Statutes of Newfoundland 1992 Chapter 10

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Statutes of Newfoundland 1992

CHAPTER 10 CHAPTER 10

AN ACT TO AMEND THE HEALTH AND POST-SECONDARY EDUCATION TAX ACT
(Assented to June 11, 1992)

Analysis

1. S.3 R&S
Imposition of tax

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

RSN 1990 cH-1 as amended

1. Section 3 of the Health and Post-Secondary Education Tax Act is repealed and the following substituted:

Imposition of tax

3. (1) In this section

(a) "associated corporation" means a corporation which is an associated corporation as defined in section 256 of the Income Tax Act (Canada);

(b) "partnership" means a partnership under the Partnership Act and includes a limited partnership and a joint venture;

(c) "renewable resource industry" means the fishing industry, forestry industry and the agricultural industry in the province; and

(d) "taxable remuneration" means

(i) remuneration in excess of the 1st $100,000 of remuneration paid in each year, or

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

(2) Every employer shall pay monthly from July 1, 1992 to the Crown at the time and in the manner prescribed, a tax at the rate of 2% of taxable remuneration paid to employees of that employer.

(3) Notwithstanding subsection (2), an employer shall pay tax at the rate of 1% of taxable remuneration paid in relation to a renewable resource industry.

(4) Where an employer is

(a) a registered charity for the purpose of the Income Tax Act (Canada); or

(b) considered by the minister to be a private sector non-profit organization,

the remuneration paid to employees at each establishment shall be considered to be paid by a separate person for the purpose of calculating tax.

(5) An employer who is engaged in both a renewable resource industry and another business shall apportion his or her monthly remuneration, for the purpose of applying the rate specified in subsections (2) and (3) during the current year, in accordance with the actual percentages stated in that employer's annual declaration, as prescribed by the regulations, for the immediately preceding year or in that other proportion that the minister may accept or prescribe.

(6) An employer who is engaged in both a renewable resource industry and another business shall file an annual declaration with the minister, at the time and in the manner prescribed, stating the actual amount of remuneration paid in relation to renewable resource industries and in relation to other business as percentages of total remuneration paid for the year and shall calculate the amount of tax that would have been payable had those percentages been known at the beginning of that year and shall pay any additional tax due according to the actual figures or claim a credit or refund.