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CONSOLIDATED

NEWFOUNDLAND

AND

LABRADOR

REGULATION 761/96

Offshore Area Corporate Income Tax Regulations

under the

Offshore Area Corporate Income Tax Act

(O.C. 96-119)

Amended by:

2001 c42 s45

CONSOLIDATED

NEWFOUNDLAND

AND

LABRADOR

REGULATION 761/96

Offshore Area Corporate Income Tax Regulations

under the

Offshore Area Corporate Income Tax Act

(O.C. 96-119)

Under the authority of

section 23 of the Offshore Area Corporate Income Tax Act

and the Subordinate Legislation Revision and Consolidation Act

, the Lieutenant-Governor in Council makes the following regulations.

REGULATIONS

Analysis

Short title

Definitions

Percentage of taxable income

Application for payment

Notice

Interest payable by the minister and recipient

Obligations of eligible corporations

Redetermination

Notice under paragraph 6(2)(

a) of the Act

Repeal

Short title

These regulations may be cited as the Offshore Area Corporate Income Tax Regulations

208/90 s1

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Definitions

In these regulations

(a)

"Act" means the Offshore Area Corporate Income Tax Act

(b)

"applicable rate" means the rate expressed as a percentage of taxable income that is applied to determine the tax payable by a large corporation under a provincial tax Act in respect of taxable income derived from an active business;

(c)

"large corporation" means a corporation other than a Canadian controlled private corporation;

(d)

"national average rate" for a taxation year means the arithmetic mean of the provincial rates for the year;

(e)

"provincial rate" in respect of a taxation year of an applicant means the applicable rate for the taxation year under a provincial tax Act and where more than one rate applies under a provincial tax Act during the taxation year, the provincial rate shall be the aggregate of the proportions of each rate that applied during the taxation year that the number of days during which each rate applied is to the number of days in the taxation year; and

(f)

"provincial tax Act" means all or any of the following as the context requires:

(

i) in the case of

Alberta

, the

Alberta

Corporate Income Tax Act,

as amended or succeeded,

(ii)

in the case of

British Columbia

, the Income Tax Act

British Columbia

), as amended or succeeded,

(iii)

in the case of

Manitoba

, The Income Tax Act

Manitoba

), as amended or succeeded,

(iv)

in the case of

New Brunswick

, the Income Tax Act

New Brunswick

), as amended or succeeded,

(

v) in the case of

Newfoundland

and

Labrador

, the Income Tax Act

Newfoundland

and

Labrador

), as amended or succeeded,

(vi)

in the case of

Nova Scotia

, the Income Tax Act

Nova Scotia

), as amended or succeeded,

(vii)

in the case of

Ontario

, the Corporations Tax Act

Ontario

), as amended or succeeded,

(viii)

in the case of

Prince Edward Island

, the Income Tax Act

Prince Edward Island

), as amended or succeeded,

(ix)

in the case of

Quebec

, the Taxation Act

Quebec

), as amended or succeeded,

(

x) in the case of

Saskatchewan

, The Income Tax Act

Saskatchewan

), as amended or succeeded, and

(xi)

in the case of a province admitted into

Canada

subsequent to

November 10, 1990

, under the statute of the province imposing a tax upon the taxable income of corporations generally.

208/90 s2; 212/92 s1; 2001 c42 s45

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Percentage of taxable income

For the purpose of subsection 3(1) of the Act, the prescribed percentage of taxable income earned by the applicant in the offshore area in that taxation year is the amount by which the provincial rate for that taxation year under the

Newfoundland

and Labrador Act exceeds the national average rate for that taxation year.

208/90 s3; 212/92 s2; 2001 c42 s45

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Application for payment

(1) For the purpose of subsection 3(1) of the Act, an application for payment in respect of a taxation year must be submitted within 90 days of the mailing date of an assessment notice of the eligible corporation under the Federal Accord Act in respect of the year.

(2) Each application in respect of a taxation year shall be accompanied by

(

a) a copy of the return of income of the eligible corporation under the Federal Tax Act for the year;

(

b) a copy of the notice of assessment in respect of the year; and

(

c) a certificate of an authorized signing officer of the corporation certifying that, to the best of his or her knowledge or belief, the return of income and application are true and complete in all material respects.

(3) The minister may extend the time for filing an application under the Act where an application is made in writing within 2 years from the last day on which an application for payment may be made under the Act.

208/90 s4; 212/92 s3

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Notice

Notice to the minister under the Act shall

(

a) be delivered to the minister or to a person designated by the minister;

(

b) be accompanied by a true and complete copy of all relevant documentation, including the information required by subsection 4(2); and

(

c) where there is an assessment, describe the assessment in sufficient detail to enable the minister to make a determination or redetermination in accordance with the Act.

208/90 s5

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Interest payable by the minister and recipient

For the purpose of subsection 7(3) of the Act, the prescribed rate in respect of interest payable by the minister shall be the rate determined in accordance with subsection 164(3) of the Income Tax Act

(Canada) and in respect of interest payable by a recipient shall be the rate determined in accordance with

section 163.1 of the Income Tax Act

(Canada).

208/90 s6

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Obligations of eligible corporations

(1) Where an eligible corporation has entered into an agreement with the minister providing for undertakings in respect of the administration and enforcement of the Act, a payment shall not be conditional upon the eligible corporation entering into additional undertakings with the minister in respect of the administration and enforcement of the Act.

(2) The obligations of the eligible corporation under the agreement and under another agreement entered into under the agreement shall constitute undertakings of the eligible corporation for the purpose of the Act and these regulations.

208/90 s7

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Redetermination

A redetermination under subsection 4(2) of the Act shall be made by the minister, in writing, and either mailed to or served on the recipient.

208/90 s8

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Notice under paragraph 6(2)(

a) of the Act

A notice to a recipient under paragraph 6(2)(

a) of the Act shall be given by the minister, in writing, and either mailed to or served on the recipient.

208/90 s9

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Repeal

The Offshore Area Corporate Income Tax Regulations, Newfoundland Regulation 208/90, are repealed.

Earl G. Tucker, Queen's Printer