Second

Session, 50th General Assembly

Charles III, 2023

BILL 38

AN ACT TO AMEND THE

REVENUE ADMINISTRATION ACT AND

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE SIOBHAN

COADY

Minister of Finance

and President of Treasury Board

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Revenue Administration Act to

remove the tax on carbon products;

and

increase the provincial payroll

tax exemption threshold to $2,000,000.

This Bill would amend the Income Tax Act, 2000 to

increase the tax credit rate for

the physical activity tax credit from 8.7% to 17.4%.

A BILL

AN ACT TO AMEND THE REVENUE ADMINISTRATION

ACT AND

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Analysis

REVENUE

ADMINISTRATION ACT

S.2 Amdt.

Definitions

S.5 Amdt.

Collection of tax

S.9 Amdt.

Books and records

S.30 Amdt.

Excess losses

S.32 Amdt.

Offences

S.37 Amdt.

Powers of inspectors re: compliance

S.38 Amdt.

Contravention of Act suspected

S.39 Amdt.

Determination of compliance Parts III & III.2

S.40 Amdt.

Samples

S.41 Amdt.

Contravention suspected

S.56 Amdt.

Tax

S.57 R&S

No double tax

Part III.1 Rep.

Carbon Tax

Part III.2 Heading Amdt.

Licences Re: Gasoline

S.72.11 Amdt.

Issuance of licence

S.72.13 Amdt.

Suspension, cancellation & limitation of licence

S.72.15 Amdt.

Automatic revocation of licence

S.108.1 Rep.

Regulations re: carbon tax

S.108.2 Amdt.

Regulations re: licences under

Part III.2

INCOME

TAX ACT, 2000

S.17.5 Amdt.

Physical activity tax credit

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

REVENUE ADMINISTRATION ACT

SNL2009 cR-15.01

as amended

(1) Paragraph 2(h.1) of the Revenue Administration Act is repealed.

(2) Paragraph 2(o.1) of the Act is repealed.

(3) Paragraph 2(

w) of the Act is repealed and the

following substituted:

(w) "exemption threshold" means, with respect to remuneration paid, $2,000,000;

(4) Paragraph 2(aa) of the Act is amended by

deleting the words "except in

Part III.1".

(5) Paragraph 2(yy) of the Act is amended by

deleting the words "or a carbon product".

(6) Subparagraph 2(kkk)(iii) of the Act is amended

(

a) deleting the words "or a carbon

product"; and

(

b) deleting the words "or carbon

product".

(7) Subparagraph 2(mmm)(ii) of the Act is amended

by deleting the words "or a carbon product" wherever they appear.

(8) Paragraph 2(nnn) of the Act is amended by

deleting the words "a carbon product".

(9) Paragraph 2(ooo.1) of the Act is repealed.

(10) Paragraph 2(sss.1) of the Act is repealed.

(11) Subparagraph 2(yyy)(

i) of the Act is amended

(

a) deleting the references " Parts III, III.1 and III.2 " and substituting

the references "Parts III and III.2"; and

(

b) deleting the words "or a carbon product".

2. Subsection 5(1) of the Act is amended by deleting

the references " Parts III, III.1, VIII, IX, IX.1

and IX.2" and substituting the references " Parts III, VIII, IX, IX.1 and IX.2".

3. (1) Paragraph 9(2)(

a) of the Act is amended by deleting

the words "or carbon products".

(2) Paragraph 9(2)(

c) of the Act is amended by deleting

the words "and tax-exempt carbon products".

Section 30 of the Act is amended by deleting

the words "or a carbon product" wherever they appear.

5. Subsection 32(2) of the Act is amended by

deleting the words "or a carbon product" wherever they appear.

6. Subsection 37(1) of the Act is amended by

deleting the references " Parts

III, III.1, III.2 and IX " and substituting the

references " Parts III, III.2 and IX" .

7. (1) Subsection 38(1) of the Act is amended by

deleting the references " Parts III, III.1, III.2

and IX " and substituting the references " Parts III, III.2 and IX".

(2) Subsection 38(2) of the Act is amended by

deleting the references " Parts III, III.1, III.2

and IX " and substituting the references " Parts III, III.2 and IX".

8. Subsection 39(1) of the Act is repealed and the

following substituted:

Determination of

compliance Parts III & III.2

(1) An inspector may, at all reasonable times, for a

purpose related to the administration or enforcement of

Part III or III.2 and

any regulations made under those Parts, inspect or examine the premises,

processes, books and records of a person that the inspector may consider

relevant for the purpose of determining compliance with those Parts, and the

inspector may, without a warrant,

(

a) enter any premises

where

(

i) a business is

carried on,

(ii) any property, or

books and records are or may be kept, or

(iii) anything is or is

suspected by the inspector of being done or stored in connection with a tax

imposed under this Act;

(

b) make copies,

extracts, photographs or videos the inspector considers necessary;

(

c) require the owner or

person in charge of a premises to give the inspector all reasonable assistance,

including the production of books and records as requested by the inspector,

and to answer all proper questions relating to the administration or

enforcement of

Part III or III.2 and any regulations made under those Parts

and, for that purpose, require the owner or person in charge to attend at the premises

with the inspector; and

(

d) require the owner or

person in charge to make available the means to generate and manipulate books

and records that are in machine readable or electronic form and any other means

or information necessary for the inspector to assess the books and records.

9. Subsection 40(1) of the Act is repealed and the

following substituted:

Samples

(1) Where it is reasonably necessary for the purpose of

ensuring compliance with

Part III and any regulations made under that Part, an

inspector may, at reasonable times, without a warrant,

(

a) inspect the contents

of a tank containing gasoline including the supply tank of an internal

combustion engine; and

(

b) for the purpose of

analysis, take a sample of gasoline not exceeding the quantity prescribed in

the regulations.

10. (1) Subsection 41(1) of the Act is amended by

(

a) deleting the references "Part III, III.1

or III.2" and substituting the references "Part III or III.2";

and

(

b) deleting the words "or a carbon

product" wherever they appear.

(2) Subsection 41(2) of the Act is amended by

(

a) deleting the words "or a carbon

product"; and

(

b) deleting the words "or carbon

product".

11. (1) Subsection 56(1) of the Act is amended by repealing

the description of "tr" and substituting the following:

= the tax rate per litre of diesel fuel grade of gasoline set out in

section

(2) Subsections 56(1.1) and (1.2) of the Act are

repealed.

(3) Subsection 56(2) of the Act is amended by

(

a) deleting the references "subsections (1) and

(1.2)" and substituting the reference "subsection (1)"; and

(

b) deleting the reference "and subsection

(1.1)".

(4) Subsection 56(3) of the Act is amended by

deleting the reference "and (1.2)".

(5) Subsection 56(4) of the Act is amended by deleting

the reference "and (1.2)".

Section 57 of the Act is repealed and the

following substituted:

No double tax

57. Sections 51 to 56 do not authorize the imposition of a tax under

this Act more than once upon the same gasoline.

Part III.1 of the Act is repealed.

14. The Act is amended by repealing the heading

"PART III.2 LICENCES RE: GASOLINE AND CARBON PRODUCTS" and

substituting the following:

PART III.2

LICENCES RE: GASOLINE

15. Subsection 72.11(1) of the Act is amended by

deleting the words "or a carbon product" wherever they appear.

16. Paragraph 72.13(

b) of the Act is amended by

(

a) deleting the words "or carbon

product"; and

(

b) deleting the words "or a carbon

product".

Section 72.15 of the Act is amended by deleting

the words "or a carbon product".

Section 108.1 of the Act is repealed.

19. Paragraph 108.2(

d) of the Act is amended by

deleting the words "or a carbon product".

INCOME TAX ACT, 2000

SNL2000 cI-1.1

as amended

20. Subsection 17.5(2) of the Income Tax Act, 2000 is repealed and the following substituted:

(2) An individual who

(

a) is resident in the

province at the end of the taxation year;

(

b) files a return of

income for the taxation year; and

(

c) makes a claim under

this

section

is considered to have paid, at the end of the year, on

account of tax payable under this Part for the year, an amount equal to the

amount determined by the formula

x B

where

is 17.4%;

B is the total of all amounts each of which is, in respect

of an individual for the year, the lesser of $2,000 and the amount determined

by the formula

- D

where

C is the total of all amounts each of which is an amount

paid in the taxation year by the individual or by the individual's spouse or

common-law partner that is an eligible fitness expense in respect of

(

i) the individual or

the individual's spouse or common-law partner, or

(ii) a child of the

individual or child of the individual's spouse or common-law partner, if the

child was less than 18 years of age at the end of the taxation year; and

D is the total of all amounts that any individual is or was

entitled to receive, each of which relates to an amount included in computing

the value of C in respect of the individual that is the amount of a

reimbursement, allowance or any other form of assistance, other than an amount

that is included in computing the income for any taxation year of that

individual and that is not deductible in computing the taxable income of that

individual.

Commencement

(1) This Act, except subsection 1(3) and

section 20, comes into force on July 1, 2023.

(2) Subsection 1(3) and

section 20 of this Act are

considered to have come into force on January 1, 2023.

King's Printer