Second Session,

46th General Assembly

58 Elizabeth II,

BILL 4

AN ACT TO CONSOLIDATE THE LAW

RESPECTING

REVENUE ADMINISTRATION

Received

and Read the First Time ............................................... April 2, 2009

Second

Reading ....................................................................... April 30, 2009

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

Amendment

April 30, 2009

Third

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

Royal

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

HONOURABLE

JEROME P. KENNEDY, Q.C .

Minister of Finance

and President of Treasury Board

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTE

This Bill would consolidate the law

with respect to the administration of various taxation schemes within the

province.

A BILL

AN ACT TO CONSOLIDATE THE LAW RESPECTING

REVENUE ADMINISTRATION

Analysis

Short title

Definitions

PART

GENERAL

Liability for tax

Return and payment required

Collection of tax

Interest

Remissions

Trustee

Books and records

Confidentiality of records

Production of documents

Notice of assessment

Review of objection

Appeal to Trial Division

Appeal to Court of Appeal

Effect of delay

Action to recover tax

Tax as lien

Estimating tax in default

Effect of default

Refund

Set-off

Certificate of judgment

Demand on third party

Director's liability

Exercise of recovery powers

Third party claims

Notices generally

Penalty for failure to file, collect or

remit tax

Excess losses

Evasion of tax

Offences

Penalties

Limitation period

Crown bound

PART

INSPECTION AND COMPLIANCE

Appointment of inspectors

Powers of inspectors re: compliance

Contravention of Act suspected

Determination of compliance

Part III

Samples

Contravention suspected

Determination of compliance-Part IX

Contravention re: contraband suspected

Seizure of contraband

Disposal or return of evidence

Telewarrant

Search warrants

Actions against inspectors

Affidavit as proof

Evidence

PART

III

GASOLINE TAX

Tax levied

Tax reduction for south coast Labrador

Gasoline brought into province

Gasoline held for consumption

Gasoline not purchased at retail sale

Tax

No double tax

Power to issue licences

Application for licences

Power to suspend, etc.

Registration

Saving provision

Prohibited sales of gasoline

Retailer to post licence

Automatic revocation of licence

Levying the tax

Marking gasoline

Gasoline delivery

Powers re interjurisdictional carrier

Meters required

Sealed equipment

Agreements

PART

HEALTH AND POST-SECONDARY EDUCATION TAX

Imposition of tax

Ceasing to have an establishment

PART

HORSE RACING TAX

Payment of tax

Collection of tax

Remuneration of tax collectors

PART

INSURANCE COMPANIES TAX

Imposition of tax

PART

VII

MINING AND MINERAL RIGHTS TAX

Definition

Mining tax

Gross revenue

Net income

Taxable income

Corporate income tax credit

Mineral rights tax

Withholding

Application and construction of prior

statutes and contracts

PART

VIII

RETAIL SALES TAX

Tax

Trade-in

Determination of value

Effect of return

PART

TOBACCO TAX

Tax levied

Permit

Transporter duties

Prohibition

Permits

Retailer

Rate of tax

Calculating tax

Purchase price of cigars

When tax payable

Licences

Prohibition

Prohibited sales

Deputy collectors

Prohibition against rebate

PART

REGULATIONS, TRANSITIONAL AND COMMENCEMENT

Regulations

Regulations re: gasoline tax

Regulations re: horse racing tax

Regulations re: mining and mineral

rights tax

Regulations re: retail sales tax

Regulations re: tobacco tax

Retroactivity

Fees and forms

Transitional

SNL1994 cE-1.1 Amdt.

RSNL1990 cH-3 Amdt.

RSNL1990 cL-18 Amdt.

SNL1991 c53 Amdt.

RSNL1990 cM-14 Amdt.

RSNL1990 cP-26 Amdt.

NLR 78/99 Amdt.

RSNL1990 cP-45 Amdt

SNL1992 cS-10.1 Amdt.

SNL2006 cS-31.1 Amdt.

SNL1996 cT-0.01 Amdt.

SNL1992 cT-0.1 Amdt.

Repeal

Schedule

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

Short title

1. This

Act may be cited as the Revenue Administration Act .

Definitions

2. In

this Act

(a) "annuity" means a contract of

insurance that provides for the payment of an income for a specified period or

for life and under the terms of which the sole benefit stated to be payable by

reason of death does not exceed the sum of the amounts paid as consideration

for the contract together with interest;

(b) "arm's length" has the same meaning

as under

section 251 of the Income Tax

Act (Canada) and the word "control" used in that

section shall be

read in the context given in subsection 256(5.1) of that Act;

(c) "assessment" means an assessment, a

reassessment, an amended assessment or an additional assessment of tax under

this Act;

(d) "associated corporation" means a

corporation which is an associated corporation as defined in

section 256 of the

Income Tax Act ( Canada ) ;

(e) "bet" means a bet placed under the

system known as pari-mutuel wagering

upon a race run at a race-meeting;

(f) "books and records" means any

recorded information in original or copied form relating to a taxpayer or

taxpayer's returns, including every kind of financial book or record, all

purchase invoices, sales invoices, sales tapes, other documents of original

sale or purchase, statements of account, bank statements or statements of other

financial institutions, bank agreements, loan agreements, partnership

agreements, articles of incorporation, share registries, minute books, sales

journals, purchase journals, all other journals, letters, memoranda, notes,

draft agreements, charts of account, general ledgers, all subsidiary ledgers,

payroll journals and summaries, income tax returns, returns under this Act,

financial statements, auditors' opinions and notes that comprise part of the

financial statements, internal audit reports, executive and management committee

minutes and any other thing containing information, and includes those items or

data in machine readable or electronic format;

(g) "business", for the purpose of

Part

IV, means an undertaking or activity carried on by an employer whether or not

it is carried on for gain or profit and includes the carrying on of government

or of a government function;

(h) "business transacted in the

province", for the purpose of

Part VI, means

(

i) in the case of insurance in respect of loss of

or damage to property of all kinds, all contracts on which premiums are

receivable from or in respect of persons whose property was situated in the

province when their premiums became payable, and

(ii) in the case of other insurance, all contracts

on which premiums are receivable from or in respect of persons who were

residents of the province when their premiums became payable;

(i) "cigar" means a roll or tubular

construction intended for smoking that consists of

(

i) a filler composed of natural tobacco,

reconstituted tobacco or both natural and reconstituted tobacco, and

(ii) a wrapper, or binder and a wrapper, composed

of natural tobacco, reconstituted tobacco or both natural and reconstituted

tobacco in which the filler is wrapped, and may include a mouthpiece, tip or

filter;

(j) "collector" means a wholesaler or

retailer who

(

i) collects tax from another wholesaler, retailer

or consumer,

(ii) holds the tax collected under subparagraph (

i) in trust for the Crown, and

(iii) is accountable to the minister for remittance

of that tax;

(k) "commercial production" means a

point when 60% of the stated processing capacity is achieved for 30 days or as

the minister may determine;

(l) "company" means a person, company,

society, association, partnership, exchange or underwriter which carries on or

transacts in the province a business of insurance to which the Insurance Companies Act or the Insurance Adjusters, Agents and Brokers Act

applies, or any other business of insurance, and includes a person who

administers a contract of insurance under an administrative services only plan

or any other financial arrangement which provides group insurance, and an

attorney authorized to act for, or acting for, a reciprocal or inter-insurance

exchange and underwriters or syndicates of underwriters operating on the plan

known as "Lloyd's" but does not include

(

i) a purely mutual company in respect of a year

in which the net premium income in the province of that mutual company is to

the extent of not less than 50% derived from the insurance of farm or fishing

property or wholly derived from the insurance of churches, schools, or other

religious, educational, or charitable institutions,

(ii) a fraternal or sororal benefit society, or

(iii) a mutual benefit society;

(m) "consumer", for the purpose of

Part

IX, means a person who

(

i) in the province, purchases or receives

delivery of tobacco, or

(ii) brings into the province tobacco acquired

outside the province,

for that person's own use or consumption or

for the use or consumption by others at that person's expense, or on behalf of,

or as the agent for, a principal who wishes to acquire the tobacco for use or

consumption by the principal or other person at the principal's expense;

(n) "contraband" means tobacco that is

not purchased, possessed, acquired, marked, stamped, transported, stored or

sold in accordance with this Act and includes unmarked tobacco possessed

without lawful reason;

(o) "contract of insurance" includes an

administrative services only contract or any other financial arrangement for

group insurance;

(p) "department" means the department

presided over by the minister;

(q) "deputy collector" means a retailer

or a wholesaler, who is not a collector;

(r) "dividend" without restricting the

ordinary meaning of the word, includes an amount payable, or subject to be

credited, by a company to its insured and that is composed in whole or in part

of a portion of the amount previously paid by the insured as a premium or as a

deposit or payment under a reciprocal contract of indemnity or inter-insurance;

(s ) "employee" means a natural person

employed in the province by an employer, including an officer of an employer,

who receives remuneration in respect of the performance of the duties of the

employment or the office;

(t) "employer" means a person or a

government, including the government of a province, and the Government of

Canada, paying remuneration in relation to a business in the province;

(u) "establishment" means a place of

business and includes an office, branch, agency, factory, workshop, work site,

warehouse, storage area, farm, mine, sawmill, timberland, transportation

terminal, oil or gas well, refinery or generating station occupied or utilized

during a year or part of a year and includes a corporation which has an

establishment in the place designated in its articles of incorporation or

by-laws as being its head office, and

(ii) the use by an employer of machinery or

equipment in a particular place during a month constitutes an establishment of

the employer in that place for that month,

(ii) an employer which produced, grew, mined,

fished, refined, harvested, collected, created, manufactured, fabricated,

improved, packed, preserved, processed or constructed, in whole or in part,

anything in the province, whether or not the employer exported that thing or removed

that thing from the province before selling it, is considered to maintain an

establishment at the places where the employer did any of those things, and

(iii) an employer which has no fixed place of

business is considered to have an establishment in the principal place in which

the employer conducted business and in each place from which the employer

carried on or transacted a portion of his or her business;

(v) "exchange" or "reciprocal or

inter-insurance exchange" means a group of subscribers exchanging

reciprocal contracts of indemnity of inter-insurance with each other through

the same attorney;

(w) "exemption threshold" means, with

respect to remuneration paid, $1,000,000;

(x) "exploration expenditure" means an

expenditure relating to prospecting, sampling, mapping, diamond drilling and

other work involved in searching for ore in the province under a licence to

explore for minerals issued under the Mineral

Act;

(y) "fleet" means all

interjurisdictional motor vehicles operated by an interjurisdictional carrier;

(z) "fraternal or sororal benefit

society" means a society, order or voluntary association incorporated or

formed to carry on for the purpose of making with its members only and not for

profit contracts of life, accident or sickness insurance under which benefits

may be paid only to its members or their beneficiaries in accordance with its

constitution and by-laws and the laws of the province;

(aa) "gasoline" includes every liquid or

combination of liquids, under whatever name it is known or sold, that is

capable of being used for the purpose of generating power in an internal

combustion engine whether or not the liquid or combination or a part of it is

produced, derived or recovered from petroleum, natural gas, shale or coal;

(bb) "government assistance" means

assistance provided by a government, including a municipal government and an

agency of a government, and includes a grant, subsidy, forgivable loan,

deduction from tax, but does not include an amount provided under

section 84 ;

(cc) "group insurance" means a policy of

insurance or any other financial arrangement that covers a specified group and

other persons and gives protection against risk to an individual such as death,

disability, loss of income due to illness or accident, and payments for

supplemental health care, drugs, dental and other expenses;

(dd) "HST registrant" means a registrant

as defined in

Part IX of the Excise Tax Act ( Canada ) ;

(ee) "impacts and benefits agreement"

means an agreement between a person or an association of persons, whether or

not incorporated, and an operator that could reasonably confer a benefit on the

person or association of persons or its members, which includes any matter

connected with exploration, mine development or a mining operation that may

affect the person or association;

(ff) "inspector" means a person appointed

under this Act to audit and inspect books and records, collect tax and

otherwise perform those duties assigned to him or her under this Act;

(gg) "interjurisdictional carrier" means

the owner or lessee of an interjurisdictional motor vehicle;

(hh) "interjurisdictional motor vehicle"

means a diesel powered "commercial motor vehicle" as defined in the Highway Traffic Act , used to transport

goods or passengers between the province and another jurisdiction, including

buses other than school buses;

(ii) "joint venture" means a business

undertaking entered into by 2 or more persons which terminates upon completion

of that undertaking and where the control and contribution of resources are

shared;

(jj) "licence" means a licence issued

under this Act;

(kk) "licensee" means a person who holds

a licence issued to that person under this Act;

(ll) "marine insurance" means insurance

against marine losses, that is to say, the losses incidental to marine

adventure, and includes insurance that, by the express terms of a contract or

by usage of trade, extends so as to protect the insured against losses on land

or air or inland water risk that is incidental to a sea voyage;

(mm) "marked gasoline" means gasoline

marked by a specific dye in accordance with the regulations;

(nn) "marked tobacco" means tobacco in

packages, cartons or cases that are marked or stamped as required under the regulations;

(oo) "mine" means a shaft, open pit,

quarry or other place from which minerals are extracted, and where more than

one mine is operated under the same mining lease, or on contiguous properties,

those mines shall be considered to be one mine;

(pp) "mineral" means mineral as defined

in the Mineral Act ;

(qq) "mining lease" means a mining lease

issued under the Mineral Act ;

(rr) "mining operations" means the

extraction or production, within the province, of minerals up to and including

primary crushing, and includes the transportation, handling, storing,

distribution and sale of those minerals, mine rehabilitation and

decommissioning, but does not include processing;

(ss) "minister" means the minister

appointed under the Executive Council Act to administer this Act;

(tt) "municipality" means

(

i) the City of Corner Brook ,

(ii) the City of Mount Pearl ,

(iii) the City of St. John's , and

(iv) a municipality established or continued under

the Municipalities Act, 1999;

(uu) "mutual benefit society" means a

mutual company formed for the purpose of providing sick and funeral benefits

for its members or for this and other necessary or incidental purposes except

life insurance;

(vv) "mutual company" means a company

without share capital or with guarantee capital stock subject to repayment by

the company, in respect of which the dividend rate is limited by its Act or

other instrument of incorporation which is empowered to undertake mutual

insurance exclusively;

(ww) "mutual insurance" means a contract

of insurance in which the consideration is not fixed or certain at the time the

contract is made and is to be determined at the termination of the contract or

at fixed periods during the term of the contract according to the experience of

the insurer in respect of all similar contracts whether or not the maximum

amount of that consideration is predetermined;

(xx) "operator"

(

i) for the purpose of

Part V, means a person who

(

A) operates a race-course,

(

B) conducts a race-meeting, or

(

C) is the custodian or depositary of money staked

or deposited in the making of a bet at a race-meeting upon races being run at a

race-meeting, and

(ii) for the purpose of

Part VII, means a person

who

(

A) has the right to extract minerals, and

(

B) carries out mining operations on or under

lands within the province;

(yy) "outlet" means a station, shop,

establishment, vehicle or other place or thing from or in which gasoline is

kept for sale;

(zz) "package" includes a bag, box, tin

or other container in which tobacco is packaged for retail sale;

(aaa) "partnership" means a partnership

under the Partnership Act and

includes a limited partnership and a joint venture;

(bbb) "person" includes a partnership,

limited partnership, association, syndicate, joint venture or co-venture and a

municipal government;

(ccc) "plan holder" means with regard to

group insurance, the person who holds the group insurance on behalf of the

insured members;

(ddd) "policyholder" includes the personal

representative or beneficiary of the policyholder;

(eee) "premium" means the single or

periodic payment made as consideration under a contract of insurance and

includes the amount collected from a subscriber under a reciprocal contract of

indemnity or inter-insurance for the purpose of defraying losses incurred by

the subscriber to a reciprocal or inter-insurance exchange and the necessary

operation expenses of the exchange;

(fff) "pre-production expenditure" means

costs, other than capital costs, incurred in order to bring a mine into

commercial production, less revenue earned before the mine comes into

commercial production;

(ggg) "purchase price", for the purpose of

Part VIII, includes the value in Canadian dollars of the consideration, whether

money, goods, services rendered, rental or other consideration for which a used

vehicle was acquired at a retail sale, and includes the interest, charges,

duties, and taxes;

(hhh) "race-meeting" means a contest in

which one or more horse races are held, whether or not the public is admitted

to them, but does not include the racing of horses for the purposes of training

only to which the public is not admitted on the payment of a fee or otherwise;

(iii) "reconstituted tobacco" means a

product that is comprised of 50% or more tobacco;

(jjj) "remuneration" includes all

payments, benefits or allowances paid or credited to or on behalf of each

employee who reports for work to or who is paid by an employer through an

establishment in the province and which, because of subsection 5(1) or

section 6

or 7 of the Income Tax Act (Canada)

are declared to be or are required to be included in income of a person for the

purpose of that Act and includes

(

i) salary and wages,

(ii) bonuses,

(iii) commissions or other similar amounts fixed by

reference to the volume of sales made or the contracts negotiated, and

(iv) other taxable allowances or benefits paid or

accrued to an employee or officer,

but does not include a pension, annuity or

superannuation benefit paid by an employer to a former employee after retirement

of that employee;

(kkk) "retail purchaser" means a person

who, as the context requires, acquires

(

i) tobacco not for resale but as a consumer,

(ii) a used vehicle not for resale but as a

consumer; or

(iii) gasoline not for resale but

(

A) for his or her own consumption or use or his

or her own intended consumption or use or for the consumption or use or the

intended consumption or use of other persons at his or her expense, or

(

B) on behalf of or as the agent for a principal

who wishes to acquire the gasoline for consumption or use by that principal or

by other persons at the expense of that principal;

(lll) "retail sale" means a sale to a retail

purchaser;

(mmm) "retailer" means a person who, as

the context requires,

(

i) sells tobacco at a retail sale and who is

either an HST registrant who has an establishment in the province, or who is

designated as a retailer by the minister, or

(ii) holds a licence authorizing that person to

sell gasoline or keep gasoline for sale directly to retail purchasers;

(nnn) "sale" means a sale for cash or on

credit or a sale where the price is payable by instalments, and includes a

barter, an exchange and a contract by which at a price or for other consideration

a person gives gasoline, tobacco or a vehicle to another;

(ooo) "tax" means a tax imposed by this

Act and includes all penalties, costs and interest that may be added to the

tax;

(ppp) "tax-exempt gasoline" means gasoline

that is not taxed under this Act;

(qqq) "taxable remuneration" means

(

i) with respect to the taxation year,

remuneration less the exemption threshold, or

(ii) in the case of a group of associated

corporations or a partnership, remuneration in excess of the amount allocated

to each employer in the group or the partnership by way of an allocation

agreement filed with the minister, as prescribed, but where the employers in a

group of associated corporations or a partnership do not file an allocation

agreement, taxable remuneration shall equal remuneration;

(rrr) "taxpayer" means a person liable to

pay, collect or withhold money by way of tax under this Act, and for the

purpose of this Act includes a collector and a deputy collector, an operator, a

retailer, an employer and a wholesaler;

(sss) "tobacco" means tobacco in all forms

in which tobacco is consumed, including cigars and snuff;

(ttt) "trailer" means a vehicle which has

no motive power of its own and includes a cargo container and a side car

attached to a motor cycle;

(uuu) "transporter" means a person other

than a consumer who transports tobacco in the province by any means, in an

amount greater than is prescribed;

(vvv) "unmarked tobacco" means tobacco in

packages, cartons or cases which are not marked or stamped as required under

this Act, or which are marked or stamped "Not for Sale in Canada",

"Canada Duty Not Paid", or which contain or are labelled with a

fraudulent, forged or false mark or stamp;

(www) "vehicle" means a vehicle propelled,

driven or controlled otherwise than by muscular power and includes an aircraft,

a boat, a ship, a trailer and a vessel;

(xxx) "warrant" includes a telewarrant;

and

(yyy) "wholesaler"

(

i) for the purpose of

Part III, means a person

who holds a licence issued under this Act authorizing that person to sell or

keep gasoline for sale otherwise than to retail purchasers, and

(ii) for the purpose of

Part IX, means a person who

sells tobacco in the province for the purpose of resale.

PART I

GENERAL

Liability for tax

(1) A

taxpayer's liability for tax arises when the tax is due and continues until it

is paid.

(2) A person who collects money by way of tax

under this Act holds that money in trust for the Crown and shall pay over the

money in the manner and at the time prescribed in the regulations.

(3) A person who withholds tax is liable for the

tax when it is required to be withheld and that liability continues until the

tax is paid over to the minister.

Return and

payment required

(1) A

person required to collect, withhold, or remit tax under this Act shall file a

return with the minister in the time and the manner prescribed by the

regulations and in the form required by the minister, and shall pay to the

Crown, at the time of filing the return, all tax payable in respect of the

period to which the return relates.

(2) Notwithstanding another provision prescribing

the time for filing a return or paying tax, the minister may vary the time,

manner and form by which a taxpayer or class of taxpayers is required to file a

return or pay the tax in respect of a period that the minister may specify.

Collection of tax

(1) The

minister may designate a person as an agent of the minister for the collection

of the tax imposed under Parts III and IX of this Act.

(2) The tax received by a collector shall be

accounted for, held in trust for and remitted to the minister at the time and

in the manner prescribed by the regulations.

(3) A person who collects or withholds tax shall

be considered to act subject to sections 77 to 80 and

section 83 of the Financial Administration Act.

(4) Amounts received by the minister under this Act

are part of the Consolidated Revenue Fund.

(5) Notwithstanding anything contained in another

Act, a collector or deputy collector collecting a tax or receiving remuneration

or an allowance under this Act is not, by reason only of collecting the tax or

receiving that remuneration or allowance, ineligible to be elected as a member

of or to sit and vote in the House of Assembly.

(6) Where a collector or deputy collector makes an

assignment of book debts, whether by way of specific or general assignment, or

in another manner disposes of a present or future right to collect book debts,

that assignment does not include the portion of the book debts that the collector

or deputy collector, as an agent of the Crown, charged the person to whom the

collector or deputy collector sold tobacco as tax under this Act and an

assignee or another person who collects the book debts shall be considered to

be a collector or deputy collector and shall collect, remit and account under

this Act for the unassigned portion of the book debts.

(7) Where, on the coming into force of this Act, a

person was a collector under the authority of a

collector's agreement or a provision of

an Act repealed by this Act, that

person shall be considered to be a collector under this Act.

Interest

(1) Where a person does not pay tax in the time and manner required under this Act,

interest shall be levied upon that tax and shall be collected at a rate and in

the time and manner prescribed in the regulations.

(2) Where a certificate is issued under

section 23,

interest under subsection (1) shall continue to be added to the amount of the

tax payable as contained in the certificate.

Remissions

(1) The

minister may remit a penalty or interest imposed under this Act where he or she

considers it appropriate to do so.

(2) A remission under this

section may be total or

partial, conditional or unconditional, and may be granted before or after a

suit or proceeding for the recovery of a penalty or of interest and before or

after a payment of it has been made or enforced by process or execution.

(3) Subsections 19 (3) and (4) of the Financial Administration Act apply, with

the necessary changes, to remissions under this section.

Trustee

8. Every

trustee in bankruptcy, assignee, liquidator, receiver, administrator or other

person administering, managing, winding-up, controlling or otherwise dealing

with property or business of a taxpayer

(

a) shall make returns and pay tax that the

taxpayer is required to make or pay; and

(

b) before distributing assets under his or her

control, shall obtain a clearance certificate from the minister certifying that

no tax, interest or penalties chargeable against or payable by the taxpayer

under this Act are outstanding.

Books and records

(1) A

person required to collect, withhold or remit tax under this Act shall keep and

maintain books and records relating to the taxpayer's business and returns and

shall make available within the province for inspection, examination and audit

under this Act, all books and records the minister considers necessary to

determine tax payable under this Act, or shall make other arrangements

satisfactory to the minister to make them available for inspection, examination

and audit under this Act.

(2) In addition to the requirements imposed under

subsection (1), a licensee under

Part III shall keep accounts in the required form of

(

a) all purchases, sales, deliveries, rebrandings,

transfers and losses of all grades of gasoline by that licensee in the province;

(

b) sales and deliveries by that licensee to

points outside the province;

(

c) sales and deliveries of tax-exempt gasoline;

and

(

d) quantities on hand and quantities used in the

province by that licensee

and a licensee shall make returns to the

minister in the form, in the manner and at the time prescribed by regulation.

(3) In addition to requirements imposed under

subsection (1), a wholesaler shall, at the time of making a sale of tobacco,

issue an invoice containing the information that the minister may prescribe.

(4) Where the books and records kept by a taxpayer

are, in the opinion of the minister, inadequate for the purpose of this Act,

the minister may, by written order, require particular books and records to be

kept by the taxpayer and the nature of entries to be made in the books and

records, and the taxpayer shall, within a reasonable time that the minister may

stipulate in the order, begin keeping the books and records as required.

(5) A person required under this

section to keep

records shall keep those records until authorized by the minister to destroy

them but in no case shall the records be destroyed before the expiration of 7

years after the year to which the records relate.

Confidentiality of records

(1) Books

and records received in the course of administering this Act shall be kept

confidential and a person who receives books and records shall not use or

disclose them except

(

a) for the purpose in relation to which they were

provided;

(

b) for the purpose of administering or enforcing

this Act or another Act of the province imposing a royalty, tax or fee, or

administering legislation relating to minerals;

(

c) under an agreement between the government of

the province and another government that provides for the exchange or

disclosure of information, returns or books and records that relate to the

administration or enforcement of a taxation Act;

(

d) for the purpose of conducting tax, fiscal and

economic policy analysis, or compiling statistical information by the government

(

e) for another purpose as authorized by the

Lieutenant-Governor in Council.

(2) Books and records received or handled under

this Act shall not be made available to anyone except those persons authorized

by the minister to do so and the minister shall not authorize anyone to receive

or handle books and records except for the purpose outlined in subsection (1).

Production of

documents

(1) The

minister may, with reasonable grounds, demand from a taxpayer a return, a

supplementary return or the production, including the production on oath or

affirmation, of books and records.

(2) The minister may specify a reasonable time

within which a demand under this

section is to be complied with, and a person

to whom a demand is made shall comply with the demand within the specified

time.

(3) A person who fails to comply with the

requirement of the minister under subsection (1) is liable, regardless of

whether that person is prosecuted or convicted under another provision of this

Act, to a penalty to be assessed by the minister not exceeding $500 for each

day during which the failure continues, and an amount assessed under this

section

shall be considered to be tax payable under this Act and is in addition to

another tax payable under this Act.

(4) For the purpose of administering and enforcing

this Act and the regulations, the minister may demand the production, including

the production on oath or affirmation of books and records from

(

a) a person, syndicate, trust or corporation; and

(

b) an agent or official of a person, syndicate,

trust or corporation

which is or may become a third party.

(5) Upon receipt of a demand from the minister, a

company which is filing a return shall, within the time specified in the

demand, verify the correctness of the return by the statutory declaration of

the person who files the return on behalf of the company.

Notice of assessment

(1) An

assessment becomes binding, notwithstanding an error, defect or omission in the

observation of a directory provision of this Act, when a notice of assessment

in writing is served upon a taxpayer personally or by expresspost certified

mail addressed to the taxpayer's current address in the records of the minister

or to another address where the taxpayer is known to reside or maintain an

office or place of business, and a mailed notice shall be considered to be

received on the day it would be received in the normal course of mailing.

(2) A person who receives a notice of assessment

shall pay the tax assessed within 30 days of the day on which the notice is

considered to have been received, regardless of an objection, proceeding or

appeal.

(3) An affidavit or other evidence that a notice

of assessment has been delivered shall be considered as proof that the notice

was received as provided in this section, in the absence of evidence to the

contrary.

(4) A copy of the notice of assessment may be

entered in evidence without proof of the office or signature of the person

appearing to have signed the notice.

(5) A person's liability for tax is unaffected by

this

section and notification under this Act is for administrative purposes

only and does not relate to liability.

(6) An assessment may be reviewed by a court of

law only as provided in this Act through a proceeding or an appeal in the Trial

Division.

Review of

objection

(1) A

person may object to an assessment of tax or other decision of the minister

under this Act within 90 days of receiving the notice of assessment or decision

of the minister by delivering a written notice to the minister objecting to

part or all of the assessment or decision.

(2) A notice of objection shall clearly identify

the matter objected to, setting out the reasons for objection, all the relevant

facts, and the remedy requested.

(3) The minister shall review the notice of

objection and

(

a) may deliver a demand for further particulars

to be provided to the minister within 30 days of the demand; and

(

b) shall deliver a reply to the person objecting,

confirming, amending or rescinding part or all of the matter objected to, in

the same manner provided for delivering a notice of assessment.

(4) The provisions of this Act pertaining to a

notice of assessment apply as appropriate to a reply from the minister, except

for a further objection under this section.

(5) Notwithstanding another provision of this Act,

the minister shall not delegate the authority to confirm, amend or rescind a

matter under review under this section.

Appeal to Trial

Division

(1) Part

or all of a reply from the minister in response to a notice of objection may be

appealed to the Trial Division by commencing a proceeding in the Trial Division

within 60 days of receiving the minister's reply.

(2) The costs of the proceeding are in the

discretion of the judge who hears the matter and he or she may make an order

respecting costs in favour of or against the Crown and may fix the amount of

them.

Appeal to Court

of Appeal

(1) Appeal

may be taken to the Court of Appeal from a decision of a judge of the Trial

Division upon a point of law raised upon the hearing before that judge.

(2) The rules governing appeals to the Court of

Appeal from a decision of a judge of the Trial Division apply to appeals under

this section.

Effect of delay

(1) A

notice of objection, proceeding or appeal does not affect the due date or

liability for payment of a tax, but where the tax is set aside or reduced

following review, the minister shall refund the excess of tax, together with a

penalty or interest paid, to the person entitled to it.

(2) Notwithstanding subsections (1) and 12 (2), the minister may agree to defer a payment of

tax, interest or penalty until after the final resolution of an objection,

proceeding or appeal, and the minister may make the deferral subject to

conditions the minister considers appropriate.

Action to recover

tax

(1) The

amount of tax may be recovered with costs, by action in the name of the

minister in a court, as debt due to the Crown.

(2) An action under subsection (1) shall be tried

without a jury and the court may make an order as to costs in favour of or

against the Crown.

Tax as lien

(1) Until

the amount of the tax required to be paid under this Act is paid, it is a first

lien in favour of the Crown on the entire assets of the estate of the taxpayer

and the lien has priority over all other claims of a person against the

taxpayer.

(2) The lien referred to in subsection

(1) attaches on the date the tax was due to the Crown and continues in force until

paid, or until a clearance certificate has been issued by the minister.

(3) A lien for tax in respect of real property is

considered to be a first mortgage ranking in priority over every grant, deed,

lease, or other conveyance and over every judgment, mortgage, or other lien or

encumbrance affecting the real property affected or the title to the real

property affected and the minister may discharge the lien by power of sale

under the Conveyancing Act.

(4) The registration of a grant, deed, lease or

other conveyance, or of a judgment, mortgage, or other lien or encumbrance,

whether the registration was before or after the time the lien was attached does

not affect the priority of the lien.

(5) The minister may register the lien in the

Registry of Deeds or the Personal Property Registry.

Estimating tax in

default

(1) Where

(

a) it appears from information or an inspection,

audit or examination of books and records that a taxpayer has failed to pay a

tax due as required by this Act;

(

b) in the opinion of the minister, the books and

records of a taxpayer do not substantiate a taxpayer's return or are inadequate;

(

c) a taxpayer fails or refuses to produce his or

her books and records or alleges that they have been lost or destroyed; or

(

d) information comes to the attention of the

minister that a person has failed to collect, report or pay a tax due,

the minister shall assess the amount of

tax payable to the Crown by a method of estimating the minister considers

appropriate .

(2) The amount assessed shall be considered to be

the tax payable by the taxpayer, unless varied under an objection, proceeding

or an appeal.

(3) The minister may revoke, amend, revise or make

a further assessment of the tax payable.

(4) Liability for tax shall not be affected by an

incorrect or incomplete assessment or where no assessment has yet been made.

(5) An assessment for tax payable shall include

interest from the time the tax should have been paid or collected until the tax

is paid, at a rate prescribed by the regulations.

Effect of default

(1) Where

a collector fails to make returns as required by the regulations or to pay over

to the minister a tax collected by the collector at the time prescribed by the

regulations, the minister may revoke the person's collector designation and

cancel the person's wholesaler's licence.

(2) Where an interjurisdictional carrier

(

a) does not make returns required under this Act

or does not pay to the minister a tax or fee required to be paid by that interjurisdictional

carrier at the time prescribed by the regulation for that payment; or

(

b) does not keep books and records required under

this Act,

the minister may suspend, cancel, place

conditions upon or refuse to grant registration to that interjurisdictional

carrier.

Refund

(1) Where

a person pays to the minister an amount which exceeds the amount of tax

required to be paid, the minister shall refund to that person the amount of the

overpayment, together with any interest which may be payable, at the rate and

in the manner prescribed by the regulations.

(2) Notwithstanding subsection (1), the minister

shall not make a payment under this

section unless the overpayment is disclosed

to or by the minister within 3 years from the date on which the overpayment is

made.

(3) Notwithstanding subsection (1), refund and

interest payments under this

section may be restricted or denied as prescribed

by regulation.

(4) Money paid under this

section shall be paid

out of the Consolidated Revenue Fund and shall be accounted for as a reduction

of revenues under this Act.

Set-off

22. Notwithstanding

section 21 , where a person owes money to the

Crown under this or another Act, the minister may require the retention, by way

of deduction or set-off, out of an amount that may be or becomes payable to

that person by the Crown, of an amount that the minister may specify and shall

inform the person of the deduction or set-off immediately.

Certificate of judgment

(1) Where

default is made by a person in the payment of a tax or a part of a tax that is

due or that has been collected on behalf of the Crown under this Act, the

minister may issue a certificate, stating the amount due and remaining unpaid

to the Crown and the name of the person by whom it is payable, and file the

certificate with the Registrar of the Supreme Court.

(2) When a certificate is filed with the Registrar

of the Supreme Court, it is of the same effect and all proceedings may be taken

on the certificate, as if it were a judgement of the Trial Division for the

recovery of the amount stated in the certificate against the person named in

the certificate.

Demand on third

party

(1) Where

the minister has knowledge that a person is or is about to become indebted to a

taxpayer who has not paid tax due under this Act, the minister may demand of

that person that the money otherwise payable by him or her to the taxpayer be

in whole or in part paid to the minister on account of the taxpayer's liability

under this Act.

(2) The receipt of the minister for money paid by

a person in response to a demand made under subsection (1) is a sufficient discharge

of the liability of that person to the taxpayer to the extent of the amount set

out in the receipt.

(3) A person paying money to a taxpayer after

receipt of a demand under this

section is personally liable to the Crown for

the lesser of

(

a) the amount of money paid to the taxpayer; and

(

b) the amount of tax payable by the taxpayer.

Director's

liability

(1) Where

a corporation fails to pay tax due, each director of the corporation at the

time of the failure is jointly and individually liable with the corporation to

pay the tax, whether or not the corporation has been prosecuted or convicted

for failure to pay tax due.

(2) A director of a corporation is not liable

under subsection (1) unless the minister has taken all actions that the

minister considers necessary against the corporation to recover the debt of

unpaid tax of the corporation.

(3) A director of a corporation is not liable

under subsection (1) where the director is able to show that he or she

exercised the degree of care, diligence and skill to prevent the failure that a

reasonably prudent person would have exercised in comparable circumstances.

(4) The minister may assess a director for tax due

under this

section independent of a prosecution of directors or the corporation

and, where the minister sends a notice of assessment to a director, this Act is

considered to apply, with the necessary changes, as if the director were the

taxpayer.

(5) An assessment under subsection (4) of an

amount payable by a person who is a director of a corporation shall not be made

more than 4 years after the person last stopped being a director of the corporation.

(6) For the purpose of this section, the minister

may apply payments made by or on behalf of the corporation under this Act to

any of the liabilities described under subsection (1).

(7) A director who satisfies a claim under this

section

is entitled to contribution from the other directors who were liable for the

claim.

(8) For the purpose of this section, a director

includes an owner, principal, officer or agent of the corporation who directed,

authorized, assented to, acquiesced to or participated in the failure, and a corporation

includes a partnership, business, association or person.

Exercise of recovery

powers

26. The

powers conferred by this Act for the recovery of taxes due or collected by this

Act by an action in court and by filing a certificate under

section 23 may be exercised separately, concurrently or cumulatively,

and the liability of a person to pay taxes due or to remit taxes collected is

not affected by the fact that a term of imprisonment has been served or a fine

or penalty has been imposed on or paid by him or her in respect of an offence

under this Act.

Third party

claims

(1) A

person, other than a person accused of an offence relating to a seizure under

Part

II, who claims an interest in a vehicle or other thing seized under those sections

as an owner, lienholder or holder of a like interest may, within 30 days after

that seizure, apply to a Provincial Court judge for an order under subsection (2).

(2) If, on the hearing of an application under subsection

(1), a Provincial Court judge is satisfied that the applicant has not been involved

in the offence resulting in the seizure and has not colluded with an accused in

relation to the offence, the judge may order that a seized vehicle or other

thing be returned to the applicant at a time and subject to conditions to be

specified by the judge.

(3) Where a Provincial Court judge orders that a

vehicle or other thing be returned to an applicant under subsection (2), he or

she shall order that applicant to post a bond or other form of security in an amount

satisfactory to the judge, but not less than the market value of the seized

item, pending a final resolution of proceedings commenced under this Act.

(4) Where a person from whom a vehicle or other

thing has been seized under

Part II is convicted of an offence under

section 32 , a bond or other security posted under subsection

(3) shall be forfeited to the Crown.

Notices generally

(1) Where,

under this Act or the regulations, a notice or document is required to be

served on, delivered to or sent to a taxpayer, it is sufficiently served,

delivered or sent

(

a) if it is delivered to an office of the

taxpayer in the province;

(

b) if it is sent by expresspost certified mail

addressed to the taxpayer at the address in the province shown on the most

recent return of the taxpayer filed under this Act or as last known to the

inspector; or

(

c) where no address of the taxpayer in the

province is known to the inspector, if it is sent by expresspost certified mail

addressed to the post office nearest to the place where the taxpayer has an establishment

in the province.

(2) Where, under this Act or the regulations, a

notice or document required to be served on, delivered to or sent to an

taxpayer is sent to that taxpayer by expresspost certified mail, the taxpayer

shall be considered to have received the notice or document on the day it would

be received in the normal course of mailing.

Penalty for

failure to file, collect or remit tax

29. The

minister may, notwithstanding another penalty imposed by this Act and without

the interposition of a court,

(

a) impose a penalty

equal to the amount of the loss sustained by the minister because of the

failure of that person to collect the tax;

(

b) impose a penalty of 10% of an amount of tax

payable or the amount of the loss in (a), upon a person who fails to pay tax to

the minister or collector, in the manner and within the time provided by this

Act or the regulations;

(

c) impose a penalty of not less than $100 nor

more than $5,000 upon a person who fails to make a return required by this Act

or the regulations in the manner and within the time provided for it; and

(

d) make an estimate of the amount of the loss

sustained by the Crown and the amount so estimated shall, for the purposes of

this Act, be considered to be the actual loss so sustained.

Excess losses

(1) A

person who has excess unverifiable losses, as determined by this section, shall

pay a penalty equal to the tax that would have been collectable by the person

if the quantity of gasoline that exceeds the prescribed threshold for an

unverifiable loss had been sold to a purchaser liable to pay tax under this

Part.

(2) For the purpose of this section,

(

a) the prescribed threshold for an unverifiable

loss is

(

i) for gasoline, other than any of the products

commonly known as jet fuel, diesel fuel, fuel oil, coal oil or kerosene, 0.25%

for each type of gasoline, and

(ii) for all other gasoline, 0.125%;

(

b) the amount of a person's unverifiable losses

of gasoline is the amount by which the person's available inventory exceeds the

amount of gasoline that the person verifies to have been sold, lost, destroyed,

stolen, contaminated, consumed or distributed; and

(

c) a person has excess unverifiable losses to the

extent that the person's unverifiable losses of gasoline for a period of 36

continuous months exceeds the amount equal to

(i) 0.25% for each type or grade of gasoline

referred to in subparagraph (a)(i), or

(ii) 0.125% for each type or grade of gasoline as

referred to in subparagraph (a)(ii)

of the person's available inventory of

gasoline for that period.

(3) For the purpose of this section, a person's

available inventory of gasoline for a period of 36 months is calculated using

the formula:

A+B-C

where

= the amount of the person's opening

inventory of gasoline at the beginning of the period;

= the amount of gasoline produced,

received or purchased by the person during the period; and

= the amount of the person's closing

inventory of gasoline at the end of the period.

Evasion of tax

31. A

person convicted of attempting to evade payment of all or part of tax payable

under this Act, by wilfully understating the value of a tax withheld or

payable, is liable, in addition to payment of the tax, without the

interposition of a court, to payment of a penalty to be assessed by the

minister of not more than 50% of the amount of the tax sought to be evaded.

Offences

(1) A

person who

(

a) refuses, neglects or fails to produce books

and records to a person entitled under this Act to inspect, examine or audit

the books and records;

(

b) refuses or neglects to answer a question which

(

i) is put to him or her by a person entitled

under this Act to direct questions, and

(ii) he or she is required under this Act and the

regulations to answer;

(

c) obstructs an inspector while that inspector is

making an inspection, examination or audit;

(

d) refuses, neglects or fails to file a return or

make a report required of him or her under this Act;

(

e) files or makes a false or misleading return or

report or gives false or misleading answers or information in a return or report

under this Act or the regulations, or makes a false or misleading answer to a

question described in paragraph (b);

(

f) violates paragraph 8 (b);

(

g) destroys books and records in contravention of

section 9 ;

(

h) destroys, alters, mutilates, conceals or

disposes of the books and records of a business or commercial activity in order

to evade tax;

(

i) makes or permits, or assents to or acquiesces

in the making of, false or misleading entries or omissions in the books or

records of a corporation in order to evade tax; or

(

j) wilfully evades or attempts to evade

compliance with this Act or the payment of tax

is guilty of an offence and is liable on

summary conviction to the penalty provided in this Act.

(2) A person who

(

a) not being a retailer, sells gasoline to a

retail purchaser;

(

b) being a retailer, sells gasoline to a retail

purchaser elsewhere than at the outlet specified in his or her retailer

licence;

(

c) being a wholesaler, sells gasoline for retail

sale to a person who is not a retailer; or

(

d) not being a wholesaler or retailer, sells

gasoline to a retailer

is guilty of an offence.

(3) A person contravenes this Act who

(

a) sells, keeps with intent to sell, purchases,

uses or keeps with intent to use marked gasoline for a purpose other than the

purpose in respect of which it is marked under the regulations;

(

b) adds to or introduces into marked gasoline a

substance, compound or preparation, or submits marked gasoline to a mechanical,

chemical or other process, for the purpose of removing the marking colouring

from the gasoline or of making the colouring invisible;

(

c) mixes or combines with marked gasoline another

type or grade of gasoline; or

(

d) marks gasoline in a manner other than that

prescribed by the regulations.

(4) A person contravenes this Act who has marked

gasoline, or a trace of the dye used to mark gasoline under

section 67 , in the fuel system of motorized equipment when

marked gasoline is not authorized under this Act or the regulations for

consumption in that motorized equipment .

(5) The fact that marked gasoline or a trace of

the dye used to mark gasoline that was found in a vehicle is the same gasoline

or trace that was found in the vehicle or other motorized equipment on another

occasion that constituted a contravention of this Act is not a defence in a

prosecution for a subsequent contravention of this Act if a period of more than

24 hours has elapsed since taking a sample of gasoline from that vehicle or

other motorized equipment.

(6) A person who holds, conducts, enters or

otherwise participates in a race-meeting held in the province contrary to this

Act or the regulations is guilty of an offence.

(7) A person is guilty of an offence who

(

a) not being a retailer, sells tobacco to a

retail purchaser;

(

b) not being a wholesaler, sells tobacco for

resale by a retail sale to a person who is not a retailer; or

(

c) not having a valid wholesaler's licence, sells

tobacco to a retailer.

(8) Every contravention, failure or false statement

described in subsection (7) that relates to a separate sale or transaction

constitutes a separate offence.

(9) A person who purchases, possesses, acquires,

transports, stores or sells contraband is guilty of an offence.

(10) An operator or other person who contravenes a

requirement of the Act in Parts I, II or VII is guilty of an offence.

(11) Where a person commits an offence under this

Act and the offence continues for more than one day, the person offending is,

for each day during which the offence continues, guilty of a further offence

and may be convicted and is liable to the same punishment as for the original

offence for each day during which the offence continues, and where an

information relating to an alleged offence under this Act sets out that the

alleged offence continued on several days or for a period of days it shall be

treated as and is considered to be separate information alleging a separate

offence for each of the days in the period.

Penalties

(1) A person who is guilty of an offence

under this Act is liable on

summary conviction to a penalty prescribed in the

Schedule.

(2) In addition to the fine imposed under subsection

(1), a court shall order the person found guilty of an offence to pay to the

minister the tax due under this Act and in default of payment, to a term of imprisonment

prescribed in the Schedule.

(3) In addition to the fines imposed under this

Act, a court shall order a person who defaults in the payment of those fines be

imprisoned for a period prescribed in the

Schedule and that period of imprisonment

shall be in addition to any other period of imprisonment imposed under this section.

(4) A period of imprisonment imposed under subsection

(3) shall be served consecutively to another period of imprisonment imposed in

the Schedule.

(5) In addition to the penalties which are imposed

under this Act, a court shall order the person found guilty of an offence under

subsection 32(9) to pay an additional fine equal to 3 times the amount of the

tax payable on the contraband had the contraband been tobacco marked under this

Act and purchased by a consumer.

(6) Sections 736 and 737 of the Criminal Code shall

not be applied in disposing of a complaint made or in imposing punishment for

an offence under this Act.

(7) Where a person is guilty of a continuing

offence under this Act, the person may be liable to a further fine of not more

than $10,000 for each day during which the offence continues, in addition to a

fine imposed under subsection (1).

Limitation period

(1) A

complaint may be made and proceedings taken on it within 7 years of the date of

the offence.

(2) Notwithstanding subsection (1), a complaint

may be made and proceedings may be taken on an offence referred to in

paragraphs 32(1 )( h), (

i) and

(

j) without limitation of time.

Crown bound

35. This

Act binds the Crown and an agent of the Crown.

PART II

INSPECTION AND COMPLIANCE

Appointment of

inspectors

(1) The

minister may appoint or designate a person or class of persons as inspectors

for the purpose of the administration and enforcement of this Act and may

authorize the inspectors to perform or exercise the duties and the powers

conferred upon the minister by this Act that the minister considers appropriate,

and the performance or exercise of those duties or powers by an inspector shall

be of the same effect as if they are performed or exercised by the minister.

(2) For the purpose of

Part IX, an inspector

includes a member of the Royal Newfoundland Constabulary and the Royal Canadian

Mounted Police.

Powers of inspectors

re: compliance

(1) An

inspector may, at all reasonable times, for a purpose related to the

administration or enforcement of this Act or the regulations, except Parts III

and IX, inspect or examine the premises, processes, books and records of a

person that the inspector may consider relevant for the purpose of determining

compliance with this Act, and the inspector may, without a warrant,

(

a) enter any premises where

(

i) a business is carried on,

(ii) any property, or books and records are or may

be kept, or

(iii) anything is or is suspected by the inspector

of being done or stored in connection with a tax imposed under this Act;

(

b) make copies, extracts, photographs or videos

the inspector considers necessary;

(

c) require the owner or person in charge of a

premises to give the inspector all reasonable assistance, including the production

of books and records as requested by the inspector, and to answer all proper

questions relating to the administration or enforcement of this Act and, for

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

with the inspector; and

(

d) require the owner or person in charge to make

available the means to generate and manipulate books and records that are in

machine readable or electronic form and any other means or information

necessary for the inspector to assess the books and records.

(2) Notwithstanding subsection (1), an inspector

shall not enter a dwelling-house without the consent of the occupant except

under the authority of a warrant issued under

section 38 .

Contravention of

Act suspected

(1) Where, during the course of an inspection

or examination under

section 37 , or otherwise

where an inspector believes on reasonable grounds that there has been a

contravention of this Act or the regulations, except Parts III and IX, the inspector

may, with a warrant issued under subsection (2), seize and take away any of the

books or records that may be required as evidence of a contravention and may retain

those documents until the time they are required in a court proceeding.

(2) A Provincial Court judge who is satisfied upon

oath or affirmation there are reasonable grounds for believing there is in or

on a business or private premises anything that may provide evidence with

respect to a suspected offence under the Act, except Parts III and IX, may

issue a warrant authorizing an inspector to enter the premises and to

(

a) search;

(

b) examine the contents of the premises and make

those inquiries that the inspector considers necessary; and

(

c) copy, extract, photograph, video, seize and

take away evidence, books and records

for the purpose of investigating the

suspected offence.

(3) The owner or person in charge of a business or

private premises referred to in this

section or a person there shall not

obstruct an inspector in the carrying out of his or her duties under this

section

as authorized by the warrant.

Determination of

compliance

Part III

(1) An

inspector may, at all reasonable times, for a purpose related to the

administration or enforcement of

Part III and any regulations made under it, inspect or examine the premises,

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

relevant for the purpose of determining compliance with that Part, and the

inspector may, without a warrant,

(

a) enter any premises where

(

i) a business is carried on,

(ii) any property, or books and records are or may

be kept, or

(iii) anything is or is suspected by the inspector

of being done or stored in connection with a tax imposed under this Act;

(

b) make copies, extracts, photographs or videos

the inspector considers necessary;

(

c) require the owner or person in charge of a

premises to give the inspector all reasonable assistance, including the production

of books and records as requested by the inspector, and to answer all proper

questions relating to the administration or enforcement of

Part III and any

regulations made under it and, for that purpose, require the owner or person in

charge to attend at the premises with the inspector; and

(

d) require the owner or person in charge to make

available the means to generate and manipulate books and records that are in

machine readable or electronic form and any other means or information

necessary for the inspector to assess the books and records.

(2) Notwithstanding subsection (1), an inspector

shall not enter a dwelling-house without the consent of the occupant except

under the authority of a warrant issued under

section 41 .

Samples

(1) Where it is reasonably necessary for

the purpose of ensuring compliance with

Part III and any regulations made under

it, an inspector may, at reasonable times without a warrant,

(

a) inspect the contents of a tank containing

gasoline including the gasoline supply tank of an internal combustion engine;

and

(

b) for the purpose of analysis, take a sample of

gasoline not exceeding a total volume of one litre per tank.

(2) An inspector acting under subsection (1) may

detain a vehicle or other mechanized equipment for the purpose of performing

the inspection or obtaining the sample referred to in that subsection.

(3) A sample taken under subsection (1) shall be

disposed of as the minister directs.

Contravention suspected

(1) A

Provincial Court judge who is satisfied by information upon oath or affirmation

that there are reasonable grounds for believing that there is on a premises,

vehicle or other motorized equipment or storage or bulk delivery facility

anything that there are reasonable grounds to believe will give evidence with

respect to an offence under

Part III and any regulations made under it may issue a warrant authorizing

an inspector named in the warrant to enter and search the premises, vehicle, or

other motorized equipment or storage or bulk delivery facility, and subject to

those conditions that may be specified in the warrant

(

a) make those inquiries and copies that are

considered necessary;

(

b) seize a sample of gasoline for evidence or for

analysis; or

(

c) seize the whole amount of gasoline and bring

it to a place of safe custody and keep it there until the court by its judgment

has disposed of it, after which, if it is confiscated, the inspector shall

dispose of it as the minister directs.

(2) Where an inspector seizes gasoline under this Act he or she may also seize and detain in safe custody a vehicle, or

other motorized equipment in which that gasoline was found or carried until

(

a) the matter has been disposed of and a tax

required to be paid under this Act has been paid; or

(

b) a charge has been laid under this Act and a

deposit or bond in an amount satisfactory to the minister has been provided by

the owner or operator of a vehicle or other motorized equipment so detained.

(3) Notwithstanding subsection (1), an inspector

may exercise the power of search referred to in that subsection without a

warrant if the conditions for obtaining the warrant exist but because of

exigent circumstances it would not be practical to obtain the warrant.

(4) For the purpose of subsection (3), exigent

circumstances include circumstances in which the delay necessary to obtain the

warrant might reasonably result in danger to human life or safety or the loss

or destruction of evidence.

Determination of

compliance-Part IX

42 .

(1) An

inspector may, at all reasonable times, for a purpose related to the

administration or enforcement of

Part IX and any regulations made under it,

inspect or examine the premises, processes, books and records of a person that

the inspector may consider relevant for the purpose of determining compliance

with that Part and any regulations made under it, and the inspector may,

without a warrant,

(

a) enter any premises where

(

i) a business is carried on,

(ii) any property, or books and records are or may

be kept, or

(iii) anything is or is suspected by the inspector

of being done or stored in connection with a tax imposed under that Part;

(

b) make copies, extracts, photographs or videos

the inspector considers necessary;

(

c) ascertain the quantities of tobacco purchased,

on hand, sold or used by that person, and whether the taxes collected or

payable by that person have been remitted or paid to the minister;

(

d) require the owner or person in charge of a

premises to give the inspector all reasonable assistance, including the production

of books and records as requested by the inspector, and to answer all proper

questions relating to the administration or enforcement of this Act and, for

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

with the inspector; and

(

e) require the owner or person in charge to make

available the means to generate and manipulate books and records that are in

machine readable or electronic form and any other means or information

necessary for the inspector to assess the books and records.

(2) Where, on an inspection under subsection (1),

an inspector discovers that a wholesaler or retailer is in possession of

contraband, and the inspector has reasonable and probable grounds to believe

that the possession is contrary to this Act, the inspector may seize, impound,

hold and dispose of the contraband in accordance with this

section and

section 45 .

(3) Notwithstanding subsection (1), an inspector

shall not enter a dwelling-house without the consent of the occupant except

under the authority of a warrant issued under

section 43 .

Contravention re:

contraband suspected

(1) For

the purposes of

Part IX and any regulations made under it, where an inspector believes

that a contraband offence has been committed, the inspector may, with a warrant

issued under subsection (2), enter commercial or private premises in the province,

and

(

a) search for contraband,

(

b) examine the contents of the commercial or private

premises and make those inquiries that the inspector considers are necessary,

(

c) seize, take away and hold anything which on

reasonable grounds is or appears to be contraband,

(

d) seize and take away books and records and

shall, upon the request of the owner of them, make copies of them and those

copies shall be returned to that owner as soon as is practicable, and

(

e) seize, take away and hold a vehicle or other

thing in which contraband is located in or on a commercial or private premises.

(2) A Provincial Court judge who is satisfied upon

oath or affirmation there are reasonable grounds for believing there is in or

on business or private premises anything that may provide evidence with respect

to a suspected contraband offence, may issue a warrant authorizing an inspector

to enter the premises and to

(

a) search;

(

b) examine the contents of the premises and make

those inquiries that the inspector considers necessary; and

(

c) copy, extract, photograph, video, seize and

take away evidence, books and records

for the purpose of investigating the

suspected contraband offence.

(3) The owner or person in charge of a premises or

a vehicle referred to in this

section or a person there shall not obstruct an

inspector in the carrying out of his or her duties under this

section as authorized

by a warrant.

(4) Notwithstanding paragraph (1)(a), an inspector

may exercise the power of search referred to in that paragraph without a

warrant where the conditions for obtaining the warrant exist but by reason of

exigent circumstances it would not be practical to obtain the warrant.

(5) In this section, "exigent

circumstances" include circumstances in which the delay necessary to

obtain a warrant might reasonably result in danger to human life or safety or the

loss or destruction of evidence.

(6) A person who has possession or control of more

than a prescribed quantity of tobacco may be required by the minister to show

proof of ownership satisfactory to the minister and proof that the tax has been

paid.

(7) Where a person is unable to provide proof of

ownership of tobacco as required by subsection (6), an inspector may seize the

tobacco.

(8) Tobacco seized under subsection (7) shall be

forfeited to the Crown to be disposed of as the minister directs unless, within

30 days after the seizure of the tobacco, the person from whom it has been

seized provides the minister with satisfactory proof of ownership.

Seizure of contraband

44. Where

an inspector believes on reasonable grounds that a person is in possession of

contraband, he or she may, without a warrant, stop and detain a vehicle which

he or she has reasonable grounds to believe that contraband is located and may

examine the contents of that vehicle, including cargo, books and records or

other things that may provide evidence that the vehicle is carrying contraband

and may

(

a) seize, take away and hold contraband;

(

b) seize, take away and detain a vehicle,

receptacle or container in which contraband is located; and

(

c) seize and take away books and records and

other things and retain them until they are produced in a court proceeding.

Disposal or

return of evidence

(1) Where

a person has been convicted of an offence under

section 32 with respect to tobacco seized under this Part,

that tobacco shall be destroyed at the time and in the manner directed by the

minister.

(2) A person from whom a vehicle or other thing

has been seized under

section 43 or 44 who is not convicted of an offence under

section 32 in relation to that seizure shall have that item

returned to him or her within 3 months from the date of the court proceedings

at which the finding of not guilty was made unless further proceedings by way

of appeal have been commenced.

(3) A person from whom tobacco seized as

contraband under subsection 42 (2),

section 43 or 44 who is not

convicted of an offence under

section 32 in

relation to that seizure and who establishes to the satisfaction of the

minister that the tobacco is not contraband and is his or her property may

apply to the minister to have that property returned to him or her or for

reimbursement of the value of that tobacco and the minister shall return that

property to him or her or pay out to him or her from the Consolidated Revenue

Fund an amount equal to the value of tobacco that was his or her tobacco at the

time of its seizure.

Telewarrant

(1) Where, in the opinion

of an inspector it would not be practical to appear before a Provincial Court

judge to apply for a warrant, the inspector may make the application by telephone,

facsimile or other means of telecommunication.

(2) Where the information on which an application

for a warrant is submitted by telephone, facsimile or other means of

telecommunication, the information shall be given under oath or affirmation,

and the oath or affirmation may be administered by telephone, facsimile or

other means of telecommunication.

(3) The information submitted by telephone,

facsimile or other means of communication shall include

(

a) a statement of the circumstances that make it

impracticable for the inspector to appear personally before a provincial court

judge; and

(

b) a statement of the inspector's grounds for

believing that a person has contravened this Act or that entry onto public or

private premises where a contravention of this Act is believed to occur has

been denied.

(4) The sworn or affirmed information submitted by

telephone, facsimile or other means of telecommunication by an inspector shall

specify the name of the person giving evidence, the facts ascertained and the

manner and location in which evidence was received, and a record of that

information shall be filed by the provincial court judge with the clerk of the

court over which the judge presides.

Search warrants

47. Notwithstanding

another

section of this Act, the provisions of the Criminal Code adopted by

section 6 of the Provincial Offences Act relating to the issuance of search

warrants may be invoked for the purpose of a search made under this Act in

respect of which a search warrant is required or is desirable.

Actions against

inspectors

48. A

judgment shall not be given against an inspector in a court of law with respect

to anything done by an inspector under this Act where the court is satisfied

there was reasonable cause for the action of the inspector and the action was

not malicious.

Affidavit as

proof

(1) In

a prosecution for failure to pay, withhold or remit tax, and in an action to

recover money, for which a person is liable under this Act, an affidavit by an

inspector sworn or affirmed before a person authorized to take affidavits, that

the inspector has charge of the appropriate books and records, and that after

careful examination and search of those records the inspector has been unable

to find that a return or payment required by this Act has been received in the

department, shall be accepted in a court, in the absence of evidence to the

contrary, as proof that the required return or payment has not been received or

paid.

(2) Proof that a notification under

section 12 has been mailed or served is, in the absence of evidence

to the contrary, proof that the amount stated is due.

(3) In a prosecution or proceeding under this Act,

an affidavit by an inspector as to facts necessary to establish that he or she

has complied with this Act is admissible, in the absence of evidence to the contrary,

as proof of the facts set out in the affidavit.

Evidence

50. In

a prosecution under this Act or the regulations,

(

a) where an inspector has made a copy of a

document, or books and records that have been seized, examined or produced

under this Act, the copy certified by the inspector to be a true copy is

admissible in evidence, without proof of the office or signature of the

certifying inspector, and has the same probative value as the original document;

(

b) it is proof, in the absence of evidence to the

contrary, that a liquid is gasoline and was used to propel a vehicle or other

motorized equipment when it is established that it was found in the fuel tank

or an auxiliary tank or a part of the fuel supply system of that vehicle or

other motorized equipment;

(

c) information on a package indicating that it

contains a tobacco product is, in absence of evidence to the contrary, proof

that the package contains a tobacco product;

(

d) a name or address on a package purporting to

be the name or address of the person by whom the tobacco product was

manufactured is, in the absence of evidence to the contrary, proof that it was

manufactured by that person; and

(

e) a certificate or report purporting to be signed

by an analyst stating that the analyst has analysed anything to which this Act

applies and stating the results of the analysis, is admissible in evidence in

any prosecution for an offence under this Act without proof of the signature or

official character of the person appearing to have signed the certificate or

report.

PART III

GASOLINE TAX

Tax levied

(1) A

person who acquires gasoline at a retail sale in the province shall pay to the

Crown at the time of the sale

(

a) on propane fuel grade of gasoline, a tax of

$0.07 per litre;

(

b) on gasoline for the operation of sea-going

vessels or boats, other than pleasure craft, a tax of $0.035 per litre;

(

c) on diesel fuel grade of gasoline, a tax of

$0.165 per litre;

(

d) on gasoline for use in an aircraft, a tax of $0.007

per litre; and

(

e) on all other grades of gasoline, a tax of

$0.165 per litre.

(2) In this section, "litre" means the

unit of measurement known as the litre and set out in

Schedule II of the Weights and Measures Act ( Canada ).

Tax reduction for

south coast Labrador

52. Notwithstanding

paragraph 51 (1)(e), a person who acquires

gasoline, other than diesel fuel, at a retail sale in south coast Labrador

extending from the border with the province of Quebec to and including the

community of Red Bay, in respect of the consumption or use of the gasoline in

that area, shall pay to the Crown at the time of the sale a tax of $0.15 per

litre.

Gasoline brought

into province

(1) A

person other than an interjurisdictional carrier, who brings gasoline into the

province, or who receives delivery of gasoline in the province, for that

person's own consumption or use as a consumer, shall immediately report the

matter in writing to the minister.

(2) A person who is required to make a report under

subsection (1) shall supply with the report to the minister the invoice for the

gasoline and all other pertinent information that may be required by the

minister in respect of the consumption or use of the gasoline.

(3) A person who is required to make a report

under subsection (1) shall pay to the Crown, at the same time as the report, a

tax in the amount that would be payable if the gasoline had been purchased at a

retail sale in the province by that person.

(4) This

section does not apply to a person

visiting the province as a tourist who brings into the province gasoline in

accordance with and not exceeding the quantity prescribed by the regulations.

Gasoline held for

consumption

54. A

person who has or keeps in that person's possession or under that person's

control gasoline in respect of which no tax has been paid under this Act and

that he or she has, keeps or controls for himself or herself as a consumer

shall immediately pay to the Crown a tax in the amount that would be payable if

the gasoline had been purchased at a retail sale in the province by that

person.

Gasoline not purchased

at retail sale

(1) A

person who consumes or uses gasoline originally acquired by that person at a

sale other than a retail sale and in respect of which no tax has been paid

under this Act shall, as soon as that person consumes or uses that gasoline,

pay to the Crown a tax in the amount that would be payable if the gasoline had

been purchased at a retail sale in the province by that person.

(2) Where a person who is not a collector acquires

tax-exempt gasoline for resale, that person shall report that fact to the

minister.

(3) Where a person makes a report to the minister

under subsection (2) and

(

a) sells a quantity of that gasoline for use in

an internal combustion engine in circumstances in which it would stop being

tax-exempt gasoline; or

(

b) consumes or uses a quantity of that gasoline

in an internal combustion engine in circumstances in which it would stop being

tax-exempt gasoline,

that person shall collect and pay over, or

pay, as the case may require, to the Crown, a tax in the amount that would be

payable if the gasoline had been purchased in the first instance by that person

at a retail sale in the province.

Tax

(1) Notwithstanding

section 51 , an interjurisdictional carrier

shall pay to the Crown a tax which shall be calculated by the following formula:

tp = kms

x tr

d/l

where

= the tax payable by the

interjurisdictional carrier;

kms

= the number of kilometres travelled within

the province by the fleet during the reporting period;

= the total kilometres travelled in all

jurisdictions by the fleet during the reporting period;

= the total number of litres of gasoline

consumed by the fleet during the reporting period; and

= the tax rate per litre of gasoline set

out at paragraph 51 (1)(e).

(2) For the purpose of collecting the tax referred

to in subsection (1), an interjurisdictional carrier who acquires gasoline at a

retail sale in the province shall pay tax to the Crown as required in

section 51 .

(3) Where the amount of tax paid under subsection

(2) during the reporting period exceeds the amount due under subsection (1), the

minister may refund the difference to the interjurisdictional carrier or may

pay over the difference to another jurisdiction which has entered into an

agreement with the minister under

section 72 .

(4) Where the amount of tax paid under subsection

(2) is less than the amount due under subsection (1), the interjurisdictional

carrier shall pay the difference in amount to the minister at the time

prescribed by regulation for filing the return for that reporting period.

(5) This

section shall not apply in relation to

gasoline consumed by an interjurisdictional motor vehicle operating under a single

trip registration granted as prescribed by regulation.

No double tax

57. Sections

51 to 56 do not

authorize the imposition of a tax under this Act more than once upon the same

gasoline.

Power to issue

licences

(1) The

minister may issue to a person

(

a) a retailer licence authorizing that person to

sell or keep gasoline for sale directly to retail purchasers at that outlet

only as may be specified in that licence; or

(

b) a wholesaler licence authorizing that person

to sell or keep gasoline for sale otherwise than directly to retail purchasers.

(2) Where in the minister's sole discretion the

minister considers it desirable to do so, the minister may issue both a

retailer licence and a wholesaler licence to a person.

(3) The minister may, for cause, refuse to issue a

licence to a person.

Application for

licences

59. An

application for a licence shall be made to the minister on a form to be

supplied by the minister and be accompanied by the fee that may be set by the

minister in respect of the licence which the application is made for.

Power to suspend,

etc.

60. The

minister may, for cause,

(

a) suspend or cancel a licence;

(

b) limit the operation of a licence as to the

kind of gasoline to be sold by the licensee or as to the location where

gasoline may be sold or apply both of those limitations in respect of the

operation of a licence; or

(

c) limit the operation of a licence in another

manner.

Registration

(1) An

interjurisdictional carrier shall not operate or allow another person to

operate an interjurisdictional motor vehicle in the province unless

(

a) that vehicle is registered with the minister

as prescribed by regulation; and

(

b) there is displayed in or on the

interjurisdictional motor vehicle in the manner prescribed by regulation, valid

plates, stickers or markers issued under the regulations.

(2) An application for registration shall be

accompanied by the fee set by the minister and information that may be

prescribed by regulation.

(3) The minister may, for cause, suspend, cancel,

place conditions upon or refuse to grant registration.

(4) Registration shall expire on a date prescribed

by regulation.

(5) Where an interjurisdictional carrier no longer

uses a registered interjurisdictional motor vehicle or sells, transfers,

exchanges or disposes of an interjurisdictional motor vehicle, registration of

that vehicle shall cease.

(6) Where registration ceases under subsection (5),

the evidence of registration issued with regard to that vehicle shall be

returned to the minister within 15 days of the date of that registration

cessation.

Saving provision

(1) Nothing

in this Part requires a person to obtain either a retailer or wholesaler

licence merely because that person sells furnace oil, stove oil, kerosene,

naphtha, butane gas, propane gas or liquefied petroleum gas for purposes other

than use in the generation of power in internal combustion engines.

(2) A person mentioned in subsection (1) shall not

rebrand products described in subsection (1) and sell them for consumption in

internal combustion engines, whether as taxable gasoline or otherwise, unless

that person is in possession of a wholesaler licence issued under

section 58 .

(3) Notwithstanding subsections (1) and (2), a

person selling products under this

section shall keep those books and records

the minister may, by regulation, prescribe, and shall be subject to Parts I and

II of this Act and any regulations made under those Parts.

(4) A person selling products under this

section shall

provide to the purchaser an invoice containing the information that may be required

under the regulations.

Prohibited sales

of gasoline

(1) A

person shall not offer for sale, keep for sale, or sell gasoline in the

province, except under the authority conferred by a licence issued to that

person.

(2) A wholesaler shall not sell gasoline at a

retail sale, unless the wholesaler also holds a valid retailer licence.

(3) A wholesaler shall not sell gasoline to a

person for resale at a retail sale, unless that person holds a valid retailer

licence issued to that person.

(4) A retailer shall not sell or keep gasoline for

retail sale unless the gasoline has been purchased by that retailer from a

wholesaler or another retailer.

(5) A wholesaler shall not sell to a person a

smaller quantity of gasoline than 180 litres.

Retailer to post

licence

64. A

retailer shall post the retailer's licence and keep it posted in a conspicuous

place at the retail outlet or in other places that may be prescribed by the

regulations.

Automatic revocation

of licence

65. Where

a licensee stops carrying on a business of selling gasoline in respect of which

a licence was issued to the licensee under this Act, that licence is

automatically revoked and shall be returned, by the person to whom it was

issued or that person's personal representative, to the minister within 15 days

of the date that business stops being carried on.

Levying the tax

(1) At

the time of a sale of gasoline to a retail purchaser the person making the sale

shall levy and collect the tax imposed by this Act and shall, in accordance

with the regulations, pay over the tax so collected to the collector from whom

the gasoline was acquired or, where the minister so requires, directly to the

minister.

(2) Where money by way of tax is collected on

gasoline that was sold to a retail purchaser but acquired by the seller

otherwise than from a collector, that money shall be paid over to the minister

at the time and in the manner prescribed by the regulations.

(3) A person selling gasoline to a retail

purchaser shall, on the request of the retail purchaser, deliver to the retail

purchaser an invoice showing the number of litres of gasoline sold to the

retail purchaser and the amount of the tax paid.

Marking gasoline

67. For

the purposes of distinguishing gasoline used or to be used for specified

purposes, the minister may order a kind of gasoline to be marked in accordance

with the regulations.

Gasoline delivery

68. The

driver of a vehicle engaged in transporting or delivering gasoline

(

a) shall have in his or her possession in that

vehicle at all times an invoice or bill of lading respecting the products being

carried on or by the vehicle and correctly identifying each product and the

quantity of each product loaded;

(

b) shall, when requested to do so by an

inspector, produce the invoice or bill of lading mentioned in paragraph (a);

and

(

c) shall not place tax-exempt gasoline in the

storage tank of an internal combustion engine unless the owner or operator of

the engine produces a tax-exempt permit issued under the regulations that

authorizes the use of tax-exempt gasoline in that piece of equipment.

Powers re interjurisdictional

carrier

(1) For

the purpose of ascertaining whether an interjurisdictional motor vehicle is

registered or a tax or fee has been paid under this Act, an inspector may

(

a) demand proof of registration; and

(

b) stop, enter and inspect an interjurisdictional

motor vehicle.

(2) Where an inspector, on reasonable grounds

believes that an interjurisdictional carrier has not paid a tax or fee required

to be paid by the interjurisdictional carrier under this Act, he or she may

stop and detain an interjurisdictional motor vehicle operated by or for that

interjurisdictional carrier until the tax or fee has been paid.

(3) Where an interjurisdictional carrier referred

to in subsection (2) is carrying goods or passengers, the inspector shall allow

the vehicle to proceed to its destination and the inspector may require the operator

of the vehicle to report to another inspector at that destination and that

other inspector may detain the vehicle following its unloading or discharge of

passengers until the tax or fee has been paid.

Meters required

(1) The

minister may require a collector or another person dealing with gasoline to

install at that person's expense automatic meters or other equipment approved

by the minister, and that person may use the information supplied by the

approved meters or equipment to establish the quantities of gasoline refined,

acquired, delivered or sold.

(2) The minister shall be notified immediately by

the person who operates equipment approved under subsection (1) when meter

heads are changed on the equipment and that person shall at the time report the

old and new meter readings to the minister.

Sealed equipment

(1) The

minister may place a seal in the approved form or a lock on a meter or

mechanical injection system, drum or receptacle containing gasoline,

notwithstanding where that meter, system, drum or receptacle is located.

(2) It is a offence to remove an approved seal or

lock placed on a meter, mechanical injection system, drum or receptacle without

first obtaining authority from the minister to do so.

Agreements

72. The

minister, with the approval of the Lieutenant-Governor in Council, may, on

behalf of the province, enter into reciprocal agreements with the Government of

Canada, another province of Canada or a state of the United States of America

(

a) to determine the amount of gasoline tax

properly due to or by each of those governments as a result of interjurisdictional

carrier operations; and

(

b) for collection, payment, refund or allocation

of gasoline tax between the province and the government or governments to these

agreements,

and may enter into agreements not

agreements.

PART IV

HEALTH AND POST-SECONDARY EDUCATION TAX

Imposition of tax

(1) Every

employer shall pay monthly to the Crown at the time and in the manner

prescribed, a tax at the rate of 2% of taxable remuneration paid to employees

of that employer.

(2) Where an employer is

(

a) a registered charity for the purpose of the Income Tax Act ( Canada );

(

b) considered by the minister to be a private

sector non-profit organization,

the remuneration paid to employees at each

establishment shall be considered to be paid by a separate person for the

purpose of calculating tax.

Ceasing to have

an establishment

74. Where

an employer ceases to have an establishment in the province during a month, the

employer shall, with respect to that month, pay the tax in the same manner as

though the month ended on the date on which the employer ceased to have an

establishment in the province.

PART V

HORSE RACING TAX

Payment of tax

75 . A person who places a bet shall pay to

the minister a tax equal to 11% of the amount of money deposited by him or her

with the operator when making the bet.

Collection of tax

76. An

operator shall collect the amount of the tax by deducting it from the money

deposited with the operator for making a bet, before recording it or applying

it to the making of the bet.

Remuneration of

tax collectors

77. The

minister may allow operators remuneration for collecting and forwarding the tax

that may be prescribed in the regulations.

PART VI

INSURANCE COMPANIES TAX

Imposition of tax

(1) A

company shall pay to the minister for the use of the province, a tax equal to

4% of the gross premiums that become payable to it during the year in respect

of business transacted by it in the province, other than premiums in respect of

reinsurance ceded to the company by other companies and premiums or other

consideration becoming payable to the company in respect of annuities, after

deducting from those gross premiums a sum equal to

(

a) the cash value of dividends paid or credited

to policyholders in that year; and

(

b) the premiums returned by the company in that

year.

(2) Notwithstanding subsection (1), a company

which administers a contract of insurance under an administrative services only

plan or any other financial arrangement, shall pay a tax equal to 4% of the

value of benefits paid out of the plan as well as any dues, assessments, and

administrative costs or fees charged to the plan holder, policy or program of

insurance.

(3) This Part does not apply to premiums

receivable in respect of contracts of marine insurance.

PART VII

MINING AND MINERAL RIGHTS TAX

Definition

79. For

the purpose of this Part, "year" means a fiscal year.

Mining tax

80. An

operator is liable for and shall pay to the minister, in the manner and at the

time prescribed by regulations, an annual tax of

(a) 15% of the taxable income determined under subsection

83 (1), less the credit determined under

section

84 ,

plus

(b) 20% of the amount taxable as determined under

subsection 83 (2).

Gross revenue

(1) Gross

revenue is the revenue derived by an operator from the sale of minerals as a

result of mining operations in a year and includes

(

a) if those minerals are processed before the

sale, the income from processing;

(

b) gains or losses resulting from

(

i) the fixing of a price for output of a mine

before delivery, and

(ii) other hedging transactions related directly to

the proceeds of the output of a mine;

(

c) insurance proceeds for which related premiums

are deductible or deducted;

(

d) government assistance related to revenue;

(

e) withdrawals from a financial assurance fund

established under paragraph 10(3)(

d) of the Mining

Act ; and

(

f) other revenue that may be prescribed by

regulation.

(2) Notwithstanding subsection (1), where an

operator receives revenue from a person with whom he or she does not deal at

arm's length, the revenue attributed to the transaction for tax purposes shall

be adjusted by the operator to reflect an arm's length fair market receipt and,

for the purpose of subsection (1) but subject to subsection (3), the gross

revenue from that transaction shall be the fair market value as determined by

the operator.

(3) A determination of fair market value by an

operator may be reviewed by the minister, who may impose his or her own

determination of fair market value and, in the absence of evidence to the

contrary, the minister's determination of fair market value shall be considered

to be the gross revenue from that transaction and, for the purpose of subsection

(4), the minister's determination is considered to have been made at the time

of the transaction.

(4) Where the minister's determination of fair

market value under subsection (3) is greater than the determination of the

operator under subsection (2), the minister may make an assessment of tax due,

including interest, under this Act.

Net income

(1) The

net income of a taxpayer shall be ascertained by deducting from the gross

revenue of the taxpayer

(

a) all expenses and outlays directly attributable

to and reasonably incurred in mining operations and in processing and smelting;

(

b) depreciation expenses that may be prescribed

by regulation respecting vehicles, machinery, plant, equipment, buildings and

other assets of a capital nature used in mining operations and in processing

and smelting;

(

c) an amount for unamortized pre-production

expenditures divided by the estimated remaining life of the mining operation;

(

d) all money paid to the Crown during the year by way of rentals,

royalties, charges and other payments for the right to engage in mining

operations which generate all or part of the gross revenue, but not a payment

by way of taxation;

(

e) contributions to a financial assurance fund established under paragraph

10(3)(

d) of the Mining Act ; and

(

f) those amounts respecting those items that are

prescribed by regulation.

(2) In addition to the amounts deductible under

subsection (1), an operator may deduct exploration expenditures exclusively

incurred by the taxpayer anywhere in the province before the commencement of

commercial production, but only to the extent that these expenditures have not

been deducted in a previous year.

(3) In addition to the amounts deductible under

subsection (1), an operator may deduct an amount by way of return on capital

directly and necessarily employed by the taxpayer in processing, in an amount or

at a rate that the Lieutenant-Governor in Council may prescribe by regulation,

and the Lieutenant-Governor in Council may prescribe different amounts or rates

for different types of processing and smelting assets.

(4) An amount determined under subsection

(3) shall not exceed 65% of the portion remaining after deducting from the gross

revenue the amounts deductible under subsections (1) and (2).

(5) Notwithstanding subsections (1) and (2), where

an operator incurs an expenditure payable to a person with whom that operator

does not deal at arm's length, the expenditure deductible under this

section shall

be adjusted by the operator to reflect an arm's length fair market value of the

expenditure and, for the purpose of subsections (1) and (2), the fair market

value of the expenditure shall be the fair market value as determined by the

operator.

(6) A determination of the fair market value of an

expenditure by an operator may be reviewed by the minister, who may impose his

or her own determination of fair market value and, in the absence of evidence

to the contrary, the minister's determination of the fair market value of the

expenditure shall be considered to be the expenditure incurred by the operator

and, for the purpose of subsection (7), the minister's determination is

considered to have been made at the time of the expenditure.

(7) Where the minister's determination of fair

market value under subsection (6) is less than the determination of the

operator under subsection (5), the minister may make an assessment of tax due,

including interest, under this Act.

(8) Amounts

deductible under this

section shall be reduced by related government

assistance.

(9) Notwithstanding

another provision of this section, the following shall not be deductible for

the purpose of calculating net income:

(

a) tax imposed under this Act;

(

b) other tax imposed upon revenue, income,

profits or capital by any jurisdiction;

(

c) legal or professional fees incurred with

respect to an objection or an appeal in respect of an assessment of a tax

referred to in paragraphs (

a) and (b);

(

d) interest, dividends and all other costs of

financing including the acquisition and maintenance of equity financing;

(

e) social and recreational costs, other than at

the mine site;

(

f) bad debts;

(

g) costs incurred for incorporation, organization

or reorganization;

(

h) a payment under

Part IX of the Excise Tax Act ( Canada );

(

i) royalties or similar payments, other than

those referred to in paragraph (1)(d);

(

j) payments made under an impacts and benefits

agreement, except where that payment represents fair market value for a good or

service which would otherwise be an eligible expenditure under paragraph

(1)(a), if not for this paragraph;

(

k) a payment for loss, costs, liability or damages

based in tort with respect to a third party;

(

l) costs incurred or damages paid as a result of

a negligent act or omission or as a result of a wilfully damaging act;

(

m) costs incurred or a fine paid as a result of a

strict liability imposed by, or

an act or omission which is a breach of laws,

rules, regulations, permits, licenses, orders or other directives of a

government, government agency, or a court;

(

n) an expenditure on account of, instead of, in

satisfaction for or in relation to paragraphs (k), (

l) and (m);

(

o) charitable donations, and gifts to the Crown;

(

p) depreciation, other than as specified in

paragraph (1)(b);

(

q) depletion or exhaustion;

(

r) the cost of capital assets; and

(

t) another expenditure prescribed by regulation.

Taxable income

(1) For

the purpose of paragraph 80 (a), the taxable

income shall be net income less the greater of

(a) 20% of the net income, if positive, or

(

b) amounts paid to a person referred to in

paragraph 85 (1)(a).

(2) For the purpose of paragraph 80 (b), the amount taxable shall be

(a) 20% of the net income, if positive, minus

(

b) amounts paid to a person referred to in

paragraph 85 (1)(a).

Corporate income

tax credit

(1) For

the purpose of paragraph 80 (a), an operator

may, in respect of the current tax year, credit against the tax otherwise

payable, an amount in respect of corporate income tax paid to the province in

the year as determined under this section.

(2) Subsection (1) applies only for 10 consecutive

years beginning in the year in which commercial production is achieved in the

mine from which the mining income is derived, but the cumulative amount of the

deduction shall not exceed $20 million.

(3) A credit under subsection (1) is applicable

only if all depreciation and exploration expenses available in the year have

been utilized by the operator.

(4) The amount of the credit in respect of

corporate income tax for a year shall be the lesser of

(a) $2 million, and

(

b) amounts payable under the Income Tax Act, 2000 for the year in respect of mining operations.

Mineral rights

tax

(1) A

person who receives,

(

a) from an operator or other person,

consideration including a lump sum, periodic payment, rent, royalty or other

income, which is contingent upon production of a mine, or computed by reference

to the amount or value of production from a mining operation, for the grant or

assignment of any right issued under the Mineral

Act, including an exploration license, a mining lease and any claim, permit

or right held under them; or

(

b) consideration under

section 7 of the Undeveloped Mineral Areas Act , by way of

payment to that person as owner of an undeveloped mineral area,

is liable for and shall pay to the Crown,

in the manner and at the time set out in the regulations, an annual tax of 20%

of the net revenue received for the consideration during that year.

(2) Notwithstanding subsection (1), where a person

receives consideration referred to in that subsection from an operator, and the

net revenue of the person in that year as determined under subsection (4) is

$100,000 or less, no tax is payable under this section.

(3) Notwithstanding subsection (1), where net

revenue in a year is greater than $100,000 and less than $200,000, the tax

payable under this

section shall be the product of

(

a) net revenue minus $100,000, times

(b) 40%.

(4) For the purpose of this section, "net

revenue" means the total value of consideration received under paragraphs

(1)(

a) and (b), less

(

a) legal expenses incurred by the person in the

collection of the consideration referred to in subsection (1);

(

b) exploration expenditures incurred by the

person;

(

c) consideration paid by the person who receives

the royalty payment to another person, where that other person is subject to

the tax referred to under subsection (1) in respect of the consideration

received; and

(

d) an amount that may be prescribed by

regulation.

Withholding

(1) A

person who pays the consideration referred to in

section 85 shall deduct and

withhold 20% of the value of that consideration and shall account for and pay

over the amount to the minister at the time and in the manner prescribed by

regulation.

(2) A person who withholds tax under subsection

(1) is relieved of all liability at law for the obligation to pay the taxpayer to

the extent of the amount withheld, notwithstanding the terms of a statute, agreement,

lease, contract or other document which binds the person to make the payment to

the taxpayer.

(3) A person who withholds tax under subsection

(1) is considered to hold the tax in trust for the Crown and shall pay over the tax

in the manner and at the time required by the minister.

(4) A person who fails to make a withholding under

subsection (1) shall be personally liable, without the interposition of a

court, to a penalty under this Act in an amount equal to the amount which was

not withheld.

(5) A penalty under this

section is not deductible

under

section 82 or

85 .

(6) A penalty under this

section does not relieve

the liability of a person subject to the tax under

section 85 .

Application and

construction of prior statutes and contracts

(1) The tax imposed under

section 80 applies to every operator but, notwithstanding this

Act, where a tax or royalty is payable to the Crown for the right to engage in

mining operations or in respect of income from those mining operations

(

a) by a person under

an Act of the province

relating specifically to that person;

(

b) by a person under an agreement or lease

ratified or confirmed by a statute; or

(

c) by an operator who has assumed the obligation

to pay that tax or royalty under an agreement entered into with that person,

the tax or royalty imposed by the Act,

agreement or lease shall be payable instead of the tax imposed under

section 80 .

(2) Nothing in

an Act, or in a grant, deed,

licence, contract, agreement or other document, whether or not that grant,

deed, licence, contract, agreement or other document has received ratification

by the Legislature, or been passed, given, made or entered into before December

19, 2002, shall be construed so as

(

a) to defeat the liability of a taxpayer to pay

the tax required to be paid by

section 85 ; or

(

b) to enable a person who is liable for the tax

under

section 85 , to require the operator from

whom that person receives consideration,

(

i) to pay the tax in its place, or

(ii) to indemnify that person against the tax; or

(

c) to impose liability on the Crown for loss or

damage sustained,

and, where

an Act, grant, deed, licence,

contract, agreement or other document is in conflict with this section, this

section shall prevail.

PART VIII

RETAIL SALES TAX

Tax

(1) A

person who acquires a used vehicle at a retail sale in the province from a

person other than an HST registrant shall, in respect of the use of that vehicle,

pay to the Crown at the time of the sale a tax at the rate of 14% of the purchase

price of it.

(2) A person who brings into or receives delivery

of a used vehicle in the province where that vehicle was acquired from a person

who is not a HST registrant is liable for and shall pay the tax required under

this Part at the time the vehicle enters the province.

Trade-in

89. Where

a person who acquires a used vehicle at a retail sale turns in to the seller or

to another person selling at a retail sale, as part or full payment of the

purchase price of the used vehicle being acquired, another used vehicle on

which he or she has paid a tax under this Act or in respect of which he or she

is under this

section or the regulations not liable to pay tax, that person

shall pay the tax on the difference between the purchase price of the used

vehicle being acquired and the value allowed by the seller or other person on

the used vehicle turned in to him or her.

Determination of

value

(1) Where

the minister is of the opinion that the purchase price charged at a retail sale

is not the true value of the used vehicle sold at a retail sale, the minister

may determine the true value, and the value so determined shall be taken for

the purposes of assessing the tax under this Act.

(2) Where a consumer acquires a vehicle from a person who is not an HST

registrant, the purchase price or the true value on which tax is required to be

paid under this Act is the amount determined by the valuation system prescribed

by regulation.

Effect of return

91. Where

tax has been paid in respect of the consumption or use of a used vehicle

purchased at a retail sale and, within one year from the date that the tax

became payable, a used vehicle is returned to the seller, a refund of the tax

shall be paid to the retail purchaser, proportionate to the amount of the

purchase price that the retail purchaser is entitled to have refunded to him or

her by the seller when the used vehicle is returned to the seller.

PART IX

TOBACCO TAX

Tax levied

(1) A

person who acquires tobacco at a retail sale in the province shall, in respect

of the consumption or use of that tobacco, pay to the Crown at the time of the

sale a tax calculated in accordance with

section 98 .

(2) A person who, as a consumer, brings tobacco

into the province or receives delivery of tobacco in the province shall, except

as prescribed by regulation, immediately report and pay to the Crown the tax

that would be payable had that tobacco been acquired at a retail sale in the

province.

Permit

(1) A

person shall not bring tobacco or cause tobacco to be brought into the province

in an amount greater than is prescribed by regulation without holding a permit

issued under this section.

(2) The minister may issue a permit in the manner

prescribed by regulation authorizing a person to bring tobacco in an amount

greater than is prescribed into the province and may set those reasonable restrictions

and conditions upon the permit with respect to the marking or stamping of

tobacco, collection and payment of tax or other things that the minister

considers necessary.

(3) The minister may for cause refuse to issue or

may cancel or suspend a permit issued under this

section to a person who the

minister is satisfied or has reason to believe shall not comply or has not complied

with this Act or the regulations.

(4) An application for a permit under this

section

shall be made in the manner prescribed by the minister and shall be in the form

and accompanied by the fee set by the minister.

Transporter

duties

(1) A

person who holds a permit issued under

section 93

shall provide a notarized true copy of that permit to a transporter who transports

tobacco to, from or for him or her.

(2) A transporter shall at all times and in

accordance with the regulations, keep in the vehicle used to transport the

tobacco the permit copy referred to in subsection (1), a uniform manifest and books

and records that are prescribed by regulation.

Prohibition

(1) A

person shall not sell or give unmarked tobacco to

(

a) a consumer who is required to pay tax; or

(

b) a wholesaler or retailer who is not authorized

under this Act to possess unmarked tobacco.

(2) A person shall not mark packages, cartons or

cases of tobacco unless he or she has a permit to mark tobacco issued under

section

96 .

(3) A person shall not sell, give, possess or mark

a package of cigarettes that contains 19 or less cigarettes.

Permits

(1) A

person shall not possess, sell or purchase unmarked tobacco unless he or she is

authorized under the regulations to possess unmarked tobacco.

(2) The minister may issue a permit to mark

tobacco packages, cartons or cases to a manufacturer of tobacco and tobacco

products.

(3) The minister may issue a permit to stamp

tobacco packages, cartons or cases to a retailer or a licensed wholesaler who

acquires tobacco from a person who does not have a permit to mark tobacco issued

under subsection (2).

(4) The minister may, before issuing a permit

under this section, require and impose reasonable restrictions upon that

permit.

(5) The minister may, before issuing a permit

under this section, require a deposit equal to the amount of tax collectable.

(6) A person who has been issued a permit to stamp

tobacco packages, cartons or cases under this

section shall provide to the minister

an accounting for all stamps received by that person from the minister.

(7) A person who has been issued a permit to stamp

tobacco packages, cartons or cases under this

section shall account for each

stamp as required under subsection (5) and each stamp that is not accounted for

shall be considered to have been affixed to a tobacco package, carton or case

and sold to a consumer who has paid tax and that tax shall be paid by that

person to the Crown in accordance with this Act.

(8) The minister may suspend or cancel a permit

issued to a person under this

section if that person contravenes a condition or

restriction placed upon it and where that permit is held by a collector, may cancel

the wholesaler's licence of that collector.

Retailer

(1) The

minister may, for the purposes of this Act designate a person as a retailer.

(2) A person who is not an HST registrant who has

an establishment in the province may apply to the minister for designation as a

retailer.

Rate of tax

(1) The

tax imposed on tobacco by this Act shall be calculated as follows:

(

a) for cigarettes, a tax of $0.18 on every

cigarette;

(

b) for tobacco, other than cigarettes and cigars,

the tax shall be $0.30 for each gram of tobacco; and

(

c) for cigars, a tax of 125% of the purchase

price on a cigar, and the tax shall be rounded to the nearest 1/100 of a cent.

(2) Notwithstanding

paragraphs (1)(

a) and (b), cigarettes, and tobacco, other than cigarettes and cigars,

sold by a retailer in and for consumption in

(

a) the

town of Labrador

City ;

(

b) the

town of Wabush ; and

(

c) south

coast Labrador extending from the border with

the Province of Quebec to and including the community

of Red

Bay

shall be

subject to a rebate of money as calculated under subsection (3) the amount of

which may be prescribed by the minister under sub

section

112 (2).

(3) The

minister may make regulations establishing the amount of the rebate under subsection

(2), to be calculated as the amount determined by the minister to equate to the

difference between the rate of tax on tobacco under

an Act of the Province of

Quebec and the provincial tobacco tax rate plus the difference between the

provincial component of the Harmonized Sales Tax and the Quebec Sales Tax.

(4) A

rebate of money under subsection (2) shall be made and carried out as

prescribed by regulation.

(5) The minister may establish a quota system for

the quantity of cigarettes and tobacco sold by retailers which may be subject

to subsections (2) and (4).

Calculating tax

(1) The

tax payable on tobacco other than cigars shall be calculated separately on

every package.

(2) The tax payable on cigars shall be calculated

separately on the purchase price of each cigar, whether or not it is sold in a

package.

Purchase price of

cigars

100. For

the purpose of determining the amount of tax payable on a cigar, the purchase

price shall be determined in the manner following:

(

a) where a retail purchaser acquires the cigar

from a wholesaler or retailer, "purchase price" means the price paid

by the purchaser for the cigar, but where that price is not known to the

collector, the "purchase price" means an amount equal to the sum of

(

i) the price at which a cigar of that kind is

sold at wholesale by the collector, and

(ii) an additional amount determined according to a

prescribed method of calculation; and

(

b) where the consumer acquires the cigar

otherwise than from a wholesaler or retailer, the "purchase price"

means the price paid by the consumer for the cigar, but where that price cannot

be determined or no price is paid for the cigar, the "purchase price"

shall be determined according to a prescribed method of calculation.

When tax payable

(1) Where a retail purchaser acquires tobacco from a w