Note: It does not reflect any retroactive amendment enacted after June 10, 2009.
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. I10
The Income Tax Act
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
In this Act,
"agreeing province" means a province that has entered into an agreement with the Government of Canada under which the Government of Canada will collect taxes payable under that province's income tax statute and will make payments to that province in respect of taxes so collected; (« province participante »)
"collection agreement" means an agreement entered into pursuant to subsection 61(1); (« arrangement relatif à la perception »)
"court" means the Court of Queen's Bench of Manitoba; (« tribunal »)
"deputy head" means
(a) if no collection agreement is in effect, the Deputy Minister of Finance for Manitoba, and
(b) if a collection agreement is in effect, the Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act (Canada); (« administrateur général »)
"federal Act" means the Income Tax Act (Canada), as amended from time to time; (« loi fédérale »)
"federal regulations" means the regulations made under the federal Act, as amended from time to time; (« règlements fédéraux »)
"income for the year" of an individual means
(a) if section 114 of the federal Act applies in determining the individual's taxable income for the year, the amount determined under paragraph (a) of that section,
(b) if subsection 115(1) of the federal Act applies in determining the individual's taxable income earned in Canada for the year, the amount that would be the individual's taxable income earned in Canada for the year if that subsection ended after paragraph (c), and
(c) in any other case, the individual's income for the year as determined under Part I of the federal Act; (« revenu pour l'année »)
"income tax statute" means, with reference to an agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act; (« loi de l'impôt sur le revenu »)
"individual" means a person other than a corporation and, except in section 5, includes a trust or estate; (« particulier »)
"loss" means a loss as determined in accordance with, and for the purposes of, the federal Act; (« perte »)
"Manitoba income" of an individual for a taxation year means the individual's income earned in the year in Manitoba, as determined under the federal regulations made for the purpose of the definition "income earned in the year in a province" in subsection 120(4) of the federal Act; (« revenu gagné au Manitoba »)
"minister" means, except as otherwise provided,
(a) if no collection agreement is in effect, the Minister of Finance for Manitoba, and
(b) if a collection agreement is in effect, the Minister of National Revenue for Canada,
but in applying any provision of the federal Act for the purposes of this Act, a reference in such a provision to "minister" shall be read as a reference to the treasurer; (« ministre »)
"permanent establishment", where used for a purpose under this Act, has the meaning assigned for the same or a similar purpose in the federal regulations; (« établissement permanent »)
"prescribed" means
(a) in relation to a form, authorized under this Act by the Minister of Finance for Manitoba, and
(b) in any other case, prescribed by the regulations,
but, in applying any provision of the federal Act for the purposes of this Act and when used in reference to something prescribed under the federal Act, it has the meaning assigned by subsection 248(1) of the federal Act; (« prescrit »)
"province" means a province of Canada and includes the Yukon Territory, the Northwest Territories and Nunavut; (« province »)
"Receiver General" means the Receiver General for Canada but, in applying any provision of the federal Act for the purposes of this Act, a reference in the provision to "Receiver General" shall be read as a reference to the treasurer; (« receveur général »)
"regulations" means the regulations made by the Lieutenant Governor in Council under this Act; (« règlements »)
"taxation year" of a person means the period determined under the federal Act as the person's taxation year; (« année d'imposition »)
"treasurer" means
(a) the Minister of Finance for Manitoba, if no collection agreement is in effect, and
(b) if a collection agreement is in effect,
(i) the Receiver General, in relation to the remittance of an amount as or on account of any tax, interest or penalty payable under this Act, and
(ii) the minister, in relation to the administration and enforcement of this Act other than sections 61 to 65; (« trésorier »)
1(1.1) and (1.2) Repealed, S.M. 2000, c. 39, s. 26.
"Last day of the taxation year"
The expression "last day of the taxation year" shall, in the case of an individual who resided in Canada at any time in the taxation year but ceased to reside in Canada before the last day thereof, be deemed to be a reference to the last day in the taxation year on which he resided in Canada.
The tax payable by a taxpayer under this Act or under Part I of the federal Act means the tax payable by him as fixed by assessment or re-assessment subject to variation on objection or on appeal, if any, in accordance with this Act, or Part I of the federal Act, as the case may be.
For the purposes of this Act, except where they are at variance with the definitions contained in this section, the definitions and interpretations contained in, or made by regulations under, the federal Act apply.
In any case of doubt, the provisions of this Act shall be applied and interpreted in a manner consistent with similar provisions of the federal Act.
Modification of federal provisions
Where a section, subsection, definition or provision (in this subsection referred to as "the section") of the federal Act or the federal regulations is made applicable for the purposes of this Act, the section, as amended from time to time, applies with such modifications as the circumstances require for the purposes of this Act as though enacted as a provision of this Act and in applying the section for the purposes of this Act, in addition to any other modifications required by the circumstances,
(a) a reference in the section to tax under Part I of the federal Act shall be read as a reference to tax under this Act;
(b) where the section contains a reference to tax under any of Parts I.1 to XIV of the federal Act, the section shall be read without reference to tax under any of those Parts and without reference to any portion of the section that applies only to or in respect of tax under any of those Parts;
(c) a reference in the section to a particular provision of the federal Act that is the same as or similar to a provision of this Act shall be read as a reference to the provision of this Act;
(d) a reference in the section to a particular provision of the federal Act that applies for the purposes of this Act shall be read as a reference to the particular provision as it applies for the purposes of this Act;
(e) where the section contains a reference to any of Parts I.1 to XIV of the federal Act or to a provision in any of those Parts, the section shall be read without reference to the Part or the provision and without reference to any portion of the section that applies only because of the application of any of those Parts or the application of a provision in any of those Parts;
(f) where the section contains a reference to the Bankruptcy and Insolvency Act, the section shall be read without reference to the Bankruptcy and Insolvency Act;
(g) a reference in the section to a federal regulation that applies for the purposes of this Act shall be read as a reference to the regulation as it applies for the purposes of this Act;
(g.1) a reference in the section to "under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act" shall be read as "under this Act";
(h) a reference in the section to a word or expression in the left hand column of the following table shall be read as a reference to the word or expression opposite in the right hand column of the table:
TABLE
Her Majesty | Her Majesty in right of the Province of Manitoba |
Canada | Manitoba |
Criminal Code | The Summary Convictions Act |
Receiver General | treasurer |
Canada Customs and Revenue Agency | Department of Finance |
Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act | deputy head |
Deputy Attorney General of Canada | Deputy Minister of Justice |
Tax Court of Canada | Court of Queen's Bench of Manitoba |
Tax Court of Canada Act | The Court of Queen's Bench Act |
Federal Court of Canada | Court of Queen's Bench of Manitoba |
Federal Court Act | The Court of Queen's Bench Act |
Registrar of the Tax Court of Canada | registrar of the Court of Queen's Bench of Manitoba |
Registry of the Federal Court | an administrative centre of the Court of Queen's Bench of Manitoba |
Except as otherwise provided in this Act, if an amount or number that is required by this Act to be determined by or in accordance with a formula would, but for this subsection, be a negative amount or number, the amount or number is deemed to be nil.
S.M. 1989-90, c. 15, s. 12; S.M. 1993, c. 46, s. 35; S.M. 1997, c. 49, s. 15; S.M. 1999, c. 17, s. 2; S.M. 2000, c. 39, s. 26; S.M. 2001, c. 41, s. 12.
"Federal application rule" defined
In this section, "federal application rule" means a provision of an Act of Parliament or of the federal regulations that
(a) modifies the application of a provision of the federal Act or the federal regulations; or
(b) makes a provision, or the repeal or amendment of a provision, of the federal Act or the federal regulations apply
(i) to specified taxation years,
(ii) to specified fiscal periods,
(iii) after a specified time, or
(iv) to transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods.
Application of federal Act and regulations
In applying the provisions of the federal Act and the federal regulations for the purposes of this Act,
(a) every applicable federal application rule shall be applied, with necessary modifications, for the purposes of this Act; and
(b) each provision, and each amendment or repeal of a provision, of the federal Act or the federal regulations to which no federal application rule applies is deemed to come into force for the purposes of this Act on the day it comes into force for the purposes of the federal Act.
Subsection 248(11) of the federal Act applies for the purposes of this Act.
Repealed, S.M. 2000, c. 39, s. 28.
S.M. 1989-90, c. 15, s. 13; S.M. 1993, c. 46, s. 36; S.M. 2000, c. 39, s. 28.
INCOME TAX
DIVISION I
LIABILITY FOR TAX
An individual must pay tax under this Part for a taxation year if he or she
(a) was resident in Manitoba on the last day of the taxation year; or
(b) was not resident in Manitoba on the last day of the taxation year but had Manitoba income for the year.
Corporations liable to pay tax
Every corporation that maintains a permanent establishment in Manitoba at any time in a taxation year must pay tax under this Part for the year.
Despite subsections (1) and (2), no tax is payable under this Part by
(a) a person for a period during which the person was exempt from tax under the federal Act because of subsection 149(1) of that Act; or
(b) a corporation for a period during which the corporation was a non-resident-owned investment corporation.
3(4) to (6) Repealed, S.M. 2005, c. 40, s. 26.
S.M. 1989-90, c. 15, s. 14; S.M. 2000, c. 39, s. 29; S.M. 2002, c. 19, s. 17; S.M. 2005, c. 40, s. 26.
DIVISION II
COMPUTATION OF TAX
INDIVIDUAL INCOME TAX
Rules for Computing Tax
Rules for computing individual's tax payable
The following rules apply in computing an individual's tax payable under this Part for a taxation year:
Rule 1
For the 2001 and subsequent taxation years, determine the individual's basic tax payable for the year
(a) under subsection 4.1(3), in the case of an inter vivos trust referred to in that subsection; and
(b) in any other case,
(i) under subsection 4.1(1) for the 2001 taxation year,
(ii) under subsection 4.1(2) for the 2002 taxation year,
(iii) under subsection 4.1(2.1) for the 2003 taxation year,
(iv) under subsection 4.1(2.2) for the 2004 and 2005 taxation years,
(v) under subsection 4.1(2.3) for the 2006 taxation year,
(vi) under subsection 4.1(2.4) of the 2007 taxation year,
(vii) under subsection 4.1(2.5) for the 2008 taxation year, and
(viii) under subsection 4.1(2.6) for the 2009 and subsequent taxation years.
Rule 1.1 Repealed, S.M. 2006, c. 24, s. 28.
Rule 2
Determine under section 4.3 the individual's lump sum tax payable for the year, if any.
Rule 3
Determine under section 4.4 the individual's tax on split income, if any.
Rule 4
Determine the amount, if any, by which
(a) the total of the amounts determined under Rules 1 to 3;
exceeds
(b) the total of the individual's non-refundable tax credits determined under subsection 4.6(2) for the year.
Rule 5
Add to the amount determined under Rule 4 the individual's additional minimum tax, if any, determined under section 4.5.
Rule 6
Multiply the total determined under Rule 5 by the individual's Manitoba percentage for the year. If the Manitoba percentage is less than 100%, add the amount determined by the following formula:
In this formula, T is the total of the following amounts:
(a) the pension income amount claimed by the individual for the year under subsection 4.6(10), multiplied by the percentage that applies to the taxation year under clause 4.6(2)(a);
(b) the amount claimed by the individual for the year under subsection 4.6(10.1) in respect of adoption costs, multiplied by the percentage that applies to the taxation year under clause 4.6(2)(a);
(b.1) the amount claimed by the individual for the year under subsection 4.6(10.2) (children's fitness expenses), multiplied by the percentage that applies to the taxation year under clause 4.6(2)(a);
(c) the individual's dividend tax credit for the year determined under section 4.7;
(d) the individual's overseas employment tax credit for the year determined under section 4.8.
Rule 7
Determine the amount, if any, by which the amount determined under Rule 6 exceeds the total of the following amounts:
(a) the individual's Manitoba political contribution credit determined under section 4.11;
(b) the individual's labour-sponsored funds tax credit determined under subsection 11.1(2.1);
(c) the individual's equity tax credit determined under subsection 11.6(3);
(d) the total of the individual's foreign tax credits for the year determined under section 4.12;
(e) if the individual is not a trust, the individual's mineral exploration tax credit determined under subsection 11.7(2);
(f) if the individual is not a trust, the total of all amounts each of which is the individual's unused mineral exploration tax credit from any of the three immediately following taxation years or any of the 10 immediately preceding taxation years, as determined under subsection 11.7(3);
(g) if the individual is not a trust, the total of
(i) the individual's community enterprise development tax credit for the year determined under section 11.8, and
(ii) the individual's community enterprise investment tax credit for the year determined under section 11.13;
(h) the amount, if any, deductible by the individual under subsection 10.2(1) (odour-control tax credit of farmer), as determined after deducting the amounts referred to in clauses (a) to (g) and before applying Rule 9;
(i) the amount, if any, claimed by the individual under section 4.9.1 (graduate's tuition fee income tax rebate).
Rule 8
Determine the greater of
(a) the amount determined under Rule 7; and
(b) the amount, if any, by which the individual's Manitoba percentage of his or her tax on split income determined under section 4.4, exceeds
(i) the individual's Manitoba percentage of the portion of his or her dividend tax credit under section 4.7 that can reasonably be considered to relate to that split income, and
(ii) the portion of his or her foreign tax credit under section 4.12 that can reasonably be considered to relate to that split income.
Rule 9
Subtract the following amounts from the amount determined under Rule 8:
(a) the total of the individual's refundable tax credits claimed under section 5;
(b) the amount, if any, that the individual is deemed by subsection 10.1(1) (refundable co-op education and apprenticeship tax credit of employer) to have paid on account of his or her tax payable for the year;
(c) the amount, if any, that the individual is deemed by subsection 10.2(1.1) (refundable odour-control tax credit of farmer) to have paid on account of his or her tax payable for the year;
(d) the amount, if any, that the individual is deemed by section 10.3 (refundable green energy equipment tax credit) to have paid on account of his or her tax payable for the year;
(e) the amount, if any, that the individual is deemed by subsection 10.4(1) (Manitoba book publishing tax credit) to have paid on account of his or her tax payable for the year.
Rule 10
If the amount determined under Rule 9 is a positive amount, the individual's tax payable for the year under this Part is equal to that amount.
Rule 11
If the amount determined under Rule 9 is nil or a negative amount, the individual's tax payable for the year under this Part is nil and the amount, if any, by which it is negative is deemed to be an overpayment by the individual on account of his or her tax payable for the year under this Part.
For the purposes of subsection (1), an individual's "Manitoba percentage" for a taxation year is the proportion, expressed as a percentage, that his or her Manitoba income for the year is of his or her income for the year.
S.M. 1988-89, c. 19, s. 18; S.M. 1989-90, c. 15, s. 15; S.M. 1992, c. 52, s. 26; S.M. 1993, c. 46, s. 37; S.M. 1994, c. 23, s. 12; S.M. 1995, c. 30, s. 7 and 8; S.M. 1996, c. 66, s. 7; S.M. 1998, c. 30, s. 26; S.M. 1999, c. 3, s. 5; S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 13; S.M. 2002, c. 19, s. 18; S.M. 2003, c. 4, s. 34; S.M. 2004, c. 43, s. 44; S.M. 2005, c. 40, s. 27; S.M. 2006, c. 24, s. 28; S.M. 2007, c. 6, s. 24; S.M. 2008, c. 3, s. 18.
Basic Tax Payable — 2001 and Later Years
Basic tax payable — 2001 taxation year
An individual's basic tax payable for the 2001 taxation year is the amount determined according to the following table:
Taxable income (TI) |
Basic tax payable (BT) |
$30,544. or less | BT = 10.9% × TI |
more than $30,544. but not more than $61,089. | BT = $3,329. + 16.2% × (TI − $30,544.) |
more than $61,089. | BT = $8,277. + 17.4% × (TI − $61,089.) |
Basic tax payable — 2002 taxation year
An individual's basic tax payable for the 2002 taxation year is the amount determined according to the following table:
Taxable income (TI) | Basic tax payable (BT) |
$30,544. or less | BT = 10.9% × TI |
more than $30,544. but not more than $65,000. | BT = $3,329. + 15.4% × (TI − $30,544.) |
more than $65,000. | BT = $8,635. + 17.4% × (TI − $65,000.) |
Basic tax payable — 2003 taxation year
An individual's basic tax payable for the 2003 taxation year is the amount determined according to the following table:
Taxable income (TI) | Basic tax payable (BT) |
$30,544. or less | BT = 10.9% × TI |
more than $30,544. but not more than $65,000. | BT = $3,329. + 14.9% × (TI − $30,544.) |
more than $65,000. | BT = $8,463. + 17.4% × (TI − $65,000.) |
Basic tax payable — 2004 and 2005 taxation years
An individual's basic tax payable for each of the 2004 and 2005 taxation years is the amount determined according to the following table:
Taxable income (TI) | Basic tax payable (BT) |
$30,544. or less | BT = 10.9% × TI |
more than $30,544. but not more than $65,000. | BT = $3,329. + 14% × (TI − $30,544.) |
more than $65,000. | BT = $8,153. + 17.4% × (TI − $65,000.) |
Basic tax payable — 2006 taxation year
An individual's basic tax payable for the 2006 taxation year is the amount determined according to the following table:
Taxable income (TI) | Basic tax payable (BT) |
$30,544. or less | BT = 10.9% × TI |
more than $30, 544. but not more than $65,000. | BT = $3,329. + 13.5% × (TI − $30,544.) |
more than $65,000. | BT = $7,981. + 17.4% × (TI − $65,000.) |
Basic tax payable — 2007 taxation year
An individual's basic tax payable for the 2007 taxation year is the amount determined according to the following table:
Taxable income (TI) | Basic tax payable (BT) |
$30,544. or less | BT = 10.9% × TI |
more than $30,544. but not more than $65,000. | BT = $3,329. + 13% × (TI - $30,544.) |
more than $65,000. | BT = $7,809. + 17.4% × (TI - $65,000.) |
Basic tax payable — 2008 taxation year
An individual's basic tax payable for the 2008 taxation year is the amount determined according to the following table:
Taxable income (TI) | Basic tax payable (BT) |
$30,544. or less | BT = 10.9% × TI |
more than $30,544. but not more than $66,000. | BT = $3,329. + 12.75% × (TI − $30,544.) |
more than $66,000. | BT = $7,850. + 17.4% × (TI − $66,000.) |
Basic tax payable — 2009 and subsequent taxation years
An individual's basic tax payable for the 2009 taxation year and for each subsequent taxation year is the amount determined according to the following table:
Taxable income (TI) | Basic tax payable (BT) |
$31,000. or less | BT = 10.8% × TI |
more than $31,000. but not more than $67,000. | BT = $3,348. + 12.75% × (TI − $31,000.) |
more than $67,000. | BT = $7,938. + 17.4% × (TI − $67,000.) |
Basic tax payable by inter vivos trust
Despite subsections (1) to (2.5), the basic tax payable for a taxation year for an inter vivos trust to which subsection 122(1) of the federal Act applies is 17.4% of the trust's taxable income for the year.
S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 14; S.M. 2003, c. 4, s. 35; S.M. 2005, c. 40, s. 28; S.M. 2006, c. 24, s. 29; S.M. 2007, c. 6, s. 25; S.M. 2008, c. 3, s. 19.
Repealed.
S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 15; S.M. 2006, c. 24, s. 30.
Tax on Lump Sums
An individual's lump sum tax payable for a taxation year is 50% of the total of the amounts added by sections 120.3 and 120.31 of the federal Act and section 40 of the Income Tax Application Rules (Canada) to the individual's tax payable for the year under the federal Act.
Additional Taxes
If section 120.4 of the federal Act applies to an individual for a taxation year, the individual's tax on split income for the year is 17.4% of his or her split income for the year as determined under that section.
S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 16.
An individual's additional minimum tax payable for a taxation year is 50% of the amount that would be his or her additional tax for the year determined under subsection 120.2(3) of the federal Act if that subsection ended after paragraph (b).
Repealed, S.M. 2006, c. 24, s. 31.
Non-refundable credits for 2001 and following
For the 2001 and subsequent taxation years, the total of an individual's non-refundable credits is the total of
(a) all amounts, each of which is the following percentage of an amount claimed for the year under any of subsections (3) to (17) and subsection (19):
(i) 10.9%, if the taxation year ends before 2009,
(ii) 10.8%, if the taxation year ends after 2008;
(b) the individual's donations tax credit for the year determined under subsection (18);
(c) the individual's dividend tax credit for the year determined under section 4.7;
(d) the individual's overseas employment tax credit for the year determined under section 4.8; and
(e) the individual's minimum tax carry-over credit for the year determined under section 4.9.
An individual may claim a basic personal amount of
(a) $7,634. for a taxation year ending after 2001 and before 2006;
(b) $7,734. for a taxation year ending in or at the end of 2006;
(c) $7,834. for a taxation year ending in or at the end of 2007;
(d) $8,034. for a taxation year ending after 2007 and before 2009; and
(e) $8,134. for a taxation year ending after 2008.
An individual who is at least 65 years old at the end of the taxation year may claim the amount determined by the following formula:
$3,728. − .15A
In this formula, A is the amount, if any, by which the individual's income for the year would exceed $27,749. if no amount were included in respect of a gain from a disposition of property to which section 79 of the federal Act applies in computing that income.
Claim re spouse or common-law partner
An individual who at any time in the taxation year is
(a) married, supporting his or her spouse and not living separate and apart from the spouse because of a breakdown of their marriage; or
(b) in a common-law partnership, supporting his or her common-law partner, and not living separate and apart from the common-law partner because of a breakdown of their common-law partnership;
may claim
(c) for a taxation year ending after 2001 and before 2008, the amount determined by the following formula:
$6,482. − A + (the lesser of A and $649.)
(d) for a taxation year ending after 2007 and before 2009, the amount determined by the following formula:
$8,034. − A
(e) for a taxation year ending after 2008, the amount determined by the following formula:
$8,134. − A
In these formulas, A is the spouse's or partner's income for the year or, if the individual and the spouse or partner are living separate and apart at the end of the year because of a breakdown of their marriage or partnership, the spouse's or partner's income for the year while married or in the common-law partnership and not so separated.
An individual to whom subsection (5) does not apply for the taxation year and who, at any time in the year,
(a) is unmarried and not in a common-law partnership, or is married or in a common-law partnership but neither supports nor lives with his or her spouse or common-law partner and is not supported by the spouse or common-law partner; and
(b) alone or jointly with one or more other persons, maintains a self-contained domestic establishment which is the individual's ordinary place of residence and actually supports in that establishment a person who, at that time, is
(i) except in the case of a child of the individual, resident in Canada,
(ii) wholly dependent for support on the individual, or the individual and the other person or persons, as the case may be,
(iii) related to the individual, and
(iv) except in the case of a parent or grandparent of the individual, either less than 18 years old or dependent on that support because of mental or physical infirmity;
may claim
(c) for a taxation year ending after 2001 and before 2008, the amount determined by the following formula:
$6,482. − A + (the lesser of A and $649.)
(d) for a taxation year ending after 2007 and before 2009, the amount determined by the following formula:
$8,034. − A
(e) for a taxation year ending after 2008, the amount determined by the following formula:
$8,134. − A
In these formulas, A is the dependant's income for the year.
An individual may claim, for each dependant of the individual who
(a) was at least 18 years old at the end of the taxation year; and
(b) was dependent in the year on the individual because of mental or physical infirmity;
the amount determined by the following formula:
$3,605. − (A − $5,115.) − B
In this formula,
A
is the greater of $5,115. and the dependant's income for the year; and
B
is the amount, if any, that the individual may claim under subsection (6).
An individual who, at any time in the taxation year, alone or jointly with one or more persons, maintains a self-contained domestic establishment which is the ordinary place of residence of the individual and of another person
(a) who is at least 18 years old at that time;
(b) who is
(i) the individual's child or grandchild, or
(ii) resident in Canada and is the parent, grandparent, brother, sister, aunt, uncle, nephew or niece of the individual or the individual's spouse or common-law partner; and
(c) who is
(i) at least 65 years old at that time, if he or she is the individual's parent or grandparent, or
(ii) dependent on the individual because of mental or physical infirmity;
may claim the amount determined by the following formula:
$15,917. − A − B
In this formula,
A
is the greater of $12,312. and the other person's income for the year; and
B
is the amount, if any, that the individual may claim under subsection (6).
Pension contributions and EI premiums
An individual who is entitled to deduct an amount under section 118.7 of the federal Act for the taxation year may claim the amount determined for B in the formula under that section.
An individual who was resident in Manitoba on the last day of the taxation year and who received pension income in the taxation year may claim an amount equal to the lesser of $1,000. and
(a) the pension income received by the individual in the year, if he or she is at least 65 years old at the end of the year; or
(b) the qualified pension income received by the individual in the year, if he or she is less than 65 years old at the end of the year.
An individual who is
(a) entitled to deduct an amount under subsection 118.01(2) of the federal Act for a taxation year beginning after 2005; and
(b) resident in Manitoba at the end of the taxation year;
may claim the amount that would be determined for B in the formula in that subsection if the amount in clause (a) of the description of B were "$10,000".
An individual who is resident in Manitoba on the last day of the taxation year may claim, for each of his or her children who is less than 16 years old at the end of the year, the lesser of $500. and the amount, if any, by which
(a) the total of all amounts each of which is an eligible fitness expense, as defined in subsection 118.03(1) of the federal Act, paid in the year by the individual, or by the individual's spouse or common-law partner, in respect of the child;
exceeds
(b) the total of all amounts each of which is an amount
(i) that relates to an eligible fitness expense included under clause (a) in respect of the child for the year, and
(ii) that any person is or was entitled to receive as a reimbursement, allowance or other form of assistance,
other than an amount that is included in computing the income for any taxation year of that person and is not deductible in computing the taxable income of that person.
Increased age limit for child with disability
When applying subsection (10.2) to a child in respect of whom an individual is eligible to claim an amount under subsection (12) (dependant disability amount), the reference to "16 years" shall be read as "18 years".
Additional fitness credit for child with disability
An individual who is entitled to claim amounts under subsections (10.2) and (12) in respect of a child may claim the additional amount of $500. if the amount claimed by the individual in respect of the child under subsection (10.2) for the taxation year is at least $100.
An individual who is entitled to deduct an amount under subsection 118.3(1) of the federal Act for the taxation year may claim
(a) $6,180.; plus
(b) if he or she is less than 18 years old at the end of the year, the amount, if any, by which $3,605. exceeds the amount determined by the following formula:
A − $2,112.
In this formula, A is the total of the amounts paid in the year for the care and supervision of the individual and included in computing any other individual's deduction under section 63, 64 or 118.2 of the federal Act.
An individual who is entitled to deduct an amount in respect of another person under subsection 118.3(2) of the federal Act for the taxation year may claim the amount determined by the following formula:
A − B/P
In this formula,
A
is the other person's disability amount for the year under subsection (11);
B
is the amount that would be the other person's tax payable under this Act for the year if the only amounts claimed by the other person under this section were the amounts claimable under subsections (3) to (10);
P
is the percentage that applies to the taxation year under clause (2)(a).
For this purpose, if the other person was not resident in Manitoba at the end of the taxation year, this formula must be applied as if he or she were.
Unused tuition and education amount
An individual who is entitled to deduct an amount under subsection 118.61(2) of the federal Act may claim an amount equal to the lesser of
(a) the amount that would be the individual's tax payable under this Act for the taxation year if the only amounts claimed under this section were the amounts claimable under subsections (3) to (12) and (15.1); and
(b) the individual's unused tuition and education amount at the end of the preceding taxation year.
For this purpose, an individual's unused tuition and education amount at the end of a taxation year is the amount determined by the following formula:
A + (B − C/P) − (D + E)
In this formula,
A
is
(a) the individual's unused tuition and education amount at the end of the preceding taxation year, or
(b) if the individual was not resident in Manitoba at the end of that year, the individual's unused tuition and education tax credits at the end of that year determined under section 118.61 of the federal Act and divided by the percentage specified in paragraph 117(2)(a) of the federal Act (lowest federal marginal rate);
B
is the individual's tuition and education amount for the year determined under subsection (14);
C
is the lesser of
(a) B multiplied by the percentage determined for P, and
(b) the amount that would be the individual's tax payable under this Act for the year if the only amounts claimed under this section were the amounts claimable under subsections (3) to (12) and (15.1);
D
is the amount claimable by the individual under this subsection for the preceding taxation year;
E
is the tuition and education amount transferred for the year by the individual under subsection (14.1);
P
is the percentage that applies to the taxation year under clause (2)(a).
An individual who is entitled to deduct an amount under subsection 118.5(1) or 118.6(2) of the federal Act for the taxation year may claim the amount determined by the following formula:
(A + B)/P
In this formula,
A
is the amount deducted by the individual for the year under subsection 118.5(1) of the federal Act;
B
is the amount that would be deductible by the individual for the year under subsection 118.6(2) of the federal Act if, in the description of B in that subsection,
(a) the dollar amount set out in clause (a) were $400., and
(b) the dollar amount set out in clause (b) were $120;
P
is the percentage specified in paragraph 117(2)(a) of the federal Act (lowest federal marginal rate).
Transfer of tuition and education amount
For the purpose of subsections (15) and (16), the tuition and education amount transferred by an individual to a person (the "transferee") to whom the individual transferred related tuition and education tax credits for the purpose of section 118.8 or 118.9 of the federal Act is the amount that the individual designates in writing for the year for the purpose of subsection (15) or (16), not exceeding the amount determined by the following formula:
(A − B)/P
In this formula,
A
is the lesser of
(a) $545., and
(b) the individual's tuition and education amount for the year determined under subsection (14), multiplied by the percentage determined for P;
B
is the amount that would be the individual's tax payable under this Act for the year if
(a) he or she were resident in Manitoba at the end of the taxation year, and
(b) the only amounts claimed by individual for the year under this section were the amounts claimable under subsections (3) to (13) and (15.1);
P
is the percentage that applies to the taxation year under clause (2)(a).
But if the individual is resident in another province on the last day of the taxation year, the amount transferred cannot exceed the maximum tuition and education amount of the individual determined under subsection (14) that could be applied to reduce the tax payable by the transferee for the year under the income tax law of that province if he or she were resident in that province on the last day of the taxation year and his or her tax otherwise payable exceeded the amount of any credit arising from the transferred amount.
Tuition and education amounts transferred from child
An individual who is entitled to deduct an amount under section 118.9 of the federal Act in respect of tuition and education tax credits transferred for the year from his or her child or grandchild may claim an amount equal to the tuition and education amount transferred for the year by the child or grandchild.
4.6(15.1) and (15.2) Repealed, S.M. 2007, c. 6, s. 26.
Amounts transferred from spouse or common-law partner
An individual who is entitled to deduct an amount under section 118.8 of the federal Act for the taxation year may claim the amount determined by the following formula:
A + B − C
In this formula,
A
is the tuition and education amount, if any, transferred to the individual for the year by his or her spouse or common-law partner;
B
is the total of the spouse's or common-law partner's
(a) age amount for the year determined under subsection (4),
(b) pension income amount for the year determined under subsection (10), and
(c) disability amount for the year determined under subsection (11);
C
is the amount determined by the following formula:
(D − E)/P
In this formula,
D
is the amount that would be the spouse's or common-law partner's tax payable under this Act for the year if the only amounts claimed by him or her under this section were the amounts claimable under subsections (3), (9) and (13),
E
is the lesser of
(a) the spouse's or common-law partner's tuition and education amount for the year determined under subsection (14) multiplied by the percentage determined for P, and
(b) the amount that would be the spouse's or common-law partner's tax payable under this Act for the year if the only amounts claimed by him or her under this section were the amounts claimable under subsections (3) to (13),
P
is the percentage that applies to the taxation year under clause (2)(a).
Subject to subsection (16.2), for a taxation year ending after 2007 an individual may claim the amount, if any, by which 9% of the individual's income for the year is exceeded by
(a) if the individual is a trust, $2,065.; or
(b) if the individual is not a trust, the total of $2,065. and the following amounts that apply:
(i) $2,065., if the individual has claimed an amount for the year under subsection (5) (claim re spouse or common-law partner) or under subsection (6) (eligible dependant amount),
(ii) $2,752. for each dependant in relation to whom the individual or the individual's spouse or common-law partner was, at any time in the year, an eligible individual (as defined in section 122.6 of the federal Act), other than a dependant in respect of whom an individual has claimed an amount for the year under subsection (6) (eligible dependant amount) or (7) (infirm dependant amount),
(iii) $2,752. for each dependant in respect of whom the individual has claimed an amount for the year under subsection (7) (infirm dependant amount),
(iv) $2,065., if the individual was at least 65 years old at the end of the year,
(v) $2,752., if the individual has claimed an amount for the year under subsection (11) (disability amount),
(vi) $2,752. for each individual in respect of whom the individual has claimed an amount for the year under subsection (12) (dependant disability amount),
(vii) $2,752., if the individual has claimed an amount for the year under subsection (16) in relation to a physical or mental impairment of the individual's spouse or common-law partner,
(viii) $2,065., if the individual claimed an amount for the year under subsection (16) in relation to an age credit deductible under subsection (4) by the individual's spouse or common-law partner.
In determining the amounts that may be included in computing the amount that may be claimed under subsection (16.1),
(a) if two individuals who are spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only the individual with the greater income for the year may include it;
(b) if two or more individuals who are not spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only one of them may include the amount and, if they cannot agree as to who will include it, only the individual with the greater income for the year may include it;
(c) if an individual becomes bankrupt in a calendar year, the total of the amounts that may be included under any provision of subsection (16.1) for the individual's taxation years ending in the calendar year shall not exceed the total of the amounts that would have been included under that provision for the calendar year if the individual had not become bankrupt; and
(d) the amount determined for C in the formula in subsection (16) shall be applied to reduce the amounts included in A and B in that formula in the same order in which those amounts must be deducted in computing the tax payable under this Act by the individual's spouse or common-law partner.
An individual who is entitled to deduct an amount under subsection 118.2(1) of the federal Act for the taxation year may claim the amount determined by the following formula:
A/P
In this formula,
A
is the amount that would be deductible by the individual under that subsection if
(a) it were computed with respect to the same medical expenses with respect to which the individual deducted an amount under that subsection,
(b) the amount determined for C in the formula were the lesser of $1,728. and 3% of the individual's income for the year, and
(c) in determining the amount for D in the formula, the amount determined for F were the lesser of $1,728. and 3% of the dependant's income for the year;
P
is the percentage specified in paragraph 117(2)(a) of the federal Act (lowest federal marginal rate).
An individual's donations tax credit for a taxation year is the amount that would be deductible under subsection 118.1(3) of the federal Act for the year if, in applying the formula under that subsection,
(a) the percentage referred to in the description of A were the percentage that applies to the taxation year under clause (2)(a);
(b) the percentage referred to in the description of C were 17.4%; and
(c) the amounts determined for B and D were the same as the amounts determined for B and D, respectively, in applying the formula to determine the amount actually deducted.
An individual who is entitled to deduct an amount under section 118.62 of the federal Act for the taxation year may claim the amount determined for B in the formula under that section for the year.
Limitations and interpretation
For the purposes of subsection (2),
(a) no amount may be claimed under subsection (5) or (6) by an individual for a taxation year for more than one other person;
(b) no amount may be claimed under subsection (6) by an individual for a taxation year for a person in respect of whom another individual has claimed an amount under subsection (5), if throughout the year the person and that other individual are married to each other or in a common-law partnership and are not living separate and apart because of a breakdown of their marriage or common-law partnership;
(c) only one individual is entitled to claim an amount under subsection (6) in respect of the same person or the same domestic establishment and, if two or more individuals otherwise entitled to claim such an amount attempt to claim it, none of them may claim it;
(d) if an individual is entitled to claim an amount under subsection (8) in respect of a person, that person is deemed for the purpose of subsection (7) not to be a dependant of any individual;
(e) if more than one individual is entitled to claim an amount for a taxation year under subsection (7), (8), (10.1), (10.2) or (10.4) in respect of the same person,
(i) the total of the amounts that may be claimed by them under that subsection for the year shall not exceed the maximum that could be claimed for the person for the year by any one of the individuals if he or she were the only individual entitled to claim an amount for the year under that subsection for that person, and
(ii) if the individuals cannot agree as to what portion of the amount each can so deduct, the minister may fix the portions;
(f) subsection 118(5) of the federal Act applies, with necessary modifications, in determining whether an amount may be claimed under subsection (5), (6), (7) or (8);
(g) a person is a dependant of an individual for a taxation year for the purpose of subsection (6) if the person is at any time in the year dependent on the individual for support and is
(i) the child or grandchild of the individual or of the individual's spouse or common-law partner, or
(ii) resident in Canada at any time in the year and is the parent, grandparent, brother, sister, uncle, aunt, niece or nephew of the individual or of the individual's spouse or common-law partner;
(h) subsections 118(7) and (8) of the federal Act apply, with necessary modifications, in determining any amount that may be claimed under subsection (10);
(i) subsections 118.3(3) and (4) of the federal Act apply, with necessary modifications, in determining any amounts that may be claimed under subsections (11) and (12);
(j) section 118.4 of the federal Act applies, with necessary modifications, in determining any amounts that may be claimed under subsections (11), (12), (14) and (17);
(k) no amount may be claimed under any of subsections (3) to (8) or (10) by a trust;
(l) if an individual is resident in Canada for part of a calendar year and for another part of the calendar year is non-resident,
(i) the individual may claim an amount under subsections (9), (10), (10.1), (10.2), (10.4), (14) and (17) to (19) only to the extent it can reasonably be considered to be wholly applicable to the period or periods in the year throughout which the individual was resident in Canada, computed as though the period or periods were the whole taxation year,
(ii) the individual may claim only such part of the amounts otherwise claimable under subsections (3) to (8), (11) and (12), (15), (16) and (16.1) as can reasonably be considered to apply to the period or periods in the year throughout which the individual was resident in Canada, computed as the period or periods were the whole taxation year, and
(iii) the amounts that may be claimed under subsections (3) to (19) in respect of the period or periods in the year throughout which the individual was non-resident shall be computed as if that period or periods were the whole taxation year,
but the amount that may be claimed under each of those subsections for the year cannot be more than the amount that would have been claimable under that subsection if the individual had been resident in Canada throughout the year;
(m) the amounts that may be claimed under subsections (3) to (19) must be claimed in the following order and before claiming any credit under sections 4.7 to 4.9:
(i) subsections (3) to (8), in any order,
(ii) subsections (9) to (19), in the order of those subsections;
(n) if a separate return of income with respect to an individual is filed under subsection 70(2), 104(23) or 150(4) of the federal Act for a period ending in a calendar year and another return of income under this Act with respect to the individual is filed for a period ending in the same year, the total of the amounts claimed in those returns under subsections (9) to (15) and (17) to (19) cannot exceed the amounts that could have been claimed under those subsections for the year if that separate return had not been filed;
(o) an individual who at no time in the year is resident in Canada may claim only the following amounts under subsections (3) to (19):
(i) the amount claimable under subsections (9), (11), (13), (18) and (19), and
(ii) the amount that would be claimable under subsection (14) if that subsection were read without reference to "or 118.6(2)";
(p) clause (o) does not apply to an individual for a taxation year if all or substantially all of the individual's income for the year was included in computing his or her taxable income earned in Canada for the year for the purposes of Part I of the federal Act; and
(q) if an individual becomes bankrupt in a calendar year, for each taxation year ending in the year the individual may claim
(i) amounts under subsections (9), (10), (10.1), (10.2), (10.4), (14) and (17) to (19), only to the extent that they can reasonably be considered to be wholly applicable to the taxation year,
(ii) only such part of the amounts otherwise claimable under subsections (3) to (8), (11), (12), (15), (16) and (16.1) as can reasonably be considered to apply to the taxation year,
but the total of the amounts that may be claimed under each of those subsections for all of the individual's taxation years ending in the calendar year cannot be more than the amount that would have been claimable under that subsection if the individual had not become bankrupt.
S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 17; S.M. 2002, c. 19, s. 19; S.M. 2003, c. 4, s. 36; S.M. 2005, c. 40, s. 29; S.M. 2006, c. 24, s. 31; S.M. 2007, c. 6, s. 26; S.M. 2008, c. 3, s. 20.
The dividend tax credit for a taxation year of an individual who was resident in Manitoba at the end of the year is as follows:
(a) for a taxation year ending after 2001 and before 2006, 25% of the dividend gross-up amount included in computing the individual's income for the year;
(b) for the 2006 and subsequent taxation years, the total of
(i) the following percentage of the total amount included in the individual's income for the year in respect of a taxable dividend for which the federal dividend gross-up rate is 25%:
(A) 4.87% for the 2006 taxation year,
(B) 3.67% for the 2007 taxation year,
(C) 3.15% for a taxation year ending after 2007, and
(ii) 11% of the total amount included in the individual's income for the year in respect of a taxable dividend for which the federal dividend gross-up rate is 45%.
An individual must claim the maximum dividend tax credit to which he or she is entitled under subsection (1) before claiming any amount under section 4.8 or 4.9.
S.M. 2000, c. 39, s. 29; S.M. 2003, c. 4, s. 37; S.M. 2006, c. 24, s. 32; S.M. 2007, c. 6, s. 27.
Overseas employment tax credit
The overseas employment tax credit for a taxation year of an individual who was resident in Manitoba at the end of the year is 50% of the amount deducted under section 122.3 of the federal Act in computing the individual's tax payable for the year under that Act.
S.M. 2000, c. 39, s. 29; S.M. 2003, c. 4, s. 38.
An individual's minimum tax carry-over credit for a taxation year is an amount equal to 50% of the amount deducted under section 120.2 of the federal Act in computing the individual's tax payable for the year under that Act.
Graduate's tuition fee income tax rebate
For the 2007 and subsequent taxation years, an individual who graduated after 2006 and is resident in Manitoba at the end of the taxation year may claim, as a tuition fee tax credit for the taxation year, an amount not exceeding the least of the following amounts:
(a) $2,500.;
(b) the amount, if any, that would be determined by Rule 7 of subsection 4(1) if that rule were read without reference to clause (i);
(c) an amount equal to 10% of the individual's eligible tuition amount at the end of the taxation year;
(d) the amount, if any, by which 60% of the individual's eligible tuition amount at the end of the taxation year exceeds the total of all amounts each of which is the tuition fee tax credit that was deducted in computing the individual's tax payable for one of the preceding 19 taxation years;
(e) $25,000. minus the total of all amounts each of which is the tuition fee tax credit that was deducted in computing the individual's tax payable for a preceding taxation year.
The following definitions apply in this section.
"eligible tuition amount" of an individual at the end of a taxation year (the "particular year") means the total of all amounts each of which is a tuition fee
(a) that was paid for a course that ended when the individual graduated or before that time;
(b) that was eligible for a tuition credit for a taxation year ending after 2003 and not more than 19 years before the particular year; and
(c) in respect of which the individual first claimed an amount under this section within 10 years after his or her first graduation after completing the course. (« frais de scolarité admissibles »)
"graduate" means complete all of the requirements for a degree, diploma, certificate of completion or other proof of graduation for a program or course of studies in respect of which the tuition fees or any part of them were eligible for tuition credits. (« obtenir un diplôme »)
"tuition credit" means an amount deductible under subsection 118.5(1) of the federal Act in computing an individual's tax payable under that Act. (« crédit d'impôt pour frais de scolarité »)
Application to deceased graduate
When applying subsection (1) to the last taxation year of a deceased individual, it shall be read without reference to clauses (a) and (c).
Repealed, S.M. 2006, c. 24, s. 33.
Family tax reduction — 2001 to 2007 taxation years
An individual's tax reduction for a taxation year beginning after 2000 and ending before 2008 is the amount, if any, by which 1% of the individual's income for the year is exceeded by
(a) if the individual is a trust, $225.; or
(b) if the individual is not a trust, the total of $225. and the following amounts that apply:
(i) $225., if the individual has claimed an amount for the year under subsection 4.6(5) (claim re spouse or common-law partner) or under subsection 4.6(6) (equivalent-to-spouse amount),
(ii) $300. for each dependant in relation to whom the individual or the individual's spouse or common-law partner was, at any time in the year, an eligible individual (as defined in section 122.6 of the federal Act), other than a dependant in respect of whom an individual has claimed an amount for the year under subsection 4.6(6) (equivalent-to-spouse amount) or (7) (infirm dependant amounts),
(iii) $300. for each dependant in respect of whom the individual has claimed an amount for the year under subsection 4.6(7) (infirm dependant amounts),
(iv) $225., if the individual was at least 65 years old at the end of the year,
(v) $300., if the individual has claimed an amount for the year under subsection 4.6(11) (disability amount),
(vi) $300. for each individual in respect of whom the individual has claimed an amount for the year under subsection 4.6(12) (dependant disability amounts),
(vii) $300., if the individual has claimed an amount for the year under subsection 4.6(16) in relation to a physical or mental impairment of the individual's spouse or common-law partner, and
(viii) $225., if the individual claimed an amount for the year under subsection 4.6(16) in relation to an age credit deductible under subsection 4.6(4) by the individual's spouse or common-law partner.
In determining the amounts that may be included in computing a reduction under subsection (2),
(a) if two individuals who are spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only the individual with the greater income for the year may include the amount in respect of the dependant;
(b) if two or more individuals who are not spouses or common-law partners of each other may otherwise include an amount in respect of the same dependant for a taxation year, only one of them may include the amount and, if they cannot agree as to who will include the amount, only the individual with the greater income for the year may include the amount;
(c) if an individual becomes bankrupt in a calendar year, the total of the amounts that may be included under any provision of subsection (2) for the individual's taxation years ending in the calendar year shall not exceed the total of the amounts that would have been included under that provision for the calendar year if the individual had not become bankrupt; and
(d) the amount determined for C in the formula in subsection 4.6(16) shall be applied to reduce the amounts included in A and B in that formula in the same order in which those amounts must be deducted in computing the tax payable under this Act by the individual's spouse or common-law partner.
Repealed, S.M. 2006, c. 24, s. 33.
S.M. 2000, c. 39, s. 29; S.M. 2003, c. 4, s. 39; S.M. 2006, c. 24, s. 33; S.M. 2007, c. 6, s. 29.
Political Contribution Credit
Political contribution credit — 2002 to 2004
An individual's political contribution tax credit for a taxation year after 2001 and before 2005 is the lesser of $500. and the amount determined according to the following table:
Total contributions (T) | Political Contribution Credit (PCC) |
$200. or less | PCC = .75 × T |
more than $200. but not more than $550. | PCC = $150. + (T − $200.)/2 |
more than $550. | PCC = $325. + (T − $550.)/3 |
Political contribution credit — 2005 and subsequent taxation years
An individual's political contribution tax credit for a taxation year ending after 2004 is the lesser of $650. and the amount determined according to the following table:
Total contributions (T) | Political Contribution Credit (PCC) |
$400. or less | PCC = .75 × T |
more than $400. but not more than $750. | PCC = $300. + (T − $400.)/2 |
more than $750. | PCC = $475. + (T − $750.)/3 |
Determination of amount contributed
An amount may be included for a taxation year in the total contributions referred to in subsection (1) or (1.1) only if
(a) the amount is contributed, otherwise than as a donation in kind, in the year by the individual to a registered political party or registered candidate; and
(b) payment of the amount is proven by filing with the treasurer a receipt containing prescribed information and signed by the chief financial officer of the registered political party or the official agent of the registered candidate, as the case may be.
For the purposes of this section, "chief financial officer", "contribution", "donations in kind", "official agent", "registered candidate" and "registered political party" have the same meanings as in The Elections Finances Act.
S.M. 2000, c. 39, s. 29; S.M. 2002, c. 19, s. 20; S.M. 2005, c. 40, s. 30; S.M. 2006, c. 24, s. 34.
Foreign Tax Credit
If an individual who was resident in Manitoba on the last day of the taxation year paid non-business-income tax for the year to the government of a country other than Canada (the "other country") and is not subject to minimum tax under section 127.5 of the federal Act for the year, the individual's foreign tax credit in respect of the other country is the amount claimed by the individual, which shall not exceed the lesser of
(a) the amount, if any, by which
(i) the non-business-income tax paid by the individual for the year to the government of the other country,
exceeds
(ii) the amount deductible for the year as a foreign tax deduction under subsection 126(1) of the federal Act in respect of that non-business-income tax; and
(b) the amount determined by the following formula:
A × B/C
In this formula,
A
is the tax otherwise payable under this Act by the individual for the year;
B
is the amount, if any, by which the total of the individual's qualifying incomes exceeds the total of the individual's qualifying losses
(i) for the year, if the individual was resident in Canada throughout the year, or
(ii) for the part of the year throughout which the individual was resident in Canada, if the individual was not resident in Canada throughout the year,
from sources in the other country, determined as if
(iii) no business were carried on by the individual in the other country,
(iv) no amount were deducted under subsection 91(5) of the federal Act in computing the individual's income for the year, and
(v) the individual's income from employment for the year in the other country, if any, were reduced by the lesser of the amounts determined under paragraphs 122.3(1)(c) and (d) of the federal Act in respect of that employment;
C
is the amount, if any, by which
(i) the individual's Manitoba income for the year computed without reference to paragraph 20(1)(ww) of the federal Act, if the individual was resident in Canada throughout the year, or
(ii) the individual's Manitoba income for the year that is included in the amount determined under paragraph 114(a) of the federal Act in respect of the individual for the year, if the individual was not resident in Canada throughout the year,
exceeds
(iii) the total of all amounts each of which is an amount deducted under section 110.6 or paragraph 111(1)(b) of the federal Act, or deductible under any of paragraphs 110(1)(d) to (d.3), (f), (g) and (j) or section 112 of that Act, in computing the individual's taxable income for the year.
For the purposes of this section,
(a) the government of a country other than Canada includes the government of a state, province or other political subdivision of a country other than Canada;
(b) any income that would be tax-exempt income if it were not subject to an income or profits tax by the government of a country other than Canada is deemed to be income from a separate source in that country; and
(c) "non-business-income tax", "qualifying incomes", "qualifying losses" and "tax-exempt income" have the same meaning as in subsection 126(7) of the federal Act.
S.M. 2000, c. 39, s. 29; S.M. 2004, c. 43, s. 45.
Mutual Fund Trusts
Mutual fund trust capital gains refund
A mutual fund trust is entitled to receive, for a taxation year after 2000, a refund equal to the lesser of
(a) its Manitoba refundable capital gains tax on hand at the end of the year; and
(b) the amount determined by the following formula:
.087 × A × B/C
In this formula,
A
is the trust's capital gains redemptions under subsection 132(4) of the federal Act for the year,
B
is the trust's Manitoba income for the year or, if it has no income for the year, the amount that would be its Manitoba income for the year if its income for the year were $1,000.,
C
is the trust's income for the year or, if it has no income for the year, $1,000.
Manitoba refundable capital gains tax on hand
For the purpose of subsection (1), the trust's Manitoba refundable capital gains tax on hand at the end of a taxation year is the amount, if any, by which the total of
(a) the trust's Manitoba refundable tax on hand at the end of 2000, as determined by the minister; and
(b) the total of all amounts, each of which is an amount in respect of the year or a preceding taxation year ending after 2000 throughout which the trust was a mutual fund trust (referred to in this clause as the "particular year"), that is equal to the lesser of
(i) the tax otherwise payable under this Act for the particular year, and
(ii) the amount determined by the formula
.174 × A × B/C
where
A
is the lesser of the trust's income for the particular year and its taxed capital gains under subsection 130(3) of the federal Act for the particular year,
B
is the trust's Manitoba income for the particular year or, if it has no income for that year, the amount that would be its Manitoba income for that year if its income for that year were $1,000.,
C
is the trust's income for the particular year or, if it has no income for that year, $1,000.;
exceeds the total of the trust's refunds under this section for preceding taxation years ending after 2000.
Applying refund to other liability
Instead of refunding an amount to a trust under subsection (1), the treasurer may, where the trust is liable or about to become liable to make any payment under this Act, apply the amount to that other liability and notify the trust of that action.
S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 18; S.M. 2002, c. 19, s. 21; S.M. 2008, c. 3, s. 21.
Repealed.
S.M. 2000, c. 39, s. 29; S.M. 2007, c. 6, s. 30.
Subsection 128(2) of the federal Act applies for the purposes of this Act.
Repealed, S.M. 2007, c. 6, s. 30.
If under Rule 11 of section 4 an amount is deemed to be an overpayment on account of an individual's tax payable for a taxation year,
(a) the overpayment is deemed to have arisen on the later of the filing due date for the year and the day the individual's return of income for the year is filed;
(b) all or any part of the overpayment may be applied to reduce the federal tax payable by the individual for the year if a collection agreement so provides; and
(c) the remainder of the overpayment, if any, is refundable to the individual out of the Consolidated Fund.
S.M. 2000, c. 39, s. 29; S.M. 2007, c. 6, s. 30.
Refundable Tax Credits
Subject to subsections (2) and (4), an individual who resided in Manitoba on the last day of the taxation year may claim the following refundable tax credits in computing his or her tax payable under section 4 for the year:
(a) the amount, if any, by which
(i) the total of the individual's education property tax credit, if any, determined under section 5.4 and the individual's school tax credit, if any, determined under section 5.5
exceeds
(ii) the amount of a shelter allowance benefit (as described in the regulations under The Housing and Renewal Corporation Act) received in the year by the individual or by another individual while he or she was the individual's cohabiting spouse or common-law partner as defined in section 5.3; and
(b) the individual's personal tax credit, if any, determined under section 5.7;
(c) and (d) repealed, S.M. 2004, c. 43, s. 46;
(e) the individual's primary caregiver tax credit, if any, determined under section 5.11.
Limited credits for recipients of social assistance
Except as permitted by the regulations, an individual is not eligible for a refundable tax credit under clause (1)(a) or (b) for a taxation year if
(a) he or she received in the year a social assistance payment referred to in paragraph 56(1)(u) of the federal Act; or
(b) at the end of the year, he or she is the cohabiting spouse or common-law partner, as defined in section 5.3, of another individual who received such a payment in the year.
The Lieutenant Governor in Council may make regulations for the purpose of subsection (2).
No amount may be claimed under this section for an individual's taxation year if the individual has failed to file, under section 150 of the federal Act as it applies for the purposes of this Act, a return for the year within three years after the end of the year.
S.M. 1988-89, c. 19, s. 19; S.M. 1989-90, c. 15, s. 16; S.M. 1991-92, c. 31, s. 16; S.M. 1993, c. 46, s. 38; S.M. 1994, c. 23, s. 13; S.M. 1996, c. 66, s. 8; S.M. 1997, c. 49, s. 16; S.M. 1998, c. 30, s. 27; S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 19; S.M. 2004, c. 43, s. 46; S.M. 2007, c. 6, s. 31; S.M. 2008, c. 3, s. 22.
Refundable tax credits for year of death
When an individual who is resident in Manitoba dies,
(a) if immediately before death the individual was the cohabiting spouse or common-law partner, as defined in section 5.3, of another individual who is resident in Manitoba at the end of the calendar year in which the death occurred, the other individual may claim the refundable tax credits that the deceased individual would have been entitled to claim under section 5 for the year if that other individual had been resident in Manitoba and the cohabiting spouse or common-law partner of the deceased individual at the end of the year; and
(b) in any other case, the refundable tax credits for the individual's last taxation year shall be determined as if he or she had been resident in Manitoba at the end of the year.
S.M. 2000, c. 39, s. 29; S.M. 2004, c. 43, s. 47.
More than one return in the same calendar year
If more than one return of income is filed under the federal Act, as it applies for the purposes of this Act, by or in respect of an individual for two or more periods ending in the same calendar year, the refundable tax credits that may be claimed for the year under clauses 5(1)(a) to (d) by the individual or the individual's spouse or common-law partner are limited to the amounts that he or she could have claimed under those clauses if the individual had filed a single return of income that took into account the individual's entire income for all periods for which such returns were filed.
No credit for separate return under subsection 70(2)
Section 5 does not apply to a return filed under subsection 70(2) of the federal Act as it applies for the purposes of this Act.
Education Property and School Tax Credits
In this section and sections 5.4 to 5.7,
"cohabiting spouse or common-law partner" of an individual at any time means the person who at that time is the individual's spouse or common-law partner and who at that time is not living separate and apart from the individual, and, for this purpose, a person shall not be considered to be living separate and apart from an individual unless
(a) they were living separate and apart at that time, because of a breakdown of their marriage or common-law partnership, for a period of at least 90 days that includes that time, or
(b) they were occupying and inhabiting separate residences at that time because of medical necessity; (« conjoint visé ou conjoint de fait »)
"dwelling unit cost" of a principal residence of an individual for a taxation year or part of a year means
(a) the amount of the municipal taxes, if any, paid in respect of the principal residence for the year or for the portion of the year that it was the individual's principal residence and was owned by the individual or the individual's spouse or common-law partner,
(b) if the principal residence is a mobile home, the municipal licence fee, if any, paid by the individual or the individual's spouse or common-law partner in respect of the principal residence for the year or for the portion of the year that it was the individual's principal residence,
(c) if no municipal taxes or licence fees and no rent is paid by the individual or the individual's spouse or common-law partner in respect of the principal residence, the total of the government levies or service fees, if any, paid by the individual or the individual's spouse or common-law partner in respect of the principal residence for the year or for the portion of the year that it was the individual's principal residence, and, for this purpose, "government levies or service fees" means levies or fees imposed in respect of services of the type normally provided by a municipal council that are provided by the government, a local government district or a person who provides such services in the area in which the principal residence is located, and
(d) an amount equal to 20% of the rental or other payments (other than taxes, fees or levies referred to in clauses (a) to (c) and payments for meals or board), if any, paid by the individual or the individual's spouse or common-law partner in respect of the principal residence for the year or the portion of the year that it was the individual's principal residence, and, for this purpose, if the principal residence is a room in a personal care home, the rental or other payments are deemed not to exceed 1/2 of the portion of the per diem charges paid to the personal care home by or for the individual that has not been claimed as a medical expense under subsection 4.6(17) by any taxpayer; (« frais de logement »)
"family income" of an individual for a taxation year means
(a) the individual's income for the year plus, if the individual has a cohabiting spouse or common-law partner at the end of the year, the spouse's or common-law partner's income for the year, or
(b) where applicable, the amount that would be determined under clause (a) if no amount were included under subsection 56(6) of the federal Act (universal child care benefit) or deducted under paragraph 60(y) of that Act (repayment of universal child care benefit); (« revenu familial »)
"municipal taxes" means taxes payable for municipal or school purposes, in respect of Manitoba residential or farm property to a municipality, a local government district or the minister appointed by the Lieutenant Governor in Council to administer The Northern Affairs Act, before any municipal tax reduction; (« taxes municipales »)
"municipal tax reduction", in relation to a property, means the amount by which municipal taxes imposed in respect of the property are, or are required to be, reduced under section 5.6; (« réduction de taxes municipales »)
"occupancy cost" of an individual for a taxation year means the amount, if any, by which
(a) the total of all amounts each of which is the dwelling unit cost of a principal residence of the individual for the year or a part of the year,
exceeds
(b) $250.; (« coût d'habitation »)
"principal residence" of an individual for a taxation year or part of a year means a residential dwelling unit located in Manitoba that is
(a) owned or rented by the individual or the individual's spouse or common-law partner throughout the year or that part of the year,
(b) ordinarily occupied or inhabited by the individual as a residence throughout the year or that part of the year,
(c) designated by the individual in the prescribed manner to be the individual's principal residence for the year or that part of the year, and
(d) not designated by any other individual as a principal residence for the year or that part of the year.
It includes contiguous land that contributes to its use and enjoyment as a residence, but does not include any land or premises that are exempt from municipal taxes and are not the subject of a grant in lieu of municipal taxes. It also does not include any lands that are not assessed as residential property. For the purpose of clause (b), if at any time an individual and his or her cohabiting spouse or common-law partner occupy or inhabit separate residences, each of them is deemed to ordinarily occupy and inhabit each such residence with the other at that time. (« résidence principale »)
S.M. 2000, c. 39, s. 29; S.M. 2002, c. 19, s. 22; S.M. 2003, c. 4, s. 40; S.M. 2006, c. 24, s. 35; S.M. 2007, c. 6, s. 33.
Eligibility for education property tax credit
Subject to subsection (2), an individual who resides in Manitoba on the last day of a taxation year is eligible for an education property tax credit for the year unless
(a) the individual is less than 16 years old at the end of the year;
(b) the individual resides in the principal residence of, and is claimed as a dependant of, another individual for the taxation year;
(c) the individual is exempt from tax under paragraph 149(1)(a) or (b) of the federal Act; or
(d) the individual is not a Canadian citizen and is on active military service as a member of the armed forces of a country other than Canada, or is a member of the family of such an individual.
Only one spouse or partner eligible for education property tax credit
An individual is not eligible for an education property tax credit
(a) for a taxation year if he or she was, throughout the year, the cohabiting spouse or common-law partner of another individual who has claimed an education property tax credit in respect of all or any part of the year; or
(b) in respect of any period throughout which he or she was the cohabiting spouse or common-law partner of another individual who has claimed an education property tax credit in respect of the period.
Subject to subsection (4), an individual's education property tax credit for a taxation year is the amount determined by the following formula:
A − B
In this formula,
A
is the lesser of the following amounts:
(a) the individual's occupancy cost for the year, and
(b) an amount determined by regulation for the year or, in the absence of such a regulation, the amount, if any, by which $675. exceeds the lesser of
(i) $75., and
(ii) 1% of the individual's family income for the year;
B
is the municipal tax reduction given in respect of a principal residence of the individual for the year or part of the year plus, if the year is 2007, the amount, if any, of the remission granted to the individual under the Education Property Tax Remission Order, Manitoba Regulation 70/2007.
NOTE: "$75" applies to 2008 and later years. For 2007, it was $150. For earlier years, it was $275.
Education property tax credit for seniors
In determining the education property tax credit of an individual who is at least 65 years old at the end of the taxation year, the references in clause (b) of the description of A in subsection (3) to "$675." and "$75." shall be read as references to "$800." and "$200.", respectively.
NOTE: "$75." and "$200." apply to 2008 and later years. For 2007, they were $150. and $275. respectively. For earlier years, they were $275. and $400., respectively.
S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 21; S.M. 2002, c. 19, s. 23; S.M. 2003, c. 4, s. 41; S.M. 2007, c. 6, s. 34; S.M. 2008, c. 3, s. 23.
Eligibility for school tax credit
An individual is eligible for a school tax credit for a taxation year only if
(a) the individual is at least 55 years old at the end of the year;
(b) the individual or the individual's cohabiting spouse or common-law partner is the owner of the individual's principal residence or of a life interest in the principal residence, or has entered into an agreement to purchase the principal residence;
(c) the individual or the individual's cohabiting spouse or common-law partner has paid municipal taxes for school purposes in respect of the principal residence for the year; and
(d) the individual's cohabiting spouse or common-law partner has not claimed a school tax credit for the year.
An individual's school tax credit for a taxation year is the least of the following amounts:
(a) the amount determined by the following formula:
$175. − .02A
In this formula, A is the amount, if any, by which the individual's family income for the year exceeds $15,000.;
(b) the amount, if any, by which the municipal taxes imposed for school purposes for the year in respect of the individual's principal residence exceed $160.;
(c) the amount, if any, which the individual's occupancy cost for the year exceeds the amount determined for the year for A in the formula in subsection 5.4(3).
An individual whose family income for a taxation year exceeds $15,000. may use a table approved by the treasurer for determining the amount otherwise determined by the formula in clause (2)(a).
The municipal taxes imposed for a calendar year in respect of a principal residence of an individual who is, or whose spouse or common-law partner is, its assessed owner shall be reduced, in accordance with the regulations, by the lesser of
(a) $525. or any other amount prescribed by regulation for that year; and
(b) the amount by which those taxes exceed $250.
Reimbursement of municipality or local government district
The Minister of Finance for Manitoba shall ensure that each municipality and local government district is reimbursed out of the Consolidated Fund, in accordance with the regulations, for the municipal tax reductions made under this section.
The Minister of Finance for Manitoba may require a portion of the amount payable to a municipality or local government district under subsection (2) to be paid directly to a school board for which it levies school taxes. The amount so paid reduces the amount otherwise payable by the municipality or local government district to the school board.
Repayment of municipal tax reduction
If a municipal tax reduction has been granted in respect of a property for a period during which the property was the principal residence of neither its assessed owner nor the assessed owner's spouse or common-law partner, the person who was the assessed owner during that period must pay to the Minister of Finance for Manitoba, in accordance with the regulations, the portion of the reduction that relates to that period.
If a person fails to pay to the Minister of Finance for Manitoba the amount payable under subsection (3) when it is due, interest is payable by the person on the unpaid amount at the prescribed rate from the date the municipal taxes levied in respect of the property for the year were due.
The Minister of Finance for Manitoba may, by registered letter or by a letter served personally, demand that an amount payable under subsection (3) and any interest payable under subsection (4) be paid within 30 days after the date of the demand.
A person who fails to comply with a demand made under subsection (5) may be assessed a penalty equal to the lesser of
(a) $500.; and
(b) $5. multiplied by the number of days that all or any part of the amount demanded remains unpaid after the end of the 30-day period.
Regulations re municipal tax reduction
The Lieutenant Governor in Council may make regulations respecting municipal tax reductions, including regulations
(a) extending or limiting the application of the municipal tax reduction to classes of residential properties or to residential properties based on ownership;
(b) prescribing the manner in which a municipality, a local government district or the minister responsible for the administration of The Northern Affairs Act must grant a municipal tax reduction;
(c) prescribing the manner in which a property may be designated as a principal residence;
(d) respecting applications by property owners for the municipal tax reduction;
(e) respecting changes in principal residences during a taxation year;
(f) respecting the repayment of all or part of a municipal tax reduction under subsection (3);
(g) respecting the reimbursement of municipalities and local government districts under subsection (2).
S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 22; S.M. 2004, c. 43, s. 48; S.M. 2007, c. 6, s. 35.
Personal Tax Credit
Eligibility for personal tax credit
An individual who resides in Manitoba on the last day of a taxation year is eligible for a personal tax credit for the year unless
(a) the individual is an individual described in clause 5.4(1)(a), (c) or (d);
(b) another taxpayer claims an amount for the year in respect of the individual under subsection 4.6(5), (6), (7), (11), (12) or (16) or subclause 4.10(2)(b)(ii);
(c) the individual is an inmate of a correctional facility or penitentiary on the last day of the year and has been an inmate of one or more such institutions for a total of at least six months during the year; or
(d) the individual is less than 19 years old at the end of the year and is not a parent, does not have a spouse or common-law partner and is not eligible for an education property tax credit under section 5.4 for the year.
Subject to subsections (2.1) and (5), an individual's personal tax credit for a taxation year is the amount determined by the following formula:
A − B
In this formula,
A
is the total of the following amounts that apply:
(a) $190.;
(b) $190., if the individual has claimed an amount for the year
(i) in respect of a spouse or common-law partner under subsection 4.6(5), or
(ii) in respect of a dependant under subsection 4.6(6);
(c) $60. for each dependant in respect of whom the individual has claimed an amount for the year under subsection 4.6(7);
(d) $25. for each qualified dependant, other than a dependant in relation to whom the individual has claimed an amount under clause (b) or (c), in relation to whom the individual is an eligible individual (as defined in section 122.6 of the federal Act) at any time in the year;
(e) $110. in each of the following cases:
(i) the individual is at least 65 years old at the end of the year,
(ii) the individual has claimed an amount for the year under subsection 4.6(11),
(iii) the individual has claimed an amount for the year under subsection 4.6(12) in relation to a dependant's impairment,
(iv) the individual has claimed an amount for the year under subsection 4.6(16) in relation to a physical or mental impairment of the individual's spouse or common-law partner,
(v) the individual has claimed an amount for the year under subsection 4.6(16) in relation to an age credit deductible under subsection 4.6(4) by the individual's spouse or common-law partner; and
B
is 1% of the individual's family income for the year.
Adjustments to personal credit
For a taxation year ending after 2008, the amounts in the description of A in the formula in subsection (2) are to be read as follows:
(a) in clauses (a) and (b), "$190." is to be read as "$195.";
(b) in clause (c), "$60." is to be read as "$62.";
(c) in clause (d), "$25." is to be read as "$26.";
(d) in clause (e), "$110." is to be read as "$113.".
In determining the amounts that may be included in the total for A in the formula under subsection (2),
(a) if two or more individuals could, but for subsection 4.10(3), claim an amount for the year under subsection 4.10(1) or (2) in respect of the same dependant, only the individual who claims an amount under subsection 4.10(1) or (2) in respect of the dependant may include an amount in respect of the dependant; and
(b) the amount determined for C in the formula in subsection 4.6(16) shall be applied to reduce the amounts included in A and B in that formula in the same order in which those amounts must be deducted in computing the tax payable under this Act by the individual's spouse or common-law partner.
Further limitation re certain dependants
No amount may be included in subsection (2) for a taxation year in respect of a dependant who
(a) has received, or whose cohabiting spouse or common-law partner has received, during the year a social assistance payment referred to in paragraph 56(1)(u) of the federal Act; or
(b) is an inmate referred to in clause (1)(c).
Alternate personal tax credit claimable by only one spouse or partner
If on the last day of a taxation year an individual is married to, or in a common-law partnership with, another individual who, though entitled to do so, claims neither an education property tax credit nor a personal tax credit for the year under subsection 5(1), the individual's personal tax credit for the year is the amount determined by the following formula:
B + C − D
In this formula,
B
is the amount that would be determined for the individual for A in the formula under subsection (2) if the description of A were read without reference to subclauses (b)(i) and (e)(iv) and (v);
C
is the amount that would be determined for the individual's spouse or common-law partner for A in the formula under subsection (2) if the description of A were read without reference to subclauses (b)(i) and (e)(iv) and (v); and
D
is 1% of the individual's family income for the year.
S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 23; S.M. 2002, c. 19, s. 24; S.M. 2003, c. 4, s. 42; S.M. 2006, c. 24, s. 37; S.M. 2008, c. 3, s. 24.
Repealed.
S.M. 2000, c. 39, s. 29; S.M. 2001, c. 41, s. 24; S.M. 2002, c. 19, s. 25.
5.9 and 5.10 Repealed.
S.M. 2000, c. 39, s. 29; S.M. 2002, c. 19, s. 25.
Primary Caregiver Tax Credit
The following definitions apply in this section.
"creditable period" of a primary caregiver in relation to a qualified home care client means the period that
(a) begins when the caregiver has provided care or supervision to the client for a period of 90 days beginning after the caregiver last became the client's primary caregiver; and
(b) ends when
(i) the caregiver ceases to provide care or supervision as the client's primary caregiver,
(ii) an interruption period in relation to the creditable period has lasted three years, or
(iii) the client permanently ceases to be a qualified home care client,
as determined by the responsible regional health authority. (« période ouvrant droit à un crédit »)
"interruption period" in relation to a primary caregiver's creditable period for a qualified home care client means, subject to the regulations, a period of more than 14 consecutive days during which
(a) the client is hospitalized or temporarily residing in a personal care home or other institution; or
(b) the client has temporarily ceased to be a qualified home care client, or the caregiver has not provided care to the client, as determined by the responsible regional health authority;
and includes a period prescribed by regulation as an interruption period. (« période d'interruption »)
"Manitoba Home Care Program" means the community-based program that provides support to individuals who require health services or assistance with daily living activities and is administered by regional heath authorities established or continued under The Regional Health Authorities Act. (« Programme de soins à domicile du Manitoba »)
"primary caregiver", in relation to a taxation year, means an individual who
(a) is resident in Manitoba at the end of the taxation year;
(b) without any remuneration other than the tax credit under this section, personally provides care or supervision to a qualified home care client;
(c) is designated in the client's official home care plan as the client's sole primary caregiver for the purpose of the tax credit under this section; and
(d) has acknowledged in writing to the responsible regional health authority, in a form acceptable to that authority, his or her role as the client's primary caregiver. (« soignant primaire »)
"qualified home care client" means an individual who
(a) ordinarily resides in a private home or apartment in Manitoba; and
(b) has most recently been assessed as requiring level 2, 3 or 4 care under the Manitoba Home Care Program, using assessment tools and standards acceptable to the responsible regional health authority. (« client des soins à domicile admissible »)
"responsible regional health authority", in relation to a qualified home care client, means the regional health authority that administers the Manitoba Home Care Program in the area in which the qualified home care client resides. (« office régional de la santé compétent »)
An individual's primary caregiver tax credit for a taxation year after 2008 is the total of all amounts each of which is the amount determined by the following formula in relation to a qualified home care client:
tax credit = $1,020. × A/365
In this formula, A is the total number of days in the taxation year each of which
(a) is within the individual's creditable period in relation to the client;
(b) does not fall within an interruption period in relation to the client;
(c) is not included in determining the caregiver's tax credit for the taxation year in respect of more than two other qualified home care clients; and
(d) is not included in determining another individual's primary caregiver tax credit for the taxation year in respect of the client.
The Lieutenant Governor in Council may make regulations
(a) defining any term used in this section but not defined in this Act;
(b) for the purpose of the definition "interruption period" in subsection (1),
(i) prescribing circumstances in which a period is not an interruption period, or in which days are not to be considered part of an interruption period, and
(ii) prescribing other periods as interruption periods;
(c) for the purpose of verifying the validity of a claim for a tax credit under this section,
(i) respecting the maintenance of books and records, and the provision of information or access to information, including personal health information, by primary caregivers, and
(ii) respecting the maintenance of books and records, and the provision of information or access to information, including personal health information, by regional health authorities about primary caregivers;
(d) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out effectively the intent and purpose of this section.
Repealed.
CORPORATION INCOME TAX
Subject to subsection (2), the tax payable under section 3 by a corporation for a taxation year is the total of all amounts, each of which is the amount determined by the following formula for a period in subsection (3) any part of which falls within the taxation year:
tax payable = T × R × Dp/Dy
In this formula,
T
is corporation's taxable income earned in Manitoba for the taxation year;
R
is the applicable tax rate for the period as set out in subsection (3);
Dp
is the number of days in the taxation year that fall within the period; and
Dy
is the number of days in the taxation year.
If the corporation claims a small business deduction for the taxation year under section 125 of the federal Act, there may be deducted from its tax otherwise payable under this Act an amount equal to the total of all amounts each of which is the small business deduction determined by the following formula for a period referred to in subsection (1):
D = L × R × (Dp/Dy) × (Tm/Tc)
In this formula,
D
is the small business deduction for the period;
L
is the least of
(i) the amount that would be determined for the taxation year under paragraph 125(1)(a) of the federal Act if the dollar amounts specified in clauses (i) and (ii) of the description of M in the definition "specified partnership income" in subsection 125(7) of that Act were the M(i) and M(ii) amounts specified for the period in subsection (3.1),
(ii) the amount determined under paragraph 125(1)(b) of the federal Act for the taxation year, and
(iii) the proportion of the business limit for the period specified in subsection (3.1) that
(A) the corporation's business limit for the year under section 125 of the federal Act,
is of
(B) the amount that would be its business limit under that section if it were not associated in the year with any other corporation;
R
is the small business deduction rate for the period as set out in subsection (3);
Dp
is the number of days in the taxation year that fall within the period;
Dy
is the number of days in the taxation year;
Tm
is the corporation's taxable income earned in Manitoba for the taxation year; and
Tc
is the corporation's taxable income earned in Canada for the taxation year.
Tax and small business deduction rates
For the purposes of subsections (1) and (2), the tax and small business deduction rates are as follows:
Period | Tax Rate | SBD Rate |
calendar year after 1988 and before 1994 | 17% | 7% |
calendar year 1994 | 17% | 7.5% |
Jan.1, 1995 to June 30, 1999 | 17% | 8% |
July 1, 1999 to Dec. 31, 1999 | 17% | 9% |
calendar year 2000 | 17% | 10% |
calendar year 2001 | 17% | 11% |
calendar year 2002 | 16.5% | 11.5% |
calendar year 2003 | 16% | 11% |
calendar year 2004 | 15.5% | 10.5% |
calendar year 2005 | 15% | 10% |
calendar year 2006 | 14.5% | 10% |
calendar year 2007 | 14% | 11% |
Jan. 1, 2008 to June 30, 2008 | 14% | 12% |
July 1, 2008 to Dec. 31, 2008 | 13% | 11% |
Jan. 1, 2009 to June 30, 2009 | 13% | 12% |
after June 30, 2009 | 12% | 11% |
Business limit and specified amounts
For the purpose of subsection (2), the business limits and the M(i) and M(ii) amounts are as follows:
Period |
Business limit and M(i) amount | M (ii) amount |
period before 2002 | $200,000. | $548. |
calendar year 2002 | $300.000. | $822. |
calendar year 2003 | $320,000. | $877. |
calendar year 2004 | $360,000. | $986. |
calendar year after 2004 | $400,000. | $1,096. |
Small business deduction for credit union
In applying subsection (2) to a credit union, if the lesser of
(a) the credit union's taxable income for the year; and
(b) the amount, if any by which 4/3 of its maximum cumulative reserve, as defined in subsection 137(7) of the federal Act, at the end of the year exceeds its preferred-rate amount at the end of the immediately preceding year;
exceeds L in the formula in subsection (2), the excess amount shall be added to L. For the purpose of clause (b), the credit union's preferred-rate amount is the preferred-rate amount that would be determined under subsection 137(4.3) of the federal Act if the amount deductible under section 125 of that Act were the amount deductible under subsection (2).
Tax rate for guarantee corporation
Despite subsection (1), the rate of tax to be applied to the taxable income of a guarantee corporation, as defined in The Credit Unions and Caisses Populaires Act, for a taxation year beginning after 2002 is 5%. For greater certainty, no part of the income of such a corporation is eligible for a deduction under subsection (2).
Repealed, S.M. 2005, c. 40, s. 31.
Meaning of "taxable income earned in the year in Manitoba"
For the purposes of this section, section 8 and subsection 9(2), "taxable income earned in the year in Manitoba" of a corporation means its taxable income earned in the year in Manitoba as determined in accordance with federal regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act.
S.M. 1988-89, c. 19, s. 20; S.M. 1994, c. 23, s. 14; S.M. 1996, c. 66, s. 9; S.M. 1999, c. 3, s. 6; S.M. 2000, c. 39, s. 30; S.M. 2001, c. 41, s. 25; S.M. 2002, c. 19, s. 26; S.M. 2003, c. 4, s. 43; S.M. 2005, c. 40, s. 31; S.M. 2006, c. 24, s. 38; S.M. 2007, c. 6, s. 37; S.M. 2008, c. 3, s. 26.
Repealed.
S.M. 1988-89, c. 19, s. 21; S.M. 1989-90, c. 15, s. 17; S.M. 1990-91, c. 13, s. 6; S.M. 1991-92, c. 31, s. 17; S.M. 1992, c. 52, s. 27; S.M. 2000, c. 39, s. 31.
MANUFACTURING INVESTMENT TAX CREDIT
Manufacturing investment tax credit
There may be deducted from the tax otherwise payable under this Act by a corporation for a taxation year an amount not exceeding the lesser of
(a) its investment tax credit at the end of the year; and
(b) the tax otherwise payable by it under this Act for the year.
A corporation is deemed to have paid on its balance due day for a taxation year ending after March 8, 2005, on account of its tax payable for that taxation year, an amount equal to the lesser of
(a) the amount, if any, by which its investment tax credit at the end of the taxation year, determined without reference to any expenditure incurred after the end of the year, exceeds the tax that would otherwise be payable by it for the year if no amount were deducted in respect of a loss realized, property acquired or expenditure incurred after the end of the year; and
(b) subject to subsection (1.2), 50% of the total of the following amounts:
(i) the amount determined for the year under clause (a) of the definition "investment tax credit" in subsection (2),
(ii) the amount determined for the year under subsection (3),
(iii) the amount determined for the year under subsection (4).
For taxation years ending before December 31, 2008, the reference in clause (1.1)(b) to "50%" is to be read as follows:
(a) for a taxation year ending after March 8, 2005, and before March 7, 2006, it is to be read as "20%";
(b) for a taxation year ending after March 6, 2006, and before January 1, 2008, it is to be read as "35%";
(c) for a taxation year ending after 2007, it is to be read as "35%" in respect of property acquired before 2008, and as "70%" in respect of property acquired after 2007.
In this section,
"investment tax credit" of a corporation at the end of a taxation year means the amount, if any, by which the aggregate of
(a) an amount equal to 10% of the aggregate of all amounts each of which is the capital cost to the corporation of a qualified property acquired by it in the year, determined with reference to paragraphs 127(11.1)(b) and (d) of the federal Act, but without treating the investment tax credit as government assistance under those provisions,
(b) an amount equal to 10% of the aggregate of all amounts each of which is the capital cost to the corporation of a qualified property acquired by it in any of
(i) the seven immediately preceding taxation years ending before 2004,
(ii) the 10 immediately preceding taxation years ending after 2003, or
(iii) the three immediately following taxation years,
determined with reference to paragraphs 127(11.1)(b) and (d) of the federal Act, but without treating the investment tax credit as government assistance under those provisions,
(c) all amounts each of which is an amount required by subsection (3) or (4) to be added in computing its investment tax credit at the end of the year, and
(d) all amounts each of which is an amount required by subsection (3) or (4) to be added in computing its investment tax credit at the end of any of the taxation years referred to in clause (b),
exceeds the total of
(e) the aggregate of all amounts each of which is that portion of the amount deducted under subsection (1) from the tax otherwise payable under this Act by the corporation for a preceding taxation year that is in respect of property acquired in the year or in any of
(i) the seven immediately preceding taxation years ending before 2004,
(ii) the 10 immediately preceding taxation years ending after 2003, or
(iii) the two immediately following taxation years; and
(f) the total of all amounts each of which is an amount deemed by subsection (1.1) to have been paid on account of tax payable by the corporation for any of the 10 immediately preceding taxation years; (« crédit d'impôt à l'investissement »)
"manufacturing or processing" has the meaning assigned by subsection 125.1(3) of the federal Act, and includes qualified activities as defined in the federal regulations made for the purpose of the definition "Canadian manufacturing and processing profits" in that subsection; (« fabrication ou transformation »)
"qualified property" of a corporation means property that was acquired by the corporation before 2012, and
(a) is qualified property, as defined in subsection 127(9) of the federal Act (having regard to subsection 127(11) of that Act), that was acquired by the corporation after March 11, 1992, and is
(i) to be used by the corporation in Manitoba primarily for manufacturing or processing goods for sale or lease, or
(ii) to be leased by the corporation — in the ordinary course of its principal business in Manitoba of manufacturing property for sale or lease — to a lessee who is not exempt from tax under section 149 of the federal Act and who can reasonably be expected to use the property in Manitoba primarily for manufacturing or processing goods for sale or lease, or
(b) is Class 43.1 or 43.2 property under the federal regulations that was acquired by the corporation after April 22, 2003, was not used — or acquired for use or lease — for any purpose whatever before it was acquired by the corporation, and is
(i) to be used by the corporation in Manitoba for producing energy — or for conserving or reducing the need to acquire energy — primarily for use in its business in Manitoba of manufacturing or processing goods for sale or lease, or
(ii) to be leased by the corporation — in the ordinary course of its principal business in Manitoba of manufacturing goods for sale or lease — to a lessee who is not exempt from tax under section 149 of the federal Act and who can reasonably be expected to use the property in Manitoba for producing energy — or for conserving or reducing the need to acquire energy — primarily for use in its business in Manitoba of manufacturing or processing goods for sale or lease. (« biens admissibles »)
In applying the definition "investment tax credit" to a taxation year ending before April 23, 2003, no amount shall be included in respect of the capital cost of Class 43.1 or 43.2 property under the federal regulations that was acquired on or after that day.
Qualified property acquired after March 8, 2005 includes used property
In determining whether property acquired after March 8, 2005, is qualified property,
(a) the definition "qualified property" in subsection 127(9) of the federal Act shall be read without reference to "that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer" in the part after paragraph (b) and before paragraph (c); and
(b) the part of clause (b) before subclause (i) of the definition "qualified property" in subsection (2) of this Act shall be read without reference to "was not used — or acquired for use or lease — for any purpose whatever before it was acquired by the corporation,".
Repealed, S.M. 2006, c. 24, s. 39.
Property acquired when available for use
In determining a taxpayer's investment tax credit at any time after March 8, 2005,
(a) a property acquired after that date is deemed not to have been acquired by the taxpayer; and
(b) an expenditure incurred after that date to acquire property is deemed not to have been incurred by the taxpayer;
before the property is considered to have become available for use by the taxpayer, as determined under subsection 13(27) of the federal Act without reference to paragraph (c) or under subsection 13(28) of that Act without reference to paragraph (d).
In determining a taxpayer's investment tax credit at any time after March 8, 2005,
(a) no amount shall be included in respect of property acquired after that date unless and until the taxpayer has filed with the minister, within one year after the filing-due date for the taxation year in which the property was acquired and in a form and manner authorized by the minister, the information about the property stipulated by the authorized form; and
(b) no amount shall be included in respect of property acquired after that date if an amount in respect of the property is included in computing a tax credit claimed under any other section of this Act.
Where, in a particular taxation year of a corporation that is a beneficiary under a trust, an amount would, if the trust were a corporation, be determined in respect of the trust under clause (a) or (c) of the definition of "investment tax credit" in subsection (2) for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be the corporation's share thereof is the amount required to be added in computing the investment tax credit of the corporation at the end of that particular taxation year.
Where, in a particular taxation year of a corporation that is a member of a partnership, an amount would, if the partnership were a corporation, be determined in respect of the partnership under clause (a) or (c) of the definition of "investment tax credit" in subsection (2) for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share thereof is the amount required to be added in computing the investment tax credit of the corporation at the end of that particular taxation year.
For the purpose of subsection (4), a corporation that is a member of a partnership that is a member of another partnership is deemed to be a member of that other partnership.
Where after March 11, 1992, there has been an amalgamation within the meaning of subsection 87(1) of the federal Act and one or more of the predecessor corporations had an investment tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes only of determining the investment tax credit of the new corporation for any taxation year preceding any taxation year of the new corporation, the new corporation shall be deemed to be the same corporation as, and a continuation of, each such predecessor corporation.
Where after March 11, 1992 there has been a winding-up to which subsection 88(1) of the federal Act applies and the subsidiary had an investment tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes only of determining the investment tax credit of the parent for any taxation year preceding any taxation year of the parent, the parent shall be deemed to be the same corporation as, and a continuation of, the subsidiary.
S.M. 1992, c. 52, s. 28; S.M. 1993, c. 46, s. 39; S.M. 1994, c. 23, s. 15; S.M. 1995, c. 30, s. 9; S.M. 1996, c. 66, s. 10; S.M. 1997, c. 49, s. 17; S.M. 1999, c. 3, s. 7; S.M. 2000, c. 39, s. 32; S.M. 2003, c. 4, s. 44; S.M. 2004, c. 43, s. 49; S.M. 2005, c. 40, s. 33; S.M. 2006, c. 24, s. 39; S.M. 2007, c. 6, s. 38; S.M. 2008, c. 3, s. 27.
RESEARCH AND DEVELOPMENT TAX CREDIT
In this section,
"eligible expenditure" means an expenditure that
(a) was made after March 11, 1992 by a corporation with a permanent establishment in Manitoba in respect of scientific research and experimental development carried out in Manitoba, and
(b) would, if the definition "qualified expenditure" in subsection 127(9) of the federal Act were read without reference to paragraph (d) thereof, be a qualified expenditure for the purposes of subsections 127(9) and (11.1) of that Act,
and, for taxation years that end after December 2, 1992, includes the portion of the corporation's prescribed proxy amount (as determined under the federal regulations for the purposes of the definition "qualified expenditure" in subsection 127(9) of the federal Act) that can reasonably be considered to relate to scientific research and experimental development carried out in Manitoba; (« dépense admissible »)
"research and development tax credit" of a corporation at the end of a taxation year means the amount, if any, by which the aggregate of
(a) an amount equal to 15% of the aggregate of all amounts each of which is an eligible expenditure made by it in the year and before March 9, 2005, computed without reference to subsection 13(7.1) of the federal Act,
(a.1) an amount equal to 20% of the aggregate of all amounts each of which is an eligible expenditure made by it in the year and after March 8, 2005, computed without reference to subsection 13(7.1) of the federal Act,
(b) an amount equal to 15% of the aggregate of all amounts each of which is an eligible expenditure made by it before March 9, 2005 in any of
(i) the seven immediately preceding taxation years ending before 2004, or
(ii) the 10 immediately preceding taxation years ending after 2003,
(iii) repealed, S.M. 2005, c. 40. s. 35,
computed without reference to subsection 13(7.1) of the federal Act,
(b.1) an amount equal to 20% of the aggregate of all amounts each of which is an eligible expenditure made by it after March 8, 2005, in any of
(i) the 10 immediately preceding taxation years, or
(ii) the three immediately following taxation years,
computed without reference to subsection 13(7.1) of the federal Act,
(c) all amounts each of which is an amount required by subsection (3) or (4) to be included in computing its research and development tax credit at the end of the year, and
(d) all amounts each of which is an amount required by subsection (3) or (4) to be included in computing its research and development tax credit at the end of any of the taxation years referred to in clause (b) or (b.1),
exceeds
(e) the aggregate of all amounts each of which is that portion of the amount deducted under subsection (2) from the tax otherwise payable under this Act by the corporation for a preceding taxation year that is in respect of an expenditure made in the year or in any of
(i) the seven immediately preceding taxation years ending before 2004,
(ii) the 10 immediately preceding taxation years ending after 2003, or
(iii) the two immediately following taxation years. (« crédit d'impôt pour la recherche et le développement »)
A corporation may deduct from the tax otherwise payable under this Act for a taxation year an amount not exceeding the lesser of
(a) its research and development tax credit at the end of the year; and
(b) its tax otherwise payable by it under this Act for the year.
In applying the definition "research and development tax credit" in subsection (1) to a taxation year beginning before March 9, 2005, clause (b) is to be read without reference to the amendments made by subclause 35(1)(c)(ii) of The Budget Implementation and Tax Statutes Amendment Act, 2005, S.M. 2005, c. 40.
In determining a taxpayer's research and development tax credit at any time after March 8, 2005,
(a) no amount shall be included in respect of an eligible expenditure made after that date unless and until the taxpayer has filed with the minister, within one year after the filing-due date for the taxation year in which the expenditure was made and in a form and manner authorized by the minister, the information about the expenditure stipulated by the authorized form; and
(b) no amount shall be included in respect of an expenditure made after that date if an amount in respect of the expenditure is included in computing a tax credit claimed under any other section of this Act.
Where, in a particular taxation year of a corporation that is a beneficiary under a trust, an amount would, if the trust were a corporation, be included, by virtue of clause (a) or (c) of the definition of "research and development tax credit" as set out in subsection (1), in computing the research and development tax credit of the trust for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be the corporation's share thereof shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.
Where, in a particular taxation year of a corporation which is a member of a partnership, an amount would, if the partnership were a corporation, be included, by virtue of clause (a) or (c) of the definition of "research and development tax credit" as set out in subsection (1), in computing the research and development tax credit of the partnership for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share thereof shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.
For the purpose of subsection (4), a corporation that is a member of a partnership that is a member of another partnership is deemed to be a member of that other partnership.
Where, after March 11, 1992, two or more corporations amalgamate within the meaning of subsection 87(1) of the federal Act and one or more of the corporations had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes of determining the research and development tax credit of the new corporation for any taxation year preceding any taxation year of the new corporation, the new corporation shall be deemed to be the same corporation as and a continuation of each such predecessor corporation.
Where, after March 11, 1992, a subsidiary is wound up within the meaning of subsection 88(1) of the federal Act and the subsidiary had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes of determining the research and development tax credit of the parent for any taxation year preceding any taxation year of the parent, the parent shall be deemed to be the same corporation as and a continuation of the subsidiary.
A corporation may renounce, on or before the filing-due date for a taxation year, its entitlement to all or any part of the portion of its research and development tax credit that can reasonably be attributed to an eligible expenditure incurred in the year, and, where it does so, it is deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the portion or part of the portion so renounced.
Notwithstanding the definition "eligible expenditure" in subsection (1), for the purposes of determining the research and development tax credit of a corporation, the amount of a contract payment paid or payable by a person to the corporation for an eligible expenditure made by the corporation shall be deemed to be nil if the person is not entitled to treat the contract payment as an eligible expenditure under this section, or if the person is a corporation that has renounced the research and development tax credit in respect of the contract payment under subsection (7).
S.M. 1992, c. 52, s. 28; S.M. 1994, c. 23, s. 16; S.M. 1995, c. 30, s. 10; S.M. 1997, c. 49, s. 18; S.M. 1998, c. 30, s. 28; S.M. 2000, c. 39, s. 33; S.M. 2002, c. 19, s. 27; S.M. 2004, c. 43, s. 50; S.M. 2005, c. 40, s. 35; S.M. 2006, c. 24, s. 40.
Notwithstanding sections 7.2 and 7.3, no investment tax credit within the meaning of section 7.2 or research and development tax credit within the meaning of section 7.3 of a corporation is eligible to be deducted for a taxation year of the corporation ending before March 12, 1992.
FILM AND VIDEO PRODUCTION TAX CREDIT
Definitions, sections 7.5 to 7.12
In this section and sections 7.6 to 7.12,
"eligible employee", in relation to a taxation year of a corporation for which the corporation is claiming a tax credit, means an employee who was resident in Manitoba on December 31 of the taxation year; (« employé admissible »)
"eligible film" means a film or video that is registered as an eligible film under section 7.9; (« film admissible »)
"eligible individual", in relation to a taxation year of a corporation for which the corporation is claiming a tax credit, means an individual (other than a trust or estate) who was resident in Manitoba on December 31 of the taxation year; (« particulier admissible »)
"eligible non-resident individual", in relation to a taxation year of a corporation for which the corporation is claiming a tax credit, means an individual (other than a trust or estate) who
(a) was not resident in Manitoba on December 31 of the taxation year, and
(b) in that taxation year or the immediately preceding taxation year provided technical services in Manitoba for the production of an eligible film as a member of a film production technical crew of which at least one other member (referred to in this subsection as a "trainee") is an eligible individual who, during the production of the film, received eligible training or provided technical services for which the corporation has received or is eligible to receive a tax credit under section 10.1 (co-op education and apprenticeship tax credit); (« non-résident admissible »)
"eligible salaries" of a corporation for a taxation year in respect of an eligible film means the total of the following amounts to the extent that they are reasonable in the circumstances and included in the cost or, in the case of depreciable property, the capital cost to the corporation of the property:
(a) the salary or wages of eligible individuals directly attributable to the production that are incurred after 1996 and in the year, or the preceding taxation year, by the corporation for the stages of production of the property, from the production commencement time to the end of the post-production stage, and paid by the corporation in the year or within 60 days after the end of the year, other than amounts incurred in that preceding year that were paid within 60 days after the end of that preceding year,
(b) that portion of the remuneration, other than salary or wages and other than remuneration that relates to services rendered in the preceding taxation year and that was paid within 60 days after the end of that preceding year, that is directly attributable to the production of the property, that relates to services rendered after 1996 and in the year or the preceding taxation year to the corporation for the stages of production, from the production commencement time to the end of the post-production stage, and that is paid by the corporation in the year or within 60 days after the end of the year to
(i) an eligible individual who is not an employee of the corporation, to the extent that the amount paid
(A) is attributable to services personally rendered by the individual for the production of the property, or
(B) is attributable to and does not exceed the salary or wages of the individual's eligible employees for personally rendering services for the production of the property,
(ii) another corporation, to the extent that the amount paid is attributable to and does not exceed the salary or wages of the other corporation's eligible employees for personally rendering services for the production of the property,
(iii) another corporation, all of the issued and outstanding shares of the capital stock of which, except directors' qualifying shares, belong to an eligible individual and the activities of which consist principally of the provision of the individual's services, to the extent that the amount paid is attributable to services rendered personally by the individual for the production of the property, or
(iv) a partnership that is carrying on a business in Canada, to the extent that the amount paid
(A) is attributable to services personally rendered by an eligible individual who is a member of the partnership for the production of the property, or
(B) is attributable to and does not exceed the salary or wages of the partnership's eligible employees for personally rendering services for the production of the property,
(c) where
(i) the corporation is a subsidiary wholly-owned corporation of another corporation, in this clause referred to as the "parent", and
(ii) the corporation and the parent have agreed that this clause apply in respect of the production,
the reimbursement made by the corporation in the year, or within 60 days after the end of the year, of an expenditure that was incurred by the parent in a particular taxation year of the parent in respect of that production and that would be included in the eligible salaries of the corporation in respect of the property for the particular taxation year under clause (a) or (b) if
(iii) the corporation had such a particular taxation year, and
(iv) the expenditures were incurred by the corporation for the same purpose as they were by the parent and were paid at the same time and to the same person or partnership as it was by the parent,
(d) the lesser of
(i) the total increase in the amounts that would be included under clause (a) or (b) if the amounts paid by the corporation for services provided in Manitoba by eligible non-resident individuals were paid for services provided by eligible individuals, but no amount were included in respect of the benefits or allowances that are included (or would be included if they were employees resident in Canada) in the income of the eligible non-resident individuals under section 6 of the federal Act, and
(ii) the following percentage of the total of the amounts determined under clauses (a) to (c) for the taxation year:
(A) 30%, if at least two individuals participated, as trainees, in the film production technical crew in which the eligible non-resident individual provided services, or
(B) 10%, if only one individual participated, as a trainee, in the film production technical crew in which the eligible non-resident individual provided services; (« traitements admissibles »)
"government assistance" means the amount of assistance which the corporation receives or is entitled to receive from a government, municipality or other public authority whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance, other than
(a) any film and video production tax credit under this Act or under the federal Act,
(b) government equity investment provided by The Canada Television and Cable Production Fund, Telefilm Canada or Manitoba Film and Sound Recording Development Corporation that is recoupable or repaid,
(c) any amount received or receivable under The Canada Television and Cable Production Fund Licence Fee Program, and
(d) the amount of a credit under section 10.1 (co-op education and apprenticeship tax credit); (« aide-gouvernementale »)
"minister" means the Minister of Finance for Manitoba or a person designated by him or her to perform certain duties assigned to him or her under this Act or the regulations; (« ministre »)
"tax credit" means the tax credit established in section 7.6. (« crédit d'impôt »)
Repealed, S.M. 2002, c. 19, s. 28.
Further requirements re eligible salaries
For the purpose of the definition "eligible salaries" in subsection (1),
(a) remuneration does not include remuneration determined by reference to profits or revenues;
(b) salary or wages do not include an amount determined by reference to profits or revenues;
(c) where the value of remuneration, salary or wages may include an amount determined by reference to profits or revenues, the minister may deem a value for that portion of the eligible salaries;
(d) services referred to in clause (b) of the definition "eligible salaries" in subsection (1) that relate to the post-production stage of the production include only the services that are rendered at that stage by a person who performs the duties of animation cameraman, assistant colourist, assistant editor, assistant mixer, assistant sound-effects technician, boom operator, colourist, computer graphics designer, developing technician, director of post-production, dubbing technician, encoding technician, inspection technician — clean-up, mixer, music supervisor, optical effects technician, picture editor, printing technician, projectionist, recording technician, senior editor, sound editor, sound-effects technician, special effects editor, subtitle technician, timer, videographer or videotaping technician, or other similar duties;
(e) an expense may be included in eligible salaries only if it is incurred and paid before March 1, 2011; and
(f) the references in clauses (a) and (b) of the definition to "production commencement time" shall be read as "final script stage" when applying the definition to
(i) an eligible film the principal photography for which commenced before March 9, 2005, or
(ii) a taxation year that ended before March 9, 2005.
For the purpose of the definition "eligible non-resident individual" in subsection (1), an individual is considered to have received eligible training if the training is designed to improve his or her technical film production skills and is authorized or approved by
(a) Film Training Manitoba;
(b) the Directors Guild of Canada;
(c) the International Alliance of Theatrical Stage Employees, Moving Picture Technicians, Artists and Allied Crafts of the United States, Its Territories and Canada;
(d) the Alliance of Canadian Cinema, Television and Radio Artists; or
(e) any other person or organization prescribed by regulation.
7.5(4) and (5)Repealed, S.M. 2002, c. 19, s. 28.
S.M. 1997, c. 49, s. 19; S.M. 1998, c. 30, s. 29; S.M. 2000, c. 39, s. 34; S.M. 2001, c. 41, s. 26; S.M. 2002, c. 19, s. 28; S.M. 2003, c. 4, s. 45; S.M. 2004, c. 43, s. 51; S.M. 2005, c. 40, s. 36; S.M. 2007, c. 6, s. 39; S.M. 2008, c. 3, s. 28.
Film and video production tax credit
Subject to subsections (2) and (4), a corporation that has produced an eligible film in Manitoba and meets the criteria set out in section 7.7 may deduct from the tax otherwise payable by it under this Act for a taxation year the amount certified by the minister as the amount determined by the following formula:
tax credit = .45A + .05(B + C + D + E)
In this formula,
A
is the amount, if any, by which
(a) the corporation's eligible salaries for the film for the year,
exceeds
(b) the amount of any government assistance received or to be received by the corporation in connection with those salaries;
B
is nil, unless
(a) the principal photography for the film commenced after April 19, 2004, and after the commencement of principal photography for two other eligible films for which, in each case, most of the principal photography was carried out after April 22, 2003,
(b) some of the principal photography for each of the three films referred to in clause (a) took place within the same two-year period, and
(c) the principal owner of each of the three films referred to in clause (a) is the same person or group of persons,
in which case B is the amount determined for A;
C
is nil, unless
(a) the principal photography for the film commenced after 2007, and after the commencement of principal photography for two other eligible films,
(b) some of the principal photography for each of the three films referred to in clause (a) took place within the same two-year period, and
(c) the principal owner of each of the three films referred to in clause (a) is the same person or group of persons,
in which case C is the amount determined for A;
D
is nil, unless
(a) the corporation has, at any time during principal photography for the film, a permanent establishment in Manitoba at least 35 kilometres from Winnipeg,
(b) the principal photography for the film commenced after April 19, 2004, and
(c) the principal photography for the film took place in Manitoba at least 35 kilometres from Winnipeg for at least 1/2 of the days that principal photography took place in Manitoba,
in which case D is the amount determined for A;
E
is nil, unless
(a) the principal photography for the film commenced after 2007, and
(b) a person who is resident in Manitoba in the year in which principal photography ends, or in the immediately preceding year, receives credit as a producer, co-producer or executive producer of that film,
in which case E is the amount determined for A.
In applying subsection (1) to an eligible film the principal photography for which began before March 9, 2005, the reference in the formula to ".45A" is to be read as ".35A".
Subject to subsection (1.2), a film's principal owner for the purpose of subsection (1) is a person or group of persons
(a) who owned, throughout the period of principal photography of the film, at least 50% of the voting shares of the corporation that claimed a tax credit for the film;
(b) whom the minister, upon application in accordance with the regulations, recognizes as the film's principal owner because of the direct or indirect equity interest in the film held by the person or group throughout the period of principal photography; or
(c) whom the minister, upon application in accordance with the regulations, recognizes as the film's principal owner because of their contribution to the development, creative and financial control, and exploitation of the film, having regard to their role in
(i) the acquisition or development of the film's story,
(ii) commissioning the writing of the film's screenplay,
(iii) selecting, hiring or firing key artists and creative personnel,
(iv) preparing, revising and approving the film's budget,
(v) binding the production company to talent and crew contracts,
(vi) arranging production financing,
(vii) making final creative decisions,
(viii) making or authorizing production expenditures, and
(ix) banking arrangements for the production.
A person's application under clause (c) must contain sufficient information to enable the minister to apply the criteria in subclauses (c)(i) to (ix).
If a film would otherwise have more than one principal owner, it is deemed to have no principal owner other than
(a) the one principal owner identified in an agreement filed with the minister and signed by each person who
(i) is or would otherwise be a principal owner, or
(ii) is a member of a group that is or would otherwise be a principal owner; or
(b) if no such agreement is filed, the person or group of persons recognized as the film's principal owner for the purpose of a tax credit previously allowed under subsection (1).
Frequent filming bonus involving series
In determining the amounts for B and C in the formula in subsection (1) in respect of an eligible film,
(a) a cycle of a commercially exploitable series may be treated as an eligible film, regardless of the combined running length of its episodes;
(b) episodes with a combined running length of two hours within the same cycle of a commercially exploitable series may be treated as a prior film;
(c) the remaining episodes in a cycle that are not treated as a prior film under clause (b) may be treated as a separate eligible film if, as a separate eligible film, the amount determined for it under B in that formula would not be nil; and
(d) the amount determined for A for the separate eligible film under clause (c) shall be that proportion of the amount determined for A for the cycle that the running length of the separate film is of the running length of the whole cycle.
For the purpose of this subsection, if the series is a television series, the running length of an episode is deemed to be its broadcast length and the running length of a cycle is the total running length of the episodes in that cycle.
If more than one corporation claims an amount under subsection (1) in respect of the same eligible salaries, the tax credit of each of them in respect of those salaries is nil, unless they file with the minister an agreement signed by all of them that allocates among them the amounts that may be claimed in respect of those salaries.
For the purpose of subsection (2), to the extent that eligible salaries of a corporation in respect of an eligible film can reasonably be attributed to amounts paid as eligible salaries by another corporation, they must be treated as the same eligible salaries.
Nil tax credit for registered production that does not meet eligible film requirements
The tax credit for a production that was registered as an eligible film before completion of production is nil if, after reviewing the corporation's application for the tax credit, the minister is satisfied that the production did not meet all the requirements for registration as an eligible film.
S.M. 1997, c. 49, s. 19; S.M. 1999, c. 3, s. 8; S.M. 2001, c. 41, s. 27; S.M. 2002, c. 19, s. 29; S.M. 2003, c. 4, s. 46; S.M. 2004, c. 43, s. 52; S.M. 2005, c. 40, s. 37; S.M. 2006, c. 24, s. 41; S.M. 2007, c. 6, s. 40; S.M. 2008, c. 3, s. 29.
Eligibility requirements for corporations
To be eligible to apply for a tax credit, a corporation must meet the following criteria:
(a) the corporation must be incorporated under the laws of Canada or of a province of Canada and be a taxable Canadian corporation primarily carrying on a business that is a film or video production business;
(a.1) the corporation must have a permanent establishment in Manitoba;
(b) at least 25% of salaries and wages paid by the corporation in the taxation year must be paid
(i) to eligible employees and employees who are eligible non-resident individuals in relation to the eligible film for which the tax credit is claimed, and
(ii) except in the case of a documentary, for work performed in Manitoba on an eligible film;
(c) repealed, S.M. 2001, c. 41, s. 28;
(d) the corporation must be producing an eligible film as determined under section 7.9.
S.M. 1997, c. 49, s. 19; S.M. 1998, c. 30, s. 30; S.M. 2001, c. 41, s. 28; S.M. 2004, c. 43, s. 53; S.M. 2008, c. 3, s. 30.
A corporation shall apply for a tax credit in any manner that the minister may require, and shall provide the following information:
(a) its financial statements for the preceding taxation year, if requested by the minister;
(b) repealed, S.M. 2002, c. 19, s. 30;
(c) a list of eligible employees, including the employees' names, social insurance numbers, eligible salaries, occupations and addresses;
(c.1) a list of the eligible non-resident individuals whose eligible salaries are included in computing the tax credit, including their names, social insurance numbers if applicable, eligible salaries, occupations and addresses;
(d) a statement in a form satisfactory to the minister and signed by an authorized officer of the corporation that the information contained in the application is true and correct;
(e) any other information that the minister may require.
S.M. 1997, c. 49, s. 19; S.M. 2002, c. 19, s. 30; S.M. 2008, c. 3, s. 31.
The minister may register a production as an eligible film if
(a) an application in accordance with section 7.8 is received within 30 months after the end of the taxation year in which principal photography commences;
(b) the proposal is intended for a television, cinema, video tape, digital, cd-rom, multimedia or nontheatrical production and the subject of the proposal is drama, variety, animation, children's programming, music programming, an informational series or a documentary; and
(c) the proposal meets any other criteria that may be prescribed in the regulations.
The following are not eligible films:
(a) news, current events or public affairs programming, or programs that include weather or market reports;
(b) talk shows;
(c) productions in respect of games, questionnaires or contests (other than a production directed primarily at minors);
(d) sports events or activities;
(e) gala presentations or awards shows;
(f) productions that solicit funds;
(g) reality television;
(h) pornography;
(i) advertising;
(j) productions produced primarily for industrial, corporate or institutional purposes;
(k) productions, other than documentaries, all or substantially all of which consist of stock footage;
(l) productions for which public financial support would, in the opinion of the minister, be contrary to public policy;
(m) an incomplete production.
S.M. 1997, c. 49, s. 19; S.M. 2002, c. 19, s. 31.
A corporation shall apply in any manner that the minister may require for registration of an eligible film, and shall provide the following information:
(a) the estimated eligible salaries and production costs;
(b) the estimated value of the tax credit;
(c) a financing plan;
(d) a script;
(e) any other information the minister may require.
S.M. 1997, c. 49, s. 19; S.M. 2002, c. 19, s. 32.
The amount by which the tax credit exceeds the corporation's tax payable for the taxation year calculated without reference to this section may be applied by the treasurer to pay
(a) any tax, interest or penalty owing by the corporation for that or any prior taxation year pursuant to this Act, the corporation income tax of any agreeing province or the federal Act;
(b) any contribution, interest or penalty owing by the corporation for that or any prior taxation year as a result of payments required from the corporation pursuant to the Canada Pension Plan; and
(c) any premium, interest or penalty owing by the corporation for that or any prior taxation year pursuant to the Employment Insurance Act (Canada);
and any part of the amount not so applied shall be paid to the corporation.
Recovery of overpayment of tax credit
If the minister determines that all or any part of an amount paid or applied under subsection (1) did not qualify as a tax credit of the corporation to whom or for whose benefit the amount was paid or applied, that amount or part of the amount is recoverable from the corporation and is a debt due by the corporation to Her Majesty in right of Manitoba.
S.M. 1997, c. 49, s. 19; S.M. 2002, c. 19, s. 33.
The Lieutenant Governor in Council may make regulations
(a) defining any term used in sections 7.5 to 7.11 but not defined in this Act;
(a.1) repealed, S.M. 2008, c. 3, s. 32;
(b) respecting any further criteria of eligible films;
(c) respecting any further information that must be provided by a corporation applying for a tax credit;
(d) respecting the information and records that must be supplied or maintained by a corporation for the purposes of sections 7.5 to 7.11;
(e) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out effectively the intent and purpose of sections 7.5 to 7.11.
S.M. 1997, c. 49, s. 19; S.M. 1998, c. 30, s. 31; S.M. 2003, c. 4, s. 47; S.M. 2008, c. 3, s. 32.
Foreign tax credit for corporations
Where the income for a taxation year of a corporation that maintained a permanent establishment in Manitoba at any time in the taxation year includes income described in sub-paragraph 126(1)(b)(i) of the federal Act from sources in a country other than Canada (in this section referred to as "foreign investment income") and where the corporation has claimed a deduction under subsection 126(1) of the federal Act in respect of the foreign investment income, the corporation may deduct from the tax for the year otherwise payable under this Act an amount equal to the lesser of the following amounts:
(a) the amount determined by the following formula:
P × A × D / E
(b) the amount determined by the following formula:
(B − C) × D / E
In these formulas,
A
is the foreign investment income of the corporation for the year from sources in the other country,
B
is the part of any non-business-income tax (as defined in subsection 126(7) of the federal Act) paid by the corporation for the year to the government of a country other than Canada (other than any tax that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation),
C
is the amount deductible by the corporation under subsection 126(1) of the federal Act,
D
is the taxable income earned in the year in Manitoba of the corporation,
E
is the total of all amounts each of which is the taxable income earned in the year in a province, as determined in accordance with the federal regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act,
P
is the tax rate under subsection 7(3) for the period in which the taxation year falls or, if it falls in more than one period in that subsection, the total of the tax rates each of which is that proportion of the tax rate for a period in which a part of the taxation year falls that
(i) the number of days in the taxation year that fall in that period,
bears to
(ii) the number of days in the taxation year.
Separate credit for each foreign country
Where the income of a corporation for a taxation year includes income from sources in more than one country other than Canada, subsection (1) shall be read as providing for separate deductions in respect of each of the countries other than Canada.
For the purpose of subsection (1), the government of a country other than Canada includes the government of a state, province or other political subdivision of that country.
S.M. 2000, c. 39, s. 35; S.M. 2004, c. 43, s. 54; S.M. 2005, c. 40, s. 38; S.M. 2006, c. 24, s. 42.
Where an amount is to be refunded to a corporation for a taxation year under section 131 of the federal Act, the treasurer shall, subject to subsection (2), at such time and in such manner as is provided in that section, refund to the corporation an amount (in this section referred to as its "capital gains refund" for the year) equal to the lesser of
(a) the corporation's Manitoba refundable capital gains tax on hand at the end of the year; and
(b) the amount determined by the following formula:
0.5 × T × (D + R) × I1/I2
In this formula,
T
is the applicable tax rate for the taxation year,
D
is the total of all dividends paid by the corporation in the period commencing 60 days after the beginning of the taxation year and ending 60 days after the end of the taxation year that are capital gains dividends for that year for the purposes of section 131 of the federal Act,
R
is the amount of the corporation's capital gains redemptions for the year as determined for the purposes of section 131 of the federal Act,
I1
is the corporation's taxable income earned in the year in Manitoba or, if the corporation has no taxable income for the year, the amount that would be its taxable income earned in the year in Manitoba if its taxable income for the year were $1,000.,
I2
is the corporation's taxable income for the year or, if it has no taxable income for the year, $1,000.
Manitoba refundable capital gains tax on hand
For the purpose of subsection (1), a corporation's Manitoba refundable capital gains tax on hand at the end of a taxation year is the amount determined by the following formula:
T − R
In this formula,
T
is the total of all amounts each of which is the least of the following amounts determined in relation to a particular taxation year that is the current taxation year or a previous taxation year ending after 2005 throughout which the corporation was a mutual fund corporation:
(a) the tax otherwise payable by the corporation under this Act for the particular taxation year,
(b) the corporation's taxed capital gains, as determined under subsection 130(3) of the federal Act for the particular taxation year, multiplied by the applicable tax rate for that year,
(c) the corporation's taxable income for the particular taxation year multiplied by the applicable tax rate for that year;
R
is the total of all amounts refunded to the corporation under this section for a previous taxation year ending after 2005.
For the purposes of subsections (1) and (2), the applicable tax rate for a taxation year is the applicable tax rate for that year under subsection 7(3) or, if different rates under that subsection apply to different periods in the year, the applicable tax rate is the total of all rates each of which is the rate determined by the following formula for such a period:
rate = R × Dp/Dy
In this formula,
R
is the applicable tax rate under subsection 7(3) for the period;
Dp
is the number of days in the taxation year that fall within the period;
Dy
is the number of days in the taxation year.
Applying refund to other liability
Instead of refunding an amount to a corporation under subsection (1), the treasurer may, where the corporation is liable or about to become liable to make any payment under this Act, apply the amount to that other liability and notify the corporation of that action.
S.M. 1993, c. 46, s. 41; S.M. 2000, c. 39, s. 36; S.M. 2008, c. 3, s. 33.
Repealed.
S.M. 1998, c. 5, s. 83; S.M. 2000, c. 39, s. 37; S.M. 2002, c. 19, s. 34.
DIVISION III
SPECIAL CASES
CO-OP EDUCATION AND APPRENTICESHIP TAX CREDIT
A taxpayer is deemed to have paid on his or her balance-due day for a taxation year, on account of his or her tax payable under this Act for the year, an amount equal to his or her co-op education and apprenticeship tax credit under subsection (2) for the taxation year.
A taxpayer's co-op education and apprenticeship tax credit for a taxation year is the total of all amounts each of which is
(a) a tax credit of the taxpayer for the year, as determined under subsection (3), in respect of the salary or wages paid by the taxpayer for a qualifying work placement that ended in the taxation year and before 2009;
(b) a tax credit of the taxpayer for the year, as determined under subsection (5), in respect of the salary or wages paid by the taxpayer for a period of qualifying employment of an individual who becomes a qualifying graduate after March 6, 2006, and before 2009; or
(c) a tax credit of the taxpayer for the year, as determined under subsection (6.1), in respect of the salary or wages paid by the taxpayer for a period of qualifying employment of a qualifying journeyperson who first became certified in Canada as a journeyperson after April 9, 2008.
Credit for qualifying work placement
Subject to subsection (4), the tax credit of a taxpayer for a taxation year in respect of a qualifying work placement is the amount determined by the following formula:
tax credit = W × A/B
In this formula,
W
is the lesser of
(a) $1,000., and
(b) 10% of the amount by which
(i) the total salary and wages paid to the employee under that work placement for work performed primarily in Manitoba
exceeds
(ii) the amount of any other government assistance received or receivable by the taxpayer in respect of the work placement or the salary and wages;
A
is the total salary and wages paid by the taxpayer for the work placement or, if they were paid by a partnership in which the taxpayer is a general partner, the taxpayer's pro rata share of the salary and wages so paid by the partnership;
B
is the total salary and wages paid for the work placement.
The tax credit under subsection (3) in respect of a work placement is nil if
(a) the taxpayer fails to file with his or her return for the taxation year a statement under subsection (7) certifying the work placement to be a qualifying word placement; or
(b) the work placement is for an individual who already has five previous qualifying work placements, unless the credit for the work placement is approved by the minister.
Credit for employment of co-op graduate
Subject to subsection (6), the tax credit of a taxpayer for a taxation year in respect of a period of employment of a qualifying graduate is the amount determined by the following formula:
tax credit = W × A/B
In this formula,
W
is the lesser of
(a) $2,500., and
(b) 5% of the amount by which
(i) the total salary and wages paid to the qualifying graduate for a 12-month period of qualifying employment that ended in the taxation year,
exceeds
(ii) the amount of any other government assistance received or receivable by the taxpayer in respect of the salary and wages paid to the graduate for that period;
A
is the total salary and wages paid by the taxpayer to the graduate for the period of qualifying employment or, if they were paid by a partnership in which the taxpayer is a general partner, the taxpayer's pro rata share of the salary and wages so paid by the partnership;
B
is the total salary and wages paid for the period of qualifying employment.
The tax credit under subsection (5) in respect of a period of employment of an individual is nil if
(a) the taxpayer fails to file with his or her return for the taxation year a statement under subsection (7) certifying the period of employment to be a period of qualifying employment and the individual to be a qualifying graduate; or
(b) the period of employment relates to an individual who already has two 12-month periods of qualifying employment, unless the credit for the employment is approved by the minister.
Credit for employment of journeyperson
Subject to subsections (6.2) and (6.3), the tax credit of a taxpayer for a taxation year in respect of a period of employment of a qualifying journeyperson is the amount determined by the following formula:
tax credit = W × A/B
In this formula,
W
is the lesser of
(a) $2,500., and
(b) 5% of the amount by which
(i) the total salary and wages paid to the journeyperson for a period of qualifying employment that ended in the taxation year,
exceeds
(ii) the amount of any other government assistance received or receivable by the taxpayer in respect of the salary and wages paid to the journeyperson for that period;
A
is the total salary and wages paid by the taxpayer to the journeyperson for the period of qualifying employment or, if they were paid by a partnership in which the taxpayer is a general partner, the taxpayer's pro rata share of the salary and wages so paid by the partnership;
B
is the total salary and wages paid to the journeyperson for the period of qualifying employment.
The tax credit under subsection (6.1) in respect of a period of employment of a journeyperson is nil if
(a) the taxpayer fails to file with his or her return for the taxation year a statement under subsection (7) certifying the period of employment to be a period of qualifying employment; or
(b) the period of employment relates to an individual who already has two 12-month periods of qualifying employment, unless the credit for the employment is approved by the minister.
Taxpayer must participate in apprenticeship program
The tax credit under subsection (6.1) for a taxation year is nil unless the taxpayer is or has been participating in one or more of the following ways in an apprenticeship program administered by the Manitoba government:
(a) by employing, in that taxation year, at least one apprentice who has completed his or her first year of apprenticeship with the taxpayer;
(b) by having employed, within the preceding five taxation years, at least one apprentice who completed at least two years of apprenticeship with the taxpayer during those years;
(c) by being an active member, in that taxation year, of an association
(i) that is recognized under the regulations under The Apprenticeship and Trades Qualifications Act as an employer under the apprenticeship program, and
(ii) any member of which satisfies the requirement in clause (a) or (b).
The Minister of Finance for Manitoba or a person authorized by him or her for the purpose may issue to a taxpayer, upon application in accordance with the regulations, a statement certifying
(a) a work placement to be a qualifying work placement;
(b) an individual to be a qualifying graduate and a period of employment of that individual to be a period of qualifying employment; or
(c) a period of employment of a journeyperson to be a period of qualifying employment.
The Lieutenant Governor in Council may make regulations
(a) defining "period of qualifying employment", "qualifying work placement", "qualifying graduate" and "qualifying journeyperson";
(b) respecting statements to be issued under subsection (7), and applications for such statements;
(c) respecting the maintenance of books and records, and the provision of information or access to information, for the purpose of verifying the validity of a claim for a tax credit under this section;
(d) establishing a process to enable a taxpayer who is exempt from tax under this Act to apply for and obtain a refund of the amount that the taxpayer is deemed by subsection (1) to have paid on account of tax under this Act;
(e) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out the intent and purpose of this section.
A corporation may carry forward its unused tax credit under subsection (1), as that subsection read before the coming into force of this subsection, for a taxation year that ended before this subsection came into force, and deduct the unused portion of that credit from its tax otherwise payable for any of the immediately following 10 taxation years.
For the purpose of determining the amount that a corporation formed by an amalgamation to which subsection 87(1) of the federal Act applies
(a) may deduct under subsection (9); or
(b) is deemed by subsection (1) to have paid on account of its tax payable;
the corporation is deemed to be the same corporation as, and a continuation of, each of its predecessor corporations.
For the purpose of determining the amount that a corporation
(a) may deduct under subsection (9); or
(b) is deemed by subsection (1) to have paid on account of its tax payable;
for a taxation year ending after a winding-up of its subsidiary to which subsection 88(1) of the federal Act applies, the corporation is deemed to be the same corporation as, and a continuation of, the subsidiary.
S.M. 2003, c. 4, s. 48; S.M. 2004, c. 43, s. 55; S.M. 2005, c. 40, s. 39; S.M. 2006, c. 24, s. 43; S.M. 2008, c. 3, s. 35.
ODOUR-CONTROL TAX CREDIT
An eligible taxpayer may deduct from his or her tax otherwise payable under this Act for a taxation year an amount not exceeding the lesser of
(a) the taxpayer's odour-control tax credit at the end of the year; and
(b) the tax otherwise payable by the taxpayer under this Act for the year.
Credit refundable if it relates to farming
An eligible taxpayer who is carrying on the business of farming is deemed to have paid on his or her balance-due day, on account of his or her tax payable under this Act for a taxation year, the amount equal to the lesser of
(a) the amount, if any, by which the taxpayer's odour-control tax credit at the end of the year exceeds the amount that the taxpayer may deduct under subsection (1) for that year; and
(b) the property tax paid, for the calendar year that ended in that taxation year, on Manitoba farmland used by the taxpayer in the business of farming, net of any property tax refund, rebate or other government assistance received or receivable in respect of that property tax.
In this section,
"business entity" means a farmer or a corporation, partnership or trust; (« entreprise »)
"eligible expenditure" of a business entity for a taxation year means its capital cost, determined without the deduction under this section being treated as government assistance, of a depreciable capital property that
(a) is prescribed by regulation, or is declared under subsection (3) to be a qualifying property,
(b) was acquired by it after April 19, 2004, and before 2010 for the purpose of preventing, eliminating or significantly reducing odour that arises — or without the use of the property would arise — from organic waste used or created in the course of its business in Manitoba,
(c) became available for use by it in the taxation year and before 2010, as determined under subsection 13(27) of the federal Act without reference to paragraph (c) or under subsection 13(28) of that Act without reference to paragraph (d), and
(d) was not used or acquired for any use by anyone before the property was acquired by the business entity;
(e) repealed, S.M. 2005, c. 40, s. 39. (« dépenses admissibles »)
"eligible taxpayer" means a corporation or a farmer. (« contribuable admissible »)
"farmer" means an individual who is carrying on the business of farming as a sole proprietor or as a general partner in a partnership that is carrying on the business of farming. (« agriculteur »)
"minister" means the Minister of Finance for Manitoba or a person designated by him or her to perform certain duties assigned to the minister under this section or the regulations; (« ministre »)
"odour-control tax credit" of an eligible taxpayer at the end of a taxation year means the amount, if any, by which
(a) 10% of all amounts each of which is an eligible expenditure of the taxpayer for the year or for any of the 10 immediately preceding taxation years or the three immediately following taxation years,
exceeds the total of
(b) the total of all amounts deducted under subsection (1) for a preceding taxation year in respect of an eligible expenditure of the taxpayer for any of the 10 immediately preceding taxation years or the two immediately following taxation years, and
(c) the total of all amounts deemed by subsection (1.1) to have been paid by the taxpayer on account of tax payable for a preceding taxation year in respect of an eligible expenditure of the taxpayer for any of the 10 immediately preceding taxation years or the two immediately following taxation years. (« crédit d'impôt pour la lutte contre l'émission d'odeurs »)
Despite subsection (2), in determining a taxpayer's odour-control tax credit,
(a) no amount shall be included in respect of an acquisition of property unless and until the taxpayer has filed with the minister, within one year after the filing-due date for the taxation year in which the property was acquired, a prescribed form containing the information about the property stipulated by the form;
(b) no amount shall be included in respect of an acquisition of property if an amount in respect of the property is included in computing a tax credit claimed under any other section of this Act;
(c) no amount shall be included in respect of an acquisition of property by a farmer unless the property is acquired for use in his or her farming business; and
(d) for the purpose of subsection (1.1), no amount shall be included in respect of an acquisition of property that was not acquired for use in the taxpayer's farming business.
Minister may issue certificate
The minister may issue a certificate to a business entity declaring a property to be a qualifying property for the purpose of this section if the entity satisfies the minister that the property
(a) is capable of being used, and is being or will be used, by it for the purpose of preventing, eliminating or significantly reducing odour that arises — or without the use of the property would arise — from organic waste used or created in the course of its business in Manitoba; and
(b) is being or will be used by it in a process that involves
(i) aerobic treatment,
(ii) composting,
(iii) drying or dehydration, or
(iv) fermentation,
of organic waste.
For the purpose of this section, an eligible taxpayer who was a beneficiary or partner of a business entity at the end of a taxation year of the entity that ended in the taxation year of the taxpayer may include, as an eligible expenditure of the taxpayer for the taxpayer's taxation year, the taxpayer's proportionate share of an eligible expenditure of the entity for its taxation year.
For the purpose of subsection (4), an eligible taxpayer's proportionate share of an eligible expenditure of a business entity for a taxation year of the entity is the proportion of the expenditure that the fair market value of the taxpayer's interest in the entity at the end of that taxation year is of the total fair market value at that time of all the interests in the entity, determined without regard to any premium or discount that applies to a majority or minority interest.
For the purpose of subsection (4), a person who is a member of a partnership that is a member of another partnership is deemed to be a member of that other partnership.
For the purpose of determining the amount that a corporation formed by an amalgamation to which subsection 87(1) of the federal Act applies may deduct under subsection (1) or is deemed by subsection (1.1) to have paid on account of tax, the corporation is deemed to be the same corporation as, and a continuation of, each of its predecessor corporations.
For the purpose of determining the amount that a corporation may deduct under subsection (1) or is deemed by subsection (1.1) to have paid on account of tax for a taxation year ending after a winding-up of its subsidiary to which subsection 88(1) of the federal Act applies, the corporation is deemed to be the same corporation as, and a continuation of, the subsidiary.
The Lieutenant Governor in Council may make regulations
(a) defining any term used in this section but not defined in this Act;
(b) prescribing properties for the purpose of the definition "eligible expenditure" in subsection (2);
(c) respecting the declaration of property as qualifying property for the purpose of this section, and the application for such a declaration;
(d) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out the intent and purpose of this section.
S.M. 2004, c. 43, s. 56; S.M. 2005, c. 40, s. 39; S.M. 2006, c. 24, s. 44.
GREEN ENERGY EQUIPMENT TAX CREDIT
Manufacturer's refundable green energy equipment tax credit
An eligible manufacturer is deemed to have paid on account of its tax payable under this Act for a taxation year an amount, not exceeding the amount determined under the regulations, in respect of any qualifying machinery or equipment manufactured by the manufacturer that it sold in the year for use in producing energy in Manitoba from any of the following renewable resources:
(a) solar energy;
(b) wind power;
(c) hydrogen;
(d) geothermal energy;
(e) any other resource prescribed by regulation.
Purchaser's refundable green energy equipment tax credit
An eligible taxpayer is deemed to have paid on account of his or her tax payable under this Act for a taxation year an amount, not exceeding the amount determined under the regulations, in respect of specified machinery or equipment purchased by the taxpayer and first used or made available for use by him or her in the year to produce energy in Manitoba from any of the following renewable resources:
(a) solar energy;
(b) hydrogen;
(c) geothermal energy;
(d) any other resource prescribed by regulation.
The Lieutenant Governor in Council may make regulations respecting the tax credits provided for in this section, including regulations
(a) defining any term or expression used in this section, including "eligible manufacturer", "eligible taxpayer", "qualifying machinery or equipment" and "specified machinery or equipment";
(b) prescribing additional resources for the purpose of subsection (1) or (2) or both;
(c) prescribing a formula or other method for calculating the tax credit for an eligible manufacturer under subsection (1);
(d) prescribing a formula or other method for calculating the tax credit for an eligible taxpayer under subsection (2);
(e) enabling eligible manufacturers to assign all or any part of their tax credits under subsection (1) and establishing restrictions or conditions for such assignments;
(f) establishing classes of qualifying machinery or equipment;
(g) respecting the provision of information by
(i) a manufacturer of qualifying machinery or equipment, or
(ii) a purchaser of specified machinery or equipment,
to the minister appointed by the Lieutenant Governor in Council to administer this section;
(h) respecting the provision of information, for the purposes of the tax credit under subsection (2), by a manufacturer or other seller of specified machinery or equipment to a purchaser of it;
(i) providing for the recovery of all or any part of a tax credit claimed under subsection (1) in respect of machinery or equipment that was sold by an eligible manufacturer for use in Manitoba but was not used or made available for use in Manitoba within a prescribed time after the date of sale;
(j) providing for the recovery of all or any part of a tax credit claimed under subsection (2) in respect of machinery or equipment that was purchased by an eligible taxpayer for use in Manitoba but was not used or made available for use in Manitoba within a prescribed time after the date of purchase;
(k) respecting any other matter that the Lieutenant Governor in Council considers necessary or desirable for the purposes of this section or for measuring the effectiveness of the tax credits under this section.
Regulations for determining amounts of tax credits
The formulas or other methods of calculating tax credits that may be prescribed under clauses (3)(c) and (d)
(a) may be different for different classes of qualifying machinery or equipment;
(b) may be different for different classes of specified machinery or equipment; and
(c) must not result in
(i) a credit under subsection (1) for any item of machinery or equipment, other than an item used to produce energy from wind power, exceeding 10% of the price at which the item was sold by the manufacturer, or
(ii) a credit under subsection (2) for any item of machinery or equipment, exceeding 10% of the purchase price paid by the eligible taxpayer for that item, less any credit that an eligible manufacturer has claimed or may claim under subsection (1) in respect of the item.
MANITOBA BOOK PUBLISHING TAX CREDIT
Subject to subsection (2), an eligible publisher is deemed to have paid on the publisher's balance-due day for a taxation year, on account of the publisher's tax payable under this Act for that year, such amount as is claimed by the publisher, but not exceeding the total of
(a) the lesser of
(i) $100,000., and
(ii) the amount determined by the following formula:
40% × [A + (L × P1/P2)]
In this formula,
A
is, subject to any limit prescribed by regulation, the total of the non-refundable monetary advances made in the taxation year by the publisher to authors of eligible books published or to be published by the publisher,
L
is the publisher's book publishing labour costs for the taxation year,
P1
is the total number of pages that make up the eligible books published by the publisher in the taxation year,
P2
is the total number of pages that make up the hardcover and paperback books published by the publisher in the taxation year; and
(b) 10% of the publisher's eligible printing costs for the taxation year.
No amount may be claimed under subsection (1) for a taxation year except by filing with the minister, within one year after the filing due date for the taxation year and in a form and manner authorized by the minister, the information to be provided on that form.
The following definitions apply in this section.
"book publishing labour costs" of a publisher for a taxation year means the total of the following amounts, to the extent that they are incurred after April 9, 2008 and before 2012 and are reasonable in the circumstances:
(a) the salary or wages that
(i) were paid by the publisher in that taxation year to its employees who were resident in Manitoba on December 31 of that taxation year, and
(ii) are related to the publication of hardcover or paperback books but not to the marketing or promotion of books;
(b) 65% of the fees that are related to the publication of hardcover or paperback books, but not to the marketing or promotion of books, and were paid in the taxation year by the publisher to
(i) an individual who is resident in Manitoba and is not an employee of the publisher, or
(ii) a corporation with a permanent establishment in Manitoba;
(c) any additional amounts determined in accordance with the regulations. (« coûts en main-d'œuvre d'édition »)
"eligible book" means a first edition, non-periodical publication that meets all of the following requirements:
(a) it is published in hardcover or paperback book format;
(b) the agreement between its publisher and the author for the publication of the book was entered into after April 9, 2008 and before 2012;
(c) a prescribed number of copies of the book — or 300 copies, if no number of copies is prescribed — have been printed;
(d) the book is assigned an International Standard Book Number (ISBN), and is classified as fiction, non-fiction, poetry, drama, biography or a children's book;
(e) if it is not a children's book, it is at least 48 pages long;
(f) the entire book, or substantially all of it, has been written, adapted or translated by an author who is a Canadian citizen or permanent resident and is paid a royalty on sales of the book;
(g) if it is an illustrated children's book, the illustrations or substantially all of them have been created by an illustrator who is a Canadian citizen or permanent resident and is paid a royalty on sales of the book;
(h) if it is a book comprising written works by different authors, all or substantially of the written works within the book meet the requirements of clause (f) and, if applicable, clause (g);
(i) its publisher deals at arm's length with the author referred to in clause (f) and, if applicable, with the illustrator referred to in clause (g);
(j) its publisher's costs of publishing the book are recoverable only from sales of the book, and are not directly or indirectly funded or guaranteed to be paid, in whole or in part, by the author, the illustrator or a person who is the subject of the book, or by any person who is related to any of them;
(k) it is not a directory, agenda, catalogue, calendar, map or collection of maps, loose-leaf publication, colouring book, sticker book or other activity book or book of games, or a similar product;
(l) it does not contain any advertising other than the publisher's own promotional material;
(m) it does not contain material that is hate propaganda or child pornography as defined in the Criminal Code (Canada) or is deemed to be obscene under that Act, or any other material the publication, sale or possession of which is an offence under that Act;
(n) it does not contain material that, in the opinion of the minister, it would be contrary to public policy to support with public funds;
(o) any additional requirement prescribed by regulation. (« livre admissible »)
"eligible printing costs" of a publisher for a taxation year means the publisher's costs for the year of printing, assembling and binding eligible books, to the extent that those costs
(a) are reasonable in the circumstances;
(b) are incurred after April 9, 2008 and before 2013;
(c) are incurred in relation to an eligible book in the year it is published or in the immediately following year;
(d) are paid by the publisher in the taxation year;
(e) relate to the publication of eligible books that are printed on paper having at least 30% recycled content comprised of post-consumer waste paper; and
(f) satisfy any other requirements prescribed by regulation. (« coûts d'impression admissibles »)
"minister" means the minister appointed by the Lieutenant Governor in Council to administer this section. (« ministre »)
"tax credit" means the book publishing tax credit under subsection (1). (« crédit d'impôt »)
Interpretation of "book publishing labour costs"
For the purpose of the definition "book publishing labour costs" in subsection (3),
(a) an amount is related to the publication of a book if it is incurred as a cost of
(i) editing, design, research or project management in relation to the book,
(ii) creating artwork for the book, or
(iii) developing a prototype of the book;
(b) legal and accounting costs are deemed not to be related to the publication of books, even if they are incurred in connection with the publication of books; and
(c) any part of a salary, wage or fee that is determined by reference to profits or revenues is deemed not to be related to the publication of books.
For the purpose of subsection (1), a person is an eligible publisher for a taxation year if
(a) the person is
(i) an individual, other than a trust, who is resident in Manitoba at the end of the taxation year, or
(ii) a corporation that has a permanent establishment in Manitoba in the taxation year;
(b) the person is
(i) carrying on the book publishing business as a university press, or
(ii) primarily engaged in the operation of the book publishing business;
(c) where the business is operated as a university press, at least 25% of the total salaries and wages paid in the taxation year by the person to employees employed in that business was paid to employees who were resident in Manitoba on December 31 of the taxation year;
(d) where the business is not operated as a university press, at least 25% of the total salaries and wages paid in the taxation year by the person to the person's employees was paid to employees who were resident in Manitoba on December 31 of the taxation year; and
(e) the person has published at least two eligible books within the two-year period ending at the end of the taxation year.
For the purpose of subsection (5), a business is a book publishing business only if, in the course of that business,
(a) books are selected, edited, published and offered for sale to retailers, or directly or indirectly to consumers;
(b) the owner of the business enters into agreements with authors and copyright holders for the production of books in print form; and
(c) the owner maintains an inventory of books that it publishes, or has agreements to repurchase or allow the return of unsold books.
If more than one publisher claims to be the publisher of an eligible book, the book must be excluded in determining the tax credit of each of them, unless they file with the minister an agreement signed by all of them that allocates among them the number of pages of the book that are to be included in determining their tax credits.
Recovery of overpayment of tax credit
If the minister determines that all or any part of an amount paid or applied under subsection (1) did not qualify as a tax credit of the person to whom it was paid or for whose benefit it was applied, that amount or part of the amount is recoverable from the person and is a debt due by the person to Her Majesty in right of Manitoba.
The Lieutenant Governor in Council may make regulations
(a) defining any term used in this section but not defined in this Act;
(b) prescribing a limit to non-refundable advances to authors that may be included in determining the amount of a tax credit;
(c) prescribing additional requirements for the purpose of
(i) the definition "eligible book", or
(ii) the definition "eligible printing costs";
(d) prescribing additional categories of expenses that may be included as book publishing labour costs;
(e) respecting information to be provided by a person claiming a tax credit under this section;
(f) respecting the maintenance of books and records, and the provision of information or access to information, for the purpose of verifying the validity of a claim for a tax credit under this section;
(g) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out effectively the intent and purpose of this section.
The minister may delegate to an employee of the government any power, duty or function of the minister under this section.
INTERACTIVE DIGITAL MEDIA TAX CREDIT
Interactive digital media tax credit
Subject to subsection (2), a qualifying corporation is deemed to have paid on its balance-due day for a taxation year, on account of its tax payable under this Act for that year, such amount as is claimed by the corporation, but not exceeding 40% of the amount, if any, by which
(a) its eligible labour costs for eligible projects completed in the taxation year;
exceed
(b) the amount of any government assistance, other than the tax credit under this section or section 10.1 (co-op education and apprenticeship tax credit), received or receivable by the corporation in relation to its eligible labour costs for those projects.
No amount may be claimed under subsection (1) in respect of an eligible project except by filing with the Minister of National Revenue, within one year after the filing due date for the taxation year in which the project was completed, a tax credit certificate issued under subsection (8) for the project.
"Qualifying corporation" defined
For the purpose of this section, a corporation is a qualifying corporation in relation to an eligible project if
(a) throughout the project period, it is a taxable Canadian corporation with a permanent establishment in Manitoba; and
(b) at least 25% of the salary and wages paid by the corporation to its employees for the project period was paid to employees who are Manitoba residents for the project period.
The following definitions apply in this section.
"commencement date", in relation to an eligible project of a corporation, means the date on which the corporation first incurs an expense to be included in the corporation's eligible labour costs for the project. (« date de début »)
"eligible labour costs" of a corporation in relation to an eligible project means the lesser of $1,250,000. and the total of the following amounts, to the extent that they are reasonable in the circumstances, are directly attributable to the project, and were incurred and paid before 2011 and within the project period:
(a) the salaries and wages paid by the corporation to its employees who are Manitoba residents for the project period;
(b) 65% of the fees paid by the corporation to
(i) an individual who is a Manitoba resident for the project period and is not an employee of the corporation, for services performed by the individual or by one or more employees of the individual who are Manitoba residents for the project period,
(ii) a taxable Canadian corporation with a permanent establishment in Manitoba, for services performed on its behalf by one or more employees who are Manitoba residents for the project period, or
(iii) a partnership carrying on business in Canada, for services performed on its behalf by one or more individuals who are employees or members of the partnership and are Manitoba residents for the project period;
(c) 20% of the total of all amounts each of which is an amount that would be included under clause (a) or (b) in respect of services performed in Manitoba for the project by an individual who is not a Manitoba resident for the project period if
(i) the individual were a Manitoba resident for the project period, and
(ii) no amount were included in respect of the benefits or allowances that are included (or would be included if the individual were an employee resident in Canada) in the income of the individual under section 6 of the federal Act. (« coûts de main-d'œuvre admissibles »)
"eligible project" means a project of a corporation, certified by the minister to be an eligible project of the corporation, to develop an interactive digital media product primarily for sale to
(a) one or more purchasers who deal with the corporation at arm's length; or
(b) a purchaser for resale or licensing by the purchaser to one or more other persons, most of whom deal at arm's length with the purchaser and the corporation. (« projet admissible »)
"interactive digital media product" means a product that
(a) consists of a combination of software and data files, in digital format, that are designed to be operated together, interactively by the user, to present information using sound, text and images, or any two of them;
(b) is designed primarily to educate, inform or entertain the user;
(c) in the case of a video game, is classified by the Entertainment Software Rating Board as anything other than "AO" (adults only); and
(d) is not
(i) operating system software,
(ii) a product to be used primarily for interpersonal communication,
(iii) a product to be used primarily for marketing or promoting of an entity, a product or an idea,
(iv) a product that contains hate propaganda or child pornography as defined in the Criminal Code (Canada) or is deemed to be obscene under that Act, or any other material the publication, sale or possession of which is an offence under that Act, or
(v) a product that, in the opinion of the minister, it would be contrary to public policy to support with public funds. (« produit utilisant des médias numériques interactifs »)
"Manitoba resident", in relation to a project period, means resident in Manitoba on any December 31 within the period or, if the period does not include that day, on December 31 of the year in which the period ends. (« résident du Manitoba »)
"minister" means the minister appointed by the Lieutenant Governor in Council to administer this section. (« ministre »)
"project period", in relation to an eligible project, means
(a) the period beginning on the project's commencement date and ending on the day the project is completed; or
(b) the 24-month period ending on the day the project is completed;
whichever is shorter. (« période de projet »)
Interpretation of "eligible labour costs"
For the purpose of the definition "eligible labour costs" in subsection (4),
(a) no amount may be included in respect of the following:
(i) salary, wages or fees determined by reference to profits or revenues,
(ii) stock options, signing bonuses, or other employment incentives,
(iii) ancillary employment benefits that are not required by law to be provided,
(iv) any benefits or remuneration prescribed by regulation,
(v) an amount that is included in computing the corporation's eligible labour costs in relation to any other project or the eligible labour costs of any other corporation,
(vi) an amount that is included in computing a tax credit claimed under any other section of this Act other than section 10.1 (co-op education and apprenticeship tax credit), or under any Act of another province or territory of Canada; and
(b) an amount is not considered to be directly attributable to an eligible project if it is paid for
(i) services related to distribution, marketing or promotion,
(ii) administrative, payroll or management services, other than management services consisting of managing the project, or
(iii) any other service prescribed by regulation.
Upon application by a corporation proposing to develop an interactive digital media product, the minister may issue to the corporation a document that
(a) identifies the project and certifies it to be an eligible project;
(b) sets out the corporation's proposed commencement date and estimated completion date for the project;
(c) provides an estimate of the tax credit; and
(d) includes any other information that the minister considers appropriate or necessary.
Application for certificate of eligibility
A corporation's application for a certificate of eligibility under subsection (6) must be made in a form approved by the minister and before the commencement date of the project, and must include the following:
(a) the name, address and business number of the corporation;
(b) a description of the interactive digital media product to be developed;
(c) if the product is to be developed for sale to a purchaser for resale or licensing to others, the name and address of the purchaser and, if requested by the minister, a copy of the agreement between the corporation and the purchaser;
(d) if clause (c) does not apply or the purchaser referred to in that clause has not been identified, a copy of the corporation's plan for marketing the product;
(e) an estimate of the corporation's eligible labour costs for the project;
(f) the proposed commencement date and an estimated completion date for the project;
(g) any other information requested by the minister.
The minister, upon application by a qualifying corporation in accordance with subsection (9), and upon being satisfied that the corporation qualifies for a tax credit for an eligible project, must issue a tax credit certificate that sets out
(a) the name, address and business number of the corporation and the identifier of the project;
(b) the amount of the tax credit;
(c) the taxation year to which the tax credit applies; and
(d) any other information that the minister considers appropriate or necessary.
Application for tax credit certificate
A corporation's application for a tax credit certificate for an eligible project must be made in a form approved by the minister and must set out or include the following:
(a) the name, address and business number of the corporation;
(b) a copy of the certificate of eligibility for the project;
(c) the commencement date of the project and the date of its completion;
(d) a statement of the eligible labour costs;
(e) information the minister requires in order to verify or be satisfied
(i) that the corporation is a qualifying corporation in relation to the project,
(ii) that the project has been completed and satisfies all the requirements for an eligible project, and
(iii) that the amounts claimed as eligible labour costs qualify as eligible labour costs;
(f) any other information relating to the project or the corporation that the minister considers appropriate or necessary for the administration of the tax credit.
The minister may revoke a certificate of eligibility or a tax credit certificate issued to a corporation for a project if any information provided by the corporation to obtain the certificate is false or misleading or fails to disclose a material fact. The minister may also revoke a certificate of eligibility for a project if
(a) the project is not carried out as proposed and ceases to be an eligible project; or
(b) the project is not completed within 36 months after the certificate was issued.
If a certificate is revoked under subsection (10), it is deemed never to have been issued.
Recovery of overpayment of tax credit
If the Minister of Finance for Manitoba determines that all or any part of an amount paid or applied under subsection (1) did not qualify as a tax credit of the person to whom it was paid or for whose benefit it was applied, that amount or part of the amount is recoverable from the person and is a debt due by the person to Her Majesty in right of Manitoba.
The Lieutenant Governor in Council may make regulations
(a) defining any term used in this section but not defined in this Act;
(b) prescribing benefits or remuneration to be excluded from the definition "eligible labour costs" in subsection (4);
(c) prescribing services the costs of which are not to be considered directly attributable to an eligible project;
(d) respecting information to be provided by a person claiming a tax credit under this section;
(e) respecting the maintenance of books and records, and the provision of information or access to information, for the purpose of verifying the validity of a claim for a tax credit under this section;
(f) respecting any other matter that the Lieutenant Governor in Council considers necessary to carry out effectively the intent and purpose of this section.
The minister may delegate any power, duty or function of the minister under this section to
(a) an employee of the government; or
(b) an officer of New Media Manitoba Inc.
Abrogé.
LABOUR-SPONSORED FUNDS TAX CREDIT
In this section and sections 11.5 and 11.5.1,
"approved share" means a Class A share that was issued to an individual who was a Manitoba resident at the time of the original acquisition of the share — or to a qualifying trust for such an individual — by a corporation that, at the time of that acquisition, was registered under The Labour-Sponsored Venture Capital Corporations Act; (« action approuvée »)
"approved share limit", in relation to a selling period of a labour-sponsored venture capital corporation, means the lesser of
(a) the total of the amounts designated by it under subsection (4) in respect of approved shares the original acquisition of which occurred in the period, and
(b) $30,000,000., or any greater amount prescribed in the regulations; (« plafond »)
"Class A share" means a Class A share as defined in The Labour-Sponsored Venture Capital Corporations Act; (« action de catégorie A »)
"labour-sponsored funds tax credit" of an individual (other than a trust) in respect of the original acquisition after 1996 of an approved share (other than a share in respect of which an amount was deducted under this section in computing the individual's income for the 1996 taxation year) by the individual or by a qualifying trust for the individual in respect of the share means 15% of the lesser of
(a) the net cost of the share to the individual or the trust, as the case may be, and
(b) the amount designated in respect of the share in the receipt filed by the individual under subsection (3); (« crédit d'impôt relatif à un fonds de travailleurs »)
"labour-sponsored venture capital corporation" means a corporation that is or has been registered under The Labour-Sponsored Venture Capital Corporations Act; (« corporation à capital de risque de travailleurs »)
"net cost" to an individual of an approved share, or to a qualifying trust for the individual in respect of an approved share, means the amount, if any, by which
(a) the amount of the consideration paid by the individual or the qualifying trust to acquire or subscribe for the share
exceeds
(b) the amount of any assistance (other than an amount included in computing a tax credit of the individual in respect of that share) provided or to be provided by a government, municipality, or any public authority in respect of or for the acquisition of, the share. (« coût net »)
"original acquisition" of a share means the acquisition of the share by the first registered holder of the share where that holder is the first person to acquire the share or to irrevocably subscribe and pay for the share; (« aquisition initiale »)
"qualifying trust" for an individual in respect of an approved share means a trust governed by a registered retirement savings plan under which
(a) if it is not a spousal plan, the individual is the annuitant, or
(b) if it is a spousal plan, the individual or the individual's spouse or common-law partner is the annuitant, if the individual and no other individual claims a deduction under this section in respect of the share; (« fiducie admissible »)
"selling period" means a period beginning on the 61st day of a calendar year and ending on the 60th day of the following calendar year; (« période de vente »)
For the purposes of this section and section 11.5,
(a) a broker or dealer in securities who in that capacity acquires, subscribes for or becomes a registered holder of a share is deemed not to have acquired, subscribed for or become a registered holder of the share; and
(b) where the person who became the first registered holder of a Class A share irrevocably subscribed and paid for the share before it was first acquired by the person, the original acquisition of the share is deemed to have occurred when the share was irrevocably subscribed and paid for by the person;
(c) and (d) repealed, S.M. 2006, c. 23, s. 2.
11.1(1.2) and (1.3) Repealed, S.M. 2006, c. 23, s. 2.
Repealed, S.M. 2000, c. 39, s. 39.
Labour-sponsored funds tax credit
Subject to subsection (3), there may be deducted from the tax otherwise payable under this Act by an individual (other than a trust) for a taxation year an amount not exceeding the lesser of
(a) $1,800.; and
(b) the total of the following amounts:
(i) the lesser of $750. and the amount determined by the following formula:
A − B
In this formula,
A
is the total of all amounts each of which is the individual's labour-sponsored funds tax credit in respect of the original acquisition in the taxation year or in the first 60 days of the following year of an approved share of a corporation that was registered under The Labour-Sponsored Venture Capital Corporations Act before July 1, 2006,
B
is the portion of the amount determined for A that was deducted under this subsection for the preceding taxation year; and
(ii) the amount determined by the following formula:
C − D
In this formula,
C
is the total of all amounts each of which is the individual's labour-sponsored funds tax credit in respect of the original acquisition in the taxation year or in the first 60 days of the following year of an approved share of a corporation that was first registered under The Labour-Sponsored Venture Capital Corporations Act after June 30, 2006,
D
is the portion of the amount determined for C that was deducted under this subsection for the preceding taxation year.
An individual is not entitled to a credit under this section unless the amount designated in respect of each approved share for which a credit is claimed is proven by filing with the minister a receipt in prescribed form setting out the amount designated in respect of the share under this section.
A corporation that issues an approved share shall designate for the purposes of this section, in the prescribed form and manner, an amount in respect of the share, not exceeding the consideration for which the share was issued.
11.1(4.1) and (4.2) Repealed, S.M. 2001, c. 24, s. 2.
Limitation on amount designated
The total of the amounts designated under subsection (4) by a corporation for a taxation year in respect of approved shares purchased or subscribed for by an individual and a qualifying trust for the individual must not exceed
(a) $5,000., if the corporation was registered under The Labour-Sponsored Venture Capital Corporations Act before July 1, 2006; or
(b) $12,000., if the corporation was first registered under The Labour-Sponsored Venture Capital Corporations Act after June 30, 2006.
A corporation that designates under subsection (4) amounts for a selling period that in total exceed its approved share limit for the period shall pay a tax equal to 15% of the excess.
11.1(7) and (8) Repealed, S.M. 1997, c. 49, s. 20.
S.M. 1991-92, c. 48, s. 24; S.M. 1993, c. 46, s. 42; S.M. 1994, c. 27, s. 6; S.M. 1996, c. 66, s. 11; S.M. 1997, c. 49, s. 20; S.M. 1999, c. 3, s. 9; S.M. 2000, c. 39, s. 39; S.M. 2001, c. 24, s. 2; S.M. 2002, c. 19, s. 35; S.M. 2005, c. 43, s. 11; S.M. 2006, c. 23, s. 2; S.M. 2006, c. 24, s. 45.
11.2 to 11.4Repealed.
S.M. 1997, c. 49, s. 21; S.M. 2006, c. 23, s. 3.
Recovery of credit: redemption of share
Where a Class A share of the capital stock of a labour-sponsored venture capital corporation is redeemed, acquired or cancelled by the corporation less than eight years after the original acquisition of the share, the person who was the shareholder immediately before the redemption, acquisition or cancellation (referred to in this section as the "vendor") shall pay a tax equal to the lesser of
(a) the labour-sponsored funds tax credit of an individual in respect of the original acquisition; and
(b) the amount that would, but for subsection (3), be payable to the vendor because of the disposition.
Non-application of subsection (1)
Subsection (1) does not apply to the redemption, acquisition or cancellation of a Class A share by a labour-sponsored venture capital corporation
(a) where the original acquisition of the share occurred before June, 1997;
(b) where no tax credit has been claimed in respect of the original acquisition of the share and the receipt referred to in subsection 11.1(3) in respect of the original acquisition has been returned to the corporation;
(c) where
(i) it occurs at the written request of the vendor and the vendor is the individual entitled to a deduction under subsection 11.1(2.1) in respect of the original acquisition of the share or
(A) the individual's spouse or common-law partner or former spouse or common-law partner, or
(B) a registered retirement savings plan or registered retirement income fund under which the individual, spouse or common-law partner is an annuitant, and
(ii) the corporation is notified in writing that the individual became disabled and permanently unfit for work, or terminally ill, after the original acquisition;
(d) where it occurs at the request of the vendor, and the vendor is a person on whom the share devolved as a consequence of the death of an individual who held the share or was the annuitant under a registered retirement savings plan or registered retirement income fund that held the share;
(e) where, if the share is redeemed, acquired or cancelled on a day in February or on March 1, subsection (1) would not have applied if the redemption, acquisition or cancellation had occurred 30 days later; or
(f) where the corporation's registration under The Labour-Sponsored Venture Capital Corporations Act has been cancelled.
Recovery of credit: return of capital
When a labour-sponsored venture capital corporation pays an amount to the holder of a Class A share as a return of capital on the share less than eight years after the original acquisition of the share, the holder must pay a tax equal to the lesser of
(a) the labour-sponsored funds tax credit of an individual in respect of the original acquisition; and
(b) the amount that would, but for subsection (3), be payable to the holder as a return of capital on the share;
unless
(c) no tax credit has been claimed in respect of the original acquisition of the share and the receipt referred to in subsection 11.1(3) in respect of the original acquisition has been returned to the corporation; or
(d) the corporation's registration under The Labour-Sponsored Venture Capital Corporations Act has been cancelled.
Withholding and remittance of tax
Where tax is payable under subsection (1) or (2.1) by the vendor or holder of a share, the corporation must
(a) withhold from the amount otherwise payable to the vendor or holder an amount equal to the tax payable by him or her;
(b) within 30 days after making the payment to the vendor or holder, remit the amount withheld to the Minister of Finance for Manitoba on behalf of the vendor or holder; and
(c) submit, with the remitted amount, a statement containing prescribed information.
A corporation that fails to withhold an amount to be withheld and remitted under subsection (3) is liable to pay the amount to the Minister of Finance for Manitoba at the time that it was to have been remitted, and may recover the amount so paid from the vendor or holder from whom it was to have been withheld.
The Minister of Finance for Manitoba may pay to an individual an amount not exceeding the lesser of
(a) the tax paid under this section in respect of the redemption, acquisition or cancellation of a Class A share; and
(b) the amount, if any, by which the individual's labour-sponsored funds tax credit in respect of the original acquisition of the share exceeds the amount deducted by the individual under subsection 11.1(2.1) in respect of the share;
if the individual files a written application for the refund with the Minister of Finance for Manitoba no later than two years after the end of the calendar year in which the disposition occurred.
S.M. 1997, c. 49, s. 21; S.M. 2001, c. 24, s. 3; S.M. 2006, c. 23, s. 4.
Tax where venture capital business discontinued
If a labour-sponsored venture capital corporation's registration under The Labour-Sponsored Venture Capital Corporations Act is cancelled, the corporation must pay to the Minister of Finance for Manitoba, within 90 days after the cancellation, a one-time tax equal to the total of the amounts each of which is an amount determined by the following formula in respect of a Class A share of the capital stock of the corporation immediately before the cancellation:
amount per share = 1.875% (8 − Y) × C
In this formula,
Y
is the number of whole years throughout which the share has been outstanding;
C
is the amount of the consideration received by the corporation for the issue of the share.
The Minister of Finance for Manitoba may waive the tax imposed by subsection (1).
MANITOBA EQUITY TAX CREDIT
In this section,
"affiliate" in relation to a particular corporation means, subject to the regulations, a corporation or partnership that is affiliated with the particular corporation for the purposes of the federal Act; (« affiliée »)
"creditable amount" of a share at any time means
(a) in the case of an eligible share, the amount determined in accordance with the regulations in respect of the subscription price of the share, less the total of all amounts paid before that time as a return of capital on the share, and
(b) in any other case, nil; (« montant donnant droit à un crédit »)
"eligible corporation" at any time means a taxable Canadian corporation where
(a) the total carrying value at that time of all the property of the corporation and of all affiliates of the corporation (determined in accordance with generally accepted accounting principles on a consolidated and combined basis, where applicable) does not exceed $50,000,000.,
(b) neither the corporation nor any affiliate of the corporation carries on a business prescribed by regulation,
(c) not more than 10% of the total carrying value of the property of the corporation, and not more than 10% of the total carrying value of the property referred to in clause (a), is attributable to property prescribed by regulation,
(d) the corporation meets any active business or other requirements prescribed by regulation,
(e) the total number of employees each of whom is employed at that time by the corporation or an affiliate of the corporation does not exceed 500,
(f) at least 25% of the total number of employees each of whom is employed at that time by the corporation or an affiliate of the corporation are employed in Manitoba,
(g) at least 25% of the total number of employees employed at that time by the corporation are employed in Manitoba, and
(h) at least 25% of the total of all amounts each of which is comprised of the wages and salaries paid or payable by the corporation or an affiliate of the corporation to its employees for the calendar year that includes that time is reasonably attributable to services rendered in Manitoba by those employees; (« corporation admissible »)
"eligible investor" in relation to a share in the capital stock of a corporation means an individual, other than a trust and an investment dealer, where
(a) the individual or a qualifying trust for the individual owns the share, and
(b) the individual is not an insider of the corporation for the purposes of Part XI of The Securities Act; (« investisseur admissible »)
"eligible share" at any time means a share of a class of the capital stock of a corporation where
(a) the issuer of the share was an eligible corporation at the time it was issued,
(b) the corporation is or would, if the definition "eligible corporation" were read without clauses (a) and (e), be an eligible corporation at the particular time,
(c) the class of shares is listed and posted for trading on a stock exchange that, as determined by The Manitoba Securities Commission, is operating in Manitoba and is not listed on any other stock exchange,
(d) every share of the class was issued after April 29, 1999, before July 2008 and not more than three years before the particular time,
(e) all of the shares of the class were issued on the same primary distribution to the public, as defined in The Securities Act, of previously unissued shares at a time when, or immediately following which, the class of shares was listed and posted for trading on The Winnipeg Stock Exchange or another stock exchange that, as determined by The Manitoba Securities Commission, was then operating in Manitoba,
(f) the class was listed and posted for trading before July 2008 on The Winnipeg Stock Exchange or another stock exchange that, as determined by The Manitoba Securities Commission, was operating in Manitoba at the time of the listing,
(g) every share of the class was issued for consideration that consisted only of money,
(h) the issuer of the share received written confirmation from the minister that the issuance of the share as an eligible share would not cause the total of the creditable amounts for shares issued in the year to exceed $20,000,000.,
(i) the issuance of the share as an eligible share would not cause the total of the eligible shares amounts for the corporation and all affiliates of the corporation to exceed $5,000,000., and
(j) the share is a common share as defined in the regulations,
and includes a successor share as defined in the regulations; (« action admissible »)
"eligible shares amount" of a corporation at any time means the total of all amounts each of which is the creditable amount at that time in respect of a share issued before that time by the corporation or a predecessor of the corporation; (« montant des actions admissibles »)
"investment dealer" means a person registered as an investment dealer under The Securities Act; (« courtier en valeurs mobilières »)
"minister" means the minister appointed by the Lieutenant Governor in Council to administer The Labour-Sponsored Venture Capital Corporations Act; (« ministre »)
"qualifying trust" in relation to an individual means a trust governed by
(a) a registered retirement savings plan or registered retirement income fund of the individual, unless it is a spousal plan, or
(b) a spousal plan in relation to the individual. (« fiducie admissible »)
The minister may delegate to one or more persons the authority to exercise any power or the requirement to perform any duty or function assigned to the minister by this section or the regulations made under this section.
Subject to subsection (7), a taxpayer's equity tax credit for a taxation year is the total of all amounts each of which is an amount determined for a day in the year as the lesser of
(a) $1,500. divided by the number of days in the year; and
(b) the total of all amounts each of which is an amount determined by the following formula in respect of a share that is owned at the end of the day by the taxpayer or a qualifying trust for the taxpayer:
.05 × A/B
In this formula,
A
is
(i) if at the end of the day the taxpayer is an eligible investor in relation to the share, the creditable amount in respect of the share at that time, and
(ii) in any other case, nil; and
B
is the number of days in the year.
Every corporation shall, for each calendar year in which any of its issued shares are eligible shares, submit to the minister, in accordance with the regulations, a report respecting the corporation and each class of shares of its capital stock that were eligible shares at any time in that year.
Information for investment dealers
For each year in respect of which information is provided under subsection (4) to the minister, the minister shall, in accordance with any applicable regulations,
(a) prepare a report listing all classes of shares that the minister is satisfied were eligible shares in the year and, if they were eligible shares for only part of the year, specifying the period or periods in the year that they were eligible shares; and
(b) send a copy of the report to each investment dealer.
A person who at any time in a calendar year holds, as investment dealer, an eligible share for an eligible investor or for a qualifying trust in relation to an eligible investor shall complete and send to the eligible investor and file with the minister and with the Minister of National Revenue, in accordance with the regulations, a return of information setting out
(a) the name of the issuer of the share and the class of shares to which it belongs;
(b) the eligible investor's total tax credit determined under clause (3)(b) in respect of the shares of that class for the period or periods in the year during which they were owned by the eligible investor or qualifying trust through the investment dealer; and
(c) any additional prescribed information.
A taxpayer is not entitled to a credit under this section unless the amount claimed is proven by the taxpayer filing with the Minister of National Revenue a return of information issued under subsection (6).
The Lieutenant Governor in Council may make regulations
(a) defining any term used in this section but not defined in this Act;
(b) restricting or enlarging, for the purpose of this section, the meaning of any term used in this section;
(c) prescribing any matter required or authorized by this section to be prescribed by regulation;
(d) respecting the determination of the creditable amount in respect of a share;
(e) respecting reports referred to in subsections (4) and (5);
(f) respecting returns of information to be issued under subsection (6), including information to be included in those returns of information;
(g) respecting the maintenance of books and records, and the provision of or access to information, for the purpose of verifying the validity of any claim for a tax credit under this section;
(h) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable to carry out the purpose of this section.
The program of providing tax credits under this section in respect of the acquisition and ownership of eligible shares is deemed, for the purposes of the federal Act and the federal regulations, to be a stock savings plan, and an eligible share, while it is held by a person who by holding the share is entitled to a tax credit, is deemed to be held in the stock savings plan.
S.M. 1999, c. 3, s. 10; S.M. 2000, c. 5, s. 4; S.M. 2001, c. 41, s. 29; S.M. 2002, c. 19, s. 36; S.M. 2005, c. 40, s. 40.
MINERAL EXPLORATION TAX CREDIT
"Flow-through mining expenditure" defined
In this section, "flow-through mining expenditure" of an individual for a taxation year means the portion of the individual's flow-through mining expenditure, as defined in subsection 127(9) of the federal Act, for the year that
(a) was renounced to the individual, or to a partnership of which the individual is a member, in respect of a share acquired under an agreement made after April 22, 2002; and
(b) is directly attributable to expenditures that
(i) were incurred after April 22, 2002 for exploration in Manitoba for a mineral resource in Manitoba,
(ii) are for goods or services, or both goods and services, most of which, if they were available in Manitoba, were provided in Manitoba,
(iii) have been approved by the minister responsible for The Mines and Minerals Act, or a person authorized by the minister for the purpose, as expenditures that qualify for a mineral exploration tax credit, and
(iv) are not expenditures in relation to which a tax credit under this section may be claimed by another person.
Mineral exploration tax credit
An individual's mineral exploration tax credit for a taxation year after 2001 is the lesser of the following amounts:
(a) the amount that would be determined under rule 7 of subsection 4(1) if the rule were read without reference to clauses (e) and (f); and
(b) 10% of the individual's flow-through mining expenditure for the year.
Unused credit from other years
An individual's unused mineral exploration tax credit from any of the three immediately following taxation years or any of the 10 immediately preceding taxation years after 2001 is such amount as the individual claims, not exceeding the amount determined by the following formula:
A − B − C
In this formula,
A
is the amount determined under clause (2)(b) for that following or preceding year;
B
is the amount determined under clause (2)(a) for that following or preceding year; and
C
is the total of all amounts claimed under this subsection in respect of that following or preceding year in computing the individual's tax payable under this Act for other years.
An individual is not entitled to a mineral exploration tax credit for a taxation year unless the amount claimed is proven by filing with the minister
(a) an information return issued by the corporation that renounced the flow-through mining expenditures to which the credit is attributable; and
(b) if the expenditures were renounced to a partnership of which the individual is a member, an information return issued by the partnership.
The information returns must include prescribed information and be in a form approved by the minister.
A corporation or partnership that issues an information return under subsection (4) for a taxation year must provide to the minister responsible for The Mines and Minerals Act, within 90 days after the end of the year and in a form approved by that minister, a summary of the information provided in those returns, together with any other information that minister requires
(a) to determine whether the expenditures renounced by the corporation are flow-through mining expenditures; or
(b) to administer mineral exploration tax credits and evaluate their effectiveness.
The Lieutenant Governor in Council may make regulations
(a) respecting the acceptance of expenditures for the purposes of the mineral exploration tax credit;
(b) respecting returns of information under this section and the information to be included in those returns;
(c) respecting the maintenance of books and records, and the provision of information or access to information, for the purpose of verifying the validity of a claim for a mineral exploration tax credit;
(d) respecting any matter the Lieutenant Governor in Council considers necessary or advisable to carry out the purpose of this section.
COMMUNITY ENTERPRISE DEVELOPMENT TAX CREDIT
In this section and sections 11.9 to 11.12,
"CED tax credit" of an individual for a taxation year means the individual's community enterprise development tax credit determined under subsection (2) for the year; (« crédit d'impôt pour l'expansion des entreprises dans les collectivités »)
"CED tax credit receipt" means a receipt, in a form authorized by the responsible minister, that contains prescribed information concerning an eligible investment issued to an individual or a qualifying trust for an individual; (« reçu relatif au crédit d'impôt pour l'expansion des entreprises dans les collectivités »)
"eligible investment" means an eligible investment as defined in the regulations; (« placement admissible »)
"individual" does not include
(a) a trust, or
(b) an individual acting in his or her capacity as an investment dealer under The Securities Act; (« particulier »)
"issuer" means a person, partnership or trust that issues an eligible investment to an individual or to a qualifying trust for an individual; (« émetteur »)
"qualifying trust" in relation to an individual means a trust governed by
(a) a registered retirement savings plan or registered retirement income fund of the individual, unless it is a spousal plan, or
(b) a spousal plan in relation to the individual; (« fiducie admissible »)
"responsible minister" means the minister appointed by the Lieutenant Governor in Council to administer sections 11.8 to 11.12. (« ministre responsable »)
An individual's community enterprise development tax credit for a taxation year ending after 2002 is the lesser of $9,000. and the total of the following amounts:
(a) the lesser of $9,000. and 30% of all amounts each of which is the cost to the individual, or to a qualifying trust for the individual, of an eligible investment acquired in the year and after April 22, 2003, but before 2012, by the individual or the qualifying trust;
(b) the individual's unused CED tax credit for the immediately preceding 10 taxation years; and
(c) the individual's unused CED tax credit for the immediately following three taxation years.
For the purpose of subsection (2),
(a) if the individual or qualifying trust irrevocably subscribed and paid for an eligible investment before acquiring it, the acquisition of it is deemed to have occurred when it was irrevocably subscribed and paid for;
(b) the individual's unused CED tax credit for the immediately preceding 10 taxation years is the amount, if any, by which
(i) the total of all amounts each of which is the amount determined under clause (2)(a) for one of those preceding years,
exceeds
(ii) the total of all amounts each of which is the amount that would be determined under Rule 7 of subsection 4(1) for one of those preceding years if the individual's CED tax credit for that preceding year were nil; and
(c) the individual's unused CED tax credit for the immediately following three taxation years is the amount, if any, by which
(i) the total of the amounts each of which is the amount determined under clause (2)(a) for one of those following years,
exceeds
(ii) the total of all amounts each of which is the amount that would be determined under Rule 7 of subsection 4(1) for one of those following years if the individual's CED tax credit for that following year were nil.
The issuer of an eligible investment to an individual or to a qualifying trust for an individual must provide a CED tax credit receipt to the individual no later than the 60th day after the end of the year in which the investment was acquired by the individual or trust.
An individual is not entitled to a credit under this section unless the amount for which the credit is claimed is proven by filing a CED tax credit receipt with the Minister of National Revenue.
S.M. 2003, c. 4, s. 52; S.M. 2004, c. 43, s. 57; S.M. 2005, c. 40, s. 41; S.M. 2008, c. 3, s. 39.
Use of eligible investment proceeds
The issuer of an eligible investment must use or invest the proceeds of the issuance in accordance with the regulations.
If satisfied that the issuer has not used or invested the proceeds in accordance with the regulations, the responsible minister may, by written order, require the issuer to pay to the Minister of Finance for Manitoba a penalty not exceeding 30% of the proceeds that were not used or invested as required.
An eligible investment may not be transferred except as permitted by the regulations.
Recovery of credit on early redemption
If an eligible investment is redeemed in circumstances described in subsection (2), the person who was the shareholder immediately before the redemption (referred to in this section as the "vendor") must pay a tax equal to the lesser of
(a) the CED tax credit of an individual in respect of the acquisition of the investment; and
(b) the amount that would, but for subsection (4), be payable to the vendor on the redemption.
Subsection (1) applies when an eligible investment in respect of which a CED tax credit receipt was issued is redeemed less than three years after it was acquired, unless
(a) no CED tax credit has been claimed in respect of the eligible investment, and the CED tax credit receipt for the investment has been returned to the issuer; or
(b) the redemption occurs at the written request of the vendor and
(i) the investment devolved on the vendor as a consequence of the death of the individual who held the investment or who was the annuitant under a registered retirement savings plan or registered retirement income fund that held the investment, or
(ii) the corporation is notified in writing that the individual to whom the CED tax credit receipt was issued in respect of the investment became disabled and permanently unfit for work, or terminally ill, after the investment was acquired, and the vendor is
(A) that individual, or his or her current or former spouse or common-law partner, or
(B) a registered retirement savings plan or registered retirement income fund under which the individual, spouse or common-law partner is the annuitant.
Withholding and remittance of tax
Where tax is payable under subsection (1) in respect of the redemption, acquisition or cancellation of an eligible investment by the issuer within three years after it was issued, the issuer must
(a) withhold the amount of the tax from the amount otherwise payable to the vendor;
(b) issue to the vendor a receipt showing the amount of tax withheld;
(c) within 30 days after the transaction, remit the withheld amount to the Minister of Finance for Manitoba on behalf of the vendor; and
(d) submit with the remitted amount a statement, in a form authorized by the responsible minister, containing prescribed information.
An issuer who fails to withhold and remit an amount as required by subsection (3) is liable to pay the amount to the Minister of Finance for Manitoba on behalf of the vendor, and is entitled to recover the amount so paid from the vendor.
For the purpose of this section, an eligible investment is redeemed when it is redeemed, acquired or cancelled by the issuer of the investment or is acquired by a person who does not deal with the issuer at arm's length.
The Lieutenant Governor in Council may make regulations
(a) defining "eligible investment" and any other term used but not defined in sections 11.8 to 11.11;
(b) respecting the use or investment of the proceeds of issuing eligible investments;
(c) establishing recordkeeping and reporting requirements for issuers;
(d) prescribing information to be included on receipts to be issued to investors;
(e) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the proper administration of the CED tax credit.
Administration and enforcement
For the purpose of administering and enforcing sections 11.8 to 11.11, the responsible minister and any person authorized for the purpose by him or her has all the powers conferred by this Act on the Minister of Finance for Manitoba or the Minister of National Revenue in relation to the administration or enforcement of any other provision of this Act.
The responsible minister may delegate to one or more persons employed in the government any power conferred or duty imposed on the responsible minister under this section or sections 11.8 to 11.11, or under the regulations made under this section.
COMMUNITY ENTERPRISE INVESTMENT TAX CREDIT
The following definitions apply in this section and sections 11.14 to 11.17.
"CEI tax credit" of an eligible investor for a taxation year means the investor's community enterprise investment tax credit determined under subsection (3) for the year. (« crédit d'impôt pour placement dans une entreprise communautaire »)
"CEI tax credit receipt" means a receipt, in a form authorized by the responsible minister, that contains prescribed information concerning an eligible investment issued to an eligible investor or to a flow-through entity in which an eligible investor has an interest. (« reçu relatif au crédit d'impôt pour placement dans une entreprise communautaire »)
"eligible investment" means an eligible investment as defined in the regulations. (« placement admissible »)
"eligible investor", in relation to an investment, means
(a) a corporation that
(i) at the time of making the investment, is a taxable Canadian corporation with a permanent establishment in Manitoba,
(ii) is not a prescribed venture capital corporation or prescribed labour-sponsored venture capital corporation under Part LXVII of the federal regulations, and
(iii) in the taxation year in which it makes the investment, paid salary and wages to employees resident in Manitoba totalling not less than 25% of the total salary and wages paid by it in that year; and
(b) an individual other than
(i) a trust, or
(ii) an individual acting in his or her capacity as an investment dealer under The Securities Act. (« investisseur admissible »)
"responsible minister" means the minister appointed by the Lieutenant Governor in Council to administer sections 11.13 to 11.17. (« ministre responsable »)
Deduction from tax otherwise payable
An eligible investor may deduct (under Rule 7 of subsection 4(1), in the case of an individual) from the tax otherwise payable by the investor for a taxation year ending after 2007 the amount of the investor's CEI tax credit for the year.
An eligible investor's community enterprise investment tax credit for a taxation year is the lesser of $45,000. and the total of the following amounts:
(a) the lesser of $135,000. and 30% of all amounts each of which is
(i) the cost to the investor of an eligible investment issued to the investor in the taxation year and before 2011, or
(ii) the investor's share, as determined under the regulations, of the cost to a flow-through investment vehicle of an eligible investment issued to it in the investor's taxation year and before 2011;
(b) the amount, if any, by which
(i) the total of all amounts each of which is the amount determined under clause (a) for any of the 10 immediately preceding taxation years or any of the three immediately following taxation years,
exceeds
(ii) the total of all amounts each of which is,
(A) if the investor is an individual, the amount that would be determined under Rule 7 of subsection 4(1) for any of those preceding or following taxation years if the individual's CEI tax credit for that year were nil, or $45,000., whichever is less, or
(B) if the investor is a corporation, the total of all amounts each of which is the amount that would be the corporation's tax payable for any of those preceding or following taxation years if the corporation's CEI tax credit for that year were nil, or $45,000., whichever is less.
For the purpose of subsection (3),
(a) if the eligible investor irrevocably subscribed and paid for an eligible investment before acquiring it, the acquisition of it is deemed to have occurred when it was irrevocably subscribed and paid for; and
(b) the cost to an individual of an eligible investment that also qualifies as an eligible investment of the individual under section 11.8 is the amount, if any, by which the cost otherwise determined exceeds $30,000.
The issuer of an eligible investment to an eligible investor must provide a CEI tax credit receipt to the investor, and provide a copy of it to the minister, in accordance with the regulations.
An eligible investor is not entitled to a credit under this section unless the amount for which the credit is claimed is proven by filing a CEI tax credit receipt with the Minister of National Revenue.
S.M. 2007, c. 6, s. 44; S.M. 2008, c. 3, s. 40.
Use of eligible investment proceeds
The issuer of an eligible investment must use or invest the proceeds of the issuance in accordance with the regulations.
If satisfied that the issuer has not used or invested the proceeds in accordance with the regulations, the responsible minister may, by written order, require the issuer to pay to the Minister of Finance for Manitoba a penalty not exceeding 30% of the proceeds that were not used or invested as required.
An eligible investment must not be transferred except as permitted by the regulations.
Recovery of credit on early redemption or return of capital
Subject to subsection (2) and the regulations, if, within three years after the day that an eligible investment is issued, the investment is redeemed or an amount is paid to its holder as a return of capital, the person who held the investment immediately before the redemption or payment (referred to in this section as the "holder") must pay a tax equal to the lesser of
(a) 30% of the amount of the consideration for which the investment was issued; and
(b) the amount that would, but for subsection (3), be payable to the holder on the redemption or as a return of capital.
Subsection (1) does not apply
(a) in respect of an investment if no CEI tax credit has been claimed for it and the CEI tax credit receipt for the investment has been returned to the issuer of the investment; or
(b) to a redemption of an investment if it occurs at the written request of the holder and the investment devolved on the holder as a consequence of the death of an individual who held the investment.
Withholding and remittance of tax
If tax is payable under subsection (1) in respect of an eligible investment, the issuer of the investment must
(a) withhold the amount of the tax from the amount otherwise payable to the holder;
(b) issue to the holder a receipt showing the amount of tax withheld;
(c) within 30 days after the transaction, remit the withheld amount to the Minister of Finance for Manitoba on behalf of the holder; and
(d) submit with the remitted amount a statement containing prescribed information.
If the issuer fails to withhold and remit an amount as required by subsection (3), the issuer is liable to pay the amount to the Minister of Finance for Manitoba on behalf of the holder, and is entitled to recover the amount so paid from the holder.
For the purpose of this section,
(a) a share in the capital stock of a corporation is redeemed when it is redeemed, acquired or cancelled by the corporation or is acquired by a person who does not deal with the corporation at arm's length; and
(b) if a share in the capital stock of a corporation is converted into another share in the capital stock of the corporation, the other share is deemed to be the same share as, and to have been issued at the same time as, the original share.
The Lieutenant Governor in Council may make regulations
(a) defining "eligible investment" and any other term used in sections 11.13 to 11.16 but not defined;
(b) respecting the use of the proceeds of issuing eligible investments;
(c) establishing recordkeeping and reporting requirements for issuers of eligible investments;
(d) prescribing information to be included on CEI tax credit receipts;
(e) prescribing circumstances in which eligible investments may be transferred;
(f) imposing a tax or penalty on the issuer of an eligible investment in circumstances where
(i) the issuer fails to comply with any requirement prescribed under this section,
(ii) the issuer allows the investment to be transferred contrary to section 11.15, or
(iii) the investment ceases to be an eligible investment within three years after the day it was issued;
(g) respecting subsection 11.16(1) (recovery of credit), including regulations that
(i) exempt transactions from that subsection, or
(ii) reduce the amount otherwise payable under that subsection;
(h) enabling eligible investors to earn CEI tax credits in respect of an eligible investment acquired by a flow-through investment vehicle, such as a partnership or trust, to which they have contributed the capital required for the investment, including regulations that
(i) establish recordkeeping and reporting requirements for such investment vehicles,
(ii) extend the application of sections 11.15 and 11.16, with necessary changes, to investments in such investment vehicles, and
(iii) impose a tax or penalty on a flow-through investment vehicle or its investors for any failure to comply with section 11.15 or 11.16 or any regulation made under this section;
(i) modifying, extending or limiting the application of sections 11.13 to 11.16 to a corporation and its shareholders in the event of a reorganization, merger or amalgamation or a plan of arrangement under The Corporations Act;
(j) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the proper administration of the CEI tax credit.
Administration and enforcement
For the purpose of administering and enforcing sections 11.13 to 11.16 and the regulations made under this section, the responsible minister has all the powers conferred by this Act on the Minister of Finance for Manitoba or the Minister of National Revenue in relation to the administration or enforcement of any other provision of this Act.
The responsible minister may delegate to one or more persons employed in the government, or to the administrator appointed under section 10.1 of The Labour-Sponsored Venture Capital Corporations Act, any power conferred or duty imposed on the responsible minister under subsection (2) or sections 11.13 to 11.16, or under the regulations made under this section.
Repealed.
FARMER'S AVERAGING PROVISION
Where an individual whose chief source of income has been farming or fishing during a taxation year (in this section referred to as the "year of averaging") has filed an election in accordance with subsection 119(1) of the federal Act for the year of averaging, the tax payable under this Part for the year of averaging is an amount determined by the following rules:
(a) Determine the amount (in this section referred to as the "average tax") for each year in the averaging period (which, in this section, has the meaning given to that expression under section 119 of the federal Act) equal to the tax that would be payable under the federal Act, within the meaning of section 4 of this Act, if the taxable income for the year were the average net income for the year within the meaning of paragraph 119(1)(c) of the federal Act.
(b) Determine the amount (in this section referred to as the "provincial tax") for each year in the averaging period equal to the tax that would be payable under this Part for the year if the tax that would be payable under the federal Act for the year, within the meaning of section 4 of this Act, were the average tax for the year.
(c) Deduct from the aggregate of the provincial taxes as determined under clause (b) for the years in the averaging period the aggregate of the taxes payable under this Part for the preceding years (which, in this section, has the meaning given to that expression under section 119 of the federal Act).
(d) The remainder obtained under clause (c) is the tax payable under this Part for the year of averaging.
Subsection (1) applies only in the case of an individual whose chief source of income throughout the averaging period was from farming or fishing.
Farmer averaging under federal Act
For the purposes of this Act, where the tax payable by an individual under this Part for the year of averaging would, except for subsection (2), be an amount determined under subsection (1), the tax that would have been payable by the individual under the federal Act for the year of averaging, within the meaning of section 4 of this Act, had no election been made by him under section 119 of the federal Act for that year, shall be deemed to be the tax payable under the federal Act by the individual for the year of averaging.
Where this section, except subsection (3) thereof, is applicable to the computation of a taxpayer's tax for a taxation year and the aggregate of the taxes payable under this Part for the preceding years exceeds the aggregate of the provincial taxes as determined under clause (1)(b) for the years in the averaging period, the excess shall be deemed to be an overpayment made when the notice of assessment for the year of averaging was mailed.
Application of Part I in case of averaging
The provisions of this Part relating to the assessment of tax, interest, and penalties apply with such modifications as the circumstances require to an assessment whereby, for the purposes of this section, it is determined by the treasurer that no tax is payable under this Part for the year of averaging or that an overpayment has been made as described in subsection (4).
Where an election for a year of averaging filed under subsection 119(1) of the federal Act has been revoked by the taxpayer in accordance with subsection 119(5) of the federal Act, subsection (1) of this section is not applicable in determining the tax payable under this Part for the year of averaging.
DIVISION IV
RETURNS, ASSESSMENTS AND OBJECTIONS, PAYMENTS AND REFUNDS
RETURNS
Application of federal provisions (returns, estimate of tax, assessment and withholding)
Subsection 70(7) (other than paragraph (b) of that subsection), sections 150, 150.1 and 151 and subsections 152(1), (1.11), (1.12), (2), (3), (3.1) and (4) to (8) and 156.1(4) of the federal Act and, subject to any regulations made under subsection(2), subsections 153(1) to (3) of the federal Act apply for the purposes of this Act.
The Lieutenant Governor in Council may make regulations respecting the determination of amounts to be withheld or deducted under subsection 153(1) of the federal Act as it applies for the purposes of this Act.
S.M. 1989-90, c. 15, s. 18; S.M. 1993, c. 46, s. 43; S.M. 2000, c. 39, s. 41.
Where a collection agreement is in effect, notwithstanding that the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, if the tax payable under Part I of the federal Act by the taxpayer for the year is re-assessed, the treasurer shall reassess or make additional assessments or assess tax, interest or penalties, as the circumstances require.
Repealed, S.M. 2000, c. 39, s. 42.
S.M. 1989-90, c. 15, s. 18; S.M. 1993, c. 46, s. 44; S.M. 2000, c. 39, s. 42.
Repealed.
S.M. 1989-90, c. 15, s. 19.
PAYMENT OF TAX
Instalment payable by farmer or fisher
Subject to section 20, an individual whose chief source of income is farming or fishing shall pay to the treasurer, in respect of each taxation year and on or before December 31 of the year, 2/3 of
(a) the amount estimated by the individual under section 151 of the federal Act, as it applies for the purposes of this Act, to be his or her tax payable under this Act for the year; or
(b) the individual's tax payable under this Act for the immediately preceding year.
Provincial instalment linked to federal instalment
If there is a collection agreement in effect, an individual's payment under subsection (1) for a taxation year must be made on the basis of
(a) clause (1)(a), if the individual's payment for the year under subsection 155(1) of the federal Act is made on the basis of paragraph (a) of that subsection; or
(b) clause (1)(b), if the individual's payment for the year under subsection 155(1) of the federal Act is made on the basis of paragraph (b) of that subsection.
S.M. 1989-90, c. 15, s. 20; S.M. 1993, c. 46, s. 45; S.M. 2000, c. 39, s. 43.
Subject to section 20, an individual to whom section 18 does not apply shall pay to the treasurer, in respect of each taxation year
(a) on or before March 15, June 15, September 15 and December 15 in the year, 1/4 of
(i) the amount estimated by the individual under section 151 of the federal Act, as it applies for the purposes of this Act, to be his or her tax payable under this Act for the year, or
(ii) the individual's tax payable under this Act for the immediately preceding year; or
(b) on or before
(i) March 15 and June 15 in the year, 1/4 of the individual's tax payable under this Act for the second preceding year, and
(ii) September 15 and December 15 in the year, 1/2 of the amount, if any, by which the individual's tax payable for the immediately preceding year exceeds 1/2 of his or her tax payable under this Act for the second preceding year.
Provincial instalments linked to federal instalments
If there is a collection agreement in effect, an individual's payments under subsection (1) for a taxation year must be made on the basis of
(a) subclause (1)(a)(i), if the individual's payments for the year under subsection 156(1) of the federal Act are made on the basis of subparagraph (a)(i) of that subsection; or
(b) subclause (1)(a)(ii), if the individual's payments for the year under subsection 156(1) of the federal Act are made on the basis of subparagraph (a)(ii) of that subsection; or
(c) clause (1)(b), if the individual's payments for the year under subsection 156(1) of the federal Act are made on the basis of paragraph (b) of that subsection.
S.M. 1989-90, c. 15, s. 21; S.M. 1993, c. 46, s. 46; S.M. 2000, c. 39, s. 43.
Where instalments not required
No amount is payable by an individual under section 18 or 19 for a taxation year if he or she is not required to pay an instalment under section 155 or 156 of the federal Act for the year because of subsection 156.1(2) or (3) of that Act.
S.M. 1993, c. 46, s. 47; S.M. 2000, c. 39, s. 43.
Application of federal provision (payments by corporations)
Subsections 157(1), (2), (2.1) and (4) of the federal Act apply for the purposes of this Act.
Payments where collection agreement in effect
Where a collection agreement is in effect, a corporation that pays amounts in respect of a taxation year computed under subparagraph 157(1)(a)(i), (ii) or (iii) of the federal Act and that is required to make payments under subsection 157(1) of the federal Act as it applies for the purposes of this Act shall pay amounts in respect of the year computed under the same subparagraph as it applies for the purposes of this Act.
21(3) to (6) Repealed, S.M. 1989-90, c. 15, s. 22.
S.M. 1989-90, c. 15, s. 22.
Application of federal provisions (returns, payments and interest)
Subsections 70(2) and 104(2), paragraph 104(23)(e), sections 158 to 160, subsections 160.1(1), (1.1), (3) and (4), sections 160.2 and 160.3 and subsections 161(1) to (2.2), (4) to (6), (7), (9) and (11) of the federal Act apply for the purposes of this Act.
S.M. 1989-90, c. 15, s. 23; S.M. 1993, c. 46, s. 48; S.M. 2000, c. 39, s. 44.
Despite subsections 161(4) and (4.01) of the federal Act, in calculating the interest payable by a taxpayer under subsection 161(2) of the federal Act as it applies for the purposes of this Act, the amount of the part or instalment on which interest is payable must be computed with reference to the paragraph of subsection 161(4) or (4.01) of the federal Act that applies in computing the amount of the part or instalment on which interest is payable under that Act.
S.M. 1989-90, c. 15, s. 23; S.M. 2000, c. 39, s. 44.
Repealed.
S.M. 1989-90, c. 15, s. 23.
PENALTIES
Penalty for failure to file return
Subsections 162(1) to (3), (5), (7) and (11) of the federal Act apply for the purposes of this Act.
25(2) and (3) Repealed, S.M. 2000, c. 39, s. 45.
Where a collection agreement is in effect, the minister may refrain from levying or may reduce a penalty provided for in this section if the person who is liable to the penalty is required to pay a penalty under section 162 of the federal Act in respect of the same failure.
S.M. 1989-90, c. 15, s. 24; S.M. 1993, c. 46, s. 49; S.M. 2000, c. 39, s. 45.
For the purposes of this section, "return" means a return under section 150 of the federal Act as it applies for the purposes of this Act and includes a form, certificate, statement, answer or other document that is filed as part of, or with respect to, a return.
Subsection 163(1), the part of subsection 163(2) before paragraph (b), and subsections 163(2.1), (3) and (4) of the federal Act apply for the purposes of this Act.
Repealed, S.M. 2000, c. 39, s. 46.
Where a collection agreement is in effect, the minister may refrain from levying or may reduce a penalty provided for in this section if the person who is liable to the penalty is required to pay a penalty under section 163 of the federal Act in respect of the same failure or the same false statement or omission, as the case may be.
S.M. 1989-90, c. 15, s. 24; S.M. 1993, c. 46, s. 49; S.M. 2000, c. 39, s. 46.
Section 163.1 of the federal Act applies for the purposes of this Act.
S.M. 1989-90, c. 15, s. 24; S.M. 1993, c. 46, s. 49.
Misrepresentation in tax planning arrangements
Section 163.2 of the federal Act applies for the purposes of this Act.
Subsection (1) applies to a misrepresentation made before the day the Act that enacted this section received royal assent only if section 163.2 of the federal Act applies to the misrepresentation for the purposes of that Act.
Repealed.
S.M. 1988-89, c. 13, s. 17; S.M. 1989-90, c. 15, s. 25; S.M. 2000, c. 39, s. 47.
Application of federal provisions (refunds)
Subsections 164(1) to (1.31), (1.5) and (3) to (7) of the federal Act apply for the purposes of this Act.
Application of refund to provincial debt
Instead of making a refund or repayment that might otherwise be made under this Act, the minister may, if the taxpayer is, or is about to become, liable to make any payment to Her Majesty in right of Manitoba or in right of Canada, apply the amount of the refund or repayment to that other liability and notify the taxpayer of that action.
S.M. 1989-90, c. 15, s. 26; S.M. 1993, c. 46, s. 50; S.M. 2000, c. 39, s. 48.
OBJECTIONS TO ASSESSMENTS
Application of federal provisions (objections)
Sections 165, 166.1 and 166.2 of the federal Act apply for the purposes of this Act.
Repealed, S.M. 2000, c. 39, s. 49.
S.M. 1989-90, c. 15, s. 27; S.M. 1993, c. 46, s. 51; S.M. 2000, c. 39, s. 49.
DIVISION V
APPEALS TO THE COURT OF QUEEN'S BENCH
Section 169 of the federal Act applies for the purposes of this Act.
An appeal from an assessment under this Act may be taken in respect of any question relating,
(a) in the case of an individual, to the determination of
(i) his or her residence for the purposes of this Act,
(ii) his or her Manitoba income for the year, or
(iii) his or her tax payable under this Act for a taxation year;
(b) and in the case of a corporation to the determination of
(i) its taxable income earned in the year in Manitoba as defined in subsection 7(5), or
(ii) the amount of tax payable for a taxation year based on the taxable income of the corporation for that year;
but no appeal from an assessment lies in respect of the computation of taxable income.
An appeal to the court shall be instituted by serving upon the treasurer a notice of appeal in duplicate in the prescribed form and by filing a copy thereof in the office of the court in the judicial centre closest to where the taxpayer resides.
A notice of appeal shall be served upon the treasurer by being sent by registered mail addressed to the deputy head.
The taxpayer appealing shall set out in the notice of appeal a statement of the allegations of fact, the statutory provisions and the reasons that he intends to submit in support of his appeal.
The taxpayer appealing shall, upon the filing of the copy of the notice of appeal in the court office, pay to the Registrar or deputy registrar of the court a fee prescribed under The Law Fees and Probate Charge Act.
S.M. 1989-90, c. 15, s. 28; S.M. 1993, c. 46, s. 52; S.M. 1999, c. 11, s. 13; S.M. 2000, c. 39, s. 50.
Service of reply to appeal notice
The treasurer shall, within 60 days from the day the notice of appeal is received, or within such further time as the court may either before or after the expiration of that time allow, serve on the appellant and file in the court a reply to the notice of appeal admitting or denying the facts alleged, and containing a statement of such further allegations of fact and of the statutory provisions and reasons upon which the treasurer intends to rely.
Striking out of notice of appeal
The court may strike out a notice of appeal or any part thereof for failure to comply with subsection 30(5) and may permit an amendment to be made to a notice of appeal or a new notice of appeal to be substituted for the one struck out.
The court may
(a) strike out any part of a reply for failure to comply with this section or permit the amendment of a reply; and
(b) strike out a reply for failure to comply with this section and order a new reply to be filed within a time to be fixed by the order.
Disposal of appeal where notice struck out
Where a notice of appeal is struck out for failure to comply with subsection 30(5) and a new notice of appeal is not filed as and when permitted by the court, the court may dispose of the appeal by dismissing it.
Disposal of appeal where reply struck out
Where a reply is not filed as required by this section or is struck out under this section and a new reply is not filed as ordered by the court within the time ordered, the court may dispose of the appeal ex parte or after a hearing, on the basis that the allegations of fact contained in the notice of appeal are true.
Upon the filing of the material referred to in sections 30 and 31, the matter shall be deemed to be an action in the court and, unless the court otherwise orders, ready for hearing.
Any fact or statutory provision not set out in the notice of appeal or reply may be pleaded, or reference thereto may be made in such manner, and upon such terms, as the court may direct.
32(3) to (4) Repealed, S.M. 1989-90, c. 15, s. 29.
S.M. 1989-90, c. 15, s. 29.
Application of federal provisions (irregularities, extension of time and hearings in camera)
Sections 166, l67, 171 and 179 of the federal Act apply for the purposes of this Act.
S.M. 1989-90, c. 15, s. 30; S.M. 1993, c. 46, s. 53.
Except as provided in the regulations, the practice and procedure of the court and of The Court of Appeal, including the right of appeal and the practice and procedure relating to appeals, apply to every matter deemed to be an action under section 32; and every judgment and order given or made in every such action may be enforced in the same manner, and by the like process, as a judgment or order given or made in an action commenced in the court.
Repealed.
S.M. 1989-90, c. 15, s. 31.
ADMINISTRATION AND ENFORCEMENT
ADMINISTRATION
Application of federal provisions (administration, garnishment and proceedings to collect)
Sections 220, 221.1, 224, 225.1 and 225.2 of the federal Act apply for the purposes of this Act.
Subsection (1) is applicable with respect to amendments and enactments assented to or promulgated after 1989 and is deemed to have come into force on January 1, 1990.
S.M. 1989-90, c. 15, s. 32; S.M. 1993, c. 46, s. 54.
Remission of provincial portion of federal tax remitted
Where, under the Financial Administration Act (Canada), remission is granted of any tax, interest or penalty paid under the federal Act by or for an individual, and where any tax, interest or penalty was paid to that individual under this Act in respect of the same circumstances that gave rise to the remission granted under the Financial Administration Act (Canada), the treasurer may, if he or she considers that the circumstances are sufficiently similar and that a remission of any money paid under this Act should be granted either for the relief of extreme hardship or because the individual received incorrect advice from or inappropriate action was taken by the Canada Customs and Revenue Agency, grant remission of all or any part of any tax, interest or penalty paid under this Act in such circumstances, and may authorize the repayment to the person entitled thereto of any amount remitted by the treasurer in accordance with this section.
S.M. 1997, c. 49, s. 22; S.M. 2000, c. 39, s. 51.
For the purposes of carrying out the provisions of this Act according to their intent, the Lieutenant Governor in Council may make such regulations and orders as are ancillary thereto and are not inconsistent therewith; and every regulation or order made under, and in accordance with the authority granted by, this section has the force of law and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations and orders
(a) prescribing anything that, by this Act, is to be prescribed or is to be determined or regulated by regulation;
(b) providing in any case of doubt the circumstances in which, and the extent to which, the federal regulations apply;
(c) and (d) repealed, S.M. 2000, c. 39, s. 52;
(e) defining words and expressions, not inconsistent with the provisions of this Act, for the proper administration of this Act and the regulations;
(f) prescribing forms for use under this Act;
(g) setting out the time and method of application for refunds;
(h) and (i) repealed, S.M. 2000, c. 39, s. 52.
Application of federal regulations
Except to the extent that they are inconsistent with any regulations made under subsection (1) or are expressed by any regulation made under subsection (1) to be inapplicable, the federal regulations made under subsection 221(1) of the federal Act apply, with such modifications as the circumstances require, for the purposes of this Act with respect to all matters enumerated in that section.
Publication of regulations required
A regulation made under this Act is a regulation to which The Regulations Act applies but, subject to subsection (5), has no effect unless it has been published as required in that Act.
Where a regulation made under the federal Act is applicable, with such modifications as the circumstances require, it has, subject to subsection (5), no effect for the purposes of this Act unless it has been published in the Canada Gazette.
A regulation made under this Act or made under the federal Act and that is applicable, with such modifications as the circumstances require, when published as herein provided shall, if it so provides, be effective with reference to a period before it was published.
ENFORCEMENT
Section 222 of the federal Act applies for the purposes of this Act.
Certification of amount payable
Subsections 223(1) to (4) of the federal Act, other than paragraphs 223(1)(b), (c) and (d), apply for the purposes of this Act with respect to any amount payable by a person under this Act that the Minister of National Revenue may not collect pursuant to a collection agreement.
Where a collection agreement is in effect, subsection (1) does not apply, but the minister may proceed under section 223 of the federal Act for the purpose of collecting any amount payable under this Act by a taxpayer.
S.M. 1989-90, c. 15, s. 33; S.M. 1993, c. 46, s. 55; S.M. 2000, c. 39, s. 53.
Repealed.
S.M. 1989-90, c. 15, s. 34.
Acquisition of taxpayer's interest
Section 224.2 of the federal Act applies for the purposes of this Act.
Payment of money seized from debtor
Section 224.3 of the federal Act applies for the purposes of this Act.
The treasurer may issue a warrant directed to a sheriff, for the amount of the tax, interest, and penalty, or any of them, owing under this Act by a taxpayer, together with interest thereon from the date of the issue of the warrant and the costs, expenses, and poundage of the sheriff, and such warrant shall have the same force and effect and be subject to the same exemption as a writ of fieri facias issued out of the court.
Section 225 of the federal Act applies for the purposes of this Act.
S.M. 1989-90, c. 15, s. 35; S.M. 1993, c. 46, s. 57.
Taxpayer leaving Canada or defaulting
Section 226 of the federal Act applies for the purposes of this Act.
Repealed, S.M. 2000, c. 39, s. 56.
S.M. 1989-90, c. 15, s. 36; S.M. 1993, c. 46, s. 57; S.M. 2000, c. 39, s. 56.
Application of federal provisions (withholding)
Subsections 227(1) to (5.2), (8), (8.2) to (9), (9.2), (9.4), (9.5), (10) and (10.2) to (13) of the federal Act apply for the purposes of this Act.
The minister may assess a person
(a) for an amount that is deducted or withheld by the person under this Act or a regulation or under a provision of the federal Act or the federal regulations that applies for the purposes of this Act; and
(b) for an amount that is payable by the person under subsection 224(4) or (4.1) or section 227.1 of the federal Act, as they apply for the purposes of this Act, or under section 52 of this Act;
and, where the minister sends a notice of assessment to the person, sections 14 and 22 to 34 are applicable with such modifications as the circumstances require.
Application of penalty to amounts over $500
Despite any other provision of this Act, other than subsection (4), and despite any other Act, the penalty for failure to remit an amount required to be remitted by a person on or before the day prescribed in the federal regulations made for the purposes of subsection 153(1) of the federal Act, as the regulations and that subsection apply for the purposes of this Act, shall apply only to the amount by which the total of all amounts so required to be remitted on or before that day exceeds $500.
Limitation on penalty not to apply
Subsection (3) does not apply if the person required to remit an amount has, knowingly or under circumstances that amount to gross negligence,
(a) delayed in remitting the amount; or
(b) remitted an amount less than the amount required to be remitted.
S.M. 1989-90, c. 15, s. 37; S.M. 1993, c. 46, s. 57; S.M. 2000, c. 39, s. 57.
Liability of directors of corporation
Section 227.1 of the federal Act applies for the purposes of this Act.
S.M. 1989-90, c. 15, s. 38; S.M. 1993, c. 46, s. 57.
GENERAL
Every person carrying on business in Manitoba and every person who is required, by or under this Act, to pay or collect taxes or other amounts shall keep records and books of account (including an annual inventory kept in the prescribed manner) at his place of business or residence in Canada or at such other place as may be designated by the treasurer, in such form, and containing such information, as will enable the taxes payable under this Act, or the taxes or other amounts that should have been deducted, withheld, or collected, to be determined.
Application of federal provisions (records)
Subsections 230(2.1) to (8) of the federal Act apply for the purposes of this Act.
48(3) to (7) Repealed, S.M. 1989-90, c. 15, s. 39.
S.M. 1989-90, c. 15, s. 39; S.M. 2000, c. 39, s. 58.
Application of federal provisions (inspections, privilege, information return and corporate execution)
Sections 231 to 231.5, 232, 233 and 236 of the federal Act apply for the purposes of this Act.
Repealed.
S.M. 1989-90, c. 15, s. 41.
Failure to comply with regulations
Every person who fails to comply with a regulation made under paragraph 221(1)(d) or (e) of the federal Act as it applies by virtue of subsection 37(2) of this Act, is liable in respect of each failure to so comply to a penalty of $10. a day for each day of default but not exceeding in all $2,500.
Every person who fails to comply with a regulation made under section 37 or incorporated by reference by virtue of subsection (2) thereof is liable to a penalty of $10. a day for each day of default but not exceeding in all $2,500.
Repealed.
S.M. 1989-90, c. 15, s. 42.
The following definitions apply in this section.
"avoidance transaction" means a transaction
(a) that, but for this section, would result, directly or indirectly, in a tax benefit; or
(b) that is part of a series of transactions, which series, but for this section, would result, directly or indirectly, in a tax benefit;
but does not include a transaction that may reasonably be considered
(c) to have been undertaken or arranged primarily for bona fide purposes other than
(i) to obtain a tax benefit,
(ii) to reduce, avoid or defer a tax, or an amount payable as or in respect of tax, under any other Act of the Legislature or under any Act of Parliament or of any other legislature in Canada,
(iii) to increase a refund of tax, or of an amount in respect of tax, under any Act referred to in subclause (ii), or
(iv) any combination of the purposes mentioned in subclauses (i) to (iii); or
(d) to be a transaction that would not result, directly or indirectly, in
(i) a misuse of the provisions of this Act or the regulations, or
(ii) an abuse having regard to those provisions, other than this section, read as a whole. (« opération d'évitement »)
"tax benefit" means
(a) a reduction, avoidance or deferral of tax or of any other amount payable under this Act; or
(b) an increase in a refund of tax or of any other amount under this Act. (« avantage fiscal »)
"tax consequences" to a person means
(a) the amount of
(i) the person's income, loss or taxable income,
(ii) in the case of an individual, the individual's Manitoba income or the individual's income for the year, as defined in section 1,
(iii) in the case of a corporation, the corporation's taxable income earned in the year in Manitoba, as defined in subsection 7(5),
(iv) the person's taxable income earned in Canada, or
(v) the tax or other amount payable by or refundable to the person under this Act; and
(b) any amount that is relevant for computing an amount referred to in clause (a). (« attribut fiscal »)
"tax notice" means a notice of assessment, reassessment, additional assessment or determination under section 14 or 15 that reflects the application of subsection (2) or (5) in relation to a transaction or series of transactions. (« avis d'imposition »)
"transaction" includes an arrangement or event. (« opération »)
Tax consequences to be determined
If a transaction is an avoidance transaction, the tax consequences to a person must be determined in a manner that is reasonable in the circumstances in order to deny a tax benefit that, but for this section, would result, directly or indirectly, from that transaction or from a series of transactions that includes that transaction.
Additional rules for determining tax consequences
Without limiting subsection (2), in determining the tax consequences under that subsection,
(a) any amount deducted in computing an amount referred to in clause (a) or (b) of the definition of "tax consequences" in subsection (1) may be allowed or disallowed in whole or in part;
(b) any deduction referred to in clause (a) of this subsection or any other amount used in determining an amount payable or refundable under this Act may be allocated to any person;
(c) the nature of any payment or other amount may be recharacterized; and
(d) the tax effects that would otherwise result from the application of other provisions of this Act or the regulations may be ignored.
Request for determination of tax consequences
If a tax notice reflecting the application of subsection (2) to a transaction or series of transactions has been sent to a person, another person may, within 180 days after the date of the mailing of that notice, request in writing that the minister determine or redetermine the tax consequences to that other person that can reasonably be considered to relate to that transaction or series of transactions.
Minister's response to request
Upon receiving a request under subsection (4), the minister must consider the request and determine or redetermine the tax consequences to the person making the request that can reasonably be considered to relate to the transaction or series of transactions to which the request relates.
Method of determining tax consequences
The tax consequences to any person resulting from the application of this section may be determined only through a tax notice.
S.M. 1996, c. 66, s. 12; S.M. 2007, c. 6, s. 45.
Section 246 of the federal Act applies for the purposes of this Act.
In this section, a person's "untaxed income" in relation to a disposition of property is the total of all amounts each of which is the portion of the person's income or taxable income earned in a year in a province, as determined under the federal regulations, that
(a) is attributable to the disposition; and
(b) because of a difference between the transferor's cost or adjusted cost base of the property for federal tax purposes and its cost or adjusted cost base to the transferor under the income tax law of the province, is not included in the person's income for the year under that law.
Where, as part of a series of transactions or events,
(a) a person or partnership (referred to in this section as the "taxpayer") disposes of property to another person or partnership with whom the taxpayer does not deal at arm's length for proceeds of disposition under the federal Act less than the fair market value of the property at the time of the disposition; and
(b) the property or other property
(i) the fair market value of which is derived primarily from the property, or
(ii) that is acquired by any person other than the taxpayer in substitution for the property,
is subsequently disposed of for proceeds of disposition under the federal Act greater than its adjusted cost base under that Act;
any untaxed income arising from the subsequent disposition shall be added to the taxpayer's proceeds of the disposition referred to in clause (a).
Despite any other provision of this Act or the federal Act, where subsection (2) applies to a disposition, all amounts required to be determined under this Act or the federal Act for the purpose of determining the tax payable under this Act shall be determined as if the proceeds of disposition were equal to the proceeds of disposition determined under that subsection.
This section applies to dispositions that occur after 1991.
Repealed, S.M. 2000, c. 39, s. 59.
S.M. 1996, c. 66, s. 13; S.M. 2000, c. 39, s. 59.
OFFENCES AND PENALTIES
A person who fails
(a) to file a return as required under this Act or a regulation or under a provision of the federal Act or the federal regulations as the provision applies for the purposes of this Act; or
(b) to comply with subsection 153(1), 227(5), 230(3), 230(4) or 230(6) or any of sections 231 to 231.5 and 232 of the federal Act, as any of these provisions applies for the purposes of this Act;
is guilty of an offence and, in addition to a penalty that is otherwise provided, is liable
(c) to a fine of not less than $1000. and not more than $25,000.; or
(d) to both the fine described in clause (c) and imprisonment for a term not exceeding 12 months.
Subsection 238(2) of the federal Act applies for the purposes of this Act.
Where a person is convicted under this section for failure to comply with a provision of this Act or a regulation or a provision of the federal Act or of the federal regulations that applies for the purposes of this Act, the person is not liable to a penalty under any of subsections 162(1) to (3), (5) and (7) and subsections 227(8), (8.5), (9) and (9.5) of the federal Act as these subsections apply for the purposes of this Act or under section 52 for the same failure unless the person is assessed for the penalty or the penalty is demanded from the person before the information or complaint giving rise to the conviction is laid or made.
S.M. 1989-90, c. 15, s. 43; S.M. 1993, c. 46, s. 58; S.M. 2000, c. 39, s. 60.
Penalty for evading the Act or regulations
Subsections 239(1) and (1.1) of the federal Act apply with necessary modifications for the purposes of this Act.
Every person who, by doing or conspiring with any person to do any of the things referred to in paragraphs 239(1.1)(a) to (d) of the federal Act, enables any other person to claim or obtain a refund or credit under this Act to which the other person is not entitled or in an amount that is greater than the amount to which the other person is entitled, is guilty of an offence and, in addition to any other penalty otherwise provided, is liable on summary conviction to
(a) a fine of not less than 50% and not more than 200% of the amount by which the amount of the refund or credit obtained or claimed exceeds the amount, if any, of the refund or credit to which the other person is entitled; or
(b) both the fine described in clause (a) and imprisonment for a term not exceeding two years.
Offences by officers and directors
Except as otherwise provided in this Act, if a corporation commits an offence under this Act, a director or officer of the corporation who authorized, permitted or acquiesced in the commission of the offence is also guilty of an offence and is liable on summary conviction, whether or not the corporation has been prosecuted or convicted, to any penalty to which an individual committing the offence committed by the corporation would be liable.
S.M. 1989-90, c. 15, s. 44; S.M. 1993, c. 46, s. 59; S.M. 1999, c. 3, s. 11.
Discretion of minister as to proceedings
Where a collection agreement is entered into and proceedings under section 238 or 239 of the federal Act are taken against any person, the minister may take or refrain from any action against that person contemplated by section 54 of this Act or subsection 239(1) or (1.1) of the federal Act as it applies for the purposes of this Act.
Revealing confidential information
Where a person, while employed in the administration or enforcement of this Act,
(a) is in possession of information that is obtained by or on behalf of the minister for the purposes of this Act and knowingly communicates the information or knowingly allows the information to be communicated to another person who is not legally entitled to receive the information;
(b) is in possession of or has custody or control of a book, record, writing, return or other document that is obtained by or on behalf of the minister for the purposes of this Act and knowingly allows another person, who is not legally so entitled, to inspect or to have access to the book, record, writing, return or other document; or
(c) is in possession of information that is obtained by or on behalf of the minister for the purposes of this Act and knowingly uses the information other than in the course of the duties of the person in connection with the administration or enforcement of this Act;
the person is guilty of an offence and is liable to a fine not exceeding $5,000. or to imprisonment for a term not exceeding 12 months or to both.
Subsection (1) does not apply to the communication of information between
(a) the Minister of Finance for Manitoba and the Minister of National Revenue; or
(b) the Minister of Finance for Manitoba or the Minister of National Revenue, acting on behalf of Manitoba, and the Provincial Treasurer, the Provincial Secretary-Treasurer or the Minister of Finance of the government of
(i) an agreeing province, or
(ii) a non-agreeing province to which an adjustment payment may be made under subsection 65(2).
S.M. 1989-90, c. 15, s. 45; S.M. 2000, c. 39, s. 62.
Requirement to provide specified information
The Minister of Finance for Manitoba may require a department or agency of the government that keeps specified information about persons to provide a copy of any or all of that information to the minister.
Information obtained under subsection (1) may be used only for the purposes of this Act and, subject to the provisions of the federal Act, for any related purpose of that Act.
"Specified information" defined
In this section, "specified information" about a person means
(a) the person's name and any identifying number or symbol;
(b) the person's residential street address and postal code;
(c) the person's date of birth or death;
(d) the date of the person's registration or deregistration with a government department or agency;
(e) a date that the person used the services of a government department or agency;
(f) any information relevant to the person's eligibility for a credit under section 4.6 or 5; and
(g) information referred to in clauses (a) to (f) about a spouse, common-law partner or dependant of the person.
"Specified information" exclusions
Despite subsection (3), "specified information" about a person does not include a person's PHIN, as defined in The Personal Health Information Act, or any information about the health, disability or medical condition or treatment of any person.
Liability of officers or agents of corporation
Section 242 of the federal Act applies for the purposes of this Act.
Section 243 of the federal Act applies for the purposes of this Act.
PROCEDURE AND EVIDENCE
Application of federal provisions (information and evidence)
Subsections 244(1) to (5), (7) to (11), (13) to (17) and (20) to (22) of the federal Act apply for the purposes of this Act.
Repealed, S.M. 2000, c. 39, s. 63.
60(3) to (10) Repealed, S.M. 1993, c. 46, s. 61.
Judicial notice of order and agreements
Judicial notice shall be taken of
(a) all orders or regulations made under this Act; and
(b) a collection agreement entered into under this Act or any agreement for the collection by Canada of the tax imposed under the income tax statute of an agreeing province;
without such orders, regulations, or agreements being specially pleaded or proven.
60(12) to (15) Repealed, S.M. 1993, c. 46, s. 61.
Proof of collection agreements
A document purporting to be a collection agreement entered into under this Act or an agreement with Canada for the collection of tax imposed under the income tax statute of an agreeing province that is
(a) published in the Canada Gazette; or
(b) certified as such by or on behalf of
(i) the treasurer, or
(ii) the Provincial Treasurer, the Provincial Secretary-Treasurer or the Minister of Finance of the appropriate agreeing province;
shall be received as prima facie proof of the contents thereof.
Repealed, S.M. 1993, c. 46, s. 61.
Certificate of treasurer as proof
A certificate of the treasurer as to
(a) the taxable income of a taxpayer for a taxation year; or
(b) an individual's income for the year;
is, in the absence of evidence to the contrary, proof that the taxable income for the taxation year or the income for the year is the amount stated in the certificate.
Documents issued or signed by federal officials
Where a collection agreement is entered into any document or certificate that is executed or issued, or any affidavit that is sworn, by the minister, the deputy head or an employee of the Canada Customs and Revenue Agency on behalf of or in the place of the Minister of Finance or Deputy Minister of Finance for Manitoba or an official of the Manitoba Department of Finance is deemed, for the purposes of this Act, to be executed, issued or sworn by the Minister of Finance or Deputy Minister of Finance for Manitoba or an official of the Manitoba Department of Finance.
S.M. 1989-90, c. 15, s. 46; S.M. 1993, c. 46, s. 61; S.M. 2000, c. 39, s. 63.
COLLECTION OF TAX
COLLECTION AGREEMENT
Making of collection agreement
The Minister of Finance for Manitoba, with the approval of the Lieutenant Governor in Council, may, on behalf of the Government of Manitoba, enter into a collection agreement with the Government of Canada under which the Government of Canada will collect taxes payable under this Act on behalf of the Government of Manitoba and will make payments to the Government of Manitoba in respect of the taxes so collected, in accordance with such terms and conditions as are prescribed in the collection agreement.
Amendment of collection agreement
The Minister of Finance for Manitoba, with the approval of the Lieutenant Governor in Council, may, on behalf of the Government of Manitoba, enter into an agreement amending the terms and conditions of a collection agreement entered into under subsection (1).
Exercise of powers by minister
When a collection agreement is in effect, the minister may employ all the powers and shall perform all the duties that the Minister of Finance for Manitoba would, if no collection agreement were in effect, have under this Act, other than this Part, including the discretion to refuse to permit the production in judicial or other proceedings in Manitoba of any document that, in the opinion of the minister, it is not in the public interest to produce.
Where a collection agreement is entered into, the deputy head may
(a) employ all the powers and perform the duties of the minister and exercise any discretion that the minister has, under subsection (3) or otherwise under this Act; and
(b) designate officers of the Canada Customs and Revenue Agency to carry out functions, duties and powers that are similar to those carried out by them under the federal Act on behalf of the deputy head.
For greater certainty, if this Act is or has been amended, whether before or after this section comes into force, such that a collection agreement is no longer consistent with this Act, then despite the inconsistency,
(a) the collection agreement remains in effect for the purpose of applying the provisions of this Act that apply when a collection agreement is in effect; and
(b) the Government of Canada has the authority to collect on behalf of the Government of Manitoba all taxes payable under this Act;
until the collection agreement is terminated in accordance with its terms.
Minister of Finance may exercise powers of minister
If while a collection agreement is in effect the minister or deputy head does not, for any reason, employ all the powers or perform all the duties that the Minister of Finance for Manitoba would have under this Act if no collection agreement were in effect, the Minister of Finance or Deputy Minister of Finance for Manitoba, or persons designated by the Minister of Finance for Manitoba for the purpose, may employ those powers or perform those duties.
S.M. 2000, c. 39, s. 64; S.M. 2001, c. 41, s. 31.
PAYMENTS ON ACCOUNT
Application of payments by minister
A collection agreement may provide that where any payment is received by the treasurer on account of tax payable by a taxpayer for a taxation year under this Act, the federal Act or an income tax statute of another agreeing province, or under any two or more such Acts or statutes, the payment so received may be applied by the minister towards the tax payable by the taxpayer under any such Act or statute in such manner as may be specified in the agreement, notwithstanding that the taxpayer has directed that the payment be applied in any other manner or made no direction as to its application.
Any payment or part thereof applied by the minister in accordance with a collection agreement towards the tax payable by a taxpayer for a taxation year under this Act
(a) relieves the taxpayer of liability to pay that tax to the extent of the payment or part thereof so applied; and
(b) shall be deemed to have been applied in accordance with a direction made by the taxpayer.
DEDUCTIONS AT SOURCE
Where a collection agreement is in effect and an amount is remitted to the minister under subsection 153(1) of the federal Act, as it applies for the purposes of this Act, on account of the tax of an individual who is resident on the last day of the taxation year in another agreeing province,
(a) no action lies for recovery of the amount by the individual; and
(b) the amount may not be applied in discharge of a liability of the individual under this Act.
S.M. 1989-90, c. 15, s. 47.
Where a collection agreement is entered into, an individual resident in Manitoba on the last day of the taxation year is not required to remit any amount on account of tax payable by him under this Act for the taxation year to the extent of the amount deducted or withheld on account of his tax for that year under the income tax statute of another agreeing province.
Where the total amount deducted or withheld on account of tax payable under this Act and under the income tax statute of another agreeing province by an individual resident in Manitoba on the last day of the taxation year to whom subsection (1) applies exceeds the tax payable by him under this Act for that year, the provisions of the federal Act that apply for the purposes of this Act because of section 28.1 apply in respect of that individual as though the excess were an overpayment under this Act.
NON-AGREEING PROVINCES
In this section,
"adjusting payment" means a payment, calculated in accordance with this section, made by or on the direction of the Government of Manitoba to a non-agreeing province; (« paiement de rajustement »)
"amount deducted or withheld" does not include any refund made in respect of that amount; (« montant déduit ou retenu »)
"non-agreeing province" means a province that is not an agreeing province. (« province non participante »)
Authority to make adjusting payment
Where, in respect of a taxation year a non-agreeing province is authorized to make a payment to The Government of Manitoba that, in the opinion of the Minister of Finance for Manitoba, corresponds to an adjusting payment, the Lieutenant Governor in Council may authorize the Minister of Finance for Manitoba to make an adjusting payment to that non-agreeing province and enter into any agreement that may be necessary to carry out the purposes of this section.
Adjusting payment to be made by Canada
Where a collection agreement is entered into, the adjusting payment that may be made pursuant to subsection (2) may be made by the Government of Canada where it has agreed to act on the direction of The Government of Manitoba as communicated by the treasurer to the minister.
Calculation of adjusting payment
The adjusting payment to be made under this section shall be in an amount that is equal to the aggregate of the amounts deducted or withheld under subsection 153(1) of the federal Act, as it applies for the purposes of this Act, in respect of the tax payable under this Act for a taxation year by individuals who
(a) file returns under the federal Act;
(b) are taxable thereunder in respect of that year; and
(c) are resident on the last day of that year in the non-agreeing province to which the adjusting payment is to be made.
No recovery of amounts deducted
Where, for a taxation year, an adjusting payment to a non-agreeing province is made under this section in respect of an individual who
(a) is taxable under the federal Act for the taxation year; and
(b) is resident in the non-agreeing province on the last day of the taxation year;
and an amount is deducted or withheld under subsection 153(1) of the federal Act, as it applies for the purposes of this Act, on account of tax payable under this Act by the individual for the taxation year, no action lies for recovery of the amount by the individual and the amount may not be applied in discharge of a liability of the individual under this Act.
If an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, an individual who is resident in Manitoba on the last day of the year is not required to remit any amount on account of tax payable under this Act by the individual for the year to the extent of the amount deducted or withheld on account of income tax payable, or that might have been payable, by the individual for the year under the law of that non-agreeing province.
Where an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, and the total amount deducted or withheld on account of tax payable under this Act and on account of the income tax payable under the law of the non-agreeing province by an individual who is resident in Manitoba on the last day of the taxation year to whom subsection (6) applies exceeds the tax payable by him under this Act for that year, the provisions of the federal Act that apply for the purposes of this Act because of section 28.1 apply in respect of such individual as though the excess were an overpayment under this Act.
Where a collection agreement is entered into and the Government of Canada has agreed in respect of a taxation year to carry out the direction of The Government of Manitoba and to make an adjusting payment on behalf of The Government of Manitoba, the adjusting payment
(a) shall be made out of any moneys that have been collected on account of tax under this Act for any taxation year; and
(b) shall be the amount calculated by the minister to be the amount required to be paid under subsection (4);
and the payment thereof discharges any obligation the Government of Canada may have with respect to the payment to The Government of Manitoba of any amount deducted or withheld under subsection 153(1) of the federal Act, as it applies for the purposes of this Act, to which subsection (5) applies.
S.M. 1989-90, c. 15, s. 48; S.M. 2000, c. 39, s. 67.
RECIPROCAL ENFORCEMENT OF JUDGMENTS
Enforcement in other provinces
A judgment of a superior court of an agreeing province under that province's income tax statute, including any certificate registered in that superior court in a manner similar to that provided in subsection 39(2), may be enforced in the manner provided in The Reciprocal Enforcement of Judgments Act and, subject to subsection (2), shall be deemed to be a judgment to which that Act applies.
For the purposes of subsection (1), where a judgment of a superior court of an agreeing province is sought to be registered, under The Reciprocal Enforcement of Judgments Act, the judgment shall be registered, notwithstanding that it is established that one or more of the provisions of subsection 3(6) of that Act apply.
For for purposes of subsection (1), the Lieutenant Governor in Council may make regulations to enable the enforcement in Manitoba of judgments in respect of taxes in agreeing provinces.
TAX REBATE DISCOUNTING
In this Part,
"deputy head" means the deputy minister of the department charged with the administration of this Part; (« administrateur général »)
"discounter" means any person or any servant or agent of the person who, acting in the course of his business and for profit or gain acquires from a taxpayer, the taxpayer's right to any refund of tax; (« escompteur »)
"minimum consideration" in relation to a refund of tax, means an amount equal to
(a) where the refund of tax is equal to or less than $300., 85% of the refund of tax, or
(b) where the refund of tax is greater than $300., $255. plus 95% of the amount by which the refund of tax is greater than $300.; (« contrepartie minimum »)
"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Part; (« ministre »)
"refund of tax" means the amount that a taxpayer is entitled to receive
(a) as an overpayment of tax paid under this Act or the federal Act or collected pursuant to an agreement entered into under section 7 of the Federal-Provincial Fiscal Arrangements Act (Canada); or
(b) a payment to an individual by virtue of an agreement referred to in clause (a) that is other than a refund of an overpayment of tax paid or collected, or
(c) an overpayment of unemployment insurance premiums paid under the Employment Insurance Act (Canada), or
(d) an overpayment of contributions paid under the Canada Pension Plan,
and any interest paid on any of the overpayments or payments; (« remboursement d'impôt »)
"taxpayer" means any person who is entitled to a refund of tax. (« contribuable »)
All manners of acquiring right included
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 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.
No person shall carry on business as a discounter unless he first registers with the minister.
A person may register as a discounter by filing with the minister an application in the prescribed form together with such other information as the minister may require to ensure that the person will comply with this Part and by paying the prescribed fee.
S.M. 1988-89, c. 19, s. 22.
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.
A discounter shall not deduct from the consideration mentioned under subsection (1) any amount as a fee or charge for the services rendered by the discounter in preparing any return or determining the amount of refund of tax.
Consideration to be in cash or by cheque
No discounter shall acquire from a taxpayer a right to a refund of tax unless the discounter pays the whole of the consideration for the acquisition at the time of the acquisition, in cash or by cheque that is payable immediately.
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 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 on behalf of the taxpayer under subsection (5), a dated and signed receipt or cancelled cheque in favour of the taxpayer, or a receipt from Revenue Canada setting out the taxpayer's name and the amount remitted on his behalf by the discounter is prima facie proof of payment.
S.M. 1988-89, c. 11, s. 27; S.M. 1993, c. 46, s. 62.
Every discounter shall, at or before acquiring a right to a refund of tax from a taxpayer
(a) provide the taxpayer with a statement in the form and containing the information set out in or a copy of Schedule I to the Tax Rebate Discounting Regulations (Canada);
(b) obtain from the taxpayer a mailing address for the taxpayer and upon receipt of the actual amount of the refund of tax or any document indicating the actual amount of the refund, provide the taxpayer with a statement in the form and containing the information set out in or a copy of Schedule II to the Tax Rebate Discounting Regulations (Canada); and
(c) provide the taxpayer with a copy of the income tax return together with copies of all relevant documents indicating the income of the taxpayer used in completing the return.
Every discounter shall keep and maintain at his place of business in Manitoba
(a) copies of Schedules I and II to the Tax Rebate Discounting Regulations (Canada), furnished to taxpayers; and
(b) copies of
(i) documents referred to in clause (1)(c),
(ii) taxpayers' income tax returns prepared by him or his employee or agent for and on behalf of those taxpayers,
(iii) cheques or other documentary evidence of the actual amount of refund of tax, and
(iv) all other documents and records relevant to the nature and character of his business;
for at least five years.
The minister may, in writing, designate such persons including peace officers and officers of the minister's department as investigators for the purpose of administering and carrying out the objects and purposes of this Part.
A person designated as an investigator under subsection (1) may, at any time during regular business hours, enter any premises in which a discounter carries on business and inspect and examine records and documents relating to the business of the discounter and may make copies thereof or take excerpts therefrom.
Discounter to produce documents
Where a person enters the business premises of a discounter under subsection (2) and requests the discounter to produce documents for inspection and examination, the discounter shall comply with the request and shall not in any manner impede or attempt to impede the person in the performance of his duties.
Powers of investigator under Evidence Act
Subject to subsection (5), for the purpose of exercising his powers and carrying out his duties under this Part, an investigator has all the like protection and powers, and is subject to like requirements as are conferred on, or required of a commissioner under Part V of The Manitoba Evidence Act.
Section 86 of The Manitoba Evidence Act does not apply to an investigator under this Part.
Every discounter shall submit to the minister such returns, copies of documents and information as may be required by the regulations made under this Part.
The Lieutenant Governor in Council may make regulations
(a) requiring discounters to submit such returns, forms and information for the purpose of administering and enforcing the provisions of this Part;
(b) prescribing forms for use under this Part and the information to be shown thereon;
(c) prescribing the procedure for registration of discounters and the fee to be charged for each registration;
(d) prescribing the powers and duties of investigators, other than those set out in subsection 72(2); and
(e) respecting such other matters as the Lieutenant Governor in Council deems necessary and advisable to carry out the provisions of this Part.
Any person who violates or fails or refuses to comply with any of the provisions or requirements of this Part or regulations thereunder is guilty of an offence and is liable for a first offence to a fine of not less than $1,000. or more than $10,000. and for a second or subsequent offence, he is liable to a fine of not less than $5,000. or more than $25,000.
Offences by officers and directors
Where a corporation is guilty of an offence under this Part, any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is party to and guilty of the offence and liable to the penalties prescribed under subsection (1).
In addition to the penalties set out in subsections (1) and (2), where a discounter is guilty of an offence under this Part or under the Tax Rebate Discounting Act (Canada), the minister may revoke the registration of the discounter and no part of the registration fee shall be refunded or refundable to the discounter.
Where a discounter is convicted of an offence under this Part, the judge or justice making the conviction, in addition to any fine which the judge or justice may impose, shall order the discounter to pay to the taxpayer any amount that the judge or justice finds is owing to the taxpayer by the discounter.
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.
A discounter whose registration 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.
S.M. 1988-89, c. 19, s. 23.