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This is an unofficial archived version of The Income Tax Act

as enacted by SM 1988-89, c. 1 on October 19, 1988.

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R.S.M. 1988, c. I10

The Income Tax Act

Table of contents

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions.

1(1)

In this Act,

"amount" means money, rights, or things expressed in terms of the amount of money or the value in terms of money of the right or thing; ("montant")

"assessment" includes a re-assessment; ("cotisation")

"business" includes a profession, calling, trade, manufacture or undertaking of any kind whatsoever, and includes an adventure or concern in the nature of trade but does not include an office or employment; ("entreprise")

"collection agreement" means an agreement entered into pursuant to subsection 61(1); ("arrangement relatif à la perception")

"corporation" includes an incorporated company and a "corporation incorporated in Canada" includes a corporation incorporated in any part of Canada before or after it became part of Canada; ("corporation")

"court" means Her Majesty's Court of Queen's Bench for Manitoba; ("tribunal")

"deputy head" means,

(

a) the Deputy Minister of Finance of Manitoba; or

(

b) where a collection agreement is entered into, the Deputy Minister of National Revenue for Taxation; ("administrateur général" )

"federal Act" means the Income Tax Act (Canada); ("loi fédérale")

"federal regulations" means the regulations made pursuant to the federal Act; ("règlements fédéraux")

"income tax statute" means, with reference to an agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act; ("loi de l'impôt sur le revenu")

"individual" means a person other than a corporation and includes a trust or estate as defined in subsection 104(1) of the federal Act; ("particulier")

"loss" means a loss as determined in accordance with, and for the purposes of, the federal Act; ("perte")

"minister" means the Minister of National Revenue for Canada; but in any provision of the federal Act that is incorporated by reference in this Act, unless a collection agreement has been entered into, a reference to the minister shall be read and construed for the purposes of this Act as a reference to the treasurer; ("ministre")

"permanent establishment" means permanent establishment as defined in the federal regulations; ("établissement permanent")

"person" or any word or expression descriptive of a person, includes any body corporate and politic, and the heirs, executors, administrators or other legal representatives of a person, according to the law of that part of Canada to which the context extends; ("personne")

"prescribed" in the case of a form or the information to be given on a form, means prescribed by order of the treasurer, and, in any other case, means prescribed in the regulations or determined in accordance with rules prescribed in the regulations; ("prescrit")

"province" means a province of Canada and includes the Yukon Territory and the Northwest Territories; ("province")

"Receiver-General of Canada" means the Receiver-General of Canada; but in any provision of the federal Act that is incorporated by reference in this Act, unless a collection agreement is entered into, a reference to the Receiver-General of Canada, shall be read and construed for the purposes of this Act as a reference to the treasurer; ("receveur général du Canada")

"taxable income" means taxable income as determined in accordance with, and for the purposes of, the federal Act subject to variation on objection or on appeal, if any, in accordance with the provisions of the federal Act; ("revenu imposable")

"taxpayer" includes any person whether or not liable to pay tax; ("contribuable")

"taxation year" means

(

a) in the case of a corporation, a fiscal period;

(

b) in the case of an individual, a numerical year; and

(

c) in the case of an estate or trust arising on death, notwithstanding sub-clause (b), a taxation year as defined in paragraph 104(23)(

a) of the federal Act;

and when a taxation year is referred to by reference to a numerical year, the reference is to the taxation year or years coinciding with, or ending in, that year; ("année d'imposition")

"treasurer" means the Minister of Finance of Manitoba, or, where a collection agreement is entered into means

(

a) in relation to the remittance of any amount as or on account of tax payable under this Act, the Receiver-General of Canada; and

(

b) in relation to any other matter, the minister. ("trésorier")

"Last day of the taxation year".

1(2)

The expression "last day of the taxation year" shall, in the case of an individual who resided in Canada at any time in the taxation year but ceased to reside in Canada before the last day thereof, be deemed to be a reference to the last day in the taxation year on which he resided in Canada.

Tax payable.

1(3)

The tax payable by a taxpayer under this Act or under

Part I of the federal Act means the tax payable by him as fixed by assessment or re-assessment subject to variation on objection or on appeal, if any, in accordance with this Act, or

Part I of the federal Act, as the case may be.

Definitions under federal Act

1(4)

For the purposes of this Act, except where they are at variance with the

definitions contained in this section, the

definitions and

interpretations contained in, or made by regulations under, the federal Act apply.

Interpretation generally.

1(5)

In any case of doubt, the provisions of this Act shall be applied and interpreted in a manner consistent with similar provisions of the federal Act.

Calculation of interest

Interest computed under any of subsections 24(1), (2) and (11), 28(3), (4) and (5) and 46(6) and (7) shall be compounded daily, and, where interest is computed on an amount under any of those provisions and is unpaid on the day it would, but for this subsection, have ceased to be computed under that provision, interest at the rate provided by that provision shall be computed and compounded daily on the unpaid interest from that day to the day it is paid.

PART I

INCOME TAX DIVISION I LIABILITY FOR TAX

Tax payable by individuals.

3(1)

An income tax shall be paid as hereinafter required for each taxation year by every individual,

(

a) who was resident in Manitoba on the last day of the taxation year; or

(

b) who, not being resident in Manitoba on the last day of the taxation year, had income earned in the taxation year in Manitoba as defined in the definition "income earned in the taxation year in Manitoba" in subsection 4(17).

Tax payable by corporations.

3(2)

An income tax shall be paid as hereinafter required for each taxation year by every corporation that maintained a permanent establishment in Manitoba at any time in the year.

DIVISION II COMPUTATION OF TAX INDIVIDUAL INCOME TAX

Amount of tax.

4(1)

The tax payable under

section 3 for a taxation year by an individual who resided in Manitoba on the last day of the taxation year and had no income earned in the taxation year outside Manitoba is the percentage of the tax payable under the federal Act for that year specified in subsection (4).

Income earned outside province.

4(2)

The tax payable under

section 3 for a taxation year by an individual

(

a) who resided in Manitoba on the last day of the taxation year but had income earned in the taxation year outside Manitoba; or

(

b) who did not reside in Manitoba on the last day of the taxation year but had income earned in the taxation year in Manitoba;

is the amount that bears the same relation to the percentage of the tax payable under the federal Act for that year specified in subsection (8) that his income earned in the taxation year in Manitoba bears to his income for the year.

Tax deemed to be paid.

4(3)

An individual to whom

section 3 is applicable for a taxation year is deemed to have paid on account of his tax for the year an amount equal to the product of

(

a) an amount that bears the same relation to the excess determined under subsection 120.1(4) of the federal Act for the year that his income earned in the taxation year in Manitoba bears to his income for the year; and

(

b) the percentage specified in subsection (4) for the year.

Computation of tax.

4(4)

For the purposes of this

section the percentage of the tax payable under the federal Act to be used for computing the tax payable under

section 3 is 54% in respect of the 1987 and subsequent taxation years allocated and distributed as follows:

(a) 51.8% for provincial purposes, and

(b) 2.2% for municipal purposes.

Distribution to municipalities.

4(5)

The amount of moneys realized by the percentages mentioned in subsection (4) to be for municipal purposes shall be allocated to municipalities, Indian Reserves, communities under The Northern Affairs Act and other areas of the province and distributed in accordance with the provisions of The Provincial-Municipal Tax Sharing Act.

Personal income surtax 1987.

4(6)

For the 1987 taxation year, in addition to the income tax payable by an individual for the taxation year computed in accordance with subsection (4), every individual shall pay a personal income surtax equal to 20% of the amount by which the provincial income tax that would, but for

section 120.1 of the federal Act, be payable by him in that year exceeds the amount of provincial income tax that would, but for

section 120.1 of the federal Act, be payable by him in that year at a taxable income of $25,000.

Surtax on forward averaging.

4(7)

For the 1987 taxation year, every individual shall pay a personal income surtax equal to the product of

(

a) an amount that bears the same relation to the amount added under subsection 120.1(2) of the federal Act for the year that his income earned in the taxation year in Manitoba bears to his income for the year; and

(

b) the product of 20% by the percentage specified in subsection (4) for the year.

Tax deemed to be paid.

4(8)

For the 1987 taxation year, an individual is deemed to have paid on account of his tax for the year an amount equal to the product of

(

a) an amount that bears the same relation to the amount deducted under subsection 120.1(1) of the federal Act for the year that his income earned in the taxation year in Manitoba bears to his income for the year; and

(

b) the product of 20% by the percentage specified in subsection (4) for the year.

Net income tax 1987.

4(9)

For the 1987 taxation year, an individual shall pay, in addition to every other tax payable under this Act, a tax of 1% of net income.

Tax reduction 1987.

4(10)

There may be deducted from the tax otherwise payable by an individual under this Act for the 1987 taxation year an amount equal to the lesser of

(

a) the tax otherwise payable under this Act by the individual for the taxation year; and

(

b) the greater of

(i) $200. less 1% of net income, or

(ii) 5% of exemptions less 1% of net income.

Net income tax - 1988 et seq.

4(11)

For the 1988 and subsequent taxation years, an individual shall pay, in addition to every other tax payable under this Act, a tax of 2% of net income.

Net income surtax - 1988 et seq.

4(12)

For the 1988 and subsequent taxation years, an individual shall pay, in addition to every other tax payable under this Act, a surtax equal to the amount by which the tax payable under subsection (11) exceeds the greater of

(a) $600.; or

(b) $300. plus 5% of exemptions.

Tax reduction 1988 et seq.

4(13)

There may be deducted from the tax otherwise payable by an individual under this Act for the 1988 and subsequent taxation years an amount equal to the lesser of

(

a) the tax otherwise payable under this Act by the individual for the taxation year; and

(

b) the greater of

(i) $300. less 1% of net income, or

(ii) 5% of exemptions less 1% of net income.

Refund of net income tax.

4(14)

Where, in respect of a taxation year, an individual has paid the tax levied under subsections (9) or (11), and has claimed medical expenses in excess of $2,500., the treasurer may refund to the individual the tax paid under subsections (9) or (11) on the amount by which the medical expenses claimed exceed $2,500.

Definitions.

4(15)

In this section,

"exemption" means the total of those deductions authorized by

section 109 or by paragraphs 110(1)(e), (e.1), (

g) and (

h) of the federal Act and that have been claimed by the individual entitled to claim them in the individual's return filed in accordance with the federal Act; ("exemption")

"income earned in the taxation year in Manitoba" means the income earned in the taxation year in Manitoba as determined in accordance with regulations made under paragraph 120(4)(

a) of the federal Act; ("revenue gagné au Manitoba dans l'année d'imposition")

"income earned in the taxation year outside Manitoba" means income for the year minus income earned in the taxation year in Manitoba; ("revenu gagné hors du Manitoba dans l'année d'imposition")

"income for the year" means

(

a) in the case of an individual resident in Canada during part only of the taxation year in respect of whom

section 114 of the federal Act applies, the aggregate of

(

i) his income for the period in the year referred to in paragraph 114(

a) of the federal Act as determined in accordance with that paragraph and for the purposes of

Part II of the federal Act, and

(ii) his income for the portion of that year that is not included in the period or periods referred to in sub-clause (i), computed under paragraphs 115(1)(a), (

b) and (

c) of the federal Act as though such portion of the year were the whole taxation year;

(

b) in the case of an individual not resident in Canada at any time in the taxation year, his income for the year as computed under paragraphs 115(1)(a), (b), and (

c) of the federal Act;

(

c) in the case of any other individual, his income for the year as determined in accordance with, and for the purposes of, the federal Act; ("revenu pour l'année")

"individual" does not include an individual who was a member of the Canadian Forces during a taxation year to whom

section 10 applies; ("particulier")

"medical expenses" means the total of those deductions authorized by paragraph 110(l)(

c) of the federal Act and that have been claimed by the individual entitled to claim them in the individual's return filed in accordance with the federal Act; ("frais médicaux")

"net income" means the individual's net income for the year determined in accordance with Division B of

Part I of the federal Act, less income that is earned outside Manitoba as determined under

Part XXVI of the federal regulations; ("revenu net")

"tax payable under the federal Act" by an individual in respect of a taxation year means the amount determined under paragraph 120(4)(

c) of the federal Act for the year in respect of that individual. ("impôt payable en vertu de la loi fédérale")

Tables for tax and income.

4(16)

An individual who, under the federal Act pays tax computed in accordance with subsection 117(6) thereof, may, in lieu of the tax under subsection (1), pay a tax determined by reference to a table prepared in accordance with prescribed rules.

Deduction for foreign income tax.

4(17)

Where an individual resided in Manitoba on the last day of a taxation year and had income for the year that included income earned in a country other than Canada in respect of which non-business-income tax was paid by him to the government of a country other than Canada, he may deduct from the tax payable by him under this Act for that taxation year an amount equal to the lesser of

(

a) the amount, if any, by which any nonbusiness-income tax paid by him for the year to the government of such other country exceeds the amount claimed under the federal Act as a deduction for that taxation year under subsection 126(1) of that Act; and

(

b) that proportion of the tax otherwise payable under this Act for that taxation year, that

(

i) the aggregate of the taxpayer's incomes from sources in that country, excluding any portion thereof that was deductible by him for the year under subparagraph 110(1)(f)(

i) of the federal Act,

(

A) for that year, if

section 114 of the federal Act is not applicable, or

(

B) if

section 114 of the federal Act is applicable for the period or periods in the year referred to in paragraph (

a) thereof, on the assumption that

(

C) no businesses were carried on by him in that country,

(

D) no amount was deducted under subsection 91(5) of the federal Act in computing his income for the year; and

(

E) the individual's income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect thereof under paragraphs 122.3(l)(

c) and (

d) of the federal Act for the year;

is of

(ii) the taxpayers income earned in Manitoba

(

A) in the year, if

section 114 of the federal Act is not applicable, or

(

B) if

section 114 of the federal Act is applicable, in the period or periods of the year referred to in paragraph (

a) thereof, minus any amounts deductible by the individual under paragraph 110(l)(

d) or (f), paragraph 111(1)(

b) or

section 112 of the federal Act for the year or such period or periods, as the case may be.

Meaning of "tax payable".

4(18)

For the purposes of subsection (17), "tax payable" and "tax otherwise payable" means the amount that would, but for

section 120.1 of the federal Act, be the tax otherwise payable under this Act.

Meaning of non-business income tax.

4(19)

For the purposes of subsection (17) and clause 22(l)(b), the non-business income tax paid by a taxpayer to the government of a country other than Canada in respect of his income for a year is the non-business income tax paid by him to the government of that country in respect of that year as computed under paragraph 126(7)(

c) of the federal Act for the purposes of that Act.

Capital gains refund to mutual fund trust.

4(20)

Where an amount is to be refunded to a trust in respect of a taxation year pursuant to

section 132 of the federal Act, the minister shall, subject to subsection (23), at such time and in such manner as is provided in that section, refund to the trust an amount (in this

section referred to as its "capital gains refund" for the year) equal to that proportion of the amount of the refund for the year calculated under subsection 132(1) of the federal Act that

(

a) the percentage obtained by multiplying the percentage referred to in subsection (4) for the year times the percentage referred to in subsection 122(1) of the federal Act for the year;

is of

(

b) the percentage referred to in clause 132(4)(b)(i)(

B) of the federal Act.

Income outside Manitoba.

4(21)

For the purpose of computing the capital gains refund under subsection (20) for a trust in respect of a taxation year, where the trust had income earned in the taxation year outside Manitoba, the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (20), that the trust's income earned in the taxation year in Manitoba is of its income for the year.

Application to other liability.

4(22)

Instead of making a refund that might otherwise be made under subsection (20), the minister may, where the trust is liable or about to become liable to make any payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the trust of that action.

Definitions.

5(1)

In this section,

"dwelling unit cost" means

(

a) where municipal tax is paid in Manitoba for the taxation year by the principal taxpayer or his spouse in respect of the principal residence, the municipal tax so paid for that year,

(

b) where a rental or other payment for or in respect of the taxation year, other than payments mentioned in sub-clause (

c) or (d), is paid in Manitoba by the principal taxpayer or his spouse in respect of the principal residence, twenty per cent of the rental or other payment, excluding any payment made on account of meals or board, so paid for or in respect of that taxation year,

(

c) where the principal residence of a principal taxpayer is a mobile home, and the principal taxpayer or his spouse pays a municipal licence fee in respect of the mobile home for the taxation year, the municipal licence fee so paid, and

(

d) where neither the principal taxpayer nor his spouse pay municipal tax or a rental or a licence fee as mentioned in sub-clause (

c) in respect of his principal residence, but one or other of them pays for or in respect of the taxation year a service charge to the government, a local government district, or a person who manages and administers within the area in which the principal residence is situated services of the type normally managed and controlled by a municipal council, in respect of services provided by the government, local government district or that person, the service charge so paid; ("frais afférents au logement")

"income of the individual's family" for a taxation year means the aggregate of

(

a) the income for the year of the individual, and

(

b) the income for the year of his spouse, if the individual resided with his spouse at the end of December of the year; (" revenu de la famille du particulier")

"individual" does not include a trust or an estate as defined in subsection 104(1) of the federal Act; ("particulier")

"municipal tax" means taxes imposed whether for municipal purposes or school purposes, by a municipality, local government district or the Commissioner for Northern Affairs in respect of real property in Manitoba assessed as residential or farm property; ("taxe municipale")

"municipal tax deduction" where used in reference to the municipal tax deduction, in a taxation year, of a principal taxpayer means an amount equal to the lesser of

(a) $525. minus the lesser of $200. or 1% of the income of the individual's family in the taxation year, or

(

b) the dwelling unit cost in that taxation year in respect of the principal residence of the principal taxpayer, and where used in reference to the municipal tax deduction, in a taxation year, of a principal tax payer who is a senior citizen means an amount equal to the lesser of

(c) $625. minus the lesser of $300. or 1% of the income of the individual's family in the taxation year, or

(

d) the dwelling unit cost in that taxation year in respect of the principal residence of the principal taxpayer; ("déduction de taxe municipale")

"principal residence" means a residential dwelling unit, either owned or rented by the principal taxpayer or by his spouse, ordinarily occupied by the taxpayer in Manitoba in the taxation year, and designated by him in prescribed manner to be his principal residence in the taxation year and, in the case of a principal taxpayer who is a farmer, includes all land in Manitoba owned or rented by him in the taxation year and used by him in connection with his farming operations, but no principal taxpayer shall have more than one principal residence at any time; ("résidence principale")

"principal taxpayer" means a taxpayer who occupies or inhabits a principal residence in Manitoba on the last day of the taxation year, or, where a taxpayer occupies or inhabits a principal residence with his spouse, means one spouse or the other but not both, but does not include

(

a) any person under the age of 16 years on the last day of the taxation year, or

(

b) any person who resides in the principal residence of and is claimed as a dependant of another taxpayer in that taxation year, or (

c) a person entitled to claim the exemption from income tax granted in paragraph 149(1)(

a) or (

b) of the federal Act, or

(

d) an individual, on active military service as a member of the armed forces of a country other than Canada and who is not a Canadian citizen, or a member of the family of such an individual; ("contribuable principal")

"residential dwelling unit" includes any premises ordinarily occupied or inhabited by the taxpayer in a taxation year but does not include any premises

(

a) which have not been designated by the principal taxpayer as his principal residence, or

(

b) which are exempt from municipal taxes and in respect of which no grant in lieu of municipal taxes is made by the owner or by the government and which are designated either specifically or by class, under the regulations, as not being residential dwelling units; ("logement résidentiel")

"senior citizen" means a taxpayer who has attained the age of 65 years on or before the last day of the taxation year. ("personne âgée")

Separate residences.

5(2)

Where

(

a) in a taxation year a principal taxpayer and his spouse occupy and inhabit separate residences; and

(

b) the principal taxpayer and his spouse were not living separate and apart in the taxation year by reason of a court order of separation or an enforceable separation agreement;

the principal taxpayer shall be deemed to be occupying and inhabiting one of the residences with his spouse in that taxation year, and he may elect which of the residences is his principal residence.

Separation for medical reasons.

5(3)

Notwithstanding subsection (2), where, in a taxation year, a principal taxpayer and his spouse occupy and inhabit separate residences by reason of medical necessity, they shall be deemed, for the purposes of this section, to be separated by reason of an enforceable separation agreement.

Deductions in year of marriage.

5(4)

Where, in a taxation year,

(

a) two taxpayers who, but for becoming married to each other during the taxation year, would each be a principal taxpayer as defined in subsection (1) and would each be eligible for a municipal tax deduction as defined in subsection (1); and

(

b) neither of the two taxpayers described in clause (

a) claims an exemption for the other under

section 109 of the federal Act; each of the taxpayers may claim for that taxation year a municipal tax deduction as defined in subsection (1), and each of the municipal tax deductions so claimed may be based upon,

(

c) in the case of the principal taxpayer, the total of the dwelling unit cost in respect of his principal residence for that taxation year prior to the marriage and the dwelling unit cost of the principal residence of both taxpayers for that taxation year after the marriage; and

(

d) in the case of the spouse of the principal taxpayer, the dwelling unit cost in respect of the separate principal residence of that spouse for that taxation year prior to the marriage.

Deductions for property taxes.

5(5)

There may be deducted from the tax otherwise payable under this Act for the taxation year by an individual resident in Manitoba on the last day of the taxation year

(

a) where the individual is a principal taxpayer in the taxation year, an amount calculated in respect of the dwelling unit cost of the principal residence of the individual, which amount shall be equal to the lesser of

(i) $525. minus the lesser of $200. or 1% of the income of the individual's family in the taxation year, or

(ii) the dwelling unit cost in that taxation year in respect of his principal residence, or, where the individual is a principal taxpayer and a senior citizen in the taxation year, an amount calculated in respect of the dwelling unit cost of the principal residence of the individual, which amount shall be equal to the lesser of

(iii) $625. minus the lesser of $300. or 1% of the income of the individual's family in the taxation year, or

(iv) the dwelling unit cost in that taxation year in respect of his principal residence; and

(

b) an amount equal to 4% of the total of those deductions that are authorized by

section 109 of the federal Act or by paragraphs 110(1)(e), (e.1), (

g) and (

h) of that Act, and the amount, if any, by which the aggregate of amounts his spouse may claim as a deduction for the year under any of paragraphs 109(1)(h), 110(1)(

e) and 110(1)(

g) of that Act exceeds the amount, if any, by which his spouses' income for the year exceeds the amount allowable as a deduction under paragraph 109(1)(

c) of that Act and that have been claimed by the individual entitled to claim them in his return filed in accordance with the federal Act, minus 1% of the income of the individual's family in that taxation year, but the credit described in this clause may not be claimed

(

i) by an individual to whom reference is made in clause (a), (

c) or (

d) of the definition "principal taxpayer" in subsection 5(1), or

(ii) by an individual with respect to whom any other taxpayer has, in computing his taxable income under the federal Act, claimed in his return filed in accordance with the Act a deduction authorized by paragraph 109(1)(a), (b), (d), (e), (

f) or (

g) or 110(1)(e.1) or (

h) of that Act or any amount under

section 110.3 of that Act except amounts claimed under this

section by virtue of sections 110.1 and 110. 2 of that Act for any portion of the taxation year, or

(iii) by an individual who, on the last day of the taxation year, is an inmate of a penitentiary, gaol, correctional institution or penal institution and has been an inmate of a penitentiary, gaol, correctional institution or penal institution for six months or more during that taxation year.

Alternate deduction.

5(6)

Notwithstanding clause (5)(b), where, on the last day of the taxation year, an individual is a married individual, there may be deducted from the tax otherwise payable for that taxation year under this Act by that individual, an amount equal to 4% of the aggregate of those deductions for that taxation year that are authorized by

section 109 of the federal Act, except paragraph 109(a), or by paragraphs 110(1)(e), (e.1), (

g) and (

h) of the federal Act and that may be claimed by the individual and his spouse minus 1% of the income of the individual's family in that taxation year, but this deduction may not be claimed by an individual to whom reference is made in sub-clauses (5)(b)(i), (ii) or (iii).

Limitation on claims under subsec. (6).

5(7)

The deduction authorized under subsection (6) may be claimed by only one spouse of a married couple and is in lieu of any and all deductions that either spouse could otherwise claim under clause (5)(b).

Benefits payable on year of death.

5(8)

Where an individual resident in Manitoba on the day of his death who was a taxpayer dies in the taxation year, his legal representative may claim in a prescribed manner from the tax otherwise payable under this Act by the deceased individual the deductions which could have been claimed under subsection (5) by the deceased individual if the deceased individual had been alive on the last day of the taxation year.

More than one return in calendar year.

5(9)

Where an individual, or someone on his behalf, is entitled to file returns under the federal Act in respect of the individual's income for more than one taxation year ending in the same calendar year, the deductions to which the individual is entitled under subsection (5) are limited to the amounts that he would be entitled to deduct if his whole income for that calendar year were reported on one return under the federal Act and he was not entitled to file more than one return in respect of that calendar year.

Election under federal Act.

5(10)

No deductions may be claimed under subsection (5) in a return filed pursuant to an election made under subsection 70(2) of the federal Act.

Payment where tax less than deductions.

5(11)

Where the amount of tax otherwise payable under this Act for the taxation year by an individual resident in Manitoba on the last day of the taxation year who is a taxpayer is less than the deductions that he would be permitted to make under subsection (5) for that taxation year had he been required to pay tax under this Act for that taxation year equal to or exceeding the amount of those deductions, the treasurer may pay to the individual an amount equal to

(

a) the amount of those deductions calculated in accordance with subsection (5);

less

(

b) the amount of tax otherwise payable under this Act by the individual for that taxation year.

Recovery of deductions.

5(12)

Where an individual resident in Manitoba on the last day of the taxation year who is a taxpayer is not required to pay tax under this Act for that taxation year, the treasurer may pay to the individual an amount equal to the deductions he would have been permitted to make under subsection (5) for that taxation year had he been required to pay tax under this Act for that taxation year.

Return required for payments.

5(13)

An individual is not entitled to a payment under subsection (11) or (12) in respect of a taxation year unless, within four years after the end of that taxation year he files a return under

section 14 for the taxation year in respect of which the payment is made.

Authority to reimburse federal government

5(14)

Deductions in payments under agreement.

5(15)

Where an individual resident in Manitoba on the last day of the taxation year who was a taxpayer is permitted to make deductions or receive a payment in accordance with an agreement made under

section 61, the deduction or payment is in lieu of payments to which he would otherwise be entitled under subsection (11) or (12) and he is not entitled to payment under subsection (11) or (12)..

Payments from Consolidated Fund.

5(16)

Payments authorized under subsection (11), (12), (14) or (17) shall be paid from and out of the Consolidated Fund and may be shown in the appropriations and accounts of the government as amounts set off against receipts of taxes paid under this Act.

Deduction from municipal taxes.

5(17)

The Lieutenant Governor in Council may, by regulation, direct municipalities, local government districts and the Commissioner of Northern Affairs to deduct from municipal taxes imposed in any taxation year in respect of a principal residence of a principal taxpayer who is, or whose spouse is, the assessed owner of the principal residence an amount equal to the lesser of

(a) $325.; or

(

b) the municipal taxes imposed for that taxation year in respect of the principal residence;

and each municipality, each local government district and the Commissioner of Northern Affairs shall comply with the regulation.

Municipalities reimbursed by treasurer.

5(18)

The treasurer shall, in accordance with the regulations, pay to each municipality and local government district that deducts an amount in accordance with a direction made under subsection (17) the amounts deducted by them under subsection (17).

Restrictions on claims.

5(19)

Where an amount has been deducted from the municipal taxes imposed for a taxation year in respect of a principal residence of a principal taxpayer, the principal taxpayer may make a deduction under subsection (5) from the tax otherwise payable under this Act for the taxation year and is entitled to a payment under subsection (11) or (12) for a municipal tax deduction for the taxation year, but in each case only to the extent that the deduction under subsection (5) or payment under subsection (11) or (12), as the case may be, exceeds the deduction from municipal taxes under subsection (17).

More than one taxpayer.

5(20)

Where two or more principal taxpayers together occupy and inhabit the same principal residence in a taxation year, only one of them may make a claim for a municipal tax deduction under subsection (5) in respect of that principal residence for that taxation year.

Reduction for shelter allowance benefits.

5(21)

Where in a taxation year a principal taxpayer has received, or the spouse of the principal taxpayer has after becoming his spouse received, shelter allowance benefits as described in regulations under The Housing and Renewal Corporation Act, the amount of the deduction in respect of the dwelling unit cost to which the principal taxpayer would otherwise be entitled under subsection (5) shall be reduced by the aggregate amount of those benefits.

Return of municipal tax deduction.

5(22)

Where a municipal tax deduction under subsection (17) has been given on a property which is not the principal residence of a principal taxpayer who is, or whose spouse is, the assessed owner of the property, the assessed owner of the property shall return the full amount of the deduction to the treasurer within 90 days of the date of issue of the municipal tax bill.

Interest payable.

5(23)

Where an amount in respect of a municipal tax deduction which is required to be returned under subsection (22) has not been returned within 90 days of the date of issue of the municipal tax bill, interest at the prescribed rate shall be payable on the full amount of the deduction from the date of issue of the municipal tax bill.

Demand by treasurer.

5(24)

Where an amount required to be returned under subsection (22) by the assessed owner of a property has not been so returned, the treasurer may demand, by registered letter or by a letter served personally, that the amount to be returned under subsection (22), together with the interest payable under subsection (23) be so returned within 30 days.

Penalty.

5(25)

Any person who fails to comply with a demand from the treasurer under subsection (24) within 30 days, is guilty of an offence and is liable to a penalty of $5. for each day of default, after the expiration of the 30 days, to a maximum of $500.

Penalty for fraudulent claims.

5(26)

Every person who knowingly makes, participates in, assents to, or acquiesces in the making of a false or misleading statement in a return, certificate, form or statement filed or made as required by or under this Act or the regulations for the purposes of claiming an amount in respect of a deduction under subsections (6) or (7), or a refund under subsections (11) or (12), which is greater than the amount to which the individual is entitled under this section, is guilty of an offence and is liable to a fine of not less than $200. and not more than $1,000. or to imprisonment for a term not exceeding six months or to both, and in addition, shall be ordered by the magistrate to pay to the treasurer the amount by which the deduction or refund exceeds the amount to which the individual is entitled under this

section together with interest at the prescribed rate on or before such date as the magistrate may order.

Liability of officers and directors.

5(27)

Where a corporation is convicted of an offence under subsection (26), any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in, or participated in the offence is guilty of an offence and is liable to the fines, penalties and punishment prescribed under subsection (26).

Definitions.

6(1)

In this section,

"individual" means an individual who is the owner or holder of the mineral rights in respect of which mineral taxes have been paid by him or on his behalf; ("particulier")

"mineral taxes" means the taxes assessed, levied and paid under The Oil and Gas Production Tax Act; ("taxes sur les minéraux")

"resource allowance" means the amount that a taxpayer may deduct under paragraph 20(l)(v.

l) of the federal Act in computing his income for a taxation year; ("déduction en matière de ressources")

"resource profits" has the meaning assigned to it by the federal regulations; ("bénéfices relatifs à des ressources")

"revised taxable income" means the aggregate of the taxable income of an individual in a taxation year, plus any resource allowance claimed by him in that year, minus any mineral taxes paid by him or on his behalf in respect of that year. ("revenu imposable révisé")

Rebate of taxes.

6(2)

Where in a taxation year an individual has included in the computation of his taxable income an amount in respect of resource profits earned in the province and for which he has claimed a resource allowance, the individual may make an application to the treasurer for a rebate of the tax payable under this Act computed without reference to

section 120.1 of the federal Act on the amount by which his taxable income under this Act exceeds his revised taxable income.

Form of application.

6(3)

An application under subsection (2) shall be made on a form and in a manner prescribed by the regulations or, where a collection agreement is entered into, on a form and in a manner prescribed by regulations under the federal Act.

CORPORATION INCOME TAX

Calculation of tax payable by corporation.

7(1)

The tax payable by a corporation under

section 3 is 17% of the corporation's taxable income earned in the year in Manitoba.

Definition.

7(2)

For the purpose of this

section "taxable income earned in Manitoba on which a small business deduction is allowed under

section 125 of the federal Act" shall be deemed to bear the same relationship to the taxable income earned in Canada on which a small business deduction is allowed under that

section as taxable income earned in Manitoba bears to taxable income earned in Canada.

Small business deduction.

7(3)

There may be deducted from the tax otherwise payable under this Act by a corporation that is allowed a small business deduction under

section 125 of the federal Act, an amount equal to 7% of the taxable income earned in Manitoba on which a small business deduction is allowed under subsection 125(1) of the federal Act.

Deemed deduction.

7(4)

For the purposes of this section, a credit union which is allowed a deduction from the tax payable under the federal Act by virtue of subsection 137(3) of the federal Act, shall be deemed to have been allowed a small business deduction under subsection 125(1) of the federal Act (and shall be eligible for a small business deduction under subsection (3)) and any references in this

section to the small business deduction allowed under subsection 125(1) of the federal Act shall be deemed to include reference to deductions under subsection 137(3) of the federal Act.

Definition.

7(5)

For the purposes of this section,

section 8 and subsection 9(2) "taxable income earned in the year in Manitoba" means the taxable income earned in the year in Manitoba by a corporation as determined in accordance with regulations made under paragraph 124(4)(

a) of the federal Act.

Foreign tax credit for corporations.

8(1)

Where the income for a taxation year of a corporation that maintained a permanent establishment in Manitoba at any time in the taxation year includes income described in sub-paragraph 126(l)(b)(

i) of the federal Act from sources in a country other than Canada (in this

section referred to as "foreign investment income") and where the corporation has claimed a deduction under subsection 126(1) of the federal Act in respect of the foreign investment income, the corporation may deduct from the tax for the year otherwise payable under this Act an amount equal to the lesser of

(a) 17% of the product of

(

i) the foreign investment income of the corporation for the year from sources in the country, and

(ii) that proportion of the taxable income earned in the year in Manitoba by the corporation; and

(

b) that proportion of the amount by which such part of any non-business-income tax paid by the corporation for the year to the government of a country other than Canada (except any such tax or part thereof that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation) exceeds the amount of the deduction claimed by the corporation under subsection 126(1) of the federal Act that

(

i) the taxable income earned in the year in Manitoba by the corporation, is of

(ii) the aggregate of the taxable income earned in the year in each province by the corporation as determined in accordance with regulations made under paragraph 124(4)(

a) of the federal Act.

Separate credit for each foreign country.

8(2)

Where the income of a corporation for a taxation year includes income from sources in more than one country other than Canada, subsection (1) shall be read as providing for separate deductions in respect of each of the countries other than Canada.

Capital gains refund.

9(1)

Where an amount is to be refunded to a corporation in respect of a taxation year, pursuant to

section 131 of the federal Act, the minister shall, subject to subsection (2), at such time and in such manner as is provided in that

section refund to the corporation an amount (in this

section referred to as its "capital gains refund" for the year) equal to that proportion of the amount of the refund for the year calculated under subsection 131(2) of the federal Act that

(

a) the percentage referred to in subsection 7(1); is of

(

b) the percentage referred to in clause 131(6)(d)(i)(

B) of the federal Act.

Income outside Manitoba.

9(2)

For the purpose of computing the capital gains refund under subsection (1) for a corporation in respect of a taxation year, where

(

a) the corporation's taxable income earned in the year in Manitoba;

is less than

(

b) the corporation's taxable income for the year; the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (1) that the amount determined under clause (

a) is of the amount determined under clause (b).

Application to other liability.

9(3)

Instead of making a refund that might otherwise be made under subsection (1), the minister may, where the corporation is liable or about to become liable to make any payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the corporation of that action.

DIVISION III

SPECIAL CASES

Political contributions.

10(1)

There may be deducted from the tax otherwise payable by a taxpayer under this Act for a taxation year in respect of the aggregate of contributions, other than donations in kind, made by the taxpayer in that year to registered political parties and registered candidates (in this

section referred to as "the amount contributed")

(a) 75% of the amount contributed if the amount contributed does not exceed $100.;

(b) $75. plus 50% of the amount by which the amount contributed exceeds $100. if the amount contributed exceeds $100. but does not exceed $550.; and

(

c) if the amount contributed exceeds $550., the lesser of

(i) $300. plus 33 1/3% of the amount by which the amount contributed exceeds $550.; or

(ii) $500.;

if payment of each amount that is included in the amount contributed is proven by filing receipts with the treasurer signed by the chief financial officer of the registered political party or of the registered candidate, as the case may be, that contain prescribed information.

Interpretation.

10(2)

For the purposes of this

section "chief financial officer", "contributions", "donations in kind", "registered candidate" and "registered political party" have the meanings assigned to them under The Elections Finances Act.

Meaning of "tax otherwise payable".

10(3)

For the purposes of this section, "tax otherwise payable" means the amount that would, but for

section 120.1 of the federal Act, be the tax otherwise payable under this Act.

Manitoba investment tax credit.

11(1)

There may be deducted from the tax otherwise payable under this Act by a taxpayer for a taxation year an amount not exceeding the lesser of

(

a) his investment tax credit at the end of the year; and

(

b) the aggregate of

(i) $15,000., and

(ii) 1/2 the amount, if any, by which the tax otherwise payable by him under this Act for the year exceeds $15,000.

Definitions.

11(2)

In this section,

"investment tax credit" of a taxpayer at the end of a taxation year means the amount, if any, by which the aggregate of

(

a) an amount equal to 6% of the aggregate of all amounts each of which is the capital cost to him of a qualified property acquired by him in the year, determined without reference to subsection 13(7.1) of the federal Act,

(

b) an amount equal to 6% of the aggregate of all amounts each of which is the capital cost to him of a qualified property acquired by him in any of the seven taxation years immediately preceding or the three taxation years immediately following that year, determined without reference to subsection 13(7.1) of the federal Act,

(

c) an amount equal to the aggregate of all amounts each of which is an amount required by subsection (3) or (4) to be added in computing his investment tax credit at the end of the year, and

(

d) the aggregate of all amounts each of which is an amount required by subsection (3) or (4) to be added in computing his investment tax credit at the end of any of the seven taxation years immediately preceding or the three taxation years immediately following that year,

exceeds

(

e) the aggregate of all amounts each of which is that portion of the amount deducted under subsection (1) from the tax otherwise payable under this Act by the taxpayer for a preceding taxation year that is in respect of property acquired in the year or in the seven taxation years immediately preceding or the two taxation years immediately following the year; ("crédit d'impôt à l'investissement")

"manufacturing or processing" has the meaning assigned by paragraph 125.l(3)(

b) of the federal Act and includes "qualified activities" as defined by federal regulations made for the purposes of paragraph 125. l(3)(

a) of the federal Act; ("fabrication ou transformation")

"qualified property" of a taxpayer means property acquired by the taxpayer after April 24, 1984 and before 1987 that is qualified property within the meaning assigned by the definition thereof in subsection 127(9) of the federal Act that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer and that is

(

a) to be used by him in Manitoba primarily for the purpose of manufacturing or processing of goods for sale or lease, or

(

b) to be leased by him to a lessee (other than a person exempt from tax under

section 149 of the federal Act) who can reasonably be expected to use the property in Manitoba primarily for the purpose of manufacturing or processing of goods for sale or lease, but this subparagraph does not apply in respect of property that is machinery and equipment unless the property is leased by the taxpayer in the ordinary course of carrying on a business in Manitoba and the principal business of the taxpayer is manufacturing property that he sells or leases; ("biens admissibles")

Credit - trust beneficiary.

11(3)

Credit - partnership.

11(4)

Where in a particular taxation year of a taxpayer who is a member of a partnership an amount would, if the partnership were a taxpayer, be determined in respect of the partnership under clause (

a) or (

c) of the definition "investment tax credit" in subsection (2) for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the taxpayer's share thereof is the amount required to be added in computing the investment tax credit of the taxpayer at the end of that particular taxation year.

Credit - amalgamation.

11(5)

Where after April 24, 1984 there has been an amalgamation within the meaning of subsection 87(1) of the federal Act and one or more of the predecessor corporations had an investment tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes only of determining the investment tax credit of the new corporation for any taxation year preceding any taxation year of the new corporation, the new corporation shall be deemed to be the same corporation as, and a continuation of, each such predecessor corporation.

Credit - winding-up.

11(6)

Where after April 24, 1984 there has been a winding-up to which subsection 88(1) of the federal Act applies and the subsidiary had an investment tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes only of determining the investment tax credit of the parent for any taxation year preceding any taxation year of the parent, the parent shall be deemed to be the same corporation as, and a continuation of, the subsidiary.

Individuals ineligible.

11(7)

The investment tax credit described in this

section may not be claimed by an individual to whom

section 13 applies.

Persons exempt.

No tax is payable under this Act by any person in respect of a period when that person

(

a) was exempt from tax by virtue of subsection 149(1) of the federal Act; or

(

b) was a non-resident-owned investment corporation;

and any definition or description in the federal Act applying to any such person applies, with such modifications as the circumstances require, for the purposes of this Act unless otherwise provided.

FARMER'S AVERAGING PROVISION

Tax payable on averaging.

13(1)

Where an individual whose chief source of income has been farming or fishing during a taxation year (in this

section referred to as the "year of averaging") has filed an election in accordance with subsection 119(1) of the federal Act for the year of averaging, the tax payable under this Part for the year of averaging is an amount determined by the following rules:

(

a) Determine the amount (in this

section referred to as the "average tax") for each year in the averaging period (which, in this section, has the meaning given to that expression under

section 119 of the federal Act) equal to the tax that would be payable under the federal Act, within the meaning of

section 4 of this Act, if the taxable income for the year were the average net income for the year within the meaning of paragraph 119(1)(

c) of the federal Act.

(

b) Determine the amount (in this

section referred to as the " provincial tax") for each year in the averaging period equal to the tax that would be payable under this Part for the year if the tax that would be payable under the federal Act for the year, within the meaning of

section 4 of this Act, were the average tax for the year.

(

c) Deduct from the aggregate of the provincial taxes as determined under clause (

b) for the years in the averaging period the aggregate of the taxes payable under this Part for the preceding years (which, in this section, has the meaning given to that expression under

section 119 of the federal Act).

(

d) The remainder obtained under clause (

c) is the tax payable under this Part for the year, of averaging.

Application of subsec. (1).

13(2)

Subsection (1) applies only in the case of an individual whose chief source of income throughout the averaging period was from farming or fishing.

Farmer averaging under federal Act.

13(3)

For the purposes of this Act, where the tax payable by an individual under this Part for the year of averaging would, except for subsection (2), be an amount determined under subsection (1), the tax that would have been payable by the individual under the federal Act for the year of averaging, within the meaning of

section 4 of this Act, had no election been made by him under

section 119 of the federal Act for that year, shall be deemed to be the tax payable under the federal Act by the individual for the year of averaging.

Overpayment on averaging.

13(4)

Where this section, except subsection (3) thereof, is applicable to the computation of a taxpayer's tax for a taxation year and the aggregate of the taxes payable under this Part for the preceding years exceeds the aggregate of the provincial taxes as determined under clause (l)(

b) for the years in the averaging period, the excess shall be deemed to be an overpayment made when the notice of assessment for the year of averaging was mailed.

Application of

Part I in case of averaging.

13(5)

The provisions of this Part relating to the assessment of tax, interest, and penalties apply with such modifications as the circumstances require to an assessment whereby, for the purposes of this section, it is determined by the treasurer that no tax is payable under this Part for the year of averaging or that an overpayment has been made as described in subsection (4).

Revoking election to average.

13(6)

Where an election for a year of averaging filed under subsection 119(1) of the federal Act has been revoked by the taxpayer in accordance with subsection 119(5) of the federal Act, subsection (1) of this

section is not applicable in determining the tax payable under this Part for the year of averaging.

DIVISION IV

RETURNS, ASSESSMENTS, PAYMENT AND APPEALS RETURNS

Returns required.

14(1)

A return for each taxation year in the case of a corporation (other than a corporation that was a registered charity throughout the year) and for each taxation year for which a tax is payable, or would be payable if this Part were read without reference to sections 127.2 and 127.3 of the federal Act, in the case of an individual, shall, without notice or demand therefor, be filed with the treasurer in the prescribed form and containing the prescribed information,

(

a) in the case of a corporation, by or on behalf of the corporation within six months from the end of the year;

(

b) in the case of a person who has died without making the return, by his legal representatives, within six months from the day of death;

(

c) in the case of an estate or trust, within 90 days from the end of the year;

(

d) in the case of any other person, on or before April 30 in the next following year, by that person or, if he is unable for any reason to file the return, by his guardian, curator, tutor, committee, or other legal representative; or

(

e) in a case where no person described in clause (a), (

b) or (

d) has filed the return, by such person as is required by notice in writing from the treasurer to file the return, within such reasonable time as is specified in the notice.

Filing return on demand.

14(2)

Whether or not he is liable to pay tax under this Act for a taxation year, and whether or not a return has been filed under subsection (1) or (3), every person shall, on demand by registered letter from the treasurer, file, within such reasonable time as may be stipulated in the registered letter, with the treasurer, in the prescribed form and containing the prescribed information, a return for the taxation year designated in the letter.

Returns from trustees.

14(3)

Every trustee in bankruptcy, assignee, liquidator, curator, receiver, trustee, or committee and every agent or other person administering, managing, winding-up, controlling, or otherwise dealing with the property, business, estate, or income of a person who has not filed a return for a taxation year as required by this

section shall file a return in the prescribed form for that year in respect of that person.

Return where partner dies.

14(4)

Where a partner or an individual who is a proprietor of a business died after the close of a fiscal period but before the end of the calendar year in which the fiscal period closed, a separate return of the taxpayer's income as a member of the partnership or as a proprietor of the business, after the close of the fiscal period to the time of death may be filed and, if such a separate return is filed, the tax under this Part shall be paid on the taxpayer's income as such member or proprietor after the close of the fiscal period to the time of death as if that income were the income of another person.

ESTIMATE OF TAX

Estimate of tax.

Every person required by

section 14 to file a return shall in the return estimate the amount of taxes payable.

ASSESSMENT

Examination of return.

16(1)

The treasurer shall, with all due despatch, examine each return required to be filed under this Act and assess the tax for the taxation year and the interest and penalties, if any, payable.

Notice of assessment

16(2)

After examination of a return, the treasurer shall send a notice of assessment to the person by whom the return was filed.

Effect of incorrect assessment

16(3)

Liability for tax under this Act is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

Re-assessment

16(4)

The treasurer may at any time assess tax, interest or penalties under this Act or notify in writing any person by whom a return for a taxation year has been filed that no tax is payable for a taxation year and may

(

a) at any time, if the taxpayer or some person filing the return

(

i) has made any misrepresentation that is attributable to neglect, carelessness or wilful default or has committed any fraud in filing the return or in supplying any information under this Act, or

(ii) has filed with the treasurer a waiver in the prescribed form within three years from the day of mailing of a notice of an original assessment or a notification that no tax is payable for a taxation year, and

(

b) within three years from the day referred to in sub-clause (a)(ii) in any other case;

re-assess or make additional assessments or assess tax, interest or penalties as the circumstances require.

Limitation on re-assessment.

16(5)

Notwithstanding subsection (4), there shall not be included in computing the income of a taxpayer, for the purposes of any reassessment, additional assessment or assessment of tax, interest or penalties under this Part that is made after the expiration of three years from the day referred to in sub-clause (4)(a)(ii), any amount that was not included in his income for the purposes of an assessment of tax under this Part made before the expiration of three years from that day and

(

a) in respect of which the taxpayer establishes that the failure so to include it did not result in any misrepresentation that is attributable to neglect, carelessness or wilful default or from any fraud in filing a return of his income or in supplying any information under this Act; or

(

b) that the taxpayer establishes cannot reasonably be regarded as relating to a matter specified in a waiver filed by the taxpayer with the treasurer, in the form and within the time referred to in subsection (4), with respect to a taxation year to which the re-assessment, additional assessment or assessment of tax, interest or penalties, as the case may be, relates.

Re-assessment where notice of revocation.

16(6)

Where the treasurer would, but for this subsection, be entitled to reassess, make an additional assessment or assess tax, interest or penalties by virtue only of the filing of a waiver under sub-clause (4)(a)(ii), the treasurer may not make such reassessment, additional assessment or assessment after the day that is six months after the date on which a notice of revocation of the waiver in prescribed form is filed.

Re-assessment where collection agreement

16(7)

Where a collection agreement is entered into, notwithstanding that more than four years have elapsed since the day to which reference is made in sub-clause (4)(a)(ii), the minister shall re-assess or make additional assessments, or assess tax, interest, or penalties, as the circumstances require, where the tax payable under

Part I of the federal Act is re-assessed.

Assessment where amendment filed.

16(8)

Where a taxpayer has filed the return required by

section 14 for a taxation year and, within one year from the day on or before which he was required by

section 14 to file the return for that year, has amended the return by filing with the treasurer a prescribed form claiming a deduction from income under

section 111 of the federal Act in respect of non-capital losses, net capital losses or restricted farm losses sustained in the taxation year immediately following that year, the treasurer shall re-assess the taxpayer's tax for the year.

Effect of return.

16(9)

The treasurer is not bound by a return or information supplied by or on behalf of a taxpayer and, in making an assessment, may, notwithstanding a return or information so supplied or if no return has been filed, assess the tax payable under this Act.

Validity of assessment.

16(10)

An assessment shall, subject to being varied or vacated on an objection or appeal under this Act and subject to a re-assessment, be deemed to be valid and binding notwithstanding any error, defect, or omission therein or in any proceeding under this Act relating thereto.

PAYMENT OF TAX

Deduction at source.

17(1)

Every person paying at any time in a taxation year

(

a) salary, wages or other remuneration; or

(

b) a superannuation or pension benefit; or

(

c) a retiring allowance; or

(

d) an amount upon or after the death of an officer or employee, in recognition of his service, to his legal representative or widow or to any other person whatsoever; or

(

e) an amount as a benefit under The Unemployment Insurance Act, (Canada); or

(

f) an amount as a benefit under a supplementary unemployment benefit plan; or

(

g) an annuity payment; or

(

h) fees, commissions, or other amounts for services; or

(

i) a payment under a deferred profit sharing plan or a plan to which reference is made in subsection 147(15) of the federal Act as a revoked plan; or

(

j) a training allowance under the National Training Act (Canada); or

(

k) a payment out of or under a registered retirement savings plan or a plan referred to in subsection 146(12) of the federal Act as an "amended plan"; or

(

l) an amount as, on account or in lieu of payment of, or in satisfaction of, proceeds of the surrender, cancellation or redemption of an income averaging annuity contract; or

(

m) a payment out of or under a registered retirement income fund; or

(

n) a termination payment; or

(

o) one or more amounts to an individual who has elected for the year in prescribed form in respect of all such amounts;

shall deduct or withhold therefrom such amount as may be determined in accordance with prescribed rules and shall, at such time as may be prescribed, remit that amount to the treasurer on account of the payee's tax for the year under this Act.

Alternate deduction where undue hardship.

17(2)

Where the treasurer is satisfied that the deducting or withholding of the amount otherwise required to be deducted or withheld under subsection (1) from a payment would cause undue hardship, he may determine a lesser amount and that amount shall be deemed to be the amount determined under that subsection as the amount to be deducted or withheld from that payment.

Election to increase withholding.

17(3)

Where a taxpayer so elects in a prescribed manner and prescribed form, the amount required to be deducted or withheld under subsection (1) from any payment to him shall be deemed to be the aggregate of

(

a) the amount, if any, otherwise required to be deducted or withheld under that subsection from that payment; and

(

b) the amount specified by the taxpayer in that election with respect to that payment or with respect to a class of payments that includes that payment.

Payments by trustee.

17(4)

For the purposes of subsection (1), where a trustee who is administering, managing, distributing, winding up, controlling or otherwise dealing with the property, business, estate or income of another person authorizes or otherwise causes a payment referred to in subsection (1) to be made on behalf of that other person, the trustee shall be deemed to be a person making the payment and the trustee and that other person shall be jointly and severally liable in respect of the amount required under subsection (1) to be deducted or withheld and to be remitted on account of the payment.

Definition of "trustee".

17(5)

In subsection (4), "trustee" includes a liquidator, receiver, receiver-manager, trustee in bankruptcy, assignee, executor, administrator, sequestrator or any other person performing a function similar to that performed by any of those persons.

Payment of balance by wage earners.

17(6)

Where amounts have been deducted or withheld under this

section from the remuneration or other payments received by an individual in a taxation year, if the total of such amounts is equal to or greater than 3/4 of the tax payable for the year, he shall on or before April 30 in the next year, pay to the treasurer the remainder of his tax for the year as estimated under

section 15.

Deductions deemed received.

17(7)

When an amount has been deducted or withheld under subsection (1), it shall, for all the purposes of this Act, be deemed to have been received at that time by the person to whom the remuneration, benefit, payment, fees, commissions, or other amounts were paid.

Payments by farmers and fishermen.

18(1)

Every individual whose chief source of income is farming or fishing other than an individual to whom subsection 17(6) applies shall pay to the Minister of Finance

(

a) on or before December 31 in each taxation year, 2/3 of

(

i) the amount estimated by him under

section 15 to be his tax payable under this Act for the year, or

(ii) his tax payable under this Act for the immediately preceding year; and

(

b) on or before April 30 in the next following year, the remainder of the tax as estimated under

section 15.

Payment where collection agreement

18(2)

Where a collection agreement is entered into, an individual to whom subsection (1) applies shall pay an amount under clause (

a) thereof computed in respect of the same year as that in respect of which the amount is computed that he is liable to pay under paragraph 155(l)(

a) of the federal Act.

Other payments by individuals.

19(1)

Every individual other than one to whom subsection 17(6) or

section 18 applies shall pay to the Minister of Finance

(

a) on or before March 31st, June 30th, September 30th and December 31st respectively, in each taxation year, an amount equal to 1/4 of

(

i) the amount estimated by him under

section 15 to be his tax payable under this Act for the year, or

(ii) his tax payable under this Act for the immediately preceding year; and

(

b) on or before April 30th in the next following year, the remainder of the tax as estimated under

section 15.

Payment where collection agreement.

19(2)

Where a collection agreement is entered into, an individual to whom subsection (1) applies shall pay an amount under clause (

a) thereof computed in respect of the same year as that in respect of which the amount is computed that he is liable to pay under paragraph 156(l)(

a) of the federal Act.

Definition.

19(3)

For the purposes of

section 18 and this section, "tax payable under the federal Act" for a taxation year has the meaning given that expression in subsection 4(10), whether that taxation year is before or after the coming into force of this Act.

Waiver of instalments.

Where

section 156.1 of the federal Act applies to an individual in respect of a taxation year, the requirement for payment by instalments under sections 18 and 19 of this Act are not applicable and the individual shall pay to the Minister of Finance his estimated tax payable on or before April 30th of the following year.

Payment by corporations.

21(1)

Every corporation shall, during the 15 month period ending three months after the close of each taxation year, pay to the Minister of Finance in respect of its tax payable under this Act

(

a) either

(

i) on or before the last day of each of the first 12 months in that period, an amount equal to 1/12 of its tax payable for the year as estimated by it under

section 15,

(ii) on or before the last day of each of the first two months in that period, an amount equal to 1/12 of its second instalment base for the year, and on or before the last day of each of the next following 10 months in that period, an amount equal to 1/10 of the amount remaining after deducting the amount computed pursuant to this subclause in respect of the first two months in the period from, its first instalment base for the year, or

(iii) on or before the last day of each of the first 12 months in that period, an amount equal to 1/12 of its first instalment base for the year;

(

b) the remainder of the tax as estimated by it under

section 15

(

i) on or before the last day of the period, where an amount was deducted by virtue of

section 125 of the federal Act in computing the tax payable under

Part I of that Act by the corporation for the year or for its immediately preceding taxation year, or

(ii) on or before the last day of the 14th month of the period in any other case.

Payment where collection agreement

21(2)

Where a collection agreement is entered into, a corporation shall pay an amount computed with reference to

(

a) sub-clause (1)(a)(

i) if the corporation pays an amount computed under sub-clause 157(1)(a)(

i) of the federal Act;

(

b) sub-clause (1)(a)(ii) if the corporation pays an amount computed under sub-clause 157(1)(a)(iii) of the federal Act; and

(

c) sub-clause (1)(a)(iii) if the corporation pays an amount computed under sub-clause 157(1)(a)(ii) of the federal Act.

Payment at end of prepayment periods.

21(3)

Where subsection 157(2) of the federal Act is applicable to a corporation and it makes a payment pursuant thereto, the corporation shall, instead of paying the instalments required by subsection (1), pay to the treasurer, at the end of the period to which reference is made in subsection (1), the whole of the tax as estimated under

section 15.

Alternate payment.

21(4)

Where the tax payable under this Part (computed without reference to sections 127.2 and 127.3 of the federal Act) by a corporation for a taxation year or its first instalment base for the year is not more than $1,000., the corporation may, instead of paying the instalments required by clause (1)(

a) for the year, pay to the treasurer, pursuant to clause (1)(b), all of its tax as estimated by it under

section 15 for the year.

Definition.

21(5)

For the purposes of this section, "taxable income earned in the year in Manitoba" for a taxation year has the meaning given that expression in subsection 7(6).

Definitions.

21(6)

In this section, the expressions "first instalment base" and "second instalment base" of a corporation for a taxation year have the meanings prescribed by the federal regulations for the purposes of subsection 157(4) of the federal Act, with such modifications as the circumstances require.

Payment of balance demanded.

22(1)

The taxpayer shall, within 30 days from the day of mailing of the notice of assessment, pay to the treasurer any part of the assessed tax, interest, and penalties then remaining unpaid, whether or not an objection to or appeal from the assessment is outstanding.

Payment forthwith required.

22(2)

Where, in the opinion of the treasurer, a taxpayer is attempting to avoid payment of taxes, the treasurer may direct that all taxes, penalties, and interest be paid forthwith upon assessment.

Certain provisions of federal Act

Sections 159 and 160, subsection 104(2), paragraph 104(23)(

e) and subsection 70(2) of the federal Act apply, with such modifications as the circumstances require, in respect of the payment of tax under this Act for a taxation year by a taxpayer subject to tax under this Act to whom those provisions apply in respect of tax payable under the federal Act for the same taxation year.

INTEREST

Payment of interest required.

24(1)

Where at any time after the day on or before which a return of a taxpayer's income was required to be filed under this Act for a taxation year

(

a) the amount of the tax payable by the taxpayer for the year under this Act;

exceeds

(

b) the aggregate of all amounts each of which is an amount paid at or before that time on account of the tax payable by the taxpayer and applied as at that time by the treasurer against the taxpayer's liability for an amount payable under this Act for the year;

the person liable to pay the tax shall pay interest on such excess, for the period after April 19, 1983, during which it is outstanding, at such rates per annum as are prescribed and are in effect from time to time during the period for the purposes of subsection 161(1) of the federal Act.

Interest on instalments.

24(2)

In addition to the interest payable under subsection (1), where a taxpayer, being required by this Act to pay a part or instalment of tax, has failed to pay all or any part thereof as required, he shall, on payment of the amount he failed to pay, pay interest at the rate per annum prescribed for the purposes of subsection 161(1) of the federal Act from the day on or before which he was required to make the payment to the day of payment or the beginning of the period in respect of which he is liable to pay interest thereon under subsection (1), whichever is the earlier.

Exception.

24(3)

Where the aggregate of all amounts each of which is an amount of interest payable by a taxpayer under subsection (2) or under subsection 161(2) of the federal Act does not exceed $25. for a taxation year, the treasurer shall not assess such interest.

Interest payable by certain corporations.

24(4)

In addition to the interest payable under subsection (1), where a corporation that paid tax under subsection 21(3) had a taxable income for the taxation year of more than $10, 000., it shall, forthwith after assessment, pay an amount equal to 3% of the tax payable under this Act for the taxation year.

Computation of interest on instalments.

24(5)

For the purposes of subsection (2), where a taxpayer is required to pay a part or instalment of tax for a taxation year as estimated by him with reference to a preceding year or with reference to the taxation year, he shall be deemed to have been liable to pay part or instalment computed by reference to his tax for

(

a) the preceding year; or

(

b) the taxation year;

whichever is the lesser.

Instalments where collection agreement.

24(6)

Notwithstanding subsection (5), where a collection agreement is entered into, for the purposes of subsection (2) the taxpayer shall be deemed to have been liable to pay a part or instalment computed by reference to his tax for the same year as the year by reference to which the part or instalment that he is deemed by subsection 161(4) of the federal Act to be liable to pay was computed.

Interest on Wheat Board payments.

24(7)

Notwithstanding any other provision in this section, no interest is payable in respect of the amount by which the tax payable by a person is increased by a payment made by the Canadian Wheat Board on a participation certificate previously issued to him until 30 days after the payment is made.

Income in other countries.

24(8)

Where the income of a taxpayer for a taxation year, or part thereof, is from sources in another country, and the taxpayer, by reason of monetary or exchange restrictions imposed by the law of that country, is unable to transfer it to Canada, the treasurer, if he is satisfied that payment as required by this Act of the whole of the additional tax under this Act for the year reasonably attributable to income from sources in that country would impose extreme hardship on the taxpayer, may postpone the time for payment of the whole or a part of that additional tax for a period to be determined by the treasurer; but no such postponement may be granted if any of the income for the year from sources in that country has been

(

a) transferred to Canada; or

(

b) used by the taxpayer for any purpose whatsoever, other than payment of income tax to the government of that other country on income from sources therein; or

(

c) disposed of by him;

and no interest is payable under this

section in respect of that additional tax, or part thereof, during the period of postponement.

No payment of interest on increased tax.

24(9)

Notwithstanding any other provision in this section, where the tax payable under this Act by a taxpayer for a taxation year is increased by virtue of an adjustment of an income or profits tax payable by him to the government of a country other than Canada or to the government of a state, province or other political subdivision of any such country, no interest is payable, in respect of such increase in his tax payable, for the period ending 90 days after the day on which he is first notified of the amount of the adjustment.

Interest * deductions for losses.

24(10)

Where a taxpayer is entitled to deduct under

section 111 of the federal Act in computing his taxable income for a taxation year an amount in respect of a loss sustained in the taxation year immediately following the taxation year (hereinafter in this subsection referred to as "the loss year"), for the purpose of computing interest under subsection (1) or (2) on the tax or a part or instalment of the tax for the taxation year for any portion of the period in respect of which the interest is payable on or before the last day of the loss year, the tax payable for the taxation year shall be deemed to be the amount that it would have been if the taxpayer were not entitled to deduct any amount under

section 111 of the federal Act in respect of that loss.

Interest on penalty.

24(11)

Where a taxpayer is required by this Part to pay a penalty and fails to pay all or any part thereof as required, he shall pay to the Minister of Finance interest at the rate prescribed for the purposes of subsection 161(11) of the federal Act on the amount he failed to pay computed

(

a) in the case of a penalty payable by virtue of subsection 25(1), (2) or (3), or 26(1) or (2), from the day on or before which the taxpayer's return of income for the taxation year in respect of which the penalty is payable was, or would have been if tax under this Part were payable by him for the year, required to be filed to the day of payment; and

(

b) in the case of a penalty payable by virtue of any other provision of this Part, from the day of mailing of the notice of original assessment of the penalty to the day of payment.

PENALTIES

Penalty for failure to file return.

25(1)

Every person who fails to file a return as and when required by subsection 12(1) is liable to a penalty equal to the aggregate of

(

a) an amount equal to 5% of the tax that was unpaid when the return was required to be filed; and

(

b) the product obtained when 1% of the tax that was unpaid when the return was required to be filed is multiplied by the number of complete months, not exceeding 12, in the period between the date on which the return was required to be filed and the date on which the return was filed.

Penalty re 14(3).

25(2)

Every person who fails to file a return as required by subsection 14(3) is liable to a penalty of $10. for each day of default but not exceeding $50.

Penalty for failure to give information.

25(3)

Every person who fails to complete the information on a prescribed form as required by, or pursuant to,

section 14 is, unless in the case of an individual the treasurer has waived it, liable to a penalty

(

a) of 1% of the tax payable under this Act but, whether he is taxable or not, not less than $25. or more than $100.; or

(

b) in the case of an individual, of such lesser amount as the treasurer may fix in respect of the specific failure.

Reduction of penalty.

25(4)

Where a collection agreement is entered into, the minister may refrain from levying or may reduce a penalty provided in this section, if the person who is liable to the penalty is required to pay a penalty under

section 162 of the federal Act.

False statements.

26(1)

Every person who knowingly, or under circumstances amounting to gross negligence in the carrying out of any duty or obligation imposed by or under this Act, makes, or participates in, assents to, or acquiesces in the making of, a statement or omission in a return, certificate, statement, or answer filed or made as required by or under this Act or a regulation, as a result of which the tax that would have been payable by him for a taxation year, if the tax had been assessed on the basis of the information provided in the return, certificate, statement, or answer, is less than the tax payable by him for the year, is liable to a penalty of 25% of the amount by which the tax that would so have been payable is less than the tax payable by him for the year.

Penalty for evasion.

26(2)

Every person who wilfully attempts to evade the payment of the tax payable by him by failing to file a return of income as and when required by subsection 14(1) is liable to a penalty of 50% of the amount of tax sought to be evaded.

Justification of penalty.

26(3)

Where, in any appeal under this Act, a penalty assessed by the treasurer under this

section is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the treasurer.

Statements or omissions in return.

27(1)

Every person who, knowingly, or under circumstances amounting to gross negligence in the carrying out of any duty or obligation imposed by or under this Act, has made or has participated in, assented to or acquiesced in the making of, a statement or omission (in this

section referred to as a "false statement" ) in a return, certificate, statement or answer (in this

section referred to as a "return") filed or made in respect of a taxation year as required by or under this Act or a regulation, is liable to a penalty equal to 25% of the amount, if any, by which

(

a) the tax for the taxation year that would be payable by him under this Act if his taxable income for the taxation year were computed by adding to the taxable income reported by him in his return for the taxation year that portion of his understatement of income for the taxation year that is reasonably attributable to the false statement;

exceeds

(

b) the tax for the taxation year that would have beeri payable by him under this Act had his tax payable for the taxation year been assessed on the basis of information provided in his return for the taxation year.

Interpretation.

27(2)

For the purposes of subsection (1), the taxable income reported by a person in his return for a taxation year shall be deemed not to be less than nil and the "understatement of income for a year" of a person has the meaning assigned to that expression in subsection 163(2.1) of the federal Act.

REFUND OF OVERPAYMENT

Refund of overpayment if return tiled.

28(1)

Where the return of a taxpayer's income for a taxation year is made within three years from the end of the year, the treasurer

(

a) may, on or after mailing the notice of assessment for the year, refund, without application therefor, any overpayment made on account of the tax; and

(

b) shall make such a refund after mailing the notice of assessment if application therefor has been made in writing by the taxpayer within three years from the end of the year.

Application of refund on other liabilities.

28(2)

Instead of making a refund or repayment that might otherwise be made under this section, the treasurer may, where the taxpayer is liable or about to become liable to make any payment under this Act, apply the amount of the refund or repayment to that other liability and notify the taxpayer of that action.

Interest on overpayments.

28(3)

Where an amount in respect of an overpayment for a taxation year is refunded, or applied under this

section on other liability, interest at the rate per annum prescribed for the purpose of subsection 164(3) of the federal Act shall be paid or applied thereon for the period beginning with the latest of

(

a) the day when the overpayment arose;

(

b) the day on or before which the return of income for the year was required to be filed or would have been required to be filed if tax were payable for the year; and

(

c) the day when the return of income for the year was actually filed;

and ending with the day of refunding or application aforesaid, unless the amount of the interest so calculated is less than $1., in which event no interest shall be paid or applied under this subsection.

Taxpayer accountable for excess interest

28(4)

Where, at any particular time, interest has been paid to, or applied to a liability of, a taxpayer pursuant to subsection (3) in respect of an overpayment and it is determined at a subsequent time that the actual overpayment was less than the overpayment in respect of which interest was paid or applied, the following rules apply:

(

a) the amount by which the interest that has been paid or applied exceeds the interest, if any, computed in respect of the amount that is determined at the subsequent time to be the actual overpayment shall be deemed to be an amount (in this subsection referred to as "the amount payable") that became payable under this Act by the taxpayer at the particular time;

(

b) the taxpayer shall pay interest, at the rate prescribed for the purposes of subsection 161(1) of the federal Act, on the amount payable for the period beginning at the particular time and ending on the date of payment; and

(

c) the treasurer may at any time assess the taxpayer in respect of the amount payable and, where the treasurer makes such an assessment, the provisions of this Act are applicable, with such modifications as the circumstances require, in respect of the assessment as though it had been made under

section 19 of this Act.

Interest after court judgment.

28(5)

Where, by a decision of the treasurer under

section 29 or by a decision of the court or the Supreme Court of Canada, it is finally determined that the tax payable by a taxpayer for a taxation year under this Act is less than the amount assessed by the assessment under

section 14 to which the objection was made or from which the appeal was taken and the decision makes it appear that there has been an overpayment for the taxation year, the interest payable under subsection (3) on that overpayment shall be computed at the rate per annum prescribed for the purposes of subsection 161(1) of the federal Act instead of that prescribed for the purposes of subsection 164(3) of the federal Act.

Duty of treasurer.

28(6)

Where the court, the Manitoba Court of Appeal, or the Supreme Court of Canada has, on the disposition of an appeal in respect of taxes, interest or a penalty payable under this Act by a taxpayer resident in Canada,

(

a) referred an assessment back to the treasurer for reconsideration and reassessment;

(

b) varied or vacated an assessment; or

(

c) ordered the treasurer to repay tax, interest or penalties;

the treasurer shall with all due dispatch, whether or not an appeal from the decision of the court has been or may be instituted,

(

d) where the assessment has been referred back to him, reconsider the assessment and make a reassessment in accordance with the decision of the court unless otherwise directed in writing by the taxpayer;

(

e) refund any overpayment resulting from the variation, vacation or reassessment; and

(

f) where clause (

c) is applicable, repay any tax, interest or penalties as ordered;

and the treasurer may repay any tax, interest or penalties or surrender any security accepted therefor by him to any other taxpayer who has filed an objection or instituted an appeal if, having regard to the reasons given on the disposition of the appeal, he is satisfied that it would be just and equitable to do so, but for greater certainty, the treasurer may, in accordance with the provisions of this Act, the Queen's Bench Act, the Court of Appeal Act, or the Supreme Court Act (Canada) as they relate to appeals from decisions of the court, appeal from the decision of the court notwithstanding any variation or vacation of any assessment by the court or any reassessment made by the treasurer under clause (d), and any such appeal from a decision of the court shall proceed as if it were an appeal from the assessment that was referred back, varied or vacated.

Collection agreement.

28(7)

Where a collection agreement is entered into and, subsection 164(4) of the federal Act, applies to any repayment made under that Act in respect of an amount payable by a taxpayer for a taxation year, this

section applies with such modifications as the circumstances require to any repayment made under this Act in respect of the same year consequent upon the same circumstances.

Definition.

28(8)

In this section, "overpayment of a taxpayer for a taxation year" means the aggregate of all amounts paid on account of the taxpayer's liability under this Act for the year minus all amounts in respect thereof.

Interest in respect of deductions for losses.

28(9)

Where a taxpayer is entitled to deduct under

section 111 of the federal Act in computing his taxable income for a taxation year an amount in respect of a loss sustained in the taxation year immediately following the taxation year (hereinafter in this subsection referred to as "the loss year"), and the amount of the tax payable for the taxation year is relevant in determining an overpayment for the purpose of computing interest under subsection (3) for any portion of a period ending on or before the last day of the loss year, the tax payable for the taxation year shall be deemed to be the amount that it would have been if the taxpayer were not entitled to deduct any amount under

section 111 of the federal Act in respect of that loss.

Disposition of property by executor.

28(10)

Where in the course of administering the estate of a deceased taxpayer, the taxpayer's legal representative has, within the twelve month period immediately following the death of the taxpayer, disposed of certain property of the estate described in paragraph 164(6)(

a) or (

b) of the federal Act, subsection 164(6) of the federal Act is applicable with such modifications as the circumstances require.

OBJECTIONS TO ASSESSMENTS

Notice of objection to assessment.

29(1)

A taxpayer who objects to an assessment under this Act may, within 90 days from the day of mailing of the notice of assessment, serve on the treasurer a notice of objection in duplicate in the prescribed form setting out the reasons for the objection and all relevant facts.

Mailing of notice.

29(2)

A notice of objection under this

section shall be served by being sent by registered mail addressed to the deputy head.

Action of treasurer.

29(3)

Upon receipt of a notice of objection, the treasurer shall

(

a) where the taxpayer indicates in the notice of objection that he wishes to appeal immediately to the court and that he waives reconsideration of the assessment and the treasurer consents, file a copy of the notice of objection with the Registrar of the court or a deputy registrar of the court in the judicial centre closest to where the taxpayer resides; or

(

b) with all due dispatch reconsider the assessment and vacate, confirm or vary the assessment or re-assess;

and he shall thereupon notify the taxpayer of his action by registered mail.

Where confirmation of assessment deemed.

29(4)

Where the treasurer files a copy of a notice of objection pursuant to clause (3)(a), the treasurer shall be deemed, for the purposes of

section 30, to have confirmed the assessment to which the notice relates and the taxpayer who served the notice shall be deemed to have thereupon instituted an appeal in accordance with that section.

Validity of re-assessment.

29(5)

A re-assessment made by the treasurer pursuant to subsection (3) is not invalid by reason only of not having been made within three years from the day of mailing of a notice of an original assessment or of a notification described in subsection 16(4).

Appeal without notice of objection.

29(6)

Where a taxpayer has served a notice of objection to an assessment in accordance with this

section and thereafter the treasurer re-assesses the taxpayer's tax for the taxation year in respect of which the notice of objection was served or issues an additional assessment in respect thereof, and notifies the taxpayer of his action by registered mail, the taxpayer may, without serving a notice of objection to the re-assessment or the additional assessment,

(

a) appeal therefrom to the court in accordance with

section 30; or

(

b) if an appeal to the court has been instituted with respect to the assessment, amend the appeal by joining thereto an appeal in respect of the assessment or additional assessment in such manner and on such terms, if any, as the court directs.

DIVISION V

APPEALS TO THE COURT OF QUEEN'S BENCH

Right of appeal.

30(1)

A taxpayer who has served a notice of objection to an assessment under subsection 29(1) may appeal to the court to have the assessment vacated or varied after either

(

a) the treasurer has confirmed the assessment or re-assessed; or

(b) 90 days have elapsed after service of the notice of objection and the treasurer has not notified the taxpayer that he has vacated or confirmed the assessment or re-assessed;

but no appeal under this

section may be instituted after the expiration of 90 days from the day notice has been mailed to the taxpayer, in accordance with subsection 29(3) that the treasurer has confirmed the assessment or re-assessed.

Matters that can be appealed.

30(2)

An appeal from an assessment under this Act may be taken in respect of any question relating,

(

a) in the case of an individual, to the determination of

(

i) his residence for the purposes of this Act, or

(ii) his income earned in the taxation year in Manitoba as defined in subsection 4(17), or

(iii) the amount of tax payable for a taxation year based on the tax payable under the federal Act for that year as defined in subsection 4(17);

(

b) and in the case of a corporation to the determination of

(

i) its taxable income earned in the year in Manitoba as defined in subsection 7(6), or

(ii) the amount of tax payable for a taxation year based on the taxable income of the corporation for that year;

but no appeal from an assessment lies in respect of the computation of the tax payable under the federal Act as defined in subsection 4(17) or of the taxable income of a corporation.

Notice of appeal.

30(3)

An appeal to the court shall be instituted by serving upon the treasurer a notice of appeal in duplicate in the prescribed form and by filing a copy thereof in the office of the court in the judicial centre closest to where the taxpayer resides.

Service of notice of appeal.

30(4)

A notice of appeal shall be served upon the treasurer by being sent by registered mail addressed to the deputy head.

Contents of notice.

30(5)

The taxpayer appealing shall set out in the notice of appeal a statement of the allegations of fact, the statutory provisions and the reasons that he intends to submit in support of his appeal.

Fee on appeal.

30(6)

The taxpayer appealing shall, upon the filing of the copy of the notice of appeal in the court office, pay to the Registrar or deputy registrar of the court a fee prescribed under The Law Fees Act.

Service of reply to appeal notice.

31(1)

The treasurer shall, within 60 days from the day the notice of appeal is received, or within such further time as the court may either before or after the expiration of that time allow, serve on the appellant and file in the court a reply to the notice of appeal admitting or denying the facts alleged, and containing a statement of such further allegations of fact and of the statutory provisions and reasons upon which the treasurer intends to rely.

Striking out of notice of appeal.

31(2)

The court may strike out a notice of appeal or any part thereof for failure to comply with subsection 30(5) and may permit an amendment to be made to a notice of appeal or a new notice of appeal to be substituted for the one struck out.

Reply.

31(3)

The court may

(

a) strike out any part of a reply for failure to comply with this

section or permit the amendment of a reply ; and

(

b) strike out a reply for failure to comply with this

section and order a new reply to be filed within a time to be fixed by the order.

Disposal of appeal where notice struck out.

31(4)

Where a notice of appeal is struck out for failure to comply with subsection 30(5) and a new notice of appeal is not filed as and when permitted by the court, the court may dispose of the appeal by dismissing it.

Disposal of appeal where reply struck out.

31(5)

Where a reply is not filed as required by this

section or is struck out under this

section and a new reply is not filed as ordered by the court within the time ordered, the court may dispose of the appeal ex parte or after a hearing, on the basis that the allegations of fact contained in the notice of appeal are true.

Appeal deemed an action.

32(1)

Upon the filing of the material referred to in sections 30 and 31, the matter shall be deemed to be an action in the court and, unless the court otherwise orders, ready for hearing.

Pleading of other matters.

32(2)

Any fact or statutory provision not set out in the notice of appeal or reply may be pleaded, or reference thereto may be made in such manner, and upon such terms, as the court may direct.

Manner of disposal of appeal.

32(3)

The court may dispose of the appeal by

(

a) dismissing it; or

(

b) allowing it; or

(

c) allowing it and

(

i) vacating the assessment; or

(ii) varying the assessment; or

(iii) restoring the assessment; or

(iv) referring the assessment back to the treasurer for reconsideration and re-assessment.

Order for payment.

32(4)

The court may, in delivering judgment disposing of an appeal, order payment or repayment of tax, interest, and penalties or costs by the taxpayer or the treasurer.

Proceedings "in camera".

Proceedings under this Division shall be held in camera upon request made to the court by the taxpayer.

Practice respecting appeals.

Except as provided in the regulations, the practice and procedure of the court and of The Court of Appeal, including the right of appeal and the practice and procedure relating to appeals, apply to every matter deemed to be an action under

section 32; and every judgment and order given or made in every such action may be enforced in the same manner, and by the like process, as a judgment or order given or made in an action commenced in the court.

Effect of irregularities in assessment.

An assessment shall not be vacated or varied on appeal by reason only of any irregularity, informality, omission, or error on the part of any person in the observation of any directory provision of this Act or of the federal Act, if the provision in that Act applies in respect of any action under this Act.

PART II

ADMINISTRATION AND ENFORCEMENT

ADMINISTRATION

Administration of Act

36(1)

The treasurer shall administer and enforce this Act and control and supervise all persons employed to carry out or enforce this Act; and the deputy head may exercise all the powers and perform the duties of the treasurer under this Act.

Extension of time for returns.

36(2)

The treasurer may, at any time, extend the time for making a return under this Act.

Security for taxes.

36(3)

The treasurer may, if he considers it advisable in a particular case, accept security for payment of any amount that is or may become payable under this Act.

Surrender of excess security.

36(4)

Where at any time a taxpayer requests in writing that the treasurer surrender any security accepted by the treasurer under subsection (3), the treasurer shall surrender the security to the extent that the amount thereof exceeds the amount for which the security was accepted that is payable at that time.

Administration of oaths.

36(5)

Any person employed in connection with the administration or enforcement of this Act may, in the course of his employment,

(

a) if he is designated by the treasurer for the purpose; or

(

b) where a collection agreement is entered into, if he is a person designated by the minister under the federal Act for the purposes of subsection 220(5) of that Act;

administer oaths and take and receive affidavits, declarations, and affirmations for the purposes of or incidental to the administration or enforcement of this Act or the regulations; and every person so designated has for such purposes, all the powers of a commissioner for oaths.

Regulations.

37(1)

For the purposes of carrying out the provisions of this Act according to their intent, the Lieutenant Governor in Council may make such regulations and orders as are ancillary thereto and are not inconsistent therewith; and every regulation or order made under, and in accordance with the authority granted by, this

section has the force of law and, without restricting the generality of the foregoing, the Lieutenant Governor in Council may make regulations and orders

(

a) prescribing anything that, by this Act, is to be prescribed or is to be determined or regulated by regulation;

(

b) providing in any case of doubt the circumstances in which, and the extent to which, the federal regulations apply;

(

c) directing municipalities, local government districts and the Commissioner of Northern Affairs to deduct amounts from municipal taxes as described in subsection 5(17);

(

d) respecting the payment by the treasurer to municipalities and local government districts of amounts equal to the amounts deducted by the municipalities and local government districts from municipal taxes in accordance with the regulations, including, without limiting the generality of the foregoing, the applications required for such payments, the information to accompany applications for such payments, and the time when such payments shall be made;

(

e) defining words and expressions, not inconsistent with the provisions of this Act, for the proper administration of this Act and the regulations;

(

f) prescribing forms for use under this Act;

(

g) setting out the time and method of application for refunds;

(

h) prescribing rules for the purpose of subsection 4(18);

(

i) prescribing forms, for use by taxpayers in applying for an investment tax credit under

section 11.

Application of federal regulations.

37(2)

Except to the extent that they are inconsistent with any regulations made under subsection (1) or are expressed by any regulation made under subsection (1) to be inapplicable, the federal regulations made under subsection 221(1) of the federal Act apply, with such modifications as the circumstances require, for the purposes of this Act with respect to all matters enumerated in that section.

Publication of regulations required.

37(3)

A regulation made under this Act is a regulation to which The Regulations Act applies but, subject to subsection (5), has no effect unless it has been published as required in that Act.

Canada Gazette.

37(4)

Where a regulation made under the federal Act is applicable, with such modifications as the circumstances require, it has, subject to subsection (5), no effect for the purposes of this Act unless it has been published in the Canada Gazette.

Retroactive effect.

37(5)

A regulation made under this Act or made under the federal Act and that is applicable, with such modifications as the circumstances require, when published as herein provided shall, if it so provides, be effective with reference to a period before it was published.

ENFORCEMENT

Taxes a debt.

All taxes, interest, penalties, costs and other amounts payable under this Act are debts due to Her Majesty in right of Manitoba and recoverable as such in court or in any other manner provided by this Act.

Certificate of indebtedness.

39(1)

An amount payable under this Act that has not been paid, or such part of an amount payable under this Act as has not been paid, may be certified by the treasurer

(

a) where there has been a direction by the treasurer under subsection 22(2), forthwith after that direction; and

(

b) otherwise, upon the expiration of 30 days after the default.

Registration of certificate.

39(2)

On production to Her Majesty's Court of Queen's Bench for Manitoba at the office of the court in The City of Winnipeg, a certificate issued under this

section shall be registered in the court and, when registered, has the same force and effect, and all proceedings may be taken thereon, as if the certificate were a judgment obtained in the court for a debt of the amount specified in the certificate plus interest to the day of payment as provided for in this Act.

Recovery of costs.

39(3)

All reasonable costs and charges attendant upon the registration of the certificate are recoverable in like manner as if they had been certified and the certificate had been registered under this section.

Requisition of moneys owing to taxpayer.

40(1)

Where the treasurer has knowledge or suspects that a person is or will be, within 90 days, liable to make a payment to another person who is liable to make a payment under this Act (in this

section referred to as the "tax debtor"), he may, by registered letter or by a letter served personally, require that person to pay forthwith, where the moneys are immediately payable, and, in any other case, as and when the moneys become payable, the moneys otherwise payable to the tax debtor in whole or in part to the treasurer on account of the tax debtor's liability under this Act.

Requisition directed to bank.

40(2)

Without limiting the generality of subsection (1), where the treasurer has knowledge or suspects that within 90 days

(

a) a bank, credit union, trust company or other similar person (in this

section referred to as the "institution") will loan or advance moneys to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by, a tax debtor who is indebted to the institution and who has granted security in respect of the indebtedness; or

(

b) a person, other than an institution, will loan or advance moneys to, or make a payment on behalf of, a tax debtor who the treasurer knows or suspects

(

i) is employed by, or is engaged in providing service or property to, that person or was or will be, within 90 days, so employed or engaged, or

(ii) where that person is a corporation, is not dealing at arm's length with that person, he may, by registered letter or by a letter served personally, require the institution or person, as the case may be, to pay in whole or in part to the treasurer on account of the tax debtor's liability under this Act the moneys that would otherwise be so loaned, advanced or paid and any moneys so paid to the treasurer, shall be deemed to have been loaned, advanced or paid, as the case may be, to the tax debtor.

Effect of receipt

40(3)

The receipt of the treasurer for moneys paid as required under this

section is a good and sufficient discharge of the original liability to the extent of the payment.

Continuing effect of requisition.

40(4)

Where the treasurer has, under this section, required a person to pay to the treasurer on account of the liability under this Act of a tax debtor moneys otherwise payable by the person to the tax debtor as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the requirement is applicable to all such payments to be made by the person to the tax debtor until the liability under this Act is satisfied and operates to require payments to the treasurer out of each payment of such amount as may be stipulated by the treasurer in the registered letter or letter served personally.

Penalty on person for failure to comply.

40(5)

Every person who fails to comply with a requirement under subsection (1) or (4) is liable to pay to Her Majesty in right of Manitoba an amount equal to the amount that he was required under subsection (1) or (4), as the case may be, to pay to the treasurer.

Penalty on institution for failure to comply.

40(6)

Every institution or person that fails to comply with a requirement under subsection (2) with respect to moneys to be loaned, advanced or paid is liable to pay to Her Majesty in right of Manitoba an amount equal to the lesser of

(

a) the aggregate of moneys so loaned, advanced or paid; and

(

b) the amount that the institution or person was required under that subsection to pay to the treasurer.

Letter in business name.

40(7)

Where the person who is, or is about to become, indebted or liable carries on business under a name or style other than his own name, the registered or other letter under subsection (1) may be addressed to the name or style under which he carries on business and, in the case of personal service, shall be deemed to have been validly served if it has been left with an adult person employed at the place of business of the addressee.

Letter addressed to partnership.

40(8)

Where the persons who are, or are about to become, indebted or liable carry on business in partnership, the registered or other letter under subsection (1) may be addressed to the partnership name and, in the case of personal service, shall be deemed to have been validly served if it has been served on one of the partners or left with an adult person employed at the place of business of the partnership.

Acquisition of taxpayer's interest.

For the purpose of collecting debts owed by a person to Her Majesty in right of Manitoba under this Act, the treasurer may purchase or otherwise acquire any interest in the person's property that the treasurer is given a right to acquire in legal proceedings or under a court order or that is offered for sale or redemption and may dispose of any interest so acquired in such a manner as he considers reasonable.

Requisition of seized moneys.

42(1)

Where the treasurer has knowledge or suspects that a person is holding moneys that were seized by a police officer in the course of administering or enforcing the criminal law of Canada from another person who is liable to make a payment under this Act (in this

section referred to as the "tax debtor") and that are restorable to the tax debtor, he may, by registered letter or by a letter served personally, require that person to turn over the moneys otherwise restorable to the tax debtor in whole or in part to the treasurer on account of the tax debtor's liability under this Act.

Receipt.

42(2)

The receipt of the treasurer for moneys turned over as required by this

section is a good and sufficient discharge of the requirement to restore the moneys to the tax debtor to the extent of the amount so turned over.

Warrant for goods.

The treasurer may issue a warrant directed to a sheriff, for the amount of the tax, interest, and penalty, or any of them, owing by the taxpayer, together with interest thereon from the date of the issue of the warrant and the costs, expenses, and poundage of the sheriff, and such warrant shall have the same force and effect and be subject to the same exemption as a writ of fieri facias issued out of the court.

Seizure of goods on default in payment

44(1)

Where a person fails to make a payment as required by this Act, the treasurer, on giving 10 days' notice by registered mail addressed to his last known place of residence, may, whether or not there is an objection to, or appeal in respect of, the assessment not disposed of, issue a certificate of the failure and direct that the goods and chattels of the person in default that are located in Manitoba be seized.

Sale of goods seized.

44(2)

Property seized under this

section shall be kept for 10 days at the cost and charges of the owner; and, if he does not pay the amount due together with the costs and charges within the 10 days, the property seized shall be sold by public auction.

Publication of notice of sale.

44(3)

Except in the case of perishable goods, the treasurer shall, a reasonable time before the goods are sold, publish at least once in one or more newspapers of general local circulation, a notice of the sale setting forth the time and place thereof, together with a general description of the property to be sold.

Disposal of surplus.

44(4)

The treasurer shall pay or return to the owner of the property seized any surplus resulting from the sale after deduction of the amount owing and all costs and charges.

Exemption from seizure.

44(5)

Such goods and chattels of any person in default as would be exempt from seizure under a writ of fieri facias issued out of court are exempt from seizure under this section.

Demand of payment.

45(1)

Where the treasurer suspects that a taxpayer is about to leave Manitoba or Canada, he may before the day otherwise fixed for payment, by notice served personally or be registered letter addressed to the taxpayer, demand payment of all taxes, interest, and penalties for which the taxpayer is liable or would be liable if the time for payment had arrived; and they shall be paid forthwith notwithstanding any other provision of this Act.

Seizure of goods.

45(2)

Where a person fails to pay tax, interest, or penalties demanded under this

section as required, the treasurer may direct that the goods and chattels of the taxpayer that are located in Manitoba be seized; and subsections 34(2) to (5) are, thereupon, applicable with such modifications as the circumstances require.

Limitation of right of action.

46(1)

No action lies against any person for withholding or deducting any sum of money in compliance or intended compliance with this Act.

Returns required.

46(2)

Where a person (in this subsection referred to as the "payor") is required by regulations made under subsection 17(1) to deduct or withhold from a payment to another person an amount on account of that other person's tax for the year, that other person shall, from time to time as prescribed, file a return with the payor in prescribed form.

Effect of failure to file return.

46(3)

Every person who fails to file a return as required by subsection (2) is liable to have the deduction or withholding under

section 17 on account of his tax made as though he were an unmarried person without dependants.

Deductions in trust.

46(4)

Every person who deducts or withholds any amount under this Act shall be deemed to hold the amount so deducted or withheld in trust for Her Majesty in right of Manitoba.

Deductions to be held separate.

46(5)

All amounts deducted or withheld by a person under this Act shall be kept separate and apart from his own moneys; and, where a collection agreement is entered into, those amounts shall be kept with amounts deducted or withheld by that person under the federal Act.

Penalty for failure of employer to deduct.

46(6)

Any person who has failed to deduct or withhold any amount as required by this Act or the regulations is liable to pay to Her Majesty in right of Manitoba,

(

a) if the amount should have been deducted or withheld under

section 17 from an amount that has been paid to a person resident in Manitoba, 10% of the amount that should have been deducted or withheld; and

(

b) in any other case, the whole amount that should have been deducted or withheld;

together with interest on the amount that should have been deducted or withheld, at the rate per annum prescribed for the purposes of subsection 227(8) of the federal Act

Penalty for failure to remit deduction.

46(7)

Every person who has failed to remit or pay an amount deducted or withheld as required by this Act or a regulation is liable to a penalty of 10% of that amount or $10., whichever is the greater, in addition to the amount itself, together with interest on the amount at the rate per annum prescribed for the purposes of

section 227(8) of the federal Act, but where a collection agreement is entered into the minister may refrain from levying or reduce the penalty if the person who is liable therefor is liable to pay the penalty un