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St. John's, Newfoundland and Labrador, Canada

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Revised Statutes of Newfoundland 1990


CHAPTER I-1

AN ACT RESPECTING INCOME TAX

Analysis

1. Short title

PART I
INTERPRETATION

2. Interpretation

PART II
INCOME TAX

3. Liability for tax

4. Individual tax

5. Capital gains refund to mutual fund trust

6. Corporation tax

7. Capital gains refund to mutual fund corporations

8. Foreign tax credits

9. Small business deductions

10. Tax credits

11. Farming or fishing

12. Individuals

13. Returns of income, assessments and withholding

14. Reassessment

15. Farmers and fishermen

16. Other individuals

17. Payment by corporations

18. Returns, payments and interest

19. Refund for tax credits

20. Amount on which instalment computed

21. Penalties

22. Repeated failures

23. Late or deficient instalments

24. Refunds

25. Objections

26. Appeals

27. Reply to appeal

28. Trial

29. Appeals

30. Practice and procedure

PART III
ADMINISTRATION AND ENFORCEMENT

31. Administration

32. Regulations

33. Debts due to Crown

34. Certificates

35. Minister's warrant

36. Acquisition of debtor's property

37. Payment of money seized from tax debtor

38. Direction to seize chattels

39. Taxpayers leaving Canada

40. Money withheld

41. Director's liability

42. Books and records

43. Inspections, privileges, etc.

44. Penalty for failure to comply with regulations

45. Offence and penalty

46. Offence

47. Actions or suits

48. Revealing confidential information

49. Offence by corporation

50. No power to decrease punishment

51. Information or complaint

PART IV
COLLECTION OF TAX

52. Collection agreement

53. Application of payment

54. No action against persons withholding tax

55. Deduction at source

56. Non-agreeing provinces

57. Reciprocal enforcement of judgments


Short title

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

RSN1970 c163 s1

PART I
INTERPRETATION

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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 will collect taxes payable under that province's income tax statute and will make payments to that province in respect of the taxes so collected;

(b) "amount" means money, rights or things expressed in terms of the amount of money or the value in terms of money of the rights or things;

(c) "assessment" includes a reassessment;

(d) "business" includes a profession, calling, trade, manufacture or undertaking and includes an adventure or concern in the nature of trade but does not include an office or employment;

(e) "collection agreement" means an agreement entered into under subsection 52(1);

(f) "corporation" includes an incorporated company and a "corporation incorporated in Canada" includes a corporation incorporated in a part of Canada before or after it became part of Canada;

(g) "Department of Finance" means the Department of Finance of the province or, where a collection agreement has been entered into, means

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

(ii) in relation to another matter, the Department of National Revenue for Canada;

(h) "deputy head" and "assistant deputy head" mean the Deputy Minister of Finance and the Assistant Deputy Minister of Finance of the province, and, where a collection agreement is entered into, "deputy head" means the Deputy Minister of National Revenue for Taxation of Canada;

(i) "employed" means performing the duties of an office or employment;

(j) "employee" includes an officer;

(k) "employer", in relation to an officer, means the person from whom the officer receives his or her remuneration;

(l) "Federal Act" means the Income Tax Act, chapter 148 of The Revised Statutes of Canada, 1952;

(m) "Federal Regulations" means the regulations made under the Federal Act;

(n) "fiscal period" means a fiscal period determined in accordance with and for the purposes of the Federal Act;

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

(p) "individual" means a person other than a corporation and includes a trust or estate as defined in subsection 104(1) of the Federal Act;

(q) "Inquiries Act" means the Inquiries Act, chapter 1-11 of the Revised Statutes of Canada, 1985;

(r) "loss" means a loss as determined in accordance with and for the purposes of the Federal Act;

(s) "Minister of Finance" means the Minister of Finance of the province or, where a collection agreement is entered into, means

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

(ii) in relation to another matter, the Minister of National Revenue;

(t) "Minister of National Revenue" means the Minister of National Revenue for Canada, but in a provision of the Federal Act that is incorporated by reference in this Act, unless a collection agreement has been entered into, a reference to the minister shall be construed for the purposes of this Act as a reference to the Minister of Finance;

(u) "permanent establishment" means permanent establishment as defined in the Federal Regulations;

(v) "person" or a word or expression descriptive of a person, includes a body corporate and politic, and the heirs, executors, administrators or other legal representatives of the person, according to the law of that part of Canada to which the context extends;

(w) "prescribed" in the case of a form or the information to be given on a form, means prescribed by the Minister of Finance and, in other cases, means prescribed by the regulations;

(x) "province" does not include

(i) in respect of the 1977 and earlier taxation years, the Northwest Territories, and the Yukon Territory, and

(ii) in respect of the 1978 and 1979 taxation years, the Yukon Territory;

(y) "Receiver General of Canada" means in a provision of the Federal Act that is incorporated by reference in this Act the Minister of Finance, but, where a collection agreement is entered into, a reference to the Receiver General of Canada shall be read and construed as a reference to the Receiver General of Canada;

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

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

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

(cc) "taxable income" means taxable income as determined in accordance with and for the purposes of the Federal Act, subject to variation on objection or on appeal in accordance with the provisions of the Federal Act;

(dd) "taxation year" means

(i) in the case of a corporation, a fiscal period,

(ii) in the case of an individual, a calendar year, and

(iii) in the case of an estate or trust arising on death, notwithstanding subparagraph (ii), a taxation year as defined in paragraph 104(23)(a) of the Federal Act,

and when a taxation year is referred to by reference to a calendar year, the reference is to the taxation year coinciding with or ending in that year; and

(ee) "taxpayer" includes a person whether or not liable to pay tax.

(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 purposes of this Act, except where they are at variance with the definitions contained in this section, the definitions and interpretations contained in or made by the Federal 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) Interest computed under subsections 161(1), (2) and (11), subsections 164(3), (3.1) and (4) and subsections 227(8.3) and (9.2) of the Federal Act as they apply for the purposes of this Act, shall be compounded daily and, where interest is computed on an amount under those provisions and is unpaid on the day it would, but for this subsection, have ceased to be computed under that provision, interest at the rate provided by that provision shall be compounded daily on unpaid interest from that day to the day it is paid.

(7) Where a provision, in this subsection referred to as "that section", of the Federal Act or the Federal Regulations is made applicable for the purposes 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 purposes 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 purposes of this Act shall be read as a reference to the particular provision as it applies for the purposes 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 Act, that section shall be read without reference in it to the Bankruptcy Act;

(g) a reference in that section to a Federal Regulation that applies for the purposes of this Act shall be read as a reference to the regulation as it applies for the purposes of this Act; and

(h) 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

Deputy Minister of National Revenue for Taxation

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

The Judicature Act, 1986

the Federal Court of Canada

the Supreme Court of Newfoundland

Federal Court Act

The Judicature Act, 1986

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

RSN1970 c163 s2; 1972 No11 s2;
1972 No59 s2 & Sch; 1983 c54 s1; 1989 c15 s1

PART II
INCOME TAX

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Liability for tax

3. (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 as defined in subsection 4(4).

(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.

RSN1970 c163 s3; 1972 No11 s2; 1972 No59 s3

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Individual tax

4. (1) The tax payable for a taxation year by an individual who resided in the province on the last day of the taxation year and had no income earned in the taxation year outside the province is the percentage of the tax payable under the Federal Act for that year specified in subsection (3).

(2) The tax payable 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,

is the amount that bears the same relation to the percentage of the tax payable under the Federal Act for that year specified in subsection (3) that his or her income earned in the taxation year in the province bears to his or her income for the year.

(3) In addition to the tax payable under subsections (1) and (2), an individual, other than a trust, who resided in the province on December 31, 1978, shall pay a tax for the 1978 taxation year equal to the amount deductible by him or her under a provision of the Federal Act based on paragraph 13 of the Notice of Ways and Means Motion to Amend the Income Tax Act tabled in the House of Commons on April 10, 1978.

(4) The tax payable under subsection (3) shall not be taken into consideration in determining the payments required to be made by section 15 or 16.

(5) For the 1982 taxation year, the tax payable by an individual described in paragraph 4(2)(a) for the year is the amount equal to the aggregate of

(a) the amount determined under subsection (2) for the year; and

(b) an amount that bears the same relation to the product of the amount added under subsection 120.1(2) of the Federal Act for the year by the percentage specified in subsection (8) for the year that his or her income earned in the taxation year outside the province bears to his or her income for the year.

(6) For the 1982 taxation year, the tax payable by an individual described in paragraph 4(2)(b) for the year is the amount by which

(a) the amount determined under subsection (2) for the year

exceeds

(b) an amount that bears the same relation to the product of the amount added under subsection 120.1(2) of the Federal Act for the year by the percentage specified in subsection (8) for the year that his or her income earned in the taxation year in the province bears to his or her income for the year.

(7) An individual to whom section 3 is applicable for a taxation year is considered to have paid on account of his or her tax for the year an amount equal to the product of

(a) an amount that bears the same relation to the excess determined under subsection 120.1(4) of the Federal Act for the year that his or her income earned in the taxation year in the province bears to his or her income for the year

multiplied by

(b) the percentage specified in subsection (8) for the year.

(8) For the purposes of this section the percentage of the tax payable under the Federal Act to be used for computing the tax payable under this section is

(a) 16% in respect of the 1962 taxation year;

(b) 17% in respect of the 1963 taxation year;

(c) 18% in respect of the 1964 taxation year;

(d) 21% in respect of the 1965 taxation year;

(e) 24% in respect of the 1966 taxation year;

(f) 28% in respect of the 1967 and 1968 taxation years;

(g) 30.5% in respect of the 1969 taxation year;

(h) 33% in respect of the 1970 and 1971 taxation years;

(i) 36% in respect of the 1972 and 1973 taxation years;

(j) 38% in respect of the 1974 taxation year;

(k) 40% in respect of the 1975 taxation year;

(l) 41% in respect of the 1976 taxation year;

(m) 57.5% in respect of the 1977 taxation year;

(n) 58% in respect of the 1978, 1979, 1980 and 1981 taxation years;

(o) 59% in respect of the 1982 taxation year;

(p) 60% in respect of the 1983, 1984, 1985, 1986, 1987 and 1988 taxation years;

(q) 61% in respect of the 1989 taxation year; and

(r) 62% in respect of the 1990 and subsequent taxation years.

(9) An individual who, under the Federal Act, pays tax computed in accordance with subsection 117(6) of that Act may, instead of the tax under subsection (1), pay a tax determined by reference to a table prepared in accordance with prescribed rules.

(10) 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 a non-business-income tax was paid by that individual to the government of a country other than Canada, he or she may deduct from the tax payable by him or her under this Act for that taxation year an amount equal to the lesser of

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

(b) that proportion of the tax otherwise payable under this Act for that taxation year, not including the tax payable under subsection (3), that

(i) the aggregate of the taxpayer's incomes from sources in that country excluding a portion that was deductible by the taxpayer under subparagraph 110(1)(f)(i) of the Federal Act or in respect of which an amount was deductible by the taxpayer under section 110.6 of the Federal Act

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

(B) where section 114 of the Federal Act is applicable, for the period in the year referred to in paragraph 114(a),

minus amounts deducted by the taxpayer under section 110.6 or paragraph 111(1)(b) of the Federal Act or deductible by the taxpayer under paragraphs 110(1)(d), (d.1), (d.2), (d.3), (f) or (j) or section 112 of the Federal Act for the year or in respect of the period,

is of

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

(A) in the year where section 114 of the Federal Act is not applicable, or

(B) where section 114 of the Federal Act is applicable, in the period of the year referred to in paragraph 114(a),

minus amounts deductible by the taxpayer under paragraph 110(1)(d), section 110.1, paragraph 111(1)(b) or section 112 of the Federal Act for the year or the period.

(11) For the purposes of subsection (12), "tax payable" and "tax otherwise payable" mean the amount that would, but for sections 120.1 and 127.4 of the Federal Act, be the tax otherwise payable under this Act.

(12) In this section,

(a) "tax payable under the Federal Act" by an individual in respect of a taxation year means the amount determined under paragraph 120(4)(c) of the Federal Act for the year in respect of that individual;

(b) "income earned in the taxation year in the province" means the income earned in the taxation year in the province as determined in accordance with regulations made under paragraph 120(4)(a) of the Federal Act;

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

(d) "income for the year" means

(i) in the case of an individual resident in Canada during part only of the taxation year in respect of whom section 114 of the Federal Act applies, the aggregate of

(A) the individual's income for the period in the year referred to in paragraph 114(a) of the Federal Act as determined in accordance with and for the purposes of the Federal Act, and

(B) his or her income for the portion of that year that is not included in the period referred to in clause (A), computed under paragraphs 115(1)(a), (b) and (c) of the Federal Act as though the portion of the year were the whole taxation year, and

(ii) in the case of an individual not resident in Canada at any time in the taxation year, his or her income for the year as computed under paragraphs 115(1)(a), (b) and (c) of the Federal Act.

(13) For the purposes of subsection (10) and paragraph 8(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 year is the non-business-income tax paid by him or her to the government of that country in respect of that year as computed under paragraph 126(7)(c) of the Federal Act for the purposes of that Act.

RSN1970 c163 s4; 1971 No14 s2; 1972 No11 s2; 1972 No59 s4 & Sch; 1974 No22 s2; 1975-76 No3 s2; 1977 c51 s1; 1978 c34 s1; 1982 c4 s1; 1983 c54 s2; 1986 c28 ss1 & 2; 1989 c4 s1; 1989 c15 s2

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Capital gains refund to mutual fund trust

5. (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 subsection 4(8) 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.

RSN1990 cI-1 s5

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Corporation tax

6. (1) The tax payable by a corporation for a taxation year is 17% of the corporation's taxable income earned in the year in the province.

(2) This section is applicable to the 1969 and subsequent taxation years, but where a corporation has a taxation year part of which is before and part of which is after the commencement of 1969, the tax payable by the corporation for that taxation year is the sum of

(a) an amount bearing the same ratio to the tax for the whole of that taxation year that would be payable by the corporation, if subsection (1) had not been enacted, as the number of days of that taxation year which fall in 1968 bears to the number of days in the whole of that taxation year; and

(b) an amount bearing the same ratio to the tax for the whole of that taxation year that would be payable by the corporation, if subsection (1) were applied in respect of the whole of that taxation year, as the number of days of that taxation year which fall in 1969 bears to the number of days in the whole of that taxation year.

(3) For the purposes of this section, "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 regulations made under paragraph 124(4)(a) of the Federal Act.

(4) 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 aggregate of

(a) 10% of an amount calculated by allocating to the province, on the same basis as set out under the regulations made under paragraph 124(4)(a) of the Federal Act that is the least of the amounts calculated under paragraphs 125(1)(a), (b) and (c) of the Federal Act and allowed for the purposes of subsection 125(1) of the Federal Act; and

(b) 17% of an amount calculated by deducting from the corporation's total taxable income earned in the province during the taxation year the amount on which the 10% rate is applied in paragraph (a) of this subsection.

(5) Subsection (4) is applicable to the 1984 and subsequent taxation years, but where a corporation has a taxation year part of which is before and part of which is after the commencement of 1984, subsection (4) is applicable only to that portion of the taxation year of that corporation that falls within the 1984 calendar year.

RSN1970 c163 s5; 1972 No59 Sch; 1975-76 No28 s1; 1978 c34 s2; 1979 c6 s1; 1980 c9 s1; 1981 c85 s6; 1982 c4 s2; 1984 c6 s1; 1986 c28 s3; 1989 c4 s2

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Capital gains refund to mutual fund corporations

7. (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 that proportion of the amount of the refund for the year calculated under subsection 131(2) of the Federal Act that

(a) the percentage referred to in subsection 6(1) for the year

is of

(b) the percentage referred to in subparagraph 131(6)(d)(i) of the Federal 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.

1974 No22 s4

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Foreign tax credits

8. (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) 17% of the product of

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

(ii) that proportion of the taxable income earned in the year by the corporation that is determined to have been earned in the year in the province in accordance with regulations made under paragraph 124(4)(a) 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 by the corporation as determined in accordance with regulations made under paragraph 124(4)(a) of the Federal Act

is of

(ii) the aggregate of the taxable income earned in the year in each province by the corporation as determined in accordance with regulations made under paragraph 124(4)(a) of the Federal Act.

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

RSN1970 c163 s6; 1972 No11 s2; 1972 No59 s5; 1975-76 No3 s3; 1977 c51 s2; 1982 c4 s3; 1989 c4 s3

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Small business deductions

9. (1) In this section

(a) "active business" means an active business carried on by a corporation as defined in paragraph 125(7)(a) of the Federal Act;

(b) "corporation" means a corporation that

(i) was incorporated under the Corporations Act after April 2, 1987 and before April 3, 1991, and

(ii) with respect to a taxation year, is eligible to claim a deduction under subsection 125(1) of the Federal Act;

(c) "non-qualifying business" means, with respect to a corporation, a business that is

(i) the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor,

(ii) a business of providing services where more than 2/3 of the gross revenue for the taxation year of that business

(A) is derived from services provided to, or performed for or on behalf of, 1 entity related to the corporation, and

(B) can reasonably be attributed to services performed by persons who are specified shareholders of the corporation or persons related to specified shareholders of the corporation,

unless the corporation employs in the business throughout the taxation year more than 5 full-time employees who are not specified shareholders of the corporation or persons related to specified shareholders of the corporation, or

(iii) a business the principal purpose of which is

(A) to provide managerial, administrative, financial, maintenance or other similar services,

(B) to lease property other than real property, or

(C) to provide a service described in clause (A) and to lease property other than real property,

to 1 or more businesses connected any time in the taxation year with the corporation; and

(d) "specified shareholder" means a specified shareholder within the meaning of paragraph 125(9)(c) of the Federal Act as that paragraph existed on January 1, 1984.

(2) For the purposes of this section, individuals or corporations or both are related if they are related within the meaning of section 251 of the Federal Act.

(3) There may be deducted from the tax otherwise payable under this Part, for the 1st, 2nd and 3rd taxation years of a corporation, an amount equal to 10% of an amount equal to, for each taxation year, that proportion of the least of the amounts determined under paragraphs 125(1)(a), (b) and (c) of the Federal Act for the taxation year that

(a) the amount of that portion of its taxable income earned in the taxation year in the province, determined in accordance with paragraph 124(4)(a) of the Federal Act,

bears to

(b) the total amount of the portions of its taxable income earned in the taxation year in all provinces, determined in accordance with paragraph 124(4)(a) of the Federal Act.

(4) A corporation that wishes to apply for and obtain a deduction under this section shall

(a) apply on a form prescribed by the Minister of Finance; and

(b) supply the Minister of Finance with information which the Minister of Finance requires.

(5) Where the Minister of Finance has received an application under subsections (3) and (4) and is satisfied that a corporation has complied with this section, the Minister of Finance may allow the corporation to make the deduction and where the deduction is allowed, the Minister of Finance shall return the certified application form to the corporation.

(6) In order to claim a deduction for a taxation year under this section, a corporation is required to file its annual return for the taxation year, as required by this Act, accompanied by the certified application form referred to in subsection (5).

(7) A corporation is not eligible for a deduction under this section for a taxation year where it or a predecessor corporation within the meaning of section 87 of the Federal Act, at any time since its incorporation

(a) was associated with another corporation within the meaning of section 256 of the Federal Act, unless the Minister of Finance has waived this restriction with respect to the association with the other corporation;

(b) carried on a non-qualifying business in Canada;

(c) carried on an active business by reason of being a member of a partnership, where another member of the partnership was not eligible for a deduction under subsection (3) for the taxation year;

(d) was a beneficiary of a trust, where another beneficiary of the trust was not eligible for a deduction under subsection (3) of the taxation year;

(e) carried on an active business by reason of being a co-venturer in a joint venture, where another co-venturer in the joint venture was not eligible for a deduction under subsection (3) for the taxation year;

(f) has carried on an active business by reason of having acquired, by purchase or otherwise, or leased property from another corporation, called the "vendor", in respect of which it, any of its shareholders, or persons related to it or its shareholders, beneficially owned at any time, directly or indirectly, more than 10% of the issue shares of a class of the capital stock of the vendor; or

(g) has carried on an active business by reason of having acquired, by purchase or otherwise, or leased property from a sole proprietorship or partnership in respect of which the corporation, any of its shareholders, or persons related to it or its shareholders beneficially owned the sole proprietorship or partnership.

(8) A corporation shall not be entitled to a deduction under this section for the taxation year where, as a result of a transaction or an event, or a series of transactions or events, property of a business has been transferred, or has been considered to have been transferred, either directly or indirectly, to the corporation, and it is reasonable for the Minister of Finance to believe that 1 of the principal purposes of the transfer or considered transfer is to enable the corporation to claim a deduction from tax under this section that it could not otherwise claim.

(9) A corporation is not entitled to a deduction under this section for the taxation year where, as a result of a disposition, a disposition considered to have been made or a series of dispositions of shares of a corporation, it is reasonable for the Minister of Finance to believe that 1 of the principal purposes of the disposition or considered disposition is to enable the corporation to claim a deduction from tax under this section that it could not otherwise claim.

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

(a) defining, restricting or enlarging the meaning of a word or expression used in this section;

(b) governing a deduction to be allowed under this section and restrictions, limitations, terms and conditions relating to a deduction.

(11) A regulation made under this section may be made retroactive to a date not earlier than April 3, 1987.

1987 c22 s1; 1989 c4 s4

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Tax credits

10. (1) After 1987 there may be deducted from the tax otherwise payable under this Act for a taxation year by an individual residing in the province on the last day of the taxation year, under section 4 an amount equal to the aggregate of

(a) the tax credit provided to an individual for the taxation year under

(i) the Venture Capital Act, and

(ii) the Stock Savings Tax Credit Act; and

(b) the tax credits mentioned in paragraph (a) that were allowed for any of the immediately preceding 7 taxation years to the extent that the tax credits have not been previously deducted under this section.

(2) The amount of the tax credit allowed to be deducted under subsection (1) is required to be deducted

(a) in the taxation year for which the tax credit is allowed; or

(b) where the taxpayer does not have tax otherwise payable in the taxation year for which the tax credit is allowed against which the amount of the tax credit can be deducted, in the earliest taxation year following in which the taxpayer has tax otherwise payable against which the amount of the tax credit can be deducted.

(3) The Minister of Finance may set procedures that the minister considers appropriate with respect to the manner in which a tax credit mentioned in subsection (1) is to be claimed.

(4) The amount of investment for which a person may be entitled to a tax credit under the Stock Savings Tax Credit Act and the Venture Capital Act in 1 year under this section shall not exceed $10,000.

(5) For the purposes of this section, the definitions and interpretations contained in or made under the Stock Savings Tax Credit Act or the Venture Capital Act apply.

1988 c14 s31

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Farming or fishing

11. (1) Where an individual whose chief source of income has been farming or fishing during a taxation year, in this section referred to as the "year of averaging", has filed an election in accordance with subsection 119(1) of the Federal Act for the year of averaging, the tax payable under this Part for the year of averaging is an amount determined by the following rules:

(a) determine the amount, in this section referred to as the "average tax", for each year in the averaging period, which, in this section, has the meaning given to that expression under section 119 of the Federal Act, equal to the tax that would be payable under the Federal Act, within the meaning of section 4 of this Act, where the taxable income for the year was the average net income for the year within the meaning of paragraph 119(1)(c) of the Federal Act;

(b) determine the amount, in this section referred to as the "provincial tax", for each year in the averaging period equal to the tax that would be payable under this Part for the year, where the tax that would be payable under the Federal Act for the year, within the meaning of section 4 of this Act, was the average tax for the year;

(c) deduct from the aggregate of the provincial taxes as determined under paragraph (b) for the years in the averaging period the aggregate of the taxes payable under this Part for the preceding years, which, in this section, has the meaning given to that expression under section 119 of the Federal Act; and

(d) the remainder obtained under paragraph (c) is the tax payable under this Part for the year of averaging.

(2) Subsection (1) applies only in the case of an individual whose chief source of income throughout the averaging period was from farming or fishing.

(3) For the purposes of this Act, where the tax payable by an individual under this Part for the year of averaging would, but for subsection (2), be an amount determined under subsection (1), the tax that would have been payable by the individual under the Federal Act for the year of averaging, within the meaning of section 4 of this Act, had no election been made by the individual under section 119 of the Federal Act for that year, shall be considered to be the tax payable under the Federal Act by the individual for the year of averaging.

(4) Where this section, except subsection (3), is applicable to the computation of a taxpayer's tax for a taxation year and the aggregate of the taxes payable under this Part for the preceding years exceeds the aggregate of the provincial taxes as determined under paragraph (1)(b) for the years in the averaging period, the excess shall be considered to be an overpayment made when the notice of assessment for the year of averaging was mailed.

(5) The provisions of this Part relating to the assessment of tax, interest and penalties apply, with the necessary changes, to an assessment by which, for the purposes of this section, it is determined by the Minister of Finance that no tax is payable under this Part for the year of averaging or that an overpayment has been made as described in subsection (4).

(6) Where an election for a year of averaging filed under subsection 119(1) of the Federal Act has been revoked by the taxpayer in accordance with subsection 119(5) of the Federal Act, subsection (1) of this section is not applicable in determining the tax payable under this Part for the year of averaging.

RSN1970 c163 s8; 1972 No11 s2; 1972 No59 Sch; 1977 c51 s3

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Individuals

12. (1) The tax is not payable by a person in respect of a period when that person was

(a) exempt from tax under subsection 149(1) of the Federal Act; or

(b) 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 purposes of this Act.

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

RSN1970 c163 s9; 1972 No11 s2; 1972 No59 Sch

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Returns of income, assessments and withholding

13. Sections 150 and 151 and subsections 152(1), (2), (3), (4), (4.1), (5), (6), (7) and (8) and subsections 153(1), (1.1), (1.2), (1.3), (1.4), (2) and (3) of the Federal Act apply for the purposes of this Act.

1989 c15 s3

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Reassessment

14. Where a collection agreement is in effect, notwithstanding that more than 3 years have elapsed since the day of mailing a notice of an original assessment of tax, interest or penalties payable by a taxpayer for a taxation year or of a notification that no tax is payable by the taxpayer for the year, where the tax payable under Part I of the Federal Act by the taxpayer for the year is reassessed, the Minister of Finance shall reassess or make additional assessments or assess tax, interest or penalties, as the circumstances require.

1989 c15 s3

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Farmers and fishermen

15. (1) An individual whose chief source of income is farming or fishing, other than an individual to whom subsection 153(2) of the Federal Act applies, shall pay to the Minister of Finance

(a) before January 1 in each taxation year, 2/3 of

(i) the amount estimated by him or her under section 151 of the Federal Act, as it applies for the purposes of this Act, to be the tax payable under this Act by him or her for the years computed without reference to section 127.3 of the Federal Act, or

(ii) the tax payable under this Act for the immediately preceding year; and

(b) before May 1 in the next year, the remainder of the tax as estimated under section 151 of the Federal Act as it applies for the purposes of this Act.

(2) Where a collective agreement is entered into, an individual to whom subsection (1) applies shall pay an amount under paragraph (1)(a) computed in respect of the same year as that in respect of which the amount is computed that that individual is liable to pay under paragraph 155(a) of the Federal Act.

(3) Where a collection agreement is entered into, an individual to whom subsection (1) applies shall pay an amount under paragraph (a) computed in respect of the same year as that in respect of which the amount is computed that he or she is liable to pay under paragraph 156(a) of the Federal Act.

(4) For the purposes of section 15 and this section, "tax payable under the Federal Act" for a taxation year has the meaning given that expression in paragraph 4(12)(a), whether the taxation year is before or after the coming into force of this Act.

(5) Where no federal instalments are required under section 156.1 of the Federal Act, the requirements for payment by instalments under sections 13 and 16 of this Act are not applicable and the individual shall pay to the Minister of Finance his or her estimated tax payable on or before April 30th of the following year.

RSN1970 c163 s14; 1972 No11 s2; 1972 No59 Sch; 1974 No107 s2; 1983 c54 s5; 1986 c28 s7; 1989 c15 s4

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Other individuals

16. (1) An individual, other than an individual to whom subsection 153(2) of the Federal Act applies for the purposes of this Act or to whom section 15 applies, shall pay to the Minister of Finance

(a) before March 16, June 16, September 16, and December 16 in each taxation year, an amount equal to 1/4 of

(i) the amount estimated by him or her under section 151 of the Federal Act, to be the tax payable under this Act by him or her for the year without reference to section 127.3 of the Federal Act, or

(ii) the tax payable under this Act by him or her for the immediately preceding taxation year; and

(b) before May 1 in the next year, the remainder of the tax as estimated under section 151 of the Federal Act, as it applies for the purposes of this Act.

(2) In applying subsection 16(1) of the Act, as enacted by subsection (1), to taxation years before the 1990 taxation year the reference to "March 16, June 16, September 16 and December 16" shall be read as "April 1, July 1, October 1 and January 1".

RSN1970 c163 s15; 1972 No11 s2; 1972 No59 Sch; 1974 No107 s3; 1983 c54 s6; 1989 c15 s5

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Payment by corporations

17. (1) Subsections 157(1), (2), (2.1) and (4) of the Federal Act apply for the purposes 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 purposes of this Act shall pay amounts in respect of the year computed under the same subparagraph as it applies for the purposes of this Act.

1989 c15 s6

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Returns, payments and interest

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

1989 c15 s7

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Refund for tax credits

19. In applying subsection 160.1(1) of the Federal Act for the purposes of this Act, "refund" includes a refund that arises by reason of a provision of this Act

(a) that allows a taxpayer to deduct an amount from the tax payable under this Act; or

(b) that considers an amount to have been paid by a taxpayer as or on account of the tax payable under this Act by him or her.

1989 c15 s7

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Amount on which instalment computed

20. 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 purposes of this Act, the taxpayer shall be considered for the purposes of subsection 161(2) of the Federal Act, as it applies for the purposes 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 purposes of this Act.

1989 c15 s7

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Penalties

21. (1) A person who fails to file a return of income for a taxation year as required by subsection 150(1) of the Federal Act, as it applies for the purposes of this Act, is liable to a penalty equal to the aggregate of

(a) an amount equal to 5% of his or her tax for the year under this Act that was unpaid when the return was required to be filed; and

(b) the product obtained when 1% of his or her tax for the year under this Act that was unpaid when the return was required to be filed is multiplied by the number of complete months, not exceeding 12, from the date on which the return was required to be filed to the date on which the return was filed.

(2) A person

(a) who fails to file a return of income for a taxation year as and when required by subsection 150(1) of the Federal Act, as it applies for the purposes of this Act;

(b) on whom a demand for a return for the year has been made under subsection 150(2) of the Federal Act, as it applies for the purposes of this Act; and

(c) who, at the time of failure, has been assessed for a penalty under subsection (1) or this subsection in respect of a return of income for any of the 3 preceding taxation years,

is liable to a penalty equal to the aggregate of

(d) an amount equal to 10% of his or her tax for the year under this Act that was unpaid when the return was required to be filed; and

(e) the product obtained when 2% of his or her tax for the year under this Act that was unpaid when the return was required to be filed is multiplied by the number of complete months, not exceeding 20, from the date on which the return was required to be filed to the date on which the return was filed.

(3) A person who fails to file a return as required by subsection 150(3) of the Federal Act, as it applies for the purposes of this Act, is liable to a penalty of $10 for each day of default but not exceeding $50.

(4) A person who fails to provide information required on a prescribed form under this Act or a regulation or under a provision of the Federal Act or of the Federal Regulations that applies for the purposes of this Act is, except where, in the case of an individual, the Minister of Finance has waived the penalty, liable to a penalty of $100 for every failure unless, in the case of information required in respect of another person, a reasonable effort was made by the person to obtain the information from the other person.

(5) A person

(a) who fails to make an information return as and when required by this Act or a regulation or by a provision of the Federal Act or the Federal Regulations that applies for the purposes of this Act; or

(b) who fails to comply with a duty or obligation imposed by this Act or a regulation or a provision of the Federal Act or Federal Regulations that applies for the purposes of this Act,

is liable in respect of each failure, except where another provision of this Act sets out a penalty for the failure, to a penalty equal to the greater of $100 and the product obtained when $25 is multiplied by the number of days, not exceeding 100, during which the failure continues.

(6) Where a collection agreement is in effect, the Minister of Finance 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.

1989 c15 s8

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Repeated failures

22. (1) A person who

(a) fails to report an amount required to be included in computing his or her income in a return filed for a taxation year under section 150 of the Federal Act, as it applies for the purposes of this Act; and

(b) had failed to report an amount required to be so included in a return filed for the 3 preceding taxation years under section 150 of the Federal Act, as it applies for the purposes of this Act,

is liable to a penalty equal to 10% of the amount described in paragraph (a), except where he or she is liable to a penalty under subsection (2) in respect of that amount.

(2) A person who, knowingly, or under circumstances amounting to gross negligence in the carrying out of a duty or obligation imposed by or under this Act or a provision of the Federal Act, as it applies for the purposes of this Act, has made or participated in, assented to or acquiesced in the making of, a false statement or omission in a return, form, certificate, statement or answer, in this section referred to as a "return", filed or made in respect of a taxation year as required under this Act or a regulation, or a provision of the Federal Act or of the Federal Regulations, as that provision applies for the purpose of this Act, is liable to a penalty of the greater of $150 and 50% of the amount by which

(a) the tax for the year that would be payable by him or her under this Act if his or her taxable income for the year were computed by adding to the taxable income reported by him or her in his or her return for the year that portion of his or her understatement of income for the year that is reasonably attributable to the false statement or omission that if his or her tax payable for the year were computed by subtracting from the deductions from the tax otherwise payable by him or her for the year that portion of those deductions that may reasonably be attributed to the false statement or omission

exceeds

(b) the tax for the year that would have been payable by him or her under this Act had his or her tax payable for the year been assessed on the basis of the information provided in his or her return for the year.

(3) For the purposes of subsection (2), the taxable income reported by a person in his or her return for a taxation year shall be considered not to be less than nil and the "understatement of income for a year" of a person has the meaning assigned to that expression by subsection 163(2.1) of the Federal Act.

(4) Where, in an appeal under this Act, a penalty assessed by the Minister of Finance under this section is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the Minister of Finance.

(5) Where a collection agreement is in effect, the Minister of Finance may refrain from levying or may reduce a penalty provided in 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.

1989 c15 s8

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Late or deficient instalments

23. A person who fails to pay all or a part of an instalment of tax under this Act for a taxation year on or before the day on which the instalment is required to be paid by this Act or a provision of the Federal Act that applies for the purposes of the Act is liable to a penalty equal to 50% of the amount, by which

(a) the interest payable by him or her in respect of all instalments for the year under section 161 of the Federal Act, as it applies for the purposes of this Act

exceeds the greater of

(b) $1,000; and

(c) 25% of the interest that would have been payable by him or her in respect of all instalments for the year under section 161 of the Federal Act, as it applies for the purposes of this Act, where no instalment had been made for that year.

1989 c15 s8

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Refunds

24. (1) Subsections 164(1), (1.1), (1.2), (1.3), (1.31), (2), (3), (3.1), (4), (5.1), (6) and (7) of the Federal Act apply for the purposes 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 purposes 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.

1989 c15 s9

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Objections

25. Section 165 of the Federal Act applies for the purposes of this Act.

1989 c15 s10

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Appeals

26. (1) A taxpayer who has served a notice of objection to an assessment under subsection 165(1) of the Federal Act, as it applies for the purposes of this Act, may appeal to the Trial Division to have the assessment vacated or varied after either

(a) the Minister of Finance has confirmed the assessment or reassessment; or

(b) 90 days have elapsed after service of notice of objection and the Minister of Finance has not notified the taxpayer that the minister has vacated or confirmed the assessment or reassessment,

but an appeal under this section may not be instituted after the expiration of 90 days from the day notice has been mailed to the taxpayer in accordance with subsection 165(3) of the Federal Act, as it applies for the purposes of this Act, that the Minister of Finance has confirmed the assessment or reassessment.

(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 purposes of this Act,

(ii) his or her income earned in the taxation year in the province as defined in paragraph 4(12)(b), or

(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 4(12)(a); 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 6(3), 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 4(12)(a) or of the taxable income of a corporation.

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

(4) A notice of appeal shall be served upon the Minister of Finance 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.

(6) The appellant shall pay to the Registrar of the Supreme Court a fee of $15 upon the filing of the copy of the notice of appeal.

RSN1970 c163 s24; 1974 No57 Sch C; 1986 c28 s16; 1986 c42 Sch A; 1989 c15 s11

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Reply to appeal

27. (1) The Minister of Finance shall, within 60 days after the day the notice of appeal is received, or within a further time that the Trial Division or a judge of it may, either before or after the expiration of that time, allow, serve on the appellant and file in that 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 Trial Division or a judge of it may, in its or his or her discretion, strike out a notice of appeal or a part of it for failure to comply with subsection 26(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 Trial Division or a judge of it may, in its or his or her 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 26(5) and a new notice of appeal is not filed as permitted by the Trial Division or a judge of the court, that court or a judge may, in its or his or her 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 Trial Division or a judge of the court within the time ordered, that court or a judge may dispose of the appeal without notice to the Minister of Finance 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.

RSN1970 c163 s25; 1974 No57 Sch C;
1986 c42 Sch A

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Trial

28. (1) Upon the filing of the material referred to in sections 26 and 27, the matter shall be considered to be an action in the Trial Division and, unless that 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 Trial Division directs.

RSN1970 c163 s26; 1974 No57 Sch C;
1986 c42 Sch A; 1989 c15 s12

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Appeals

29. Sections 166, 167 and section 179 of the Federal Act apply for the purposes of this Act.

1989 c15 s13

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Practice and procedure

30. Except as provided in regulations made by the Lieutenant-Governor in Council, the practice and procedure of the Trial Division including the right of appeal and the practice and procedure relating to appeals, apply to a matter considered to be an action under section 28, and a judgment and order given or made in such an action may be enforced in the same manner and by the same process that a judgment or order given or made in an action commenced in that court.

RSN1970 c163 s28; 1986 c42 Sch A

PART III
ADMINISTRATION AND ENFORCEMENT

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Administration

31. Sections 220, 224, 225.1 and 225.2 of the Federal Act apply for the purposes of this Act.

1989 c15 s15

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Regulations

32. (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) providing in a case of doubt the circumstances in which, and extent to which, the Federal Regulations apply;

(c) providing for the calculation of the "Federal share of the costs of the 1978 Economic Stimulation Program" for the purposes of section 52; and

(d) 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 purposes 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.

RSN1970 c163 s31; 1972 No11 s2; 1972 No59 Sch; 1978 c34 s4

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Debts due to Crown

33. All taxes, interest, penalties, costs and other amounts payable under this Act are debts due to the Crown and recoverable in a court or in another manner provided by this Act.

RSN1970 c163 s32

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Certificates

34. (1) An amount payable under this Act by a person, in this section referred to as a "debtor", that has not been paid or a part of an amount payable under this Act by the debtor that has not been paid may be certified by the Minister of Finance as an amount payable by the debtor.

(2) On production to the Registrar of the Supreme Court, a certificate made under subsection (1) in respect of a debtor shall be registered in the Registry of the Supreme Court and when registered has the same effect, and proceedings may be taken on it, as if the certificate were a judgment obtained in the court against the debtor for a debt in the amount certified plus interest to the date of payment as provided by law and for the purposes of those proceedings, the certificate shall be considered to be a judgment of the court against the debtor for a debt due to the Crown enforceable in the amount certified plus interest to the date of payment as provided by law.

(3) All reasonable costs and charges incurred or paid in respect of the registration in the court of a certificate made under subsection (1) or in respect of a proceeding taken to collect an amount certified are recoverable in the same manner as if they had been included in the amount certified in the certificate when it was registered.

(4) Where a collection agreement is in effect, subsections (1) to (3) do not apply, but the Minister of Finance may proceed under section 223 of the Federal Act for the purpose of collecting an amount payable under this Act by a taxpayer.

1989 c15 s16

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Minister's warrant

35. The Minister of Finance 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 writ of execution issued out of the Trial Division.

RSN1970 c163 s34; 1986 c42 Sch A

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Acquisition of debtor's property

36. For the purpose of collecting debts owed by a person to the Crown under this Act, the Minister of Finance may purchase or otherwise acquire an interest in the person's property that the Minister of Finance is given a right to acquire in legal proceedings or under a court order or that is offered for sale on redemption and may dispose of an interest so acquired in the manner that he or she considers reasonable.

1986 c28 s19

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Payment of money seized from tax debtor

37. (1) Where the Minister of Finance has knowledge or suspects that a person is holding money that was seized by a peace officer in the course of administering or enforcing the criminal law of Canada from another person who is liable to make a payment under this Act, in this section referred to as the "tax debtor", and that is restorable to the tax debtor, the minister may, by registered letter or by a letter served personally, require that person to turn over the money otherwise restorable to the tax debtor in whole or in part to the Minister of Finance on account of the tax debtor's liability under this Act.

(2) The receipt of the Minister of Finance for money turned over as required by this section is a good and sufficient discharge of the requirement to restore the money to the tax debtor to the extent of the amount so turned over.

1986 c28 s19

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Direction to seize chattels

38. (1) Where a person has failed to pay an amount as required by this Act, the Minister of Finance may give 30 days notice to the person by registered mail addressed to his or her latest known address of the Minister of Finance's intention to direct that the person's goods and chattels be seized and sold, and, where the person fails to make the payment before the expiration of 30 days, the Minister of Finance may issue a certificate of the failure and direct that the person's goods and chattels that are located in the province be seized.

(2) Subsections 225(2), (3), (4) and (5) of the Federal Act apply for the purposes of this Act.

1989 c15 s18

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Taxpayers leaving Canada

39. (1) Where the Minister of Finance suspects that a taxpayer is about to leave the province or Canada, he or she may before the day otherwise fixed for payment, by notice served personally or by registered letter addressed to the taxpayer, demand payment of all taxes, interest and penalties for which the taxpayer is liable or would be liable if the time for payment had arrived and the taxes, interest and penalties shall be paid immediately notwithstanding another provision of this Act.

(2) Where a person has failed to pay tax, interest or penalties demanded under this section as required, the Minister of Finance may direct that the goods and chattels of the taxpayer that are located in the province be seized and subsections 225(2), (3) and (5) of the Federal Act apply.

RSN1970 c163 s37; 1989 c15 s19

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Money withheld

40. (1) Subsections 227(1), (2), (3), (4), (5), (8), (8.2), (8.3), (8.4), (8.5), (9), (9.2), (9.4) and (9.5) of the Federal Act apply for the purposes of this Act.

(2) The Minister of Finance 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 purposes of this Act; and

(b) a person for an amount payable by that person under subsections 224(4) or (4.1) or subsections 227(8), (8.3), (8.4), (8.5), (9), (9.2), (9.4) or (9.5) of the Federal Act, as they apply for the purposes of this Act, or section 41 or 44,

and where the Minister of Finance sends a notice of assessment to that person, sections 13 and 18 to 30 are applicable with the modification that the circumstances require.

(3) Provisions of this Act requiring a person to deduct or withhold an amount in respect of taxes from amounts payable to a taxpayer apply to and bind the Crown.

(4) Where this Act requires an amount to be deducted or withheld, an agreement by the person on whom that obligation is imposed not to deduct or withhold is void.

(5) The receipt of the Minister of Finance for an amount deducted or withheld by a person as required by or under this Act is sufficient discharge of the liability of a debtor to his or her creditor with respect to the extent of the amount referred to in the receipt.

RSN1970 c163 s38; 1972 No11 s2; 1972 No59 s13; 1983 c54 s10; 1986 c28 ss20 & 21; 1989 c15 s20

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Director's liability

41. (1) Where a corporation has failed to deduct or withhold an amount as required by subsection 153(1) of the Federal Act, as it applies for the purposes of this Act, or has failed to remit such an amount, the directors of the corporation at the time the corporation was required to deduct or withhold the amount, or remit the amount, are jointly and individually liable, together with the corporation, to pay an amount that the corporation is liable to pay under this Act in respect of that amount including related interest or penalties.

(2) A director is not liable under subsection (1), unless

(a) a certificate for the amount of the corporation's liability referred to in that subsection has been registered in the Trial Division under subsection 34(2) and execution for the amount has been returned unsatisfied in whole or in part;

(b) the corporation has commenced liquidation or dissolution proceedings or has been dissolved and a claim for the amount of the corporation's liability referred to in that subsection has been proved within 6 months after the earlier of the date of commencement of the proceedings and the date of dissolution; or

(c) the corporation has made an assignment or a receiving order has been made against it under the Bankruptcy Act and a claim for the amount of the corporation's liability referred to in that subsection has been proved within 6 months after the date of the assignment or receiving order.

(3) A director is not liable for a failure under subsection (1) where the director exercised the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would have exercised in comparable circumstances.

(4) An action or proceedings to recover an amount payable by a director of a corporation under subsection (1) shall not be begun more than 2 years after the director last ceased to be a director of that corporation.

(5) Where execution referred to in paragraph (2)(a) has been issued, the amount recoverable from a director is the amount remaining unsatisfied after execution.

(6) Where a director pays an amount in respect of a corporation's liability referred to in subsection (1) that is proved in liquidation, dissolution or bankruptcy proceedings, the director is entitled to a preference that the Crown would have been entitled to had the amount not been paid and, where a certificate that relates to the amount has been registered, the director is entitled to an assignment of the certificate to the extent of his or her payment which assignment the Minister of Finance is empowered to make.

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

1986 c28 s22; 1989 c15 s21

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Books and records

42. (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 of Finance in the form and containing the information that will 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), (5), (6), (7) and (8) of the Federal Act apply for the purposes of this Act.

RSN1970 c163 s39; 1989 c15 s22

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Inspections, privileges, etc.

43. Sections 231 to 231.5, 232, 233 and 236 of the Federal Act apply for the purposes of this Act.

1989 c15 s23

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Penalty for failure to comply with regulations

44. (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 32(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 32 or incorporated by reference by virtue of subsection 32(2) is liable to a penalty of $10 a day for each day of default but not exceeding in all $2,500.

1989 c15 s24

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Offence and penalty

45. (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 purposes of this Act, or who fails to comply with subsection 153(1), subsection 227(5) and subsections 230(3), (4) and (6) and sections 231 to 231.5 and 232 of the Federal Act, as it applies for the purposes 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) Where a person is convicted by a court of an offence under subsection (1) 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 purposes of this Act, the court may make the order that it considers proper in order to enforce compliance with the provision.

(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 purposes 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 purposes of this Act, or under section 21 or 44 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.

1989 c15 s26

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Offence

46. A person who

(a) makes, or participates in, assents to or acquiesces in the making of, false or deceptive statements in a return, certificate, statement or answer filed or made as required under this Act or a regulation or under a provision of the Federal Act or of the Federal Regulations, as that provision applies for the purposes of this Act;

(b) to evade payment of a tax imposed by this Act, destroys, alters, mutilates, secretes or otherwise disposes of the records or books of account of a taxpayer;

(c) makes, assents to or acquiesces in the making of, false or deceptive entries, or omits, or assents to or acquiesces in the omission, to enter a material particular, in records or books of account of a taxpayer;

(d) wilfully evades or attempts to evade, compliance with this Act or payment of taxes; or

(e) conspires with a person to commit an offence referred to in paragraphs (a) to (d),

is guilty of an offence and, in addition to a penalty otherwise provided, is liable on summary conviction to

(f) a fine of not less than 50% and not more than 200% of the amount of the tax that was sought to be evaded; or

(g) both the fine referred to in paragraph (f) and imprisonment for a term not exceeding 2 years.

RSN1970 c163 s46; 1972 No11 s2; 1972 No59 s15; 1989 c15 s27

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Actions or suits

47. (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 45 or 46 of this Act.

RSN1970 c163 s47; 1972 No11 s2; 1972 No59 Sch

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Revealing confidential information

48. (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 obtained by or on behalf of the Minister of Finance for the purposes of this Act;

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

(c) knowingly uses, other than in the course of his or her duties in connection with this administration or enforcement of this Act, information obtained by or on behalf of the Minister of Finance for the purposes 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 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 56(2).

RSN1970 c163 s48; 1989 c15 s28

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Offence by corporation

49. Where a corporation is guilty of an offence under this Act, an officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on summary conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

RSN1970 c163 s49

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No power to decrease punishment

50. Notwithstanding another statute or law in force on December 15, 1961, a court has, in a prosecution or proceeding under this Act, no power to impose less than the minimum fine or imprisonment fixed by this Act and a court has no power to suspend sentence.

RSN1970 c163 s50

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Information or complaint

51. (1) An information or complaint under this Act may be laid or made by an officer of the Department of Finance, a member of the Royal Canadian Mounted Police or a person authorized by the Minister of Finance and, where an information or complaint purports to have been laid or made under this Act, it shall be considered to have been laid or made by a person authorized by the Minister of Finance and shall not be called in question for lack of authority of the informant or complainant except by the Minister of Finance or by some person acting for the minister or the Crown.

(2) An information or complaint in respect of an offence under this Act may be for 1 or more offences and no information, complaint, warrant, conviction or other proceeding in a prosecution under this Act is objectionable or insufficient by reason of the fact that it relates to 2 or more offences.

(3) A complaint or information in respect of an offence under this Act may be heard, tried or determined by a Provincial Court judge where the accused is resident, carrying on business, found or apprehended or is in custody within the Provincial Court judge's territorial jurisdiction although the matter of the information or complaint did not arise within that territorial jurisdiction.

(4) An information or complaint in respect of an offence under this Act may be laid or made on or before the day that is 8 years after the day on which the matter of the information or complaint arose.

(5) Where, by this Act or the regulations, provision is made for sending by mail a request for information, notice or demand, an affidavit of an officer of the Department of Finance, sworn before a person authorized by law to take affidavits, setting out that he or she has knowledge of the facts in the particular case, that the request, notice or demand was sent by registered letter on a named day to the person to whom it was addressed, indicating the address, and that he or she identifies as exhibits attached to the affidavit the post office certificate of registration of the letter or a true copy of the relevant portion of it and a true copy of the request, notice or demand, shall be received, in the absence of evidence to the contrary, as evidence of the sending and of the request, notice or demand.

(6) Where, by this Act or the regulations, a person is required to make a return, statement, answer or certificate, an affidavit of an officer of the Department of Finance, sworn before a person authorized by law to take affidavits, setting out that the officer has charge of the appropriate records and that after a careful examination and search of the records he or she has been unable to find in a given case that the return, statement, answer or certificate has been made by the person required to make it, shall be received, in the absence of evidence to the contrary, as evidence that in that case that person did not make the return, statement, answer or certificate.

(7) Where, by this Act or the regulations, a person is required to make a return, statement, answer or certificate, an affidavit of an officer of the Department of Finance, sworn before a person authorized by law to take affidavits, setting out that the officer has charge of the appropriate records and that after a careful examination of the records he or she has found that the return, statement, answer or certificate was filed or made on a particular day, shall be received, in the absence of evidence to the contrary, as evidence that it was filed or made on that day and not before and shall have the same probative force as the original would have if it had been proven in the ordinary way.

(8) An affidavit of an officer of the Department of Finance, sworn before a person authorized by law to take affidavits, setting out that the officer has charge of the appropriate records and that a document annexed to it is a document or true copy of a document made by or on behalf of the Minister of Finance or some person exercising the powers of the Minister of Finance or by or on behalf of a taxpayer, shall be received, in the absence of evidence to the contrary, as evidence of the nature and contents of the document and shall have the same probative force as the original document would have if it had been proven in the ordinary way.

(9) An affidavit of an officer of the Department of Finance, sworn before a person authorized by law to take affidavits, setting out that the officer has charge of the appropriate records and has knowledge of the practice of the department and that an examination of the records shows that a notice of assessment for a particular taxation year was mailed or otherwise communicated to a taxpayer on a particular day under this Act and that, after careful examination and search of the records, the officer has been unable to find that a notice of objection or of appeal from the assessment was received within the time allowed, shall be received, in the absence of evidence to the contrary, as evidence of the statements contained in the affidavit.

(10) Where evidence is offered under this section by an affidavit from which it appears that the person making the affidavit is an officer of the Department of Finance, it is not necessary to prove his or her signature or that the person is an officer of that department nor is it necessary to prove the signature or official character of the person before whom the affidavit was sworn.

(11) Judicial notice shall be taken of

(a) all orders or regulations made under this Act; and

(b) a collection agreement entered into under this Act or an agreement for the collection by Canada of the tax imposed under the income tax statute of an agreeing province,

without those orders, regulations or agreements being specially pleaded or proven.

(12) A document purporting to be an order, direction, demand, notice, certificate, requirement, decision, assessment, discharge of mortgage or other document purporting to have been executed under or in the course of administration or enforcement of this Act over the name in writing of the Minister of Finance, his or her deputy or an officer authorized by regulation to exercise the powers or perform the duties of the Minister of Finance under this Act, shall be considered to be a document signed, made and issued by the Minister of Finance, his or her deputy or the officer unless it has been called in question by the Minister of Finance or by some person acting for the minister or the Crown.

(13) For the purposes of this Act, the day of mailing of a notice of assessment or notification described in subsection 152(4) of the Federal Act, as it applies for the purposes of this Act, or of a notice of assessment shall be presumed to be the date of that notice or notification.

(14) For the purposes of this Act, anything sent by 1st class mail or its equivalent shall be considered to have been received by the person to whom it is sent on the day that it was mailed except that a remittance of an amount deducted or withheld as required by this Act or a regulation or by a provision of the Federal Act or of the Federal Regulations that applies for the purposes of this Act as it applies for the purposes of this Act, shall be considered to have been remitted on the day it is received by the Minister of Finance.

(15) Where a notice of an assessment has been sent by the Minister of Finance as required by this Act, the assessment shall be considered to have been made on the day of mailing of the notice of the assessment.

(16) A form purporting to be a form prescribed or authorized by the Minister of Finance shall be considered to be a form prescribed by order of the Minister of Finance under this Act unless called in question by the Minister of Finance or some person acting for him or her or for the Crown.

(17) A document purporting to be a collection agreement entered into under this Act or an agreement with Canada for the collection of tax imposed under the income tax statute of an agreeing province that is

(a) published in The Canada Gazette; or

(b) certified as such by or on behalf of

(i) the Minister of Finance, or

(ii) the Provincial Treasurer, the Provincial Secretary-Treasurer or the Minister of Finance of the appropriate agreeing province,

shall be considered, in the absence of evidence to the contrary, as evidence of the contents of it.

(18) In a prosecution for an offence under this Act, the production of a return, certificate, statement or answer required under this Act or a regulation, purporting to have been filed or delivered by or on behalf of the person charged with the offence or to have been made or signed by the person or on his or her behalf, shall be received, in the absence of evidence to the contrary, as evidence that that return, certificate, statement or answer was filed or delivered by or on behalf of that person or was made or signed by him or her or on that person's behalf.

(19) A certificate by the Minister of Finance as to

(a) a taxpayer's tax payable under the Federal Act as defined in paragraph 4(12)(a);

(b) a taxpayer's income for the year as defined in paragraph 4(12)(d); or

(c) the taxable income of a corporation,

is, in the absence of evidence to the contrary, evidence that a taxpayer's tax payable under the Federal Act, his or her income for the year or the taxable income of a corporation is in the amount set out in the certificate.

(20) Where a collection agreement is entered into, a document or certificate that is executed or issued by the Minister of National Revenue, the Deputy Minister of the Department of National Revenue for Taxation or an official of the Department of National Revenue on behalf or in place of the Minister of Finance, his or her deputy or an officer of the department, shall be considered, for all purposes of this Act, to be executed or issued by the Minister of Finance, his or her deputy or an officer of the department.

(21) Where a collection agreement is not entered into, a reference in this section to the Royal Canadian Mounted Police shall be construed as a reference to the police force carrying out the duties of the provincial police in the province.

RSN1970 c163 s51; 1979 c35 Sch A; 1983 c54 s12; 1989 c15 s29

PART IV
COLLECTION OF TAX

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Collection agreement

52. (1) Subject to the approval of the Lieutenant-Governor in Council, the Minister of Finance 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 will collect the tax payable under this Act on behalf of the province and will 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 of Finance 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 entered into, the Minister of National Revenue may, on behalf of or as agent for the Minister of Finance, employ the powers, perform the duties and exercise the discretion that the Minister of Finance or the deputy head or assistant deputy head has under this Act including the discretion to refuse to permit the production in judicial or other proceedings of a document that it 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 Deputy Minister of National Revenue for taxation of 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.

RSN1970 c163 s52

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Application of payment

53. (1) A collection agreement may provide that where a payment is received by the Minister of National Revenue on account of 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 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 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.

RSN1970 c163 s53

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No action against persons withholding tax

54. Where a collection agreement is in effect and an amount is remitted to the Minister of Finance under subsection 153(1) of the Federal Act, as it applies for the purposes 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.

RSN1970 c163 s54; 1989 c15 s30

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Deduction at source

55. (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, section 24 applies in respect of that individual as though the excess were an overpayment under this Act.

RSN1970 c163 s55

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Non-agreeing provinces

56. (1) In this section

(a) "adjusting payment" means a payment, calculated in accordance with this section, made by or on the direction of the Province of Newfoundland 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 of Finance, corresponds to an adjusting payment, the Lieutenant-Governor in Council may authorize the Minister of Finance to make an adjusting payment to that non-agreeing province and enter into an agreement that may be necessary to carry out the purposes of this section.

(3) Where a collection agreement is entered into, the adjusting payment that may be made under subsection (2) may act on the direction of the province as communicated by the Minister of Finance to the Minister of National Revenue.

(4) The adjusting payment to be made under this section shall be in an amount that is equal to the aggregate of the amounts deducted or withheld under section 13 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 and there has been an amount deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purposes 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 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 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, section 24 applies 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 section 13 to which subsection (5) applies.

RSN1970 c163 s56; 1989 c51 s31

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Reciprocal enforcement of judgments

57. (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 34(2), may be enforced in the manner provided in the Reciprocal Enforcement of Judgments Act.

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

(3) For the purposes 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.

RSN1970 c163 s57

©Earl G. Tucker, Queen's Printer