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The Corporation Capital Tax Act
This is an unofficial archived version of The Corporation Capital Tax Act
as enacted by SM 1988-89, c. 1 on October 19, 1988.

R.S.M. 1988, c. C226

The Corporation Capital Tax Act

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

Definitions.

1

In this Act

"amount" means

(a) money expressed in terms of the amount of money, or

(b) rights or things expressed in terms of the value in money of the rights or things; ("montant")

"amount taxable" means

(a) in the case of a corporation resident in Canada the taxable paid up capital of the corporation, and

(b) in the case of a corporation not resident in Canada the taxable paid up capital of the corporation employed in Canada; ("montant imposable")

"assessment" includes a re-assessment; ("cotisation")

"bank" means a bank to which the Bank Act (Canada) or the Quebec Savings Banks Act applies; ("banque")

"business" means an undertaking of any kind whatsoever, and, without restricting the generality of the foregoing, includes a profession, calling, trade, manufacture, or an adventure or concern in the nature of trade; ("entreprise")

"corporation" means any corporation however or wherever incorporated and, where any corporation or the whole or any part of the property thereof is placed in the hands or under the control of an agent, assignee, trustee, liquidator, receiver, or other official, includes such agent, assignee, trustee, liquidator, receiver, or other official, and includes an insurance corporation, with or without share capital and a Crown corporation with or without share capital, but does not include any other corporation incorporated without share capital; ("corporation")

"Crown corporation" means a corporation, commission or association in which not less than 90% of the shares or capital is owned by Her Majesty in right of Canada or in right of a province or by a Canadian municipality, and includes a subsidiary wholly owned corporation to such a corporation, commission or association; ("corporation de la Couronne")

"director" means the Deputy Minister of Finance or any Assistant Deputy Minister of Finance; ("directeur")

"fiscal year" means the period for which the accounts of the business of a corporation are made up and accepted for the purposes of the Income Tax Act (Canada); ("exercice")

"insurance corporation" means a corporation with or without share capital that carries on insurance business of any kind or nature whatsoever including

(a) the business of issuing annuities where carried on in conjunction with insurance business, and

(b) the business of issuing contracts all or part of the issuer's reserves for which vary in amount depending upon the fair market value of a specified group of assets where carried on in conjunction with insurance business; ("corporation d'assurance")

"jurisdiction" means a province or territory of Canada or a state outside Canada having sovereign power; ("ressort")

"loan corporation" means a corporation carrying on a business the principal purpose of which is the making of loans or whose principal business is the making of loans; ("corporation de prêts")

"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; ("ministre")

"prescribed" means prescribed in the regulations; ("prescrit")

"property" means property of any kind whatsoever whether real or personal or corporeal or incorporeal and, without restricting the generality of the foregoing, includes a right of any kind whatever, a share or a chose in action, and, unless a contrary intention is evident, money; ("biens")

"related group" means a group of persons each member of which is related to every other member of the group; ("groupe lié")

"resident in Canada" means resident in Canada within the meaning of the Income Tax Act (Canada); ("résident du Canada")

"return" means the prescribed corporation capital tax return complete with financial statements as presented to the shareholders of the corporation, copies of all schedules required by and filed with Income Tax returns under the Income Tax Act (Canada) and all other information that is required by the regulations to be disclosed in the return; ("déclaration")

"share" means a share of capital stock of a corporation; ("action")

"shareholder" includes a member of a corporation or other person entitled to receive payment of a dividend or to share in a distribution on the winding-up of the corporation; ("actionnaire")

"subsidiary controlled corporation" means a corporation more than 50% of the issued share capital of which, having full voting rights under all circumstances, is owned directly or indirectly by the corporation to which it is subsidiary; ("filiale contrôlée")

"subsidiary wholly owned corporation" means a corporation where all the issued share capital of which, except directors' qualifying shares, is owned directly or indirectly by the corporation to which it is subsidiary; ("filiale en propriété exclusive")

"tax" means the tax imposed under this Act including all penalties and interest that are or may be payable in respect thereof; ("impôt")

"tax payable" by a corporation under this Act means the tax payable by the corporation or fixed by assessment subject to variation on appeal in accordance with this Act; ("impôt exigible")

"taxation year" means that fiscal year in relation to which the amount of a tax under this Act is being calculated when the expression is used to distinguish it from another fiscal year; ("année d'imposition")

"trust corporation" means a corporation licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as trustee. ("corporation de fiducie")

"unrelated group" means a group of persons that is not a related group. ("groupe non lié")

Dealing at arm's length.

2(1)

For the purposes of this Act,

(a) related persons shall be deemed not to deal with each other at arm's length; and

(b) it is a question of fact whether persons not related to each other were at a particular time dealing with each other at arm's length.

Meaning of related persons.

2(2)

For the purposes of this Act "related persons" or "persons related to each other" are

(a) individuals connected by blood relationship, marriage, or adoption;

(b) a corporation and

(i) a person who controls the corporation, if it is controlled by one person, or

(ii) a person who is a member of a related group that controls the corporation, or

(iii) any person related to a person described in sub-clause (i) or (ii);

(c) any two corporations,

(i) if they are controlled by the same person or the same group of persons, or

(ii) if each of the corporations is controlled by one person and the person who controls one of the corporations is related to the person who controls the other corporation, or (iii) if one of the corporations is controlled by one person and that person is related to any member of a related group that controls the other corporation, or

(iv) if one of the corporations is controlled by one person and that person is related to each member of an unrelated group that controls the other corporation, or

(v) if any member of a related group that controls one of the corporations is related to each member of an unrelated group that controls the other corporation, or

(vi) if each member of an unrelated group that controls one of the corporations is related to at least one member of an unrelated group that controls the other corporation.

Corporations related to same corporations.

2(3)

Where two corporations are related to the same corporation within the meaning of subsection (2), they shall, for the purposes of subsections (1) and (2), be deemed to be related to each other.

Control by related group in another group.

2(4)

For the purposes of subsection (2), where a related group is in a position to control a corporation, it shall be deemed to be a related group that controls the corporation whether or not it is part of a larger group by whom the corporation is in fact controlled.

Rights to acquire shares.

2(5)

For the purposes of subsection (2), a person who has a right under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently, to, or to acquire, shares in a corporation, or to control the voting rights of shares in a corporation, shall, except where the contract provides that the right is not exercisable until the death of an individual designated therein, be deemed to be in the same position in relation to the control of the corporation as if he owned the shares.

Shareholders in several corporations.

2(6)

For the purposes of subsection (2), where a person owns shares in two or more corporations, he shall as shareholder of one of the corporations be deemed to be related to himself as shareholder of each of the other corporations.

Connected persons.

3

For the purposes of this Act,

(a) persons are connected by blood relationship if one is the child or other descendant of the other or one is the brother or sister of the other;

(b) persons are connected by marriage if one is married to the other or to a person who is so connected by blood relationship to the other; and

(c) persons are connected by adoption if one has been adopted, either legally or in fact, as a child of the other or as the child of a person who is so connected by blood relationship, otherwise than as a brother or sister, to the other.

Permanent establishment.

4(1)

In this Act "permanent establishment" includes a fixed place of business and, without restricting the generality of the foregoing, includes branches, mines, oil and gas wells, farms, timberlands, factories, workshops, warehouses, offices, and agencies.

Subsidiary's place of business.

4(2)

For the purposes of this Act, the fact that a corporation has a subsidiary controlled corporation in a place or a subsidiary controlled corporation engaged in a trade or business in a place shall not of itself be deemed to mean that the first mentioned corporation is operating a permanent establishment in that place.

Place of permanent establishment.

4(3)

For the purposes of this Act, and without restricting the generality of subsection (1),

(a) a corporation has a permanent establishment in the place designated in its charter or by-laws as being its head office;

(b) where a corporation carries on business through an employee, or through an agent who has general authority to contract for the corporation or who has a stock of merchandise owned by the corporation from which he fills orders which he receives, the employee or agent shall be deemed to operate a permanent establishment of the corporation;

(c) where a corporation, otherwise having a permanent establishment in Canada, owns land in a province, the land is a permanent establishment;

(d) the use by a corporation of substantial machinery or equipment in a particular place at any time in a fiscal year of the corporation constitutes a permanent establishment of the corporation in that place for the fiscal year;

(e) an insurance corporation has a permanent establishment in each jurisdiction in which the corporation is registered or licensed to do business;

(f) where a corporation which is not resident in Canada in a fiscal year produced, grew, mined, created, manufactured, fabricated, improved, packed, preserved, or constructed in whole or in part anything in Canada whether or not the corporation exported that thing without selling it prior to exportation, the corporation shall be deemed to maintain a permanent establishment at any place where the corporation did any of those things in the fiscal year; and

(g) where a corporation has no fixed place of business, it has a permanent establishment in the principal place in which the corporation's business is conducted.

Rules

5

For the purposes of this Act, in determining the amount of "any other surplus", "total assets" and "cost of investments" of or for a corporation, the amount includes

(a) the amount by which any asset of the corporation is carried in the books of account of the corporation or on the balance sheet of the corporation in excess of the actual cost thereof; and

(b) the amount by which the value of any asset of the corporation has been written down and deducted from its income or undivided profits where that amount is not deductible under the Income Tax Act (Canada);

and excludes

(c) any amount by which the value of any asset of the corporation has been written down and deducted from its income or undivided profits where that amount is deductible under the Income Tax Act (Canada) unless that amount or a portion thereof is not permitted to be deducted by the regulations.

Tax payable.

6(1)

Every corporation that has a permanent establishment in Manitoba shall for every fiscal year of the corporation pay to the government at the time and in the manner provided in this Act and the regulations, a tax equal to .3% of the amount taxable of the corporation as at the close of that fiscal year of the corporation.

Surtax payable after June 30, 1987.

6(2)

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

Banks and trust and loan corporations.

6(3)

Notwithstanding subsections (1) and (2), a bank, a trust and loan corporation, a trust corporation or a loan corporation shall, for every fiscal year of the corporation ending after June 30, 1987, pay to the government at the time and in the manner provided in this Act and the regulations, a tax equal to 3% of the amount taxable as at the close of that fiscal year of the bank or corporation.

Apportionment of tax.

7(1)

Where a fiscal year of a corporation has less than 364 days, the tax otherwise payable by the corporation under this Act, except for this section, for that fiscal year shall be reduced in accordance with the following formula:

T = P x F/ 365

In this formula,

T

is the tax for the fiscal year payable by the corporation by reason of the reduction allowed under this section;

P

is the tax for the fiscal year otherwise payable by the corporation under this Act except for this section; and

F

is the number of days in the fiscal year of the corporation.

Ceasing to have permanent establishment

7(2)

Where a corporation ceases to have a permanent establishment in Manitoba during a fiscal year, it shall, in respect of the incomplete fiscal year, pay the tax in the same manner as though the fiscal year ended on the date on which it ceased to have a permanent establishment in Manitoba.

Capital of resident corporations.

8(1)

The paid up capital of a corporation that is resident in Canada as at the close of a fiscal year is the aggregate of

(a) the paid up capital stock of the corporation as at the close of the fiscal year including any premiums received on the issue of shares but not including any discount allowed in accordance with the law on the issue of shares;

(b) the earned surplus, capital surplus and any other surplus of the corporation as at the close of the fiscal year;

(c) all reserves of the corporation as at the close of the fiscal year, whether created from income or otherwise, including any deferred income tax or other deferred tax or royalty as recorded in the books of the corporation as at the close of the fiscal year but not including any reserve the amounts for the creation of which are permitted to be deducted from the income of the corporation under the Income Tax Act (Canada), unless the amount or a portion thereof is not permitted to be deducted by the regulations;

(d) all sums or credits advanced or loaned to the corporation by its shareholders directly or indirectly or by any other corporation and outstanding as at the close of the fiscal year; and

(e) all indebtedness of the corporation as at the close of the fiscal year, whether assumed or undertaken by it, represented by bonds, bond mortgages, debentures, mortgages, lien notes, and any other securities to which the property of the corporation, or any of it, is subject as at the close of the fiscal year.

Certain accounts excluded.

8(2)

For the purposes of clause (l)(d), the following accounts are to be excluded:

(a) a trade account payable by a corporation and reported as a current liability, other than an indebtedness to shareholders of the corporation shall not be included in the paid up capital of the corporation as at the close of a fiscal year, if

(i) the account is not outstanding for more than 90 days as at the close of the fiscal year, or

(ii) the account is not a portion or a current portion of a long term debt to another corporation; and

(b) a lien note payable to another corporation, other than an indebtedness to shareholders of the corporation shall not be included in the paid up capital of the corporation, as at the close of any fiscal year of the corporation, if

(i) the corporation is engaged in the business as a retail automobile or truck dealership or as a retail farm machinery and equipment dealer, and

(ii) the lien note represents financing by way of wholesale paper secured by specific charge on new or used motor vehicle inventory or on new or used farm machinery and equipment inventory.

Exclusion of wholesale paper.

8(3)

For the purposes of clause (1)(e), a lien note payable by a corporation shall not be included in the paid up capital of the corporation, as at the close of any fiscal year of the corporation, if

(a) the corporation is engaged in the business as a retail automobile or truck dealership or as a retail farm machinery and equipment dealer; and

(b) the lien note represents financing by way of wholesale paper secured by specific charge on new or used motor vehicle inventory or on new or used farm machinery and equipment inventory.

Capital of banks.

8(4)

Notwithstanding subsections (1) and 10(1), the taxable paid up capital of a bank, as at the close of any fiscal year of the bank, is the aggregate of

(a) its paid up capital stock including any premiums received on the issue of its shares but not including any discount allowed in accordance with the law on the issue of shares;

(b) its contributed surplus;

(c) its retained earnings;

(d) its general reserve; and

(e) any tax paid appropriations included in its "appropriation for contingencies" account;

each of which has been determined, as the case may be, under paragraph 215(3)(c) or (d) and Schedules M and N of the Bank Act (Canada), as if those amounts were determined on an unconsolidated basis.

Capital of trust and loan corporations.

8(5)

Notwithstanding subsections (1) and 10(1), the taxable paid up capital of a trust and loan corporation, a trust corporation or a loan corporation, as at the close of any fiscal year of the corporation, is the aggregate of

(a) its paid up capital stock including any premiums received on the issue of its shares but not including any discount allowed in accordance with the law on the issue of shares;

(b) its earned surplus, capital surplus and any other surplus; and

(c) all its reserves, whether created from income or otherwise, including any deferred income tax or other deferred tax or royalty as recorded in the books of the corporation but not including any reserve the amounts for the creation of which are permitted to be deducted from the income of the corporation under the Income Tax Act (Canada), unless the amount or a portion thereof is not permitted to be deducted by the regulations.

Capital of non-resident corporations.

9(1)

The paid up capital employed in Canada of a corporation that is not resident in Canada as at the close of a fiscal year is the greater of the amount calculated under the following clause (a) or the amount calculated under the following clause (b):

(a) The amount determined for that fiscal year in accordance with the following formula:

P = I x 12.5

In this formula

P

is the paid up capital employed in Canada of the corporation as at the close of the fiscal year if the amount is greater than the amount calculated under clause 9(l)(b); and

I

is the taxable income of the corporation earned in Canada in the fiscal year determined for the purposes of the Income Tax Act (Canada).

(b) The amount by which

(i) the amount of the total assets of the corporation in Canada as at the close of the fiscal year, exceeds

(ii) the amount of the indebtedness of the corporation relating to its permanent establishments in Canada as at the close of the fiscal year but excluding therefrom any deferred income tax or other deferred tax or royalty as recorded in the books of the corporation as at the close of the fiscal year, all amounts that are advanced or loaned to its permanent establishments in Canada by the corporation itself or by its shareholders directly or indirectly or by any other corporation and all other indebtedness that is represented by bonds, bond mortgages, debentures, mortgages, lien notes, and any other securities to which the property in Canada or any of it is subject;

and, the greater amount so determined shall be treated as the paid up capital of the corporation employed in Canada as though

(c) the corporation had no permanent establishment outside Canada;

(d) the paid up capital employed in Canada as so determined were the total paid up capital of the corporation; and

(e) the taxable paid up capital employed in Canada were allocated among the provinces and territories of Canada in a manner prescribed by the regulations.

Certain accounts excluded.

9(2)

For the purposes of sub-clause (l)(b)(ii) the following accounts are to be excluded:

(a) a trade account payable by a corporation and reported as a current liability, other than an indebtedness to shareholders of the corporation, shall not be included as indebtedness of the corporation relating to its permanent establishments in Canada as at the close of a fiscal year if

(i) the account is outstanding for more than 90 days as at the close of the fiscal year, or

(ii) the account is a portion or a current portion of a long term debt to another corporation; and

(b) a lien note payable by a corporation shall not be excluded as indebtedness of the corporation relating to its permanent establishments in Canada as at the close of any fiscal year of the corporation if

(i) the corporation is engaged in the business as a retail automobile or truck dealership or as a retail farm machinery and equipment dealer, and

(ii) the lien note represents financing by way of wholesale paper secured by specific charge on new or used motor vehicle inventory or on new or used farm machinery and equipment inventory.

Exclusions from paid up capital.

9(3)

The paid up capital employed in Canada of a corporation that is not resident in Canada as at the close of a fiscal year shall not include any capital invested in a ship or aircraft operated by the corporation in Canada in the fiscal year if the corporation is entitled under paragraph 81(l)(c) of the Income Tax Act (Canada), in computing its income for the fiscal year to exclude the income earned in the fiscal year in Canada from the operation of that ship or aircraft.

Deductions from paid up capital.

10(1)

For the purpose of computing the taxable paid up capital of a corporation that is resident in Canada as at the close of a fiscal year, there shall be deducted from the paid up capital of the corporation as at the close of the fiscal year such of the following amounts as are applicable:

(a) an amount for goodwill and other intangible things included as assets to the extent that the goodwill or other intangible things, in the opinion of the minister, have no value, but this deduction applied to no more than the lesser of

(i) 50% of the book value of the goodwill and other intangible things of the corporation as at the close of the fiscal year, or

(ii) an amount calculated in accordance with the following formula:

D = S - (I x R)

In this formula

D

is the amount to be deducted from paid up capital of the corporation as at the close of a fiscal year under this clause if the amount is less than 50% of the book value of the goodwill and other intangible things of the corporation as at the close of the fiscal year;

S

is the paid up capital stock of the corporation as at the close of the fiscal year including any premium received on the issue of shares but not including any discount allowed in accordance with the law on the issue of shares;

I

is the taxable income of the corporation in the fiscal year determined for the purposes of the Income Tax Act (Canada); and

R

is 16.66 or such other factor as may be prescribed in the regulations;

(b) an amount for investment allowance calculated in accordance with the following formula:

D = (C ÷ (P - G)) x (B-G)

In this formula

D

is the amount for investment allowance to be deducted from the paid up capital of the corporation as at the end of the fiscal year;

B

is the value of the total assets of the corporation as at the close of the fiscal year;

C

is the cost of investments held by the corporation at the end of the fiscal year in shares and bonds of and loans and advances to other corporations, and in bonds, debentures and other securities of any government, municipality or school corporation but not including

(i) cash on deposit with any financial institution that accepts deposits in the normal course of its business, or

(ii) amounts due by a corporation with its head office outside Canada to its subsidiary controlled corporation or subsidiary wholly owned corporation taxable under this Act;

G

is the amount deductible from paid up capital at the end of the fiscal year under clause (l)(a); and

P

is the paid up capital of the corporation as at the end of the fiscal year.

Non-resident corporation.

10(2)

The taxable paid up capital employed in Canada as of the end of the fiscal year of a corporation that is not resident in Canada is the paid up capital employed in Canada as at the end of the fiscal year of the corporation less any of the deductions permitted under subsection (1) that may reasonably be considered wholly applicable to its permanent establishments in Canada on the assumption that the only assets of the corporation were assets pertaining exclusively to its permanent establishments in Canada.

Meaning of "other intangible things".

10(3)

For the purposes of this section "other intangible things" means amounts expended on eligible capital expenditures as determined by paragraph 14(5)(b) of the Income Tax Act (Canada) or would have been considered eligible capital expenditures had that paragraph been in force when the expenditures were made.

Certain trade accounts excluded.

10(4)

For the purposes of clause (1)(b) and for the calculation made under the formula set out in clause (l)(b) a trade account receivable by the corporation and reported as a current asset of the corporation shall not be considered as an investment as at the close of a fiscal year unless

(a) the account is outstanding for more than 90 days as at the close of the fiscal year; or

(b) the account was a portion or a current portion of a long term debt receivable from another corporation.

Artificial transactions.

11

In computing taxable paid up capital or taxable paid up capital employed in Canada, as the case may be, of a corporation, no reduction may be made with respect to any transaction that, if permitted, would unduly or artificially reduce the taxable paid up capital or taxable paid up capital employed in Canada, as the case may be, of the corporation.

Exemption.

12(1)

Where the amount taxable of a corporation as at the close of any fiscal year of the corporation, is less than $1,000,000., no tax is payable by the corporation for that fiscal year.

Non-application of subsec. (1).

12(2)

Subsection (1) does not apply to two or more corporations that are related persons if the aggregate of the amounts taxable of all those corporations as at the close of their fiscal years ending in the same numeric year is $1,000,000. or more and, for the purpose of determining the aggregate of the amounts taxable of those corporations, any corporation that has no amount taxable at the close of the fiscal year is excluded from the calculation of the aggregate of the amounts taxable.

Exemption for credit unions.

13(1)

No tax is payable under this Act by credit unions, co-operative corporations or family farm corporations as these expressions are defined in the regulations.

Corporations exempt from income tax.

13(2)

Subject to subsection (3), no tax is payable by a corporation under this Act in respect of a fiscal year in which its total taxable income, determined for the purposes of the Income Tax Act (Canada), is exempt from income tax under subsection 149(1) of that Act.

Crown corporations.

13(3)

Subsection (2) does not apply to any Crown corporation which, in the opinion of the minister, is engaged in a commercial operation.

Notch.

14(1)

Where the amount taxable of a corporation as at the close of any fiscal year of the corporation does not exceed $1,003,000., the tax payable by the corporation before adding any interest or penalties that may be applicable, and before allowing a deduction under section 15, shall not be greater than the difference between the amount taxable of the corporation as at the close of the fiscal year and $1,000,000.

Non-application of subsec. (1).

14(2)

Subsection (1) does not apply to two or more corporations that are related persons if the aggregate of the amounts taxable of all those corporations at the close of their fiscal year ending in the same numeric year exceeds $1,003,000. and, for the purpose of determining the aggregate of the amounts taxable of those corporations, any corporation that has no amount taxable at the close of the fiscal year is excluded from the calculation of the aggregate of the amounts taxable.

Deduction.

15(1)

Subject to subsections (3) and (4), there may be deducted from the tax otherwise payable by a corporation for a fiscal year an amount equal to .3% of that portion of the amount taxable of the corporation as at the close of the fiscal year that is determined under rules prescribed in the regulations to be used by the corporation in jurisdictions outside Manitoba.

Surtax deduction.

15(2)

Subject to subsections (3) and (4), in addition to the amount deductible under subsection (1), there may be deducted from the tax otherwise payable by a corporation for a fiscal year an amount equal to .2% of that portion of the amount taxable of the corporation in excess of $10,000,000. as at the close of the fiscal year that is determined under rules prescribed in the regulations to be used by the corporation in jurisdictions outside Manitoba.

Banks and trust and loan corporations.

15(3)

There may be deducted from the tax otherwise payable by a bank, a trust and loan corporation, a trust corporation or a loan corporation for any fiscal year of the corporation ending after June 30, 1987, an amount equal to 3% of that portion of the amount taxable of the bank or corporation as at the close of the fiscal year that is determined under rules prescribed in the regulations to be used by the bank or corporation in jurisdictions outside Manitoba.

No payments less than $1.

16

Notwithstanding any other provision of this Act, where the balance of tax as calculated under clause 17(l)(b) is less than $1. no balance of tax is payable under that clause and no refund shall be allowed or paid under this Act where the amount that would otherwise be refundable is less than $1.

Remittance of tax and returns.

17(1)

Each corporation that has a permanent establishment within Manitoba shall, in respect of each fiscal year of the corporation, without notice or demand

(a) pay to the minister, at least 15 days before the last day of the fiscal year an instalment of tax payable for that fiscal year equal to the amount of the tax paid or payable for the immediately preceding fiscal year; and

(b) file with the minister, on or before the last day of the sixth month immediately following the end of the fiscal year, a return and pay to the minister the tax payable for the fiscal year less the amount of the instalment paid under clause (a) in respect of the fiscal year.

Instalments for corporations 1987-88.

17(2)

In calculating the instalment of tax payable under clause (l)(a) for a corporation, for a fiscal year ending after June 30, 1987 and before July 1, 1988, the instalment required to be paid under clause (l)(a) shall be the amount of tax that would have been payable under this Act for the immediately preceding year if subsections 6(2) and 15(2) had been in force during that preceding fiscal year.

Trust and loan corporations 1987-88.

17(3)

In calculating the instalment of tax payable under clause (l)(a) for a trust and loan corporation, a trust corporation or a loan corporation, for a fiscal year ending after June 30, 1987 and before July 1, 1988, the instalment required to be paid under clause (l)(a) shall be the amount of tax that would have been payable under this Act for the immediately preceding fiscal year if subsections 6(2) and 15(4) had been in force during that preceding fiscal year.

Verification of return.

18

Each return shall be verified by a certificate certifying that the financial statements included in the return or attached thereto are in agreement with the books of the corporation, and such certificate shall be signed by the president or some other officer having personal knowledge of the affairs of the corporation and, in the case of a corporation having its head office outside Manitoba, by the manager or chief agent of the corporation in the province or by such other person or persons connected with the corporation as the minister requires.

Minister may require return.

19(1)

Notwithstanding any other provision of this Act, the minister may, at any time, require a corporation to file with him a return covering any fiscal year, and including such information, as the minister may determine, and the corporation shall provide the return and remit to the minister therewith all of the tax payable for that fiscal year within such reasonable time as the minister may determine.

Extension of time for return.

19(2)

Notwithstanding any other provision of this Act the minister may defer the date on which a corporation is required to file a return or pay the tax payable or any instalment thereof to such date as he may determine.

Return by trustee.

20

Every trustee in bankruptcy, assignee, liquidator, receiver, administrator, or any other person administering, managing, winding-up, controlling, or otherwise dealing with the property or business of a corporation

(a) shall make returns and pay the tax that the corporation is required to make or pay ; and

(b) before distributing any assets under his control, shall obtain a certificate from the director certifying that no tax, interest, and penalties chargeable against or payable by the corporation under this Act are outstanding.

Change in fiscal year.

21

A corporation shall not change its fiscal year for the purposes of this Act unless prior thereto it has notified the minister of the proposed change and obtained the concurrence of the minister to the proposed change.

Taxes debt.

22(1)

The amount of any tax payable under this Act by any corporation, and any penalty assessed under this Act against a corporation, and any interest payable under this Act by a corporation, are debts due by the corporation to the government and are recoverable as such in a court of competent jurisdiction in the name of Her Majesty in right of Manitoba represented therein by the minister.

Interest on debt.

22(2)

From and after the date on which any debt due to the government under this Act is to be paid or remitted by a corporation, the debt bears interest

(a) at the rate of 12% per year; or

(b) at such other rate per year as the Lieutenant Governor in Council may prescribe by regulations under The Financial Administration Act;

compounded annually, and the interest is payable to the minister for the use of the Crown; but where the Lieutenant Governor in Council prescribes the rate of interest, the rate shall not be effective for at least seven days after the date on which the rate is prescribed.

Interest on refunds.

22(3)

Where the minister refunds under this Act any amount that has been paid as tax by reason of an assessment or the amount of an assessment being reduced on appeal, he shall add to the amount of the refund interest at the same rate as the rate fixed or prescribed under subsection (2) for the period from the day the amount being refunded was paid by the corporation to the day on which the refund is made.

Who is a debtor.

23(1)

For purposes of the enforcement procedures set out in sections 24 to 28, a person shall be deemed to be a debtor of the government in one or more of the following circumstances

(a) the person has declared a tax liability on a return filed under this Act;

(b) the person has received an assessment and

(i) has not appealed the assessment within the time period required by this Act, or (ii) has appealed, and the appeal has been finally resolved in favour of the government;

(c) the person has declared, or agreed to, a tax liability in any form of writing, including the issuing of a cheque on which payment has not been honoured for any reason;

(d) an action by the government in a court of competent jurisdiction to recover moneys as a debt due by the person under this Act has been finally resolved in favour of the government;

(e) the government has commenced an action in a court of competent jurisdiction to recover moneys allegedly owing by the person as a debt due to the government under this Act.

Equivalent expressions.

23(2)

The expression "debtor of the government" in subsection (1) includes the expression "corporation liable for the payment of any debt due to the government under this Act" and any similar expression contained in sections 24 to 28.

Where court action commenced.

23(3)

Where any of the enforcement procedures set out in sections 24 to 28 have been used to recover moneys in the circumstances described in clause (l)(e), the moneys shall be paid into court and, upon final resolution of the court action, shall be paid

(a) to the government, to the extent required to satisfy the judgment in the court action and any costs thereof assessed against the debtor; or

(b) to the debtor, to the extent that the moneys are not required for purposes of clause (a).

Application by alleged debtor.

23(4)

Where any of the enforcement procedures set out in sections 24 to 28 have been or are being used to recover a debt allegedly owing by a person who is not deemed to be a debtor of the government under subsection (1), the person may, within 30 days of the exercise of the enforcement procedure or within such further time as the court may allow, apply to a court of competent jurisdiction for an order under subsection (5).

Order of restitution.

23(5)

Where, upon hearing an application under subsection (4), the court is satisfied that the applicant owes no debt to the government, or owes a smaller debt than the government has alleged, the court may

(a) where applicable, order immediate termination of the enforcement procedure; and

(b) order the government to make restitution to the applicant in an appropriate amount, including any moneys reasonably expended by the applicant in applying for the order.

Exercise of power to recover debt.

24

The powers conferred upon the minister by this Act for the recovery of any debt due to the government by action in a court of competent jurisdiction, or by issue and registration of a certificate in a Land Titles Office, or by issue and direction of a warrant to a sheriff or by any other means, may be exercised separately or concurrently or cumulatively; and the liability of a person for the payment of the debt under this Act is not affected in any way by the fact that a fine or penalty has been imposed on or paid by any person in respect of any contravention of this Act or the regulations.

Lien on personal property.

25(1)

The amount of any debt due from any person to the government under this Act binds, and is a lien in favour of the government on all the property in the province of the person liable therefor, other than real property, and the lien has priority over all other claims of any person against the debtor, or person liable therefor, except a person having a prior security or lien duly registered or filed in a registry or filing office under an Act of the Legislature or an Act of Parliament prior to the date that the lien in favour of the Crown arose.

Certificates of debts and registration.

25(2)

The minister may issue a certificate in a form prescribed in the regulations, showing the address for service upon the minister, the name and address of the corporation liable for the payment of any debt due to the government under this Act and certifying the amount of the debt payable; and may register the certificate in the Land Titles Office of any Land Titles District, and from the time of the registration, the certificate except as hereinafter mentioned binds and forms a lien on all lands of the debtor against which the certificate is registered by instrument charging specific land, and while registered in the general register against all lands of the debtor in the Land Titles District in which the certificate is registered that are held in a name identical to that of the debtor set forth in the certificate whether or not the lands are registered under The Real Property Act; and the certificate when so registered has the same effect as if the debtor had under its hand and seal executed a lien charging the lands in favour of the minister.

Realization of lien.

25(3)

A certificate issued under subsection (2) shall be registered on its mere production without an affidavit of execution, and the lien thereby created may be realized in the same manner as if it were a mortgage on the land executed by the owner thereof the payment of the principal and interest of which was in default at the time of registration.

Effect of failure to proceed.

25(4)

The liens created under this section and their priority are not lost or impaired by the taking or failure to take proceedings to recover the tax due, or by the tender or acceptance of any partial payment of the tax, or by want of registration.

Lien on bankruptcy proceedings.

25(5)

In case of the insolvency of any person, or the liquidation of any corporation, from whom or from which a debt is due to the government under this Act, the amount of the debt is a lien on the estate and assets of the person or corporation, subject to any statute of Canada and to the costs and charges of insolvency or liquidation proceedings.

Minister may order payment.

26(1)

Where the minister is informed or suspects that a person is or is about to become indebted, or liable to make any payment to a corporation which owes a debt to the government under this Act, the minister may, by registered letter or by letter served personally, demand of that person that the moneys otherwise payable by him to the corporation be paid, in whole or in part, to the minister on account of the liability of the corporation under this Act.

Discharge of liability to debtor.

26(2)

The receipt of the minister for moneys paid pursuant to a demand made under subsection (1) constitutes a good and sufficient discharge of the liability of the person to the corporation to the extent of the amount received by the minister.

Liability to pay under demand.

26(3)

Any person discharging any liability to a corporation after receipt of the demand under subsection (1) is personally liable to Her Majesty in right of Manitoba to the extent of the lesser of

(a) the liability discharged as between him and the corporation; or

(b) the liability of the corporation for a debt payable to the government under this Act.

Personal service.

26(4)

A letter under subsection (1) shall be deemed to have been served personally on a person engaged in business if it has been left with an adult person employed at the place of business of the person.

Service of demand in business name.

26(5)

Where a person who is, or is about to become, indebted or liable to a corporation carries on business under a name or style other than his own name, the registered or other letter under subsection (1) may be addressed to the person in the name or style under which he carries on business.

Service of demand on partnership.

26(6)

Where the persons who are, or are about to become, indebted or liable to a corporation carry on business in partnership, the registered or other letter under subsection (1) may be addressed to the partnership name and the letter under subsection (1) shall be deemed to have been served personally on all the partners if it has been served on one of the partners or left with an adult person employed at the place of business of the partnership.

Warrant against personal property.

27(1)

The minister may issue a warrant for the amount of debt due to the government under this Act, together with the costs, expenses and poundage of the sheriff, directed to a sheriff, and the warrant has the same force and effect, and is subject to the same exemptions, as a writ of fieri facias issued out of the Court of Queen's Bench.

Sale of goods by auction.

27(2)

Subject to subsection (4), goods or property seized under a warrant issued in accordance with this section shall be kept for 10 days at the cost and charges of the debtor; and if the debtor does not pay the sum due, together with the costs and charges within the 10 days, the goods and property seized under the warrant may be sold by public auction.

Notice of sale.

27(3)

Except in the case of perishable goods or property seized under a warrant issued in accordance with this section, notice of the sale setting forth the time and place thereof, together with a general description of the goods and property to be sold, shall be published in a local newspaper of general local circulation.

Sale of perishable goods.

27(4)

In the case of perishable goods or property the sheriff making the seizure under a warrant issued in accordance with this section shall give notice to the debtor of his intention to sell the goods or property, and it shall be sold as soon as reasonably practical and neither the sheriff nor the minister is liable in damages for any loss occurring which would not have occurred if there had been no seizure.

Disposal of surplus.

27(5)

Any surplus resulting from the sale of goods or property under this section, after deduction of the amount owing by the debtor and all costs and charges, shall be paid to the debtor.

Demand if debtor is leaving Manitoba.

28(1)

The minister, if he suspects that a debtor is about to leave Manitoba, may, for that or any other reason, by notice sent to the debtor demand payment of all taxes, penalties, and costs, for which the debtor is liable; and the debtor shall pay them within 10 days from the date of the mailing of the notice notwithstanding any other provision of this Act.

Seizure of goods upon non-payment.

28(2)

Non-payment of the taxes, penalties and costs within the specified time renders the goods and property of the debtor liable to seizure by the sheriff of the district within which the goods and property of the debtor are situated.

Certificate to authorize seizure.

28(3)

A certificate of non-compliance with a demand made under this section, signed by the minister, setting forth the particulars of the demand and placed in the hands of the sheriff, is sufficient authority to the sheriff to seize sufficient of the goods and property of the debtor to meet the demand.

Sale of goods seized.

28(4)

The sale of the goods and property seized under this section, and the disposition of the money realized, shall be conducted in the manner prescribed in section 27.

Failure to file return.

29(1)

Every corporation which fails to file a return or a complete return for a fiscal year within the time fixed or allowed for the filing of the return is liable, regardless of whether it is prosecuted or convicted under any provision of this Act to a penalty, to be assessed by the minister, not exceeding $100. for each day during which the failure continued, and any amount assessed under this subsection shall be conclusively deemed to be tax payable under this Act and in addition to any other tax payable under this Act and may be collected as tax payable under this Act.

Failure to pay tax or instalments.

29(2)

Every corporation which fails to pay any instalment of tax, or any balance of tax, payable under this Act in the amount and at the time required under this Act is liable, regardless of whether it is prosecuted or convicted under any provision of this Act, to a penalty of 5% of the amount of the instalment or balance of tax that is unpaid at the time required or $20. whichever is the greater, and any penalty under this subsection shall be conclusively deemed to be tax payable under this Act and in addition to any other tax payable under this Act and may be collected as tax payable under this Act.

Return not binding.

29(3)

Neither the minister nor the director is bound by a return or information supplied by or on behalf of any person and may, notwithstanding any return or information supplied, or where no return has been filed, make the assessments contemplated under this Act.

Requirement of additional information.

30(1)

The minister or the director may, for any purpose relating to the administration or enforcement of this Act, by registered letter or by demand served on the person, require a person, within such reasonable time as stipulated in the letter or demand

(a) to provide any information or additional information, or to file any return or supplementary return with the minister or with the director;

(b) to produce to the minister or to the director any book, record, writing or other document in the possession or control of the person; or

(c) to make certain books, records or documents of a corporation, or information, available to the minister or the director or to a person designated by the minister or director.

Failure to supply information.

30(2)

Every corporation which fails to comply with a requirement of the minister or director under this section is liable, regardless of whether it is prosecuted or convicted under any provision of this Act, to a penalty to be assessed by the minister not exceeding $200. for each day during which the failure continues, and any amount assessed under this section shall be conclusively deemed to be tax payable under this Act and in addition to any other tax payable under this Act and may be collected as tax payable under this Act.

Right to inspect.

31(1)

The director, or any officer appointed by the minister under this Act and duly authorized for the purpose, or any peace officer may, at any reasonable time and without warrant, enter upon the business premises of any corporation, or any premises where the director, officer or peace officer has reasonable and probable grounds to believe that business records of a corporation are kept,

(a) for the purpose of ascertaining whether tax has been, or is being, paid by the corporation, or the amount of tax payable by the corporation; or

(b) to inspect, examine or audit the books, records, documents, assets and premises of the corporation, for the purpose of ascertaining the amounts taxable of the corporation or the tax payable by the corporation; or

(c) to make such inquiries and inspections of the premises as the director, officer or peace officer reasonably requires for the purposes of this Act;

or to do two or more of the things mentioned in clauses (a) to (c); and the corporation or the employees or agents of the corporation shall, at that time, produce for inspection by the director, officer or peace officer such books, records, documents or assets as the director, officer or peace officer may require.

Warrant to enter and seize.

31(2)

A justice who is satisfied by information upon oath that there are reasonable and probable grounds to believe that

(a) a violation of this Act or the regulations has occurred or is occurring; and

(b) there is to be found in any building, receptacle, vehicle, or place in the province a book, record, document, asset or other thing which affords evidence of the violation;

may at any time, and where necessary upon ex parte application, issue a warrant authorizing any officer of the Department of Finance, together with any peace officer on whom the officer calls for assistance and such other persons as may be named therein, to enter and search the building, receptacle, vehicle, or place for the book, record, document, asset or thing, and to seize and retain it for production in any court proceedings.

Copies as evidence.

31(3)

Where any book, record or document has been seized, inspected, examined, audited or produced in accordance with this section, the person by whom it has been seized, inspected, examined or audited, or to whom it has been produced, or any officer employed under the minister, may make or cause to be made one or more copies thereof; and a document purporting to be certified by a person authorized by the minister for the purpose to be a copy made pursuant to this subsection, is admissible in evidence and has the same probative force in any court or inquiry as the original book, record or document would have had if it had been proven in the ordinary way.

Return of books.

31(4)

Where any book, record, document, asset or thing has been seized or produced under this section, the person by whom it was seized or to whom it was produced shall

(a) in the case of a book, record or document, within a reasonable time of a written request therefor by the person from whom it was seized or by whom it was produced, and where information from the book, record or document is reasonably required for the conduct of the person's business, send the book, record or document or a copy thereof to the person; and

(b) subject to subsection (5), return the original book, record or document, or the asset or thing, to the person from whom it was seized or by whom it was produced, within 180 days of the seizure or production.

Extension by judge.

31(5)

Any person authorized by the minister for the purpose may apply to a judge of the Queen's Bench for an extension of the 180 day period referred to in clause (4)(b), and upon hearing the application the judge may dismiss the application or may grant an extension for such time and subject to such conditions as the judge sees fit, if the extension is reasonable and necessary for purposes of

(a) existing or anticipated court proceedings arising out of an alleged violation of this Act or the regulations; or

(b) a continuing investigation into a suspected violation of this Act or the regulations.

Decision final.

31(6)

The decision of the judge under subsection (5) is final and binding and there is no appeal therefrom.

Where extension rejected.

31(7)

Where the judge dismisses an application for an extension of time under subsection (5), the person who made the application shall, within 30 days of the decision, return the original book, record or document, or the asset or thing, to the person from whom it was seized or by whom it was produced.

Information confidential.

32(1)

Subject to subsection (2), neither the minister nor any person employed by the government under the minister in administration of this Act shall communicate or disclose to any person any information of a private or confidential nature acquired by him under this Act except in so far as may be necessary for the due administration and enforcement of this or any other Act of the Legislature imposing a tax or levy.

Reciprocal exchange of information.

32(2)

The minister may permit information or a copy of any book, record, writing, return or other document submitted by, or obtained from, a person under or in respect of this Act, to be given or shown to any person employed by the government of any country, province or state if

(a) information, books, records, writings, returns and other documents obtained by or submitted to the government of that country, province or state for the purposes of any law that imposes a tax are given or shown to persons employed by the government of Manitoba on a reciprocal basis; and

(b) the minister is satisfied that the information, book, record, writing, return or other document given to or made accessible to the government or that other country, province or state will not be used by the government of that other country, province or state, for any purpose other than the administration and enforcement of a law that provides for the imposition of a tax or levy.

Notice of arrangements.

32(3)

Where the minister makes an agreement or arrangement respecting the reciprocal exchange of information under subsection (2), the minister shall publish in the Manitoba Gazette a notice setting out the terms of the agreement or arrangement.

Books and records to be available.

33(1)

Each corporation shall keep and maintain within Manitoba and make available within Manitoba for inspection, examination and audit under this Act books and records relating to the operations of the corporation or make such other arrangements with the director as may be satisfactory to the director to make them available for inspection, examination and audit under this Act.

Order as to books and records.

33(2)

If the books and records kept by a corporation are, in the opinion of the director, inadequate for the purposes of this Act, he may, by written order, require the books and records to be kept by the corporation, the nature thereof and the entries to be made therein, and the corporation shall, within such reasonable time as the director may stipulate in the order, begin keeping the books and records as required.

Failure to comply with order.

33(3)

Where the director makes an order under subsection (2), the corporation to which the order is directed shall comply with the order, and if it fails to comply with the order it is guilty of an offence and liable to a fine not exceeding $1,000.

Assessment.

34(1)

Where

(a) a corporation fails to file a return required under this Act in respect of a fiscal year; or

(b) the return of a corporation in respect of a fiscal year is not, in the opinion of the director, substantiated by books and records of the corporation; or

(c) upon inspection or examination of a return or audit of books, records and documents, it appears to the satisfaction of the director that any tax payable by a corporation under this Act in respect of a fiscal year has not been paid in accordance with this Act;

the director may make an assessment of the amount of tax payable by the corporation in respect of the fiscal year, and subject to sections 35 and 36, the amount so assessed shall be conclusively deemed to be the amount of tax payable by the corporation in respect of that fiscal year.

Assessment where records inadequate.

34(2)

Where

(a) the books and records kept by a corporation are, in the opinion of the director, inadequate for the purposes of this Act; or

(b) after being requested by the director to produce its books and records, a corporation fails or refuses to produce its books and records for examination for the purposes of this Act; or

(c) a corporation alleges that its books and records have been lost or destroyed;

the director may make an assessment of the tax payable by the corporation in respect of a fiscal year on the basis of his valuation of the amount taxable of the corporation, and subject to sections 35 and 36, the amount so assessed shall be conclusively deemed to be the amount of tax payable by the corporation in respect of that fiscal year.

Notice of assessment.

34(3)

Where the director has made an assessment under subsection (1) or (2), he shall, by notice in writing either mailed to or served on the corporation, require the corporation to remit to the minister, or otherwise account for, within 30 days after the date on which the notice is mailed or served, the tax payable as assessed under subsections (1) or (2) and thereupon the corporation shall, within that time, pay the tax assessed or otherwise account therefor to the satisfaction of the minister.

Evidence of serving notice.

34(4)

An affidavit or statutory declaration by the person serving or mailing a notice pursuant to subsection (3) stating that he has served or mailed the notice is prima facie proof that the amount stated in the notice is due and owing; and the onus of proving otherwise rests on the corporation.

Right to re-assess.

34(5)

Where the director has, under this section made an assessment of the amount of tax payable by a corporation in respect of a fiscal year, he is not by reason thereof prevented or prohibited from making a further assessment or a reassessment of the amount of tax payable by the corporation in respect of that fiscal year; but, where a corporation has, under section 35 or 36, appealed an assessment under this section in respect of a fiscal year, the director shall not make a further assessment or re-assessment of the tax payable by the corporation in respect of that fiscal year unless the further assessment or re-assessment is based on information that was not in the return of the applicant or otherwise submitted to the director by the applicant before or at the time the appealed assessment was made.

Appeal to minister.

35(1)

Where a corporation disputes the amount of an assessment made under section 34, it may directly or by its agent, within 60 days after receipt of the notice of the assessment, serve notice of appeal upon the minister.

Form of notice of appeal.

35(2)

The notice of appeal served under subsection (1) shall be in writing and shall set forth clearly the reasons for the appeal and any facts relative thereto.

Minister to consider appeal.

35(3)

Upon receipt of a notice served under subsection (1), the minister shall duly consider the matter appealed and may affirm, rescind, or amend the assessment and shall forthwith send by registered or certified mail to the appellant or serve upon the appellant notice of his decision.

Appeal to Queen's Bench.

36(1)

Where a person is dissatisfied with the decision of the minister given under section 35, he may appeal therefrom to the Court of Queen's Bench and the onus shall be on the person to disprove the assessment.

Form of appeal.

36(2)

An appeal under subsection (1) shall be made by filing in the court, within 60 days after the date on which the notice of the decision appealed was sent by registered or certified mail or served under subsection 35(3) or such further period as a judge of the court may, on application allow, a statement of claim naming Her Majesty the Queen in right of Manitoba as the defendant and setting forth the grounds of the appeal.

Continuation of action.

36(3)

Upon a statement of claim being filed under subsection (2), the action shall continue in the same manner as any other action in the court unless the court otherwise orders; and any party to the action may apply to a judge of the court for directions as to the conduct of or steps to be taken in the action, and the judge may make such orders as he thinks advisable respecting the conduct of the action and steps to be taken therein.

Manner of disposal of appeal.

36(4)

Upon an appeal under this section the court may affirm, set aside or vary the decision appealed and may, in delivering judgment disposing of the appeal, order payment or repayment of the tax, interest and penalties, or costs, by the tax payer or the government.

Assessment not affected by irregularity.

37(1)

An assessment made by the director under section 34 shall not be varied or disallowed because of any irregularity, informality, omission, or technical error, on the part of any person in the observation of any directory provision of this Act or the regulations up to the date of the issuing of the notice of the assessment.

Effect of appeal.

37(2)

Neither the launching of an appeal by a corporation nor any delay in the hearing of an appeal shall in any way affect the due date, the interest, or penalties, or any liability for payment of the tax under this Act that is the subject of the appeal, or in any way delay the collection of the same; but in the event of the assessment of the director being set aside or reduced on appeal, the minister shall refund any amount that has been paid as tax in respect of the assessment or the amount thereof by which it is reduced.

Refund of overpayment.

38(1)

Where on an assessment under this Act, it is disclosed that the amount paid by a corporation as tax for a fiscal year exceeds the amount that is required to be paid by the corporation as tax for that fiscal year, the minister shall refund the amount of the excess to the corporation, except that if the corporation owes any tax in respect of any other fiscal year the amount of the excess or so much thereof as is required shall be retained by the minister and applied on the tax owing in respect of the other fiscal year and the corporation shall be notified of the application thereof.

Time limit on refund.

38(2)

No refund shall be made under this section where the payment of the excess tax is not discovered within six years of the date on which the excess tax was paid.

Evasion of tax.

39

Every corporation which attempts to evade payment of all or part of the tax payable by it under this Act by understating the value of the amount taxable of the corporation or overstating the deduction to which it is entitled to make from its paid up capital or the value of its paid up capital used in a jurisdiction outside Manitoba, is liable, regardless of whether it has been prosecuted or convicted under any provision of this Act, to a penalty to be assessed by the minister, not exceeding 50% of the amount of the tax sought to be evaded.

Failure to produce records.

40(1)

Every person who

(a) refuses or wilfully neglects to produce as required under this Act books, records or documents to a person entitled under this Act to inspect, examine or audit them; or

(b) refuses or wilfully neglects to answer any question put to him by a person entitled under this Act to do so relating to any matter concerning which he is required under this Act to answer; or

(c) refuses or wilfully neglects to file any return or make any report required from him under this Act; or

(d) files or makes a false or misleading return or report or gives false or misleading answers or information in any return or report under this Act, or makes a false or misleading answer to any question put to him by a person entitled to do so relating to any matter concerning which he is required under this Act to answer; or

(e) destroys, alters, mutilates, secretes or disposes of the books or records of a corporation to evade tax under this Act; or

(f) makes or permits, assents to, or acquiesces in the making of false or misleading entries or omissions in the books or records of a corporation to evade tax under this Act; or

(g) wilfully evades or attempts to evade complying with this Act or payment of tax under this Act;

is guilty of an offence and liable to a fine of not less than $100. plus an amount not less than double the amount of any tax payment of which was evaded or sought to be evaded.

Obstructing inspections.

40(2)

Every person who obstructs the minister or the director or any other person authorized under this Act to make any inspection, examination or audit of any books, records, documents, assets or premises in making any such inspection, examination or audit in the administration of this Act, is guilty of an offence and liable to a fine of not less than $100.

Failure to obey Act an offence.

41

Any person who disobeys, or refuses, or wilfully neglects, omits, or fails, to comply with any provision of this Act or the regulations or any request or requirement made or imposed under the authority of this Act is guilty of an offence.

Penalty.

42

Any person who is guilty of an offence under this Act in respect of which no penalty is expressly provided elsewhere herein is liable to a fine of not less than $50.

Officers as parties to offence.

43(1)

Where a corporation disobeys, or refuses, neglects, omits or fails to comply with any provision of this Act or the regulations or any request or requirement made or imposed under the authority of this Act, or makes any false or misleading statement or omission in any return or report required under this Act or the regulations, every director or officer of the corporation who authorized, permitted or acquiesced in the disobedience, refusal, neglect, omission or failure or the making of the statement or omission in the return or report, is guilty of an offence and liable to a fine in any amount to which the corporation would be liable if it were found guilty or to imprisonment for a term not exceeding six months or to both.

Acts of agent deemed acts of principal.

43(2)

In construing and enforcing this Act, a corporation shall be deemed to be a party to the act, omission, neglect, or failure, of an officer, employee, or agent of, or of any other person acting for, the corporation and acting within the scope of his employment or instructions.

Limitation on prosecution.

44

Notwithstanding any other Act of the Legislature, proceedings in respect of the prosecution in respect of an alleged offence under this Act relating to a false or misleading statement or answer may be instituted at any time after the offence was alleged to have been committed; and proceedings in respect of a prosecution of any other alleged offence under this Act or the regulations may be instituted at any time within six years after the time when the subject matter of the prosecution arose.

Continuing offence.

45

Where a person commits an offence under this Act and the offence continues more than one day, the person offending is, for each day during which the offence continues, guilty of a further offence and may be convicted therefor, and is liable to the same punishment as for the original offence for each day during which the offence continues, and where an information relating to an alleged offence under this Act sets out that the alleged offence continued on several days or for a period of days it shall be treated as and conclusively deemed to be separate information alleging a separate offence for each of the several days or for each of the days in the period.

Notices.

46(1)

Where under this Act any notice or document is required to be served on, delivered to or sent to a corporation it is sufficiently served, delivered or sent

(a) if it is delivered to any office of the corporation in Manitoba; or

(b) if it is sent by registered or certified mail addressed to a corporation at the address in Manitoba shown on the most recent return of the corporation filed under this Act or as last known to the director; or

(c) where no address of the corporation in Manitoba is known to the director, if it is sent by registered or certified mail addressed to the post office nearest to the place where the corporation has a permanent establishment in Manitoba.

Time of service.

46(2)

Where under this Act any notice or document required to be served on, delivered to or sent to a corporation is sent to the corporation by registered or certified mail, the corporation shall be deemed to have received the notice or document on the second day after the day on which it was mailed not including any day on which the post office is closed.

Onus of proof.

47

In any prosecution for failure to pay tax or any proceeding to collect tax, the onus of proving that the tax was paid or that no tax is payable as the case may be is upon the person alleging that the tax was paid or that no tax is payable.

Affidavit of director.

48

In any prosecution or proceeding under this Act, an affidavit by the director as to facts necessary to establish that he has complied with a provision of this Act is admissible as prima facie proof of the facts set out thereon.

Delegation of powers by director.

49

The director, with the approval of the minister, may authorize any officer of the Department of Finance to perform and exercise such of the duties imposed and powers conferred by this Act upon the director as may, in the opinion of the director, be conveniently performed or exercised by that officer; and the performance or exercise of those duties or powers by the officer so authorized shall be of the same force and effect as if they were performed or exercised by the director.

Tax paid to Consolidated Fund.

50

All moneys received by the minister as proceeds of the tax shall be paid into the Consolidated Fund and shall be credited to a special account in the books of the government as received, and any refunds made under this Act shall be charged to the special account.

Regulations.

51(1)

For the purpose of carrying out the provisions of this Act according to their intent, the Lieutenant Governor in Council may make such regulations as are ancillary thereto and are not inconsistent therewith; and every regulation 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,

(a) prescribing the form of corporation capital tax return and any other form required under this Act;

(b) respecting information required to be disclosed in a return or any other prescribed form;

(c) prescribing amounts or portions of amounts that are not permitted to be excluded from total assets, other surplus or cost of investments of a corporation under clause 5(c);

(d) defining '‘credit unions", "co-operative corporations" and " family farm corporations" for the purposes of subsection 13(1);

(e) prescribing a factor for use in the formula set out in clause 10(l)(a);

(f) prescribing rules for determining the value of that portion of the amount taxable of a corporation as at the close of a fiscal year that is used by the corporation in jurisdictions outside Manitoba for the purposes of section 15;

(g) prescribing anything else that by this Act is to be prescribed or is to be determined or regulated by the regulations;

(h) defining, for the purpose of the regulations, words not defined in the Act;

(i) prescribing certain classes of corporations resident in Canada that shall be deemed for the purposes of this Act or for the purposes of any specified provision of this Act to be deemed to be corporations that are not resident in Canada;

(j) prescribing rules governing the manner in which assets and liabilities of and capital used in any partnership or joint venture carried on by a corporation with some other person are to be reflected and accounted for in determining the amount taxable of the corporation;

(k) respecting the retention or destruction, or both, of the books and records referred to in subsection 33(1).

Effect of Regulations Act.

51(2)

Notwithstanding The Regulations Act, and notwithstanding that the regulation is not filed under The Regulations Act, a regulation made under subsection (1) has force and effect on the date it is made or such other date as is specified in the regulations.

Retroactive regulations.

51(3)

Notwithstanding any other law, a regulation made under subsection (1) may be made effective retroactively.