100

 

 

Second Session, 50th General Assembly

3 Charles III, 2025

BILL 100

AN ACT TO AMEND THE REVENUE ADMINISTRATION ACT NO. 6

Received and Read the First Time................................................................

Second Reading............................................................................................

Committee.....................................................................................................

Third Reading...............................................................................................

Royal Assent.................................................................................................

HONOURABLE SIOBHAN COADY

Minister of Finance and President of Treasury Board

Ordered to be printed by the Honourable House of Assembly

 

EXPLANATORY NOTES

This Bill would amend the Revenue Administration Act to

·         remove the definition of associated corporation;

·         add a definition of qualified motor vehicle and recreational vehicle;

·         amend the definition of remuneration to clarify how the health and post-secondary education tax applies when remuneration is incurred outside the province;

·         amend the definition of taxable remuneration to clarify how the health and post-secondary education tax exemption threshold is allocated between associated employers, including partnerships, joint ventures and trusts;

·         remove the definition of interjurisdictional motor vehicle;

·         extend the time period within which a taxpayer is required to notify the department of an overpayment of tax for a refund from 3 years to 7 years;

·         require a person who intends to export gasoline in bulk from the province to report the export and retain prescribed documents, except where that person holds a wholesaler licence; and

·         allow consignment sales for gasoline.

A BILL

AN ACT TO AMEND THE REVENUE ADMINISTRATION ACT NO. 6

Analysis

        1.   S.2 Amdt.
Definitions

        2.   S.2.01 Added
Interpretation

        3.   S.21 Amdt.
Refund

        4.   S.53.1 Added
Gasoline exported from the province

        5.   S.56 Amdt.
Tax

        6.   S.61 Amdt.
Registration

        7.   S.63 Amdt.
Prohibited sales of gasoline

        8.   S.69 Amdt.
Powers re interjurisdictional carrier 

        9.   S.108 Amdt.
Regulations re: gasoline tax

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

SNL2009 cR-15.01 as amended

        1. (1) Paragraph 2(d) of the Revenue Administration Act is repealed.

             (2)  Paragraph 2(y) of the Act is amended by deleting the words "interjurisdictional motor vehicles" and substituting the words "qualified motor vehicles".

             (3)  Paragraph 2(gg) of the Act is amended by deleting the words "an interjurisdictional motor vehicle" and substituting the words "a qualified motor vehicle".

             (4)  Paragraph 2(hh) of the Act is repealed.                  

             (5)  Section 2 of the Act is amended by adding immediately after paragraph (ggg) the following:

      (ggg.1)  "qualified motor vehicle" means a motor vehicle, other than a recreational vehicle, that is used, designed or maintained for transportation of persons or property and which  

                      (i)  has 2 axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,797 kilograms,

                     (ii)  has 3 or more axles regardless of weight, or

                    (iii)  draws a trailer when the combined weight of the motor vehicle and trailer exceeds 26,000 pounds or 11,797 kilograms gross vehicle weight or registered gross vehicle weight;

             (6)  Section 2 of the Act is amended by adding immediately after paragraph (iii) the following:

         (iii.1)  "recreational vehicle" means a recreational motor vehicle which is used exclusively for personal pleasure by an individual, and which is not used in connection with a business endeavour, and includes

                      (i)  motor homes,

                     (ii)  pick up trucks with attached campers, and

                    (iii)  buses;

             (7)  Paragraph 2(jjj) of the Act is repealed and the following substituted:

           (jjj)  "remuneration" includes all payments, benefits or allowances paid or credited to or on behalf of each employee whose province of employment is determined under the Income Tax Act (Canada) and regulations under that Act to be the province and which, because of subsection 5(1) or section 6 or 7 of the Income Tax Act (Canada) are declared to be or are required to be included in income of a person for the purpose of that Act and includes

                      (i)  salary and wages,

                     (ii)  bonuses,

                    (iii)  commissions or other similar amounts fixed by reference to the volume of sales made or the contracts negotiated, and

                    (iv)  other taxable allowances or benefits paid or accrued to an employee or officer,

but does not include a pension, annuity or superannuation benefit paid by an employer to a former employee after retirement of that employee;

             (8)  Paragraph 2(qqq) of the Act is repealed and the following substituted:

        (qqq)  "taxable remuneration" means

                      (i)  with respect to the taxation year, remuneration less the exemption threshold, or

                     (ii)  in the case of a group of associated employers, remuneration in excess of the amount allocated to each employer in the group by way of an allocation agreement filed with the minister, as prescribed, but where the employers in a group of associated employers do not file an allocation agreement, taxable remuneration shall equal remuneration;

 

        2. The Act is amended by adding immediately after section 2 the following:

Interpretation

   2.01 For the purposes of subparagraph 2(qqq)(ii) and determining if 2 or more employers are associated at any time in a year

             (a)  section 256 of the Income Tax Act (Canada) applies; and

             (b)  the following rules apply:

                      (i)  where an employer is an individual,

                            (A)  the employer is considered to be a corporation having issued a capital stock of a single class of voting shares, and

                            (B)  the individual is considered to own, at that time, all of the issued shares of that class,

                     (ii)  where an employer is a partnership, joint venture or trust,

                            (A)  the employer is considered to be a corporation having only one class of issued shares which have full voting rights under all circumstances, and

                            (B)  each member of the partnership or joint venture or beneficiary of the trust, as the case may be, is considered to own, at a particular time, the greatest proportion of the number of issued shares of the capital stock of the corporation that,

                                     (I)  the member’s or beneficiary’s share of the income or loss of the partnership, joint venture or trust for the fiscal period of the partnership, joint venture or trust that includes that time,

                                  is of

                                    (II)  the income or loss of the partnership, joint venture or trust for that fiscal period,

and for the purposes of this subparagraph, if the income and loss of the partnership, joint venture or trust for that period are nil, that proportion shall be computed as if the partnership, joint venture or trust had income for that period in the amount of $1,

                    (iii)  employers that are corporations, or are considered to be corporations, that would be associated with each other under the Income Tax Act (Canada) at any time in the year shall be considered to be employers that are associated with each other at that time, and

                    (iv)  where 2 employers would, but for this section, not be associated with each other at any time, but are associated at that time with another employer, they are considered to be associated with each other at that time.

 

        3. Subsection 21(2) of the Act is amended by deleting the number "3" and substituting the number "7".

        4. The Act is amended by adding immediately after section 53  the following:

Gasoline exported from the province

   53.1 (1) A person, other than a holder of a licence issued under paragraph 72.11(1)(b), who intends to export gasoline in bulk from the province shall

             (a)  report the export from the province in the form set by the minister; and

             (b)  retain the documents prescribed in the regulations in the person's possession.

             (2)  A report referred to in subsection (1) shall include the information prescribed in the regulations.           

 

        5. (1) Subsection 56(1) of the Act is amended by deleting the reference "tr = the tax rate per litre of diesel fuel grade of gasoline set out in section 51" and substituting the reference "tr = the tax rate per litre set out in section 51 for the grade of gasoline consumed by the fleet during the reporting period".

             (2)  Subsection 56(5) of the Act is amended by deleting the words "an interjurisdictional motor vehicle" and substituting the words "a qualified motor vehicle".

 

        6. (1) Subsection 61(1) of the Act is amended by

             (a)  deleting the words "an interjurisdictional motor vehicle" and substituting the words "a qualified motor vehicle"; and

             (b)  deleting the words "the interjurisdictional motor vehicle" and substituting the words "the qualified motor vehicle".

             (2)  Subsection 61(5) of the Act is amended by

             (a)  deleting the words "registered interjurisdictional motor vehicle" and substituting the words "registered qualified motor vehicle"; and

             (b)  deleting the words "an interjurisdictional motor vehicle" and substituting the words "a qualified motor vehicle".

 

        7. Section 63 of the Act is amended by adding immediately after subsection (5) the following:

             (6)  Notwithstanding subsection (4), a retailer may sell or keep gasoline for retail sale where the retailer has entered into a consignment agreement with a gasoline wholesaler with respect to the gasoline.

 

        8. (1) Subsection 69(1) of the Act is amended by deleting the words "an interjurisdictional motor vehicle" wherever they appear and substituting the words "a qualified motor vehicle".

             (2)  Subsection 69(2) of the Act is amended by deleting the words "an interjurisdictional motor vehicle" and substituting the words "a qualified motor vehicle".                

 

        9. (1) Section 108 of the Act is amended by adding immediately after paragraph (d) the following:        

         (d.1)  prescribing the documents for the purposes of paragraph 53.1(1)(b);

         (d.2)  prescribing the information to be included in a report referred to in subsection 53.1(2);

             (2)  Paragraph 108(g) of the Act is amended by deleting the words "an interjurisdictional motor vehicle" and substituting the words "a qualified motor vehicle".

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