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Copyright 2005: Queen’s Printer,
St. John's, Newfoundland and Labrador, Canada

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Statutes of Newfoundland and Labrador 2005


CHAPTER 37

AN ACT TO AMEND THE INSURANCE COMPANIES TAX ACT

(Assented to December 13, 2005)

Analysis


1. S.4 Amdt.
Returns and payment

2. S.8 Amdt.
Payment of tax with return

3. S.14 R&S
14. Review by minister
14.1 Appeal to Trial
Division

4. S.15 Amdt.
Court of Appeal

5. S.17.1 Amdt.
Regulations

6. S.25 R&S
Failure to pay tax or file returns


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

RSNL1990 cI-11
as amended

1. Subsection 4(1) of the Insurance Companies Tax Act is repealed and the following substituted:

Returns and payment

4. (1) A company that is liable to pay tax shall, before March 21 in each year and without notice or demand by the minister, send to the minister in the form required by him or her,

(a) a return which shows the amount of tax payable by the company for the preceding year; and

(b) the tax payable for the preceding year, less the amount of payment made under subsection (1.1).

(1.1) A company that is liable to pay tax shall pay to the minister on, or before the twentieth day of each month of the year, an instalment payment that is equal to 1/12 of the tax payable as estimated by the company.

(1.2) A company that is liable to pay tax shall file with the minister, along with the return and tax payment required under subsections (1) and (1.1), the information that the minister considers necessary.

 

2. Subsection 8(1) of the Act is amended by deleting the word and figures "subsection 4(1)" and substituting the word and figure "section 4".

 

3. Section 14 of the Act is repealed and the following substituted:

Review by minister

14. (1) A company that objects to the amount of an assessment made under this Act or considers that it is not liable for tax imposed upon it may directly, or by its agent, within 90 days after receiving the notice of the assessment of liability for tax, serve a notice of review upon the minister.

(2) A notice of review served under subsection (1) shall be in writing and shall set out clearly the reasons for the review and the facts related to the review.

(3) Upon receipt of a notice served under subsection (1), the minister shall conduct a review and may affirm, rescind or amend the assessment and shall send by registered mail to the company or serve upon the company notice of his or her decision.

Appeal to Trial Division

14.1 (1) Where a company is dissatisfied with the decision of the minister given under section 14, the company may appeal from that decision to the Trial Division.

(2) An appeal under subsection (1) shall be made by filing in the Trial Division, within 60 days after the date on which the notice of the decision was sent by registered mail or served under subsection 14(3), or a further period that a judge of the Trial Division may on application allow, a statement of claim naming the Crown as the defendant and setting out the grounds of the appeal.

(3) Upon a statement of claim being filed under subsection (2), the proceeding shall continue in the same manner as other proceedings in the Trial Division unless the court orders otherwise, and a party to the proceeding may apply to a judge of the Trial Division for directions as to the conduct of or steps to be taken in the proceeding and a judge of the Trial Division may make the order that he or she thinks advisable respecting the conduct of the proceeding and steps to be taken.

(4) Upon an appeal under this section, the Trial Division may affirm, set aside or vary the decision appealed and may, in delivering a judgment disposing of the appeal, order payment or repayment of the tax, interest and penalties, or costs, by the company or the government of the province.

 

4. Section 15 of the Act is amended by deleting the number "14" wherever it occurs and substituting the number "14.1".

 

5. Section 17.1 of the Act is amended by deleting paragraph (e) and substituting the following:

(e) respecting the manner in which returns are to be filed;

(e.1) respecting a variation in the time of filing a return and the criteria required for a varied time of filing;

(e.2) respecting the forms of returns and the information required with a return;

(e.3) respecting reviews of disputed assessments and liability for tax by the minister; and

 

6. Section 25 of the Act is repealed and the following substituted:

Failure to pay tax or file returns

25. (1) A company that fails to pay a tax or part of a tax in accordance with section 3 or 8 or to file a return or make a payment in accordance with section 4 or 5 within the required time may be liable, regardless of whether the company is prosecuted or convicted under this Act, to a fine to be assessed by the minister

(a) not exceeding $100 for each day during which the failure continued; or

(b) of 10% of the tax that is unpaid,

and a fine under this subsection shall be considered to be and may be collected as tax payable under this Act.

(2) The minister is not bound by a return or information supplied by or on behalf of a company and the minister may, notwithstanding a return or information supplied by the company, or where a return has not been sent to the minister as required, make the assessment contemplated under this Act.