Fuel and Gasoline Tax Amendment Act, 1997 Hodgson, Hon. Chris Chair of the Management Board of Cabinet — Bill 173 (36th Parliament, 1st Session)

Bill 173, 36-1

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Bill 173, Fuel and Gasoline Tax Amendment Act, 1997

Hodgson, Hon. Chris Chair of the Management Board of Cabinet

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[36] Bill 173 Original (PDF)

Bill 173 1997

An Act to amend the Fuel Tax Act and the Gasoline Tax Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

FUEL TAX ACT

1. (1) Subsection 1 (1) of the Fuel Tax Act , as amended by the Statutes of Ontario, 1991,

chapter 49,

section 1, 1994,

chapter 18,

section 2 and 1996,

chapter 10,

section 1, is further amended by adding the following

definition:

"adjusted temperature method" means the method of measuring the dispensed volume of fuel by adjusting the volume to the volume at a reference temperature of 15 degrees Celsius, by means of a dispensing pump or other metering assembly that is

equipped to effect the adjustment in accordance with the specifications established under the Weights and Measures Act (Canada). ("mthode de correction en fonction de la temprature")

(2) The

definitions of "clear fuel", "coloured fuel", "colouring" and "colour" in subsection 1 (1) of the Act are repealed and the following substituted:

"clear fuel" means fuel that contains no dye or less dye than the minimum quantity established by the Minister; ("carburant incolore")

"coloured fuel" means fuel which contains dye in a quantity greater than or equal to the amount established by the Minister; ("carburant color")

"colouring" and "colour" mean, in respect of fuel, the addition to the fuel of dye in the proportion established by the Minister by a person authorized to do so by the Minister. ("coloration" et "colorer")

(3) Subsection 1 (1) of the Act is amended by adding the following definition:

"distributor" means a person who is designated by the Minister under this Act to distribute special products. ("distributeur")

(4) The definition of "dye" in subsection 1 (1) of the Act is repealed and the following substituted:

"dye" means chemical substances that are approved by the Minister for the purpose of blending with fuel to make coloured fuel. ("colorant")

(5) Subsection 1 (1) of the Act is amended by adding the following definition:

"facility" means a facility that is owned or operated by a distributor and that meets the requirements set out in the regulations. ("installation")

(6) The definition of "fuel" in subsection 1 (1) of the Act, as re-enacted by the Statutes of Ontario, 1991,

chapter 49,

section 1, is amended by striking out the portion before clause (

a) and substituting the following:

"fuel" means any gas or liquid that may be used for the purpose of generating power by internal combustion, and includes any special product or any substance added to the gas or liquid, but does not include,

. . . . .

(7) The definition of "registered dyer" in subsection 1 (1) of the Act, as enacted by the Statutes of Ontario, 1991,

chapter 49,

section 1, is repealed and the following substituted:

"registered dyer" means a collector or distributor who holds a certificate of registration under this Act as a dyer. ("prpos la coloration inscrit")

(8) Subsection 1 (1) of the Act is amended by adding the following definition:

"special products" means products prescribed by the Minister as special products. ("produits spciaux")

(9) Subsection 1 (1) of the Act is amended by adding the following definition:

"unadjusted temperature method" means a method of measuring the dispensed volume of fuel that does not adjust the volume to the volume at a reference temperature of 15 degrees Celsius. ("mthode traditionnelle")

Section 2 of the Act, as re-enacted by the Statutes of Ontario, 1991,

chapter 49,

section 2 and amended by 1994,

chapter 18,

section 2, is further amended by adding the following subsections: Measuring volume and calculating

tax

(4.1) The tax imposed by this Act shall be computed in accordance with the following rules:

1. If the volume of fuel is measured by the adjusted temperature method for the purpose of determining price, the volume of the fuel shall be measured using that method for the purpose of computing amounts in respect of the tax imposed by this

Act.

2. If the volume of fuel is measured by the unadjusted temperature method for the purpose of determining price, the volume of the fuel shall be measured using that method for the purpose of computing amounts in respect of the tax imposed by

this Act.

3. A person who is a collector or wholesaler shall use the same method of measuring the volume of fuel on all sales to the same person during the same year. Exception

(4.2) Despite subsection (4.1), a person who is a collector or wholesaler may change to the other method of measuring the volume of fuel on sales to a particular person,

(

a) if a change in method is made only once; and

(

b) if the determination of the amount of tax in respect of sales after the change in method is based on volumes measured by the new method.

3. The Act is amended by adding the following section: Designation of distributor

3.0.1

(1) The Minister may designate in writing as a distributor a person who sells only special products. Conditions and limitations

(2) The Minister may attach such conditions and limitations to the designation as the Minister considers appropriate. Termination

(3) The Minister may terminate a person's designation,

(

a) if the person has not sold or delivered any special product for which the designation was issued for a period of six consecutive months;

(

b) if the person ceases to sell the special product for which the designation was issued;

(

c) if the product sold by the person ceases to be a special product;

(

d) if the person changes the nature of the person's business or ceases to operate the business of selling special products; or

(

e) if the requirements relating to the facility owned or operated by the person are not met. Notice of termination

(4) The termination of a designation is effective 14 days after the date on which the Minister mails notice of the termination. Distributor as agent

(5) Every distributor is an agent of the Minister for the purpose of collecting and remitting the tax imposed by this Act. Agreements

(6) The Minister may enter into such arrangements and agreements with a distributor as the Minister considers appropriate to ensure and facilitate the collection of tax under this Act.

4. Subsection 3.1 (1) of the Act, as enacted by the Statutes of Ontario, 1991,

chapter 49,

section 3, is amended,

(

a) by inserting after "collector" in the first line "or distributor"\; and

(1) Subsection 3.2 (1) of the Act, as enacted by the Statutes of Ontario, 1991,

chapter 49,

section 3, and amended by 1994,

chapter 18,

section 2, is further amended,

(

a) by inserting after "collector" in the first line "or distributor"\; and

(2) Subsection 3.2 (2) of the Act, as enacted by the Statutes of Ontario, 1991,

chapter 49,

section 3 and amended by 1994,

chapter 18,

section 2, is further amended,

(

a) by inserting after "collector" in the first line "or distributor"\; and

6. Subsection 3.4 (4) of the Act, as enacted by the Statutes of Ontario, 1991,

chapter 49,

section 3, is amended by inserting after "collector" in the second line "a distributor".

(1) Subsection 3.5 (1) of the Act, as enacted by the Statutes of Ontario, 1991,

chapter 49,

section 3, is amended by inserting after "collector" in the second and third lines "distributor".

(2) Subsection 3.5 (2) of the Act, as enacted by the Statutes of Ontario, 1991,

chapter 49,

section 3, is amended by inserting after "a collector" in the second line "a distributor".

(1) Subsection 3.6 (1) of the Act, as enacted by the Statutes of Ontario, 1991,

chapter 49,

section 3, is amended by inserting after "collector" in the last line "distributor".

(2) Subsection 3.6 (2) of the Act, as enacted by the Statutes of Ontario, 1991,

chapter 49,

section 3 and amended by 1994,

chapter 18,

section 2, is repealed.

9. The Act is amended by adding the following section: Trust for moneys collected

3.6.1

(1) Any amount collected or collectable as or on account of tax under this Act by a collector, distributor or registered importer shall be deemed, despite any security interest in the amount so collected or collectable,

to be held in trust for Her Majesty in right of Ontario and separate and apart from the property of the collector, distributor or registered importer, and from property held by any secured creditor that but for the security interest would be the

property of the collector, distributor or registered importer, and shall be paid over by the collector, distributor or registered importer in the manner and at the time provided under this Act and the regulations. Extension of trust

(2) Despite any provision of this or any other Act, where at any time an amount deemed by subsection (1) to be held in trust is not paid as required under this Act, property of the collector, distributor or registered importer and property held

by any secured creditor of the collector, distributor or registered importer that but for a security interest would be property of the collector, distributor or registered importer, equal in value to the amount so deemed to be held in trust shall

be deemed,

(

a) to be held, from the time the amount was collected or collectable by the collector, distributor or registered importer, separate and apart from the property of the collector, distributor or registered importer in trust for Her Majesty in

right of Ontario whether or not the property is subject to a security interest; and

(

b) to form no part of the estate or property of the collector, distributor or registered importer from the time the amount was so collected or collectable whether or not the property has in fact been kept separate and apart from the estate or

property of the collector, distributor or registered importer and whether or not the property is subject to such security interest. Same

(3) The property described in subsection (2) shall be deemed to be beneficially owned by Her Majesty in right of Ontario despite any security interest in such property or in the proceeds of such property, and the proceeds of such property shall

be paid to the Minister in priority to all such security interests. Exception

(4) This

section and subsection 17 (3.1) do not apply in proceedings to which the Bankruptcy and Insolvency Act (Canada) or the Companies' Creditors Arrangement Act (Canada) apply. Minister's certificate

(5) Every person who, as assignee, liquidator, administrator, receiver, receiver-manager, secured or unsecured creditor or agent of the creditor, trustee or other like person, other than a trustee appointed under the Bankruptcy and

Insolvency Act (Canada), takes control or possession of the property of any collector, distributor or registered importer shall, before distributing such property or the proceeds from the realization thereof under that person's control,

obtain from the Minister a certificate that the amount deemed by subsection (1) to be held in trust, including any interest and penalties payable by the collector, distributor or registered importer, has been paid or that security acceptable to

the Minister has been given. No distribution without Minister's certificate

(6) Any person described in subsection (5) who distributes any property described in that subsection or the proceeds of the realization thereof without having obtained the certificate required by that subsection is personally liable to Her

Majesty in right of Ontario for an amount equal to the amount deemed by subsection (1) to be held in trust, including any interest and penalties payable by the collector, distributor or registered importer. Notice to be given

(7) The person described in subsection (5) shall, within 30 days from the date of that person's ass

Document details

Collection	Ontario — Bills
Citation	Bill 173, 36-1
Type	bill
Volume / chapter	p36 s1 bill 173 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	45377abad153370068065ef3a64d3b4047b15d59

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