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If you need an official copy, use the bilingual (PDF) version. This version was current from June 17, 2010 to November 7, 2018.
Note: It does not reflect any retroactive amendment enacted after November 7, 2018.
To find out if an amendment is retroactive, see the coming-into-force provisions
at the end of the amending Act.
C.C.S.M. c. C302
The Credit Unions and Caisses Populaires Profits Tax Act
(Assented to June 17, 2010)
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
The following definitions apply in this Act.
"credit union" means a corporation, association or federation that would be a credit union as defined in subsection 137(6) of the Income Tax Act (Canada) if that definition were read without reference to paragraphs (b) and (c). It includes a credit union and a caisse populaire under The Credit Unions and Caisses Populaires Act, but does not include a central or guarantee corporation as defined in that Act or any other organization that is similar to a central or guarantee corporation and is established under the laws of Canada or of another province or territory of Canada. (« caisse populaire »)
"director" means the Deputy Minister of Finance or an Assistant Deputy Minister of Finance. (« directeur »)
"Manitoba taxable income" of a credit union for a taxation year means its taxable income earned in that taxation year in Manitoba as determined under the Income Tax Act (Canada) and the regulations under that Act. (« revenu imposable gagné au Manitoba »)
"minister" means the Minister of Finance. (« ministre »)
"taxation year" of a credit union means its taxation year for the purposes of the Income Tax Act (Canada). (« année d'imposition »)
For the purpose of this Act, two or more credit unions are associated with each other whenever they are associated with each other under section 256 of the Income Tax Act (Canada).
Administration and enforcement
Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act.
For each taxation year ending after 2010, a credit union must pay to the government a tax equal to the amount determined by the following formula:
tax = 1% × (I − (R × D/365)) − T
In this formula,
I
is the credit union's Manitoba taxable income for the taxation year;
R
is a reduction equal to
(a) $400,000, unless the credit union is associated with another credit union at any time in the taxation year,
(b) nil, if the credit union is associated with one or more other credit unions at any time in the taxation year and no agreement under subsection (2) has been filed for the credit union for the taxation year, or
(c) subject to subsection (3), the amount allocated to the credit union in an agreement filed under subsection (2) for the taxation year;
D
is 365 or the number of the days in the taxation year during which the credit union has a permanent establishment in Manitoba, whichever is less;
T
is the credit union's tax payable under The Income Tax Act for the taxation year, after deducting any tax credits claimed by the credit union.
Allocation agreement among associated credit unions
Two or more credit unions that are associated with each other at any time may file with the director an agreement, in a form acceptable to the director, under which the amount of $400,000 is allocated among them for the taxation years that include that time. The total of the amounts so allocated for those taxation years must not exceed $400,000.
Allocations under multiple agreements
If
(a) a credit union is associated with different credit unions within the same taxation year; and
(b) different amounts are allocated to the credit union for that taxation year under two or more agreements;
the amount allocated to it for the taxation year is deemed to be the least of those amounts.
If the tax payable under subsection (1) for a taxation year is less than $1, the tax payable is deemed to be nil.
Transitional — taxation year beginning in 2010
For a taxation year beginning in 2010, the amount of tax, if any, determined by the formula in subsection (1) is to be reduced to the proportion of that amount that
(a) the number of the days in the taxation year that occur after 2010 and during which the credit union has a permanent establishment in Manitoba;
is of
(b) 365 or the number of the days in the taxation year during which the credit union has a permanent establishment in Manitoba, whichever is less.
Credit union to file return and pay tax
On or before the date by which a credit union is required to file its return of income under Part I of the Income Tax Act (Canada) for a taxation year, the credit union must
(a) complete an information return, in a form approved by the director, that includes the following information:
(i) the credit union's calculation of the tax payable for the taxation year,
(ii) if the credit union commenced or ceased to have a permanent establishment in Manitoba in the taxation year, the date of that event,
(iii) any other information stipulated by the form or required by the regulations;
(b) file the completed information return with the director, together with a copy of the credit union's return of income under Part I of the Income Tax Act (Canada) for that taxation year; and
(c) pay the tax, if any, payable under section 3 for the taxation year.
Subsection (1) does not apply to a credit union for a taxation year in which it has not had a permanent establishment in Manitoba.
The Lieutenant Governor in Council may make regulations
(a) prescribing information to be included in information returns to be filed under section 4;
(b) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the purpose of this Act.
A regulation under this section may be made retroactive to the extent the Lieutenant Governor in Council considers it necessary in order to implement or give effect to
(a) a tax or administrative measure included in a budget presented to the Legislative Assembly; or
(b) an amendment to this Act.
This Act may be referred to as chapter C302 of the Continuing Consolidation of the Statutes of Manitoba.
This Act comes into force on the day it receives royal assent.