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St. John's, Newfoundland and Labrador, Canada

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Revised Statutes of Newfoundland 1990


CHAPTER M-16

AN ACT TO IMPOSE TAXES ON INCOME FROM MINING OPERATIONS WITHIN THE PROVINCE AND ON INCOME OBTAINED OR DERIVED FROM PERSONS HOLDING RIGHTS TO MINE

Analysis

1. Short title

2. Definitions

3. Assessor

4. Mining operations tax

5. Net income

6. Taxable income

7. Application of this part to special statutes

8. Tax on right to mine

9. Tax on rentals, etc.

10. Deduction of tax at source

11. Construction to be placed on prior statutes, contracts, etc.

12. Duty to give notice

13. Return

14. Secrecy

15. Duty to pay tax with return

16. Examination of returns

17. Powers of assessor

18. Refund of overpayment

19. Payment by taxpayer of deficiency

20. Power to prescribe books

21. Mining Tax Review Board

22. Appeal to board

23. Appeal to Trial Division

24. Due date of tax not affected by appeal

25. Irregularity in procedure

26. Recovery of taxes by action

27. Issue of tax certificate

28. Demand on 3rd party

29. Exercise of recovery powers

30. Taxes constitute encumbrance upon estate of taxpayer

31. Taxes, etc. form PART of CRF

32. Offences

33. Delegation of powers

34. Regulations


Short title

1. This Act may be cited as the Mining and Mineral Rights Tax Act.

1975 No68 s1

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Definitions

2. In this Act

(a) "assessor" means the assessor appointed under section 3;

(b) "board" means the Mining Tax Review Board referred to in section 21;

(c) "contractor" means a person who contracts with another person having a right to carry out mining operations to deliver minerals to that other person for a valuable consideration from lands on or in which those rights exist;

(d) "financial year" means the 12 month period ending on December 31 in each year or other 12 month period that the Lieutenant-Governor in Council may determine for a taxpayer;

(e) "gross income" means the total income derived by an operator or a contractor from the sale of minerals consequent upon mining operations in a financial year, and, if those minerals are processed before the sale, includes the income from processing;

(f) "mineral" means a naturally occurring inorganic substance, including coal, but does not include petroleum as defined in the Petroleum and Natural Gas Act;

(g) "mining operations" means the extraction or production within the province of minerals up to and including primary crushing and includes the transportation, handling, storing, distribution and sale of those minerals, but does not include processing;

(h) "minister" means the Minister of Finance;

(i) "net income" means the gross income less those amounts permitted to be deducted from the gross income by section 5;

(j) "operator" means a person who

(i) has the right to extract minerals, and

(ii) carries out mining operations on or under lands within the province;

(k) "person" in addition to the ordinary meaning ascribed to the word, including the meaning conferred by the Interpretation Act, includes partnership, association and syndicate;

(l) "processing" means processing minerals within the province and includes concentrating, milling, pelletizing, smelting, refining and fabricating of minerals;

(m) "tax" means taxes imposed by this Act and includes all penalties, costs and interest that may be added to the taxes so imposed;

(n) "taxable income" means the net income less those payments permitted to be deducted from the net income by section 6; and

(o) "taxpayer" means a person liable to pay money by way of tax under this Act.

1975 No68 s2

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Assessor

3. (1) The Lieutenant-Governor in Council shall appoint an assessor to implement the functions and duties conferred upon the assessor under this Act.

(2) The minister may appoint officers, clerks and other employees to help the assessor, or that may be necessary for the proper administration of this Act.

1975 No68 s4

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Mining operations tax

4. (1) An operator and a contractor is liable for and shall pay to the minister in the manner and at the time set out in this Act an annual tax of 15% of the taxable income derived by the operator or the contractor from mining operations within every mine within the province during each financial year.

(2) The Lieutenant-Governor in Council may by order declare with respect to a taxpayer that the tax payable by the operator or contractor under subsection (1) shall be based on the taxable income derived by the operator or contractor from mining operations within individual mines or groups of mines as may be prescribed in the order.

(3) For the purposes of subsection (2), "mine" means a work or undertaking in which mining operations are conducted and includes a quarry.

1975 No68 s5

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Net income

5. (1) The net income of a taxpayer shall be ascertained by deducting from the gross income of the taxpayer

(a) all expenses and outlays reasonably incurred in mining operations and in processing minerals extracted from land under those mining operations;

(b) an amount that may be prescribed by regulation for depreciation of the cost, exclusive of interest charges, of vehicles, machinery, plant, equipment, buildings and other assets of a capital nature used in mining operations, and processing minerals extracted from land under those mining operations, and for the purposes of this paragraph the regulations may prescribe different rates and methods of depreciation for different kinds of capital assets, but where the vehicles, machinery, plant, equipment and buildings or a part of them have been disposed of in a financial year, the proceeds from the disposal shall be applied to reduce the cost or value of additions to them in that year, and where those proceeds exceed the cost of the additions the excess shall be applied to reduce the balance remaining to be depreciated of those assets required in previous financial years, and where no balance remains to be depreciated the excess shall be applied to reduce deductions otherwise allowable under this subsection;

(c) an amount exclusive of interest charges of any kind that the minister in his or her absolute discretion allows for

(i) exploration expenditures and pre-production development expenditures exclusively and necessarily incurred for the proper conduct of those mining operations from which the gross income is generated over the number of financial years, not less than the number of years that the minister estimates that those mining operations will continue, and

(ii) exploration expenditures exclusively incurred by the taxpayer anywhere within the province, not only during the financial year but also during the number of preceding financial years, not exceeding 5 years, that the minister may allow;

(d) all money paid to the Crown during the financial year by way of rentals, royalties, charges and other payments for the right to engage in the mining operations which generates all or part of the gross income, but not a payment by way of taxation;

(e) reserves for doubtful debts that the minister in his or her absolute discretion permits for the mining operations during the financial year; and

(f) an amount by way of return on capital directly and necessarily employed by the taxpayer in processing minerals extracted from land under mining operations equal to 8% of the original cost, exclusive of interest charges, of the depreciable assets, including machinery, equipment, plant, buildings, works and improvements used by the taxpayer in the processing of those minerals, but the amount to be deducted under this paragraph shall not be in excess of 65% of the portion remaining after deducting from the gross income the amounts specified in paragraphs (a) to (e) inclusive.

(2) A deduction shall not be made from the gross income under subsection (1) in respect of

(a) disbursements not wholly, exclusively and necessarily spent for the purpose of generating the gross income, other than those expenditures permitted to be deducted under subsection (1);

(b) expenditures for the provision or replacement of plant, machinery or equipment or other item of a capital nature;

(c) an amount transferred or credited to a reserve contingent account or sinking fund, other than for permitted doubtful debts referred to in subsection (1);

(d) rentals, royalties and other payments paid by the taxpayer to a person, other than the Crown, under an Act, agreement, grant, lease or licence for the right to engage in mining operations;

(e) disbursements made for the purpose of maintenance of property not applied in the generation of the gross income during the financial year; or

(f) a payment made for goods or services provided by a parent, subsidiary, affiliated or associated company in excess of the actual costs of those goods or services.

1975 No68 s6; 1975-76 No46 s2; 1978 c14 s47

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Taxable income

6. For the purposes of section 4, the taxable income derived from mining operations by an operator and by a contractor is the net income less either

(a) all money paid during the financial year, by way of rental, royalty or other payment to a person, other than to the Crown, for the grant of the right to engage in mining operations; or

(b) 20% of the net income, whichever is the greater.

1975 No68 s7

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Application of this part to special statutes

7. The tax imposed by this Part of this Act applies to every person carrying out mining operations as an operator or contractor in the province, but where a tax or royalty is payable to the Crown for the right to engage in mining operations or in respect of income from those mining operations

(a) by a person under a statute of the province relating specifically to that person;

(b) by a person under an agreement or lease ratified or confirmed by the statute; or

(c) by an operator or contractor who has assumed the obligation to pay that tax or royalty under an agreement entered into with such a person,

the tax or royalty imposed by the statute, agreement or lease or assumed shall be payable instead of the tax imposed by this Part.

1975 No68 s8

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Tax on right to mine

8. (1) An operator and a contractor is liable for and shall pay to the minister in the manner and at the time set out in this Act an annual tax of 20% of the amount by which 20% of the net income of the operator or contractor exceeds the total of all money paid by the operator or contractor during the financial year by way of rental, royalty or other payment to a person, other than the Crown, for the grant of the right to engage in mining operations.

(2) Section 7 applies to the tax imposed by this section upon operators and contractors.

1975 No68 s9

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Tax on rentals, etc.

9. (1) A person who receives from

(a) an operator, contractor or other person during a financial year money by way of rental, royalty or similar payment for the grant to the operator, contractor or other person of the right to engage in mining operations; or

(b) the Minister of Mines and Energy during a financial year money by way of payment to that person, as owner of an undeveloped mineral area, under section 7 of the Undeveloped Mineral Areas Act,

is liable for and shall pay to the minister in the manner and at the time set out in this Act an annual tax of 20% of the net revenue received in consideration of the grant of the right during that financial year.

(2) For the purposes of subsection (1), "net revenue" means the total sum received from the operator, contractor, person or the Minister of Mines and Energy during the financial year less

(a) administrative, accounting, legal and other expenses which in the opinion of the minister are necessarily incurred by the taxpayer in the collection of the money from the operator or contractor;

(b) an amount, that the Lieutenant-Governor in Council may allow for costs and outlays incurred by the taxpayer during the financial year within the area of land in or upon which the taxpayer has the right to engage in mining operations or other areas of land that may be prescribed by regulation; and

(c) all money paid during the financial year, by way of rental, royalty or other payment to a person, other than to the Crown, for the grant of the right to engage in mining operations.

(3) A person is liable to pay the tax under this section notwithstanding that the payment received for the grant of the right to engage in mining operations is a share of the profits derived from mining operations or other enterprise carried out by another person either solely or in association with the person receiving the payment.

(4) Where by an agreement, scheme or device a payment for the grant of the right to engage in mining operations does not, in the opinion of the minister, represent the true value of that right, or the payment is made as consideration for matters additional to the grant of that right, the minister may determine the true value of the right, and the value determined shall be applied for the purposes of assessment of the tax under this section.

(5) A determination made by the minister under subsection (4) is subject to review by the board upon an appeal taken under section 22, with power to the board, or to the Trial Division upon an appeal taken from a decision of the board under section 23, to make a determination of true value for the purposes of payment of the tax.

1975 No68 s10; 1975-76 No46 s3; 1981 c20 s1;
1983 c23 s14

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Deduction of tax at source

10. (1) An operator, contractor or other person or trustee, agent or other person acting on behalf of that contractor, operator or person who makes payment to a taxpayer of the rental, royalty or other payment for which the taxpayer is liable to taxation under section 9 shall deduct from the total of each payment or instalment 20% of the sum paid on account of the tax due by the taxpayer.

(2) Notwithstanding anything contained in the Undeveloped Mineral Areas Act, the Minister of Mines and Energy shall deduct from each payment made to an owner under section 7 of that Act 20% of the sum paid on account of the tax due by the taxpayer.

(3) The total of the sum deducted from a rental, royalty or other payment by an operator, contractor or person, or a trustee, agent or other person acting for that operator, contractor or person under subsection (1) shall be remitted to the minister by the operator, contractor, trustee, agent or other person charged with the responsibility of making the payment at the same time as the payment or instalment is paid to the taxpayer.

(4) Where a remittance is made to the minister under subsection (3), the operator, contractor or other person who makes the remittance, or in respect of whom the remittance is made is relieved of all liability at law for the obligation to pay the taxpayer to the extent of the amount of the remittance, notwithstanding the terms of a statute, agreement, lease, contract or other document which binds the operator, contractor or other person to make the payment to the taxpayer.

(5) An operator, contractor or person, or a trustee, agent or other person acting on behalf of that operator, contractor or person who fails to make the deduction required from the rental, royalty or other payment required by subsection (1) or who fails to remit the sum deducted to the minister as required by subsection (3) is guilty of an offence under this Act.

(6) Without limiting the liability of the taxpayer for payment of the tax due under section 9, a person who is convicted of an offence under subsection (5) of this section is personally liable to the minister for the total sums which were required to be deducted and remitted to the minister under this section, and may be recovered by the minister as a debt due to the Crown by action in a court.

1975 No68 s11

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Construction to be placed on prior statutes, contracts, etc.

11. Nothing in an Act of the province, or in a grant, deed, licence, contract, agreement or other document, whether or not that grant, deed, licence, contract, agreement or other document has received ratification by the Legislature, passed, given, made or entered into before January 1, 1975, shall be construed so as

(a) to defeat the liability of a taxpayer to pay the tax required to be paid by section 9; or

(b) to enable a person who is liable for and required to pay a tax under section 9, to require the operator, contractor or other person from whom that person receives money by way of rental, royalty or other payment for the grant of the right to engage in mining operations,

(i) to pay the tax in its place, or

(ii) to indemnify that person against the tax; or

(c) to impose liability on the part of the Crown for loss or damage sustained,

and where in the Act, grant, deed, licence, contract, agreement or other document is in conflict with this Act, the latter shall prevail.

1975 No68 s12

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Duty to give notice

12. (1) An operator and a contractor who

(a) engages in mining operations; or

(b) is obliged to pay money to a person by way of rental, royalty or other payment for the right to engage in mining operations

shall immediately notify the minister of the fact that the mine is in production or that the payment is required to be made.

(2) A person who fails to give the notification required by subsection (1) is guilty of an offence and liable on summary conviction to a fine not exceeding $500.

(3) A person is not considered to be engaging in mining operations for the purposes of paragraph (1)(a) by the mere removal of a reasonable quantity of a mineral for the purposes of sampling, assaying or mill testing.

1975 No68 s13

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Return

13. (1) A taxpayer shall within 3 months after the end of the financial year, or a later date that the minister may determine with respect to a taxpayer, without notice or demand, complete and deliver to the assessor a return containing

(a) the name and address of the person making the return;

(b) where the person making the return has no address or place of business within the province, the address of a trustee or agent within the province to which assessment notices and other documents required under this Act may be mailed or served;

(c) in the case of an operator or contractor, a statement of the gross income, distinguishing, where possible, income from mining operations from income derived from processing minerals obtained from mining operations;

(d) in the case of a taxpayer liable for the tax under section 9, a statement of

(i) the rentals, royalties or other payments received from or on behalf of an operator, contractor or other person, or

(ii) payments made to the taxpayer by the Minister of Mines and Energy under section 7 of the Undeveloped Mineral Areas Act;

(e) in the case of an operator or contractor, all deductions permitted by this Act to be made from the gross income for the calculation of net income and taxable income;

(f) in the case of a taxpayer liable to tax under section 9, the deductions permitted by that section for the calculation of net revenue; and

(g) other facts and additional information that may be prescribed by regulation, or that may be required by the assessor under subsection (3).

(2) The return referred to in subsection (1) shall be signed by the person required to complete and deliver it, or by the agent, trustee or representative of that person, and in the case of a corporation, association or a partnership, the return shall be signed by an officer or member of the corporation, association or partnership having personal knowledge of the facts and disclosures made in the return.

(3) The assessor may by written notice require a person who has submitted a return to supply further details and more explicit particulars, or to produce documentary evidence to support facts and disclosures made in the return, and upon receipt of that notice, the person to whom it is delivered shall comply with the requirements contained in that notice within 14 days after dispatch of it.

(4) A person who fails to submit a return containing the particulars required under this Act within the time provided in subsection (1), or who fails to comply with the requirements contained in a notice given under subsection (3), or who knowingly provides false or misleading information either on the return, or to the assessor following the notice by him or her, is guilty of an offence under this Act.

1975 No68 s14

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Secrecy

14. Subject to an Act of the province respecting the compilation of data and completion of statistics, or an agreement made with the Government of Canada or the provinces of Canada respecting exchange of confidential information under an Act, information given on returns or to the assessor under this Act is available only to persons authorized by the minister, and that authorization shall be given solely for the purposes of this Act or an Act of the province which provides for the imposition of a tax or the administration of legislation relating to minerals.

1975 No68 s15; 1977 c32 s1

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Duty to pay tax with return

15. (1) A taxpayer, other than a taxpayer liable to pay the tax under section 9, shall at the time of delivering the return required under section 13, estimate and pay to the minister the amount of tax estimated to be payable for the period covered by the return.

(2) Where the notice of assessment prepared and sent under subsection 16(2) shows that the amount of tax paid under subsection (1) of this section is less than the amount of tax due to be paid by the taxpayer, or where no tax is paid by the taxpayer under subsection (1), the taxpayer shall pay interest upon the deficiency or upon the amount of tax payable at the rate of 8% a year from the last date that the return of the taxpayer was required to be delivered under section 13 until the date of postage or delivery of the notice of assessment.

1975 No68 s16

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Examination of returns

16. (1) The assessor shall, as soon as practicable after delivery of each return, but not later than a date which the minister may direct, examine the returns.

(2) After completion of the examination required under subsection (1), the assessor shall prepare and send by hand delivery or by prepaid registered mail a notice of assessment to each taxpayer setting out the amount of tax payable by the taxpayer for the financial year.

(3) A taxpayer shall pay to the minister not later than 1 month after the date of postage or delivery of the notice of assessment prepared under subsection (2) the amount of tax assessed to be payable for the financial year in excess of an amount which may have been paid under subsection 15(1), together with interest which the taxpayer may be liable to pay under subsection 15(2), and if payment is not made within the time required by this subsection, the taxpayer is liable for and shall pay a penalty of 10% a year of the sums payable from the date of due payment under this subsection until the actual date of payment.

(4) Where payments of the tax are remitted to the minister by the operator, contractor, trustee, agent, or other person in accordance with subsection 10(3), interest at the rate of 8% on those payments for the period from the date of payment to the end of the financial year to which they relate may be claimed as deduction in the calculation of the tax payable under section 9.

1975 No68 s17

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Powers of assessor

17. (1) For the purposes of examining returns made under section 13, confirming the contents of returns and calculating the amount of tax payable by a taxpayer, the assessor or other officer authorized by the assessor has

(a) the right of free and uninterrupted access to and exit from all property in the occupation of a taxpayer or a person referred to in subsection 20(3);

(b) the power to examine persons under oath or affirmation at times and places designated by the assessor upon all matters concerning the powers and duties conferred or imposed on the assessor;

(c) access to all pertinent documents, records, accounts, books and vouchers, with the right to take extracts from or make copies of them; and

(d) all the powers of a commissioner under the Public Inquiries Act.

(2) A person who deliberately misleads, interferes with or impedes the assessor or other officer designated by the assessor in carrying out the powers and duties conferred by this Act upon the assessor or other officer, or who fails to provide every facility and assistance to the assessor or other officer, is guilty of an offence under this Act.

1975 No68 s18

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Refund of overpayment

18. (1) Where the examination of a taxpayer's return discloses that an overpayment has been made by the taxpayer under section 15, the minister shall refund the amount overpaid to the taxpayer from the Consolidated Revenue Fund, except that where a further tax payable by that taxpayer is due or accruing due the amount overpaid shall, to the extent of the overpayment, be applied in satisfaction of the tax, and notice shall be given to the taxpayer accompanied by the refund of the remainder of the amount overpaid remaining unapplied.

(2) A refund under this section may be made with the notice of assessment or before or after the giving of the notice of assessment, but a refund of an amount of less than $1 shall not be made.

1975 No68 s19

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Payment by taxpayer of deficiency

19. Notwithstanding a prior assessment or where an assessment has not been made, a taxpayer continues to be liable for tax and to be assessed for tax, and the assessor may at any time assess a taxpayer for tax, interest and penalties, and may

(a) at any time, if the taxpayer has made a misrepresentation or committed a fraud in making the return or supplying information under this Act; and

(b) within 6 years from the day of the original assessment in other cases,

reassess or make additional assessments upon a taxpayer for tax, interest and penalties.

1975 No68 s20

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Power to prescribe books

20. (1) A taxpayer shall keep adequate books of account and records for the purpose of this Act and where the books or records kept by a taxpayer are in the opinion of the assessor inadequate for those purposes, the assessor may prescribe the books and records to be kept by that taxpayer.

(2) Where,

(a) the books of account and records kept by a taxpayer are in the opinion of the assessor inadequate for the purpose of assessment of tax under this Act;

(b) a taxpayer on the request of the assessor fails or refuses to produce books of account or records for examination; or

(c) a taxpayer alleges that the books of account or records are lost or destroyed and fails to show to the satisfaction of the assessor that the loss or destruction took place because of an act or occurrence beyond the control of that taxpayer,

the minister may make an assessment of the tax payable by the taxpayer, and every assessment made by the minister under this subsection is final and conclusive, and the provisions of this Act as to appeals do not apply in respect of that assessment.

(3) A person who, acting in whatever capacity, is in receipt of money, a thing of value, or profits, or gains arising from a source of or belonging to a taxpayer shall, when required to do so by notice from the assessor, prepare and deliver to the assessor information required, within 30 days after the date of the mailing of the notice.

1975 No68 s21

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Mining Tax Review Board

21. (1) The minister shall, with the approval of the Lieutenant-Governor in Council, appoint a board to be known as the Mining Tax Review Board consisting of 3 persons, at least 1 of whom is a barrister, who shall be chairperson, and 1 of whom is experienced in the mining industry.

(2) The members of the board shall

(a) hold office for a period of 3 years from the date of their appointment and shall be eligible for reappointment;

(b) carry out the functions and duties required of the board by this Act and the regulations; and

(c) be entitled to payments for remuneration, travel expenses and other outlays incurred by them in the performance of their duties that are fixed by the Lieutenant-Governor in Council or by the regulations.

(3) Where a member of the board stops being a member, or refuses or is unable because of illness or disqualification or other cause to act as a member, the minister shall, with the approval of the Lieutenant-Governor in Council, remove the member who refuses or is unable to act, and shall immediately fill the vacancy created by the cessation or removal.

(4) Notwithstanding subsection (3), the minister may, where he or she is of the opinion that a member of the board is unable because of temporary indisposition to act as a member for a period not exceeding 6 months, with the approval of the Lieutenant-Governor in Council, appoint a member to act in his or her place for a period, not exceeding 6 months, as may be specified in the appointment.

(5) For the purposes of the hearing of an appeal under this Act, the board is vested with all the powers that are conferred on commissioners under the Public Inquiries Act and, if the regulations confer upon the board the power of an investigating body within the meaning of the Public Investigations Evidence Act, it is vested with all the rights of such a body under that Act.

1975 No68 s22

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Appeal to board

22. (1) A person who, after receiving a notice of assessment under subsection 16(2), objects to the amount of tax assessed, or considers that no tax is payable may personally or by an agent, appeal to the board within 3 months after the date of posting or delivery of the notice of assessment.

(2) A person referred to in subsection (1), referred to in this section as the "appellant", shall file a notice of appeal, setting out the grounds of the appeal and the facts upon which it is based, with the chairperson of the board and shall serve upon the minister a copy of the notice of appeal.

(3) The board, comprising of all its members, shall hear the appeal on a day appointed by it for the purpose, and shall decide the matter of the appeal, record its decision in writing, disclosing in that record whether the decision is unanimous or by majority, and transmit copies of the decision to the appellant and the minister.

(4) The board may, before deciding the matter of the appeal, refer a question of law raised at the hearing of the appeal for the opinion of the Trial Division, and the Rules of Court made under the Judicature Act relating to a special case apply to a reference made under this subsection as if that reference were made by the parties to the appeal.

(5) The minister shall produce before the board on the hearing of the appeal and to the Trial Division upon a reference made under subsection (4), all papers and documents which are in the possession of the Crown and which may effect the outcome of the appeal.

(6) The board may award costs in an appeal under this section for or against the Crown and fix the amount of them.

1975 No68 s23; 1986 c42 Sch B

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Appeal to Trial Division

23. (1) An appeal lies from the decision of the board under section 22 to the Trial Division upon a point of law raised upon the hearing of the appeal before the board and the practice and procedure under the Judicature Act and the Rules of Court relating to appeals apply to proceedings under this section.

(2) The Trial Division may award costs in an appeal under subsection (1) for or against the Crown and may fix the amount of them.

1975 No68 s24; 1986 c42 Sch B

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Due date of tax not affected by appeal

24. (1) Neither the giving of a notice of appeal by a person nor a delay in the hearing of the appeal affects the due date, the interest or penalties, or liability for payment provided by this Act in respect of a tax that is the subject matter of the appeal, or delays the collection of the tax.

(2) In the event of the tax being set aside or reduced on appeal the minister shall refund to the taxpayer the amount of the tax or excess tax paid by him or her and additional interest or penalty imposed and paid on the tax or excess.

1975 No68 s25

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Irregularity in procedure

25. An assessment shall not be varied or disallowed because of an irregularity, informality, omission or error on the part of the assessor or another person in the observation of a directory provision up to the date of the posting or delivering the notice of assessment.

1975 No68 s26

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Recovery of taxes by action

26. The minister may recover the amount of a tax due by a taxpayer under this Act by action in a court as a debt due to the Crown and the court may award costs in the action for or against the Crown.

1975 No68 s27

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Issue of tax certificate

27. (1) Where a taxpayer fails to pay the tax, or a part of the tax, that is due under this Act, the minister may issue a certificate stating the amount of the tax due and remaining unpaid, and the name of the person by whom it is payable.

(2) The minister may file the certificate issued under subsection (1) with the Registrar of the Supreme Court and when he or she has filed it, the certificate is of the same effect and all proceedings, including appeal, may be taken on it as if it were a judgment for the recovery of a debt of the amount specified in the certificate against the person named in the certificate.

(3) The minister may recover all reasonable costs and charges attendant upon the filing of a certificate under subsection (2) in the same manner as the amount stated in the certificate.

1975 No68 s28

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Demand on 3rd party

28. (1) The minister may by letter, delivered personally or sent by registered mail to a person who is indebted, or is about to become indebted, to a taxpayer who is liable to pay a tax under this Act, demand that the person pay to the minister on account of that taxpayer's liability under this Act the whole or part of the money payable by that person to the taxpayer.

(2) The receipt of the minister for money paid under subsection (1) constitutes a sufficient discharge of the liability of the person indebted to the taxpayer to the extent of the amount stated in the receipt.

(3) A person who, after he or she receives a demand from the minister under subsection (1), discharges any of the liability to the taxpayer referred to in that subsection, is personally liable to that minister to the extent of the liability discharged as between him or her and the taxpayer or to the extent of the liability of the taxpayer for taxes, whichever is the lesser amount.

1975 No68 s29

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Exercise of recovery powers

29. The powers conferred by this Act for the recovery of taxes by action in court, by filing a certificate, or by demand under section 28, may be exercised separately, concurrently or cumulatively and the liability of a taxpayer for the payment of the tax is not affected by the fact that a fine, penalty or forfeiture has been imposed, paid or incurred by the taxpayer under this Act.

1975 No68 s30

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Taxes constitute encumbrance upon estate of taxpayer

30. (1) Notwithstanding subsection (2), the taxes payable under this Act constitute a lien, charge or encumbrance in favour of the Crown upon the entire estate, real or personal of the taxpayer, and, following execution and levy of a judgment obtained by action or by the filing of a certificate, that lien, charge or encumbrance has priority over all other claims, liens, charges, privileges or encumbrances of a person, except those which have been registered under a statute of the province providing for the registration of them before the date of execution and levy.

(2) The lien, charge or encumbrance created by this section and their priority shall not be lost or impaired by a neglect, omission or error of the minister, or an agent or officer of the minister, or by the tender or acceptance of a partial payment of the taxes payable under this Act.

1975 No68 s31

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Taxes, etc. form part of CRF

31. All taxes, costs, penalties, interests and fines paid or recovered under this Act form part of the Consolidated Revenue Fund.

1975 No68 s32

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Offences

32. (1) A person who

(a) fails to pay the tax; or

(b) is guilty of an offence under this Act or the regulations

is liable on summary conviction to a fine not exceeding $2,000 and in default of payment of a fine to imprisonment for a term not exceeding 6 months, or to both a fine and imprisonment.

(2) If a company is guilty of an offence under this Act or the regulations, an officer, director or agent of the company who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence.

(3) An information in respect of an offence under this Act or the regulations shall be laid within 6 years from the date of the offence.

(4) Sections 736 and 737 of the Criminal Code shall not be applied in disposing of a complaint made or in imposing punishment for an offence under this Act.

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

1975 No68 s33; 1979 c35 Sch B

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Delegation of powers

33. The minister may authorize the Deputy Minister of Finance or an Assistant Deputy Minister of Finance to perform and exercise the duties imposed and powers conferred by this Act upon the minister that may, in the opinion of the minister, be conveniently performed or exercised by those officers and the performance or exercise of those duties and powers by the officers so authorized is of the same effect as if they were performed or exercised by the minister.

1975 No68 s34

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Regulations

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

(a) fixing the duties of the assessor and other officers and persons appointed or designated to implement a function under this Act;

(b) governing the form of, and for the purposes of paragraph 13(1)(g), prescribing facts and information to be contained in returns required to be delivered to the assessor under this Act;

(c) prescribing the duties of the board, with power to confer upon the board the power of an investigating body under the Public Investigations Evidence Act, fixing the remuneration payable to the chairperson and other members and providing for reimbursement of outlays and travel expenses;

(d) for the purposes of calculation of net revenue of a taxpayer liable to tax under section 9, prescribing areas of land in respect of which costs and outlays incurred by that taxpayer within the province may be deducted;

(e) setting the rates of depreciation of assets of a capital nature used in mining operations and processing minerals extracted from land under those mining operations, with power to prescribe different rates of depreciation and different methods of calculation of depreciation for different kinds or types of capital assets;

(f) exempting generally a class of persons from the payment of all or a part of the taxes imposed by this Act;

(g) prescribing the method of determining the actual cost of goods and services for the purpose of paragraph 5(2)(f); and

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

(2) Regulations made under paragraph (1)(f) may be made with retroactive effect to a date stated in the regulations which shall not be more than the period of 12 months before the date of publication in the Gazette.

1975 No68 s35

©Earl G. Tucker, Queen's Printer