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Statutes of Newfoundland 2000


Statutes of Newfoundland 2000 Chapter I-1.1

CHAPTER I-1.1

AN ACT RESPECTING INCOME TAX

(Assented to December 14, 2000)

Analysis

1. Short title

PART I
INTERPRETATION

2. Interpretation

3. Application of federal provisions and amendment

4. Exemption from tax

PART II
INCOME TAX

5. Definitions

6. Liability for tax

7. Amount of tax payable

8. CPP/QPP disability benefits and other lump sum payments for previous years

9. Personal credits

10. Charitable and other gifts

11. Medical expense credit

12. Credit for mental or physical impairment

13. Tuition credit

14. Education credit

15. Unused tuition and education tax credits

16. Interest on student loan tax credit

17. EI premium and CPP contribution credit

18. Transfer of tax credits

19. Minimum tax carry-over

20. Deduction for taxable dividends

21. Overseas employment tax credit

22. Part-year residents

23. Ordering of credits

24. Credits in separate returns

25. Tax payable by non-resident

26. Credits in year of bankruptcy

27. Tax payable by inter vivos trust

28. Bankrupt individuals

29. Tax on split income

30. Minimum tax

31. Multi-jurisdictional and non-resident individuals

32. Surtax

33. Foreign tax deduction

34. Harmonized sales tax credit

35. No set off

36. Date on which amount applied

37. Application

38. Newfoundland and Labrador child tax benefit

39. Capital gains refund to mutual fund trust

40. Corporation tax

41. Manufacturing and processing profits deduction

42. Research and development tax credit

43. Capital gains refund to mutual fund corporations

44. Foreign tax credits

45. Film or video tax credit

46. Equity tax credit

47. Political contribution deduction

48. Tax not payable

49. Returns of income, assessments and withholding

50. Reassessment

51. Farmers and fishers

52. Instalments by other individuals

53. Payment by corporations

54. Returns, payments and interest

55. Computing instalments

56. Amount on which instalment computed

57. Penalties

58. Repeated failures

59. Late or deficient instalments

60. Refunds

61. Objections

62. Appeals

63. Reply to appeal

64. Trial

65. Appeals

66. Practice and procedure

PART III
ADMINISTRATION AND ENFORCEMENT

67. Administration

68. Regulations

69. Debts due to Crown

70. Certificates

71. Minister's warrant

72. Acquisition of debtor's property

73. Payment of money seized from tax debtor

74. Direction to seize chattels

75. Taxpayers leaving Canada

76. Money withheld

77. Director's liability

78. Books and records

79. Inspections, privileges, etc.

80. Penalty for failure to comply with regulations

81. Offence and penalty

82. Offence

83. Actions or suits

84. Revealing confidential information

85. Offence by corporation

86. No power to decrease punishment

87. Information or complaint

88. General anti-avoidance rule

PART IV
COLLECTION OF TAX

89. Collection agreement

90. Application of payment

91. No action against persons withholding tax

92. Deduction at source

93. Non-agreeing provinces

94. Reciprocal enforcement of judgments

PART V
REPEAL

95. RSN1990 cI-1 Rep.

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


Short title

1. This Act may be cited as the Income Tax Act, 2000.

PART I
INTERPRETATION

Interpretation

2. (1) In this Act

(a) "agreeing province" means a province that has entered into an agreement with the Government of Canada under which the Government of Canada shall collect taxes payable under that province's income tax statute and shall make payments to that province in respect of the taxes so collected;

(b) "collection agreement" means an agreement entered into under subsection 89(1);

(c) "court" means the Trial Division of the Supreme Court;

(d) "Department of Finance" means

(i) the Department of Finance of the province, or

(ii) where a collection agreement is in effect

(A) in relation to the remittance of an amount as or on account of tax payable under this Act, the Receiver General of Canada, and

(B) in relation to other matters, the Canada Customs and Revenue Agency;

(e) "deputy head" and "assistant deputy head" mean

(i) the Deputy Minister of Finance of the province,

(ii) the Assistant Deputy Minister of Finance of the province, and

(iii) where a collection agreement is in effect, the Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act (Canada);

(f) "federal Act" means the Income Tax Act (Canada);

(g) "federal regulations" means the regulations made under the federal Act;

(h) "income tax statute" means, in relation to an agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act;

(i) "individual" means a person other than a corporation and, except in section 47, includes a trust or estate;

(j) "loss" means a loss as determined in accordance with and for the purpose of the federal Act;

(k) "minister" means

(i) the Minister of Finance of the province, or

(ii) where a collection agreement is in effect, means

(A) in relation to the remittance of an amount as or on account of tax payable under this Act, the Receiver General of Canada, and

(B) in relation to other matters, the Minister of National Revenue for Canada;

(l) "Minister of National Revenue" means the Minister of National Revenue for Canada, but in a provision of the federal Act that applies for the purpose of this Act, a reference to the Minister of National Revenue shall be construed as a reference to the Minister of Finance;

(m) "permanent establishment" means permanent establishment as defined in the federal regulations and where the federal regulations contain more than one definition, the one that applies is the one that most closely resembles its use for the purpose of this Act;

(n) "prescribed" means

(i) in the case of a form, the information to be given on a form or the manner of filing a form, authorized by the Minister of Finance or the Minister of National Revenue for Canada,

(ii) in the case of the manner of making or filing an election, authorized by the Minister of Finance or the Minister of National Revenue for Canada,

(iii) where the word is used in a provision of the federal Act that applies for the purpose of this Act, what is prescribed within the meaning assigned by subsection 248(1) of the federal Act, and

(iv) in other cases, prescribed by the regulations;

(o) "Receiver General" means the Receiver General of Canada, but in a provision of the federal Act that applies for the purpose of this Act, a reference to the Receiver General shall be read as a reference to the Minister of Finance;

(p) "regulations" means regulations made by the Lieutenant-Governor in Council under this Act;

(q) "return" means a return of income required to be filed under this Act;

(r) "tax" means the income tax payable under and in accordance with this Act; and

(s) "taxation year of a person" means the period determined under the federal Act as a taxation year.

(2) A reference in this Act to "last day of the taxation year" shall, in the case of an individual who resided in Canada in the taxation year but ceased to reside in Canada before the last day of the taxation year, be considered to be a reference to the last day in the taxation year on which he or she resided in Canada.

(3) The tax payable by a taxpayer under this Act or under Part I of the federal Act means the tax payable by him or her as fixed by assessment or reassessment subject to variation on objection or on appeal in accordance with this Act, or Part I of the federal Act.

(4) For the purpose of this Act, except where they vary from the definitions contained in this section, the definitions and interpretations contained in or made by the federal Act or regulations apply.

(5) In a case of doubt, the provisions of this Act shall be applied and interpreted in a manner consistent with similar provisions of the federal Act.

(6) Subsections 104(1) and (2) of the federal Act apply for the purpose of this Act.

(7) Subsection 248(11) of the federal Act applies for the purpose of this Act.

(8) Section 257 of the federal Act applies for the purpose of this Act.

(9) Where a provision, in this subsection referred to as "that section", of the federal Act or the federal regulations is made applicable for the purpose of this Act, that section, as amended from time to time before or after the commencement of this subsection, applies with those changes that the circumstances require for the purpose of this Act as though it had been enacted as a provision of this Act and in applying that section for the purpose of this Act, in addition to other changes required by the circumstances,

(a) a reference in that section to tax under Part I of the federal Act shall be read as a reference to tax under this Act;

(b) where that section contains a reference to tax under Parts I.1 to XIV of the federal Act, that section shall be read without reference in it to tax under those Parts and without reference to a portion of that section which applies only to or in respect of tax under those Parts;

(c) a reference in that section to a particular provision of the federal Act that is the same as or similar to a provision of this Act shall be read as a reference to the provision of this Act;

(d) a reference in that section to a particular provision of the federal Act that applies for the purpose of this Act shall be read as a reference to the particular provision as it applies for the purpose of this Act;

(e) where that section contains a reference to one or more of Parts I.1 to XIV of the federal Act or to a provision in those Parts, that section shall be read without reference in it to that Part or without reference to that provision and without reference to a portion of that section that applies only because of the application of those Parts or the application of a provision in those Parts;

(f) where that section contains a reference to the Bankruptcy and Insolvency Act, that section shall be read without reference in it to the Bankruptcy and Insolvency Act;

(g) a reference in that section to a federal regulation that applies for the purpose of this Act shall be read as a reference to the regulation as it applies for the purpose of this Act;

(h) a reference in that section to "under this Act" or "under an Act of a province with which the minister has entered into an agreement for the collection of taxes payable to the province under that Act" shall be read as a reference to under this Act; and

(i) a reference in that section to a word or expression set out in the left hand column of the following table shall be read as a reference to the word or expression set out opposite to it in the right hand column of the following table:

Table

Her Majesty

Her Majesty in right of the Province of Newfoundland

Canada

Newfoundland

Receiver General

Minister of Finance

Minister

Minister of Finance

Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act (Canada)

deputy head

Deputy Attorney General of Canada

Deputy Attorney General of Newfoundland

the Tax Court of Canada

the Supreme Court of Newfoundland

Tax Court of Canada Act

Judicature Act

the Federal Court of Canada

the Supreme Court of Newfoundland

Federal Court Act

Judicature Act

Registrar of the Tax Court of Canada

Registrar of the Supreme Court of Newfoundland

Registry of the Federal Court

Registry of the Supreme Court of Newfoundland

Application of federal provisions and amendment

3. (1) In this section,

(a) "federal amendment" means an amendment to a provision of the federal Act that applies for the purpose of this Act;

(b) "federal application rule" means a provision of an Act of Parliament that makes a federal provision, a federal amendment, or the repeal of a federal provision, apply

(i) to specified taxation years,

(ii) to specified fiscal periods,

(iii) after a specified time, or

(iv) to transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods; and

(c) "federal provision" means a provision of the federal Act that applies for the purpose of this Act.

(2) Where a federal application rule governs the application of a federal provision, for the purpose of applying the federal provision for the purpose of this Act, the provision shall be applied in accordance with the federal application rule as though the Legislature had enacted that rule to govern the application of the provision for the purpose of this Act.

(3) Where a federal application rule governs the application of a federal amendment amending a federal provision, for the purpose of applying that provision for the purpose of this Act, that provision shall be applied as though the federal amendment had been enacted by the Legislature and, at the time of the enactment, the Legislature had enacted that rule to govern the application of the amendment for the purpose of this Act.

(4) Where a federal provision or a federal amendment comes into force, or is considered to come into force, on a particular day, and no federal application rule governs its application, the provision or amendment is considered, for the purpose of applying it for the purpose of this Act, to come into force on that day.

(5) Where a federal provision is repealed and another provision is not substituted for it, the federal provision ceases to apply for the purpose of this Act

(a) where the repeal is governed by a federal application rule, in accordance with that rule; and

(b) where the repeal is not governed by a federal application rule, on the day the repeal comes into force.

(6) For the purpose of this Act, where a particular federal provision is replaced by another provision, or is repealed and another provision substituted for it, the other provision is considered to be a continuation of the particular federal provision and the replacing or the repeal and substitution is considered to be an amendment to the particular federal provision.

Exemption from tax

4. No tax is payable under this Act by a person for a period when

(a) no tax is payable under Part I of the federal Act for the period on the person's taxable income because of subsection 149(1) of the federal Act; or

(b) that person was a non-resident-owned investment corporation.

PART II
INCOME TAX

Definitions

5. In sections 6 to 33,

(a) "appropriate percentage" for a taxation year means the lowest percentage referred to in section 7 that is applicable in determining tax payable under this Part for the year;

(b) "highest percentage" for a taxation year means the highest percentage referred to in section 7 that is applicable in determining tax payable under this Part for the year;

(c) "income earned in the taxation year in the province" means income earned in the year in the province as determined in accordance with federal regulations made for the purpose of the definition "income earned in the year in a province" in subsection 120(4) of the federal Act;

(d) "income earned in the taxation year outside the province" means income for the year minus income earned in the taxation year in the province;

(e) "income for the year" means

(i) in the case of an individual resident in Canada during only part of the taxation year in respect of whom section 114 of the federal Act applies or in the case of an individual not resident in Canada at any time in the taxation year, the individual's income for the year as computed under subsection 120(3) of the federal Act, and

(ii) in the case of any other individual, the individual's income for the year as determined in accordance with, and for the purpose of, the federal Act;

(f) "provincial percentage" for a taxation year means 62.2%; and

(g) "tax payable under the federal Act" by an individual in respect of a taxation year means the amount determined under the definition "tax otherwise payable under this Part" in subsection 120(4) of the federal Act in respect of the individual for the year.

Liability for tax

6. (1) An income tax shall be paid as required by this Act for each taxation year by every individual

(a) who was resident in the province on the last day of the taxation year; or

(b) who, not being resident in the province on the last day of the taxation year, had income earned in the taxation year in the province.

(2) Notwithstanding a provision contained in a public or private Act or an agreement, whether enacted or entered into before or after December 15, 1961, granting or providing for the exemption of a corporation named in the Act or agreement from payment of taxes, whether or not those taxes are specified, an income tax shall be paid as required for each taxation year by every corporation that maintained a permanent establishment in the province at any time in the year.

Amount of tax payable

7. The tax payable under this Part for a taxation year by an individual on the individual's taxable income or taxable income earned in Canada, in sections 6 to 33 referred to as the "taxable income", for the 2001 and subsequent taxation years is

(a) 10.57% of the taxable income if the taxable income does not exceed $29,590;

(b) $3,128 plus 16.16% of the amount by which the taxable income exceeds $29,590 if the taxable income exceeds $29,590 and does not exceed $59,180; and

(c) $7,909 plus 18.02% of the amount by which the taxable income exceeds $59,180.

CPP/QPP disability benefits and other lump sum payments for previous years

8. There shall be added in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula

A x B

where

A is the provincial percentage; and

B is the total of,

(a) the amount added under section 120.3 of the federal Act for the purpose of computing the individual's tax payable under Part I of the federal Act for the taxation year;

(b) the amount added under section 120.31 of the federal Act for the purpose of computing the individual's tax payable under Part I of the federal Act for the taxation year; and

(c) the amount added under section 40 of the Income Tax Application Rules (Canada) for the purpose of computing the individual's tax payable under Part I of the federal Act for the taxation year.

Personal credits

9. (1) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula

A x B

where

A is the appropriate percentage for the year; and

B is the total of,

(a) in the case of an individual who at any time in the year is a married person or common law partner who supports the individual's spouse or common law partner and is not living separate and apart from the spouse or common law partner by reason of a breakdown of their marriage or common law partnership, an amount equal to the total of

(i) $7,410, and

(ii) the amount determined by the formula

$6,055 - (C - $606)

where

C is the greater of $606 and the income of the individual's spouse or common law partner for the year or, where the individual and the individual's spouse or common law partner are living separate and apart at the end of the year because of a breakdown of their marriage or common law partnership, the spouse's or common law partner's income for the year while married or in a common law partnership and not so separated;

(b) in the case of an individual who does not claim a deduction for the year because of paragraph (a) and who, at any time in the year,

(i) is an unmarried person, or a married person or a person in a common law partnership who neither supported nor lived with the spouse or common law partner and is not supported by the spouse or common law partner, and

(ii) whether alone or jointly with one or more other persons, maintains a self-contained domestic establishment in which the individual lives and actually supports in that establishment a person who, at that time, is

(A) except in the case of a child of the individual, resident in Canada,

(B) wholly dependent for support on the individual, or the individual and the other person or persons,

(C) related to the individual, and

(D) except in the case of a parent or grandparent of the individual, either under 18 years of age or so dependent by reason of mental or physical infirmity,

an amount equal to the total of

(iii) $7,410, and

(iv) the amount determined by the formula

$6,055 - (D - $606)

where

D is the greater of $606 and the dependent person's income for the year;

(c) except in the case of an individual entitled to a deduction because of paragraph (a) or (b), $7,410;

(d) in the case of an individual who, at any time in the year alone or jointly with one or more persons, maintains a self-contained domestic establishment which is the ordinary place of residence of the individual and of a particular person

(i) who has attained the age of 18 years before that time,

(ii) who is

(A) the individual's child or grandchild, or

(B) resident in Canada and is the parent, grandparent, brother, sister, aunt, uncle, nephew or niece of the individual or of the individual's spouse or common law partner, and

(iii) who is

(A) the individual's parent or grandparent and has attained the age of 65 years before that time, or

(B) dependent on the individual because of the particular person's mental or physical infirmity,

the amount determined by the formula

$13,853 - D.1

where

D.1 is the greater of $11,500 and the particular person's income for the year;

(e) for each dependant of the individual for the year who

(i) attained the age of 18 years before the end of the year, and

(ii) was dependent on the individual because of mental or physical infirmity,

the amount determined by the formula

$7,410 - E

where

E is the greater of $5,057 and the dependant's income for the year; and

(f) in the case of an individual entitled to a deduction in respect of a person because of paragraph (b) and who would also be entitled, but for paragraph 118(4)(c) of the federal Act, as that provision applies to this Act, to a deduction because of paragraph (d) or (e) in respect of the person, the amount by which the amount that would be determined under paragraph (d) or (e), exceeds the amount determined under paragraph (b) in respect of the person.

(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who, before the end of the year, has attained the age of 65 years, there may be deducted the amount determined by the formula

A x ($3,482 - B)

where

A is the appropriate percentage for the year; and

B is 15% of the amount, if any, by which the individual's income for the year would exceed $25,921 if no amount were included in respect of a gain from a disposition of property to which section 79 of the federal Act applies in computing that income.

(3) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula

A x B

where

A is the appropriate percentage for the year; and

B is the lesser of $1,000 and

(a) where the individual has attained the age of 65 years before the end of the year, the pension income received by the individual in the year; and

(b) where the individual has not attained the age of 65 years before the end of the year, the qualified pension income received by the individual in the year.

(4) Subsections 118(4), (5) and (6) of the federal Act apply to subsection (1) and subsections 118(7) and (8) of the federal Act apply to subsection (3).

Charitable and other gifts

10. (1) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted such amount as the individual claims not exceeding the amount determined by the formula

(A x B) + [C x (D - B)]

where

A is the appropriate percentage for the year;

B is the lesser of $200 and the individual's total gifts for the year;

C is the highest percentage for the year; and

D is the individual's total gifts for the year as set out in section 118.13 of the federal Act.

(2) Section 118.1 and subsection 143(3.1) of the federal Act apply for the purpose of this Act, except that subsection (1) of this section applies instead of subsection 118.1(3) of the federal Act.

Medical expense credit

11. (1) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula

A x (B - C) - D

where

A is the appropriate percentage for the year;

B is the total of the individual's medical expenses in subsection 118.2(1) of the federal Act that are proven by filing receipts with the Minister of National Revenue that were not included in determining an amount under this subsection or a section that is similar to this section of an income tax statute or similar enactment of a province for a preceding taxation year or under section 118.2 or subsection 122.51(2) of the federal Act for the 2000 or preceding taxation years and that were paid by either the individual or the individual's legal representative,

(a) where the individual died in the year, within any period of 24 months that includes the day of death; and

(b) in any other case, within any period of 12 months ending in the year;

C is the lesser of $1,614 and 3% of the individual's income for the year; and

D is 42.3% of the total of all amounts each of which is the amount, if any, by which

(c) the income for the year of a person other than the individual and the individual's spouse in respect of whom an amount is included in computing the individual's deduction under this section for the year,

exceeds

(d) the amount used under paragraph (c) of the description of B in subsection 9(1) for the year.

(2) Section 118.2 of the federal Act applies for the purpose of this Act, except that subsection (1) of this section applies instead of subsection 118.2(1) of the federal Act.

Credit for mental or physical impairment

12. (1) Where an individual is entitled to deduct an amount under subsection 118.3(1) of the federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the federal Act, for the purpose of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula

A x B

where

A is the appropriate percentage for the year; and

B is $4,233.

(2) Sections 118.3 and 118.4 of the federal Act apply for the purpose of this Act, except that subsection (1) of this section applies instead of subsection 118.3(1) of the federal Act.

Tuition credit

13. Section 118.5 of the federal Act applies for the purpose of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purpose of this Part, for the purpose of this Act.

Education credit

14. (1) Where an individual is entitled to deduct an amount under subsection 118.6(2) of the federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the federal Act, for the purpose of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula

A x B

where

A is the appropriate percentage for the year; and

B is the total of the products obtained when

(a) $200 is multiplied by the number of months in the year during which the individual is enrolled in a qualifying educational program as a full-time student at a designated educational institution; and

(b) $60 is multiplied by the number of months in the year, other than months described in paragraph (a), each of which is a month during which the individual is enrolled at a designated educational institution in a specified educational program that provides that each student in the program spend not less than 12 hours in the month on courses in the program.

(2) Section 118.6 of the federal Act applies for the purpose of this Act, except that subsection (1) of this section applies instead of subsection 118.6(2) of the federal Act.

Unused tuition and education tax credits

15. (1) Section 118.61 of the federal Act applies for the purpose of this Act.

(2) Notwithstanding subsection (1), for the purpose of section 118.61 of the federal Act, as that section applies for the purpose of this Act, an individual's unused tuition and education tax credits at the end of the 2000 taxation year shall be the amount equal to the provincial percentage of the individual's unused tuition and education tax credits at the end of the 2000 taxation year as determined under section 118.61 of the federal Act for the purpose of computing the individual's tax payable under Part I of the federal Act for the taxation year.

(3) Notwithstanding subsection (1) but subject to subsection (2), for the purpose of section 118.61 of the federal Act as that section applies for the purpose of this Act, where an individual did not reside in the province on the last day of the taxation year for the preceding taxation year, the individual's unused tuition and education tax credits at the end of the preceding taxation year shall be equal to the lesser of

(a) the amount equal to the provincial percentage of the individual's unused tuition and education tax credits at the end of the preceding taxation year as determined under section 118.61 of the federal Act for the purpose of computing the individual's tax payable under Part I of the federal Act for the taxation year; and

(b) the amount equal to the individual's unused tuition and education tax credits at the end of the preceding taxation year as determined under a section, that is similar to section 118.61 of the federal Act, of an income tax statute or similar enactment, of the province, if any, in which the individual resided on the last day of the taxation year for the preceding taxation year.

Interest on student loan tax credit

16. Section 118.62 of the federal Act applies for the purpose of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purpose of this Part, for the purpose of this Act.

EI premium and CPP contribution credit

17. Section 118.7 of the federal Act applies for the purpose of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purpose of this Part, for the purpose of this Act.

Transfer of tax credits

18. (1) Sections 118.8 and 118.81 of the federal Act apply for the purpose of this Act, except that the reference to $850, or to the amount that it is amended to read, in subparagraph (ii) of the description of A in paragraph 118.81(a) of the federal Act shall be read as a reference to $529 for the purpose of this Act.

(2) Section 118.9 of the federal Act applies for the purpose of this Act.

(3) Notwithstanding subsections (1) and (2), for the purpose of section 118.81 of the federal Act, as that section applies for the purpose of this Act, where a person did not reside in the province on the last day of the taxation year, the tuition and education tax credits transferred for the taxation year by the person to an individual shall be equal to the lesser of

(a) the amount equal to the provincial percentage of the amount determined in respect of the person for the taxation year under section 118.61 of the federal Act for the purpose of computing the individual's tax payable under Part I of the federal Act for the taxation year;

(b) the amount determined in respect of the person for the taxation year as determined under a section, that is similar to section 118.61 of the federal Act, of an income tax statute or similar enactment, of the province in which the person resided on the last day of the taxation year; and

(c) the amount determined in respect of the person for paragraph 118.81(b) of the federal Act as that section applies for the purpose of this Act for the taxation year.

(4) Notwithstanding subsections (1) and (2), for the purpose of section 118.8 of the federal Act as that section applies for the purpose of this Act, where in a taxation year an individual's spouse or common law partner did not reside in the province on the last day of the taxation year,

(a) the amount for B in the formula in section 118.8 of the federal Act, as that section applies for the purpose of this Act, for the individual for the taxation year shall be equal to the lesser of

(i) the amount equal to the provincial percentage of the amount determined for B in the formula in section 118.8 of the federal Act for the purpose of computing the individual's tax payable under Part I of the federal Act for the taxation year, and

(ii) the amount that would be determined for the individual for B in the formula in a section that is similar to section 118.8 of the federal Act, of an income tax statute, or similar enactment, of the province in which the individual's spouse or common law partner resided on the last day of the taxation year if the individual resided in that province on the last day of the taxation year; and

(b) the amount for C in the formula in section 118.8 of the federal Act, as that section applies for the purpose of this Act, for the individual for the taxation year shall be equal to the lesser of

(i) the amount equal to the provincial percentage of the amount determined for C in the formula in section 118.8 of the federal Act for the purpose of computing the individual's tax payable under Part I of the federal Act for the taxation year, and

(ii) the amount that would be determined for the individual for C in the formula in a section that is similar to section 118.8 of the federal Act, of an income tax statute, or similar enactment of the province in which the individual's spouse or common law partner resided on the last day of the taxation year if the individual resided in that province on the last day of the taxation year.

Minimum tax carry-over

19. Where tax is payable under section 30 for the preceding year, there may be deducted in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula

A x B

where

A is the provincial percentage; and

B is the amount that the individual may deduct for the taxation year under section 120.2 of the federal Act for the purpose of computing the individual's tax payable under Part I of the federal Act.

Deduction for taxable dividends

20. Section 121 of the federal Act applies for the purpose of this Act, except that the reference to "2/3" (or to the fraction that it is amended to read) in that section of the federal Act shall be read as a reference to 45% for the purpose of this Act.

Overseas employment tax credit

21. For the purpose of computing tax payable under this Part by an individual for a taxation year, there may be deducted an amount equal to the provincial percentage of the amount that the individual may deduct under section 122.3 of the federal Act for that taxation year.

Part-year residents

22. Section 118.91 of the federal Act applies for the purpose of this Act.

Ordering of credits

23. Section 118.92 of the federal Act applies for the purpose of this Act.

Credits in separate returns

24. Section 118.93 of the federal Act applies for the purpose of this Act.

Tax payable by non-resident

25. Section 118.94 of the federal Act applies for the purpose of this Act.

Credits in year of bankruptcy

26. Section 118.95 of the federal Act applies for the purpose of this Act.

Tax payable by inter vivos trust

27. Section 122 of the federal Act applies for the purpose of this Act, except that the reference to "29%", or to the percentage that it is amended to read, in subsection 122(1) of the federal Act shall be read, for the purpose of this Act, as a reference to the "highest percentage".

Bankrupt individuals

28. Subsection 128(2) of the federal Act applies for the purpose of this Act.

Tax on split income

29. Section 120.4 of the federal Act applies for the purpose of this Act, except that the reference to "29%", or to the percentage that it is amended to read, in subsection 120.4(2) of the federal Act shall be read, for the purpose of this Act, as a reference to the "highest percentage".

Minimum tax

30. Where an individual is required to pay tax under section 127.5 of the federal Act in respect of a taxation year, there shall be added to the individual's tax payable under this Part for the taxation year an amount determined by the formula

A x B

where

A is the provincial percentage; and

B is the amount that would be the individual's additional tax for the taxation year determined under subsection 120.2(3) of the federal Act.

Multi-jurisdictional and non-resident individuals

31. Notwithstanding sections 5 to 30, the tax payable under sections 6 to 30 for a taxation year by an individual

(a) who resided in the province on the last day of the taxation year but had income earned in the taxation year outside the province; or

(b) who did not reside in the province on the last day of the taxation year but had income earned in the taxation year in the province,

shall be the amount determined by the formula

A x B
C

where

A is the tax otherwise payable by the individual under sections 6 to 30;

B is the individual's income earned in the taxation year in the province; and

C is the individual's income for the year.

Surtax

32. In addition to the income tax payable, computed in accordance with sections 6 to 31, by an individual for a taxation year, every individual shall pay a personal income surtax in respect of the taxation year equal to 9% of the amount by which the tax computed under sections 6 to 31 for the taxation year exceeds $7,032.

Foreign tax deduction

33. (1) Where an individual resided in the province on the last day of a taxation year and had income for the year that included income earned in a country other than Canada in respect of which non-business-income tax was paid by the individual to the government of a country other than Canada, the individual may deduct from the tax payable by the individual under this Act for that taxation year an amount equal to the lesser of

(a) the amount, if any, by which any non-business-income tax paid by the individual for the year to the government of the other country exceeds the aggregate of all amounts, each of which is an amount claimed by the individual as a deduction for that year under subsection 126(1) or subsection 180.1(1.1) of the federal Act; and

(b) that proportion of the tax otherwise payable under this Act for that taxation year that

(i) the aggregate of the taxpayer's incomes from sources in that country, excluding any portion of it that was deductible by the individual for the year under subparagraph 110(1)(f)(i) of the federal Act or in respect of which an amount was deductible by the individual under section 110.6 of the federal Act

(A) for that year, if section 114 of the federal Act is not applicable, or

(B) if section 114 of the federal Act is applicable, for the period or periods in the year referred to in paragraph (a) of that section,

on the assumption that

(C) no businesses were carried on by the individual in that country,

(D) no amount was deducted under subsection 91(5) of the federal Act in computing the individual's income for the year, and

(E) the individual's income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect of it under paragraph (c) and (d) of subsection (1) of section 122.3 of the federal Act for the year,

is of

(ii) the taxpayer's income earned in the province

(A) in the year, if section 114 of the federal Act is not applicable, or

(B) if section 114 of the federal Act is applicable, in the period or periods of the year referred to in paragraph (a) of that section,

minus any amounts deducted by the individual under section 110.6 or paragraph 111(1)(b) of the federal Act or deductible by the individual under paragraph 110(1)(d), (d.1), (d.3), (f) or (j) or section 112 of the federal Act for the year or in respect of such period or periods.

(2) For the purpose of subsection (1) and paragraph 44(1)(b), the non-business-income tax paid by a taxpayer to the government of a country other than Canada in respect of the taxpayer's income for a taxation year is the non-business-income tax paid by the taxpayer to the government of that country in respect of that year as determined under the definition "non-business-income tax" in subsection 126(7) of the federal Act.

(3) For the purpose of subsection (1), "tax payable" and "tax otherwise payable" by a taxpayer for a taxation year mean the amount that would, but for section 127.4 of the federal Act, be the tax otherwise payable under this Act by the taxpayer for the taxation year.

Harmonized sales tax credit

34. (1) In this section

(a) "adjusted income", "qualified dependant" and "qualified relation" have the meanings assigned to them under subsection 122.5(1) of the federal Act; and

(b) "eligible individual" for a taxation year means an individual, other than a trust, who at the end of December 31 of that year is resident in the province and is

(i) married or in a common law partnership,

(ii) a parent of a child, or

(iii) 19 years of age or over.

(2) Notwithstanding subsection (1), a person is not considered to be an eligible individual or a qualified relation or qualified dependant of an individual for a taxation year where that person

(a) dies before the end of the year;

(b) at the end of the year is a person described in paragraph 149(1)(a) or (b) of the federal Act; or

(c) at the end of the year is confined to a prison or similar institution and has been so confined for a period of or periods, the total of which in the year was more than 6 months.

(3) Where a return of income is filed under Part I of the federal Act for a taxation year in respect of an eligible individual and that individual has applied under subsection 122.5(3) of the federal Act, the amount calculated under subsection (4) shall be considered to be an amount paid by the individual on account of the individual's tax payable under this Act for that year during the month of October of the immediately following taxation year.

(4) The amount referred to in subsection (3) shall be the total of

(a) the amount by which the total of

(i) $40,

(ii) $40 for a person who is the qualified relation of the individual for the year, and

(iii) the product obtained when $60 is multiplied by the number of qualified dependants of the individual for the year,

exceeds

(iv) 5% of the amount by which the individual's adjusted income for the year exceeds $15,000; and

(b) the amount by which the total of

(i) $200 for an eligible individual who is 64 years of age or over at any time in the year, and

(ii) $200 for a qualified relation who is 64 years of age or over at any time in the year,

exceeds

(iii) 2.5% of the amount by which the individual's adjusted income for the year exceeds $12,000 if either the eligible individual or the qualified relation is 64 years of age or over at any time in the year, and

(iv) 5% of the amount by which the individual's adjusted income for the year exceeds $12,000 if both the eligible individual and qualified relation are 64 years of age or over at any time in the year.

(5) Subsection (3) shall not apply to a return of income filed by an individual under subsection 70(2), paragraph 104(23)(d) or 128(2)(e) or subsection 150(4) of the federal Act.

(6) Notwithstanding subsection (3),

(a) where an individual is a qualified relation of another individual for a taxation year, only the individual who applied under subsection 122.5(3) of the federal Act and received an amount considered under that subsection to be an amount paid by that individual on account of that individual's tax payable under that Act for that year is eligible to be paid the amount considered under subsection (4) of this section to be an amount paid by the individual on account of his or her tax payable under this Act for that year; and

(b) an amount is not considered to be paid under that subsection by an individual for a taxation year during the month of October of the immediately following taxation year where the individual

(i) died before that month,

(ii) was not resident in Canada at the beginning of that month, or

(iii) was not resident in the province at the beginning of the month of June of the immediately following taxation year.

(7) Notwithstanding paragraph (6)(b), where a person dies in a taxation year, upon application made under subsection 122.5(6) of the federal Act by an individual who

(a) is the deceased individual's qualified relation for the taxation year; and

(b) is not an individual to whom that paragraph applies,

each amount that, but for that paragraph, would be considered under subsection (4) to be an amount paid by the deceased individual on account of the individual's tax payable under this Act for that year is considered to be an amount paid by the individual on account of the individual's tax payable under this Act for that year.

(8) For the purpose of this section, where, in a taxation year, an individual becomes bankrupt, the individual's income for the year shall include his or her income for the taxation year that begins on January 1 of the calendar year that includes the date of the bankruptcy.

No set off

35. (1) Notwithstanding section 60 of this Act, subsection 164(2) of the federal Act does not apply to an amount considered under subsection 34(4) of this Act to be an amount paid by an individual on account of his or her tax payable under this Act for a taxation year.

(2) Subsection (1) does not apply where the taxpayer's liability referred to in subsection 164(2) of the federal Act arose from the operation of paragraph 160.1(1)(a) of the federal Act with respect to an amount refunded to the taxpayer in excess of the amount to which the taxpayer was entitled under subsection 34(4) of this Act.

Date on which amount applied

36. Where a taxpayer has requested that an amount, considered under subsection 34(4) of this Act to be an amount paid by an individual on account of his or her tax payable under this Act for a taxation year, be applied to a liability of the taxpayer and the taxpayer's return of income for the year is filed on or before the day it was required by section 150 of the federal Act to be filed, the amount shall be considered to have been applied on the day on which it would have been refunded if the taxpayer was not liable to make a payment to Her Majesty in right of Canada.

Application

37. For the purpose of applying paragraph 2(9)(c) of this Act, section 122.5 of the federal Act is considered to be the same as or similar to section 34 of this Act.

Newfoundland and Labrador child tax benefit

38. (1) In this section

(a) "adjusted income", "base taxation year", "cohabiting spouse", "eligible individual", "qualified dependant" and "return of income" have the meanings assigned to them under section 122.6 of the federal Act; and

(b) "Newfoundland and Labrador child benefit" means, with respect to an eligible individual, the amount of an overpayment as calculated according to the formula prescribed under paragraph 68(1)(e).

(2) Notwithstanding paragraph 2(9)(i), in this section a reference to "Canada" in the definitions of "eligible individual" and "return of income", and in paragraph 122.61(3)(a) and in the preamble to subsection 122.61(3) of the federal Act, shall not be read as a reference to Newfoundland.

(3) An overpayment in the amount of the Newfoundland and Labrador child benefit on account of an individual's liability under this Act for a taxation year is considered to have arisen during a month in relation to which the taxation year is the base taxation year, where

(a) the individual has filed a return of income for that year;

(b) if the minister demands, the cohabiting spouse, at the end of the taxation year, has filed a return of income for that year; and

(c) the individual was resident in the province immediately before and on the first day of that month.

(4) No overpayment is considered to have arisen under this section in a month before July 1, 1999.

(5) Subsection 122.61(2), paragraph 122.61(3)(a), subsection 122.61(3.1) and subsections 122.62(1), (2), (4), (5) and (6) of the federal Act apply for the purpose of this section.

(6) A refund of an amount considered to be an overpayment under this section

(a) cannot be charged or given as security;

(b) cannot be assigned except under a prescribed Act;

(c) cannot be garnished or attached;

(d) is exempt from execution and seizure; and

(e) cannot be retained by way of deduction or set-off under the Financial Administration Act.

(7) The minister may specify a form to be used for the purpose of this section.

Capital gains refund to mutual fund trust

39. (1) A mutual fund trust that is entitled to a refund under section 132 of the federal Act for a taxation year is entitled to receive, at the time and in the manner provided in section 132 of the federal Act for the refund under that section, a capital gains refund for the taxation year equal to,

(a) where the mutual fund trust had no income earned in the taxation year outside the province, the product of the amount of the refund for the taxation year under section 132 of the federal Act multiplied by the percentage referred to in paragraph 5(f) to be used in computing the tax payable by the mutual fund trust under this section for the taxation year; or

(b) where the mutual fund trust had income earned in the taxation year outside the province, that proportion of the amount that would be determined under paragraph (a), if all income earned in the taxation year by the mutual fund trust had been earned in the province, that the income earned by it in the taxation year in the province is of its total income for the taxation year.

(2) Instead of making a refund that might otherwise be made under subsection (1), the minister may, where the trust is liable or about to become liable to make a payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the trust of that action.

Corporation tax

40. (1) The tax payable by a corporation for a taxation year is 14% of the corporation's taxable income earned in the year in the province.

(2) For the purpose of this section and sections 41 and 44, "taxable income earned in the year in the province" means the taxable income earned in the year in the province by a corporation as determined in accordance with federal regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act.

(3) Notwithstanding subsection (1), where in a taxation year a corporation is eligible for a deduction under section 125 of the federal Act, the tax payable by that corporation under this Act for a taxation year is equal to the total of

(a) 5% of an amount calculated by allocating to the province, on the same basis as set out in the regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act, a portion of the amount that is the least of the amounts calculated under paragraphs 125(1)(a), (b) and (c) of the federal Act and allowed for the purpose of subsection 125(1) of the federal Act in respect of the corporation for the year; and

(b) 14% of an amount calculated by deducting from the corporation's taxable income earned in the year in the province the amount allocated to the province under paragraph (a) in respect of the corporation for the year.

Manufacturing and processing profits deduction

41. (1) Where in a taxation year a portion of the taxable income earned in the year in the province by a corporation is Canadian manufacturing and processing profits of the corporation for the year, within the meaning assigned by subsection 125.1(3) of the federal Act, there may be deducted from the tax otherwise payable by the corporation under subsection 40(1) or paragraph 40(3)(b), whichever applies, 9% of the amount, if any, by which those manufacturing and processing profits earned in the year in the province by the corporation exceed the amount, if any, upon which tax is payable under paragraph 40(3)(a) by the corporation for the year.

(2) For the purpose of subsection (1), the manufacturing and processing profits earned in a taxation year in the province by a corporation are the Canadian manufacturing and processing profits of the corporation for the year, within the meaning assigned by subsection 125.1(3) of the federal Act, multiplied by the proportion that its taxable income earned in the year in the province bears to the total of all amounts each of which is its taxable income earned in the year in a province determined in accordance with federal regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act.

Research and development tax credit

42. (1) In this section

(a) "eligible expenditure" means an expenditure made after 1995, by a taxpayer with a permanent establishment in the province in respect of scientific research to be carried out in the province that is a qualified expenditure under subsection 127(9) of the federal Act, without reference to paragraph (h) of that subsection; and

(b) "research and development tax credit" of a taxpayer at the end of a taxation year means the amount, if any, by which the total of

(i) an amount equal to 15% of the total of all amounts each of which is an eligible expenditure made by the taxpayer in the year, or an eligible expenditure made in a previous taxation year, computed without reference to subsection 13(7.1) of the federal Act, and

(ii) all amounts each of which is an amount included under subsection (5) or (6) included in computing the taxpayer's research and development tax credit at the end of the year,

exceeds the total of all amounts each of which is an amount deducted under subsection (2) from the tax otherwise payable under this Act by the taxpayer for a previous taxation year or an amount applied or paid under subsection (3) by the minister in previous taxation years.

(2) A taxpayer may deduct from the tax otherwise payable under this Act for a taxation year an amount not exceeding the lesser of

(a) its research and development tax credit at the end of the year; and

(b) the tax otherwise payable by it under this Act for the year.

(3) The amount by which a taxpayer's research and development tax credit at the end of a taxation year exceeds the taxpayer's tax otherwise payable under this Act for the year may be applied by the minister to pay a

(a) tax, interest or penalty owing by the taxpayer for that or a prior taxation year under this Act, the income statute of an agreeing province or the federal Act;

(b) contribution, penalty or interest owing by the taxpayer for that or a prior taxation year as a result of payments required from the taxpayer under the Canada Pension Plan Act (Canada); and

(c) premium, interest or penalty owing by the taxpayer for that or a prior taxation year under the Employment Insurance Act (Canada),

and the part of the amount not so applied shall be paid to the taxpayer.

(4) A taxpayer referred to in subsection (3) does not include a taxpayer that is exempt from tax under section 149 of the federal Act.

(5) Where in a particular taxation year of a taxpayer which is a beneficiary under a trust, an amount would, if the trust were a taxpayer, be, by virtue of subparagraph (1)(b)(ii), included in computing the research and development tax credit of the trust for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be the taxpayer's share shall be included in computing the research and development tax credit of the taxpayer at the end of that particular taxation year.

(6) Where in a particular taxation year of a taxpayer which is a member of a partnership, an amount would, if the partnership were a taxpayer, be, by virtue of subparagraph (1)(b)(ii), included in computing the research and development tax credit of the partnership for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the taxpayer's share shall be included in computing the research and development tax credit of the taxpayer at the end of that particular taxation year.

(7) Where, after 1995, 2 or more taxpayers amalgamate within the meaning of subsection 87(1) of the federal Act and one or more of the taxpayers had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purpose of determining the research and development tax credit of the new taxpayer for a taxation year preceding any taxation year of the new taxpayer, the new taxpayer shall be considered to be the same taxpayer as, and a continuation of, each such predecessor taxpayer.

(8) Where after 1995

(a) a subsidiary, within the meaning assigned by subsection 88(1) of the federal Act, is wound up and that subsection applies to the winding-up; and

(b) at the end of the last taxation year of the subsidiary, it had a research and development tax credit any portion of which was not deducted in computing its tax otherwise payable under this Act by it for the year,

for the purpose of applying this section, the parent shall be considered to be the same person as, and a continuation of, the subsidiary.

Capital gains refund to mutual fund corporations

43. (1) Where an amount is to be refunded to a corporation in respect of a taxation year, under section 131 of the federal Act, the minister shall at the time and in the manner that is provided in that section, refund to the corporation an amount, in this section referred to as its "capital gains refund" for the year, equal to the least of

(a) that proportion of the amount of the refund for the year calculated under subsection 131(2) of the federal Act that

(i) the percentage referred to in subsection 40(1) for the year

is of

(ii) the percentage referred to in paragraph (b) of the description of A in the formula in the definition "refundable capital gains tax on hand" in subsection 131(6) of the federal Act;

(b) the product of the percentage referred to in subsection 40(1) by its taxed capital gains within the meaning assigned to that expression in subsection 130(3) of the federal Act for the year;

(c) the product of the percentage referred to in subsection 40(1) by its taxable income for the year; and

(d) the tax otherwise payable by the corporation under this Act for the year.

(2) For the purpose of computing the capital gains refund under subsection (1) for a corporation in respect of a taxation year, where

(a) the corporation's taxable income earned in the year in the province,

is less than

(b) the corporation's taxable income for the year,

the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (1), that the amount determined under paragraph (a) is of the amount determined under paragraph (b).

(3) Instead of making a refund that might otherwise be made under subsection (1), the minister may, where the corporation is liable or about to become liable to make a payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the corporation of that action.

Foreign tax credits

44. (1) Where the income for a taxation year of a corporation that maintained a permanent establishment in the province at any time in the taxation year includes income described in subparagraph 126(1)(b)(i) of the federal Act from sources in a country other than Canada, in this section referred to as "foreign investment income", and where the corporation has claimed a deduction under subsection 126(1) of the federal Act in respect of the foreign investment income, the corporation may deduct from the tax for the year otherwise payable under this Act an amount equal to the lesser of

(a) 14% of the product of

(i) the foreign investment income of the corporation for the year from sources in the country, and

(ii) that proportion that its taxable income earned in the year in the province is of the total of all amounts each of which is its taxable income earned in the year in the province as determined in accordance with federal regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the federal Act; or

(b) that proportion of the amount by which the part of a non-business-income tax paid by the corporation for the year to the government of a country other than Canada, except the tax or part of it that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation, exceeds the amount of the deduction claimed by the corporation under subsection 126(1) of the federal Act that

(i) the taxable income earned in the year in the province,

is of

(ii) the total of all amounts each of which is its taxable income earned in the year in a province as determined in accordance with federal regulations made for the purpose of the definition "taxable income earned in a year in a province" in subsection 124(4) of the federal Act.

(2) Where the income of a corporation for a taxation year includes income from sources in more than one country other than Canada, subsection (1) shall be read as providing for separate deductions in respect of each of the countries other than Canada.

Film or video tax credit

45. (1) A corporation producing an eligible film or video in the province may apply to the minister in the manner prescribed by regulation for a film or video industry tax credit.

(2) The tax credit shall be calculated in a manner prescribed by regulation.

(3) The tax credit shall be deducted against the tax which is otherwise payable under this Act.

(4) Where the tax credit calculated in accordance with subsection (2) exceeds the tax otherwise payable under this Act, the minister may pay the amount of the excess to the corporation in a manner prescribed by regulation.

Equity tax credit

46. (1) An eligible investor may apply to the minister for a non refundable tax credit in respect of an eligible investment in an eligible corporation.

(2) The minister may give a tax credit to a person who applies under subsection (1).

(3) A tax credit given under subsection (2) shall be calculated in the manner prescribed by the regulations.

(4) A tax credit shall be deducted against the tax which is otherwise payable under this Act.

(5) The Lieutenant-Governor in Council may make regulations

(a) establishing the criteria for determining who is an eligible investor, what corporation is an eligible corporation and what investments are eligible investments;

(b) respecting the issuance of and the grounds for revocation of certificates of eligibility to corporations;

(c) limiting the amounts which an eligible corporation may raise through the use of credits;

(d) prescribing how funds raised may be used by a corporation;

(e) respecting the wind-up and dissolution of an eligible corporation;

(f) setting the amount of a tax credit that may be paid to an eligible investor;

(g) setting limits on the amounts of eligible investments;

(h) respecting the carrying forward or back of a credit;

(i) respecting the holding period for an eligible investment;

(j) prescribing penalties for failure to comply with the regulations; and

(k) generally to give effect to the purpose of this section.

Political contribution deduction

47. (1) In this section

(a) "candidate" means a person who is nominated as a candidate for an electoral district in accordance with Part I of the Elections Act, 1991;

(b) "contribution" means a contribution made to a registered political party or a candidate under Part III of the Elections Act, 1991 and "contributor" means a person who makes a contribution under that Act;

(c) "corporation" means a corporation incorporated under the laws of the province and a corporation having its head or other office or doing business or a part of it in the province;

(d) "individual" means a natural person;

(e) "receipt" means a receipt for a contribution issued under Part III of the Elections Act, 1991;

(f) "registered political party" means a political party that is registered under section 278 of the Elections Act, 1991; and

(g) "tax otherwise payable under this Act" means the amount that would, but for this section, be the tax payable under this Act.

(2) There may be deducted from the tax otherwise payable under this Act by a taxpayer who is an individual or a corporation for a taxation year in respect of the total of all amounts, each of which is the amount of a contribution of money made by the taxpayer in a year to a registered political party or a candidate,

(a) 75% of the total if the total does not exceed $100;

(b) $75 plus 50% of the amount by which the total exceeds $100 if the total exceeds $100 and does not exceed $550; or

(c) $300 plus 33 1/3% of the amount by which the total exceeds $550 if the total exceeds $550,

if each contribution that is included in the total is proven by filing with the minister a receipt signed by the chief financial officer of the registered political party or candidate.

(3) The maximum allowable deduction under subsection (2) is $500.

(4) An amount may not be deducted under subsection (2) with respect to a contribution to a candidate unless it was made during an election period as defined in the Elections Act, 1991 and after his or her chief financial officer was appointed under that Act in the election in which he or she is a candidate.

(5) For the purpose of this section, a contribution shall be considered to have been made on the date it is considered to have been made under Part III of the Elections Act, 1991.

(6) Subject to the provisions of Part III of the Elections Act, 1991 every chief financial officer shall retain signed duplicates of all receipts issued by him or her.

(7) Notwithstanding a provision of Part III of the Elections Act, 1991, for the purpose of this section the minister may examine and make copies of receipts or duplicates, and of a return, record, report or other document filed with the Chief Electoral Officer under Part III of the Elections Act, 1991.

(8) A person shall not file a false or deceptive receipt with the minister.

Tax not payable

48. (1) Tax is not payable under this Act

(a) by a person in respect of the person's taxable income on which no tax is payable under Part I of the federal Act because of section 149 of that Act; or

(b) by a corporation in respect of its taxable income for a period throughout which it was a non-resident owned investment corporation,

and, except where otherwise provided, definitions or descriptions in the federal Act applying to those persons apply, with the necessary changes, for the purpose of this Act.

(2) Tax is not payable by a corporation that is by statute an agent of the Crown.

Returns of income, assessments and withholding

49. Subsection 70(7), except the portion of it that is after paragraph (a), sections 150, 150.1 and 151, and subsections 152(1) to (3.1), (4) to (9), 153(1) to (3) and 156.1(4) to (9) of the federal Act apply for the purpose of this Act.

Reassessment

50. (1) Where a collection agreement is in effect, notwithstanding the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, if the tax payable under Part I of the federal Act by the taxpayer for the year is reassessed, the minister shall reassess, make additional assessments or assess tax, interest or penalties as the circumstances require.

(2) Notwithstanding that the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, the minister may redetermine the amount considered under subsection 34(4) to be an amount paid by an individual on account of his or her tax payable under this Act for that year.

Farmers and fishers

51. Section 155 of the federal Act applies for the purpose of this Act.

Instalments by other individuals

52. Section 156 of the federal Act applies for the purpose of this Act.

Payment by corporations

53. (1) Subsections 157(1), (2), (2.1) and (4) of the federal Act apply for the purpose of this Act.

(2) Where a collection agreement is in effect, a corporation that pays amounts in respect of a taxation year computed under subparagraph 157(1)(a)(i), (ii) or (iii) of the federal Act and that is required to make payments under subsection 157(1) of the federal Act as it applies for the purpose of this Act shall pay amounts in respect of the year computed under the same subparagraph as it applies for the purpose of this Act.

Returns, payments and interest

54. Subsection 70(2), 104(2), paragraph 104(23)(e), sections 158, 159 and 160, subsections 160.1(1), (1.1), (2.1), (3) and (4), sections 160.2 and 160.3 and subsections 161(1), (2), (2.1), (2.2), (4), (4.01), (4.1), (5), (6), (6.1), (7), (9) and (11) of the federal Act apply for the purpose of this Act.

Computing instalments

55. (1) Where an individual is considered under subsection 161(4) of the federal Act to be liable, in respect of tax payable under Part I of the federal Act for a taxation year, to pay a part or instalment computed by reference to an amount described in paragraph 161(4)(a), (b) or (c) of the federal Act, notwithstanding subsection 161(4) of the federal Act, as it applies for the purpose of this Act, the individual is considered for the purpose of subsection 161(2) of the federal Act, as it applies for the purpose of this Act, to be liable to pay, in respect of tax payable under this Act for the year, a part or instalment computed by reference to the same paragraph, as it applies for the purpose of this Act.

(2) Where an individual is considered under subsection 161(4.01) of the federal Act to be liable, in respect of tax payable under Part I of the federal Act for a taxation year, to pay a part or instalment computed by reference to an amount described in paragraph 161(4.01)(a), (b), (c) or (d) of the federal Act, notwithstanding subsection 161(4.01) of the federal Act, as it applies for the purpose of this Act, the individual is considered for the purpose of subsection 161(2) of the federal Act, as it applies for the purpose of this Act, to be liable to pay, in respect of tax payable under this Act for the year, a part or instalment computed by reference to the same paragraph, as it applies for the purpose of this Act.

Amount on which instalment computed

56. Where a collection agreement is in effect and a taxpayer is considered under subsection 161(4) of the federal Act to be liable to pay, in respect of his or her tax payable under Part I of the federal Act for a particular taxation year, a part or instalment computed by reference to an amount described in paragraph 161(4)(c) or (d) of the federal Act as it applies for the purpose of this Act, the taxpayer shall be considered for the purpose of subsection 161(2) of the federal Act, as it applies for the purpose of this Act, to be liable to pay, in respect of his or her tax payable under this Act for the particular year, a part or instalment computed by reference to the same paragraph, as it applies for the purpose of this Act.

Penalties

57. (1) Subsections 162(1) to (3), (5), (7) and (11) of the federal Act apply for the purpose of this Act.

(2) Where a collection agreement is in effect, the minister may refrain from levying or may reduce a penalty provided by this section where the person who is liable to the penalty is required to pay a penalty under section 162 of the federal Act in respect of the same failure.

Repeated failures

58. (1) Subsections 163(1) and (2), except the portion of it after paragraph (a), and subsections 163(2.1), (3) and (4) of the federal Act apply for the purpose of this Act.

(2) Where a collection agreement is in effect, the minister may refrain from levying or may reduce a penalty provided for by this section where the person who is liable to the penalty is required to pay a penalty under section 163 of the federal Act in respect of the same failure or the same false statement or omission.

Late or deficient instalments

59. Section 163.1 of the federal Act applies for the purpose of this Act.

Refunds

60. (1) Subsections 164(1), (1.1), (1.2), (1.3), (1.31), (1.5), (2), (2.2), (2.3), (3), (3.1), (3.2), (4), (4.1), (5), (5.1), (6) and (7) of the federal Act apply for the purpose of this Act.

(2) Where a collection agreement is in effect and by reason of a decision referred to in subsection 164(4.1) of the federal Act a repayment of tax, interest or penalties under that Act for a taxation year is made to a taxpayer or a security accepted under that Act for that tax, interest or penalties is surrendered to the taxpayer, subsection 164(4.1) of the federal Act as it applies for the purpose of this Act, applies to an overpayment of tax, interest or penalties under this Act for the year that arises by reason of the decision.

Objections

61. Sections 165, 166.1 and 166.2 of the federal Act apply for the purpose of this Act.

Appeals

62. (1) Section 169 of the federal Act applies for the purpose of this Act.

(2) An appeal from an assessment under this Act may be taken in respect of a question relating,

(a) in the case of an individual, to the determination of

(i) his or her residence for the purpose of this Act,

(ii) his or her income earned in the taxation year in the province as defined in paragraph 5(c),

(iii) the amount of tax payable for a taxation year based on the tax payable under the federal Act for that year as defined in paragraph 5(g), or

(iv) the amount of his or her adjusted income for the purpose of section 34 of this Act as determined under the definition "adjusted income" in subsection 122.5(1) of the federal Act; and

(b) in the case of a corporation, to the determination of

(i) its taxable income earned in the year in the province as defined in subsection 40(2), or

(ii) the amount of tax payable for a taxation year based on the taxable income of the corporation for that year,

but an appeal from an assessment does not lie in respect of the computation of the tax payable under the federal Act as defined in paragraph 5(g) or of the taxable income of a corporation.

(3) An appeal to the court shall be instituted by serving upon the minister a notice of appeal in duplicate in prescribed form and by filing a copy of it with the registrar of the court.

(4) A notice of appeal shall be served upon the minister by being sent by registered mail addressed to the deputy head.

(5) The appellant shall set out in the notice of appeal a statement of the allegations of fact, the statutory provisions and the reasons that he or she intends to submit in support of the appeal.

Reply to appeal

63. (1) The minister shall, within 60 days after the day the notice of appeal is received, or within a further time that the court may allow, either before or after the expiration of that time, serve on the appellant and file in the court a reply to the notice of appeal admitting or denying the facts alleged and containing a statement of the further allegations of fact and of the statutory provisions and reasons that he or she intends to rely on.

(2) The court may, in its discretion, strike out a notice of appeal or a part of it for failure to comply with subsection 62(5) and may permit an amendment to be made to a notice of appeal or a new notice of appeal to be substituted for the one struck out.

(3) The court may, in its discretion,

(a) strike out a part of a reply for failure to comply with this section or permit the amendment of a reply; and

(b) strike out a reply for failure to comply with this section and order a new reply to be filed within a time to be fixed by the order.

(4) Where a notice of appeal is struck out for failure to comply with subsection 62(5) and a new notice of appeal is not filed as permitted by the court, the court may, in its discretion, dispose of the appeal by dismissing it.

(5) Where a reply is not filed as required by this section or is struck out under this section and a new reply is not filed as ordered by the court within the time ordered, the court may dispose of the appeal without notice to the minister despite the lack of a reply or after a hearing on the basis that the allegations of fact contained in the notice of appeal are true.

Trial

64. (1) Upon the filing of the material referred to in sections 62 and 63, the matter shall be considered to be an action in the court and, unless the court otherwise orders, ready for hearing.

(2) A fact or statutory provision not set out in the notice of appeal or reply may be pleaded or referred to in the manner and upon the terms that the court directs.

Appeals

65. Sections 166, 167, 171 and 179 of the federal Act apply for the purpose of this Act.

Practice and procedure

66. Except as provided in regulations made by the Lieutenant-Governor in Council, the practice and procedure of the court including the right of appeal and the practice and procedure relating to appeals, apply to a matter considered to be an action under section 64, and a judgment and order given or made in such an action may be enforced in the same manner and by the same process as a judgment or order given or made in an action commenced in that court.

PART III
ADMINISTRATION AND ENFORCEMENT

Administration

67. Sections 220, 221.1, 224, 225.1 and 225.2 of the federal Act apply for the purpose of this Act.

Regulations

68. (1) The Lieutenant-Governor in Council may make regulations

(a) prescribing anything that, by this Act, is to be prescribed or is to be determined or regulated by regulation;

(b) limiting the application of section 2 with respect to a provision of the federal Act that applies for the purpose of section 38;

(c) respecting the interpretation of a provision of the federal Act that applies for the purpose of section 38;

(d) prescribing an Act for the purpose of paragraph 38(6)(b);

(e) respecting the Newfoundland and Labrador child benefit, including an eligibility requirement and the manner and method of calculating the benefit;

(f) providing in a case of doubt the circumstances in which, and extent to which, the federal regulations apply;

(g) prescribing the eligibility requirements and the manner and method of calculating a film or video industry tax credit;

(h) prescribing for the payment to a corporation of an amount by which a tax credit determined under subsection 45(2) exceeds the tax otherwise payable under this Act, and including conditions or restrictions in relation to a payment; and

(i) generally to give effect to the purpose of this Act.

(2) For the purpose of this Act the federal regulations made in accordance with subsection 221(1) of the federal Act apply with the necessary changes with respect to all matters enumerated in that section, except where they are inconsistent with regulations made under subsection (1) or are expressed by regulations made under subsection (1) to be inapplicable.

(3) Regulations made under this Act may be made with retroactive effect.

(4) Regulations made under the federal Act which apply with the necessary changes have effect for the purpose of this Act upon publication in the Canada Gazette and when so published the regulations where they so provide have effect with reference to a period before they were published.

Debts due to Crown

69. Section 222 of the federal Act applies for the purpose of this Act.

Certificates

70. Subsection 223(1), except paragraphs (b), (c) and (d), and subsections 223(2) to (4) of the federal Act apply for the purpose of this Act with respect to an amount payable by a person under this Act that the Minister of National Revenue may not collect under a collection agreement.

Minister's warrant

71. The minister may issue a warrant directed to the sheriff for the amount of the tax, interest and penalty owing by the taxpayer, together with interest from the date of the issue of the warrant and the costs and expenses of the sheriff and the warrant shall have the same effect as a judgment of the court and may be registered as a notice of judgment under the Judgment Enforcement Act.

Acquisition of debtor's property

72. Section 224.2 of the federal Act applies for the purpose of this Act.

Payment of money seized from tax debtor

73. Section 224.3 of the federal Act applies for the purpose of this Act.

Direction to seize chattels

74. Section 225 of the federal Act applies for the purpose of this Act.

Taxpayers leaving Canada

75. Section 226 of the federal Act applies for the purpose of this Act.

Money withheld

76. (1) Subsections 227(1) to (5.2), (8), (8.2) to (9), (9.2), (9.4), (9.5), (10) and (10.2) to (13) of the federal Act apply for the purpose of this Act.

(2) The minister may assess

(a) a person for an amount that has been deducted or withheld by that person under this Act or a regulation or under a provision of the federal Act or of the federal regulations that applies for the purpose of this Act; and

(b) a person for an amount payable by that person under subsection 224(4) or (4.1) or section 227.1 of the federal Act, as they apply for the purpose of this Act,

and where the minister sends a notice of assessment to that person, sections 49 and 54 to 66 are applicable with the modification that the circumstances require.

(3) Notwithstanding another provision of this Act or another Act, the penalty for failure to remit an amount required to be remitted by a person on or before the day prescribed in the federal regulations made for the purpose of section 153(1), as both those regulations and that subsection apply for the purpose of this Act, shall, unless the person required to remit the amount has, knowingly or under circumstances that amount to gross negligence, delayed in remitting the amount or has, knowingly or under circumstances that amount to gross negligence, remitted an amount less than the amount required to be remitted, apply only to the amount by which the total of all amounts so required on or before the day exceeds $500.

Director's liability

77. Section 227.1 of the federal Act applies for the purpose of this Act.

Books and records

78. (1) A person carrying on business in the province and a person who is required under this Act to pay or collect taxes or other amounts shall keep records and books of account, including an annual inventory kept in the prescribed manner, at his or her place of business or residence in Canada or at another place that may be designated by the minister in the form and containing the information that shall enable the taxes payable under this Act or the taxes or other amounts that should have been deducted, withheld or collected to be determined.

(2) Subsections 230(2.1), (3), (4), (4.1), (4.2), (5), (6), (7) and (8) of the federal Act apply for the purpose of this Act.

Inspections, privileges, etc.

79. Sections 231 to 231.5, 232, 233 and 236 of the federal Act apply for the purpose of this Act.

Penalty for failure to comply with regulations

80. (1) A person who fails to comply with a regulation made under paragraph 221(1)(d) or (e) of the federal Act as it applies by virtue of subsection 68(2) of this Act is liable in respect of each failure to comply to a penalty of $10 a day for each day of default but not exceeding in all $2,500.

(2) A person who fails to comply with regulations made under section 68 or incorporated by reference by virtue of subsection 68(2) is liable to a penalty of $10 a day for each day of default but not exceeding in all $2,500.

Offence and penalty

81. (1) A person who fails to file a return as required under this Act or a regulation, or under a provision of the federal Act or of the federal regulations, as the provision applies for the purpose of this Act, or who fails to comply with subsections 153(1), 227(5) and 230(3), (4) and (6) and sections 231 to 231.5 and 232 of the federal Act, as it applies for the purpose of this Act, is guilty of an offence and, in addition to a penalty otherwise provided, is liable on summary conviction to

(a) a fine of not less than $1,000 and not exceeding $25,000; or

(b) both the fine described in paragraph (a) and imprisonment for a term not exceeding 12 months.

(2) Subsection 238(2) of the federal Act applies for the purpose of this Act.

(3) Where a person is convicted under this section for failure to comply with a provision of this Act or a regulation or a provision of the federal Act or of the federal regulations that applies for the purpose of this Act, that person is not liable to a penalty under subsection 227(8), (8.5), (9) or (9.5) of the federal Act, as those subsections apply for the purpose of this Act, or under section 57 or 80 for the same failure unless that person was assessed for that penalty or that penalty was demanded from the person before the information or complaint giving rise to the conviction was laid or made.

Offence

82. Subsections 239(1) and (1.1) of the federal Act apply for the purpose of this Act.

Actions or suits

83. (1) Actions, suits or other legal proceedings brought or taken under this Act shall be brought or taken by and in the name of the Attorney General and, where a collection agreement is entered into, those actions, suits or other legal proceedings may be brought or taken by the Minister of National Revenue on behalf of the province in his or her own name or in the name of the Attorney General of the province.

(2) Where a collection agreement is entered into and proceedings under section 238 or 239 of the federal Act are taken against a person, the Minister of National Revenue may take or refrain from taking an action against that person contemplated by section 72 of this Act or subsection 239(1) or (1.1) of the federal Act as it applies for the purpose of this Act.

Revealing confidential information

84. (1) A person who, while employed in the administration of this Act,

(a) knowingly communicates or knowingly allows to be communicated to a person not legally entitled to information, information obtained by or on behalf of the minister for the purpose of this Act;

(b) knowingly allows a person not legally entitled to do so, to inspect or to have access to a book, record, writing, return or other document obtained by or on behalf of the minister for the purpose of this Act; or

(c) knowingly uses, other than in the course of his or her duties in connection with the administration or enforcement of this Act, information obtained by or on behalf of the minister for the purpose of this Act,

is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both a fine and imprisonment.

(2) Subsection (1) does not apply to the communication of information between

(a) the Minister of National Revenue and the Minister of Finance; or

(b) the Minister of Finance for this province or the Minister of National Revenue, acting on behalf of the province, and the Provincial Treasurer, the Provincial Secretary-Treasurer or the Minister of Finance of the government of

(i) an agreeing province, or

(ii) a non-agreeing province to which an adjusting payment may be made under subsection 93(2).

Offence by corporation

85. Section 242 of the federal Act applies for the purpose of this Act.

No power to decrease punishment

86. Section 243 of the federal Act applies for the purpose of this Act.

Information or complaint

87. Subsections 244(1) to (5), (7) to (11), (13) to (17) and (20) to (22) of the federal Act apply for the purpose of this Act.

General anti-avoidance rule

88. Sections 245 and 246 of the federal Act apply for the purpose of this Act.

PART IV
COLLECTION OF TAX

Collection agreement

89. (1) Subject to the approval of the Lieutenant-Governor in Council, the minister may on behalf of the government of the province enter into a collection agreement with the Government of Canada under which the Government of Canada shall collect the tax payable under this Act on behalf of the province and shall make payments to the province in respect of the money collected in accordance with the terms and conditions that the collection agreement prescribes.

(2) Subject to the approval of the Lieutenant-Governor in Council, the minister may on behalf of the government of the province enter into an agreement amending the terms and conditions of a collection agreement entered into under subsection (1).

(3) Where a collection agreement is in effect, the Minister of National Revenue may, on behalf of the Minister of Finance, employ the powers and perform the duties that the Minister of Finance or the deputy head or assistant deputy head has under this Act, other than this Part, including the discretion to refuse to permit the production in judicial or other proceedings of a document that is not, in the opinion of the Minister of National Revenue, in the interests of public policy to produce.

(4) Where a collection agreement is entered into, the Commissioner of Customs and Revenue appointed under the Canada Customs and Revenue Act (Canada) may

(a) employ the powers, perform the duties and exercise the discretion that the Minister of National Revenue has under this Act; and

(b) designate officers of his or her department to carry out those functions, duties and powers that are similar to those that are exercised by them on his or her behalf under the federal Act.

Application of payment

90. (1) A collection agreement may provide that where a payment is received by the minister on account of the tax payable by a taxpayer for a taxation year under this Act, the federal Act or an income tax statute of another agreeing province, or under 2 or more of those statutes, the payment received may be applied by the Minister of National Revenue towards the tax payable by the taxpayer under such an Act or a statute in the manner that may be specified in the agreement, notwithstanding that the taxpayer has directed that the payment be applied in another manner or has made no direction as to its application.

(2) A payment or part of a payment applied by the Minister of National Revenue in accordance with a collection agreement towards the tax payable by a taxpayer for a taxation year under this Act

(a) relieves the taxpayer of liability to pay that tax to the extent of the payment or part of it so applied; and

(b) shall be considered to have been applied in accordance with a direction made by the taxpayer.

No action against persons withholding tax

91. Where a collection agreement is in effect and an amount is remitted to the minister under subsection 153(1) of the federal Act, as it applies for the purpose of this Act, on account of the tax of an individual who is resident on the last day of the taxation year in another agreeing province,

(a) no action lies for recovery of that amount by that individual; and

(b) the amount may not be applied in discharge of a liability of that individual under this Act.

Deduction at source

92. (1) Where a collection agreement is entered into, an individual resident in the province on the last day of the taxation year is not required to remit an amount on account of tax payable by him or her under this Act for the taxation year to the extent of the amount deducted or withheld on account of his or her tax for that year under the income tax statute of another agreeing province.

(2) Where the total amount deducted or withheld on account of tax payable under this Act and under the income tax statute of another agreeing province by an individual resident in this province on the last day of the taxation year to whom subsection (1) applies exceeds tax payable by him or her under this Act for that year, the provisions of the federal Act that apply for the purpose of this Act because of section 60, apply in respect of that individual as though the excess were an overpayment under this Act.

Non-agreeing provinces

93. (1) In this section

(a) "adjusting payment" means a payment, calculated in accordance with this section, made by or on the direction of this province to a non-agreeing province; and

(b) "amount deducted or withheld" does not include a refund made in respect of that amount.

(2) Where, in respect of a taxation year a non-agreeing province is authorized to make a payment to the province that, in the opinion of the minister, corresponds to an adjusting payment, the Lieutenant-Governor in Council may authorize the minister to make an adjusting payment to that non-agreeing province and enter into an agreement that may be necessary to carry out the purpose of this section.

(3) Where a collection agreement is in effect, an adjusting payment that may be made under subsection (2) may be made by the Government of Canada where it has agreed to act on the direction of the government of the province as communicated by the minister for the province to the Minister of National Revenue.

(4) The adjusting payment to be made under this section shall be the amount that is equal to the total of the amounts deducted or withheld under subsection 153(1) of the federal Act in respect of the tax payable for a taxation year by individuals who

(a) file returns under the federal Act;

(b) are taxable under the federal Act in respect of that year; and

(c) are resident on the last day of that year in the non-agreeing province to which the adjusting payment is to be made.

(5) Where an adjusting payment is to be made to a non-agreeing province and there has been an amount deducted or withheld under subsection 153(1) of the federal Act, as it applies for the purpose of this Act, on account of the tax for a taxation year of an individual who is taxable under the federal Act in respect of that year and who is resident on the last day of that taxation year in the non-agreeing province,

(a) an action does not lie for the recovery of that amount by that individual; and

(b) the amount may not be applied in discharge of a liability of that individual under this Act.

(6) Where an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, an individual resident in the province on the last day of the year is not required to remit an amount on account of income tax payable or that might have been payable by him or her under this Act for the year to the extent of the amount deducted or withheld on account of that individual's income tax for that year under the law of that non-agreeing province.

(7) Where an adjusting payment to a non-agreeing province is to be made under this section for a taxation year, the total amount deducted or withheld on account of tax payable under this Act and on account of the income tax payable under the law of the non-agreeing province by an individual resident in the province on the last day of the taxation year to whom subsection (6) applies exceeds the tax payable by him or her under this Act for that year, the provisions of the federal Act that apply because of section 60 apply in respect of that individual as though the excess were an overpayment under this Act.

(8) Where a collection agreement is entered into and the Government of Canada has agreed in respect of a taxation year to carry out the direction of the province and to make an adjusting payment on behalf of the province, the adjusting payment

(a) shall be made out of money that has been collected on account of tax under this Act for a taxation year; and

(b) shall be the amount calculated by the Minister of National Revenue to be the amount required to be paid under subsection (4),

and the payment discharges an obligation the Government of Canada may have with respect to the payment to the province of an amount deducted or withheld under subsection 153(1) of the federal Act, as it applies for the purpose of this Act, to which subsection (5) applies.

Reciprocal enforcement of judgments

94. (1) A judgment of a superior court of an agreeing province under that province's income tax statute, including a certificate registered in that superior court in a manner similar to that provided in subsection 70(2), may be enforced in the manner provided in the Reciprocal Enforcement of Judgments Act.

(2) For the purpose of subsection (1), where a judgment of a superior court of an agreeing province is sought to be registered under the Reciprocal Enforcement of Judgments Act, the judgment shall be registered, notwithstanding that it is established that one or more of the provisions of subsection 3(6) of that Act apply.

(3) For the purpose of subsection (1), the Lieutenant-Governor in Council may make regulations to enable the enforcement of judgments in respect of taxes in agreeing provinces to be enforced in the province.

PART V
REPEAL

RSN1990 cI-1 Rep.

95. The Income Tax Act is repealed.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

©Earl G. Tucker, Queen's Printer