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Consolidated Newfoundland Regulation 1996


CONSOLIDATED NEWFOUNDLAND REGULATION 1118/96

CONSOLIDATED NEWFOUNDLAND REGULATION 1118/96

Financial Corporations Capital Tax Regulations
under the
Financial Corporations Capital Tax Act
(O.C. 96‑867)

Under the authority of section 62 of the Financial Corporations Capital Tax Act and the Subordinate Legislation Revision and Consolidation Act, the Lieutenant‑Governor in Council makes the following regulations.

REGULATIONS

Analysis


        1.   Short title

        2.   Definitions

        3.   Rate of interest

        4.   Refund of overpayment

        5.   Interest on refund

        6.   Formulae described

        7.   Forms

        8.   Repeal


Short title

        1. These regulations may be cited as the Financial Corporations Capital Tax Regulations.

16/83 s1

Definitions

        2. In these regulations

             (a)  "Act" means the Financial Corporations Capital Tax Act; and

             (b)  "minister" means the minister appointed under the Executive Council Act to administer the Act.

Rate of interest

        3. (1) Interest shall be levied upon a sum due at the rate of 1.2% compounded per month or part of a month from the date the sum is required to be paid to the date of payment.

             (2)  Where the tax payable by a corporation for a fiscal year exceeds payments made under an estimate under section 19 of the Act, interest shall be imposed at the rate specified in subsection (1) on the difference between the estimate of tax payable under section 19 and the actual tax payable under the Act, as if the actual tax payable had been required to be paid in 12 equal monthly instalments.

             (3)  Interest shall not be levied for a month in which the sum due is less than $100.

113/93 s1

Refund of overpayment

        4. (1) Where a person has paid to the Crown an amount which exceeds the tax required to be paid, he or she may apply in writing to the minister for a refund of the overpayment.

             (2)  An application for refund shall be supported by the relevant facts, documentation or information that the minister may request.

             (3)  Upon verification of an application for refund, the minister shall pay the verified amount of overpayment to the person to whom the refund is due.

             (4)  A refund shall not be paid under this section where the amount of refund is less than $10.

113/93 s1

Interest on refund

        5. (1) Where the minister issues a refund under section 4, he or she shall, at the same time, pay interest on the amount of the refund at the rate of 0.7% compounded per month from the date the application is received to the date the refund is approved.

             (2)  Notwithstanding subsection (1), where a payment made on account of a corporation's estimated tax payable under section 19 of the Act exceeds the actual tax payable by the corporation, the minister shall pay interest on the amount of the excess at the rate specified in subsection (1) from the date of the payment to the date the refund is approved.

             (3)  Where the minister issues a refund of tax resulting from a review or appeal of an assessment, interest shall be paid to the taxpayer at the rate specified in subsection (1) from the date that the assessment or part of the assessment was paid to the date the refund is approved.

             (4)  Interest shall not be paid under this section when the amount of refund is less than $100.

113/93 s1

Formulae described

        6. (1) The non‑provincial amount taxable of a loan corporation, a trust corporation or a trust and loan corporation is computed in accordance with the following formula:

A = B x E/F

             (2)  The non‑provincial amount taxable of a bank is computed in accordance with the following formula:

A = B x 1/3 (C/S + X/Z)

             (3)  For the purpose of the formulae set out in subsections (1) and (2)

             (a)  "A" means the non‑provincial amount taxable;

             (b)  "B" means the amount taxable;

             (c)  "C" means the aggregate of the salaries and wages paid in a fiscal year by a corporation to employees of its permanent establishments in jurisdictions outside the province;

             (d)  "E" means the gross revenue of a corporation's permanent establishments in jurisdictions outside the province and is equal to the aggregate of the corporation's gross revenue for a fiscal year arising from

                      (i)  loans secured by real property situated outside the province,

                     (ii)  loans not secured by real property and made to persons residing outside the province,

                    (iii)  loans administered by the permanent establishments of the corporation in the jurisdictions outside the province made to persons residing in a jurisdiction in which the corporation has no permanent establishment, but not including loans secured by real property situated in a jurisdiction in which the corporation has a permanent establishment, and

                    (iv)  business conducted at the corporation's permanent establishments in jurisdictions outside the province other than revenue arising from loans;

             (e)  "F" means the total gross revenues of a corporation in all jurisdictions for a fiscal year;

              (f)  "S" means the aggregate of the salaries and wages paid in a fiscal year by a corporation to its employees in all jurisdictions;

             (g)  "X" means 2 times the aggregate amount of loans made by, and the amount of deposits with, the permanent establishments of a bank in jurisdictions outside the province in a fiscal year;

             (h)  "Z" means the aggregate amount of loans made by, and the amount of deposits with, a bank in all jurisdictions for a fiscal year;

              (i)  "aggregate amount of loans" means the aggregate of the amounts outstanding on loans made by a bank, as determined at the close of business on the last day of each month in a fiscal year, divided by 12;

              (j)  "amount of deposits" means the aggregate of the amounts on deposit with a bank, as determined at the close of business on the last day of each month in a fiscal year, divided by 12;

             (k)  "deposits" does not include bonds, stocks, debentures, items in transit and deposits in favour of the Crown in right of Canada;

              (l)  "loans" does not include bonds, stocks, debentures, items in transit and deposits in favour of the Crown in right of Canada; and

            (m)  the "non‑provincial amount taxable" means the portion of a corporation's amount taxable that is used by the corporation in jurisdictions outside the province, as determined in accordance with these regulations.

16/83 ss3&4; 68/86 s2

Forms

        7. The forms under the Act and these regulations shall be prescribed by the minister.

68/86 s3

Repeal

        8. The Financial Corporations Capital Tax Regulations, Newfoundland Regulation 16/83, are repealed.