Statutes of Newfoundland 1992 Chapter 54

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Statutes of Newfoundland 1992

CHAPTER 54 CHAPTER 54

AN ACT TO AMEND THE GASOLINE TAX ACT (NO.3)
(Assented to December 23, 1992)

Analysis

1. S.26 Amdt.
Liability for tax, penalties, etc.

2. S.57 Amdt.
Review of estimated tax

3. RSN 1990 cC-36
Amdt.

4. Commencement

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

RSN 1990 cG-1 as amended

1. Section 26 of the Gasoline Tax Act is amended by adding immediately after subsection (1), the following:

(1.1) A collector who collects money by way of tax under this Act shall deposit the money in a trust account maintained for that purpose with a financial institution authorized by law to accept deposits and shall pay over to the minister the money deposited to the trust account in the manner and at the time prescribed by the regulations.

(1.2) Where a corporation fails to deposit money collected by way of tax into a trust account maintained for that purpose, the directors of the corporation, at the time the corporation was required to deposit the money, are jointly and individually liable, together with the corporation, to pay that amount.

(1.3) A director of a corporation is liable under subsection (1.2) only where

(a) a certificate for the amount of the corporation's liability referred to in that subsection has been filed under section 29 and execution for that amount has been returned unsatisfied in whole or in part;

(b) the corporation has begun liquidation or dissolution proceedings or has been dissolved and the amount of the corporation's liability referred to in subsection (1.2) has not been paid within 6 months after the minister receives a notice of intent to dissolve under section 337 of the Corporations Act or after the commencement of liquidation or dissolution proceedings; or

(c) the corporation has made an assignment or a receiving order has been made against it under the Bankruptcy and Insolvency Act (Canada) and a claim for the amount of the corporation's liability referred to in subsection (1.2) has not been paid within 6 months after the date of the assignment or receiving order.

(1.4) A director of a corporation is not liable for a failure under subsection (1.2) where the director exercised the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would have exercised in comparable circumstances.

(1.5) The minister may assess a person for an amount payable by the person under this section and, where the minister sends a notice of assessment, section 12 applies, with the necessary changes.

(1.6) An assessment under subsection (1.5) of an amount payable by a person who is a director of a corporation shall not be made more than 4 years after the person last ceased to be a director of the corporation.

(1.7) The liability of a director under subsection (1.2) is for the total amount owing by the corporation and is not reduced by a proposal respecting or restructuring of or discharge of the liability of the corporation under the Bankruptcy and Insolvency Act or other legislation.

(1.8) Where a director of a corporation pays an amount in respect of a corporation's liability referred to in subsection (1.2) in liquidation, dissolution or bankruptcy proceedings, the director is entitled to the same priority as the Crown would have been entitled to had the amount not been paid, subject to the Crown's liability being satisfied, and, where a certificate that relates to the amount has been registered, the director is entitled to an assignment of the certificate to the extent of the director's payment, and the minister is empowered to make that assignment.

(1.9) A director who satisfies a claim under this section is entitled to contribution from the other directors who were liable for the claim.

2. Section 57 of the Act is amended by renumbering it as subsection 57(1) and by adding immediately after subsection (1) the following:

(2) A person who is dissatisfied with the assessment contained in the estimate of tax by the minister under subsection 26(1.5) may, within 30 days of receiving the written notice under that section, apply to the minister for a review.

RSN 1990 cC-36 Amdt.

3. (1) Paragraph 350(a) of the Corporations Act is amended by adding immediately after the word "liquidator" the words "and to the Minister of Finance".

(2) Paragraph 393(2)(b) of the Act is amended by deleting the word "and" at the end of subparagraph (iv) and by adding immediately after subparagraph (iv) the following:

(iv.1) send to the Minister of Finance a copy of the statement, and

Commencement

4. This Act comes into force on a day to be proclaimed by the Lieutenant-Governor in Council.