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Copyright © 2011: Queen's Printer,
Statutes of Newfoundland and Labrador 2011
AN ACT TO AMEND THE REVENUE ADMINISTRATION ACT
(Assented to May 31, 2011)
Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:
SNL2009 cR-15.01 as amended
1. Subparagraph 2(xx)(ii) of the Revenue Administration Act is repealed and the following substituted:
(ii) for the purpose of Part VII, means a person who carries out mining operations on or under lands within the province, whether or not that person holds a mining lease to extract minerals;
2. The Act is amended by adding immediately after section 11 the following:
11.1 (1) For the purpose of Part VII, where an operator receives revenue from or incurs an expenditure payable to a person with whom he or she does not deal at arms length, the operator shall, in addition to the other records required under this Act and the regulations, before the records for that year are required, make or obtain records or documents that provide a description that is complete and accurate in all material aspects of
(a) the property or services to which the transaction relates;
(b) the terms and conditions of the transaction and their relationship to the terms and conditions of each other transaction entered into between the participants to the transaction;
(c) the identity of the participants to the transaction and their relationship to each other at the time the transaction was entered into;
(d) the functions performed, the property used or contributed and the risks assumed, with respect to the transaction, by the participants in the transaction;
(e) the data and methods considered and the analysis performed to determine the transfer prices or the allocations of profits or losses or contributions to costs, with respect to the transaction; and
(f) the assumptions, strategies and policies that influenced the determination of transfer prices or the allocations of profits or losses or contributions to costs, with respect to the transaction.
(2) For each subsequent year in which the transaction continues, the operator shall make or obtain records that completely and accurately describe each material change in the year with respect to matters referred to in subsection (1).
(3) An operator shall provide records or documentation required under this section to the minister within 3 months of a request by the minister for those records.
(4) Notwithstanding subsection (2) or (3), where, before the coming into force of this section an operator did not keep records required to be submitted to the minister under this section, that operator shall make or obtain those records with respect to the current year to the satisfaction of the minister and shall submit those records to the minister within 6 months of the coming into force of this section.
(5) Where an operator fails to comply substantially with the requirements of this section, a court hearing a matter relating to the administration or enforcement of this Act shall, on motion of the minister, prohibit the introduction of a record or document required under this section.
3. (1) Paragraph 82(9)(a) of the Act is repealed and the following substituted:
(a) a tax imposed under this Part;
(2) Subsection 82(9) of the Act is amended by adding immediately after paragraph (e) the following:
(e.1) costs incurred for research and development;
4. (1) Subsection 84(1) of the Act is repealed and the following substituted:
Corporate income tax credit
84. (1) For the purpose of paragraph 80(a), an operator may, in respect of the current tax year, credit against the tax otherwise payable, an amount in respect of corporate income tax paid to the province in the preceding year as determined under this section.
(2) Section 84 of the Act is amended by adding immediately after subsection (2) the following:
(2.1) Notwithstanding that the corporate income tax from a preceding year is used in calculating a credit under this section, a credit under this section
(a) shall be applicable only for the 10 year period referred to in subsection (2); and
(b) shall not exceed the amount referred to in subsection (2).
(2.2) Where, in a calculation of the corporate income tax credit under this section the corporate income tax from a preceding year is used but 10 consecutive years beginning in the year in which commercial production was achieved have expired, that method of calculation shall not revive an entitlement to a credit under this section.
(2.3) Notwithstanding another provision of this section, where an operator achieves commercial production after the coming into force of this subsection, the period of 10 consecutive years referred to in subsection (2) shall begin to run one year after the operator achieved commercial production.
(3) Section 84 of the Act is amended by adding immediately after subsection (4) the following:
(5) Where a corporate income tax credit has been claimed with respect to the corporate income tax paid for a particular tax year and an operator has subsequently been subject to a reassessment with respect to that tax year, the operator shall inform the minister of that reassessment and the mining tax payable under this Part shall be reassessed as appropriate.
5. Subsection 3(1) of this Act is considered to have come into force on May 28, 2009.