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S.M. 1986-87, c. 18
The Statute Law Amendment Taxation Act 1986
(Assented to September 10, 1986)
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
AMENDMENTS TO THE CORPORATION CAPITAL TAX ACT
Subsection 6(1) of The Corporation Capital Tax Act, chapter C226 of the Continuing Consolidation of the Statutes of Manitoba (in this Part referred to as "the Act"), is amended by striking out the words and figures "on or after July 1, 1976" in the 3rd line thereof and substituting therefor the words and figures "after June 30, 1976 and before July 1, 1986".
Section 6 of the Act is amended by adding thereto, immediately after subsection (1) thereof, the following subsection:
Tax payable after June 30, 1986.
" Every corporation shall for every fiscal year of the corporation ending after June 30, 1986, pay to the government at the time and in the manner provided in this Act and the regulations, a tax equal to 3/10 of 1% of the amount taxable of the corporation as at the close of that fiscal year of the corporation.
Subsection 6(2.2) of the Act is amended by adding thereto, immediately after the figures "1984" in the 2nd line thereof, the words and figures "and before July 1, 1986".
Section 6 of the Act is amended by adding thereto, immediately after subsection (2.2) thereof, the following subsection:
Tax rate for banks after June 30, 1986.
Not withstanding subsection (1.1) every bank shall, for every fiscal year of the bank ending after June 30, 1986, pay to the government at the time and in the manner provided in this Act and the regulations, a tax equal to 3% of the amount taxable as at the close of that fiscal year of the bank.
Subsection 6(3) of the Act is amended by adding thereto, immediately after the figures "1981" in the 3rd line thereof the words and figures "and before July 1, 1986".
Section 6 of the Act is amended by adding thereto, immediately after subsection (3) thereof, the following subsection:
Tax rate for trust and loan corporations after June 30, 1986.
Notwithstanding subsection (1.1) a trust and loan corporation, a trust corporation or a loan corporation shall, for every fiscal year of the corporation ending after June 30, 1986, pay to the government at the time and in the manner provided in this Act and the regulations, a tax equal to 9/10 of 1% of the amount taxable as at the close of that fiscal year of the corporation.
Subsection 14(7) of the Act is amended by adding thereto, immediately after the figures "1982" in the 2nd line thereof, the words and figures "and before July 1, 1986".
Subsecs. 14(9) and (10) added.
Section 14 of the Act is amended by adding thereto, immediately after subsection (8) thereof, the following subsections:
Where the amount taxable of a corporation as at the close of any fiscal year of the corporation ending after June 30, 1986 does not exceed $1,003,000., the tax payable by the corporation before adding any interest or penalties that may be applicable, and before allowing a deduction under section 15, shall not be greater than the difference between the amount taxable of the corporation as at the close of the fiscal year and $1,000,000.
Non-application of subsec. (9).
Subsection (9) does not apply to 2 or more corporations that are related persons if the aggregate of the amounts taxable of all those corporations at the close of their fiscal year ending in the same numeric year exceeds $1,003,000. and, for the purpose of determining the aggregate of the amounts taxable of those corporations, any corporation that has no amount taxable at the close of the fiscal year is excluded from the calculation of the aggregate of the amounts taxable.
Subsection 15(1) of the Act is amended
(a) by striking out the word and figure "and (3)" in the 1st line thereof, and substituting therefor the word and figures "(2.3), (3) and (3.1)"; and
(b) by adding thereto immediately after the word "year" in the 2nd line thereof the words and figures "ending after June 30, 1976 and before July 1, 1986".
Section 15 of the Act is amended by adding thereto, immediately after subsection (1) thereof, the following subsection:
Deduction for amount taxable outside Manitoba after June 30, 1986.
Subject to subsections (2), (2.1), (2.2), (2.3), (3) and (3.1), there may be deducted from the tax otherwise payable by a corporation for a fiscal year ending after June 30, 1986 an amount equal to 3/10 of 1% of that portion of the amount taxable of the corporation as at the close of the fiscal year that is determined under rules prescribed in the regulations to be used by the corporation in jurisdictions outside Manitoba.
Subsection 15(2.2) of the Act is amended by adding thereto immediately after the figures "1984" in the 2nd line thereof the words and figures "and before July 1, 1986".
Section 15 of the Act is amended by adding thereto, immediately after subsection (2.2), the following subsection:
Deduction for banks for years ending after June 30, 1986.
There may be deducted from the tax otherwise payable by a bank for any fiscal year of the bank ending after June 30, 1986 an amount equal to 3% of that portion of the amount taxable of the bank as at the close of the fiscal year that is determined under rules prescribed in the regulations to be used by the bank in jurisdictions outside Manitoba.
Subsection 15(3) of the Act is amended by adding thereto immediately after the figures "1981" in the 3rd line thereof the words and figures "and before July 1, 1986".
Section 15 of the Act is amended by adding thereto, immediately after subsection (3), the following subsection:
Deduction for trust and loan corporations after June 30, 1986.
There may be deducted from the tax otherwise payable by a trust and loan corporation, a trust corporation or a loan corporation for any fiscal year of the corporation ending after June 30, 1986, an amount equal to 9/10 of 1% of that portion of the amount taxable of the corporation as at the close of the fiscal year that is determined under rules prescribed in the regulations to be used by the corporation in jurisdictions outside Manitoba.
Subsection 17(5) of the Act is amended by adding thereto, immediately after the figures "1984" in the 2nd line thereof, the words and figures "and before July 1, 1985".
Section 17 of the Act is amended by adding thereto, immediately after subsection 17(5) thereof, the following subsections:
Instalments for corporations 1986-87.
In calculating the instalment of tax payable under clause (1)(a) for a corporation, for a fiscal year ending after June 30, 1986 and before July 1, 1987, the instalment required to be paid under clause (1)(a) shall be the amount of tax that would have been payable under this Act for the immediately preceding year if subsections 6(1.1) and 15(1.1) of this Act had been in force during that preceding fiscal year.
Instalments for banks 1986-87.
In calculating the instalment of tax payable under clause (1)(a) for a bank, for a fiscal year ending after June 30, 1986 and before July 1, 1987, the instalment required to be paid under clause (1)(a) shall be the amount of tax that would have been payable under this Act for the immediately preceding fiscal year if subsections 6(2.3) and 15(2.3) of this Act had been in force during that preceding fiscal year.
Instalments for trust and loan corporations 1986-87.
In calculating the instalment of tax payable under clause (1)(a) for a trust and loan corporation, a trust corporation or a loan corporation, for a fiscal year ending after June 30, 1986 and before July 1, 1987, the instalment required to be paid under clause (1)(a) shall be the amount of tax that would have been payable under this Act for the immediately preceding fiscal year if subsections 6(3.1) and 15(3.1) of this Act had been in force during that preceding fiscal year.
This Part shall be deemed to have come into force on July 1, 1986.
AMENDMENTS TO THE GASOLINE TAX ACT
Clause 2(c. l) of The Gasoline Tax Act, chapter G40 of the Continuing Consolidation of the Statutes of Manitoba (in this Part referred to as "the Act"), is amended by striking out the words and figure in the 4th line "containing not more than 1% water" and substituting therefor the words and figures, "containing by volume at least 98% ethanol. "
Subsection 11(8) of the Act is amended by adding immediately after the word "tax" where it appears in the 7th and 15th lines thereof in each case the words "or fee".
Section 21 of the Act is amended by adding thereto immediately after subsection (1) thereof the following subsection:
Inspection re: fleet distance.
Any officer appointed by the minister under this Act and duly authorized for the purpose or any peace officer may at any reasonable time and without warrant examine all the books and records of a licensed purchaser to determine the total fleet distance travelled and the total fuel purchased.
This Part comes into force on the day this Act receives the royal assent.
AMENDMENTS TO HOMEOWNERS TAX AND INSULATION ASSISTANCE ACT
Section 13 of The Homeowners Tax and Insulation Assistance Act, chapter H75 of the Continuing Consolidation of the Statutes of Manitoba (in this Part referred to as "the Act"), is amended by adding at the end thereof the following words "or installing energy conservation options and air quality and ventilation devices".
Section 14 of the Act is amended by adding at the end the following words "or such greater amount as may be prescribed by regulation".
Subsection 15(1) of the Act is amended by adding immediately after the word "Winnipeg" the words "or an agency of the government or a crown corporation".
Subsection 15(2) of the Act is amended by adding immediately after the word "minister" in the 2nd line, the words "an agency of the government or a crown corporation".
Subsection 16(1) of the Act is amended
(a) by adding immediately after the word "Winnipeg" in the 2nd and 9th lines, in each case the words "or the agency of the government or the crown corporation"; and
(b) by adding immediately after the word "government" in the 8th line, the word "or".
Subsection 16(3) of the Act is amended by striking out the word "or" in the 3rd line and by adding immediately after the word "Winnipeg" in the 3rd line, the words "the agency of the government or the crown corporation".
Clause 18(f) of the Act is repealed and the following clause is substituted therefor:
(f) prescribing kinds of insulation, energy conservation options and air quality and ventilation devices and the methods of installing them in respect of which loans may be made under Part III;.
Clause 18(g) of the Act is repealed and the following clause is substituted therefor:
(g) subject to section 13, prescribing the maximum amount and the terms and conditions of loans made under Part III;.
This Part comes into force on the day this Act receives the royal assent.
AMENDMENTS TO THE INCOME TAX ACT
Subsection 4(3.6) of the Income Tax Act, chapter I10 of the Continuing Consolidation of the Statutes of Manitoba (in this Part referred to as "the Act") is amended by striking out the words "three times F" in the last two lines thereof, and substituting therefor the figures "$100. "
Subsection 4(6) of the Act is amended
(a) by striking out the word "and" at the end of sub-sub-clause (b)(i)(C) thereof;
(b) by adding thereto at the end of sub-sub-clause (b)(i)(D) thereof, the word "and";
(c) by adding thereto, immediately after sub-sub-clause (b)(i)(D) thereof, the following sub-sub- clause:
(E) the individual's income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect thereof under paragraphs 122.3(1)(c) and (d) of the federal Act for the year,;
(d) by striking Out the word "taxpayers" in the first line of sub-clause (b)(ii) thereof, and substituting therefor the word "taxpayer's"; and
(e) by striking out all that portion of sub-clause (b)(ii) following sub-sub-clause (B) thereof, and substituting therefor the following:
"minus any amounts deductible by the individual under paragraph 110(1)(d) or (f), paragraph 111(1)(b) or section 112 of the federal Act for the year or such period or periods, as the case may be".
Subsecs. 5(1), (1.1), (1.2) rep. and sub.
Subsections 5(1), 5(1.1), and 5(1.2) of the Act are repealed and the following subsections are substituted therefor:
Calculation of tax payable by corporation.
The tax payable by a corporation under section 3 is
(a) for the taxation years 1970, 1971, 1972, 1973, and 1974, 13%;
(b) for the taxation years 1975, 1976, 1977 and 1978, 13%;
(c) for the taxation years 1979, 1980, 1981 and 1982, 15%;
(d) for the taxation years 1983, 1984, and 1985, 16%;
(e) for the taxation year 1986 and each subsequent taxation year, 17%; of the corporation's taxable income earned in the year in Manitoba.
Application of subsec. (1) in 1986.
Notwithstanding clause 1(e), the tax payable by a corporation under section 3 for the taxation year 1986 shall be calculated in accordance with the following formula:
FORMULA
T = (.16 x A x I)/C + (.17 x B x I)/C
In this formula:
T is the tax payable by the corporation under section 3 for the 1986 taxation year;
A is the number of days in the 1986 taxation year of the corporation that are in the year 1985;
I is the taxable income earned in Manitoba by the corporation in its 1986 taxation year;
B is the number of days in the 1986 taxation year of the corporation that are in 1986;
C is the total number of days in the corporation's taxation year.
Subsection 5(1.21) of the Act is amended by striking out the word "The" at the beginning of the first line thereof, and substituting therefor the words, figure and letter "Notwithstanding clause (1)(d), the".
Subsection 5(1.22) of the Act is repealed.
Subsection 5(1.23) of the Act is amended by striking out the words, figures and symbols "subsections (1.1), (1.2), (1.21) and (1.22)" in the second line thereof and substituting therefor the words, figures and symbols "clauses 1(b), (c), (d) and (e)".
Subsection 5(1.3) of the Act is amended by striking out the word and symbol "subsection (1.1)" in the second line thereof, and substituting therefor the word and symbol "clause 1(b)".
Subsection 5(1.6) of the Act is amended by striking out clause (d) thereof and substituting therefor the following:
(d) in 1983, 1984 and 1985 equal to 6%; and
(e) in 1986 and thereafter, equal to 7%; of the taxable income earned in Manitoba on which a small business deduction is allowed under subsection 125(1) of the federal Act.
Section 5 of the Act is further amended by adding immediately after subsection (1.91) thereof, the following subsection:
Application of subsection (1.6) in 1986.
In applying subsection (1.6) to a corporation that has a taxation year that ends in 1986 but before December 31, 1986, the deduction allowed under subsection (1.6) in respect of the corporation's taxation year that ends in 1986 shall be calculated in accordance with the following formula:
FORMULA
D = (.06xAxI)/C + (.07xBxI)/C
In this formula:
D is the deduction allowed under subsection (1.6) in 1986 for the 1986 taxation year;
A is the number of days in the 1986 taxation year of the corporation that are in the year 1985;
I is the taxable income earned in Manitoba by the corporation in its 1986 taxation year on which a small business deduction is allowed under subsection 125(1) of the federal Act;
B is the number of days in the 1986 taxation year of the corporation that are in 1986;
C is the total number of days in the corporation's taxation year.
Clause 6(1)(a) of the Act is amended by striking out the figures "1983" in the second line, and substituting therefor the words and figures "taxation years 1983 to 1985 both inclusive, or 17% for the 1986".
Section 6 of the Act is further amended by adding immediately after subsection (1.1) thereof, the following subsection:
Application of subsec. 6(1) for 1986.
In applying subsection (1) to the 1986 taxation year of a corporation, the rate of 17% in clause (a) thereof shall be read as 16% in respect of the proportion of the corporation's taxation year which includes days in calendar year 1985, and as 17% in respect of the proportion of the corporation's taxation year which includes days in calendar year 1986.
Clause 6.1(1)(a) of the Act is amended by striking out the words and symbol "subsection (1) of".
Clause 9.1(2)(b) of the Act is amended by striking out the numbers and symbol "127(10)" in the third line thereof and substituting therefor the numbers and symbol "127(9)".
Subsection 9.1(3) of the Act is amended by deleting the word "clause" in the third line thereof, and substituting therefor the word "sub-clause".
Section 9.1 of the Act is amended by adding immediately after subsection (6) thereof, the following subsection.
The investment tax credit described in this section may not be claimed by an individual to whom section 11 applies.
Subsection 11.1(4) of the Act is amended by adding immediately after the word and figures "December 31, 1983" in the 3rd line thereof, the words and figures "and before January 1, 1985, ".
Subsection 12(1) of the Act is amended by striking out all the words in the first 2 lines thereof, and substituting therefor, the following:
"A return for each taxation year in the case of a corporation (other than a corporation that was a registered charity throughout the year) and for each taxation year for which a tax is payable, or would be payable if this Part were read without reference to sections 127.2 and 127.3 of the federal Act, in the case of an individual, ".
Subsection 14(4) of the Act is amended
(a) by striking out sub-clause (a)(ii) thereof, and substituting therefor the following sub-clause;
(ii) has filed with the treasurer a waiver in prescribed form within 3 years from the day of mailing of a notice of an original assessment or a notification that no tax is payable for a taxation year, and
(b) by striking out clause (b) thereof and substituting therefor the following clause;
(b) within 3 years from the day referred to in sub-clause (a)(ii), in any other case;.
Subsection 14(4.1) of the Act is amended by striking out all that portion proceeding clause (a) thereof and substituting therefor the following:
"Notwithstanding subsection (4), there shall not be included in computing the income of a taxpayer, for the purposes of any reassessment, additional assessment or assessment of tax, interest or penalties under this Part that is made after the expiration of 3 years from the day referred to in sub-clause (4)(a)(ii), any amount that was not included in his income for the purposes of an assessment of tax under this Part made before the expiration of 3 years from that day and".
Section 14 of the Act is amended by adding immediately after subsection (4.1) thereof, the following subsection:
Re-assessment where notice of revocation.
Where the treasurer would, but for this subsection, be entitled to reassess, make an additional assessment or assess tax, interest or penalties by virtue only of the filing of a waiver under sub-clause (4)(a)(ii), the treasurer may not make such reassessment, additional assessment or assessment after the day that is 6 months after the date on which a notice of revocation of the waiver in prescribed form is filed.
Section 18 of the Act is amended by adding immediately after subsection (5) thereof, the following subsection:
Where the tax payable under this Part (computed without reference to sections 127.2 and 127.3 of the federal Act) by a corporation for a taxation year or its first instalment base for the year is not more than $1,000., the corporation may, instead of paying the instalments required by clause (1)(a) for the year, pay to the treasurer, pursuant to clause (1)(b), all of its tax as estimated by it under section 13 for the year.
Subsection 18(6) of the Act is amended by striking out the words, figures and symbol "subsection (3) of section 5" in the third line thereof and substituting therefor the words, figures and symbol "subsection 5(2)".
Section 21 of the Act is amended by adding immediately after subsection (2) thereof, the following subsection:
Where the aggregate of all amounts each of which is an amount of interest payable by a taxpayer under subsection (2) or under subsection 161(2) of the federal Act does not exceed $25. for a taxation year, the treasurer shall not assess such interest.
Subsection 24(1) of the Act is amended
(a) by striking out the words "required to be filed by a taxpayer" in the first line thereof and substituting therefor the words "of a taxpayer's income";
(b) by striking out the word "four" in the second line thereof and in clause (b) thereof and substituting therefor in each case the figure "3"; and
(c) by striking out the word "upon" in the first line of clause (a) thereof and substituting therefor the words "on or after".
Subsection 24(2) of the Act is repealed, and the following subsection is substituted therefor:
Application of refund on other liabilities.
Instead of making a refund or repayment that might otherwise be made under this section, the treasurer may, where the taxpayer is liable or about to become liable to make any payment under this Act, apply the amount of the refund or repayment to that other liability and notify the taxpayer of that action.
Section 24 of the Act is further amended by adding immediately after subsection (4) thereof, the following subsection:
Where the court, the Manitoba Court of Appeal, or the Supreme Court of Canada has, on the disposition of an appeal in respect of taxes, interest or a penalty payable under this Act by a taxpayer resident in Canada,
(a) referred an assessment back to the treasurer for reconsideration and reassessment;
(b) varied or vacated an assessment; or
(c) ordered the treasurer to repay tax, interest or penalties; the treasurer shall with all due dispatch, whether or not an appeal from the decision of the court has been or may be instituted,
(d) where the assessment has been referred back to him, reconsider the assessment and make a reassessment in accordance with the decision of the court unless otherwise directed in writing by the taxpayer;
(e) refund any overpayment resulting from the variation, vacation or reassessment; and
(f) where clause (c) is applicable, repay any tax, interest or penalties as ordered; and the treasurer may repay any tax, interest or penalties or surrender any security accepted therefor by him to any other taxpayer who has filed an objection or instituted an appeal if, having regard to the reasons given on the disposition of the appeal, he is satisfied that it would be just and equitable to do so, but for greater certainty, the treasurer may, in accordance with the provisions of this Act, the Queen's Bench Act, the Court of Appeal Act, or the Supreme Court Act (Canada) as they relate to appeals from decisions of the court, appeal from the decision of the court notwithstanding any variation or vacation of any assessment by the court or any reassessment made by the treasurer under clause (d), and any such appeal from a decision of the court shall proceed as if it were an appeal from the assessment that was referred back, varied or vacated.
Subsection 25(4) of the Act is amended by striking out the word "four" in the second line thereof and substituting therefor the figure "3".
Clause 26(1)(b) of the Act is amended by striking out the words "one hundred and eighty" in the first line thereof, and substituting therefor the figure "90".
Sub-clause 26(2)(b)(i) of the Act is amended by striking out all the words, figures and symbols "subsection (3) of section 5, or" and substituting therefor "subsection 5(2), or".
Subsection 32(3) of the Act is repealed, and the following subsections are substituted therefor:
The treasurer may, if he considers it advisable in a particular case, accept security for payment of any amount that is or may become payable under this Act.
Where at any time a taxpayer requests in writing that the treasurer surrender any security accepted by the treasurer under subsection (3), the treasurer shall surrender the security to the extent that the amount thereof exceeds the amount for which the security was accepted that is payable at that time.
Subsection 40(6) of the Act is amended by striking out all that portion following clause (b) thereof, and substituting therefor the following:
"together with interest on the amount that should have been deducted or withheld, at the rate per annum prescribed for the purposes of subsection 227(8) of the federal Act".
Section 60 of the Act is repealed and the following section is substituted therefor:
In this Part,
"deputy head" means the deputy minister of the department charged with the administration of this Part;
"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;
"federal Act" means the Tax Rebate Discounting Act (Canada);
"minimum consideration" in relation to a refund of tax, means an amount equal to
(i) where the refund of tax is equal to or less than $300., 85% of the refund of tax, or
(ii) 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; "minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Part; "refund of tax" means the amount that a taxpayer is entitled to receive
(i) as an overpayment of tax paid under The Income Tax Act (Manitoba) or the Income Tax Act (Canada) or collected pursuant to an agreement entered into under section 7 of the Federal Provincial Fiscal Arrangements and Established Programs Financing Act, 1977, or
(ii) a payment to an individual by virtue of an agreement referred to in sub-clause (i) that is other than a refund of an overpayment of tax paid or collected, or
(iii) an overpayment of unemployment insurance premiums paid under the Unemployment Insurance Act, (Canada), or (iv) an overpayment of contributions paid under the Canada Pension Plan, and any interest paid on any of the overpayment or payment;
"taxpayer" means any person who is entitled to a refund of tax.
All manners of acquiring right included.
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.
The Act is further amended by adding thereto, immediately after section 60 thereof, the following section:
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.
Subsection 61(2) of the Act is amended by adding thereto, immediately after the word "form" in the third line thereof, the words "and shall pay the prescribed registration fee".
Subsection 62(1) of the Act is repealed and the following subsection is substituted therefor:
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.
Subsection 62(3) of the Act is amended by striking out the words, figures and letter "or a power as set out in clause 60(a)" and substituting therefor the words "to a refund of tax".
Subsection 62(4) of the Act is repealed and the following subsections are substituted therefor:
Payment of excess to taxpayer.
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.
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 for Canada 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.
Where a discounter has paid an excess amount to a taxpayer under subsection (4), or to the Receiver General for Canada 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.
Subsection 63(1) of the Act is repealed and the following subsection is substituted therefor:
Discounter to furnish certain information to taxpayer.
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 under the federal Act;
(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 under the federal Act; 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.
Clause 63(2)(a) of the Act is repealed and the following clause is substituted therefor:
(a) copies of Schedules I and II under the federal Act, furnished to taxpayers; and.
Subsection 63(3) of the Act is repealed.
Subsection 64(1) of the Act is amended by striking out the words "Department of Finance" in the second line thereof and substituting therefor the words "minister's department".
Section 66 of the Act is amended
(a) by striking out all the words preceding clause (a) thereof and substituting therefor the words "The Lieutenant Governor in Council may make regulations";
(b) by adding at the end of clause (c) thereof, the words "and the fee to be charged for each registration"; and
(c) by striking out the words "he deems" in the first line of clause (e) thereof and substituting therefor the word "are".
Subsection 67(4) of the Act is amended by adding at the end thereof the following words "and no part of the registration fee shall be refunded or refundable to the discounter".
Schedule A of the Act is repealed.
This Part comes into force on the day the Act receives the royal assent but
(a) sections 52 and 59 shall be deemed to have come into force on April 23, 1970;
(b) section 42 shall be deemed to have come into force on January 1, 1976;
(c) sections 47, 48, 49 and 57 shall be deemed to have come into force on January 1, 1983;
(d) section 54 applies for the 1983 and subsequent taxation years;
(e) sections 32, 46, 51 and 53 shall be deemed to have come into force on January 1, 1984;
(f) sections 50, 55, 56, 60 and 61 shall be deemed to have come into force on February 15, 1984;
(g) sections 43, 44 and 45 shall be deemed to have come into force on April 25, 1984;
(h) sections 31, 33, 34, 35, 36, 37, 38, 39, 40, 62, 65, 66, 67 and 68 shall be deemed to have come into force on January 1, 1986.
AMENDMENTS TO THE MINING TAX ACT
Subsection 1(1) of The Mining Tax Act, chapter Ml25 of the Continuing Consolidation of the Statutes of Manitoba (in this Part referred to as "the Act"), is amended by adding immediately after clause (t) the following clause:
(t.l) "qualified exploration expenses" where used in section 12 means exploration expenses incurred to discover new ore bodies.
Subsection 8(2) of the Act is amended by striking out the words "book value of that asset as shown in the books of the operator" and substituting therefor the words "undepreciated balance of that asset".
Subsection 8(3) of the Act is amended by adding thereto, immediately after the words "deemed to be" in the 3rd line thereof, the words "the lesser of the undepreciated balance or".
Subsection 8(4) of the Act is amended by striking out the words "book value" in the 3rd line thereof and substituting therefor the words "undepreciated balance".
Subsection 8(5) of the Act is amended by adding thereto, immediately after the word "at", in the 4th line thereof, the words "the lesser of the undepreciated balance or".
Section 8 of the Act is amended by adding immediately after subsection (5) the following subsection:
Calculation of undepreciated balance.
For the purposes of this section, the undepreciated balance means the undepreciated balance as defined in subsection 1(1) less any allowance for depreciation that has been claimed or could be claimed by the operator under the mining tax or royalty Act of any other jurisdiction.
Subsection 12(2) of the Act is amended by adding immediately after the word and figures "December 31, 1978" the words and figures "and before January 1, 1986".
Section 12 of the Act is amended by adding after subsection (2) thereof the following subsections:
Deduction of exploration expenses.
Subject to subsection (4), in calculating the profit of an operator in a fiscal year there may be deducted qualified exploration expenses approved by the director that were incurred by the operator after December 31, 1985, whether before or after the operator commenced mining activities in the province and that have not been deducted under this section for the purpose of calculating the profit of the operator in any previous fiscal year.
Where exploration expenses are incurred within or in the immediate vicinity of an operating mine they shall not be deducted under subsection (3) unless the director has, on application by the operator within 1 year of the exploration expenses being incurred, declared in writing these expenses to be qualified exploration expenses.
Subsection 15(1) of the Act is amended by adding thereto, at the end thereof, the words "but in no case shall a deduction be allowed for any expense or allowance that has been claimed or could be claimed by the operator as a deduction under the mining tax or royalty Act of any other jurisdiction".
Subsection 15(3) of the Act is amended by adding thereto, at the end thereof, the words "but in no case shall an allowance for processing be allowed where a processing allowance has been claimed or could be claimed by the operator under the mining tax or royalty Act of any other jurisdiction".
Clause 16(1)(b) of the Act is repealed and the following clauses are substituted therefor:
(b) for interest; or
(b.1) for dividends upon capital stock; or.
This Part shall be deemed to have come into force on January 1, 1986.
AMENDMENTS TO THE MOTIVE FUEL TAX ACT
Clause 2(k) of The Motive Fuel Tax Act, chapter M220 of the Continuing Consolidation of the Statutes of Manitoba (in this Part referred to as "the Act") is repealed and the following clause is substituted therefor:
(k) "motive fuel" means any gas fuel or liquid fuel that is not gasoline within the meaning of The Gasoline Tax Act, and that can be used for operating an internal combustion engine or machine, or for heating, and includes kerosene, propane, butane, natural gas, manufactured gas that is not solely propane or butane, crude oil and distillate but does not include
(i) natural or manufactured gas that is used for heating and that is delivered to a purchaser by means of a gas pipe distribution system, or
(ii) propane or butane that is burned in any form of mechanical lighter, torch, camp stove, lantern or similar contrivance;.
Subsection 3(7) of the Act is amended by
(a) striking out the word and figures "and (8.1)" in the first line and substituting therefor the word and figures "(8.1) and (8.4)"; and
(b) adding thereto in the 2nd last line immediately after the word "propane", the words "natural gas".
Subsection 3(8) of the Act is repealed and the following subsection is substituted therefor:
Tax on purchaser in respect of heating.
Subject to subsection (8.1), every purchaser of bunker fuel, crude oil or manufactured gas that is not solely propane or butane, or marked or coloured motive fuel who uses it solely for heating, shall pay to Her Majesty in right of Manitoba,
(a) in the case of bunker fuel or crude oil, a tax that is equal to 6% of the price of bunker fuel or crude oil as determined under subsection (13), but in no event less than 4/10 of 1 cent per litre, on bunker fuel or crude oil received by him;
(b) in the. case of marked or coloured motive fuel, a tax that is equal to 6% of the price of marked or coloured motive fuel as determined under subsection (13), but in no event less than 5/10 of 1 cent per litre, on marked or coloured motive fuel received by him; and
(c) in the case of manufactured gas that is not solely propane or butane, a tax that is equal to 6% of the price of manufactured gas as determined under subsection (9.2) on manufactured gas received by him.
Subsection 3(8.1) of the Act is amended by adding immediately after the figure "(8)" the word and figures "or (8.4)".
Subsection 3(8.2) of the Act is amended by adding immediately after the figure "(8)" in the first line thereof the word and figures "or (8.4)".
Section 3 of the Act is amended by adding thereto immediately after subsection (8.3) thereof the following subsection:
Tax on propane and butane used for heating and other uses.
Subject to subsections (8.1) and (8.2), every purchaser of propane and butane who uses this fuel for heating or uses other than those described in subsections (9) and (9.1), shall pay to Her Majesty in right of Manitoba, a tax that is equal to 6% of the price of propane and butane as determined under subsection (13) but in no event less than 5/10 of 1 cent per litre, on propane and butane received by him.
Section 3 of the Act, is amended by adding immediately after subsection (9.4) thereof the following subsection:
Tax on natural gas used for internal combustion engines.
Notwithstanding the definition of motive fuel in section 2 but subject to subsection (7), every purchaser of natural gas that is used for operating an internal combustion engine shall pay to Her Majesty in right of Manitoba a tax at the rate of 7 cents per kilogram received by the purchaser.
Clause 3(13)(d) of the Act is repealed and the following clauses are substituted therefor:
(d) clause (8)(b) is 75%;
(d.l) subsection (8.4) is 60%;.
Subsection 3(14) of the Act is amended
(a) by adding immediately after the figure "(8)" in the 1st line the figure "(8.4)";
(b) by striking out the word, figure and letter "clause 8(b)" in clause (e) thereof and substituting therefor the word and figures "subsection (8.4)"; and
(c) by striking out the figures "4.8" in clause (f) thereof and substituting therefor the figures "5.3".
Subsection 3(15) of the Act is amended by adding immediately after the figure "(8)" in the last line thereof the figures "(8.4)".
Section 5 of the Act is amended by adding thereto immediately after subsection (1.2) thereof the following subsection:
Licence to sell natural gas for internal combustion engines.
No person shall sell natural gas to purchasers for use in internal combustion engines, or carry on business or act as a retail dealer in the province unless he is a holder of a subsisting licence for selling natural gas used for operating an internal combustion engine issued by the minister and is a collector or a deputy collector.
Subsections 5(10) and (11) of the Act as enacted by section 48 of chapter 69 of the Statutes of Manitoba 1980 are repealed.
Section 5 of the Act is amended by adding immediately after subsection (12) the following subsections:
Blending by dealer prohibited.
Any dealer who blends marked or coloured motive fuel with motive fuel and sells the resultant product for use in an internal combustion engine, or in a railway locomotive, is guilty of an offence.
Sale of heating fuel for use in internal combustion engines prohibited.
Any dealer who knowingly sells marked or coloured motive fuel with a rate of tax calculated in accordance with subsection 3(8), for use in an internal combustion engine is guilty of an offence.
Subsection 11(8) of the Act is amended by adding immediately after the word "tax" in the 7th and 15th lines thereof, in each case, the words "or fee".
Section 21 of the Act is amended by adding immediately after subsection (1) thereof the following subsection:
Inspection re: fleet distance.
Any officer appointed by the minister under this Act and duly authorized for the purpose or any peace officer may at any reasonable time and without warrant examine all the books and records of a licensed purchaser as to the total fleet distance travelled and the total fuel purchased.
Subsection 27(2) of the Act is amended by striking out the words "retail dealer or collector" and substituting therefor the words "dealer, collector or deputy collector".
This Part comes into force on the day this Act receives the royal assent but sections 87 to 96 shall be deemed to have come into force on June 1, 1986.
PART VII
AMENDMENTS TO THE REVENUE ACT, 1964
Sub-clause 2(h)(ii) of The Revenue Act, 1964, chapter R140 of the Continuing Consolidation of the Statutes of Manitoba (in this Part referred to as "the Act") is amended by adding thereto, immediately after the word "system" in the 3rd line thereof, the words "but does not include natural and manufactured gas that is used as a fuel in an internal combustion engine".
Subsection 3(2) is amended by striking out the word "a" in the 2nd line thereof and substituting therefor the words "an all electrically heated".
Subsection 3(2.1) of the Act is amended by striking out the words "purchased by a person is used solely to heat farm buildings, or is used" in the 2nd line thereof and substituting therefor the words "is purchased solely to heat farm buildings or".
Subsection 3(2.2) of the Act is amended by striking out the figures and word "(3) and (4)" in the last line thereof and substituting therefor the figures and word "(4) and (5)".
Subsection 3(5) of the Act is amended by striking out the figures and word "(2.2) or (3)" in the 3rd line thereof and substituting therefor the figures and word "(3) or (3.1)".
This Part comes into force on the day this Act receives the royal assent but section 103 shall be deemed to have come into force on June 1, 1986.
AMENDMENTS TO THE TOBACCO TAX ACT
Subsection 3(1) of The Tobacco Tax Act, chapter T80 of the Continuing Consolidation of the Statutes of Manitoba (in this Part referred to as "the Act"), is amended
(a) by striking out the figures and sign "3.10" in the 1st line of clause (a) thereof and substituting therefor the figures and sign "4.1¢";
(b) by striking out the figures and sign "00" in the 1st line of clause (n) thereof and substituting therefor the figures and sign "220"; and
(c) by striking out the figures and sign "1.20" in the 1st line of clause (o) thereof and substituting therefor the figures and sign "1.60".
Section 9(5) of the Act is amended
(a) by adding thereto immediately after the word "sold" in the 2nd line thereof the words "or delivered"; and
(b) by adding thereto immediately after the word "sale" in the 4th line thereof the words "or delivery".
Subsection 13(3) of the Act is amended by adding thereto, at the beginning thereof, the words "Subject to subsection (7), ".
Section 13 of the Act is further amended by adding thereto, immediately after subsection (6) thereof, the following subsection:
Minister may refund excess payments.
Where a person has remitted or paid a greater amount of money than was required by this Act to be remitted or paid by the person, the minister may refund the excess payment in accordance with the regulations.
Section 25 of the Act is amended by adding immediately after clause (s) thereof, the following clause:
(t) prescribe the terms and conditions under which a refund may be made by the minister, the time within which an application for a refund may be made, the manner of making an application for the refund and the evidence to be furnished in support of the application for the refund.
This Part comes into force on the day this Act receives the royal assent but
(a) section 109 shall be deemed to have come into force on June 16, 1986; and
(b) sections 111, 112 and 113 come into force on September 1, 1986.
AMENDMENTS TO THE RETAIL SALES TAX ACT
Subsection 12(4) of The Retail Sales Tax Act, chapter R150 of the Continuing Consolidation of the Statutes of Manitoba (in this Part referred to as "the Act") is amended by adding immediately after the word "tax" in the 2nd line thereof the word "fee".
Subsection 12(5) of the Act is amended by adding immediately after the word "tax" in the 7th and 15th lines thereof, in each case, the words "or fee".
This Part comes into force on the day this Act receives the royal assent.
PART X
STATUTE LAW AMENDMENT (TAXATION) ACT (1985)
Cls. 52(1)(b) and (c) rep. and sub.
Subsection 52(1) of the French version of the Statute Law Amendment (Taxation) Act (1985), chapter 48 of the Statutes of Manitoba, 1985 is amended by repealing clauses (b) and (c) thereof and substituting therefor the following clauses: b) de la définition d'"acheteur autorisé" de la Loi de la taxe sur l'essence, figurant à l'article 1.
c) des articles 5, 6, 7, 8, 11, 12, 13, 14, 15, 30, 34, 43, 44, 45 et 46.
This Part shall be deemed to have come into force on October 1, 1985.