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First
Session, 50th General Assembly 71 Elizabeth II, 2022 |
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AN ACT TO AMEND THE
REVENUE ADMINISTRATION ACT NO. 5 |
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Received and Read the First Time................................................................ |
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Second
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Committee..................................................................................................... |
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Third
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Royal Assent................................................................................................. |
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HONOURABLE SIOBHAN COADY Minister of Finance and President of Treasury Board |
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Ordered to be printed by
the Honourable House of Assembly |
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EXPLANATORY NOTES This Bill would amend the Revenue Administration Act to · add an offence where a person who is not a licensed wholesaler sells gasoline, carbon products or tobacco to another wholesaler; · clarify that in order to qualify for the reduced gasoline tax rate gasoline for use in an aircraft is required to be delivered to the aircraft; · remove the requirement that a seller of furnace oil, stove oil, kerosene, naphtha, butane gas, propane gas or liquefied petroleum gas that is not used for the generation of power in an internal combustion engine obtain a wholesaler or retailer licence for the purposes of carbon tax; · allow, as a deduction from gross revenue, costs directly incurred by a mine operator to obtain financial assurance to fulfill the obligations under the Mining Act to provide financial assurance as part of a rehabilitation and closure plan; · allow an operator that is a partnership, limited partnership, joint venture, co-venture, association or syndicate to request approval from the minister to deduct from gross revenue an amount in relation to exploration expenditures incurred by one its members based on the member's ownership interest in the profits of the operator; · allow an operator that is partnership, limited partnership, joint venture, co-venture, association or syndicate to request approval from the minister to claim against tax otherwise payable an amount in relation to the corporate income tax paid in the preceding year by one of its members based on the member's ownership interest in the profits of the operator; · allow an operator of a mine to roll over assets at undepreciated capital cost, transfer unclaimed pre-production and exploration expenditures and include provisions to imply a deemed disposition of assets when an operator changes its legal form without substantially changing the percentage ownership and continues to operate the mine in the province; · exclude from retail sales tax on insurance premiums any fees that are taxable for purposes of the harmonized sales tax; · replace all references to "Trial Division" with the correct reference "Supreme Court"; and · incorporate gender-neutral language. A BILL AN ACT TO AMEND THE REVENUE ADMINISTRATION ACT NO. 5 Analysis 1.
S.2 Amdt. 2.
S.7 Amdt. 3.
S.8 Amdt. 4.
S.11.1 Amdt. 5.
S.12 Amdt. 6. S.14 Amdt. Appeal to Supreme Court 7.
S.15 Amdt. 8.
S.19 Amdt. 9.
S.23 Amdt. 10.
S.24 Amdt. 11.
S.25 Amdt. 12.
S.26 Amdt. 13.
S.27 Amdt. 14.
S.32 Amdt. 15.
S.38 Amdt. 16.
S.41 Amdt. 17.
S.43 Amdt. 18.
S.44 Amdt. 19.
S.45 Amdt. 20.
S.49 Amdt. 21.
S.51 Amdt. 22.
S.54 Amdt. 23.
S.68 Amdt. 24.
S.69 Amdt. 25.
S.72.3 Amdt. 26. S.72.5.1 Added Saving provision 27.
S.72.8 Amdt. 28.
S.75 Amdt. 29.
S.81 Amdt. 30.
S.82 Amdt. 31.
S.82.1 Added. 32.
S.84 Amdt. 33.
S.85 Amdt. 34.
S.89 Amdt. 35.
S.91 Amdt. 36.
S.91.1 Amdt. 37.
S.91.5 Amdt. 38.
S.94 Amdt. 39.
S.95 Amdt. 40.
S.96 Amdt. 41.
S.106.3 Amdt. 42.
S.112 Amdt. 43. Commencement Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: SNL2009 cR-15.01 1. (1) Clause 2(m)(i)(A) of the Revenue Administration Act is amended by deleting the words "his or her" and substituting the words "the person's". (2) Subparagraph 2(u)(iii) of the Act is amended by deleting the words "his or her" and substituting the word "the". (3) Paragraph 2(ff) of the Act is amended by deleting the words "him or her" and substituting the words "the person". (4) Clause 2(kkk)(iii)(A) of the Act is amended by deleting the words "his or her" wherever they appear and substituting the words "the person's". 2. Subsection 7(1) of the Act is amended by deleting the words "he or she" and substituting the words "the minister". 3. Paragraph 8(b) of the Act is amended by deleting the words "his or her" and substituting the words "the person's". 4. Subsection 11.1(1) of the Act is amended by deleting the words "he or she" and substituting the words "the operator". 5. Subsection 12(6) of the Act is amended by deleting the words "Trial Division" and substituting the words "Supreme Court". 6. (1) Subsection 14(1) of the Act is repealed and the following substituted: Appeal to Supreme Court 14. (1) Part or all of a reply from the minister in response to a notice of objection may be appealed to the Supreme Court by commencing a proceeding in the Supreme Court within 60 days of receiving the minister's reply. (2) Subsection 14(2) of the Act is amended by deleting the words "he or she" and substituting the words "the judge". 7. Section 15 of the Act is amended by deleting the words "Trial Division" wherever they appear and substituting the words "Supreme Court". 8. Paragraph 19(1)(c) of the Act is amended by deleting the words "his or her" and substituting the words "the taxpayer's". 9. Section 23 of the Act is amended by deleting the words "Trial Division" wherever they appear and substituting the words "Supreme Court". 10. Subsection 24(1) of the Act is amended by deleting the words "him or her" and substituting the words "the person". 11. Subsection 25(3) of the Act is amended by deleting the words "he or she" and substituting the words "the director". 12. Section 26 of the Act is amended by deleting the words "him or her" and substituting the words "the person". 13. Subsection 27(3) of the Act is amended by deleting the words "he or she" and substituting the words "the judge". 14. (1) Subparagraph 32(1)(b)(i) of the Act is amended by deleting the words "him or her" and substituting the words "the person". (2) Subparagraph 32(1)(b)(ii) of the Act is amended by deleting the words "he or she" and substituting the words "the person". (3) Paragraph 32(1)(d) of the Act is amended by deleting the words "of him or her". (4) Paragraph 32(2)(b) of the Act is amended by deleting the words "his or her" and substituting the word "the". (5) Subsection 32(2) of the Act is amended by deleting the word "or" after paragraph (c), adding a semi-colon and the word "or" after paragraph (d) and adding immediately after paragraph (d) the following: (e) not being a wholesaler, sells gasoline or a carbon product to a wholesaler (6) Subsection 32(6.1) of the Act is amended by deleting the words "he or she" and substituting the words "the person". (7) Paragraph 32(7)(c) of the Act is repealed and the following substituted: (c) not having a valid wholesaler's licence, sells tobacco to a wholesaler or retailer; 15. Subsection 38(3) of the Act is amended by deleting the words "his or her" and substituting the words "the inspector's". 16. Subsection 41(2) of the Act is amended by deleting the words "he or she" and substituting the words "the inspector". 17. Subsection 43(3) of the Act is amended by deleting the words "his or her" and substituting the words "the inspector's". 18. Section 44 of the Act is amended by deleting the words "he or she" wherever they appear and substituting the words "the inspector". 19. (1) Subsection 45(2) of the Act is amended by deleting the words "to him or her". (2) Subsection 45(3) of the Act is repealed and the following substituted: (3) A person from whom tobacco seized as contraband under subsection 42(2), section 43 or 44 who is not convicted of an offence under section 32 in relation to that seizure and who establishes to the satisfaction of the minister that the tobacco is not contraband and is the person's property may apply to the minister to have that property returned or for reimbursement of the value of that tobacco and the minister shall return that property or pay out to the person from the Consolidated Revenue Fund an amount equal to the value of tobacco that was the person's tobacco at the time of its seizure. 20. Subsection 49(3) of the Act is amended by deleting the words "he or she" and substituting the words "the inspector". 21. Paragraph 51(d) of the Act is repealed and the following substituted: (d) on gasoline delivered for consumption or use in an aircraft, a tax of $0.025 per litre; and 22. Section 54 of the Act is amended by (a) deleting the words "he or she" and substituting the words "the person"; and (b) deleting the words "himself or herself" and substituting the words "the person's own consumption or use". 23. Paragraph 68(a) of the Act is amended by deleting the words "his or her" and substituting the words "the driver's". 24. Subsection 69(2) of the Act is amended by deleting the words "he or she" and substituting the words "the inspector". 25. Section 72.3 of the Act is amended by (a) deleting the words "he or she" and substituting the words "the person"; and (b) deleting the words "himself or herself" and substituting the words "the person's own consumption or use". 26. The Act is amended by adding immediately after section 72.5 the following: Saving provision 72.5.1 (1) Nothing in this Part requires a person to obtain either a retailer or wholesaler licence merely because that person sells furnace oil, stove oil, kerosene, naphtha, butane gas, propane gas or liquefied petroleum gas for purposes other than use in the generation of power in internal combustion engines. (2) A person mentioned in subsection (1) shall not rebrand products described in subsection (1) and sell them for consumption in internal combustion engines, whether as taxable carbon products or otherwise, unless that person is in possession of a wholesaler licence issued under Part III.2. (3) Notwithstanding subsections (1) and (2), a person selling products under this section shall keep those books and records the minister may, by regulation, prescribe, and shall be subject to Parts I and II of this Act and any regulations made under those Parts. (4) A person selling products under this section shall provide to the purchaser an invoice containing the information that may be required under the regulations. 27. Paragraph 72.8(a) of the Act is amended by deleting the words "his or her" and substituting the words "the driver's ". 28. Section 75 of the Act is amended by deleting the words "him or her" and substituting the words "the person". 29. (1) Paragraph 81(1)(e) of the Act is repealed and the following substituted: (e) withdrawals from a form of financial assurance referred to in
subsection 10(3) of the Mining Act; and (2) Subsection 81(2) of the Act is amended by deleting the words "he or she" and substituting the words "the operator". (3) Subsection 81(3) of the Act is amended by deleting the words "his or her own determination" and substituting the words "a different determination". 30. (1) Subsection 82(1) of the Act is amended by deleting the word "and" at the end of paragraph (e) and adding immediately after that paragraph the following: (e.1) costs incurred to obtain financial assurance for a rehabilitation and closure plan approved by the minister under section 9 of the Mining Act; and (2) Section 82 of the Act is amended by adding immediately after subsection (2) the following: (2.1) Notwithstanding subsection (2), where an operator is a partnership, limited partnership, joint venture, co-venture, association or syndicate, the operator may request approval from the minister to deduct from gross revenue an amount in relation to exploration expenditures incurred by one of its members anywhere in the province before the commencement of commercial production. (2.2) A request referred to in subsection (2.1) shall (a) be made in the form and manner set by the minister; and (b) include the consent of the member. (2.3) Where the minister approves a request under subsection (2.1), the amount referred to in that subsection shall be the lesser of (a) the actual exploration expenditures incurred by the member and not previously deducted; and (b) the member's proportionate share of net income under this section, before any deduction under subsection (2.1), based on the member's ownership interest in the profits of the operator subject to the tax under section 80. (3) Subsection 82(6) of the Act is amended by deleting the words "his or her own determination" and substituting the words "a different determination". 31. The Act is amended by adding immediately after section 82 the following: Rollovers 82.1 (1) Notwithstanding subsections 81(2) and 82(5)
and subject to subsection (2), where an operator transfers its mining lease and
other assets to another operator, the operator who is transferring the mining
lease and assets and the operator who is receiving the mining lease and assets
may jointly request approval from the minister for the following: (a) that for the
purposes of section 60 of the regulations, the amount paid for the acquisition
of the assets be considered to be equal to the transferring operator’s
undepreciated capital cost; (b) that
for the purposes of calculating the processing allowance under section 61 of
the regulations, the original cost of the assets being transferred be
considered to be equal to the original cost of the assets to the operator who
is transferring the assets; and (c) that for the
purposes of paragraph 82(1)(c) and subsection 82(2), any pre-production
expenditures and exploration expenditures of the operator transferring its
mining lease and assets that have not been deducted in a previous year be
considered to be an amount incurred by the operator who is receiving the
assets. (2) Subsection
(1) only applies where the owner of the operator that is transferring the
mining lease and assets has substantially the same ownership interest in the
operator that is receiving the mining lease and assets. (3) Any assets
of the operator who is transferring assets under this section that are not
transferred in accordance with this section shall be considered to have been
disposed of at fair market value. (4) For the purposes of paragraph (1)(a), the “transferring operator’s undepreciated capital cost” means the undepreciated capital cost of the assets to the operator who is transferring the assets immediately before the date of transfer. 32. (1) Section 84 of the Act is amended by adding immediately after subsection (1) the following: (1.1) Notwithstanding subsection (1), where an operator is a partnership, limited partnership, joint venture, co-venture, association or syndicate, the operator may in respect of the current tax year request approval from the minister to claim against tax otherwise payable an amount in relation to the corporate income tax paid to the province in the preceding year by one of its members. (1.2) A request referred to in subsection (1.1) shall (a) be made in the form and manner set by the minister; and (b) include the consent of the member. (1.3) Where the minister approves a request under subsection (1.1), the amount referred to in that subsection shall be the lesser of (a) the actual corporate income tax paid to the province by the member; and (b) the member's proportionate share of taxable income under subsection 83(1) based on the member's ownership interest in the profits of the operator. (2) Subsection 84(2) of the Act is repealed and the following substituted: (2) Subsections (1) and
(1.1) apply only for 10 consecutive years beginning in the year in which
commercial production is achieved in the mine from which the mining income is
derived, but the cumulative amount of the deduction shall not exceed $20
million. (3) Subsections 84(3) to (5) of the Act are repealed and the following substituted: (3) A credit under
subsections (1) and (1.1) are applicable only if all depreciation and exploration
expenses available in the year have been utilized by the operator. (4) The total amount of both
credits in respect of corporate income tax under subsections (1) and (1.1) for
a year shall be the lesser of (a) $2 million, and (b) amounts payable under the Income Tax Act, 2000 for the year
in respect of mining operations. (5) Where a corporate income tax credit has been claimed with respect to the corporate income tax paid for a particular tax year and an operator or member has subsequently been subject to a reassessment with respect to that tax year, the operator or member shall inform the minister of that reassessment and the mining tax payable under this Part shall be reassessed as appropriate. 33. Section 85 of the Act is amended by adding immediately after subsection (4) the following: (5) Notwithstanding paragraph (4)(b), where a person referred to in that paragraph is a partnership, limited partnership, joint venture, co-venture, association or syndicate, the person may request approval from the minister to include in exploration expenditures deductible under that paragraph, an amount in relation to exploration expenditures incurred by one of its members. (6) A request referred to in subsection (5) shall (a) be made in the form and manner set by the minister; and (b) include the consent of the member. (7) Where the minister approves a request under subsection (5), the amount referred to in that subsection shall be the lesser of (a) the actual exploration expenditures incurred by the member and not previously deducted against tax payable for any mining operations in the province; and (b) the member's proportionate share of net revenue under subsection (4), before any deduction referred to in subsection (5), based on the member's ownership interest in the profits of the person referred to in paragraph (4)(b) subject to the tax under subsection (1). 34. Section 89 of the Act is amended by (a) deleting the words "he or she" wherever they appear and substituting the words "the person"; and (b) deleting the words "to him or her". 35. Section 91 of the Act is amended by deleting the words "to him or her". 36. (1) Section 91.1 of the Act is amended by adding immediately before subsection (2) the following: (1.2) Notwithstanding subsection (1), tax is not payable on any portion of a premium that is subject to tax under subsection 165(2) of the Excise Tax Act (Canada). (2) Subsection 91.1(9) of the Act is amended by (a) deleting the words "by him or her"; and (b) deleting the words "he or she" and substituting the words "the collector". 37. Section 91.5 of the Act is amended by deleting the words "his or her" wherever they appear and substituting the words "the seller's". 38. Subsection 94(1) of the Act is amended by deleting the words "him or her" and substituting the words "the person". 39. Subsection 95(2) of the Act is amended by deleting the words "he or she" and substituting the words "the person". 40. Subsection 96(1) of the Act is amended by deleting the words "he or she" and substituting the words "the person". 41. (1) Subsection 106.3(1) of the Act is amended by deleting the words "to him or her". (2) Subsection 106.3(2) of the Act is amended by (a) deleting the words "by him or her"; and (b) deleting the words "he or she" and substituting the words "the retailer". 42. Paragraph 112(1)(j) of
the Act is amended by deleting the words "he or she" and substituting
the words "the transporter". Commencement 43. Section 26 is considered to have come into force on January 1, 2019. ©Queen's Printer |