CHAPTER 217
OF THE
REVISED STATUTES, 1989
Short title
1 This Act may be cited as the Income Tax Act. R.S., c. 217, s. 1.
(a) "agreeing province" means a province of Canada that has entered into an agreement with the Government of Canada under which the Government of Canada will collect taxes payable under that province's income tax statute and will make payments to that province in respect of the taxes so collected;
(b) "collection agreement" means the agreement referred to in subsection 101(1), as amended in accordance with subsection 101(2), or the new collection agreement referred to in subsection 101(2), as amended in accordance with subsection 101(2);
(c) "Commissioner of Customs and Revenue" means the Commissioner of Customs and Revenue, appointed under section 25 of the Canada Customs and Revenue Agency Act (Canada);
(d) "Court" means the Supreme Court of Nova Scotia;
(e) "Department of Finance" means
(ii) when a collection agreement is in effect, the Commissioner of Customs and Revenue;
(g) "Federal Act" means the Income Tax Act (Canada);
(h) "Federal ITAR" means the Income Tax Application Rules (Canada);
(i) "Federal Regulations" means the regulations, as amended from time to time, made pursuant to the Federal Act;
(j) "income tax statute" means, with reference to an agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act;
(k) "Minister" means the Minister of National Revenue for Canada, but in any provision of the Federal Act that applies for the purposes of this Act, a reference to the Minister shall be read and construed for the purposes of this Act as a reference to the Minister of Finance;
(l) "Minister of Finance" means
(m) "permanent establishment", where used for a purpose under this Act, has the same meaning as that assigned for that purpose, or the purpose that is most similar to that purpose, in the Federal Act or the Federal Regulations;
(ii) in the case of the manner of making or filing an election, authorized by the Minister or the Minister of Finance of the Province,
(iii) in the case where the word "prescribed" is mentioned in a provision of the Federal Act that applies for the purposes of this Act otherwise than in respect of a case to which subclauses (i) or (ii) apply, what is prescribed, within the meaning assigned by subsection 248(1) of the Federal Act, in the Federal Regulations under that provision, and
(iv) in any other case where the word is mentioned in this Act, prescribed by regulations;
(o) "Receiver General of Canada" means the Receiver General of Canada, but in any provision of the Federal Act that applies for the purposes of this Act, a reference to the Receiver General of Canada shall be read and construed for the purposes of this Act as a reference to the Minister of Finance;
(p) "registrar" means prothonotary;
(q) "regulations" means a regulation made by the Governor in Council under this Act;
(r) "taxation year" of a person means the period determined under the Federal Act as the person's taxation year.
(2) The expression "last day of the taxation year" shall, in the case of an individual who resided in Canada at any time in the taxation year but ceased to reside in Canada before the last day thereof, be deemed to be a reference to the last day in the taxation year on which the individual resided in Canada.
(3) The tax payable by a taxpayer under this Act or under Part I of the Federal Act means the tax payable by the taxpayer as fixed by assessment or reassessment subject to variation on objection or on appeal, if any, in accordance with this Act, or Part I of the Federal Act, as the case may be.
(4) For the purposes of this Act, except where they are at variance with the definitions contained in this Section, the definitions and interpretations contained in, or made by regulations under, the Federal Act apply.
(5) In any case of doubt, the provisions of this Act shall be applied and interpreted in a manner consistent with similar provisions of the Federal Act.
(6) Any reference in any enactment other than this Act to Chapter 3 of the Acts of 1961, the Individual and Corporation Income Tax Act, shall be read and construed as a reference to this Act.
(7) Subsections 104 (1) and (2) of the Federal Act apply for the purposes of this Act.
(8) Subsection 248(11) of the Federal Act applies for the purposes of this Act.
(9) Section 257 of the Federal Act applies for the purposes of this Act.
(10) Where a provision, in this subsection referred to as "that section", of the Federal Act or the Federal Regulations is made applicable for the purpose of this Act, that section, as amended from time to time, applies with such modifications as the circumstances require for the purpose of this Act as though it had been enacted as a provision of this Act, and in applying that section for the purpose of this Act, in addition to any other modifications required by the circumstances,
(a) a reference in that section to tax pursuant to Part I of the Federal Act shall be read as a reference to tax pursuant to this Act;
(b) except for the purpose of Part III of this Act, where that section contains a reference to tax pursuant to any of Parts I.1 to XIV of the Federal Act, that section shall be read without reference therein to tax pursuant to any of those Parts and without reference to any portion of that section that applies only to or in respect of tax pursuant to any of those Parts;
(c) a reference in that section to a particular provision of the Federal Act that is the same as, or similar to, a provision of this Act shall be read as a reference to the provision of this Act;
(d) any reference in that section to a particular provision of the Federal Act that applies for the purpose of this Act shall be read as a reference to the particular provision as it applies for the purpose of this Act;
(e) except for the purpose of Part III of this Act, where that section contains a reference to any of Parts I.1 to XIV of the Federal Act or to a provision in any of those Parts, that section shall be read without reference therein to that Part or without reference to that provision, as the case may be, and without reference to any portion of that section that applies only because of the application of any of those Parts or the application of a provision in any of those Parts;
(f) where that section contains a reference to the Bankruptcy and Insolvency Act (Canada), that section shall be read without reference therein to the Bankruptcy and Insolvency Act (Canada);
(g) subject to clause (h), any reference in that section to the Federal Regulations shall be read as including a reference to this Act or a regulation made under this Act;
(h) a reference in that section to the words "under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act" shall be read as a reference to "under this Act";
(i) any reference in that section to the Federal Act or the Federal Regulations shall be read as including a reference to this Act or a regulation made under this Act;
(j) any reference in that section to a word or expression set out in the left-hand column of the following Table shall be read as a reference to the word or expression set out opposite thereto in the right-hand column of the following Table:
Her Majesty Her Majesty in
right of the
Province
Criminal Code Summary
Proceedings Act
Receiver General Minister of Finance
Canada Customs and Department of
Revenue Agency Finance
Commissioner of Customs Deputy Head
and Revenue
Deputy Attorney General Deputy Attorney
of Canada General of
Nova Scotia
Tax Court of Canada Supreme Court of
Nova Scotia
Tax Court of Canada Act Judicature Act
Federal Court of Canada Supreme Court of
Nova Scotia
Federal Court Act Judicature Act
Registrar of the Tax Court Prothonotary of the
of Canada Supreme Court of
Nova Scotia
Registry of the Federal Office of the
Court Supreme Court
of Nova Scotia
(a) "federal amendment" means an amendment to a federal provision;
(b) "federal application rule" means a provision, in this clause referred to as "the provision", of an Act of the Parliament of Canada that makes a federal provision, a federal amendment or the repeal of a federal provision or federal amendment apply
(ii) in respect of specified fiscal periods,
(iii) before or after a specified time,
(iv) in respect of transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods, or
(v) in respect of such other criteria as may be set out in the provision; and
(c) "federal provision" means a provision of the Federal Act that applies for the purposes of this Act.
(2) Where a federal application rule governs the application of a federal provision or federal amendment, for the purpose of applying the federal provision or federal amendment for the purposes of this Act, the federal provision or federal amendment shall be applied in accordance with the federal application rule as though the Legislature had enacted that federal application rule to govern the application of the federal provision or federal amendment for the purposes of this Act.
(3) Where a federal provision or a federal amendment comes into force, or is deemed to come into force, at a particular time, and no federal application rule governs its application, the federal provision or federal amendment, as the case may be, is deemed, for the purpose of applying it for the purposes of this Act, to come into force at that particular time.
(4) Where a federal provision is repealed and another provision is not substituted therefor, the federal provision ceases to apply for the purposes of this Act
(a) if the repeal is governed by a federal application rule, in accordance with that federal application rule; and
(b) if the repeal is not governed by a federal application rule, at the time the repeal comes into force or is deemed to come into force.
(5) For the purposes of this Act, where a particular federal provision is replaced by another federal provision, or is repealed and another federal provision is substituted therefor, the other federal provision is deemed to be a continuation of the particular federal provision and the replacing or the repeal and substitution, as the case may be, is deemed to be an amendment to the particular federal provision. 2000, c. 4, s. 61.
4 No tax is payable under this Act by a person for a period when
(a) no tax is payable under Part I of the Federal Act for the period on the person's taxable income because of subsection 149(1) of the Federal Act; or
(b) that person was a non-resident-owned investment corporation. 2000, c. 4, s. 61.
5 An income tax shall be paid as hereinafter required for each taxation year by every individual
(a) who was resident in the Province on the last day of the taxation year; or
(b) who, not being resident in the Province on the last day of the taxation year, had income earned in the taxation year in the Province, as defined in clause 7(c). 2000, c. 4, s. 61.
6 An income tax shall be paid as hereinafter required for each taxation year by every corporation that maintained a permanent establishment in the Province at any time in the year. 2000, c. 4, s. 61.
(a) "appropriate percentage" for a taxation year means the lowest percentage referred to in Section 8 that is applicable in determining tax payable under this Part for the year;
(b) "highest percentage" for a taxation year means the highest percentage referred to in Section 8 that is applicable in determining tax payable under this Part for the year;
(c) "income earned in the taxation year in the Province" means income earned in the year in the Province as determined in accordance with Federal Regulations made for the purposes of the definition "income earned in the year in a province" in subsection 120(4) of the Federal Act;
(d) "income earned in the taxation year outside the Province" means income for the year minus income earned in the taxation year in the Province;
(e) "income for the year" means
(ii) in the case of any other individual, the individual's income for the year as determined in accordance with, and for the purposes of, the Federal Act;
(f) "provincial percentage" for a taxation year means 57.5%;
(g) "tax payable under the Federal Act" by an individual in respect of a taxation year means the amount determined under the definition "tax otherwise payable under this Part" in subsection 120(4) of the Federal Act in respect of the individual for the year. 2000, c. 4, s. 61.
8 The tax payable under this Part for a taxation year by an individual on the individual's taxable income or taxable income earned in Canada, as the case may be, in this Division referred to as the "amount taxable", for the 2000 and subsequent taxation years is
(a) 8.79% of the amount taxable if the amount taxable does not exceed $29,590;
(b) $2,601 plus 14.95% of the amount by which the amount taxable exceeds $29,590 if the amount taxable exceeds $29,590 and does not exceed $59,180;
(c) $7,025 plus 16.67% of the amount by which the amount taxable exceeds $59,180 and does not exceed $93,000; and
(d) $12,662 plus 17.5% of the amount by which the amount taxable exceeds $93,000. 2000, c. 4, s. 61; 2003, c. 4, s. 15; 2004, c. 3, s. 26.
9 There shall be added in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula
A is the provincial percentage; and
(a) the amount added under section 120.3 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year;
(b) the amount added under section 120.31 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year; and
(c) the amount added under section 40 of the Federal ITAR for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year. 2000, c. 4, s. 61.
10 (1) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year; and
(a) in the case of an individual who at any time in the year is a married person or a person who is in a common-law partnership who supports the individual's spouse or common-law partner and is not living separate and apart from the spouse or common-law partner by reason of a breakdown of their marriage or common-law partnership, an amount equal to the total of
(ii) the amount determined by the formula
C is the greater of $614 and the income of the individual's spouse or common-law partner for the year or, where the individual and the individual's spouse or common-law partner are living separate and apart at the end of the year because of a breakdown of their marriage or common-law partnership, the spouse's or common-law partner's income for the year while married or in a common-law partnership and not so separated;
(b) in the case of an individual who does not claim a deduction for the year because of clause (a) and who, at any time in the year,
(B) a person who is married or in a common-law partnership who neither supported nor lived with their spouse or common-law partner and who is not supported by that spouse or common-law partner,
(ii) whether alone or jointly with one or more other persons, maintains a self-contained domestic establishment, in which the individual lives, and actually supports in that establishment a person who, at that time, is
(B) wholly dependent for support on the individual, or the individual and the other person or persons, as the case may be,
(C) related to the individual, and
(D) except in the case of a parent or grandparent of the individual, either under eighteen years of age or so dependent by reason of mental or physical infirmity,
D is the greater of $614 and the dependent person's income for the year;
(c) except in the case of an individual entitled to a deduction because of clause (a) or (b), $7,231;
(d) in the case of an individual who, at any time in the year alone or jointly with one or more persons, maintains a self-contained domestic establishment that is the ordinary place of residence of the individual and of a particular person
E is the greater of $11,661 and the particular person's income for the year;
(e) for each dependant of the individual for the year who
(ii) was dependent on the individual because of mental or physical infirmity,
F is the greater of $4,845 and the dependant's income for the year; and
(f) in the case of an individual entitled to a deduction in respect of a person because of clause (b) and who would also be entitled, but for paragraph 118(4)(c) of the Federal Act, as that provision applies to this Act, to a deduction because of clause (d) or (e) in respect of the person, the amount by which the amount that would be determined under clause (d) or (e), as the case may be, exceeds the amount determined under clause (b) in respect of the person.
(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who, before the end of the year, has attained the age of sixty-five years, there may be deducted the amount determined by the formula
A is the appropriate percentage for the year; and
B is 15% of the amount, if any, by which the individual's income for the year would exceed $26,284 if no amount were included in respect of a gain from a disposition of property to which section 79 of the Federal Act applies in computing that income.
(3) For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the Province on the last day of the taxation year, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year; and
(a) where the individual has attained the age of sixty-five years before the end of the year, the pension income received by the individual in the year; and
(b) where the individual has not attained the age of sixty-five years before the end of the year, the qualified pension income received by the individual in the year.
(4) Subsections 118(4), (5) and (6) of the Federal Act apply to subsection (1) and subsections 118(7) and (8) of the Federal Act apply to subsection (3). 2000, c. 4, s. 61; 2000, c. 29, s. 17; 2003, c. 4, s. 16; 2005, c. 6, s. 7.
11 For the purpose of computing the tax payable under this Part by an individual for a taxation year, if the individual is entitled to a deduction under subsection 118.1(3) of the Federal Act for the year, there may be deducted such amount as the individual claims not exceeding the amount determined by the formula
A is the appropriate percentage for the year;
B is the lesser of $200 and the amount determined for D;
C is the highest percentage; and
D is the amount determined for D in the formula in subsection 118.1(3) of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the year. 2000, c. 4, s. 61.
12 For the purpose of computing the tax payable under this Part by an individual for a taxation year, if the individual is entitled to a deduction under subsection 118.2(1) of the Federal Act for the year, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year;
B is the amount determined for B in the formula in subsection 118.2(1) of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the year;
C is the lesser of $1,637 and 3% of the individual's income for the year; and
D is 39.1% of the total of all amounts each of which is the amount, if any, by which
(a) the income for the year of a person, other than the individual and the individual's spouse or common-law partner, in respect of whom an amount is included in computing the individual's deduction under this Section for the year,
(b) the amount used under clause (c) of the description of B in subsection 10(1) for the year. 2000, c. 4, s. 61; 2000, c. 29, s. 18.
12A (1) For the purpose of computing the tax payable under this Part for a taxation year by an individual there may be deducted in respect of each child of the individual who has not attained the age of eighteen years before the end of the year an amount determined by the formula
A is the appropriate percentage for the year;
(b) the total of all amounts paid by the individual or by the individual's spouse or common-law partner, for the registration of the child in a designated sport or recreational activity.
(2) Where more than one individual is entitled to a deduction under subsection (1) in respect of the same child,
(a) the total of all amounts so deductible for the year shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that child if that individual were the only individual entitled to deduct an amount for the year because of that subsection for the child; and
(b) if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.
(3) The extended meaning of "child" in subsection 252(1) of the Federal Act applies for the purpose of this Section.
(4) The Governor in Council may make regulations designating sport or recreational activities for the purpose of this Section. 2005, c. 6, s. 8.
13 (1) Where an individual is entitled to deduct an amount pursuant to subsection 118.3(1) of the Federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the Federal Act, for the purposes of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year;
(a) where the individual has not attained eighteen years of age before the end of the year, the amount determined by the formula
D is the greater of $2,000 or the total of the amounts paid in the year for the care and supervision of the individual and included in computing a deduction under sections 63, 64 and 118.2 of the Federal Act; and
(2) Sections 118.3 and 118.4 of the Federal Act apply for the purposes of this Act, except that subsection (1) of this Section applies instead of subsection 118.3(1) of the Federal Act.
(3) Notwithstanding subsection (1) and (2), for the purpose of computing the tax payable under this Part for a taxation year by an individual who is entitled to a deduction under subsection 118.3(2) of the Federal Act for the taxation year in respect of a person referred to in that subsection there may be deducted the amount, if any, by which
(a) the amount deductible under subsection (1) in computing that person's tax payable under this Part for the taxation year, or that would be so deductible if the person were liable under Section 5 to pay tax for the taxation year,
(b) the amount of that person's tax payable under this Part for the taxation year if the person were liable under Section 5 to pay tax for the taxation year, computed before any deductions under this Division other than deductions referred to in Sections 10 and 18. 2000, c. 4, s. 61; 2001, c. 3, s. 10; 2005, c. 6, s. 9.
14 Section 118.5 of the Federal Act applies for the purposes of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purposes of this Division, for the purposes of this Act. 2000, c. 4, s. 61.
15 (1) Where an individual is entitled to deduct an amount pursuant to subsection 118.6(2) of the Federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the Federal Act, for the purposes of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year; and
B is the total of the products obtained when
(a) $200 is multiplied by the number of months in the year during which the individual is enrolled in a qualifying educational program as a full-time student at a designated educational institution; and
(b) $60 is multiplied by the number of months in the year, other than months described in clause (a), each of which is a month during which the individual is enrolled at a designated educational institution in a specified educational program that provides that each student in the program spend not less than twelve hours in the month on courses in the program.
(2) Section 118.6 of the Federal Act applies for the purposes of this Act, except that subsection (1) of this Section applies instead of subsection 118.6(2) of the Federal Act. 2000, c. 4, s. 61.
16 (1) For the purpose of computing an individual's tax payable under this Part for a taxation year, there may be deducted the lesser of
(a) the individual's unused tuition and education credits at the end of the preceding taxation year; and
(b) the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this Section and any of Sections 10, 12A, 13 and 18.
(2) An individual's unused tuition and education tax credits at the end of a taxation year is the amount determined by the formula
A is the individual's unused tuition and education credits at the end of the preceding taxation year;
B is the total of all amounts each of which may be deducted under Sections 14 and 15 in computing the individual's tax payable under this Part for the year;
C is the lesser of the value of B and the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this Section and any of Sections 10, 12A, 13 and 18;
D is the amount that the individual may deduct under subsection (1) for the year; and
E is the tuition and education tax credits transferred for the year by the individual to the individual's spouse, common-law partner, parent or grandparent.
(3) For the purpose of determining the amount that may be deducted under subsection (1) for a taxation year that begins after 2003 by an individual who was not resident in the Province on the last day of the preceding taxation year, the individual's unused tuition and education tax credits at the end of the preceding taxation year is equal to the amount that would be the individual's unused tuition and education tax credits at the end of the preceding taxation year as determined under section 118.61 of the Federal Act if the percentage applied under sections 118.5 and 118.6 of the Federal Act had been the appropriate percentage for the year instead of the appropriate percentage as defined in the Federal Act.
(4) For the purpose of subsection (3), the amounts mentioned in that subsection may be used only to the extent that they have not been used in claiming a credit pursuant to section 118.5, 118.6 or 118.61 of the Federal Act, or in determining credits transferred pursuant to section 118.81 of the Federal Act, for any taxation year.
(5) For the purpose of determining the amount that may be deducted under subsection (1) for a taxation year that begins after 2003, the unused tuition and education tax credits of an individual who resided in the Province at the end of the 2003 taxation year is equal to 8.79 / 9.77 of the amount that would be the individual's unused tuition and education tax credits at the end of the 2003 taxation year if this Section were read without reference to this subsection. 2005, c. 6, s. 10.
17 For the purpose of computing the tax payable under this Part by an individual for a taxation year, if the individual is entitled to a deduction under section 118.62 of the Federal Act for the year, there may be deducted an amount determined by the formula
A is the appropriate percentage for the year; and
B is the amount determined for B in the formula in section 118.62 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the year. 2000, c. 4, s. 61.
18 Section 118.7 of the Federal Act applies for the purposes of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purposes of this Division, for the purposes of this Act. 2000, c. 4, s. 61.
19 (1) For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time in the year, is a married person or a person who is in a common-law partnership, other than an individual who, by reason of a breakdown of the individual's marriage or common-law partnership, is living separate and apart from the individual's spouse or common-law partner at the end of the year and for a period of ninety days commencing in the year, there may be deducted an amount determined by the formula
A is the tuition and education tax credits transferred for the year by the spouse or common-law partner to the individual;
B is the total of all amounts each of which is deductible under subsections 10(2) and (3) and Section 13 in computing the spouse's or common-law partner's tax payable under this Part for the year, or that would be so deductible if the spouse or common-law partner were liable under Section 5 to pay tax for the year; and
C is the amount, if any, by which
(a) the amount that would be the spouse's or common-law partner's tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under Section 5 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under clause 10(1)(c) and Sections 12A, 16 and 18,
(ii) the amount that would be the spouse's or common-law partner's tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under Section 5 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under Sections 10, 12A, 13, 16 and 18.
(3) In this Section, the tuition and education tax credits transferred for a tuition year by a person to an individual is the lesser of
(a) the amount determined by the formula
(ii) the amount obtained by multiplying $5,000 by the appropriate percentage for the year; and
(b) the amount for the year that the person designates in writing for the purpose of subsection (1) or (2). 2005, c. 6, s. 11.
(a) "benefit year" means the 2003 calendar year;
(b) "eligible individual" means an individual other than a trust.
(2) An eligible individual is deemed to have made an overpayment on account of the tax payable by the individual under this Act for the taxation year ending in or at the same time as the benefit year if the following conditions are satisfied:
(a) the individual files a return of income, other than a return of income filed under paragraph 128(2)(e) of the Federal Act, for the taxation year ending on the last day of 2001, 2002 or 2003 no later than twelve months after the end of the respective taxation year;
(b) the Minister of Finance assesses an amount of tax payable under this Act on or before December 31st of the immediately following taxation year;
(c) the individual is resident in the Province as at May 1, 2003, if the eligibility determination is made in June 2003, and for eligibility determinations made in months subsequent to June 2003, the individual is resident in the Province at the beginning of that month; and
(d) the amount of tax payable by the individual for the taxation year, as determined on assessment or reassessment by the Minister of Finance, is equal to or greater than $1.00.
(3) Subject to subsection (4), the amount of the deemed overpayment for the benefit year is $155 and that overpayment is deemed to have an effective date that is the day of the month in which the individual's eligibility is determined.
(4) An individual who filed a return of income for the 2001, 2002 or 2003 calendar year is not entitled to the deemed overpayment referred to in subsection (3) if
(a) for the 2001 taxation year a return was filed and assessed for any taxation year pursuant to subsection 70(1) of the Federal Act before January 1, 2003;
(b) for the 2002 taxation year a return was filed and assessed for any taxation year pursuant to subsection 70(1) of the Federal Act before January 1, 2004; or
(c) for the 2003 taxation year a return was filed and assessed for any taxation year pursuant to subsection 70(1) of the Federal Act before January 1, 2005.
(5) An individual who would be eligible for a refund with respect to a return of income filed and assessed for either the 2001, 2002 or 2003 taxation year but who has since died and for whom a return of income pursuant to subsection 70(1) of the Federal Act has not been filed and assessed is deemed to be resident in the Province as at May 1, 2003, if the eligibility determination is made in June, 2003, and for eligibility determinations made in months subsequent to June 2003, the individual is deemed to be resident in the Province at the beginning of the month in which the determination is made.
(6) The Minister of Finance shall determine, without an application by an individual, whether the individual is or remains an eligible individual for the benefit year.
(7) After making a determination under subsection (6), the Minister of Finance shall pay a refund to the individual in the amount of the deemed overpayment.
(8) The Minister of Finance shall not pay a refund under this Section after January 15, 2005.
(9) Where an individual receives a refund under this Section to which the individual is not entitled, the individual shall repay the amount to the Minister of Finance.
(10) No amount is repayable under subsection (9) if the individual's entitlement to a refund or the amount of the individual's refund is reduced by reason of an assessment or reassessment of tax issued
(a) with respect to the 2001 taxation year, after December 31, 2002;
(b) with respect to the 2002 taxation year, after December 31, 2003; or
(c) with respect to the 2003 taxation year, after December 31, 2004.
(11) An amount payable under subsection (9), that has not been paid to the Minister of Finance,
(a) constitutes a debt to Her Majesty in right of the Province and may be recovered by way of deduction or set-off or may be recovered in any court of competent jurisdiction in proceedings commenced at any time or by any other manner provided by this Act; and
(b) is deemed for the purpose of Sections 81 to 106 to be tax payable under this Act.
(12) For the purpose of section 164 of the Federal Act as it applies for the purpose of this Act, a refund paid under this Section is deemed to be a refund of tax under this Act.
(13) Notwithstanding subsection (12), no interest is payable on the amount of a refund under this Section or on an amount repayable under subsection (9).
(14) An individual is not entitled to the deemed overpayment pursuant to this Section where the Minister has made an assessment pursuant to subsection 152(7) of the Federal Act.
(15) Notwithstanding anything contained in this Section, the Minister shall not take into consideration a change in the residency determination made with respect to an individual
(a) for the 2001 or 2002 taxation year, after December 31, 2003; or
(b) for the 2003 taxation year, after December 31, 2004.
(16) A decision of the Minister of Finance pursuant to this Section is final and not subject to appeal.
(17) For greater certainty, a taxpayer is only entitled to one payment pursuant to subsection (3). 2003, c. 4, s. 17
20 There may be deducted in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula
A is the provincial percentage; and
B is the amount that the individual may deduct for the taxation year under section 120.2 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act. 2000, c. 4, s. 61.
21 For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the Province on the last day of the taxation year, there may be deducted an amount equal to 38.5% of any amount required by paragraph 82(1)(b) of the Federal Act to be included in computing the individual's income for the year. 2005, c. 6, s. 12.
22 For the purposes of computing tax payable under this Part by an individual who was resident in the Province on the last day of the taxation year, there may be deducted an amount equal to the provincial percentage of the amount that the individual may deduct under section 122.3 of the Federal Act for that taxation year. 2000, c. 4, s. 61; 2005, c. 6, s. 13.
23 Section 118.91 of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
24 Section 118.92 of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
25 Section 118.93 of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
26 Section 118.94 of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
27 Section 118.95 of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
28 Section 122 of the Federal Act applies for the purposes of this Act, except that the reference to "29%", or to the amount that it is amended to read, in subsection 122(1) of the Federal Act shall be read, for the purposes of this Act, as a reference to the "highest percentage". 2000, c. 4, s. 61.
29 Subsection 128(2) of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
30 Section 120.4 of the Federal Act applies for the purposes of this Act, except that the reference to "29%", or to the amount that it is amended to read, in subsection 120.4(2) of the Federal Act shall be read, for the purposes of this Act, as a reference to the "highest percentage". 2000, c. 4, s. 61.
31 If an individual is required to pay tax under section 127.5 of the Federal Act in respect of a taxation year, there shall be added to the individual's tax payable under this Part for the taxation year an amount determined by the formula
A is the provincial percentage; and
B is the individual's additional tax for the taxation year determined pursuant to subsection 120.2(3) of the Federal Act. 2000, c. 4, s. 61.
32 Notwithstanding subdivisions a to e, the tax payable under subdivisions a to e for a taxation year by an individual
(a) who resided in the Province on the last day of the taxation year but had income earned in the taxation year outside the Province; or
(b) who did not reside in the Province on the last day of the taxation year but had income earned in the taxation year in the Province,
shall be the amount determined by the formula
A is the tax otherwise payable by the individual under subdivisions a to e;
B is the individual's income earned in the taxation year in the Province; and
C is the individual's income for the year. 2000, c. 4, s. 61.
32A Where an individual resided in the Province on the last day of a taxation year but had income earned in the taxation year outside the Province, the individual may deduct from the amount of tax otherwise payable for the taxation year as determined under Section 32 an amount determined by the formula
A is the total of all amounts each of which is deductible under subsection 10(3) and Sections 21 or 22 by the individual for the taxation year;
B is the individual's income earned in the taxation year outside the Province; and
C is the individual's income for the year. 2005, c. 6, s. 14.
33 In addition to the income tax payable, computed in accordance with subdivisions a to f, by an individual for a taxation year, every individual shall pay a personal income surtax in respect of the taxation year equal to 10% of the amount, if any, by which the tax computed pursuant to subdivisions a to f for the taxation year exceeds $10,000. 2000, c. 4, s. 61.
34 (1) Where an individual resided in the Province on the last day of a taxation year and had income for the year that included income earned in a country other than Canada in respect of which non-business-income tax was paid by the individual to the government of a country other than Canada, the individual may deduct from the tax payable by the individual under this Act for that taxation year an amount equal to the lesser of
(a) the amount, if any, by which any non-business-income tax paid by the individual for the year to the government of such other country exceeds
(ii) if section 127.5 of the Federal Act applies to the individual for the taxation year, the amount of the individual's special foreign tax credit for the year determined under section 127.54 of the Federal Act that is in respect of any non-business-income tax paid to the government of such other country; and
(B) for the part of the year throughout which the individual is resident in Canada, if the individual is non-resident at any time of the year,
(D) no amount was deducted under subsection 91(5) of the Federal Act in computing the individual's income for the year, and
(E) the individual's income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect thereof under paragraphs 122.3(1)(c) and (d) of the Federal Act for the year,
(ii) the amount, if any, by which,
(B) if the individual was non-resident at any time in the year, the individual's income earned in the year in the Province that is included in the amount determined under paragraph 114(a) of the Federal Act in respect of the individual for the year,
(3) For the purpose of this Section and Section 43,
(a) the government of a country other than Canada includes the government of a state, province or other political subdivision of that country;
(b) where a taxpayer's income for a taxation year is in whole or in part from sources in more than one country other than Canada, subsection 34(1) and Section 43 shall be read as providing for separate deductions in respect of each of the countries other than Canada; and
(c) if any income from a source in a particular country would be tax-exempt income but for the fact that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, the portion is deemed to be income from a separate source in the particular country.
(4) For the purpose of this Section and Section 43, the definitions of "qualifying incomes", "qualifying losses" and "tax-exempt income" in subsection 126(7) of the Federal Act apply. 2003, c. 4, s. 18.
(a) "adjusted income" of an individual for a taxation year means the total of all amounts each of which would be the income for the year of
if no amount were included in respect of a gain from a disposition of property to which section 79 of the Federal Act applies in computing that income;(b) "eligible individual" for a taxation year means an individual, other than a trust, who is resident in the Province on December 31st of that year, and is
(ii) a child of the individual residing with the individual at the end of the year,
(iv) the qualified relation of an individual for the year, or
(v) a person in respect of whom an amount is deemed under this Section to be paid by any other individual for the year;
(2) For the purpose of this Section, the income of a person who is non-resident at any time in a taxation year is deemed to be equal to the amount that would, if the person were resident in Canada throughout the year, be the person's income for the year.
(3) Notwithstanding subsection (1), a person is deemed not to be an eligible individual for a taxation year or a qualified relation or qualified dependant of an individual for a taxation year where the person
(a) is, at the end of the year, a person described in paragraph 149(1)(a) or (b) of the Federal Act; or
(b) is, at the end of the year, confined to a prison or similar institution and has been so confined for a period of, or periods the total of which in the year was more than, six months.
(4) Subject to subsection (5), where an eligible individual for a taxation year files with the individual's return of income under this Act for the year a prescribed form, containing prescribed information, the amount, if any, by which the total of
(b) $300 for a person who is the qualified relation of the individual for the year;
(c) $300, where the individual has no qualified relation for the year and is entitled to deduct an amount for the year under subsection 118(1) of the Federal Act by reason of paragraph (b) thereof in respect of a qualified dependant of the individual for the year; and
(d) the product obtained when $165 is multiplied by the number of qualified dependants of the individual for the year, other than a qualified dependant in respect of whom an amount is included by reason of clause (c) in computing an amount deemed to be paid pursuant to this subsection for the year,
(e) 5% of the amount, if any, by which
(5) Notwithstanding subsection (4), where an individual is a qualified relation of another individual for a taxation year, only one of those individuals may apply under subsection (4) for the year.
(6) The Governor in Council may make regulations adjusting annually the dollar amounts set out in subsection (4). 2005, c. 6, s. 15.
(a) "housing unit" includes any premises that an individual ordinarily occupies and inhabits as the individual's residence in the taxation year but does not include premises that are part of a chronic care facility or other similar institution that is prescribed, or that are part of any charitable institution, home for special care, home for the aged, public nursing home or private nursing home;
(b) "income" of a person for a taxation year means the amount equal to the sum of the person's taxable income for the taxation year and all amounts deducted pursuant to Division C of Part I of the Federal Act in determining such taxable income, less any amounts added pursuant to Division C of Part I of the Federal Act in determining such taxable income;
(c) "individual" means a person, other than
(ii) a trust or estate referred to in subdivision k of Division B of Part I of the Federal Act, or
(iii) a person who died in the taxation year or a person who is, on December 31st in the taxation year,
(B) a person referred to in paragraph 149(1)(a) or (b) of the Federal Act,
(C) a person, or a member of the family of the person, who is on active military service as a member of the armed forces of a country other than Canada and is not a Canadian citizen, or
(D) a person who, by virtue of an agreement, convention or tax treaty entered into by Canada and another country, is not required to pay tax pursuant to the Federal Act with respect to the taxation year;
(d) "Nova Scotia Home Ownership Savings Plan" means a Nova Scotia Home Ownership Savings Plan pursuant to the Home Ownership Savings Plan (Nova Scotia) Act;
(e) "principal residence", in respect of an individual, means a housing unit in the Province that was occupied by the individual during the taxation year as the individual's primary place of residence and that is designated by the individual in the prescribed manner as the individual's principal residence for the taxation year;
(f) "qualifying contribution" made by an individual to a Nova Scotia Home Ownership Savings Plan means a contribution that is a qualifying contribution pursuant to the Home Ownership Savings Plan (Nova Scotia) Act and in respect of which a receipt in the prescribed form has been issued by the depositary of the plan and has been filed by the individual with the Minister of Finance;
(g) "tax payable" and "tax otherwise payable" mean the amount of tax that would be payable pursuant to this Act if the tax were calculated without reference to sections 121 and 122.3 of the Federal Act, as they apply for the purposes of this Act, and this Section.
(2) For the purpose of this Section, the qualifying adjusted income of an individual for a taxation year is the aggregate of the income for the taxation year of
(b) the individual's spouse or common-law partner if the individual was married or in a common-law partnership at the end of the taxation year and resided with the spouse or common-law partner at the end of the taxation year.
(3) Subject to subsection (5), every individual resident in the Province on December 31st in a taxation year may deduct from tax otherwise payable pursuant to this Act in respect of the taxation year the amount, if any, equal to the product of
(ii) where the individual is married or in a common-law partnership at the end of the taxation year and resided on December 31st in the taxation year with the individual's spouse or common-law partner, the lesser of $2,000 and the total of all qualifying contributions made by the spouse or common-law partner in the taxation year to a Nova Scotia Home Ownership Savings Plan of which the spouse or common-law partner is the planholder;
(b) the prescribed percentage.
(4) Notwithstanding clause (3)(a), a reference in that clause to a taxation year includes the period up to sixty days following the end of the taxation year.
(5) Where, on December 31st in a taxation year, an individual is married or in a common-law partnership and resides with their spouse or common-law partner, any deduction from tax of an amount by either or both of them pursuant to subsection (3) for the taxation year that would have been permitted but for this subsection shall be made by only one of them and shall include all amounts that would otherwise have been deductible from tax pursuant to subsection (3) by either of them.
(6) The amount by which the deduction to which an individual is entitled pursuant to this Section exceeds the individual's tax payable pursuant to this Act for the taxation year calculated without reference to this Section may be applied by the Minister of Finance to pay any
(a) tax, interest or penalty owing by the individual for that or any prior taxation year pursuant to this Act, the income statute of any agreeing province or the Federal Act;
(b) contribution, penalty or interest owing by the individual for that or any prior taxation year as a result of payments required from the individual pursuant to the Canada Pension Plan Act (Canada);
(c) premium, interest or penalty owing by the individual for that or any prior taxation year pursuant to the Employment Insurance Act (Canada),
and the part of the amount not so applied shall be paid to the individual.
(7) For the purpose of this Section,
(a) where an individual or someone on the individual's behalf is entitled to file returns pursuant to the Federal Act in respect of the individual's income for more than one taxation year ending in the same calendar year, the deduction to which the individual may be entitled pursuant to this Section may be claimed only with respect to that taxation year that ends on or next before the last day of the calendar year;
(b) no deduction pursuant to this Section may be claimed in a return
(ii) filed on behalf of an individual by a trustee in bankruptcy pursuant to the provisions of paragraph 128(2)(e) or (h) of the Federal Act.
(8) Where an individual makes a claim to the Minister of Finance not more than three years after the end of the taxation year to which the claim relates that the individual is entitled to a deduction or an additional deduction pursuant to this Section for a taxation year in excess of the amount of any deduction pursuant to this Section previously allowed to the individual for the taxation year, the Minister of Finance may allow the deduction or additional deduction claimed by the individual if the Minister of Finance is satisfied that the individual is entitled to the deduction or additional deduction pursuant to this Section for the taxation year, and the Minister of Finance shall apply the amount of any deduction or additional deduction in the manner described in subsection (6). 2000, c. 4, s. 61; 2000, c. 29, s. 20.
(a) "equity tax credit" means a credit in respect of a tax-credit certificate issued to a taxpayer pursuant to subsection 8(2) of the Equity Tax Credit Act;
(b) "tax otherwise payable" means the amount that would, but for this Section, be the tax otherwise payable pursuant to this Act.
(2) Where, in respect of a taxation year, a taxpayer has been issued a tax-credit certificate pursuant to subsection 8(2) of the Equity Tax Credit Act, there shall be deducted from the tax otherwise payable by that taxpayer pursuant to this Part in respect of that taxation year the lesser of
(a) the aggregate of the equity tax credit and any amount referred to in clauses (5)(c) or (d); or
(3) A taxpayer who is entitled to a deduction pursuant to this Section shall file, with the taxpayer's annual return for any taxation year in respect of which a deduction is claimed pursuant to this Section, a copy of the tax-credit certificate.
(4) Notwithstanding Section 51 and subsection 62(1), a taxpayer is not entitled to a deduction pursuant to this Section unless the taxpayer files a return within three years after the end of the taxation year to which the deduction pertains.
(a) has been issued a tax-credit certificate pursuant to subsection 8(2) of the Equity Tax Credit Act; and
(b) the amount of the equity tax credit exceeds the amount of tax payable by that taxpayer for the taxation year,
(c) carry back and deduct any unused balance of the equity tax credit from tax otherwise payable by the taxpayer in any one or more of the taxpayer's three previous taxation years; or
(d) carry forward and deduct any unused balance of the equity tax credit from tax otherwise payable by the taxpayer in any one or more of the taxpayer's seven subsequent taxation years.
(6) For greater certainty, subsection 9(2) of the Equity Tax Credit Act applies for the purpose of this Section. 2000, c. 4, s. 61; 2003, c. 4, s. 19; 2005, c. 6, s. 16.
(a) "labour-sponsored venture-capital tax credit" means a credit in respect of a tax-credit certificate issued to a taxpayer pursuant to subsection 18(2) of the Equity Tax Credit Act;
(b) "tax otherwise payable" means the amount that would, but for this ection, be the tax otherwise payable pursuant to this Act.
(2) Where, in respect of a taxation year, a taxpayer has been issued a tax-credit certificate pursuant to subsection 18(2) of the Equity Tax Credit Act, there shall be deducted from the tax otherwise payable by that taxpayer pursuant to this Part in respect of that taxation year the lesser of
(a) the labour-sponsored venture-capital tax credit; or
(ii) one thousand dollars for an investment made after December 31, 2004.
(4) Notwithstanding Section 51 and subsection 62(1), a taxpayer is not entitled to a deduction pursuant to this Section unless the taxpayer files a return
(a) within three years after the end of the taxation year to which the deduction pertains for eligible shares purchased on or before April 25, 1996; or
(b) within seven years after the end of the taxation year to which the deduction pertains for eligible shares purchased after April 25, 1996.
(5) For greater certainty, subsection 18A(2) of the Equity Tax Credit Act applies for the purpose of this Section. 2000, c. 4, s. 61; 2004, c. 3, s. 27; 2005, c. 6, s. 17.
39 (1) Where an amount is to be refunded to a trust in respect of a taxation year pursuant to section 132 of the Federal Act, the Minister shall, subject to subsection (2), at such time and in such manner as is provided in that section, refund to the trust an amount, in this Section referred to as its "capital gains refund" for the year, equal to the amount obtained by multiplying the provincial percentage for the year times the amount of the refund for the year calculated under subsection 132(1) of the Federal Act.
(2) For the purpose of computing the capital gains refund under subsection (1) for a trust in respect of a taxation year, where the trust had income earned in the taxation year outside the Province, the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (1), that the trust's income earned in the taxation year in the Province is of its income for the year.
(3) Instead of making a refund that might otherwise be made under subsection (1), the Minister may, where the trust is liable or about to become liable to make any payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the trust of that action. 2000, c. 4, s. 61; 2001, c. 3, s. 11; 2005, c. 6, s. 18.
40 (1) The tax payable by a corporation under this Part for a taxation year is 16% of the corporation's taxable income earned in the year in the Province.
(2) Notwithstanding subsection (1), if in a taxation year a corporation is eligible for a deduction under subsection 125(1) of the Federal Act, the tax payable by that corporation under this Part for that taxation year is equal to the amount determined by the formula
(A x B x C/D) + (E x (C - (B x C/D)))
B is the least of the amounts determined pursuant to paragraphs 125(1)(a), (b) and (c) of the Federal Act in respect of the corporation for the taxation year;
C is the corporation's taxable income earned in the year in the Province;
D is the corporation's taxable income earned in the year in a province; and
(3) For the purposes of this Division,
(a) "taxable income earned in the year in the Province" of a corporation means its taxable income earned in the year in the Province as determined in accordance with Federal Regulations made for the purposes of the definition "taxable income earned in the year in a province" in subsection 124(4) of the Federal Act; and
(b) "taxable income earned in the year in a province" is the amount determined for the corporation for the taxation year for the purposes of the definition "taxable income earned in the year in a province" in subsection 124(4) of the Federal Act.
(4) For the purpose of subsection (2), where a corporation is a member of a partnership, the amount determined pursuant to paragraph 125(1)(a) of the Federal Act, in relation to a corporation for each taxation year, shall be the amount that would be the corporation's specified partnership income within the meaning of subsection 125(7) of the Federal Act if the amounts expressed in dollars in the description of "M" in the definition of "specified partnership income" in that subsection were read as
(a) for the first amount, "$350,000" and, for the second amount, "$959" for the period commencing on April 1, 2005, and ending on March 31, 2006; and
(b) for the first amount, "$400,000" and, for the second amount, "$1,096" for the period commencing on April 1, 2006.
(5) The business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purpose of subsection (2) to be $350,000 for the period commencing on April 1, 2005.
(6) Notwithstanding subsection (5), the business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purpose of subsection (2) to be $400,000 for the period commencing on April 1, 2006. 2000, c. 4, s. 61; 2005, c. 6, s. 19.
(a) "eligible expenditure" means an expenditure made after 1983 by a corporation with a permanent establishment in the Province in respect of scientific research to be carried out in the Province that is a qualified expenditure under subsection 127(9) of the Federal Act,
(ii) without reference to paragraph (d) of subsection 127(9) of the Federal Act after April 10, 2000,
and, for greater certainty, for the purpose of this clause and paragraph (h) of subsection 127(9) of the Federal Act, the reference to "government assistance" in subsections 127(18), (19) and (20) of the Federal Act does not include the research and development tax credit determined pursuant to this Section;
(b) "research and development tax credit" of a corporation at the end of a taxation year for expenditures made in a taxation year ending on or before December 31, 1993, means the amount, if any, by which the aggregate of
(ii) an amount equal to 10% of the aggregate of all amounts each of which is an eligible expenditure made by it in any of the seven taxation years immediately preceding or the three taxation years immediately following that year, computed without reference to subsection 13(7.1) of the Federal Act,
(iii) an amount equal to the aggregate of all amounts each of which is an amount required by subsection (6) or (8) to be included in computing its research and development tax credit at the end of the year, and
(iv) the aggregate of all amounts each of which is an amount required by subsection (6) or (8) to be included in computing its research and development tax credit at the end of any of the seven taxation years immediately preceding or the three taxation years immediately following that year,
exceeds the aggregate of all amounts each of which is that portion of the amount deducted under subsection (2) from the tax otherwise payable under this Act by the corporation for a preceding taxation year that is in respect of an expenditure made in the year or in the seven taxation years immediately preceding or the two taxation years immediately following the year;
(c) "research and development tax credit" of a corporation at the end of a taxation year for expenditures made in a taxation year ending after December 31, 1993, means the amount which is the aggregate of
(ii) an amount equal to the aggregate of all amounts each of which is an amount required by subsection (6) or (8) to be included in computing its research and development tax credit at the end of the year.
(2) A corporation may deduct from the tax otherwise payable under this Act for a taxation year an amount not exceeding the lesser of
(a) its research and development tax credit at the end of the year; and
(b) its tax otherwise payable by it under this Act for the year.
(3) The amount by which the research and development tax credit referred to in clause (1)(c) to which a corporation is entitled exceeds the corporation's tax payable pursuant to this Act for the taxation year, calculated without reference to this Section, may be applied by the Minister of Finance to pay any
(a) tax, interest or penalty owing by the corporation for that or any prior taxation year pursuant to this Act, the income statute of any agreeing province or the Federal Act;
(b) contribution, penalty or interest owing by the corporation for that or any prior taxation year as a result of payments required from the corporation pursuant to the Canada Pension Plan Act (Canada);
(c) premium, interest or penalty owing by the corporation for that or any prior taxation year pursuant to the Employment Insurance Act (Canada),
and the part of the amount not so applied shall be paid to the corporation.
(4) For greater certainty, a corporation referred to in subsection (3) does not include a corporation that is exempt from tax pursuant to section 149 of the Federal Act.
(5) There is deemed to have been paid on account of tax payable under the Federal Act by a taxpayer, other than a taxpayer exempt from tax, for a taxation year, where the taxpayer is a corporation, on the day referred to in paragraph 157(1)(b) of the Federal Act on or before which the remainder of the taxes payable under this Part for the year by the taxpayer would be required to be paid if such a remainder were payable, the amount, if any, by which
(a) the taxpayer's tax credit calculated under subsection (1) for the year,
(b) the amount deducted, pursuant to subsection (2), in computing the taxpayer's tax payable under this Part for the year.
(6) Where in a particular taxation year of a corporation which is a beneficiary under a trust, an amount would, if the trust were a corporation, be, by virtue of subclause (1)(b)(i) or (1)(c)(i), included in computing the research and development tax credit of the trust for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be the corporation's share thereof shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.
(7) A corporation may renounce the research and development tax credit in respect of eligible expenditures incurred during the year on or before the time on or before which the corporation is required to file its return of income for the year pursuant to section 150 of the Federal Act and, where the corporation so renounces entitlement to that credit, the corporation shall be deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving that credit.
(8) Where in a particular taxation year of a corporation that is a member of a partnership, an amount would, if the partnership were a corporation, be, by virtue of subclause (1)(b)(i) or (1)(c)(i), included in computing the research and development tax credit of the partnership for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share thereof shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.
(9) Where after 1983 two or more corporations amalgamate within the meaning of subsection 87(1) of the Federal Act and one or more of the corporations had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes of determining the research and development tax credit of the new corporation for any taxation year preceding any taxation year of the new corporation, the new corporation shall be deemed to be the same corporation as and a continuation of each such predecessor corporation.
(a) a subsidiary, within the meaning of subsection 88(1) of the Federal Act, is wound up and subsection 88(1) of the Federal Act applies to the winding-up; and
(b) the subsidiary had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year,
for the purposes of applying this Section, the parent, within the meaning of subsection 88(1) of the Federal Act, shall be deemed to be the same corporation as, and a continuation of, the subsidiary.
(a) a corporation acquired a particular property from a person or partnership in a taxation year of the corporation or in any of the four preceding taxation years;
(b) the cost of the particular property was an eligible expenditure to the corporation;
(c) the cost of the particular property is included in an amount, a percentage of which can reasonably be considered to be included in computing the corporation's research and development tax credit at the end of the taxation year; and
(d) in the year and after March 31, 2002, the corporation converts to commercial use, or disposes of without having previously converted to commercial use, the particular property or another property that incorporates the particular property,
there shall be added to the corporation's tax otherwise payable under this Part for the year the lesser of the amount that can reasonably be considered to be included in computing the corporation's research and development tax credit in respect of the particular property and the amount that is the percentage, described in clause (c), of
(e) where the particular property or the other property is disposed of to a person who deals at arm's length with the corporation, the proceeds of disposition of that property; and
(f) in any other case, the fair market value of the particular property or the other property at the time of the conversion or disposition.
(12) Where a corporation is a member of a partnership that has received a research and development tax credit under subsection (8) at the end of a particular fiscal period and where
(a) a particular property, the cost of which is an eligible expenditure, is acquired by the partnership from a person or partnership in the particular fiscal period or in any of the four preceding fiscal periods of the partnership;
(b) the cost of the particular property was included in an amount, a percentage of which can reasonably be considered to have been included in computing the amount determined under subsection (8) in respect of the partnership at the end of a fiscal period; and
(c) in the particular fiscal period and after March 31, 2002, the partnership converts to commercial use, or disposes of without having previously converted to commercial use, the particular property or another property that incorporates the particular property,
there shall be added to the corporation's tax otherwise payable under this Part at the end of the particular fiscal period the corporation's share of, as a member of the partnership, the lesser of
(d) the amount that can reasonably be considered to have been included in respect of the particular property in computing the amount determined under subsection (8) in respect of the partnership; and
(e) the percentage, described in clause (b), of
(ii) in any other case, the fair market value of the particular property or the other property at the time of the conversion or disposition.
(a) a corporation acquired a particular property from a person or partnership in a taxation year or in any of the four preceding taxation years;
(b) the cost of the particular property was an eligible expenditure to the corporation;
(c) all or part of the eligible expenditure can reasonably be considered to have been the subject of an agreement made under subsection 127(13) of the Federal Act by the corporation and another corporation, in this subsection referred to as the "transferee"; and
(d) in the year and after March 31, 2002, the corporation converts to commercial use, or disposes of without having previously converted to commercial use, the particular property or another property that incorporates the particular property,
there shall be added to the corporation's tax otherwise payable under this Part for the year the lesser of
(e) the amount that can reasonably be considered to have been included in computing the transferee's research and development tax credit in respect of the eligible expenditure that was the subject of the agreement; and
(f) the amount determined by the formula
A is the percentage applied by the transferee in determining its research and development tax credit in respect of the eligible expenditure that was the subject of the agreement,
(ii) in any other case, the fair market value of the particular property or the other property at the time of the conversion or disposition, and
C is the amount, if any, added to the corporation's tax payable under subsection (11) in respect of the particular property.
(14) For the purpose of subsections (11), (12) and (13), "cost of the particular property" to a corporation shall not exceed the amount paid by the corporation to acquire the particular property from a transferor of the particular property and, for greater certainty, does not include amounts paid by the corporation to maintain, modify or transform the particular property.
(15) Subsections (11) to (13) and (16) to (19) do not apply to a corporation or a partnership, in this subsection referred to as the "transferor", that disposes of a property to another person or a partnership, in this subsection and subsections (16) to (19), referred to as the "purchaser", that does not deal at arm's length with the transferor, if the purchaser acquired the property in circumstances described under subsection 127(33) of the Federal Act.
(16) Where, at any particular time in a taxation year and after March 31, 2002, a purchaser, other than a partnership, converts to commercial use, or disposes of without having previously converted to commercial use, a property
(a) that was acquired by the purchaser in circumstances described in subsection (15) or that is another property that incorporates a property acquired in such circumstances; and
(b) that was first acquired, or that incorporates a property that was first acquired, by a corporation, in this subsection referred to as the "original user", with which the purchaser did not deal at arm's length at the time at which the purchaser acquired the property, in the original user's taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user's four preceding taxation years or fiscal periods,
there shall be added to the purchaser's tax otherwise payable under this Part for the year the lesser of
(c) the amount included, in respect of the property, in the research and development tax credit of the original user; and
(d) the amount determined by applying the percentage that was applied in computing the research and development tax credit referred to in clause (c) by the corporation that was the original user, to
(ii) in any other case, the fair market value of the property or the other property at the time of the conversion or disposition.
(a) that was acquired by the purchaser in circumstances described in subsection (15) or that is another property that incorporates a property acquired in such circumstances; and
(b) that was first acquired, or that incorporates a property that was first acquired, by a partnership, in this subsection referred to as the "original user", with which the purchaser did not deal at arm's length at the time at which the purchaser acquired the property, in the original user's taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user's four preceding taxation years or fiscal periods,
there shall be added to the purchaser's tax otherwise payable under this Part for the year the lesser of
(c) the amount that can reasonably be considered to have been included in respect of the property in computing the research and development tax credit under subsection (8) in respect of all the corporations that were members of the original user; and
(d) the amount determined by applying the percentage that was applied in computing the research and development tax credit referred to in clause (c), times the proportion of that research and development tax credit that was utilized by the corporations that were members of the original user was of the total research and development tax credit calculated as if the original user was a corporation, to
(ii) in any other case, the fair market value of the property or the other property at the time of the conversion or disposition.
(a) that was acquired by the purchaser in circumstances described in subsection (15) or that is another property that incorporates a property acquired in such circumstances; and
(b) that was first acquired, or that incorporates a property that was first acquired, by a corporation, in this subsection referred to as the "original user", with which the purchaser did not deal at arm's length at the time at which the purchaser acquired the property, in the original user's taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user's four preceding taxation years or fiscal periods,
there shall be added to the tax otherwise payable under this Part for the year, for each member of the partnership that is the purchaser, the portion that may reasonably be considered to be the partner's share of the lesser of
(c) the amount included, in respect of the property, in the research and development tax credit of the original user; and
(d) the amount determined by applying the percentage that was applied in computing the research and development tax credit referred to in clause (c) to
(ii) in any other case, the fair market value of the property or the other property at the time of the conversion or disposition.
(a) that was acquired by the purchaser in circumstances described in subsection (15) or that is another property that incorporates a property acquired in such circumstances; and
(b) that was first acquired, or that incorporates a property that was first acquired, by a partnership, in this subsection referred to as the "original user", with which the purchaser did not deal at arm's length at the time at which the purchaser acquired the property, in the original user's taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user's four preceding taxation years or fiscal periods,
there shall be added to the tax otherwise payable under this Part for the year, for each member of the partnership that is the purchaser, the portion that may reasonably considered to be the partner's share of the lesser of
(c) the amount that can reasonably be considered to have been included in respect of the property in computing the research and development tax credit under subsection (8) in respect of all the corporations that were members of the original user; and
(d) the amount determined by applying the percentage that was applied in computing the research and development tax credit referred to in clause (c), times the proportion of that research and development tax credit that was utilized by the corporations that were members of the original user was of the total research and development tax credit calculated as if the original user was a corporation, to
(ii) in any other case, the fair market value of the property or the other property at the time of the conversion or disposition.
(21) A qualifying corporation is not entitled to a tax credit under this Part in relation to its eligible expenditure in a taxation year unless, within eighteen months after the end of the taxation year, the corporation files the form containing the information required under subsection (20). 2000, c. 4, s. 61; 2001, c. 3, s. 12; 2002, c. 5, s. 27; 2003, c. 4, s. 20; 2005, c. 6, s. 20.
42 (1) In this Section, "active business" has the meaning assigned to the expression "active business carried on by a corporation" in subsection 125(7) of the Federal Act.
(2) In this Section, "Minister" means the Minister of Finance unless the administration of this Section has been separately assigned to another member of the Executive Council in which case it means that other member to whom for the time being the administration of this Section is assigned.
(3) The Minister may delegate to an employee of the Department of Finance any duty or responsibility assigned to the Minister pursuant to this Section.
(4) There may be deducted from the tax otherwise payable pursuant to this Part, for the first, second and third taxation years of a corporation or an association, as defined in the Co-operative Associations Act, that was incorporated after April 24, 1992, pursuant to the laws of the Province, another province of Canada or Canada or by a special Act of the Legislature, an amount equal to the applicable percentage referred to in the description of A in the formula in subsection 40(2) of the amount determined pursuant to subsection (5) for the taxation year, if the corporation is eligible to claim, with respect to the taxation year, a deduction pursuant to subsection 125(1) of the Federal Act.
(5) For the purposes of subsection (4), the amount determined pursuant to this subsection for a taxation year is that proportion of the least of the amounts determined pursuant to paragraphs 125(1)(a), (b) and (c) of the Federal Act for the taxation year, that
(a) its taxable income earned in the year in the Province,
(b) its taxable income earned in the year in a province.
(6) Notwithstanding subsection (4), a corporation is not eligible for a deduction pursuant to subsection (4) for a taxation year if it, or any predecessor corporation thereof, within the meaning of section 87 of the Federal Act, at any time since the date of its incorporation
(a) was associated with any other corporation within the meaning of section 256 of the Federal Act, unless the Minister has waived this restriction with respect to such association with the other corporation;
(b) carried on an active business by reason of being a member of a partnership, where any other member of the partnership was not eligible for a deduction pursuant to subsection (4) for the taxation year;
(c) was a beneficiary of a trust, where any other beneficiary of the trust was not eligible for a deduction pursuant to subsection (4) for the taxation year;
(d) carried on an active business by reason of being a co-venturer in a joint venture, where any other co-venturer in the joint venture was not eligible for a deduction pursuant to subsection (4) for the taxation year;
(e) has carried on an active business by reason of having acquired, by purchase or otherwise, or leased property from another corporation, hereinafter referred to as the "vendor", in respect of which it, any of its shareholders, or any persons related to it or its shareholders, beneficially owned at any time, directly or indirectly, more than 10% of the issued shares of any class of the capital stock of the vendor; or
(f) has carried on an active business by reason of having acquired, by purchase or otherwise, or leased property from a sole proprietorship or partnership, hereinafter referred to as the "vendor", in respect of which it, any of its shareholders, or any persons related to it or its shareholders beneficially owned the vendor.
(7) Notwithstanding subsection (4), a corporation is not eligible for a deduction pursuant to subsection (4) for the taxation year if, prior to incorporation, the same or substantially the same business activity was carried on as a sole proprietorship, partnership or corporation, whether registered as such or not.
(8) Notwithstanding subsection (7), if the same or substantially the same business activity was carried on as a sole proprietorship or partnership, whether registered as such or not, for a period of ninety days or less prior to the date of incorporation, the corporation may apply to the Minister for a certificate of eligibility.
(9) A corporation shall not be entitled to a deduction pursuant to subsection (4) for the taxation year if, as a result of a transaction or an event, or a series of transactions or events, property of a business has been transferred, or has been deemed to have been transferred, either directly or indirectly, to the corporation, and it is reasonable for the Minister to believe that one of the principal purposes of the transfer or deemed transfer is to enable the corporation to claim a deduction from tax pursuant to subsection (4) that it could not otherwise claim.
(10) A corporation is not entitled to a deduction pursuant to subsection (4) for the taxation year if, as a result of a disposition, a deemed disposition or a series of dispositions of shares of any corporation, it is reasonable for the Minister to believe that one of the principal purposes of the disposition or deemed disposition is to enable the corporation to claim a deduction from tax pursuant to subsection (4) that it could not otherwise claim.
(11) For greater certainty, this Section does not apply to a business incorporated for the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor.
(12) To be eligible for a tax deduction pursuant to this Section, a corporation shall apply to the Minister for a certificate of eligibility which the corporation shall file with its income tax return.
(13) A corporation incorporated pursuant to the laws of a province or Canada is not entitled to the deduction pursuant to this Section unless at least 25% of the wages and salaries paid by the corporation in the taxation year are paid to employees who are resident in the Province and the corporation's head office is located in the Province.
(14) The Governor in Council may make regulations
(a) prescribing the terms and conditions of eligibility of a corporation for the deduction, in addition to any eligibility requirements set out in this Section;
(b) determining the order in which a corporation is required to take the deduction provided for in this Section;
(c) respecting the time limits within which an application for the deduction is to be made by a corporation. 2000, c. 4, s. 61; 2001, c. 3, s. 13.
43 Where the income for a taxation year of a corporation that maintained a permanent establishment in the Province at any time in the taxation year includes income described in subparagraph 126(1)(b)(i) of the Federal Act from sources in a country other than Canada, in this Section referred to as "foreign investment income", and where the corporation may claim a deduction under subsection 126(1) of the Federal Act in respect of the foreign investment income, the corporation may deduct from the tax for the year otherwise payable under this Act an amount equal to the lesser of
(ii) that proportion that the corporation's taxable income earned in the year in the Province is of the corporation's taxable income earned in the year; and
(b) that proportion of the amount by which such part of any non-business-income tax paid by the corporation for the year to the government of a country other than Canada, except any such tax or part thereof that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation, exceeds the amount deductible by the corporation under subsection 126(1) of the Federal Act that
(ii) the corporation's taxable income earned in the year in a province.
44 (1) Where an amount is to be refunded to a corporation in respect of a taxation year, pursuant to section 131 of the Federal Act, the Minister shall, subject to subsection (2), at such time and in such manner as is provided in that section, refund to the corporation an amount, in this Section referred to as its "capital gains refund" for the year, equal to that proportion of the amount of the refund for the year calculated under subsection 131(2) of the Federal Act that
(a) the percentage referred to in subsection 40(1) for the year,
(b) the percentage referred to in paragraph (b) of the description of A in the formula in the definition "refundable capital gains tax on hand" in subsection 131(6) of the Federal Act.
(2) For the purpose of computing the capital gains refund under subsection (1) for a corporation in respect of a taxation year, where
(a) the corporation's taxable income earned in the year in the Province,
(b) the corporation's taxable income for the year,
the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (1), that the amount determined under clause (a) is of the amount determined under clause (b).
(3) Subsection 131(3) of the Federal Act applies for the purpose of this Act. 2000, c. 4, s. 61.
45 (1) In this Section, "eligible expenditure" means an expenditure made after 1993 and before January 1, 2001, by a corporation with a permanent establishment in the Province with respect to audit, training and documentation expenses necessary for the corporation to become ISO9000 certified.
(2) A corporation that has made eligible expenditures in a taxation year may apply to the Minister of Finance, at the time and in the manner prescribed by the Minister of Finance, for a tax credit equal to 25% of the lesser of
(a) the amount of eligible expenditures made in the taxation year; and
(3) Where the Minister is satisfied that a corporation is entitled to a tax credit pursuant to this Section, the Minister shall, at the time and in the manner prescribed by the Minister, issue a tax credit certificate to the corporation.
(4) Where a corporation files with its return of income for a taxation year a tax credit certificate issued by the Minister of Finance pursuant to subsection (3), the corporation may deduct from the tax otherwise payable by the corporation under this Act the amount of the tax credit indicated on the tax credit certificate.
(5) The Governor in Council may make regulations
(a) prescribing forms for the purpose of this Section;
(b) governing any matter that may be prescribed pursuant to this Section;
(c) requiring a corporation to supply information or documents respecting any matter required in assessing compliance with this Section;
(d) respecting those expenditures that qualify as eligible expenditures for the purpose of this Section;
(e) defining any word used but not defined in this Section;
(f) to carry out effectively the intent and purpose of this Section. 2000, c. 4, s. 61.
46 (1) In this Section, "eligible expenditure" means an expenditure made after 1994 and before 2000 by a corporation with a permanent establishment in the Province with respect to audit, legal and printing expenses necessary for the corporation to file a prospectus pursuant to the Securities Act or a stock exchange as prescribed by regulation.
(2) A corporation that has made eligible expenditures in a taxation year may apply to the Minister of Finance, at the time and in the manner prescribed by the Minister of Finance, for a tax credit equal to 35% of the lesser of
(a) the amount of eligible expenditures made in the taxation year; or
(3) Where the Minister is satisfied that a corporation is entitled to a tax credit pursuant to this Section, the Minister shall, at the time and in the manner prescribed by the Minister, issue a tax credit certificate to the corporation.
(4) Where a corporation files with its return of income for a taxation year a tax credit certificate issued by the Minister of Finance pursuant to subsection (3), the corporation may deduct from the tax otherwise payable by the corporation under this Act the amount of the tax credit indicated on the tax credit certificate.
(a) has been issued a tax certificate pursuant to this Section; and
(b) the amount of the tax credit exceeds the amount of tax payable by the corporation for the taxation year,
the corporation may carry forward and deduct any unused balance of the tax credit from tax otherwise payable by the corporation in any one or more of the corporation's seven subsequent taxation years.
(6) The Governor in Council may make regulations
(a) prescribing forms for the purpose of this Section;
(b) governing any matter that may be prescribed pursuant to this Section;
(c) requiring a corporation to supply information or documents respecting any matter required in assessing compliance with this Section;
(d) respecting those expenditures that qualify as eligible expenditures for the purpose of this Section;
(e) respecting those corporations that are eligible for the tax credit pursuant to this Section;
(f) defining any word or expression used but not defined in this Section;
(g) to carry out effectively the intent and purpose of this Section. 2000, c. 4, s. 61.
47 (1) A corporation producing an eligible film in the Province may apply in the manner prescribed by the Minister of Finance for a film industry tax credit.
(2) Where the corporation meets the prescribed criteria, there may be deducted from tax otherwise payable by the corporation an amount equal to the lesser of
(ii) for film production activity undertaken in an eligible geographic area of the Province as prescribed by regulation,
(B) 40% of the eligible salaries paid on or after January 1, 2005, and before 2016 to residents of the Province, and
(2A) A corporation may be eligible for an additional frequent filmer credit of 5% of the eligible salaries of an eligible film if
(a) the principal photography for the film commenced on or after January 1, 2005;
(b) the date of commencement of principal photography is preceded by the commencement of the principal photography for two other eligible films within the seven hundred and thirty days prior to the date referred to in clause (a);
(c) the principal photography is completed before 2016;
(d) the principal owner for each of the three films is the same person or group of persons; and
(e) the film satisfies the eligibility criteria prescribed by regulation.
(3) The amount by which the tax credit referred to in subsection (2) exceeds the corporation's tax payable for the taxation year calculated without reference to this Section may be applied by the Minister of Finance to pay
(a) any tax, interest or penalty owing by the corporation for that or any prior taxation year pursuant to this Act, the income statute of any agreeing province or the Federal Act;
(b) any contribution, penalty or interest by the corporation for that or any prior taxation year as a result of payments required from the corporation pursuant to the Canada Pension Plan Act (Canada);
(c) any premium, interest or penalty owing by the corporation for that or any prior taxation year pursuant to the Employment Insurance Act (Canada),
and the part of the amount not so applied shall be paid to the corporation.
(4) The Governor in Council may make regulations
(a) prescribing forms for the purpose of this Section;
(b) governing any matter that may be prescribed pursuant to this Section;
(c) requiring a corporation to supply information or documents respecting any matter required in assessing compliance with this Section;
(d) respecting those corporations that are eligible for the tax credit pursuant to this Section;
(e) prescribing the criteria for determining when an expenditure has occurred in an eligible geographic area;
(f) prescribing eligible geographic areas of the Province;
(g) defining any word or expression used but not defined in this Section;
(h) to carry out effectively the intent and purpose of this Section. 2000, c. 4, s. 61; 2002, c. 5, s. 28; 2003, c. 4, s. 21; 2005, c. 6, s. 22.
48 (1) In this Section, "eligible expenditure" means an expenditure made after 1995 and before January 1, 2001, by a corporation with a permanent establishment in the Province with respect to audit, training and documentation expenses necessary for the corporation to become ISO14000 certified.
(2) A corporation that has made eligible expenditures in a taxation year may apply to the Minister of Finance, at the time and in the manner prescribed by the Minister of Finance, for a tax credit equal to 25% of the lesser of
(a) the amount of eligible expenditures made in the taxation year; and
(3) Where the Minister is satisfied that a corporation is entitled to a tax credit pursuant to this Section, the Minister shall, at the time and in the manner prescribed by the Minister, issue a tax credit certificate to the corporation.
(4) Where a corporation files with its return of income for a taxation year a tax credit certificate issued by the Minister of Finance pursuant to subsection (3), the corporation may deduct from the tax otherwise payable by the corporation under this Act the amount of the tax credit indicated on the tax credit certificate.
(5) The Governor in Council may make regulations
(a) prescribing forms for the purpose of this Section;
(b) governing any matter that may be prescribed pursuant to this Section;
(c) requiring a corporation to supply information or documents respecting any matter required in assessing compliance with this Section;
(d) respecting those expenditures that qualify as eligible expenditures for the purpose of this Section;
(e) defining any word or expression used but not defined in this Section;
(f) respecting any matter or thing the Governor in Council considers necessary or advisable to carry out effectively the intent and purpose of this Section. 2000, c. 4, s. 61.
(a) "capital cost" to the corporation has the meaning assigned by paragraph 127(11.1)(b) and (d) of the Federal Act and, for greater certainty, for the purpose of this subsection, "government assistance" as described in paragraph 127(11.1)(b) and (d) of the Federal Act does not include the investment tax credit determined under this Section;
(b) "investment tax credit" of a corporation at the end of a taxation year means the amount, if any, by which the total of
(B) 15% of the total of all amounts each of which is the capital cost to the corporation of a qualified property acquired by it after December 31, 2000, but before January 1, 2003,
determined without reference to subsection 13(7.1) of the Federal Act,
(B) where a qualified property is acquired after December 31, 2000, and before January 1, 2003, 15% of the total of all amounts each of which is the capital cost to the corporation of the qualified property acquired by it in any of the seven taxation years immediately preceding or the three taxation years immediately following the year of acquisition,
determined without reference to subsection 13(7.1) of the Federal Act,
(iii) an amount equal to the total of all amounts each of which is an amount required by subsection (3), (4) or (5) to be added in computing its investment tax credit at the end of the year, and
(iv) the total of all amounts each of which is an amount required by subsection (3), (4) or (5) to be added in computing its investment tax credit at the end of any of the seven taxation years immediately preceding or the three taxation years immediately following the year,
(c) "manufacturing or processing" has the meaning assigned by the definition "manufacturing or processing" in subsection 125.1(3) of the Federal Act and includes qualified activities as defined by Federal Regulations made for the purpose of subsection 125.1(3) of the Federal Act;
(d) "qualified property" of a corporation means property acquired by the corporation after December 31, 1996, and before January 1, 2003, that is qualified property within the meaning assigned by the definition under subsections 127(9) and (11) of the Federal Act, that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the corporation and that is
(ii) to be leased by the corporation to a lessee, other than a person exempt from tax under section 149 of the Federal Act, who can reasonably be expected to use the property in the Province primarily for the purpose of manufacturing or processing of goods for sale or lease,
but subclause (ii) does not apply in respect of property that is machinery and equipment unless the property is leased by the corporation in the ordinary course of carrying on a business in the Province and the principal business of the corporation is manufacturing property that it sells or leases.
(2) There may be deducted from the tax otherwise payable pursuant to this Act by a corporation for a taxation year an amount not exceeding the lesser of
(a) the corporation's investment tax credit at the end of the year; and
(b) the tax otherwise payable by the corporation pursuant to this Act for the year.
(3) Where, in a particular taxation year of a corporation that is a beneficiary under a trust, an amount would, if the trust were a corporation, be determined in respect of the trust under subclause (1)(b)(i) or (iii) for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all circumstances, including the terms and conditions of the trust, reasonably be considered to be the corporation's share thereof is the amount required to be added in computing the investment tax credit of the corporation at the end of that particular taxation year.
(4) Where, in a particular taxation year of a corporation that is a member of a partnership, an amount would, if the partnership were a corporation, be determined in respect of the partnership under subclause (1)(b)(i) or (iii) for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share thereof is the amount required to be added in computing the investment tax credit of the corporation at the end of that particular taxation year.
(5) Where, in a particular taxation year of a corporation that is a member of a limited partnership, an amount would, if the limited partnership were a corporation, be determined in respect of the limited partnership under subclause (l)(b)(i) or (iii) for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share thereof, determined with reference to subsection 127(8.1) of the Federal Act, is the amount required to be added in computing the investment tax credit of the corporation at the end of that particular taxation year.
(6) Where, after December 31, 1996, there has been an amalgamation within the meaning of subsection 87(1) of the Federal Act and one or more of the predecessor corporations had an investment tax credit for any taxation year any portion of which was not deducted by the predecessor corporation in computing its tax otherwise payable under this Act for any taxation year, for the purpose of computing the new corporation's investment tax credit at the end of any taxation year, the new corporation is deemed to be the same corporation as, and a continuation of, each such predecessor corporation.
(7) Where, after December 31, 1996, there has been a winding-up to which subsection 88(1) of the Federal Act applies and the subsidiary had an investment tax credit for any taxation year any portion of which was not deducted by the subsidiary in computing its tax otherwise payable under this Act for any taxation year, and with reference to paragraph 88(1)(e.3) of the Federal Act, for the purpose of computing the parent's investment tax credit at the end of any particular taxation year ending after the subsidiary was wound up, the parent is deemed to be the same corporation as, and a continuation of, the subsidiary.
(8) Subsections 127(9.1) and (9.2) and paragraph (m) of the definition of "investment tax credit" of subsection 127(9) of the Federal Act apply for the purpose of this Section.
(9) The corporation may renounce the investment tax credit in respect of qualified property acquired during the year in whole or in part on or before the time on or before which the corporation is required to file its return of income for the year pursuant to section 150 of the Federal Act and, where the corporation so renounces entitlement to that portion of the credit, the corporation is deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the credit or that part of the credit.
(10) The Governor in Council may make regulations respecting
(a) the capital costs of a qualified property primarily incurred on or before December 31, 2000, which may be deducted pursuant to this Section;
(b) the deduction of capital costs of a qualified property with respect to a project initiated before January 1, 2003, and completed after that date. 2000, c. 4, s. 61; 2001, c. 3, s. 14.
(a) "candidate" means a person who has been officially nominated as a candidate pursuant to the Elections Act;
(b) "donations in kind" means any property other than money given or provided to or for the benefit of a recognized party or a candidate without compensation from the recognized party or candidate, and includes services of an employee of the taxpayer provided to a recognized party or a candidate without compensation from the recognized party or candidate;
(c) "recognized party" means a recognized party within the meaning of the Elections Act.
(2) In respect of the aggregate amount of contributions, other than donations in kind, made by a taxpayer to candidates and recognized parties during the taxation year, that taxpayer may deduct from the amount of tax which that taxpayer would otherwise be required to pay under this Act an amount equal to
(a) 75% of the aggregate amount contributed if the aggregate amount contributed does not exceed $100;
(b) $75 plus 50% of the amount by which the aggregate amount contributed exceeds $100 but does not exceed $550; or
or the amount of the tax payable, whichever is the lesser.
(3) Payment of each amount that is included in the aggregate amount of contributions in respect of which a deduction is claimed under subsection (2) shall be proved by filing with the Minister receipts containing prescribed information, signed by the official agent of the recognized party or the official agent of the candidate, as the case may be.
(4) Where a person was, at the end of a taxation year of a partnership, a member of the partnership, that person's share of any amount contributed by the partnership in that taxation year that would, if the partnership were a person, be a contribution referred to in subsection (2), shall, for the purposes of subsection (2), be deemed to be a contribution by the taxpayer in the taxpayer's taxation year in which the taxation year of the partnership ended. 2000, c. 4, s. 61.
51 Subsection 70(7), except the portion thereof that is after paragraph (a) thereof, sections 150, 150.1 and 151 and subsections 152(1) to (3.1) and (4) to (9), 153(1) to (3) and 156.1(4) of the Federal Act apply for the purposes of this Act. 2000, c. 4, s. 61.
52 When a collection agreement is in effect, notwithstanding that the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, if the tax payable under Part I of the Federal Act by the taxpayer for the year is reassessed, the Minister shall reassess, make additional assessments or assess tax, interest or penalties as the circumstances require. 2000, c. 4, s. 61.
53 Section 155 of the Federal Act applies for the purpose of this Act. 2000, c. 4, s. 61.
54 (1) Section 156 of the Federal Act applies for the purpose of this Act.
(2) Where, because of subsection 156.1(2) or (3) of the Federal Act, no instalment is required to be made under section 155 or 156 of the Federal Act by an individual for a particular taxation year, the requirements for payment of instalments under Section 53 and subsection (1) do not apply to the individual for that year. 2000, c. 4, s. 61.
55 (1) Subsections 157(1), (2), (2.1) and (4) of the Federal Act apply for the purpose of this Act.
(2) Where a collection agreement is in effect, a corporation that pays amounts in respect of a taxation year computed pursuant to subparagraphs 157(1)(a)(i), (ii) or (iii) of the Federal Act and that is required to make payments pursuant to subsection 157(1) of the Federal Act, as it applies for the purpose of this Act, shall pay amounts in respect of the year computed pursuant to the same subparagraph as it applies for the purpose of this Act. 2000, c. 4, s. 61.
56 Subsection 70(2), paragraphs 104(23)(d) and (e), sections 158, 159 and 160, subsections 160.1(1), (3) and (4), sections 160.2 and 160.3, and subsections 161(1) to (7), (9) and (11) of the Federal Act apply for the purpose of this Act. 2000, c. 4, s. 61.
57 In applying subsection 160.1(1) of the Federal Act for the purpose of this Act, "refund" includes a refund that arises by reason of the provision of this Act
(a) that allows a taxpayer to deduct an amount from the tax payable pursuant to this Act; or
(b) that deems an amount to have been paid by a taxpayer as or on account of the tax payable pursuant to this Act by the taxpayer. 2000, c. 4, s. 61.
58 (1) Where an individual is deemed under subsection 161(4) of the Federal Act to be liable, in respect of tax payable under Part I of the Federal Act for a taxation year, to pay a part or instalment computed by reference to an amount described in paragraph 161(4)(a), (b) or (c) of the Federal Act, notwithstanding subsection 161(4) of the Federal Act, as it applies for the purposes of this Act, the individual is deemed for the purposes of subsection 161(2) of the Federal Act, as it applies for the purposes of this Act, to be liable to pay, in respect of tax payable under this Act for the year, a part or instalment computed by reference to the same paragraph, as it applies for the purposes of this Act.
(2) Where an individual is deemed under subsection 161(4.01) of the Federal Act to be liable, in respect of tax payable under Part I of the Federal Act for a taxation year, to pay a part or instalment computed by reference to an amount described in paragraph 161(4.01)(a), (b), (c) or (d) of the Federal Act, notwithstanding subsection 161(4.01) of the Federal Act, as it applies for the purposes of this Act, the individual is deemed for the purposes of subsection 161(2) of the Federal Act, as it applies for the purposes of this Act, to be liable to pay, in respect of tax payable under this Act for the year, a part or instalment computed by reference to the same paragraph, as it applies for the purposes of this Act. 2000, c. 4, s. 61.
59 Subsections 162(1) to (3), (5), (7) and (11) and section 235 of the Federal Act apply for the purpose of this Act. 2000, c. 4, s. 61.
60 Subsection 163(1), subsection 163(2) as it would apply without the references to subsection 120(2) of the Federal Act therein, and subsections 163(2.1), (3) and (4) of the Federal Act apply for the purpose of this Act. 2000, c. 4, s. 61.
61 Section 163.1 of the Federal Act applies for the purpose of this Act. 2000, c. 4, s. 61.
62 (1) Subsections 164(1) to (1.31) and (1.5), (2) and (3) to (7) of the Federal Act apply for the purpose of this Act.
(2) Where a collection agreement is in effect and by reason of a decision referred to in subsection 164(4.1) of the Federal Act a repayment of tax, interest or penalties pursuant to that Act for a taxation year is made to a taxpayer or any security accepted pursuant to that Act for such tax, interest or penalties is surrendered to the taxpayer, subsection 164(4.1) of the Federal Act, as it applies for the purpose of this Act, applies to any overpayment of tax, interest or penalties pursuant to this Act for the year that arises by reason of the decision. 2000, c. 4, s. 61.
63 Sections 165, 166.1 and 166.2 of the Federal Act apply for the purpose of this Act. 2000, c. 4, s. 61.
64 (1) Section 169 of the Federal Act applies for the purpose of this Act.
(2) An appeal from an assessment under this Act may be taken in respect of any question relating,
(a) in the case of an individual, to the determination of
(ii) the individual's income earned in the taxation year in the Province, as defined in clause 7(c), and the individual's income for the year, as defined in clause 7(e),
(iii) the amount of tax payable for a taxation year to the extent that tax payable is based on the tax payable under the Federal Act for that year, as defined in clause 7(g), and the amount of tax payable for a taxation year to the extent that tax payable is based on the individual's taxable income under the Federal Act for that year, or
(iv) any credit against, or deduction from, tax payable by the individual under this Act as provided for in this Act; and
(b) in the case of a corporation, to the determination of
(ii) the amount of tax payable for a taxation year based on the taxable income of the corporation for that year,
but no appeal from an assessment lies in respect of the computation of the tax payable under the Federal Act, as defined in clause 7(g), of the taxable income of an individual or of the taxable income of a corporation.
(3) An appeal to the Court shall be instituted by serving upon the Minister of Finance a notice of appeal in duplicate in prescribed form and by filing a copy thereof with the registrar of the Court or the local registrar of the Court for the county or district in which the taxpayer resides.
(4) A notice of appeal shall be served upon the Minister of Finance by being sent by registered mail addressed to the deputy head.
(5) The taxpayer appealing shall set out in the notice of appeal a statement of the allegations of fact, the statutory provisions and the reasons that the taxpayer intends to submit in support of the taxpayer's appeal.
(6) The taxpayer appealing shall pay to the registrar of the Court a fee of fifteen dollars upon the filing of the copy of the notice of appeal with the registrar. 2000, c. 4, s. 61.
65 (1) The Minister of Finance shall, within sixty days from the day the notice of appeal is received, or within such further time as the Court or a judge thereof may either before or after the expiration of that time allow, serve on the appellant and file in the Court a reply to the notice of appeal admitting or denying the facts alleged and containing a statement of such further allegations of fact and of such statutory provisions and reasons as the Minister of Finance intends to rely on.
(2) The Court or a judge may, in the Court's or the judge's discretion, strike out a notice of appeal or any part thereof for failure to comply with subsection 64(5) and may permit an amendment to be made to a notice of appeal or a new notice of appeal to be substituted for the one struck out.
(3) The Court or a judge may, in the Court's or the judge's discretion,
(a) strike out any part of a reply for failure to comply with this Section or permit the amendment of a reply; and
(b) strike out a reply for failure to comply with this Section and order a new reply to be filed within a time to be fixed by the order.
(4) Where a notice of appeal is struck out for failure to comply with subsection 64(5) and a new notice of appeal is not filed as and when permitted by the Court or a judge, the Court or a judge thereof may, in the Court's or the judge's discretion, dispose of the appeal by dismissing it.
(5) Where a reply is not filed as required by this Section or is struck out under this Section and a new reply is not filed as ordered by the Court or a judge within the time ordered, the Court may dispose of the appeal ex parte or after a hearing on the basis that the allegations of fact contained in the notice of appeal are true. 2000, c. 4, s. 61.
66 (1) Upon the filing of the material referred to in Sections 64 and 65, the matter is deemed to be an action in the Court and, unless the Court otherwise orders, ready for hearing.
(2) Any fact or statutory provision not set out in the notice of appeal or reply may be pleaded or referred to in such manner and upon such terms as the Court may direct. 2000, c. 4, s. 61.
67 Sections 166, 167, 171, 179 and 179.1 of the Federal Act apply for the purpose of this Act. 2000, c. 4, s. 61.
68 Except as provided in regulations prescribed by the Governor in Council, the practice and procedure of the Court apply to every matter deemed to be an action under Section 66 and every judgment and order given or made in every such action may be enforced in the same manner and by the like process as a judgment or order given or made in an action commenced in the Court. 2000, c. 4, s. 61.
(a) "financial institution", in respect of a taxation year, means a corporation that at any time in the year is
(ii) authorized under the laws of Canada, the Province or a province to carry on the business of offering its services as a trustee to the public;
(b) "long-term debt" has the same meaning as in subsection 181(1) of the Federal Act;
(c) "reserves" has the same meaning as in subsection 181(1) of the Federal Act. 2000, c. 4, s. 61.
70 Subsections 181(2), (3) and (4) of the Federal Act apply for the purpose of this Part. 2000, c. 4, s. 61; 2001, c. 3, s. 15.
71 (1) Every corporation, other than a corporation described in paragraphs (a) or (c) in the definition of "financial institution" in subsection 181(1) or subsection 181.1(3) of the Federal Act, that has a permanent establishment in the Province in a taxation year ending after March 31, 1997, shall pay a tax under this Part for the taxation year equal to
(a) where the aggregate of the corporation's taxable capital for the year, as determined under subsection (4), and the taxable capital for the year of all related corporations is less than ten million dollars
(ii) 0.6% of taxable capital employed in the Province for the years as determined under subsection (2) multiplied by the amount that the number of days in the year that are after March 31, 2004 but before July 1, 2005, is of three hundred and sixty-five,
(iii) 0.55% of taxable capital employed in the Province for the years as determined under subsection (2) multiplied by the amount that the number of days in the year that are after June 30, 2005 but before July 1, 2006, is of three hundred and sixty-five,
(iv) 0.5% of taxable capital employed in the Province for the years as determined under subsection (2) multiplied by the amount that the number of days in the year that are after June 30, 2006 but before July 1, 2007, is of three hundred and sixty-five,
(v) 0.45% of taxable capital employed in the Province for the years as determined under subsection (2) multiplied by the amount that the number of days in the year that are after June 30, 2007 but before July 1, 2008, is of three hundred and sixty-five,
(vi) 0.4% of taxable capital employed in the Province for the years as determined under subsection (2) multiplied by the amount that the number of days in the year that are after June 30, 2008, is of three hundred and sixty-five; or
(ii) 0.3% of the taxable capital employed in the Province for the year as determined under subsection (2) multiplied by the amount that the number of days in the year that are after March 31, 2004 but before July 1, 2005, is of three hundred and sixty-five,
(iii) 0.275% of taxable capital employed in the Province for the year as determined under subsection (2) multiplied by the amount that the number of days in the year that are after June 30, 2005 but before July 1, 2006, is of three hundred and sixty-five,
(iv) 0.25% of taxable capital employed in the Province for the year as determined under subsection (2) multiplied by the amount that the number of days in the year that are after June 30, 2006 but before July 1, 2007, is of three hundred and sixty-five,
(v) 0.225% of taxable capital employed in the Province for the year as determined under subsection (2) multiplied by the amount that the number of days in the year that are after June 30, 2007 but before July 1, 2008, is of three hundred and sixty-five, and
(vi) 0.2% of taxable capital employed in the Province for the year as determined under subsection (2) multiplied by the amount that the number of days in the year that are after June 30, 2008, is of three hundred and sixty-five.
(a) where the corporation has no permanent establishment situated outside the Province, the difference between its taxable capital for the year determined under subsection (4) and its capital deduction for the year determined under Section 72; or
(b) where the corporation has a permanent establishment situated outside the Province, that proportion determined under subsection (3) of the difference between its taxable capital for the year determined under subsection (4) and its capital deduction for the year determined under Section 72.
(3) For the purpose of determining taxable capital employed in the Province, the proportion is determined by the formula
A is the taxable income earned in the year in the Province determined in accordance with Part IV of the Federal Income Tax Regulations determined without reference to this Part; and
B is the total of all amounts each of which is the amount determined in accordance with Part IV of the Federal Income Tax Regulations of the corporation's taxable income earned in the year in a particular province or the amount of its taxable income that would, pursuant to that Part, be earned in the year in a province if all permanent establishments in Canada were in a province, determined without reference to this Part, except that, where the corporation's taxable income for the year is nil, the corporation shall, for the purpose of this subsection, be deemed to have a taxable income for the year of $1,000.
(4) Taxable capital for the year means
(a) in the case of a resident corporation, other than a financial institution, the taxable capital employed in Canada determined in accordance with section 181.2 of the Federal Act and without reference to this Part;
(b) in the case of a non-resident corporation, other than a financial institution, the taxable capital employed in Canada determined in accordance with section 181.4 of the Federal Act; or
(c) in the case of a corporation that is defined as a financial institution under the Federal Act but not under this Part, the taxable capital employed in Canada determined in accordance with section 181.3 of the Federal Act.
(5) Where a taxation year of a corporation is less than fifty-one weeks, the amount determined under subsection (1) for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year is of three hundred and sixty-five.
(6) Where a taxation year of a corporation begins before April 1, 1997, and ends after March 31, 1997, the tax otherwise payable under this Section for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year after March 31, 1997, is of the number of days in the taxation year.
(7) Where a taxation year of a corporation begins before April 1, 2002, and ends after June 30, 2009, the tax otherwise payable under this Section for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year prior to July 1, 2009, is of the number of days in the taxation year. 2000, c. 4, s. 61; 2001, c. 3, s. 16; 2002, c. 5, s. 29; 2003, c. 4, s. 22; 2004, c. 3, s. 28; 2005, c. 6, s. 23.
72 (1) The capital deduction of a corporation for a taxation year is
(a) where the corporation's taxable capital for the year, as determined under subsection 71(4), is less than ten million dollars, five million dollars unless the corporation was related to another corporation in the year, in which case, subject to subsection (4), its capital deduction for the year is nil; or
(2) A corporation that is related to any other corporation in a taxation year of the corporation ending in a calendar year may file with the Minister in the prescribed form an agreement on behalf of the related group of which the corporation is a member under which an amount that does not exceed five million dollars is allocated among all corporations that are members of the related group for each taxation year of each such corporation ending in the calendar year and whose combined taxable capital for the year as determined under subsection 71(4) is less than ten million dollars and at a time when it was a member of the related group.
(3) The Minister may request a corporation that is related to any other corporation at the end of a taxation year to file with the Minister an agreement referred to in subsection (2) and, if the corporation does not file such an agreement within thirty days after the request, the Minister may allocate an amount among the members of the related group of which the corporation is a member for the year not exceeding five million dollars.
(4) Subsections 181.5(4) to (7) of the Federal Act apply mutatis mutandis for the purpose of this Part.
(5) In this Section, a corporation is "related" to another corporation or is a member of a "related group" within the meaning assigned to those expressions by section 251 of the Federal Act.
(6) In this Section, one corporation is "associated" with another in a taxation year within the meaning assigned to that word by section 256 of the Federal Act. 2000, c. 4, s. 61; 2001, c. 3, s. 17.
74 Every corporation that is liable to pay tax under this Part for a taxation year shall file with the Minister not later than the day on or before which the corporation is required by Section 51 to file its return of income, a return of capital for the year in the prescribed form containing an estimate of the tax payable under this Part by it for the year. 2000, c. 4, s. 61.
75 Sections 152, 158 and 159, subsection 161(11), sections 162 to 167 and division J of Part I of the Federal Act apply to this Part. 2000, c. 4, s. 61.
76 The Governor in Council may make regulations that are deemed necessary or advisable to carry out effectively the intent and purpose of this Part. 2000, c. 4, s. 61.
77 This Part applies to taxation years ending after March 31, 1997, and for taxation years beginning before April 1, 2009. 2000, c. 4, s. 61; 2002, c. 5, s. 30; 2003, c. 4, s. 23; 2005, c. 6, s. 24.
78 Notwithstanding anything contained in this Act, the amount of tax payable pursuant to this Part shall not be reduced by any tax credit provided under this Act. 2000, c. 4, s. 61.
79 Sections 220, 221.1, 224, 225.1 and 225.2 of the Federal Act apply for the purpose of this Act. 2000, c. 4, s. 61.
80 (1) The Governor in Council may make regulations
(a) prescribing anything that, by this Act, is to be prescribed or is to be determined or regulated by regulation;
(b) defining the Nova Scotia Child Benefit Program;
(c) prescribing the eligibility criteria and payment amounts for the Nova Scotia Child Benefit Program;
(d) prescribing anything necessary or advisable to enable Her Majesty in right of Canada to administer, on behalf of Her Majesty in right of the Province, the Nova Scotia Child Benefit Program;
(e) providing in any case of doubt the circumstances in which, and the extent to which, the Federal Regulations apply;
(f) generally to carry out the purposes and the provisions of this Act.
(2) Except to the extent that they are inconsistent with any regulations made under subsection (1) or are expressed by any regulation made under subsection (1) to be inapplicable, the Federal Regulations made under subsection 221(1) of the Federal Act apply mutatis mutandis for the purposes of this Act with respect to all matters enumerated in that subsection.
(3) No regulation made under this Act or under the Federal Act where it is applicable mutatis mutandis has effect for the purposes of this Act until it has been published in the Royal Gazette or the Canada Gazette, as the case may be, but, when so published, a regulation shall, if it so provides, be effective with reference to a period before it was published.
(4) Regulations made under this Act are regulations within the meaning of the Regulations Act. 2000, c. 4, s. 61.
(a) "avoidance transaction" means a transaction
(ii) that is part of a series of transactions, which series, but for this Section, would result, directly or indirectly, in a tax benefit,
(iv) to be a transaction that would not result, directly or indirectly, in a misuse of the provisions of this Act or an abuse having regard to the provisions of this Act, other than this Section, read as a whole;
(ii) to reduce, avoid or defer a tax, or another amount payable as or in respect of tax, under any other federal or provincial Act,
(iii) to increase a refund of tax, or of another amount in respect of tax, under any other federal or provincial Act;
(ii) an increase in a refund of tax, or of another amount, under this Act;
(D) taxable income earned in Canada,
(E) income earned in the taxation year in the Province, within the meaning of Section 7,
(F) income earned in the taxation year outside the Province, within the meaning of Section 7, or
(G) taxable income earned in the year in the Province, within the meaning of Section 40, or
(2) Where a transaction is an avoidance transaction, the tax consequences to a person must be determined in a manner that is reasonable in the circumstances in order to deny a tax benefit that, but for this Section, would result, directly or indirectly, from that transaction or from a series of transactions that includes that transaction.
(3) Without limiting subsection (2),
(a) any amount deducted in computing an amount referred to in the definition of "tax consequences" in subsection (1) may be allowed or disallowed in whole or in part;
(b) any deduction referred to in clause (a) or any other amount used in determining an amount payable or refundable under this Act may be allocated to any person;
(c) the nature of any payment or other amount may be recharacterized; and
(d) the tax effects that would otherwise result from the application of other provisions of this Act may be ignored,
in determining the tax consequences to a person in a manner that is reasonable in the circumstances in order to deny a tax benefit that would, but for this Section, result, directly or indirectly, from an avoidance transaction.
(4) Where a notice of assessment, reassessment or additional assessment reflecting the application of subsection (2) to a transaction has been sent to a person, or a notice of determination has been sent to the person, any other person is entitled, within one hundred and eighty days after the date of the mailing of that notice, to request in writing that the Minister make an assessment, reassessment or additional assessment applying subsection (2) or otherwise make a determination respecting returns of income, assessments of tax, withholdings of tax or reassessments of tax.
(5) On receipt of a request by a person under subsection (4), the Minister shall consider the request and make an assessment, reassessment, additional assessment or a determination with respect to the person, notwithstanding the expiry of any time limits, except that an assessment, reassessment, additional assessment or a determination may be made under this subsection only to the extent that it may be reasonably regarded as relating to a transaction referred to in subsection (4).
(6) The tax consequences to any person, after the application of this Section, may only be determined through a notice of assessment, reassessment or additional assessment or determination under Section 51 or 52. 2005, c. 6, s. 25.
81 Section 222 of the Federal Act applies for the purpose of this Act. 2000, c. 4, s. 61.
82 (1) Subsection 223(1), except paragraphs (b), (b.1), (c) and (d) thereof, and subsections 223(2) to (4) of the Federal Act apply for the purpose of this Act.
(2) Where a collection agreement is in effect, subsection (1) does not apply, but the Minister may proceed pursuant to section 223 of the Federal Act for the purpose of collecting any amount payable pursuant to this Act by a taxpayer. 2000, c. 4, s. 61.
83 The Minister of Finance may issue a warrant directed to the sheriff of any county or district in which any property of the taxpayer is located or situate, for the amount of the tax, interest and penalty, or any of them, owing by the taxpayer, together with interest thereon from the date of the issue of the warrant and the costs, expenses and poundage of the sheriff, and such warrant shall have the same force and effect as an execution order issued out of the Court. 2000, c. 4, s. 61.
84 Section 224.2 of the Federal Act applies for the purpose of this Act. 2000, c. 4, s. 61.
85 Section 224.3 of the Federal Act applies for the purposes of this Act. 2000, c. 4, s. 61.
86 Section 225 of the Federal Act applies for the purpose of this Act. 2000, c. 4, s. 61.
87 Section 226 of the Federal Act applies for the purpose of this Act. 2000, c. 4, s. 61.
88 (1) Subsections 227(1) to (5.2), (8), (8.2) to (9), (9.2), and (9.4) to (13) of the Federal Act apply for the purpose of this Act.
(a) any person for any amount that has been deducted or withheld by that person pursuant to this Act or a regulation or pursuant to a provision of the Federal Act or of the Federal Regulations that applies for the purpose of this Act; and
(b) any person for any amount payable by that person pursuant to subsection 224(4) or (4.1), section 227.1 or 235 of the Federal Act, as they apply for the purpose of this Act, or Section 92,
and, where the Minister sends a notice of assessment to that person, Sections 51 and 56 to 68 are applicable with such modifications as the circumstances require.
(3) Notwithstanding any other provision of this Act or any other enactment, the penalty for failure to remit an amount required to be remitted by a person on or before the day prescribed in the Federal Regulations made for the purposes of subsection 153(1) of the Federal Act, as both those regulations and that subsection apply for the purposes of this Act, shall, unless the person required to remit the amount has, knowingly or under circumstances that amount to gross negligence, delayed in remitting the amount or has, knowingly or under circumstances that amount to gross negligence, remitted an amount less than the amount required to be remitted, apply only to the amount by which the total of all amounts so required to be remitted on or before that day exceeds five hundred dollars. 2000, c. 4, s. 61.
89 Section 227.1 of the Federal Act applies for the purpose of this Act. 2000, c. 4, s. 61.
90 Section 230 of the Federal Act applies for the purpose of this Act. 2000, c. 4, s. 61.
91 (1) Sections 231 to 231.5 of the Federal Act apply for the purpose of this Act.
(2) Sections 232, 233 and 236 of the Federal Act apply for the purpose of this Act. 2000, c. 4, s. 61.
92 (1) Every person who fails to comply with a regulation made under paragraph 221(1)(d) or (e) of the Federal Act as it applies by virtue of subsection 80(2) is liable in respect of each failure to so comply to a penalty of ten dollars a day for each day of default but not exceeding in all two thousand five hundred dollars.
(2) Every person who fails to comply with a regulation made under Section 80 or incorporated by reference by virtue of subsection (2) thereof is liable to a penalty of ten dollars a day for each day of default but not exceeding in all two thousand five hundred dollars. 2000, c. 4, s. 61.
93 (1) Every person who fails to file a return as and when required by or pursuant to this Act or a regulation, or by or pursuant to a provision of the Federal Act or of the Federal Regulations as the provision applies for the purpose of this Act, or who fails to comply with any of subsections 153(1), 227(5) and 230(3), (4) and (6) and sections 231 to 231.5 and 232 of the Federal Act, as it applies for the purpose of this Act, or with an order made pursuant to subsection (2), is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to
(a) a fine of not less than one thousand dollars and not more than twenty-five thousand dollars; or
(b) both the fine referred to in clause (a) and imprisonment for a term not exceeding twelve months.
(2) Subsection 238(2) of the Federal Act applies for the purpose of this Act.
(3) Where a person is convicted pursuant to this Section for failure to comply with a provision of this Act or a regulation or a provision of the Federal Act or of the Federal Regulations that applies, for the purpose of this Act, that person is not liable to a penalty pursuant to subsection 227(8), (8.5), (9) or (9.5) of the Federal Act, as those subsections apply for the purpose of this Act, or pursuant to Section 59 or 92 for the same failure unless that person was assessed for that penalty or that penalty was demanded from that person before the information or complaint giving rise to the conviction was laid or made. 2000, c. 4, s. 61.
94 Subsections 239(1) and (1.1) of the Federal Act apply for the purpose of this Act. 2000, c. 4, s. 61.
95 Where a collection agreement is entered into and proceedings under section 238 or 239 of the Federal Act are taken against any person, the Minister may take or refrain from any action against such person contemplated by Section 93 or 94, as the case may be. 2000, c. 4, s. 61.
96 (1) Every person who, while employed in the administration of this Act,
(a) knowingly communicates or knowingly allows to be communicated to any person not legally entitled thereto any information obtained by or on behalf of the Minister for the purpose of this Act;
(b) knowingly allows any person not legally entitled thereto to inspect or to have access to any book, record, writing, return or other document obtained by or on behalf of the Minister for the purpose of this Act; or
(c) knowingly uses, other than in the course of that person's duties in connection with the administration or enforcement of this Act, any information obtained by or on behalf of the Minister for the purpose of this Act,
is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding twelve months or to both a fine and imprisonment.
(2) Subsection (1) does not apply to the communication of information between
(a) the Minister of National Revenue for Canada and the Minister of Finance of the Province; or
(b) the Minister of Finance of the Province or the Minister of National Revenue for Canada, acting on behalf of the Province, and the provincial treasurer, provincial secretary-treasurer, or minister of finance of the government of
2000, c. 4, s. 61.97 Section 242 of the Federal Act applies for the purpose of this Act. 2000, c. 4, s. 61.
98 Section 243 of the Federal Act applies for the purpose of this Act. 2000, c. 4, s. 61.
99 (1) Subsections 244(1) to (5), (7) to (11), (13) to (18), and (20) to (22) of the Federal Act apply for the purpose of this Act.
(2) Judicial notice shall be taken of
(a) all orders or regulations made under this Act; and
(b) a collection agreement entered into under this Act or any agreement for the collection by Canada of the tax imposed under the income tax statute of an agreeing province,
without such orders, regulations or agreements being specially pleaded or proven.
(3) For the purpose of this Act, anything sent by first-class mail or its equivalent is deemed to have been received by the person to whom it is sent on the day that it was mailed except that a remittance of an amount deducted or withheld as required by this Act or a regulation or by a provision of the Federal Act or of the Federal Regulations, that applies for the purpose of this Act, as it applies for the purpose of this Act, is deemed to have been remitted on the day it is received by the Minister of Finance.
(4) A document purporting to be a collection agreement entered into under this Act or an agreement with Canada for the collection of tax imposed under the income tax statute of an agreeing province that is
(a) published in the Canada Gazette; or
(b) certified as such by or on behalf of
(ii) the provincial treasurer, the provincial secretary-treasurer or the minister of finance of the appropriate agreeing province,
shall be received as prima facie evidence of the contents thereof.
(5) Every certificate by the Minister of Finance as to
(a) a taxpayer's tax payable under the Federal Act, as defined in clause 7(g);
(b) a taxpayer's income for the year, as defined in clause 7(e); or
(c) the taxable income of a corporation,
is prima facie evidence that a taxpayer's tax payable under the Federal Act, a taxpayer's income for the year or the taxable income of a corporation, as the case may be, is in the amount set out therein.
(6) Where a collection agreement is entered into, any document or certificate that is executed or issued by the Minister, the Commissioner of Customs and Revenue, or an official of the Canada Customs and Revenue Agency on behalf or in place of the Minister of Finance, the Minister of Finance's deputy or an officer of the Minister of Finance's Department, is deemed, for all purposes of this Act, to be executed or issued by the Minister or Finance, the Minister of Finance's deputy or an officer of the Minister of Finance's Department, as the case may be.
(7) Where no collection agreement is entered into, a reference in this Section to the Royal Canadian Mounted Police shall be construed as a reference to the police force carrying out the duties of a provincial police in the Province. 2000, c. 4, s. 61.
100 Sections 245 and 246 of the Federal Act apply for the purposes of this Act. 2000, c. 4, s. 61.
101 (1) The Collection Agreement entered into between the Government of Canada and the Government of the Province on December 29, 1961, is ratified and confirmed, and any reference in the said Collection Agreement to Chapter 3 of the Acts of 1961, the Individual and Corporation Income Tax Act, shall be read and construed as a reference to this Act.
(2) The Minister of Finance for the Province may, on behalf of the Government of the Province,
(a) enter into an agreement amending the terms and conditions of the Collection Agreement referred to in subsection (1);
(b) enter into a new collection agreement; or
(c) enter into an agreement amending the terms and conditions of the new collection agreement referred to in clause (b).
(3) Without in any way limiting Chapter 10 of the Acts of 1961, the Tax Collection Agreement (1961) Act, when a collection agreement is in effect, the Minister of National Revenue for Canada on behalf of the Minister of Finance for the Province may employ all the powers, perform all the duties, and exercise any discretion that the Minister of Finance or the deputy head has under this Act, including the discretion to refuse to permit the production in judicial or other proceedings in the Province of any document that is not, in the opinion of the Minister of National Revenue for Canada, in the interests of public policy to produce.
(4) Without in any way limiting Chapter 10 of the Acts of 1961, the Tax Collection Agreement (1961) Act, when a collection agreement is in effect, the Commissioner of Customs and Revenue may
(a) employ all the powers, perform the duties and exercise any discretion that the Minister has under subsection (3) or otherwise under this Act; and
(b) designate officers of the Canada Customs and Revenue Agency to carry out such functions, duties and powers as are similar to those that are exercised by them on behalf of the Commissioner of Customs and Revenue under the Federal Act. 2000, c. 4, s. 61.
102 (1) A collection agreement may provide that where a payment is received by the Minister of Finance on account of tax payable by a taxpayer for a taxation year under this Act, the Federal Act or an income tax statute of another agreeing province, or under any two or more of such Acts or statutes, the payment so received may be applied by the Minister towards the tax payable by the taxpayer under any such Act or statute in such manner as may be specified in the agreement, notwithstanding that the taxpayer directed that the payment be applied in any other manner or made no direction as to its application.
(2) Any payment or part thereof applied by the Minister in accordance with a collection agreement towards the tax payable by a taxpayer for a taxation year under this Act
(a) relieves the taxpayer of liability to pay such tax to the extent of the payment or part thereof so applied; and
(b) is deemed to have been applied in accordance with a direction made by the taxpayer. 2000, c. 4, s. 61.
103 Where a collection agreement is in effect and an amount is remitted to the Minister pursuant to subsection 153(1) of the Federal Act, as it applies for the purpose of this Act, on account of the tax of an individual who is resident on the last day of the taxation year in another agreeing province
(a) no action lies for recovery of such amount by that individual; and
(b) the amount may not be applied in discharge of any liability of that individual under this Act. 2000, c. 4, s. 61.
104 (1) Where a collection agreement is entered into, an individual resident in the Province on the last day of the taxation year is not required to remit any amount on account of tax payable by the individual under this Act for the taxation year to the extent of the amount deducted or withheld on account of the individual's tax for that year under the income tax statute of another agreeing province.
(2) Where the total amount deducted or withheld on account of tax payable under this Act and under the income tax statute of another agreeing province by an individual resident in the Province on the last day of the taxation year to whom subsection (1) applies exceeds the tax payable by the individual under this Act for that year, the provisions of the Federal Act that apply for the purposes of this Act because of Section 62 apply in respect of such individual as though the excess were an overpayment under this Act. 2000, c. 4, s. 61.
(a) "adjusting payment" means a payment, calculated in accordance with this Section, made by or on the direction of the Province to a non-agreeing province;
(b) "amount deducted or withheld" does not include any refund made in respect of that amount;
(c) "non-agreeing province" means a province that is not an agreeing province.
(2) Where, in respect of a taxation year a non-agreeing province is authorized to make a payment to the Province that, in the opinion of the Minister of Finance corresponds to an adjusting payment, the Governor in Council may authorize the Minister of Finance to make an adjusting payment to that non-agreeing province and enter into any agreement that may be necessary to carry out the purposes of this Section.
(3) When a collection agreement is in effect, an adjusting payment that may be made pursuant to subsection (2) may be made by the Government of Canada, where it has agreed to act on the direction of the Province, as communicated by the Minister of Finance for the Province to the Minister of National Revenue for Canada.
(4) The adjusting payment to be made under this Section shall be in an amount that is equal to the aggregate of the amounts deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purpose of this Act, in respect of the tax payable for a taxation year by individuals who
(a) file returns under the Federal Act;
(b) are taxable thereunder in respect of that year; and
(c) are resident on the last day of that year in the non-agreeing province to which the adjusting payment is to be made.
(5) Where an adjusting payment is to be made to a non-agreeing province and there has been an amount deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purpose of this Act, on account of the tax for a taxation year of an individual who is taxable under the Federal Act in respect of that year and who is resident on the last day of that taxation year in the non-agreeing province,
(a) no action lies for the recovery of such amount by that individual; and
(b) the amount may not be applied in discharge of any liability of that individual under this Act.
(6) Where an adjusting payment to a non-agreeing province is to be made under this Section for a taxation year, an individual resident in the Province on the last day of the taxation year is not required to remit any amount on account of income tax payable, or that might have been payable, by the individual under this Act for the taxation year to the extent of the amount deducted or withheld on account of the individual's income tax for that year under the law of that non-agreeing province.
(7) Where an adjusting payment to a non-agreeing province is to be made under this Section for a taxation year and the total amount deducted or withheld on account of the tax payable under this Act and on account of the income tax payable under the law of the non-agreeing province by an individual resident in the Province on the last day of the taxation year to whom subsection (6) applies exceeds the tax payable by the individual under this Act for that year, the provisions of the Federal Act that apply for the purposes of this Act because of Section 62 apply in respect of such individual as though the excess were an overpayment under this Act.
(8) Where a collection agreement is entered into and the Government of Canada has agreed in respect of a taxation year to carry out the direction of the Province and to make an adjusting payment on behalf of the Province, the adjusting payment
(a) shall be made out of any money that has been collected on account of tax under this Act for any taxation year; and
(b) shall be the amount calculated by the Minister to be the amount required to be paid under subsection (4),
and the payment thereof discharges any obligation the Government of Canada may have with respect to the payment to the Province of any amount deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purpose of this Act, to which subsection (5) applies. 2000, c. 4, s. 61.
106 The Governor in Council may make regulations to enable the enforcement of judgments in respect of taxes in agreeing provinces to be enforced in the Province. 2000, c. 4, s. 61.
107 (1) In this Section, "offshore area" means Sable Island and the submarine area of the Province that is between the inner limits and the outer limits described in the Schedule, as amended from time to time, of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act.
(2) No tax is payable under this Act for a taxation year by a corporation in respect of the taxable income earned by the corporation in the year in the offshore area until the Legislature otherwise determines. 2000, c. 4, s. 61.
