amount determined under subsection (1) for the year.

Non-refundable tax credit

11.20(4)    An eligible individual's non-refundable employee share purchase tax credit for a taxation year is such amount as the individual claims, but not exceeding the least of the following amounts:

(a) the amount by which $67,500 exceeds the individual's refundable employee share purchase tax credit for the year under subsection (3);

(b) the total of

(i) the amount, if any, by which

(A) the individual's employee share purchase tax credit for the year under subsection (1),

exceeds

(B) the individual's refundable employee share purchase tax credit for the year under subsection (3), and

(ii) the individual's unused employee share purchase tax credit for that year as determined under subsection (5);

(c) the amount, if any, that would be determined by Rule 7 of subsection 4(1) if it were read without reference to subclause (g)(iii).

Unused credit from other years

11.20(5)    An eligible individual's unused employee share purchase tax credit for a taxation year beginning after 2013 is the amount, if any, by which

(a) the total of all amounts each of which is the individual's employee share purchase tax credit under subsection (1) for any of the 10 immediately preceding taxation years or the 3 immediately following taxation years;

exceeds the total of

(b) the total of all amounts each of which is the individual's refundable tax credit under subsection (3) for any of those preceding or following taxation years; and

(c) the total of all amounts each of which is the individual's non-refundable tax credit under subsection (4) for any of those preceding or following taxation years.

Reduction in current year's tax credit

11.20(6)    An eligible individual's tax credit otherwise determined under subsection (1) for a taxation year (the "current year") is to be reduced by an amount equal to the lesser of

(a) the amount of the tax credit determined under subsection (1) for the current year without reference to this subsection; and

(b) the total of all amounts each of which is the amount, if any, by which

(i) 45% of the greater of the following amounts in respect of an eligible share that was issued under that registered ESOP to the individual or a qualifying trust for the individual and, at the end of the current year, is owned by neither the individual nor a qualifying trust for the individual:

(A) the cost included in computing the individual's tax credit under this section for the current year or any previous taxation year, and

(B) all amounts that the individual or a qualifying trust for the individual received before the end of the current year, or became entitled before the end of the current year to receive, as a return of capital on the share, on a redemption or purchase for cancellation of the share by the issuer or as proceeds of a disposition of the share directly or indirectly to the issuer or an affiliate of the issuer,

exceeds

(ii) the total of all amounts each of which is the amount by which the individual's employee share purchase tax credit for a previous taxation year in respect of shares issued under that registered ESOP was reduced by this subsection.

Restriction re shares issued to RRSP

11.20(7)    For the purpose of subsection (1), an amount may be included in respect of eligible shares issued to a registered retirement savings plan only to the extent permitted by the regulations.

Issuer to issue tax credit receipt

11.20(8)    Within the first 60 days after the end of a calendar year in which an eligible share is issued to an individual or a qualifying trust for an individual, the issuer must issue a tax credit receipt to the individual setting out the following information in a form approved by the administrator:

(a) the name, address and Social Insurance Number of the individual;

(b) the tax certificate number assigned by the administrator;

(c) the name of the issuer;

(d) the total number of eligible shares issued to the individual or qualifying trust in that calendar year and the total cost to the individual or qualifying trust of those shares;

(e) the amount, if any, of the individual's tax credit under subsection (1), taking into account any reduction made under subsection (6);

(f) any other information required by the administrator.

Proof of credit

11.20(9)    An individual is entitled to a tax credit under this section for a taxation year only if the tax credit receipt issued by the issuer for the eligible shares acquired by the individual or a qualifying trust for the individual in the taxation year is

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

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

S.M. 2014, c. 35, s. 52.

Application for registration of ESOP

11.21(1)    A corporation that wishes to issue eligible shares must apply to the administrator, in a form approved by the administrator, for the registration of the corporation's employee share ownership plan. The corporation's application must include the following:

(a) a copy of its most recent annual financial statements;

(b) a copy of its most recent income tax return and the notice of assessment issued by the Canada Revenue Agency for the taxation year for which that return was filed;

(c) a copy of the terms and conditions that will apply to the shares to be issued, including any ownership restrictions affecting those shares;

(d) a copy of the plan;

(e) a statement specifying the period for which the plan is to be registered;

(f) a statement certifying that the corporation is an eligible corporation;

(g) a statement setting out the amount of equity capital to be raised under the plan;

(h) any other information, undertakings and documents stipulated by the application form;

(i) a statement, signed by an officer of the corporation, attesting to the completeness and accuracy of the information provided in the application and the accompanying documents.

Administrator may require additional information

11.21(2)    When reviewing an application for registration, the administrator may require the applicant to provide any additional information or documents that the administrator considers necessary

(a) to determine or verify the applicant's status as an eligible corporation; and

(b) to satisfy himself or herself that the purposes of the employee share ownership plan are consistent with the purposes of the employee share purchase tax credit.

Conditions for registration

11.21(3)    The administrator may register an employee share ownership plan only if

(a) the plan

(i) sets outs the minimum and maximum numbers of employees who will be eligible to acquire shares under the plan, or confirms that there is no such minimum or maximum number,

(ii) requires the issuer to issue to a participating employee, within 30 days after issuing shares to the employee, an investment confirmation that sets out

(A) the number of shares issued to the employee,

(B) the price per share,

(C) the total amount paid for those shares, and

(D) any additional information required by the administrator or by regulation,

(iii) sets out how and when, or how frequently, the value of the shares will be established,

(iv) sets out the proposed use of the share proceeds,

(v) does not allow for shares to be issued until they have been fully subscribed and paid for,

(vi) gives all eligible employees under the plan equal rights and opportunities to acquire shares under the plan, and

(vii) includes any other provisions required by the administrator or by regulation;

(b) the administrator is satisfied that the shares to be issued under the plan

(i) are shares of only one class, no shares of which will have been issued before the plan is registered,

(ii) may be issued only to

(A) individuals who are employees in relation to the issuer and are resident in Manitoba, or

(B) to qualifying trusts for such individuals,

(iii) do not have any rights, privileges or restrictions prohibited by the administrator or by regulation,

(iv) are common shares if the corporation is a worker cooperative or the purpose of the plan is to facilitate and promote employee participation in the corporation's business successes, and

(v) immediately after they are issued to an employee or a qualifying trust for an employee, will be registered in the name of the employee or the trustee of that trust; and

(c) the administrator is satisfied that

(i) the issuer is an eligible corporation,

(ii) the purposes of the plan are consistent with the purposes of employee share purchase tax credit as described in section 11.18,

(iii) the issuer is required under the plan to ensure, within 60 days after the end of each year during the term for which the plan is registered, a report setting out the matters described in clause (a), including a report of the number of shares issued in that year, the amount of equity raised in that year, and how the share proceeds have been or are being used, is given to each participating employee and to the administrator, and

(iv) the plan meets any other prescribed requirements.

Maximum equity capital to be raised

11.21(4)    The administrator may

(a) refuse to register a plan under which more than $10,000,000 of equity capital, or any greater amount allowed by the administrator, may be raised; or

(b) de-register a plan under which more than $10,000,000 of equity capital, or any greater amount allowed by the administrator, has been raised.

Amendment of ESOP requires employee approval

11.21(5)    A registered ESOP may not be amended without the approval of a majority of the participating employees.

Amendment to be registered

11.21(6)    If an amendment to a registered ESOP takes effect before the amendment is registered by the administrator, the registration of the registered ESOP is suspended from the moment the amendment takes effect until the amendment is registered. The administrator may refuse to register an amendment if, in the administrator's opinion, the plan as amended would not have qualified for registration.

Regulations

11.21(7)    The Lieutenant Governor in Council may make regulations

(a) prescribing activities for the purpose of subsection 11.19(2);

(b) establishing the extent to which the cost of shares issued to a registered retirement savings plan may be included in computing an individual's tax credit under subsection 11.20(1);

(c) respecting the reduction of a tax credit under subsection 11.20(6);

(d) for the purpose of subsection (3),

(i) specifying rights, privileges, restrictions or conditions that may be attached to a class of eligible shares or that are not to be attached to a class of eligible shares, and

(ii) prescribing additional conditions for the registration of an employee share ownership plan;

(e) prescribing duties and requirements for issuers and plan administrators in relation to employee share ownership plans that are or have been registered, including recordkeeping and reporting requirements;

(f) respecting the deregistration of a registered ESOP;

(g) prescribing what is to be included in, or excluded from, the cost of a share for the purpose of calculating an individual's tax credit under this section;

(h) respecting the recovery of an employee share purchase tax credit in the event that a share in relation to which it was obtained is redeemed, transferred or otherwise disposed of contrary to the regulations or the terms and conditions of the registered ESOP under which it was issued;

(i) respecting the recovery of an employee share purchase tax credit obtained on the issuance of an eligible share, by imposing a tax or penalty on the issuer or any other entity that benefited from the share proceeds, in the event that

(i) the share proceeds are not used for the purposes set out in the registered ESOP, or

(ii) the issuer or plan administrator fails to comply with the regulations or the terms and conditions of the ESOP;

(j) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the proper administration of the employee share purchase tax credit.

S.M. 2011, c. 41, s. 31; S.M. 2014, c. 35, s. 52.

12          [Repealed]

S.M. 2000, c. 39, s. 40.

FARMER'S AVERAGING PROVISION

Tax payable on averaging

13(1)        Where an individual whose chief source of income has been farming or fishing during a taxation year (in this section referred to as the "year of averaging") has filed an election in accordance with subsection 119(1) of the federal Act for the year of averaging, the tax payable under this Part for the year of averaging is an amount determined by the following rules:

(a) Determine the amount (in this section referred to as the "average tax") for each year in the averaging period (which, in this section, has the meaning given to that expression under section 119 of the federal Act) equal to the tax that would be payable under the federal Act, within the meaning of section 4 of this Act, if the taxable income for the year were the average net income for the year within the meaning of paragraph 119(1)(c) of the federal Act.

(b) Determine the amount (in this section referred to as the "provincial tax") for each year in the averaging period equal to the tax that would be payable under this Part for the year if the tax that would be payable under the federal Act for the year, within the meaning of section 4 of this Act, were the average tax for the year.

(c) Deduct from the aggregate of the provincial taxes as determined under clause (b) for the years in the averaging period the aggregate of the taxes payable under this Part for the preceding years (which, in this section, has the meaning given to that expression under section 119 of the federal Act).

(d) The remainder obtained under clause (c) is the tax payable under this Part for the year of averaging.

Application of subsection (1)

13(2)       Subsection (1) applies only in the case of an individual whose chief source of income throughout the averaging period was from farming or fishing.

Farmer averaging under federal Act

13(3)       For the purposes of this Act, where the tax payable by an individual under this Part for the year of averaging would, except for subsection (2), be an amount determined under subsection (1), the tax that would have been payable by the individual under the federal Act for the year of averaging, within the meaning of section 4 of this Act, had no election been made by him under section 119 of the federal Act for that year, shall be deemed to be the tax payable under the federal Act by the individual for the year of averaging.

Overpayment on averaging

13(4)       Where this section, except subsection (3) thereof, is applicable to the computation of a taxpayer's tax for a taxation year and the aggregate of the taxes payable under this Part for the preceding years exceeds the aggregate of the provincial taxes as determined under clause (1)(b) for the years in the averaging period, the excess shall be deemed to be an overpayment made when the notice of assessment for the year of averaging was mailed.

Application of Part I in case of averaging

13(5)       The provisions of this Part relating to the assessment of tax, interest, and penalties apply with such modifications as the circumstances require to an assessment whereby, for the purposes of this section, it is determined by the treasurer that no tax is payable under this Part for the year of averaging or that an overpayment has been made as described in subsection (4).

Revoking election to average

13(6)       Where an election for a year of averaging filed under subsection 119(1) of the federal Act has been revoked by the taxpayer in accordance with subsection 119(5) of the federal Act, subsection (1) of this section is not applicable in determining the tax payable under this Part for the year of averaging.

DIVISION IV

RETURNS, ASSESSMENTS AND OBJECTIONS, PAYMENTS AND REFUNDS

RETURNS

Application of federal provisions (returns, estimate of tax, assessment and withholding)

14(1)       Subsection 70(7) (other than paragraph (b) of that subsection), sections 150, 150.1 and 151 and subsections 152(1), (1.11), (1.12), (2), (3), (3.1) and (4) to (8) and 156.1(4) of the federal Act and, subject to any regulations made under subsection(2), subsections 153(1) to (3) of the federal Act apply for the purposes of this Act.

Regulations re withholding

14(2)       The Lieutenant Governor in Council may make regulations respecting the determination of amounts to be withheld or deducted under subsection 153(1) of the federal Act as it applies for the purposes of this Act.

S.M. 1989-90, c. 15, s. 18; S.M. 1993, c. 46, s. 43; S.M. 2000, c. 39, s. 41.

Reassessment

15(1)       Where a collection agreement is in effect, notwithstanding that the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, if the tax payable under Part I of the federal Act by the taxpayer for the year is re-assessed, the treasurer shall reassess or make additional assessments or assess tax, interest or penalties, as the circumstances require.

15(2)       [Repealed] S.M. 2000, c. 39, s. 42.

S.M. 1989-90, c. 15, s. 18; S.M. 1993, c. 46, s. 44; S.M. 2000, c. 39, s. 42.

16 and 17   

[Repealed]

S.M. 1989-90, c. 15, s. 19.

PAYMENT OF TAX

Instalment payable by farmer or fisher

18(1)       Subject to section 20, an individual whose chief source of income is farming or fishing shall pay to the treasurer, in respect of each taxation year and on or before December 31 of the year, 2/3 of

(a) the amount estimated by the individual under section 151 of the federal Act, as it applies for the purposes of this Act, to be his or her tax payable under this Act for the year; or

(b) the individual's tax payable under this Act for the immediately preceding year.

Provincial instalment linked to federal instalment

18(2)       If there is a collection agreement in effect, an individual's payment under subsection (1) for a taxation year must be made on the basis of

(a) clause (1)(a), if the individual's payment for the year under subsection 155(1) of the federal Act is made on the basis of paragraph (a) of that subsection; or

(b) clause (1)(b), if the individual's payment for the year under subsection 155(1) of the federal Act is made on the basis of paragraph (b) of that subsection.

S.M. 1989-90, c. 15, s. 20; S.M. 1993, c. 46, s. 45; S.M. 2000, c. 39, s. 43.

Instalments payable by others

19(1)       Subject to section 20, an individual to whom section 18 does not apply shall pay to the treasurer, in respect of each taxation year

(a) on or before March 15, June 15, September 15 and December 15 in the year, 1/4 of

(i) the amount estimated by the individual under section 151 of the federal Act, as it applies for the purposes of this Act, to be his or her tax payable under this Act for the year, or

(ii) the individual's tax payable under this Act for the immediately preceding year; or

(b) on or before

(i) March 15 and June 15 in the year, 1/4 of the individual's tax payable under this Act for the second preceding year, and

(ii) September 15 and December 15 in the year, 1/2 of the amount, if any, by which the individual's tax payable for the immediately preceding year exceeds 1/2 of his or her tax payable under this Act for the second preceding year.

Provincial instalments linked to federal instalments

19(2)       If there is a collection agreement in effect, an individual's payments under subsection (1) for a taxation year must be made on the basis of

(a) subclause (1)(a)(i), if the individual's payments for the year under subsection 156(1) of the federal Act are made on the basis of subparagraph (a)(i) of that subsection; or

(b) subclause (1)(a)(ii), if the individual's payments for the year under subsection 156(1) of the federal Act are made on the basis of subparagraph (a)(ii) of that subsection; or

(c) clause (1)(b), if the individual's payments for the year under subsection 156(1) of the federal Act are made on the basis of paragraph (b) of that subsection.

S.M. 1989-90, c. 15, s. 21; S.M. 1993, c. 46, s. 46; S.M. 2000, c. 39, s. 43.

Where instalments not required

20          No amount is payable by an individual under section 18 or 19 for a taxation year if he or she is not required to pay an instalment under section 155 or 156 of the federal Act for the year because of subsection 156.1(2) or (3) of that Act.

S.M. 1993, c. 46, s. 47; S.M. 2000, c. 39, s. 43.

Application of federal provision (payments by corporations)

21(1)       Subsections 157(1), (2), (2.1) and (4) of the federal Act apply for the purposes of this Act.

Payments where collection agreement in effect

21(2)       Where a collection agreement is in effect, a corporation that pays amounts in respect of a taxation year computed under subparagraph 157(1)(a)(i), (ii) or (iii) of the federal Act and that is required to make payments under subsection 157(1) of the federal Act as it applies for the purposes of this Act shall pay amounts in respect of the year computed under the same subparagraph as it applies for the purposes of this Act.

21(3) to (6)  [Repealed] S.M. 1989-90, c. 15, s. 22.

S.M. 1989-90, c. 15, s. 22.

Application of federal provisions (returns, payments and interest)

22          Subsections 70(2) and 104(2), paragraph 104(23)(e), sections 158 to 160, subsections 160.1(1), (1.1), (3) and (4), sections 160.2 and 160.3 and subsections 161(1) to (2.2), (4) to (6), (7), (9) and (11) of the federal Act apply for the purposes of this Act.

S.M. 1989-90, c. 15, s. 23; S.M. 1993, c. 46, s. 48; S.M. 2000, c. 39, s. 44.

Interest on instalments

23          Despite subsections 161(4) and (4.01) of the federal Act, in calculating the interest payable by a taxpayer under subsection 161(2) of the federal Act as it applies for the purposes of this Act, the amount of the part or instalment on which interest is payable must be computed with reference to the paragraph of subsection 161(4) or (4.01) of the federal Act that applies in computing the amount of the part or instalment on which interest is payable under that Act.

S.M. 1989-90, c. 15, s. 23; S.M. 2000, c. 39, s. 44.

24          [Repealed]

S.M. 1989-90, c. 15, s. 23.

PENALTIES

Penalty for failure to file return

25(1)       Subsections 162(1) to (3), (5), (7) and (11) of the federal Act apply for the purposes of this Act.

25(2) and (3)  [Repealed] S.M. 2000, c. 39, s. 45.

Collection agreement

25(4)       Where a collection agreement is in effect, the minister may refrain from levying or may reduce a penalty provided for in this section if the person who is liable to the penalty is required to pay a penalty under section 162 of the federal Act in respect of the same failure.

S.M. 1989-90, c. 15, s. 24; S.M. 1993, c. 46, s. 49; S.M. 2000, c. 39, s. 45.

"Return"

26(1)       For the purposes of this section, "return" means a return under section 150 of the federal Act as it applies for the purposes of this Act and includes a form, certificate, statement, answer or other document that is filed as part of, or with respect to, a return.

Repeated failures

26(2)       Subsection 163(1), the part of subsection 163(2) before paragraph (b), and subsections 163(2.1), (3) and (4) of the federal Act apply for the purposes of this Act.

26(3)       [Repealed] S.M. 2000, c. 39, s. 46.

Collection agreement

26(4)       Where a collection agreement is in effect, the minister may refrain from levying or may reduce a penalty provided for in this section if the person who is liable to the penalty is required to pay a penalty under section 163 of the federal Act in respect of the same failure or the same false statement or omission, as the case may be.

S.M. 1989-90, c. 15, s. 24; S.M. 1993, c. 46, s. 49; S.M. 2000, c. 39, s. 46.

Late or deficient instalments

27          Section 163.1 of the federal Act applies for the purposes of this Act.

S.M. 1989-90, c. 15, s. 24; S.M. 1993, c. 46, s. 49.

Misrepresentation in tax planning arrangements

27.1(1)     Section 163.2 of the federal Act applies for the purposes of this Act.

Limitation

27.1(2)     Subsection (1) applies to a misrepresentation made before the day the Act that enacted this section received royal assent only if section 163.2 of the federal Act applies to the misrepresentation for the purposes of that Act.

S.M. 2001, c. 41, s. 30.

REFUND OF OVERPAYMENT

28          [Repealed]

S.M. 1988-89, c. 13, s. 17; S.M. 1989-90, c. 15, s. 25; S.M. 2000, c. 39, s. 47.

Application of federal provisions (refunds)

28.1(1)     Subsections 164(1) to (1.31), (1.5), (2.01) and (3) to (7) of the federal Act apply for the purposes of this Act.

Application of refund to provincial debt

28.1(2)     Instead of making a refund or repayment that might otherwise be made under this Act, the minister may, if the taxpayer is, or is about to become, liable to make any payment to Her Majesty in right of Manitoba or in right of Canada, apply the amount of the refund or repayment to that other liability and notify the taxpayer of that action.

S.M. 1989-90, c. 15, s. 26; S.M. 1993, c. 46, s. 50; S.M. 2000, c. 39, s. 48; S.M. 2013, c. 55, s. 31.

OBJECTIONS TO ASSESSMENTS

Application of federal provisions (objections)

29(1)       Sections 165, 166.1 and 166.2 of the federal Act apply for the purposes of this Act.

29(2)       [Repealed] S.M. 2000, c. 39, s. 49.

S.M. 1989-90, c. 15, s. 27; S.M. 1993, c. 46, s. 51; S.M. 2000, c. 39, s. 49.

DIVISION V

APPEALS TO THE COURT OF QUEEN'S BENCH

Right of appeal

30(1)       Section 169 of the federal Act applies for the purposes of this Act.

Matters that can be appealed

30(2)       An appeal from an assessment under this Act may be taken in respect of any question relating,

(a) in the case of an individual, to the determination of

(i) his or her residence for the purposes of this Act,

(ii) his or her Manitoba income for the year, or

(iii) his or her tax payable under this Act for a taxation year;

(b) and in the case of a corporation to the determination of

(i) its taxable income earned in the year in Manitoba as defined in subsection 7(5), or

(ii) the amount of tax payable for a taxation year based on the taxable income of the corporation for that year;

but no appeal from an assessment lies in respect of the computation of taxable income.

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.

30(4)       [Repealed] S.M. 2012, c. 1, s. 40.

Contents of notice

30(5)       The taxpayer appealing shall set out in the notice of appeal a statement of the allegations of fact, the statutory provisions and the reasons that he intends to submit in support of his appeal.

Fee on appeal

30(6)       The taxpayer appealing shall, upon filing the notice of appeal in the court office, pay to the Registrar or deputy registrar of the court a fee prescribed under The Law Fees and Probate Charge Act.

S.M. 1989-90, c. 15, s. 28; S.M. 1993, c. 46, s. 52; S.M. 1999, c. 11, s. 13; S.M. 2000, c. 39, s. 50; S.M. 2012, c. 1, s. 40.

Service of reply to appeal notice

31(1)       The treasurer shall, within 60 days from the day the notice of appeal is received, or within such further time as the court may either before or after the expiration of that time allow, serve on the appellant and file in the court a reply to the notice of appeal admitting or denying the facts alleged, and containing a statement of such further allegations of fact and of the statutory provisions and reasons upon which the treasurer intends to rely.

Striking out of notice of appeal

31(2)       The court may strike out a notice of appeal or any part thereof for failure to comply with subsection 30(5) and may permit an amendment to be made to a notice of appeal or a new notice of appeal to be substituted for the one struck out.

Reply

31(3)       The court may

(a) strike out any part of a reply for failure to comply with this section or permit the amendment of a reply; and

(b) strike out a reply for failure to comply with this section and order a new reply to be filed within a time to be fixed by the order.

Disposal of appeal where notice struck out

31(4)       Where a notice of appeal is struck out for failure to comply with subsection 30(5) and a new notice of appeal is not filed as and when permitted by the court, the court may dispose of the appeal by dismissing it.

Disposal of appeal where reply struck out

31(5)       Where a reply is not filed as required by this section or is struck out under this section and a new reply is not filed as ordered by the court within the time ordered, the court may dispose of the appeal ex parte or after a hearing, on the basis that the allegations of fact contained in the notice of appeal are true.

Appeal deemed an action

32(1)       Upon the filing of the material referred to in sections 30 and 31, the matter shall be deemed to be an action in the court and, unless the court otherwise orders, ready for hearing.

Pleading of other matters

32(2)       Any fact or statutory provision not set out in the notice of appeal or reply may be pleaded, or reference thereto may be made in such manner, and upon such terms, as the court may direct.

32(3) to (4)  [Repealed] S.M. 1989-90, c. 15, s. 29.

S.M. 1989-90, c. 15, s. 29.

Application of federal provisions (irregularities, extension of time and hearings in camera)

33          Sections 166, l67, 171 and 179 of the federal Act apply for the purposes of this Act.

S.M. 1989-90, c. 15, s. 30; S.M. 1993, c. 46, s. 53.

Practice respecting appeals

34          Except as provided in the regulations, the practice and procedure of the court and of The Court of Appeal, including the right of appeal and the practice and procedure relating to appeals, apply to every matter deemed to be an action under section 32; and every judgment and order given or made in every such action may be enforced in the same manner, and by the like process, as a judgment or order given or made in an action commenced in the court.

35          [Repealed]

S.M. 1989-90, c. 15, s. 31.

PART II

ADMINISTRATION AND ENFORCEMENT

ADMINISTRATION

Application of federal provisions (administration, garnishment and proceedings to collect)

36(1)       Sections 220, 221.1, 224, 225.1 and 225.2 of the federal Act apply for the purposes of this Act.

Application

36(2)       Subsection (1) is applicable with respect to amendments and enactments assented to or promulgated after 1989 and is deemed to have come into force on January 1, 1990.

S.M. 1989-90, c. 15, s. 32; S.M. 1993, c. 46, s. 54.

Remission of provincial portion of federal tax remitted

36.1        Where, under the Financial Administration Act (Canada), remission is granted of any tax, interest or penalty paid under the federal Act by or for an individual, and where any tax, interest or penalty was paid to that individual under this Act in respect of the same circumstances that gave rise to the remission granted under the Financial Administration Act (Canada), the treasurer may, if he or she considers that the circumstances are sufficiently similar and that a remission of any money paid under this Act should be granted either for the relief of extreme hardship or because the individual received incorrect advice from or inappropriate action was taken by the Canada Customs and Revenue Agency, grant remission of all or any part of any tax, interest or penalty paid under this Act in such circumstances, and may authorize the repayment to the person entitled thereto of any amount remitted by the treasurer in accordance with this section.

S.M. 1997, c. 49, s. 22; S.M. 2000, c. 39, s. 51.

Regulations

37(1)       For the purposes of carrying out the provisions of this Act according to their intent, the Lieutenant Governor in Council may make such regulations and orders as are ancillary thereto and are not inconsistent therewith; and every regulation or order made under, and in accordance with the authority granted by, this section has the force of law and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations and orders

(a) prescribing anything that, by this Act, is to be prescribed or is to be determined or regulated by regulation;

(b) providing in any case of doubt the circumstances in which, and the extent to which, the federal regulations apply;

(c) and (d) [repealed] S.M. 2000, c. 39, s. 52;

(e) defining words and expressions, not inconsistent with the provisions of this Act, for the proper administration of this Act and the regulations;

(f) prescribing forms for use under this Act;

(g) setting out the time and method of application for refunds;

(h) and (i) [repealed] S.M. 2000, c. 39, s. 52.

Application of federal regulations

37(2)       Except to the extent that they are inconsistent with any regulations made under subsection (1) or are expressed by any regulation made under subsection (1) to be inapplicable, the federal regulations made under subsection 221(1) of the federal Act apply, with such modifications as the circumstances require, for the purposes of this Act with respect to all matters enumerated in that section.

37(3) and (4)[Repealed] S.M. 2013, c. 39, Sch. A, s. 63.

Regulation may be retroactive

37(5)       A regulation made under this Act may be made retroactive to the extent the Lieutenant Governor in Council considers necessary to implement or give effect to

(a) a tax or administrative measure included in a budget presented to the Legislative Assembly; or

(b) an amendment to this Act.

Retroactive effect — federal regulations

37(6)       If a federal regulation that applies for the purposes of this Act is effective with respect to a period before it is published in the Canada Gazette, it is effective for the purposes of this Act with respect to the same period.

S.M. 2000, c. 39, s. 52; S.M. 2013, c. 39, Sch. A, s. 63.

ENFORCEMENT

Recovery of amount payable

38          Section 222 of the federal Act applies for the purposes of this Act.

S.M. 1993, c. 46, s. 55.

Certification of amount payable

39(1)       Subsections 223(1) to (4) of the federal Act, other than paragraphs  223(1)(b), (c) and (d), apply for the purposes of this Act with respect to any amount payable by a person under this Act that the Minister of National Revenue may not collect pursuant to a collection agreement.

Collection agreement

39(2)       Where a collection agreement is in effect, subsection (1) does not apply, but the minister may proceed under section 223 of the federal Act for the purpose of collecting any amount payable under this Act by a taxpayer.

S.M. 1989-90, c. 15, s. 33; S.M. 1993, c. 46, s. 55; S.M. 2000, c. 39, s. 53.

40          [Repealed]

S.M. 1989-90, c. 15, s. 34.

Acquisition of taxpayer's interest

41          Section 224.2 of the federal Act applies for the purposes of this Act.

S.M. 1993, c. 46, s. 56.

Payment of money seized from debtor

42          Section 224.3 of the federal Act applies for the purposes of this Act.

S.M. 2000, c. 39, s. 54.

Warrant for goods

43          The treasurer may issue a warrant directed to a sheriff, for the amount of the tax, interest, and penalty, or any of them, owing under this Act by a taxpayer, together with interest thereon from the date of the issue of the warrant and the costs, expenses, and poundage of the sheriff, and such warrant shall have the same force and effect and be subject to the same exemption as a writ of fieri facias issued out of the court.

S.M. 2000, c. 39, s. 55.

Seizure of chattels

44          Section 225 of the federal Act applies for the purposes of this Act.

S.M. 1989-90, c. 15, s. 35; S.M. 1993, c. 46, s. 57.

Taxpayer leaving Canada or defaulting

45(1)       Section 226 of the federal Act applies for the purposes of this Act.

45(2)       [Repealed] S.M. 2000, c. 39, s. 56.

S.M. 1989-90, c. 15, s. 36; S.M. 1993, c. 46, s. 57; S.M. 2000, c. 39, s. 56.

Application of federal provisions (withholding)

46(1)       Subsections 227(1) to (5.2), (8), (8.2) to (9), (9.2), (9.4), (9.5), (10) and (10.2) to (13) of the federal Act apply for the purposes of this Act.

Assessment

46(2)       The minister may assess a person

(a) for an amount that is deducted or withheld by the person under this Act or a regulation or under a provision of the federal Act or the federal regulations that applies for the purposes of this Act; and

(b) for an amount that is payable by the person under subsection 224(4) or (4.1) or section 227.1 of the federal Act, as they apply for the purposes of this Act, or under section 52 of this Act;

and, where the minister sends a notice of assessment to the person, sections 14 and 22 to 34 are applicable with such modifications as the circumstances require.

Application of penalty to amounts over $500

46(3)       Despite any other provision of this Act, other than subsection (4), and despite any other Act, the penalty for failure to remit an amount required to be remitted by a person on or before the day prescribed in the federal regulations made for the purposes of subsection 153(1) of the federal Act, as the regulations and that subsection apply for the purposes of this Act, shall apply only to the amount by which the total of all amounts so required to be remitted on or before that day exceeds $500.

Limitation on penalty not to apply

46(4)       Subsection (3) does not apply if the person required to remit an amount has, knowingly or under circumstances that amount to gross negligence,

(a) delayed in remitting the amount; or

(b) remitted an amount less than the amount required to be remitted.

S.M. 1989-90, c. 15, s. 37; S.M. 1993, c. 46, s. 57; S.M. 2000, c. 39, s. 57.

Liability of directors of corporation

47          Section 227.1 of the federal Act applies for the purposes of this Act.

S.M. 1989-90, c. 15, s. 38; S.M. 1993, c. 46, s. 57.

GENERAL

Keeping of books

48(1)       Every person carrying on business in Manitoba and every person who is required, by or under this Act, to pay or collect taxes or other amounts shall keep records and books of account (including an annual inventory kept in the prescribed manner) at his place of business or residence in Canada or at such other place as may be designated by the treasurer, in such form, and containing such information, as will enable the taxes payable under this Act, or the taxes or other amounts that should have been deducted, withheld, or collected, to be determined.

Application of federal provisions (records)

48(2)       Subsections 230(2.1) to (8) of the federal Act apply for the purposes of this Act.

48(3) to (7)  [Repealed] S.M. 1989-90, c. 15, s. 39.

S.M. 1989-90, c. 15, s. 39; S.M. 2000, c. 39, s. 58.

Application of federal provisions (inspections, privilege, information return and corporate execution)

49          Sections 231 to 231.5, 232, 233 and 236 of the federal Act apply for the purposes of this Act.

S.M. 1989-90, c. 15, s. 40.

50 to 51    

[Repealed]

S.M. 1989-90, c. 15, s. 41.

Failure to comply with regulations

52(1)       Every person who fails to comply with a regulation made under paragraph 221(1)(d) or (e) of the federal Act as it applies by virtue of subsection 37(2) of this Act, is liable in respect of each failure to so comply to a penalty of $10. a day for each day of default but not exceeding in all $2,500.

Penalty

52(2)       Every person who fails to comply with a regulation made under section 37 or incorporated by reference by virtue of subsection (2) thereof is liable to a penalty of $10. a day for each day of default but not exceeding in all $2,500.

53          [Repealed]

S.M. 1989-90, c. 15, s. 42.

General anti-avoidance rule

53.1(1)     The following definitions apply in this section.

"avoidance transaction" means a transaction

(a) that, but for this section, would result, directly or indirectly, in a tax benefit; or

(b) that is part of a series of transactions, which series, but for this section, would result, directly or indirectly, in a tax benefit;

but does not include a transaction that may reasonably be considered

(c) to have been undertaken or arranged primarily for bona fide purposes other than

(i) to obtain a tax benefit,

(ii) to reduce, avoid or defer a tax, or an amount payable as or in respect of tax, under any other Act of the Legislature or under any Act of Parliament or of any other legislature in Canada,

(iii) to increase a refund of tax, or of an amount in respect of tax, under any Act referred to in subclause (ii), or

(iv) any combination of the purposes mentioned in subclauses (i) to (iii); or

(d) to be a transaction that would not result, directly or indirectly, in

(i) a misuse of the provisions of this Act or the regulations, or

(ii) an abuse having regard to those provisions, other than this section, read as a whole. (« opération d'évitement »)

"tax benefit" means

(a) a reduction, avoidance or deferral of tax or of any other amount payable under this Act; or

(b) an increase in a refund of tax or of any other amount under this Act. (« avantage fiscal »)

"tax consequences" to a person means

(a) the amount of

(i) the person's income, loss or taxable income,

(ii) in the case of an individual, the individual's Manitoba income or the individual's income for the year, as defined in section 1,

(iii) in the case of a corporation, the corporation's taxable income earned in the year in Manitoba, as defined in subsection 7(5),

(iv) the person's taxable income earned in Canada, or

(v) the tax or other amount payable by or refundable to the person under this Act; and

(b) any amount that is relevant for computing an amount referred to in clause (a). (« attribut fiscal »)

"tax notice" means a notice of assessment, reassessment, additional assessment or determination under section 14 or 15 that reflects the application of subsection (2) or (5) in relation to a transaction or series of transactions. (« avis d'imposition »)

"transaction" includes an arrangement or event. (« opération »)

Tax consequences to be determined

53.1(2)     If a transaction is an avoidance transaction, the tax consequences to a person must be determined in a manner that is reasonable in the circumstances in order to deny a tax benefit that, but for this section, would result, directly or indirectly, from that transaction or from a series of transactions that includes that transaction.

Additional rules for determining tax consequences

53.1(3)     Without limiting subsection (2), in determining the tax consequences under that subsection,

(a) any amount deducted in computing an amount referred to in clause (a) or (b) of the definition of "tax consequences" in subsection (1) may be allowed or disallowed in whole or in part;

(b) any deduction referred to in clause (a) of this subsection or any other amount used in determining an amount payable or refundable under this Act may be allocated to any person;

(c) the nature of any payment or other amount may be recharacterized; and

(d) the tax effects that would otherwise result from the application of other provisions of this Act or the regulations may be ignored.

Request for determination of tax consequences

53.1(4)     If a tax notice reflecting the application of subsection (2) to a transaction or series of transactions has been sent to a person, another person may, within 180 days after the date of the mailing of that notice, request in writing that the minister determine or redetermine the tax consequences to that other person that can reasonably be considered to relate to that transaction or series of transactions.

Minister's response to request

53.1(5)     Upon receiving a request under subsection (4), the minister must consider the request and determine or redetermine the tax consequences to the person making the request that can reasonably be considered to relate to the transaction or series of transactions to which the request relates.

Method of determining tax consequences

53.1(6)     The tax consequences to any person resulting from the application of this section may be determined only through a tax notice.

S.M. 1996, c. 66, s. 12; S.M. 2007, c. 6, s. 45.

Conferral of benefit

53.1.1      Section 246 of the federal Act applies for the purposes of this Act.

S.M. 2007, c. 6, s. 45.

"Untaxed income" defined

53.2(1)     In this section, a person's "untaxed income" in relation to a disposition of property is the total of all amounts each of which is the portion of the person's income or taxable income earned in a year in a province, as determined under the federal regulations, that

(a) is attributable to the disposition; and

(b) because of a difference between the transferor's cost or adjusted cost base of the property for federal tax purposes and its cost or adjusted cost base to the transferor under the income tax law of the province, is not included in the person's income for the year under that law.

Provincial tax avoidance

53.2(2)     Where, as part of a series of transactions or events,

(a) a person or partnership (referred to in this section as the "taxpayer") disposes of property to another person or partnership with whom the taxpayer does not deal at arm's length for proceeds of disposition under the federal Act less than the fair market value of the property at the time of the disposition; and

(b) the property or other property

(i) the fair market value of which is derived primarily from the property, or

(ii) that is acquired by any person other than the taxpayer in substitution for the property,

is subsequently disposed of for proceeds of disposition under the federal Act greater than its adjusted cost base under that Act;

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

53.2(3)     [Repealed] S.M. 2010, c. 29, s. 33.

Application

53.2(4)     This section applies to dispositions that occur after 1991.

53.2(5)     [Repealed] S.M. 2000, c. 39, s. 59.

S.M. 1996, c. 66, s. 13; S.M. 2000, c. 39, s. 59; S.M. 2010, c. 29, s. 33.

OFFENCES AND PENALTIES

Offence and penalty

54(1)       A person who fails

(a) to file a return as required under this Act or a regulation or under a provision of the federal Act or the federal regulations as the provision applies for the purposes of this Act; or

(b) to comply with subsection 153(1), 227(5), 230(3), 230(4) or 230(6) or any of sections 231 to 231.5 and 232 of the federal Act, as any of these provisions applies for the purposes of this Act;

is guilty of an offence and, in addition to a penalty that is otherwise provided, is liable

(c) to a fine of not less than $1000. and not more than $25,000.; or

(d) to both the fine described in clause (c) and imprisonment for a term not exceeding 12 months.

Compliance order

54(2)       Subsection 238(2) of the federal Act applies for the purposes of this Act.

Saving provision

54(3)       Where a person is convicted under this section for failure to comply with a provision of this Act or a regulation or a provision of the federal Act or of the federal regulations that applies for the purposes of this Act, the person is not liable to a penalty under any of subsections 162(1) to (3), (5) and (7) and subsections 227(8), (8.5), (9) and (9.5) of the federal Act as these subsections apply for the purposes of this Act or under section 52 for the same failure unless the person is assessed for the penalty or the penalty is demanded from the person before the information or complaint giving rise to the conviction is laid or made.

S.M. 1989-90, c. 15, s. 43; S.M. 1993, c. 46, s. 58; S.M. 2000, c. 39, s. 60.

Penalty for evading the Act or regulations

55(1)       Subsections 239(1) and (1.1) of the federal Act apply with necessary modifications for the purposes of this Act.

Offence re refund or credit

55(2)       Every person who, by doing or conspiring with any person to do any of the things referred to in paragraphs 239(1.1)(a) to (d) of the federal Act, enables any other person to claim or obtain a refund or credit under this Act to which the other person is not entitled or in an amount that is greater than the amount to which the other person is entitled, is guilty of an offence and, in addition to any other penalty otherwise provided, is liable on summary conviction to

(a) a fine of not less than 50% and not more than 200% of the amount by which the amount of the refund or credit obtained or claimed exceeds the amount, if any, of the refund or credit to which the other person is entitled; or

(b) both the fine described in clause (a) and imprisonment for a term not exceeding two years.

Offences by officers and directors

55(3)       Except as otherwise provided in this Act, if a corporation commits an offence under this Act, a director or officer of the corporation who authorized, permitted or acquiesced in the commission of the offence is also guilty of an offence and is liable on summary conviction, whether or not the corporation has been prosecuted or convicted, to any penalty to which an individual committing the offence committed by the corporation would be liable.

S.M. 1989-90, c. 15, s. 44; S.M. 1993, c. 46, s. 59; S.M. 1999, c. 3, s. 11.

Discretion of minister as to proceedings

56          Where a collection agreement is entered into and proceedings under section 238 or 239 of the federal Act are taken against any person, the minister may take or refrain from any action against that person contemplated by section 54 of this Act or subsection 239(1) or (1.1) of the federal Act as it applies for the purposes of this Act.

S.M. 2000, c. 39, s. 61.

Revealing confidential information

57(1)       Where a person, while employed in the administration or enforcement of this Act,

(a) is in possession of information that is obtained by or on behalf of the minister for the purposes of this Act and knowingly communicates the information or knowingly allows the information to be communicated to another person who is not legally entitled to receive the information;

(b) is in possession of or has custody or control of a book, record, writing, return or other document that is obtained by or on behalf of the minister for the purposes of this Act and knowingly allows another person, who is not legally so entitled, to inspect or to have access to the book, record, writing, return or other document; or

(c) is in possession of information that is obtained by or on behalf of the minister for the purposes of this Act and knowingly uses the information other than in the course of the duties of the person in connection with the administration or enforcement of this Act;

the person is guilty of an offence and is liable to a fine not exceeding $5,000. or to imprisonment for a term not exceeding 12 months or to both.

Limitation

57(2)       Subsection (1) does not apply to the communication of information between

(a) the Minister of Finance for Manitoba and the Minister of National Revenue; or

(b) the Minister of Finance for Manitoba or the Minister of National Revenue, acting on behalf of Manitoba, and the Provincial Treasurer, the Provincial Secretary-Treasurer or the Minister of Finance of the government of

(i) an agreeing province, or

(ii) a non-agreeing province to which an adjustment payment may be made under subsection 65(2).

S.M. 1989-90, c. 15, s. 45; S.M. 2000, c. 39, s. 62.

Requirement to provide specified information

57.1(1)     The Minister of Finance for Manitoba may require a department or agency of the government that keeps specified information about persons to provide a copy of any or all of that information to the minister.

Use of information

57.1(2)     Information obtained under subsection (1) may be used only for the purposes of this Act and, subject to the provisions of the federal Act, for any related purpose of that Act.

"Specified information" defined

57.1(3)     In this section, "specified information" about a person means

(a) the person's name and any identifying number or symbol;

(b) the person's residential street address and postal code;

(c) the person's date of birth or death;

(d) the date of the person's registration or deregistration with a government department or agency;

(e) a date that the person used the services of a government department or agency;

(f) any information relevant to the person's eligibility for a credit under this Act; and

(g) information referred to in clauses (a) to (f) about a spouse, common-law partner or dependant of the person.

"Specified information" exclusions

57.1(4)     Despite subsection (3), "specified information" about a person does not include a person's PHIN, as defined in The Personal Health Information Act, or any information about the health, disability or medical condition or treatment of any person.

S.M. 2002, c. 19, s. 38; S.M. 2010, c. 29, s. 34.

Liability of officers or agents of corporation

58          Section 242 of the federal Act applies for the purposes of this Act.

S.M. 1993, c. 46, s. 60.

Minimum penalties mandatory

59          Section 243 of the federal Act applies for the purposes of this Act.

S.M. 1993, c. 46, s. 60.

PROCEDURE AND EVIDENCE

Application of federal provisions (information and evidence)

60(1)       Subsections 244(1) to (5), (7) to (11), (13) to (17) and (20) to (22) of the federal Act apply for the purposes of this Act.

60(2)       [Repealed] S.M. 2000, c. 39, s. 63.

60(3) to (10)  [Repealed] S.M. 1993, c. 46, s. 61.

Judicial notice of order and agreements

60(11)      Judicial notice shall be taken of

(a) all orders or regulations made under this Act; and

(b) a collection agreement entered into under this Act or any agreement for the collection by Canada of the tax imposed under the income tax statute of an agreeing province;

without such orders, regulations, or agreements being specially pleaded or proven.

60(12) to (15)  [Repealed] S.M. 1993, c. 46, s. 61.

Proof of collection agreements

60(16)      A document purporting to be a collection agreement entered into under this Act or an agreement with Canada for the collection of tax imposed under the income tax statute of an agreeing province that is

(a) published in the Canada Gazette; or

(b) certified as such by or on behalf of

(i) the treasurer, or

(ii) the Provincial Treasurer, the Provincial Secretary-Treasurer or the Minister of Finance of the appropriate agreeing province;

shall be received as prima facie proof of the contents thereof.

60(17)      [Repealed] S.M. 1993, c. 46, s. 61.

Certificate of treasurer as proof

60(18)      A certificate of the treasurer as to

(a) the taxable income of a taxpayer for a taxation year; or

(b) an individual's income for the year;

is, in the absence of evidence to the contrary, proof that the taxable income for the taxation year or the income for the year is the amount stated in the certificate.

Documents issued or signed by federal officials

60(19)      Where a collection agreement is entered into any document or certificate that is executed or issued, or any affidavit that is sworn, by the minister, the deputy head or an employee of the Canada Customs and Revenue Agency on behalf of or in the place of the Minister of Finance or Deputy Minister of Finance for Manitoba or an official of the Manitoba Department of Finance is deemed, for the purposes of this Act, to be executed, issued or sworn by the Minister of Finance or Deputy Minister of Finance for Manitoba or an official of the Manitoba Department of Finance.

S.M. 1989-90, c. 15, s. 46; S.M. 1993, c. 46, s. 61; S.M. 2000, c. 39, s. 63.

PART III

COLLECTION OF TAX

COLLECTION AGREEMENT

Making of collection agreement

61(1)       The Minister of Finance for Manitoba, with the approval of the Lieutenant Governor in Council, may, on behalf of the Government of Manitoba, enter into a collection agreement with the Government of Canada under which the Government of Canada will collect taxes payable under this Act on behalf of the Government of Manitoba and will make payments to the Government of Manitoba in respect of the taxes so collected, in accordance with such terms and conditions as are prescribed in the collection agreement.

Amendment of collection agreement

61(2)       The Minister of Finance for Manitoba, with the approval of the Lieutenant Governor in Council, may, on behalf of the Government of Manitoba, enter into an agreement amending the terms and conditions of a collection agreement entered into under subsection (1).

Exercise of powers by minister

61(3)       When a collection agreement is in effect, the minister may employ all the powers and shall perform all the duties that the Minister of Finance for Manitoba would, if no collection agreement were in effect, have under this Act, other than this Part, including the discretion to refuse to permit the production in judicial or other proceedings in Manitoba of any document that, in the opinion of the minister, it is not in the public interest to produce.

Deputy head

61(4)       Where a collection agreement is entered into, the deputy head may

(a) employ all the powers and perform the duties of the minister and exercise any discretion that the minister has, under subsection (3) or otherwise under this Act; and

(b) designate officers of the Canada Customs and Revenue Agency to carry out functions, duties and powers that are similar to those carried out by them under the federal Act on behalf of the deputy head.

Authority to collect taxes

61(5)       For greater certainty, if this Act is or has been amended, whether before or after this section comes into force, such that a collection agreement is no longer consistent with this Act, then despite the inconsistency,

(a) the collection agreement remains in effect for the purpose of applying the provisions of this Act that apply when a collection agreement is in effect; and

(b) the Government of Canada has the authority to collect on behalf of the Government of Manitoba all taxes payable under this Act;

until the collection agreement is terminated in accordance with its terms.

Minister of Finance may exercise powers of minister

61(6)       If while a collection agreement is in effect the minister or deputy head does not, for any reason, employ all the powers or perform all the duties that the Minister of Finance for Manitoba would have under this Act if no collection agreement were in effect, the Minister of Finance or Deputy Minister of Finance for Manitoba, or persons designated by the Minister of Finance for Manitoba for the purpose, may employ those powers or perform those duties.

S.M. 2000, c. 39, s. 64; S.M. 2001, c. 41, s. 31.

PAYMENTS ON ACCOUNT

Application of payments by minister

62(1)       A collection agreement may provide that where any payment is received by the treasurer on account of tax payable by a taxpayer for a taxation year under this Act, the federal Act or an income tax statute of another agreeing province, or under any two or more such Acts or statutes, the payment so received may be applied by the minister towards the tax payable by the taxpayer under any such Act or statute in such manner as may be specified in the agreement, notwithstanding that the taxpayer has directed that the payment be applied in any other manner or made no direction as to its application.

Relief of taxpayer

62(2)       Any payment or part thereof applied by the minister in accordance with a collection agreement towards the tax payable by a taxpayer for a taxation year under this Act

(a) relieves the taxpayer of liability to pay that tax to the extent of the payment or part thereof so applied; and

(b) shall be deemed to have been applied in accordance with a direction made by the taxpayer.

S.M. 2000, c. 39, s. 65.

DEDUCTIONS AT SOURCE

No action for tax remitted

63          Where a collection agreement is in effect and an amount is remitted to the minister under subsection 153(1) of the federal Act, as it applies for the purposes of this Act, on account of the tax of an individual who is resident on the last day of the taxation year in another agreeing province,

(a) no action lies for recovery of the amount by the individual; and

(b) the amount may not be applied in discharge of a liability of the individual under this Act.

S.M. 1989-90, c. 15, s. 47.

Relief of tax payer

64(1)       Where a collection agreement is entered into, an individual resident in Manitoba on the last day of the taxation year is not required to remit any amount on account of tax payable by him under this Act for the taxation year to the extent of the amount deducted or withheld on account of his tax for that year under the income tax statute of another agreeing province.

Recovery of overdeductions

64(2)       Where the total amount deducted or withheld on account of tax payable under this Act and under the income tax statute of another agreeing province by an individual resident in Manitoba on the last day of the taxation year to whom subsection (1) applies exceeds the tax payable by him under this Act for that year, the provisions of the federal Act that apply for the purposes of this Act because of section 28.1 apply in respect of that individual as though the excess were an overpayment under this Act.

S.M. 2000, c. 39, s. 66.

NON-AGREEING PROVINCES

Definitions

65(1)       In this section,

"adjusting payment" means a payment, calculated in accordance with this section, made by or on the direction of the Government of Manitoba to a non-agreeing province; (« paiement de rajustement »)

"amount deducted or withheld" does not include any refund made in respect of that amount; (« montant déduit ou retenu »)

"non-agreeing province" means a province that is not an agreeing province. (« province non participante »)

Authority to make adjusting payment

65(2)       Where, in respect of a taxation year a non-agreeing province is authorized to make a payment to The Government of Manitoba that, in the opinion of the Minister of Finance for Manitoba, corresponds to an adjusting payment, the Lieutenant Governor in Council may authorize the Minister of Finance for Manitoba to make an adjusting payment to that non-agreeing province and enter into any agreement that may be necessary to carry out the purposes of this section.

Adjusting payment to be made by Canada

65(3)       Where a collection agreement is entered into, the adjusting payment that may be made pursuant to subsection (2) may be made by the Government of Canada where it has agreed to act on the direction of The Government of Manitoba as communicated by the treasurer to the minister.

Calculation of adjusting payment

65(4)       The adjusting payment to be made under this section shall be in an amount that is equal to the aggregate of the amounts deducted or withheld under subsection 153(1) of the federal Act, as it applies for the purposes of this Act, in respect of the tax payable under this Act for a taxation year by individuals who

(a) file returns under the federal Act;

(b) are taxable thereunder in respect of that year; and

(c) are resident on the last day of that year in the non-agreeing province to which the adjusting payment is to be made.

No recovery of amounts deducted

65(5)       Where, for a taxation year, an adjusting payment to a non-agreeing province is made under this section in respect of an individual who

(a) is taxable under the federal Act for the taxation year; and

(b) is resident in the non-agreeing province on the last day of the taxation year;

and an amount is deducted or withheld under subsection 153(1) of the federal Act, as it applies for the purposes of this Act, on account of tax payable under this Act by the individual for the taxation year, no action lies for recovery of the amount by the individual and the amount may not be applied in discharge of a liability of the individual under this Act.

Credit

65(6)       If an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, an individual who is resident in Manitoba on the last day of the year is not required to remit any amount on account of tax payable under this Act by the individual for the year to the extent of the amount deducted or withheld on account of income tax payable, or that might have been payable, by the individual for the year under the law of that non-agreeing province.

Overpayments

65(7)       Where an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, and the total amount deducted or withheld on account of tax payable under this Act and on account of the income tax payable under the law of the non-agreeing province by an individual who is resident in Manitoba on the last day of the taxation year to whom subsection (6) applies exceeds the tax payable by him under this Act for that year, the provisions of the federal Act that apply for the purposes of this Act because of section 28.1 apply in respect of such individual as though the excess were an overpayment under this Act.

Source of payment by Canada

65(8)       Where a collection agreement is entered into and the Government of Canada has agreed in respect of a taxation year to carry out the direction of The Government of Manitoba and to make an adjusting payment on behalf of The Government of Manitoba, the adjusting payment

(a) shall be made out of any moneys that have been collected on account of tax under this Act for any taxation year; and

(b) shall be the amount calculated by the minister to be the amount required to be paid under subsection (4);

and the payment thereof discharges any obligation the Government of Canada may have with respect to the payment to The Government of Manitoba of any amount deducted or withheld under subsection 153(1) of the federal Act, as it applies for the purposes of this Act, to which subsection (5) applies.

S.M. 1989-90, c. 15, s. 48; S.M. 2000, c. 39, s. 67.

RECIPROCAL ENFORCEMENT OF JUDGMENTS

Enforcement in other provinces

66(1)       A judgment of a superior court of an agreeing province under that province's income tax statute, including any certificate registered in that superior court in a manner similar to that provided in subsection 39(2), may be enforced in the manner provided in The Reciprocal Enforcement of Judgments Act and, subject to subsection (2), shall be deemed to be a judgment to which that Act applies.

Registration

66(2)       For the purposes of subsection (1), where a judgment of a superior court of an agreeing province is sought to be registered, under The Reciprocal Enforcement of Judgments Act, the judgment shall be registered, notwithstanding that it is established that one or more of the provisions of subsection 3(6) of that Act apply.

Regulations in aid

66(3)       For the purposes of subsection (1), the Lieutenant Governor in Council may make regulations to enable the enforcement in Manitoba of judgments in respect of taxes in agreeing provinces.

S.M. 2012, c. 1, s. 41.

PART IV

TAX REBATE DISCOUNTING

Definitions

67(1)       In this Part,

"deputy head" means the deputy minister of the department charged with the administration of this Part; (« administrateur général »)

"discounter" means any person or any servant or agent of the person who, acting in the course of his business and for profit or gain acquires from a taxpayer, the taxpayer's right to any refund of tax; (« escompteur »)

"minimum consideration" in relation to a refund of tax, means an amount equal to

(a) where the refund of tax is equal to or less than $300., 85% of the refund of tax, or

(b) where the refund of tax is greater than $300., $255. plus 95% of the amount by which the refund of tax is greater than $300.; (« contrepartie minimum »)

"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Part; (« ministre »)

"refund of tax" means the amount that a taxpayer is entitled to receive

(a) as an overpayment of tax paid under this Act or the federal Act or collected pursuant to an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act (Canada); or

(b) a payment to an individual by virtue of an agreement referred to in clause (a) that is other than a refund of an overpayment of tax paid or collected, or

(c) an overpayment of unemployment insurance premiums paid under the Employment Insurance Act (Canada), or

(d) an overpayment of contributions paid under the Canada Pension Plan,

and any interest paid on any of the overpayments or payments; (« remboursement d'impôt »)

"taxpayer" means any person who is entitled to a refund of tax. (« contribuable »)

All manners of acquiring right included

67(2)       For the purposes of this Part, a discounter acquires a right to a refund of tax from a taxpayer where in any manner, including obtaining a power of attorney authorizing the discounter to receive for and on behalf of the taxpayer any refund of tax to which the taxpayer is entitled, the benefit of the refund of tax is transferred from the taxpayer to the discounter.

S.M. 2000, c. 39, s. 68.

Administration

68          The minister shall administer and enforce this Part and control and supervise all persons employed to carry out or enforce this Part and the deputy head may exercise all the powers and perform all the duties of the minister under this Part.

Registration required

69(1)       No person shall carry on business as a discounter unless he first registers with the minister.

Application for registration

69(2)       Subject to subsection 76(1.1), a person may register as a discounter by filing with the minister an application in the prescribed form together with such other information as the minister may require to ensure that the person will comply with this Part and by paying the prescribed fee.

S.M. 1988-89, c. 19, s. 22; S.M. 2014, c. 35, s. 53.

Limitation of discount

70(1)       A discounter who acquires a right to a refund of tax from a taxpayer for a consideration that is less than the minimum consideration in relation to the refund of tax is guilty of an offence.

No right to refund in respect of false return

70(1.1)     A discounter must not acquire a right to a refund in respect of a taxpayer's return that contains information that the discounter knows to be false.

No further fees or charges

70(2)       A discounter shall not deduct from the consideration mentioned under subsection (1) any amount as a fee or charge for the services rendered by the discounter in preparing any return or determining the amount of refund of tax.

Consideration to be in cash or by cheque

70(3)       No discounter shall acquire from a taxpayer a right to a refund of tax unless the discounter pays the whole of the consideration for the acquisition at the time of the acquisition, in cash or by cheque that is payable immediately.

Payment of excess to taxpayer

70(4)       Where the actual refund of tax exceeds the amount estimated or determined by the discounter, calculated for the purposes of this subsection without reference to any interest on the overpayment or payment making up the refund, by $10. or more, the discounter shall forthwith after receipt of the refund pay to the taxpayer the full amount of the excess and retain proof of payment.

Payment of excess to Receiver General

70(5)       Where the discounter has made every reasonable attempt to pay to the taxpayer the payment required under subsection (4) but has failed to do so within 30 days of receipt of the tax refund, the discounter shall remit the excess amount to the Receiver General to be held on account of any future tax liability of the taxpayer or to be paid to the taxpayer on application to the minister of National Revenue, and the discounter shall retain written evidence of the remittance to the Receiver General on behalf of the taxpayer.

Proof of payment

70(6)       Where a discounter has paid an excess amount to a taxpayer under subsection (4), or to the Receiver General on behalf of the taxpayer under subsection (5), a dated and signed receipt or cancelled cheque in favour of the taxpayer, or a receipt from Revenue Canada setting out the taxpayer's name and the amount remitted on his behalf by the discounter is prima facie proof of payment.

S.M. 1988-89, c. 11, s. 27; S.M. 1993, c. 46, s. 62; S.M. 2014, c. 35, s. 54.

Information to taxpayer

71(1)       Every discounter shall, at or before acquiring a right to a refund of tax from a taxpayer

(a) provide the taxpayer with a statement in the form and containing the information set out in or a copy of Schedule I to the Tax Rebate Discounting Regulations (Canada);

(b) obtain from the taxpayer a mailing address for the taxpayer and upon receipt of the actual amount of the refund of tax or any document indicating the actual amount of the refund, provide the taxpayer with a statement in the form and containing the information set out in or a copy of Schedule II to the Tax Rebate Discounting Regulations (Canada); and

(c) provide the taxpayer with a copy of the income tax return together with copies of all relevant documents indicating the income of the taxpayer used in completing the return.

Maintenance of records

71(2)       Every discounter shall keep and maintain at his place of business in Manitoba

(a) copies of Schedules I and II to the Tax Rebate Discounting Regulations (Canada), furnished to taxpayers; and

(b) copies of

(i) documents referred to in clause (1)(c),

(ii) taxpayers' income tax returns prepared by him or his employee or agent for and on behalf of those taxpayers,

(iii) cheques or other documentary evidence of the actual amount of refund of tax, and

(iv) all other documents and records relevant to the nature and character of his business;

for at least five years.

S.M. 2000, c. 39, s. 69.

Designation of investigators

72(1)       The minister may, in writing, designate such persons including peace officers and officers of the minister's department as investigators for the purpose of administering and carrying out the objects and purposes of this Part.

Examination of records

72(2)       A person designated as an investigator under subsection (1) may, at any time during regular business hours, enter any premises in which a discounter carries on business and inspect and examine records and documents relating to the business of the discounter and may make copies thereof or take excerpts therefrom.

Discounter to produce documents

72(3)       Where a person enters the business premises of a discounter under subsection (2) and requests the discounter to produce documents for inspection and examination, the discounter shall comply with the request and shall not in any manner impede or attempt to impede the person in the performance of his duties.

Powers of investigator under Evidence Act

72(4)       Subject to subsection (5), for the purpose of exercising his powers and carrying out his duties under this Part, an investigator has all the like protection and powers, and is subject to like requirements as are conferred on, or required of a commissioner under Part V of The Manitoba Evidence Act.

Non-application of section 86

72(5)       Section 86 of The Manitoba Evidence Act does not apply to an investigator under this Part.

Returns

73          Every discounter shall submit to the minister such returns, copies of documents and information as may be required by the regulations made under this Part.

Regulations

74          The Lieutenant Governor in Council may make regulations

(a) requiring discounters to submit such returns, forms and information for the purpose of administering and enforcing the provisions of this Part;

(b) prescribing forms for use under this Part and the information to be shown thereon;

(c) prescribing the procedure for registration of discounters and the fee to be charged for each registration;

(d) prescribing the powers and duties of investigators, other than those set out in subsection 72(2); and

(e) respecting such other matters as the Lieutenant Governor in Council deems necessary and advisable to carry out the provisions of this Part.

Offences and penalties

75(1)       Any person who violates or fails or refuses to comply with any of the provisions or requirements of this Part or regulations thereunder is guilty of an offence and is liable for a first offence to a fine of not less than $1,000. or more than $10,000. and for a second or subsequent offence, he is liable to a fine of not less than $5,000. or more than $25,000.

Offences by officers and directors

75(2)       Where a corporation is guilty of an offence under this Part, any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is party to and guilty of the offence and liable to the penalties prescribed under subsection (1).

Revocation of registration

75(3)       In addition to the penalties set out in subsections (1) and (2), where a discounter is guilty of an offence under this Part or under the Tax Rebate Discounting Act (Canada), the minister may revoke the registration of the discounter and no part of the registration fee shall be refunded or refundable to the discounter.

Payment to taxpayer

75(4)       Where a discounter is convicted of an offence under this Part, the judge or justice making the conviction, in addition to any fine which the judge or justice may impose, shall order the discounter to pay to the taxpayer any amount that the judge or justice finds is owing to the taxpayer by the discounter.

Suspension

76(1)       Where the minister has reasonable and probable grounds to believe that a discounter has failed to comply with any of the provisions of this Part, the minister may cancel or suspend the registration of the discounter.

Minister may refuse registration

76(1.1)     If the minister has reasonable and probable grounds to believe, based on the past conduct of the person applying for registration or the person's relationship to a discounter whose registration was or could have been cancelled or suspended under subsection (1), that the person will likely not comply with any provision of this Part, the minister may refuse to register the person as a discounter.

Appeal

76(2)       A person whose registration as a discounter has been suspended or cancelled under subsection (1) or refused under subsection (1.1) may, within 30 days after receiving notice of the suspension, cancellation or refusal, appeal the minister's action or decision to the court.

S.M. 1988-89, c. 19, s. 23; S.M. 2014, c. 35, s. 55.

NOTE: This Act was enacted as part of the roll of statutes re-enacted by SM 1988, c. 1, and designated as the Re-enacted Statutes of Manitoba, 1988. Except as otherwise provided in those Acts, they came into force on October 19, 1988 (the day that SM 1998, c. 1 received royal assent).

 

 


Accessibility Disclaimer Copyright Privacy Contact Government