Statutes of Newfoundland and Labrador 2001 Chapter 44

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Statutes of Newfoundland and Labrador 2001

Statutes of Newfoundland and Labrador 2001 Chapter 44 CHAPTER 44

AN ACT TO AMEND THE ECONOMIC DIVERSIFICATION AND GROWTH
ENTERPRISES ACT
(Assented to December 13, 2001)

Analysis

1. S.2(1) Amdt.
Interpretation

2. S.3(2)(a) R&S
Qualifications for designation

3. S.4(1) Amdt.
Application for designation

4. S.6(1) Amdt.
Evaluation of application

5. S.7 Amdt.
Designation of corporation

6. S.8 Amdt.
Report

7. S.9 R&S
9. Remission and
reimbursement of tax
9.1 Qualification to receive
benefits

8. S.10 Amdt.
Municipal tax remission

9. S.12 Rep.
Extension of remission period

10. S.15 Amdt.
Facilitator

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

SNL1994 cE-1.1
as amended

1. Subsection 2(1) of the Economic Diversification and Growth Enterprises Act is amended by deleting the word "and" at the end of paragraph (b) and by adding immediately after paragraph (b) the following:

(b.1) "minister" means the minister appointed under the Executive Council Act to administer this Act;

(b.2) "north-east Avalon" means the towns of Bauline, Conception Bay South, Flatrock, Logy Bay-Middle Cove-Outer Cove, Paradise, Petty Harbour, Portugal Cove-St. Philip's, Pouch Cove and Torbay incorporated or continued under the Municipalities Act, 1999, the City of Mount Pearl incorporated under the City of Mount Pearl Act and the City of St. John's incorporated under the City of St. John's Act; and

2. Paragraph 3(2)(a) of the Act is repealed and the following substituted:

(a) business activities or undertakings which offer the opportunity for long-term sustainable jobs and growth;

3. Subsection 4(1) of the Act is amended by striking out the words "Department of Industry, Trade and Technology" and substituting the word "minister".

4. Subsection 6(1) of the Act is amended by striking out the words "Minister of Industry, Trade and Technology" and substituting the word "minister".

5. Subsections 7(3) and (4) of the Act are amended by striking out the words "Minister of Industry, Trade and Technology" and substituting the word "minister".

6. Subsections 8(1), (3) and (5) of the Act are amended by striking out the words "Minister of Industry, Trade and Technology" and substituting the word "minister".

7. Section 9 of the Act is repealed and the following substituted:

Remission and reimbursement of tax

9. (1) A corporation that has been designated as an EDGE Corporation qualifies for a remission of tax and the Lieutenant-Governor in Council shall, by order under section 19 of the Financial Administration Act, remit all of the tax payable by the corporation under

(a) the Income Tax Act, 2000;

(b) the Health and Post-Secondary Education Tax Act; or

(2) An order for a remission of tax shall provide

(a) that all the tax paid by the EDGE Corporation shall be remitted for a period of

(i) 10 years, where the corporation's proposed business, undertaking or activity is on the north-east Avalon, and

(ii) 15 years, where the corporation's proposed business, undertaking or activity is in a part of the province other than the north-east Avalon,

beginning on the date set out in the order; and

(b) that the remission of the tax payable shall be reduced by 20% each year for a period of 5 years beginning on the expiry of the 10 or 15 year period, whichever is applicable, referred to in paragraph (a).

(3) A corporation that has been designated as an EDGE corporation qualifies for a reimbursement by the province of 50% of tax payable by the corporation to the Crown in right of Canada under the Income Tax Act (Canada)

(a) for a period of 10 years, where the corporation's proposed business, undertaking or activity is on the north-east Avalon; or

(b) for a period of 15 years, where the corporation's proposed business, undertaking or activity is in a part of the province other than the north-east Avalon.

(4) The reimbursement of tax payable provided for in subsection (3) shall be reduced by 20% each year for a period of 5 years beginning on the expiry of the 10 or 15 year period, whichever is applicable.

(5) Notwithstanding subsections (1), (2), (3) and (4), the remission of tax and the reimbursement of tax that an EDGE Corporation qualifies for applies only in respect of the tax that is reasonably and directly attributable to a new business or undertaking of the corporation carried on or established in the province or an expansion of its existing business or undertaking in the province.

(6) This section applies only to a corporation that applies for and is designated as an EDGE corporation after January 1, 2002.

(7) Section 9 as it read before the coming into force of this section continues to apply with respect to a corporation that applied for or was designated as an EDGE corporation before January 1, 2002.

Qualification to receive benefits

9.1 (1) Notwithstanding the other provisions of this Act respecting the qualification of an EDGE corporation to receive benefits under this Act, a corporation does not qualify for the benefits that may be conferred by this Act if it does not achieve and maintain the eligibility criteria set out in section 3.

(2) The Lieutenant-Governor in Council, upon advice from the minister, may in extenuating circumstances where the EDGE Corporation has met the criteria set out in section 3, but on a temporary basis is not able to maintain them, provide for the continuation of EDGE benefits where it is considered to be in the public interest.

(3) This section applies only to a corporation that applies for and is designated as an EDGE corporation after January 1, 2002.

8. (1) Subsections 10(2), (3) and (4) of the Act are amended by striking out the words "Minister of Industry, Trade and Technology" and substituting the word "minister".

(2) Subsection 10(7) of the Act is repealed and the following substituted:

(7) The remission of tax under this section shall be

(a) for a period of

(i) 10 years, where the corporation's business, undertaking or activity is on the north-east Avalon, and

(ii) 15 years, where the corporation's business, undertaking or activity is in a part of the province other than the north-east Avalon,

beginning on the date set out in the order referred to in section 9; and

(b) reduced by 20% each year for a period of 5 years beginning on the expiry of the 10 or 15 year period, referred to in paragraph (a), whichever is applicable.

(8) Where, before the coming into force of subsection (7) as it now reads, a municipality, that is located in a part of the province other than the north-east Avalon, adopted a resolution to grant a remission of all the business tax or the property tax or both of the taxes payable by an EDGE corporation which establishes a business or undertaking, or expands an existing business or undertaking within its municipal boundaries, the municipality is not bound by subsection (7) as it now reads, but the municipality may adopt a resolution to provide the benefits referred to in subsection (7).

9. Section 12 of the Act is repealed.

10. Subsection 15(1) of the Act is amended by striking out the words "Minister of Industry, Trade and Technology" and substituting the word "minister".