5th Session, 42nd Legislature
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Bill 14
THE BUDGET IMPLEMENTATION AND TAX STATUTES AMENDMENT ACT, 2023
| Bilingual version (PDF) | Explanatory Note |
(Assented to )
HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
PART 1
THE HEALTH AND POST SECONDARY EDUCATION TAX LEVY ACT
1 The Health and Post Secondary Education Tax Levy Act is amended by this Part.
2(1) Subsection 3(3.10) is amended in the formula in clause (a), and in clauses (c) and (f), by striking out "$2,000,000" and substituting "$2,250,000".
2(2) Subsection 3(3.12) is amended by striking out "$2,000,000" and substituting "$2,250,000".
2(3) Subsection 3(3.14) is amended
(a) by striking out "$2,000,000" wherever it occurs and substituting "$2,250,000"; and
(b) by striking out "$4,000,000" and substituting "$4,500,000".
2(4) Subsection 3(3.16) is amended in the formula in clause (a), and in clauses (b) and (f), by striking out "$2,000,000" and substituting "$2,250,000".
3(1) Subsection 3.2(2) is amended
(a) in the section heading and in the part before the formula, by striking out "$4,000,000" and substituting "$4,500,000"; and
(b) in the formula, by striking out "$2,000,000" and substituting "$2,250,000".
3(2) Subsection 3.2(3) is amended, in the section heading and in the part before clause (a), by striking out "$4,000,000" and substituting "$4,500,000".
PART 2
THE INCOME TAX ACT
4 The Income Tax Act is amended by this Part.
5 Subsection 1(1) is amended in the definition "individual" by striking out "section 5" and substituting "sections 5 and 6.1 to 6.5".
6 Subsection 4(1) is amended by replacing Rule 1 with the following:
Rule 1
For the 2016 and subsequent taxation years, determine the individual's basic tax payable for the year
(a) under subsection 4.1(4), in the case of a trust referred to in that subsection; and
(b) in any other case,
(i) under subsection 4.1(1) for the 2016 to 2023 taxation years, and
(ii) under subsection 4.1(2) for the 2024 and subsequent taxation years.
7 Section 4.1 and the centred heading before it are replaced with the following:
Basic Tax Payable — 2016 and Later Years
Basic tax payable — 2016 to 2023 taxation years
4.1(1) Subject to subsection (3), an individual's basic tax payable for the 2016 taxation year and each subsequent taxation year ending before 2024 is the total of the following amounts determined in relation to the individual's taxable income for that year ("TI"):
(a) 10.8% of the TI;
(b) if the TI exceeds $31,000, 1.95% of the excess;
(c) if the TI exceeds $67,000, 4.65% of the excess.
Basic tax payable — 2024 and subsequent taxation years
4.1(2) Subject to subsection (3), an individual's basic tax payable for the 2024 taxation year and each subsequent taxation year is the total of the following amounts determined in relation to the individual's taxable income for that year ("TI"):
(a) 10.8% of the TI;
(b) if the TI exceeds $47,000, 1.95% of the excess;
(c) if the TI exceeds $100,000, 4.65% of the excess.
Indexing of tax bracket amounts
4.1(3) The following are to be indexed according to subsection 4(3):
(a) for the 2017 to 2023 taxation years, the dollar amounts specified in clauses (1)(b) and (c);
(b) for the 2025 and subsequent taxation years, the dollar amounts specified in clauses (2)(b) and (c).
4.1(4) Despite subsections (1) to (3), the basic tax payable for a taxation year for a trust to which subsection 122(1) of the federal Act applies is 17.4% of the trust's taxable income for the year.
8 Subsections 4.6(3) and (3.1) are replaced with the following:
4.6(3) An individual may claim a basic personal amount of
(a) subject to subsection (3.1), $9,134 for a taxation year ending after 2013 and before 2023;
(b) $15,000 for the 2023 taxation year; and
(c) subject to subsection (3.1), $15,000 for a taxation year ending after 2023.
Indexing of basic personal amount
4.6(3.1) The following are to be indexed according to subsection 4(3):
(a) for the 2017 to 2022 taxation years, the basic personal amount specified in clause (3)(a);
(b) for the 2024 and subsequent taxation years, the basic personal amount specified in clause (3)(c).
9 The following is added after section 6.3:
2023 Carbon Tax Relief Tax Credit
6.3.1(1) The following definitions apply in this section and section 6.4.
"2021 unadjusted income" of an individual means the total of all amounts each of which is the income for the 2021 taxation year of the individual or of the person who was the individual's spouse or common-law partner for the 2021 taxation year. (« revenu non rajusté pour 2021 »)
"spouse or common-law partner for the 2021 taxation year" of an individual means another individual who
(a) was identified in the individual's return of income for the 2021 taxation year as their cohabiting spouse or common-law partner;
(b) was resident in Manitoba on December 31, 2021; and
(c) filed their return of income for the 2021 taxation year before January 1, 2023 and, in that return, identified the individual as their cohabiting spouse or common-law partner. (« conjoint ou conjoint de fait pour l'année d'imposition 2021 »)
6.3.1(2) Subject to subsection (3), an individual is eligible for a carbon tax relief tax credit for the 2023 taxation year if
(a) the individual was at least 18 years old on December 31, 2021;
(b) the individual's 2021 unadjusted income was less than $175,000;
(c) the individual was resident in Manitoba on December 31, 2021, and on December 31, 2022; and
(d) the individual filed their return of income for the 2021 taxation year before January 1, 2023.
6.3.1(3) If an individual and their spouse or common-law partner for the 2021 taxation year are both eligible for the tax credit under subsection (2), the individual with the greater income for the 2021 taxation year is not eligible for the credit unless the other individual died before applying for the credit under subsection 6.4(2.1) or receiving the advance payment of it under subsection 6.4(1.1).
Carbon tax relief tax credit amount
6.3.1(4) The carbon tax relief tax credit of an individual for the 2023 taxation year is
(a) $375 if the individual had a spouse or common-law partner for the 2021 taxation year; and
10(1) Subsections 6.4(1) and (2) are replaced with the following:
Administration of Relief Tax Credits
Meaning of "relief tax credit"
6.4(1) In this section and sections 6.5 and 6.6, "relief tax credit" means one of the following credits:
(a) an affordability tax credit under section 6.2 (affordability tax credit for families);
(b) an affordability tax credit under section 6.3 (affordability tax credit for seniors);
(c) a carbon tax relief tax credit under section 6.3.1.
6.4(1.1) A payment to an individual of the amount of the individual's anticipated relief tax credit, without application by the individual, is deemed to be paid on account of the relief tax credit to which the individual may be entitled.
If advance of affordability credit not received
6.4(2) An individual who has not received their affordability tax credit under section 6.2 or 6.3 before May 1, 2023, ceases to be eligible for it if they do not apply for the credit to the Minister of Finance for Manitoba, in the form and manner acceptable to the minister, before July 1, 2023.
If advance of carbon tax relief credit not received
6.4(2.1) An individual who has not received their carbon tax relief tax credit under section 6.3.1 before May 1, 2023, ceases to be eligible for it if
(a) their spouse or common-law partner for the 2021 taxation year has applied for the credit or received an advance payment of it under subsection (1.1); or
(b) the individual does not apply for the credit to the Minister of Finance for Manitoba, in the form and manner acceptable to the minister, before July 1, 2023.
10(2) Subsection 6.4(3) is amended
(a) in the section heading, by adding "affordability" after "Application for"; and
(b) in the part after clause (e), by striking out "March 1, 2023" and substituting "July 1, 2023".
10(3) Subsection 6.4(4) is amended
(a) in the section heading, by striking out "affordability tax credit" and substituting "relief tax credit";
(b) by striking out "subsection (2) or (3)" and substituting "subsection (2), (2.1) or (3)"; and
(c) in the English version, by striking out "an affordability tax credit" and substituting "a relief tax credit".
11(1) Subsection 6.5(1) is amended by striking "an affordability tax credit" and substituting "a relief tax credit".
11(2) Subsection 6.5(2) is replaced with the following:
6.5(2) An individual may request that the Minister of Finance for Manitoba reconsider the individual's application under subsection 6.4(2), (2.1) or (3). The request must be made, in a form and manner acceptable to the minister, within 30 days after being notified of the decision under subsection (1).
11(3) Subsection 6.5(5) is amended by striking out "affordability tax credits" and substituting "relief tax credits".
12 Section 6.6 is amended by striking out "an affordability tax credit" and substituting "a relief tax credit".
13(1) Subsection 10.3(2) is amended by replacing the part before the formula with the following:
Manufacturer's geothermal energy equipment tax credit
10.3(2) An eligible manufacturer is deemed to have paid on account of its tax payable under this Act for a taxation 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):
13(2) Subsection 10.3(2.1) is amended by replacing the part before the formula with the following:
Manufacturer's green energy transmission equipment tax credit
10.3(2.1) An eligible manufacturer of green energy transmission equipment is deemed to have paid on account of its tax payable under this Act for a taxation year the total of all amounts each of which is an amount determined by the following formula in respect of an item of green energy transmission equipment manufactured by it primarily in Manitoba and sold by it in the taxation year to a purchaser for use in Manitoba:
13(3) Clause 10.3(3)(c) is amended, in the part before subclause (i), by striking out "and before July 1, 2023".
13(4) Subsection 10.3(5) is amended, in the part before item 1, by striking out "and before July 1, 2023".
14(1) Clause 10.5(1.1)(a) is amended by striking out "salary and wages" and substituting "salary or wages".
14(2) Clause 10.5(3)(c) is amended
(a) in subclause (i), by striking out "salaries and wages" and substituting "salary or wages"; and
(b) in subclause (ii), by striking out "eligible projects is" and substituting "eligible projects was".
14(3) Subsection 10.5(4) is amended in the definition "labour expense",
(a) in the part before clause (a), by adding ", subject to subsection (5)," after "an eligible project means"; and
(b) in clause (a), by striking out "salaries and wages" and substituting "salary or wages".
14(4) Clause 10.5(5)(a) is amended
(a) in subclause (i), by striking out "profits or revenues" and substituting "profits, revenues or the value of a share of the capital stock of a corporation"; and
(b) by replacing subclauses (ii) and (iii) with the following:
(ii) stock options or signing bonuses,
(iii) ancillary employment allowances or benefits that are not required by law to be provided, other than health benefits and pension contributions,
15(1) Subsection 11.7(1) is replaced with the following:
"Flow-through mining expenditure" defined
11.7(1) In this section, "flow-through mining expenditure" of an individual for a taxation year means an amount that
(a) is directly attributable to expenditures that
(i) were incurred after March of that year and before April of the following year for exploration in Manitoba for a mineral resource in Manitoba,
(ii) are for goods or services, or both goods and services, most of which, if they were available in Manitoba, were provided in Manitoba,
(iii) have been approved by the minister responsible for The Mines and Minerals Act, or a person authorized by the minister for the purpose, as expenditures that qualify for a mineral exploration tax credit, and
(iv) are not expenditures in relation to which a tax credit under this section may be claimed by another person; and
either of the following:
(b) is included in the individual's flow-through critical mineral mining expenditure for the year under subsection 127(9) of the federal Act, or would be so included if paragraphs (c) and (d) of the definition "flow-through critical mineral mining expenditure" in that subsection were read as follows:
"(c) that is 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,"
"(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,"
(c) 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,"
"(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, and".
15(2) Subsection 11.7(2) is amended
(a) in the part before clause (a), by striking out "after 2001 and before 2024"; and
(b) by replacing clause (b) with the following:
(b) 30% of the individual's flow-through mining expenditure for the year.
15(3) Subsection 11.7(3) is amended, in the part before the formula,
(a) by striking out "Subject to subsection (3.1), an individual's" and substituting "An individual's"; and
(b) by striking out "after 2001".
15(4) Subsection 11.7(3.1) is repealed.
PART 3
THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT
16 The Tax Administration and Miscellaneous Taxes Act is amended by this Part.
17(1) The centred heading before section 46 and the part of subsection 46(1) before clause (a) and clause (a) are replaced with the following:
ASSESSMENTS
46(1) The director may at any time assess or reassess one or more of the following in relation to a person:
(a) the tax required to be paid or remitted under a tax Act in respect of a matter or a period;
17(2) Subsection 46(4) is amended, in the part before clause (a), by striking out "of a tax debt".
17(3) The following is added after subsection 46(5):
46(6) If, in making an assessment or reassessment under subsection (1), the director determines that a person has made an overpayment, the overpayment is refundable, without interest, unless it has been applied against a tax debt or refunded under any other provision of a tax Act. If the overpayment is refundable, it is to be applied or paid as follows:
(a) firstly, to the payment of any tax debt owing by the person under the tax Act in relation to which the overpayment was made;
(b) secondly, to the payment of any tax debt owing by the person under any other tax Act;
(c) after that, subject to subsection 53(8), as a refund to the person.
When overpayment is applied to tax debt
46(7) A payment of a tax debt under clause (6)(a) is deemed to be made on the later of
(a) the day the overpayment was made; and
(b) the day the person failed to pay the tax debt when due.
No application or refund under another provision
46(8) Despite this section or any other provision of a tax Act, an amount applied or paid as a refund under subsection (6) must not also be applied or refunded under the other provision.
18 Subsection 48(1) is amended
(a) by replacing clause (c) with the following:
(c) the particulars of the assessment or reassessment, including
(i) the matter or period in respect of which the assessment or reassessment is made,
(ii) the tax, interest and penalties comprising the tax debt, if any, and
(iii) the amount, if any, that is refundable under subsection 46(6) and how it has been paid or applied under that subsection;
(b) in clause (d), by adding ", if any," after "tax debt".
19 Section 50 is amended, in the part before clause (a), by adding "indicating a tax debt" after "reassessment".
20(1) Subsection 53(1) is amended, in the part before clause (a), by striking out "A person" and substituting "Subject to subsection 46(8), a person".
20(2) Subsection 53(6) is amended, in the part before clause (a), by adding "other than subsection 46(6)," after "any provision of a tax Act,".
20(3) The following is added after subsection 53(7):
53(8) The director must not refund an amount under this section or any other provision of a tax Act to a person who has not
(a) made or filed all reports and information returns as required under a tax Act; or
(b) provided all information to the director as required under a tax Act.
21 Subsection 53.1(2) is amended, in the description of A in the formula, by adding ", or applied or paid as a refund under subsection 46(6)," after "the applicable tax Act".
Consequential amendment, C.C.S.M. c. R130
22 Subsection 26(2) of The Retail Sales Tax Act is amended, in the part after clause (d) of the English versions, by striking out "shall repay" and substituting "shall refund".
PART 4
OTHER AMENDMENTS
23(1) The Community Child Care Standards Act is amended by this section.
23(2) The following is added after section 31:
31.1(1) The Minister of Finance, on the requisition of the minister, may make grants out of money appropriated by the Legislature for the purposes set out in subsection (2).
31.1(2) The minister may requisition a grant to be made to support a licensed child care centre that is established or maintained by
(a) a municipality;
(b) an Indigenous governing body; or
(c) a reporting organization within the meaning of The Financial Administration Act.
31.1(3) A grant recipient must enter into an agreement that sets out the recipient's reporting obligations and any other terms or conditions that the minister considers appropriate for the payment and administration of the grant.
Retroactive application and validation
31.1(4) A grant made under subsection (2) may be made effective retroactively to any day in the period beginning on January 18, 2022, and ending on the day this section comes into force. Any grant made before this section comes into force is hereby validated and is deemed to have been lawfully made.
23(3) Clause 34(k) is amended by adding "for the purposes of section 31," before "respecting".
24 The Executive Government Organization Act is amended by adding the following after section 11:
11.0.1(1) In this section, "internal support services" means administrative activities that support
(a) information management or technology services;
(b) communication services;
(c) policy development services; or
(d) any other administrative service prescribed by regulation.
11.0.1(2) A department may provide internal support services to and receive internal support services from one or more other departments.
11.0.1(3) A department that provides internal support services must enter into an agreement in writing with the receiving department respecting the services.
11.0.1(4) Subsection (2) does not authorize a department to provide or receive internal support services if, under an Act of the Legislature, order of the Lieutenant Governor in Council or direction of Treasury Board,
(a) the department is precluded from providing the services;
(b) the department is required to obtain the services from a specific department or body; or
(c) another department or body is required to provide the services.
11.0.1(5) The Lieutenant Governor in Council may make regulations prescribing administrative services for the purpose of this section.
25 Subsection 63(1) of The Financial Administration Act is amended, in the part before clause (a), by adding ", on the recommendation of Treasury Board," after "may".
PART 5
COMING INTO FORCE
26(1) Except as otherwise provided in this section, this Act comes into force on the day it receives royal assent.
Part 1 — Health and Post Secondary Education Tax Levy
26(2) Part 1 comes into force on January 1, 2024.
26(3) Sections 5 and 9 to 13 are deemed to have come into force on January 1, 2023.
26(4) Section 14 comes into force on April 1, 2023. If this Act receives royal assent after that day, that section is deemed to have come into force on that day.
26(5) Section 15 is deemed to have come into force on April 7, 2022.