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The Statute Law Amendment Taxation Act, 1987

S.M. 1987-88, c. 49

The Statute Law Amendment Taxation Act, 1987

(Assented to July 17, 1987)

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

PART I

AMENDMENTS TO THE CORPORATION CAPITAL TAX ACT

Subsec. 6(1.2) added.

1

Section 6 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 adding, immediately after subsection (1.1), the following subsection:

Surtax payable after June 30, 1987.

6(1.2)

There shall be added to the tax otherwise payable by a corporation under subsection (1.1), for every fiscal year of the corporation ending after June 30, 1987, an amount equal to 2/10 of 1% of that portion of the amount taxable of the corporation in excess of $10, 000, 000. as at the close of that fiscal year of the corporation.

Subsec. 6(2.3) am.

2

Subsection 6(2.3) of the Act is amended by striking out "subsection (1.1)" and substituting therefor "subsections (1.1) and (1.2)".

Subsec. 6(3.1) am.

3

Subsection 6(3.1) of the Act is amended by adding immediately after "1986" the phrase "and before July 1, 1987".

Subsec. 6(3.2) added.

4

Section 6 of the Act is amended by adding immediately after subsection (3.1) the following subsection:

Tax rate for trust and loan corporations after June 30, 1987.

6(3.2)

Notwithstanding subsections (1.1) and (1.2), a trust and loan corporation, a trust corporation or a loan corporation shall, for every fiscal year of the corporation ending after June 30, 1987, 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 corporation.

Subsec. 15(1.1) am.

5

Subsection 15(1.1) of the Act is amended by striking out "(3) and (3.1)" and substituting therefor "(3), (3.1) and (3.2)".

Subsec. 15(1.2) added.

6

Section 15 of the Act is amended by adding immediately after subsection (1.1) the following subsection:

Surtax deduction after June 30, 1987.

15(1.2)

Subject to subsections (2), (2.1), (2.2), (2.3), (3), (3.1) and (3.2), in addition to the amount deductible under subsection (1.1), there may be deducted from the tax otherwise payable by a corporation for a fiscal year ending after June 30, 1987 an amount equal to 2/10 of 1% of that portion of the amount taxable of the corporation in excess of $10, 000, 000. 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.

Subsec. 15(3.1) am.

7

Subsection 15(3.1) of the Act is amended by adding, immediately after "1986", the phrase "and before July 1, 1987".

Subsec. 15(3.2) added.

8

Section 15 of the Act is amended by adding, immediately after subsection (3.1), the following subsection:

Deduction for trust and loan corporations after June 30, 1987.

15(3.2)

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, 1987, an amount equal to 3% 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.

Subsecs. 17(9) and (10) added.

9

Section 17 of the Act is amended by adding, immediately after subsection (8), the following subsections:

Instalments for corporations 1987-88.

17(9)

In calculating the instalment of tax payable under clause (1)(a) for a corporation, for a fiscal year ending after June 30, 1987 and before July 1, 1988, 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(1.2) and 15(1.2) had been in force during that preceding fiscal year.

Instalments for trust and loan corporations 1987-88.

17(10)

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, 1987 and before July 1, 1988, 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(3.2) and 15(3.2) had been in force during that preceding fiscal year.

Commencement.

10

This Part shall come into force July 1, 1987 or, if this Act receives the royal assent after that date, shall be deemed to have come into force on July 1, 1987.

PART II

AMENDMENTS TO THE HEALTH AND POST SECONDARY EDUCATION TAX LEVY ACT

Subsec. 3(1) am.

11

Subsection 3(1) of the Health and Post Secondary Education Tax Levy Act, chapter H24 of the Continuing Consolidation of the Statutes of Manitoba (in this Part referred to as "the Act") is amended by adding immediately after "1982" the phrase "and before April 1, 1987".

Subsec. 3(1.1) am.

12

Subsection 3(1.1) of the Act is amended by adding immediately after "1983" the phrase "and before January 1, 1987".

Subsec. 3(1.2) am.

13

Subsection 3(1.2) of the Act is amended by adding immediately after "1983" the phrase "and before January 1, 1987".

Subsec. 3(1.3) added.

14

Section 3 of the Act is amended by adding immediately after subsection (1.2) the following subsection:

Imposition of tax after March 31, 1987.

3(1.3)

Subject as hereinafter provided, every employer shall pay to the government at the time and in the manner provided in this Act and the regulations, for every month ending after March 31, 1987, a tax equal to 2.25% of the remuneration paid in that month

(a) to or on behalf of each of his employees who reports for work at a permanent establishment of the employer in Manitoba; and

(b) to or on behalf of each of his employees who is not required to report for work at any permanent establishment of the employer but whose remuneration is paid from or through a permanent establishment of the employer in Manitoba.

Subsecs. 3(1.4) and (1.5) added.

15

Section 3 of the Act is further amended by adding immediately after subsection (1.3) the following subsections:

Exemption after December 31, 1986.

3(1.4)

Where the total amount of remuneration paid by an employer to his employees is less than $100, 000. in any calendar year ending after December 31, 1986, no tax is payable by the employer under subsection 3(1.3) for that calendar year.

Notch provision after December 31, 1986.

3(1.5)

Where the total amount of remuneration paid by an employer to his employees, in any calendar year ending after December 31, 1986 is not less than $100, 000. and not greater than $150, 000., the tax payable by the employer under subsection 3(1.3), before adding any interest or penalties that may be applicable, shall be 6.75% of the remuneration paid in excess of $100, 000. but not exceeding $150, 000.

Subsec. 5(1.1) am.

16

Subsection 5(1.1) of the Act is amended by adding immediately after "1983" the phrase "and before January 1, 1987".

Subsec. 5(1.2) added.

17

Section 5 of the Act is amended by adding immediately after subsection (1.1) the following subsection:

Annual declaration of salaries paid after December 31, 1986.

5(1.2)

Notwithstanding subsection (1), every employer that has a permanent establishment in Manitoba, with total annual remuneration paid to employees of less than $100, 000. in any calendar year ending after December 31, 1986, shall, without notice or demand, file with the minister, on or before the last day of the second month immediately following the end of the calendar year, a declaration of the total remuneration paid for that calendar year.

Commencement.

18(1)

Sections 11 and 14 shall be deemed to have come into force on April 1, 1987.

Commencement.

18(2)

Sections 12, 13, 15, 16 and 17 shall be deemed to have come into force on January 1, 1987.

PART III

AMENDMENTS TO THE INCOME TAX ACT

Sec. 2 am.

19

Section 2 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 adding immediately after subsection (5) the following subsection:

Calculation of interest.

2(6)

Interest computed under any of subsections 21(1), (2) and (9), 24(3), (3.1) and (4) and 40(6) and (7) shall be compounded daily, and, where interest is computed on an amount under any of those provisions and is unpaid on the day it would, but for this subsection, have ceased to be computed under that provision, interest at the rate provided by that provision shall be computed and compounded daily on the unpaid interest from that day to the day it is paid.

Subsecs. 4(3.31), (3.32) and (3.33) am.

20

Subsections 4(3.31), (3.32) and (3.33) of the Act are amended by striking out in each case "For the 1983 and subsequent taxation years" and substituting therefor in each case "For the 1983 to 1987 taxation years".

Subsec 4(3.6) am.

21

Subsection 4(3.6) of the Act is amended by striking out

(a) "for the 1984 and subsequent taxation years" and substituting therefor "for the 1984 to 1986 taxation years"; and

(b) by striking out "in respect of the 1986 and subsequent taxation years" and substituting therefor "in respect of the 1986 taxation year".

Subsecs. 4(3.7) to (3.94) added.

22

Section 4 of the Act is further amended by adding immediately after subsection (3.6) the following subsections:

Net income tax 1987.

4(3.7)

For the 1987 taxation year, an individual shall pay, in addition to every other tax payable under this Act, a tax of 1% of net income.

Tax reduction 1987.

4(3.8)

There may be deducted from the tax otherwise payable by an individual under this Act for the 1987 taxation year an amount equal to the lesser of

(a) the tax otherwise payable under this Act by the individual for the taxation year; and

(b) the greater of

(i) $200. less 1% of net income, or

(ii) 5% of exemptions less 1% of net income.

Net income tax - 1988 et seq.

4(3.9)

For the 1988 and subsequent taxation years, an individual shall pay, in addition to every other tax payable under this Act, a tax of 2% of net income.

Net income surtax - 1988 et seq.

4(3.91)

For the 1988 and subsequent taxation years, an individual shall pay, in addition to every other tax payable under this Act, a surtax equal to the amount by which the tax payable under subsection (3.9) exceeds the greater of

(a) $600.; or

(b) $300. plus 5% of exemptions.

Tax reduction 1988 et seq.

4(3.92)

There may be deducted from the tax otherwise payable by an individual under this Act for the 1988 and subsequent taxation years an amount equal to the lesser of

(a) the tax otherwise payable under this Act by the individual for the taxation year; and

(b) the greater of

(i) $300. less 1% of net income, or

(ii) 5% of exemptions less 1% of net income.

Refund of net income tax.

4(3.93)

Where, in respect of a taxation year, an individual has paid the tax levied under subsections (3.7) or (3.9), and has claimed medical expenses in excess of $2, 500., the treasurer may refund to the individual the tax paid under subsections (3.7) or (3.9) on the amount by which the medical expenses claimed exceed $2, 500.

Definitions.

4(3.94)

In subsections (3.7) to (3.93),

"exemption" means the total of those deductions authorized by section 109 or by paragraphs 110(1)(e), (e. l), (g) and (h) of the federal Act and that have been claimed by the individual entitled to claim them in the individual's return filed in accordance with the federal Act; ("exemption")

"medical expenses" means the total of those deductions authorized by paragraph 110(1)(c) of the federal Act and that have been claimed by the individual entitled to claim them in the individual's return filed in accordance with the federal Act; ("frais médicaux")

"net income" means the individual's net income for the year determined in accordance with Division B of Part I of the federal Act, less income that is earned outside Manitoba as determined under Part XXVI of the federal regulations. ("revenu net")

Sub-cl. 4.1(1)(a.1)(ii) am.

23

Sub-clause 4.1(l)(a.1)(ii) of the Act is amended by striking out "while married".

C1.4. 1(2)(b) am.

24

Clause 4.1(2)(b) of the Act is amended

(a) by striking out "3%" and substituting therefor "4%"; and

(b) by striking out "(e.2)" in both places where it appears and substituting therefor in each case "(e.l)".

Subsec. 4.1(2.1) am.

25

Subsection 4.1(2.1) is amended

(a) by striking out "3%" and substituting therefor "4%"; and

(b) by striking out "(e.2)" and substituting therefor "(e.1)".

Subsecs. 4.1(15), (16) and (17) added.

26

Section 4.1 of the Act is amended by adding after subsection (14) the following subsections:

Return of municipal tax deduction.

4.1(15)

Where a municipal tax deduction under subsection (10) has been given on a property which is not the principal residence of a principal taxpayer who is, or whose spouse is, the assessed owner of the property, the assessed owner of the property shall return the full amount of the deduction to the treasurer within 90 days of the date of issue of the municipal tax bill.

Interest payable.

4.1(16)

Where an amount in respect of a municipal tax deduction which is required to be returned under subsection (15) has not been returned within 90 days of the date of issue of the municipal tax bill, interest at the prescribed rate shall be payable on the full amount of the deduction from the date of issue of the municipal tax bill.

Demand by treasurer.

4.1(17)

Where an amount required to be returned under subsection (15) by the assessed owner of a property has not been so returned, the treasurer may demand, by registered letter or by a letter served personally, that the amount to be returned under subsection (15), together with the interest payable under subsection (16) be so returned within 30 days.

Penalty.

4.1(18)

Any person who fails to comply with a demand from the treasurer under subsection (17) within 30 days, is guilty of an offence and is liable on summary conviction to a penalty of $5. for each day of default, after the expiration of the 30 days, to a maximum of $500.

Penalty for fraudulent claims.

4.1(19)

Every person who knowingly makes, participates in, assents to, or acquiesces in the making of a false or misleading statement in a return, certificate, form or statement filed or made as required by or under this Act or the regulations for the purposes of claiming an amount in respect of a deduction under subsections (2) or (2.1), or a refund under subsections (4) or (5), which is greater than the amount to which the individual is entitled under this section, is guilty of an offence and is liable, on summary conviction, to a fine of not less than $200. and not more than $1, 000. or to imprisonment for a term not exceeding six months or to both, and in addition, shall be ordered by the magistrate to pay to the treasurer the amount by which the deduction or refund exceeds the amount to which the individual is entitled under this section together with interest at the prescribed rate on or before such date as the magistrate may order.

Liability of officers and directors of corporation.

4.1(20)

Where a corporation is convicted of an offence under subsection (19), any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in, or participated in the offence is guilty of an offence and is liable to the fines, penalties and punishment prescribed under subsection (19).

Subsec. 21(9) added.

27

Section 21 of the Act is amended by adding immediately after subsection (8) the following subsection:

Interest on penalty.

21(9)

Where a taxpayer is required by this Part to pay a penalty and fails to pay all or any part thereof as required, he shall pay to the Minister of Finance interest at the rate prescribed for the purposes of subsection 161(11) of the federal Act on the amount he failed to pay computed

(a) in the case of a penalty payable by virtue of subsection 22(1), (2) or (3), or 23(1) or (2), from the day on or before which the taxpayer's return of income for the taxation year in respect of which the penalty is payable was, or would have been if tax under this Part were payable by him for the year, required to be filed to the day of payment; and

(b) in the case of a penalty payable by virtue of any other provision of this Part, from the day of mailing of the notice of original assessment of the penalty to the day of payment.

Subsec. 41(3) rep. and sub.

28

Subsection 41(3) of the Act is repealed and the following subsections are substituted therefor:

Retention of records.

41(3)

Every person required by this section to keep records and books of account shall retain

(a) the records and books of account referred to in this section in respect of which a period is prescribed, together with every account and voucher necessary to verify the information contained therein, for such period as is prescribed, or where a tax collection agreement is entered into for such period as is prescribed under the federal Act or regulations; and

(b) all other records and books of account referred to in this section, together with every account and voucher necessary to verify the information contained therein, until the expiration of six years from the end of the taxation year to which the records and books of account relate.

Exception.

41(4)

Where, in respect of any taxation year, a person referred to in subsection (1) has not filed a return with the treasurer as and when required by this Act that person shall retain every record and book of account that is required by this section to be kept and that relates to that taxation year, together with every account and voucher necessary to verify the information contained therein, until the expiration of six years from the day the return for that taxation year is filed.

Objection or appeal.

41(5)

Where a person required by this section to keep records and books of account serves a notice of objection or where that person is a party to an appeal to the court under this Act, that person shall retain every record, book of account, account and voucher necessary for dealing with the objection or appeal until, in the case of serving a notice of objection, the time provided by section 25 to appeal has elapsed, or in the case of an appeal, until the appeal is disposed of and any further appeal therefrom is disposed of or the time for filing any such further appeal has expired.

Demand by treasurer.

41(6)

Where the treasurer is of the opinion that it is necessary for the administration of this Act, the treasurer may by registered letter or a demand served personally, require any person required by this section to keep records and books of account to retain those records and books of account, together with every account and voucher necessary to verify the information contained therein, for such period as is specified in the letter or demand.

Permission for earlier disposal.

41(7)

A person required by this section to keep records and books of account may dispose of the records and books of account referred to in this section, together with every account and voucher necessary to verify the information contained therein, before the expiration of the period in respect of which those records and books of account are required to be kept if written permission for their disposal is given by the treasurer.

Subsec. 61(2) rep. and sub.

29

Subsection 61(2) of the Act is repealed and the following subsection is substituted therefor:

Application for registration.

61(2)

A person may register as a discounter by filing with the minister an application in a form prescribed by the minister 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.

Sec. 68 added.

30

The Act is further amended by adding after section 67 the following section:

Suspension.

68(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.

Appeal.

68(2)

A discounter whose suspension has been cancelled or suspended under subsection (1) may within 30 days of receiving notice of the minister's action, appeal the cancellation or suspension to the Court of Queen's Bench.

Commencement.

31(1)

Sections 28, 29 and 30 come into force on the day this Act receives the royal assent.

Commencement.

31(2)

Sections 19 to 27 shall be deemed to have come into force on January 1, 1987 but

(a) interest computed under subsection 2(6) of the Act as enacted by section 19 in respect of a period before January 1, 1987 shall be compounded on and after that day; and

(b) interest is not payable under subsection 21(9) as enacted by section 27 in respect of any period prior to January 1, 1987.

PART IV

AMENDMENTS TO THE MOTIVE FUEL TAX ACT

Subsec. 3(14) rep. and sub.

32

Subsec. 3(14) 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 subsection is substituted therefor:

Tax on various kinds of motive fuel.

3(14)

Notwithstanding subsections (1), (6), (8), (9), (9.1) and (10) on and after April 1, 1987, every purchaser shall pay a tax to Her Majesty in right of Manitoba, on purchases of

(a) motive fuel under subsection (1) at the rate of 9.9¢ per litre;

(b) motive fuel under subsection (6) at the rate of 7.5¢ per litre;

(c) bunker fuel or crude oil under clause (8)(a) at the rate of 1.7¢ per litre:

(d) coloured motive fuel under clause (8)(b) at the rate of 1.9¢ per litre;

(e) propane or butane under clause (8)(b) at the rate of 1.6¢ per litre;

(f) propane or butane under subsection (9) at the rate of 5.7(2 per litre;

(g) propane or butane under subsection (9.1) at the rate of 4.3¢per kilogram; and

(h) motive fuel under subsection (10) at the rate of 13.6¢ per litre.

Subsec. 11(5) am.

33

Subsection 11(5) of the Act is amended by striking out "licensed" in both places where it appears.

Commencement.

34(1)

Section 32 shall be deemed to have come into force on April 1, 1987.

Commencement.

34(2)

Section 33 shall come into force July 1, 1987 or, if this Act receives the royal assent after that date, shall be deemed to have come into force on July 1, 1987.

PART V

AMENDMENTS TO RETAIL SALES TAX ACT

CL 2(1)(a) rep. and sub.

35

Subsection 2(1) of the Retail Sales Tax Act being chapter R150 of the Continuing Consolidation of the Statutes of Manitoba, (in this Part referred to as "the Act"), is amended by striking out clause (a) and substituting therefor the following clauses:

(a) "all-terrain vehicle" means an off-road vehicle that

(i) operates or travels on three or more low-pressure tires,

(ii) has a seat designed to be straddled by the operator of the vehicle, and

(iii) has handlebars for steering the vehicle; ("véhicule tous-terrains")

(a.l) "collector" means a person appointed a collector by the minister under subsection 21(3); ("collecteur")

(a.2) "computer program" includes

(i) a plan for the solution of a problem through the use of a computer, including the sequence of automatic data-processing equipment instructions necessary to solve a problem;

(ii) instructions to enable or cause a computer to control or perform a function, or to produce a desired result, either directly or through the working of other equipment;

(iii) system programs, application programs and any other computer programs or subdivisions thereof, including assemblers, compilers, routines, generators and utility programs;

(iv) a computer program prepared to the special order of a purchaser;

(v) pre-written computer programs including any modifications of such programs; and

(vi) the design, development, writing, translation or fabrication of a computer program, whether or not provided on storage media. ("programme machine")

Cl. 2(l)(n. l)am.

36

Clause 2(l)(n. l) of the Act is amended by striking out "a motorcycle that has 3 wheels" and substituting therefor "an all-terrain vehicle".

Cls. 2(1)(o.1) and (o.2) added.

37

Subsection 2(1) of the Act is amended by adding immediately after clause (o), the following clauses:

(o. l) "storage media" includes punched cards, tapes, disks, diskettes, drums, chips, boards or any other objects or devices on which computer programs may be recorded and by which they may be stored or delivered. ("support d'information")

(o.2) "take out food" means a ready to consume meal that is sold for consumption off the premises on which it is prepared or sold including

(i) a sandwich,

(ii) a plate of salad,

(iii) an arrangement of prepared foods,

(iv) any prepared food that is sold in a heated state, and

(v) any prepared appetizer, soup, salad, dessert or non-alcoholic beverage that is sold with any of the foods described in subclauses (i) to (iv). ("mets à emporter")

Cl. 2(1)(p) rep. and sub.

38

Clause 2(1)(p) of the Act is repealed and the following clause is substituted therefor:

(p) "tangible personal property" means

(i) personal property that can be seen, weighed, measured, felt, or touched, or that is in any other way perceptible to the senses and without restricting the generality of the foregoing, includes machinery, equipment and apparatus that are installed in, or attached to, buildings or land and that are used in the manufacturing, producing, processing, storing, handling, packaging, displaying, transporting, transmission or distribution of tangible personal property, or in providing a service; and

(ii) computer programs, including any document or manual designed to facilitate the use of a computer program or part thereof. ("biens personnels corporels")

Subsec. 3(1) am.

39

Subsection 3(1) of the Act is amended by striking out "6%" and substituting therefor "7%".

Subsec. 3(1.2) rep.

40

Subsection 3(1.2) of the Act is repealed.

Cl. 3(12)(b) am.

41

Clause 3(12)(b) of the Act is amended by striking out "eighty cents, or fraction of eighty cents, " and substituting therefor "70¢ or fraction of 70¢".

Subsec. 3(17) rep. and sub.

42

Subsection 3(17) of the Act is repealed and the following subsection is substituted therefor:

Tax on lease of tangible personal property.

3(17)

For the purpose of this section, where tangible personal property is the subject of a lease arrangement, whether or not the lease arrangement is entered into prior to May 4, 1987, the tax is payable at the rate of 7% on the rental that becomes due and payable on or after May 4, 1987.

Cl. 4(1)(a) rep. and sub.

43

Clause 4(1)(a) is repealed and the following clause is substituted therefor:

(a) Food and drink for human consumption off the premises where sold, but not including

(i) take out foods when the total price upon a sale exceeds $6., and

(ii) liquor as that word is defined in The Liquor Control Act.

Cl. 4(1)(s) am.

44

Clause 4(1)(s) of the Act is amended by adding, immediately after "regulations", the words "but not including documents or manuals designed to facilitate the use of a computer program or part thereof.

Cl. 4(1)(ss) rep.

45

Clause 4(1)(ss) of the Act is repealed.

Cl. 4(1)(xx) added.

46

Subsection 4(1) of the Act is amended by adding, immediately after clause (ww), the following clause:

(xx) Baby bottles including component parts, nipples, soothers and teethers, and cups, glasses, dishes and spoons that are specially designed and used to feed babies or to train babies to eat.

Subsec. 4(2) rep. and sub.

47

Subsection 4(2) of the Act is repealed and the following subsection is substituted therefor:

Exemption for certain tangible personal property.

4(2)

Notwithstanding section 3, no tax is payable under this Act in respect of any tangible personal property that is taxed under Part 1 of The Revenue Act, 1964, or that would be taxed under that statute but for an exemption provided therein.

Subsec. 4(8) am.

48

Subsection 4(8) of the Act is amended by striking out "5%" and substituting therefor "7%".

Subsec. 4(9) am.

49

Subsection 4(9) of the Act is amended by striking out "five per cent" and substituting therefor "7%".

Subsec. 4(10) am.

50

Subsection 4(10) of the Act is amended by striking out "five per cent" and substituting therefor "7%".

Subsec. 4(16) rep.

51

Subsection 4(16) of the Act is repealed.

Cl. 5(1)(d)am.

52

Clause 5(1)(d) of the Act is amended by adding, immediately after the word "remodeling, ", "altering, adjusting, modifying, updating, ".

Subsec. 5(1.1) added.

53

Section 5 of the Act is amended by adding immediately after subsection (1), the following subsection:

Timeshare.

5(1.1)

For the purpose of clause 5(1)(a), accommodation is deemed to be lodging let for a continuous period of one month or more if it is provided pursuant to a written agreement, commonly called a timeshare agreement, that

(a) has a term of two or more consecutive years;

(b) fixes the location and time of occupancy;

(c) fixes the total price and the terms and conditions for the payment of the total price for the accommodation; and

(d) provides for an aggregate number of days of occupancy of 30 days or more.

Subsec. 15(1) am.

54

Subsection 15(1) of the Act is amended

(a) by striking out "6%" in clause (a) and substituting therefor "7%"; and

(b) by striking out "6%" in clause (b) and substituting therefor "7%".

Commencement.

55(1)

This Part except sections 40, 46 and 53 shall be deemed to have come into force on May 4, 1987.

Commencement.

55(2)

Sections 46 and 53 shall be deemed to have come into force on June 1, 1987.

Commencement.

55(3)

Section 40 comes into force the day this Act receives the royal assent.

PART VI

AMENDMENTS TO THE TOBACCO TAX ACT

Cl. 2(g.1) added.

56

Section 2 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 by adding thereto immediately after clause (g) thereof the following clause:

(g. l) "person" includes a partnership, Her Majesty in right of Manitoba and all government boards and agencies and Crown corporations established and administered by or on behalf of Her Majesty in right of Manitoba. ("personne")

Cl. 3(1)(a) am.

57

Clause 3(1)(a) of the Act is amended by striking out "4.1¢ and substituting therefor "4.6¢".

Subsecs. 9(2) and (2.1) rep. and sub.

58

Subsections 9(2) and (2.1) of the Act are repealed and the following subsections are substituted therefor:

Persons deemed to be collectors.

9(2)

A person who has not been appointed a collector under subsection (1) but who imports tobacco into the province or acquires or comes into possession of tobacco otherwise than from a wholesale dealer licensed in Manitoba or a collector licensed in Manitoba in excess of 10, 000 cigarettes or 2, 500 cigars or 45, 000 grams of other tobacco products, shall, notwithstanding anything in this Act, be deemed to be a collector in respect of that tobacco, and shall immediately upon bringing that tobacco into the province or acquiring or coming into possession of that tobacco, make a report to the minister in such form and containing such information as may be prescribed in the regulations and pay the tax thereon as imposed under subsection 3(1) in the manner and at the time prescribed in the regulations.

Other persons deemed to be collectors.

9(2.1)

A person who has not been appointed a collector under subsection (1) but who imports tobacco into the province or acquires or comes into possession of tobacco otherwise than from a wholesale dealer licensed in Manitoba or a collector licensed in Manitoba in excess of 200 cigarettes but less than 10, 001 cigarettes, 50 cigars but less than 2, 501 cigars or 900 grams of other tobacco products but less than 45, 001 grams of other tobacco products, shall, notwithstanding anything in this Act, be deemed to be a collector in respect of that tobacco, and shall immediately after bringing that tobacco into the province or acquiring or coming into possession of that tobacco, make a report to the minister in such form and containing such information as may be prescribed in the regulations and within seven days after bringing that tobacco into the province or acquiring or coming into possession of that tobacco pay the tax thereon as imposed under subsection 3(1).

Subsec. 9(2.2) am.

59

Subsection 9(2.2) of the Act is amended by striking out "licensed wholesale dealer" and substituting therefor "wholesale dealer licensed in Manitoba or a collector licensed in Manitoba".

Subsec. 13(5.1) added.

60

Section 13 of the Act is amended by adding thereto immediately after subsection (5) the following subsection:

Refund re accidental loss.

13(5.1)

Where a retail dealer, who is the holder of a valid licence issued under this Act, establishes to the satisfaction of the minister that tax has been remitted by him to the minister in respect of tobacco products which by reason of loss by fire, theft or other similar causes he is unable to recover from a purchaser, the minister may refund such tax to the retail dealer where

(a) the loss can be supported to the satisfaction of the minister; and

(b) the application for refund to the minister has been made within two years from the date the loss occurred.

Commencement.

61(1)

Sections 56, 58 and 59 shall come into force July 1, 1987 or, if this Act receives the royal assent after that date, shall be deemed to have come into force on July 1, 1987.

Commencement.

61(2)

Section 57 shall be deemed to have come into force on April 13, 1987.

Commencement.

61(3)

Section 60 shall be deemed to have come into force on January 1, 1987.

PART VII

AMENDMENTS TO THE REVENUE ACT, 1964

Cl. 2(d) rep. and sub.

62

Clause 2(d) 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 repealed and the following clause is substituted therefor:

(d) "purchase price" means the value in Canadian money of the consideration, whether money, goods, things done, rental, services, or any other consideration whatsoever, accepted by any person as the price or on account of the price of a taxable product, and includes

(i) the cost of transportation whether borne by the purchaser or the seller and any other costs whatsoever in connection with the taxable product; and

(ii) any tax, levy, or duty, imposed by the Government of Canada in respect of the taxable product or the purchase, sale, or importation thereof, and paid or collected by the seller; but does not include any tax or levy imposed by a municipal corporation in respect of the taxable product; and, where the minister has fixed under subsection 3(10) an amount on which the tax is payable, means the amount so fixed;. ("prix d'achat")

Subsec. 3(1) am.

63

Subsection 3(1) of the Act is amended by striking out "six per centum" and substituting therefor "7%".

Subsec. 3(1.1) rep. and sub.

64

Subsection 3(1.1) of the Act is repealed and the following subsection is substituted therefor:

Adjustment.

3(1.1)

In determining the tax payable on those taxable products described under sub-clause 2(1)(h)(i) and (ii) for a billing period which includes days before, on and after the day on which the rate of tax payable under subsection (1) is changed:

(a) the purchase price of the taxable product shall be prorated on the basis of estimated consumption for the days before, on and after the date of the tax rate change for that portion of the bill that is based on consumption;

(b) the purchase price of the taxable product billed on a basis other than consumption shall be prorated on the basis of the number of days in the billing period before the date of the tax rate change and the number of days on and after that date for that portion of the bill that is on a basis other than consumption; and

(c) where a dealer does not have the capability of calculating the tax as required under clauses (a) and (b), the purchase price of the taxable product shall be calculated on such basis as the minister may approve on application.

Part III added.

65

The Act is amended by adding immediately after section 25, the following Part.

PART III

LAND TRANSFER TAX

Definitions.

26(1)

In this Part,

"collector" means the district registrar of a land titles district and the registrar of a registration district; ("percepteur")

"minister" means the Attorney-General; ("minister")

"regulations" means regulations made under this Part; ("règlements")

"tax" means the tax imposed under this Part; ("taxe")

"transfer" includes a direction in a Real Property Application, deed, grant from the Crown or other instrument, whereby any land is granted, assigned, conveyed, or otherwise transferred but does not include a transmission, request, mortgage or caveat. ("transfert")

Farm Lands Ownership definitions.

26(2)

In this Part, "family farm corporation", "farm land", "farmer" and "farming", have the same meaning as in the Farm Lands Ownership Act.

Real Property Act definitions.

26(3)

Subject to subsections (1) and (2), the definitions in The Real Property Act apply to the interpretation of this Part.

Imposition of tax.

27(1)

Subject to sections 28 and 29, every person who tenders for registration a transfer shall, at the time of tendering the transfer, pay to the collector a tax calculated to the nearest dollar in accordance with the following formula:

FORMULA

Tax =.005 (FMV - $30,000.) +.005 (FMV - $90,000.) +. 005 (FMV-$150,000.)

In this formula, "FMV" means the fair market value of the interest being transferred at the time the transfer is tendered for registration but any calculation which results in a negative value shall be deemed to be a nil value.

Where transfer registered in more than one office.

27(2)

Where a single transfer is registered in more than one land titles office or more than one registry office or in a land titles office and a registry office, the tax is payable once only in respect of the transfer, and is payable upon the first registration thereof.

Refund on rejection.

27(3)

Where documents tendered for registration are rejected or withdrawn, the collector shall refund the tax paid under subsection (1).

Farm land exemption

28(1)

No tax is payable under this Part on a transfer of farm land where

(a) the farm land will continue to be used for farming; and

(b) the transferee is

(i) a farmer,

(ii) a spouse of a farmer,

(iii) a farmer and his or her spouse,

(iv) a family farm corporation, or

(v) a congregation within the meaning of section 143 of the Income Tax Act (Canada).

Affidavit.

28(2)

A transferee who claims an exemption under subsection (1) shall verify the claim by filing with the collector an affidavit in a form satisfactory to the collector.

Other exemptions.

29

No tax is payable under this Part in respect of the registration of

(a) a transfer where the transferor and the transferee are the same person and the sole purpose of the transfer is

(i) to give effect to a change of name, or

(ii) to change the form of tenure from tenancy in common to joint tenancy or to fractional interests or from joint tenancy to tenancy in common or to fractional interests;

(b) a petroleum or gas lease under the old system or an assignment thereof;

(c) a transfer for the purpose of facilitating a scheme of subdivision where the transfer is from the registered owners to a trustee, or from a trustee back to the registered owners, and the owners' proportion of beneficial ownership in the land is unchanged after each transfer;

(d) a transfer made to correct an error in a previous transfer where the collector is satisfied that the full tax payable under section 27 was paid on the previous transfer; or

(e) a transfer of a family asset within the meaning of The Marital Property Act between spouses or former spouses including a transfer from an executor or administrator upon the death of a spouse.

Affidavit of value.

30(1)

There shall be filed with each transfer tendered for registration an affidavit setting out the fair market value of the land being transferred.

By whom affidavit made.

30(2)

The affidavit of value required under subsection (1) may be made by the transferor, the transferee, a person acting for either of them under a power of attorney, an agent accredited in writing by the transferor or the transferee, a solicitor for either the transferor or the transferee, or some other person approved by the minister.

Protest of payment of tax.

31(1)

Where the right of the collector to require payment of tax is disputed by a person tendering a transfer for registration, the person shall pay the tax as provided in this Part, and shall file, without fee, with the collector at the time of payment, a notice of protest.

Protest referred to minister.

31(2)

Where a person tendering a transfer for registration files a protest under subsection (1), the collector shall forthwith send the notice to the minister.

Contents.

31(3)

The notice of protest shall contain the reasons for the protest and shall state all relevant facts, including an estimate of the fair market value where the person protest considers that estimate to be relevant to the objection.

Minister's determination.

31(4)

On receipt of the notice of protest and all relevant information, the minister shall determine the amount of tax owing.

Notice.

31(5)

The minister shall notify by mail the person who made the protest of the minister's decision and shall include, if applicable, a notice of assessment.

Appeal.

31(6)

Where the person who paid the tax disagrees with the decision of the minister under subsection (4), that person may, within 30 days of the date the decision is made or such further period as the court may allow, appeal the decision to the Court of Queen's Bench.

Assessment.

32(1)

The minister may, on information available to him or her, determine fair market value and the correct amount of tax payable.

Notice to transferee.

32(2)

Where the minister determines that the correct amount of tax has not been paid, the minister shall make an assessment and mail a notice of assessment to the transferee.

Contents of notice.

32(3)

The notice of assessment shall contain the determination of the fair market value made by the minister, the total amount of tax payable, the amount of tax paid, the balance owing or overpaid and the date of the notice of assessment.

Payment.

32(4)

The transferee shall pay to the minister the amount of tax owing as set out in the notice of assessment within 30 days after the date shown on the notice of assessment whether or not an objection to the assessment is made.

Limitation.

32(5)

Except as provided in this Part, the minister shall issue the notice of assessment within two years after the later of

(a) the date that the transfer was registered in the land titles office, or

(b) the tax became payable.

Formal errors.

32(6)

An assessment, subject to being varied or vacated on objection or by reassessment, is valid and binding, notwithstanding any error, defect, omission or error in procedure.

Interest on tax owing to government.

32(7)

Interest on the amount of tax owing is payable and shall be calculated, commencing 30 days after the date shown on the notice of assessment, at the rate prescribed under the Financial Administration Act.

Notice of objection.

33(1)

A person who objects to an assessment made under section 32 shall mail a notice of objection to the minister within 90 days after the date shown on the notice of assessment.

Contents.

33(2)

The notice of objection shall contain the reasons for the objection and shall state all relevant facts, including an estimate of the fair market value where the person objecting considers that estimate to be relevant to the objection.

Minister's determination.

33(3)

On receipt of the notice of objection and all relevant information, the minister shall determine the amount of tax owing.

Notice.

33(4)

The minister shall notify by mail the person who made the objection of the minister's decision and shall include, if applicable, a notice of assessment.

Extension of time.

33(5)

The time within which a notice of objection is to be mailed may be extended by the minister if application for extension is made in respect of a notice of objection under subsection (1) before the expiry of the time allowed under subsection (1) for mailing of the notice of objection, and the application contains the reason for the extension and specifies the period of time applied for.

Appeal.

33(6)

Where the person who paid the tax disagrees with the decision of the minister under subsection (3), that person may, within 30 days of the date the decision is made or such further period as the court may allow, appeal the decision to the Court of Queen's Bench.

Land held by corporation.

34(1)

Where a corporation other than a family farm corporation holds an interest in land and the corporation or a controlling interest in the corporation is sold to a purchaser, tax calculated in accordance with this Part shall be paid by the purchaser on the fair market value of the corporation's interest in the land.

Affidavit.

34(2)

The purchaser responsible for paying the tax under subsection (1) shall file with the minister an affidavit in a form satisfactory to the minister as to the fair market value of the interest in the land and the corporation's interest in the land, and shall remit the tax to the minister.

Corporation.

34(3)

Where the purchaser under subsection (1) is a corporation, the affidavit required by subsection (2) shall be made by an officer or director of that corporation.

Application.

34(4)

Sections 32 and 33 apply with such modifications as the circumstances require to the tax payable under this section.

Failure to pay tax.

35(1)

A person who fails to pay the tax imposed by this Part commits an offence.

False affidavits, etc.

35(2)

A person commits an offence who

(a) has made a false or deceptive statement in an affidavit required to be made under this Part;

(b) in order to evade payment of tax, has destroyed, altered, mutilated, secreted or otherwise disposed of a record of a transferor or transferee;

(c) has, in a record of a transferor or transferee, made a false or deceptive entry or omitted or assented to or acquiesced in the omission to enter a material particular; or

(d) has failed to comply with section 34;

(e) has wilfully, in any manner, evaded or attempted to evade compliance with this Act or the regulations or remittance or payment of taxes required by this Act or the regulations.

Persons acquiescing.

35(3)

A person who participates in, assents to or acquiesces in any of the acts referred to in subsection (2) commits an offence.

Corporate officers.

35(4)

Where a corporation commits an offence under this section, every director, officer, employee or agent of the corporation who authorized, permitted or acquiesced in the offence commits an offence.

Fine on corporation.

35(5)

A corporation convicted of an offence under subsection (1), (2) or (3) is liable to a fine equal to

(a) the amount of tax not paid or remitted, with interest, plus

(b) an amount not less than $5, 000. and not more than $50, 000.

Fine on individual.

35(6)

An individual convicted of an offence under subsection (1), (2), (3) or (4) is liable to

(a) a fine equal to

(i) the amount of tax not paid or remitted, with interest, plus

(ii) an amount not less than $1, 000. and not more than $25, 000.;

(b) imprisonment for not more than two years; or

(c) both fine and imprisonment.

Minister's certificate.

35(7)

In a prosecution under this section, the certificate signed by the minister, or the authorized person stating the amount of tax and interest is evidence of the amount of tax and interest referred to in subsection (5) or (6).

No action.

35(8)

No action taken under this section shall suspend or affect any remedy for the recovery of any tax or amount payable under this Act.

Enforcement.

36

The provisions of Part I respecting the enforcement of that Part apply with such modifications as the circumstances require to this Part.

Fraud.

37

Notwithstanding any other provision of this Part, the minister may, where there has been fraud or misrepresentation, assess tax payable and prosecute for an offence at any time within two years of becoming aware of the fraud or misrepresentation.

Commencement.

66(1)

Section 62 shall come into force July 1, 1987 or, if this Act receives the royal assent after that date, shall be deemed to have come into force on July 1, 1987.

Commencement.

66(2)

Sections 63 and 64 shall be deemed to have come into force on May 4, 1987.

Commencement.

66(3)

Section 65 shall be deemed to have come into force on May 15, 1987 but where documents which were tendered for registration prior to May 15, 1987 and were withdrawn for correction are registered on or after May 15, 1987, the transferee shall pay the lower of the registration fees payable prior to May 15, 1987 or the tax payable under Part III.