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BILL NO. 37

                                              Government Bill

                 
                                                               
              3rd Session, 56th General Assembly
                         Nova Scotia
                    44 Elizabeth II, 1995

                 
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
      An Act to Revise the Gasoline and Diesel Oil Tax,
       the Health Services Tax and the Tobacco Tax and
        to Provide for the More Efficient Enforcement
                  of those Revenue Measures










                 
                                                               
                                                               
           The Honourable J. Bernard Boudreau, Q.C.
                     Minister of Finance


                 
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                               
                                                             
                 
                                                               
                           Halifax
         Printed by Queen''s Printer for Nova Scotia
                               
                               
       An Act to Revise the Gasoline and Diesel Oil Tax,
        the Health Services Tax and the Tobacco Tax and
         to Provide for the More Efficient Enforcement
                   of those Revenue Measures



         Be it enacted by the Governor and Assembly as follows:


         1  This Act may be cited as the Revenue Act.


         2    In this Act,

              (a)  "collector" means any person who has collected or is required to collect taxes
         under this Act;

              (b)  "Commissioner" means the Provincial Tax Commissioner appointed pursuant
         to the Public Service Act;

              (c)  "Her Majesty" means Her Majesty in right of the Province;

              (d)  "Minister" means the Minister of Finance;

              (e)  "person" includes a firm, partnership, association of persons, estate heir,
         trustee, executor, administrator, agent or other legal representative of a person and a
         collector;

              (f)  "prescribed" means prescribed by the regulations.


         3    The Minister has the general supervision and management of this Act and the
regulations.


         4    (1)  Such persons as are necessary for the administration of this Act and the
regulations shall be appointed in accordance with the Civil Service Act.

              (2)  Notwithstanding subsection (1), the Commissioner may engage, upon such
terms and conditions as the Commissioner deems fit, the services of professional and technical
persons and experts to advise the Commissioner as the Commissioner deems necessary for the
efficient carrying out of this Act and the regulations.


                            PART I

                 GASOLINE AND DIESEL OIL TAX

         5    In this Part,

              (a)  "consumer" means any person who uses or consumes or causes to be used
         or consumed gasoline or diesel oil in the Province by that person or by that person's
         family, agent, employee, partner or in connection with any equipment owned or operated
         by that person or any business in which that person has an interest;

              (b)  "diesel oil" means the products distilled from petroleum that are capable of
         developing the power required for operating glow plug ignition system engines and that
         are commonly known as diesel oil, semi-diesel oil or fuel oil and includes every other
         product that fulfills the same purpose by the same means and for the same end, except
         gasoline, and includes any other products determined by the Commissioner to be diesel
         oil;

              (c)  "gasoline" means the product distilled from petroleum that by a spark plug
         ignition system develops the power required for operating internal combustion engines,
         and also means every other product that fulfills the same purpose by the same means and
         for the same end, except diesel oil, and includes any other product determined by the
         Commissioner to be gasoline;

              (d)  "purchaser" means any person who acquires gasoline or diesel oil in the
         Province for that person, that person's family, agent, employee, partner or in connection
         with any equipment owned or operated by that person or any business in which that person
         has an interest;

              (e)  "tax" means a tax imposed pursuant to this Part and includes all penalties
         and interest that are, may be or may have been added to a tax pursuant to this Part, and
         deposits made or required to be made on account of tax liability under this Part.


         6    (1)  Every purchaser shall pay to Her Majesty a tax at the rate of thirteen and one-half cents per litre, or such other rate as prescribed, on all gasoline purchased by or delivered
to such purchaser.

              (2)  Every consumer shall pay to Her Majesty a tax at the same rate on all
gasoline used or consumed by the consumer within the Province and in respect of which the tax
has not been paid.

              (3)  The tax shall be paid to the Minister or an agent of Her Majesty at the time
and in the manner prescribed.


         7    Subject to the regulations, no person shall

              (a)  sell or deliver gasoline to any person unless the tax is paid; or

              (b)  use or consume gasoline unless the tax is paid.


         8    (1)  Every purchaser shall pay to Her Majesty a tax at the rate of fifteen and four-tenths cents per litre, or such other rate as prescribed, on all diesel oil purchased by or delivered
to such purchaser.

              (2)  Every consumer shall pay to Her Majesty tax at the same rate on all diesel
oil used or consumed by the consumer within the Province and in respect of which the tax has
not been paid.

              (3)  The tax shall be paid to the Minister or an agent of Her Majesty at the time
and in the manner prescribed by the regulations.


         9    Subject to the regulations, no person shall

              (a)  sell or deliver diesel oil to any person unless the tax is paid; or

              (b)  use or consume diesel oil unless the tax is paid.


         10   (1)  The Transportation Trust Fund is hereby continued as part of the
Consolidated Fund of the Province and shall be used for the purpose of the construction and
upgrading of all 100 Series highways.

              (2)  Notwithstanding the Public Highways Act, there shall be paid into the
Transportation Trust Fund

                   (a)  two cents per litre of the tax levied pursuant to subsection 6(1); and

                   (b)  four and one-half cents per litre of the tax levied pursuant to subsection
              8(1).


         11   No person shall operate or cause to be operated a commercial vehicle in the
Province unless the person has been granted, upon application in the form prescribed by the
Commissioner, a fuel licence or a single-trip fuel permit and such licence or permit is in force
at the time.


         12   (1)  For the purpose of carrying into effect this Part according to its true intent
and of supplying any deficiency therein, and for the purpose of relaxing the strictness of the law
relative to the incidence or the collection of the tax thereunder, in cases where, without
relaxation, great public inconvenience or great hardship or injustice to persons or individuals
could not be avoided, the Governor in Council may make such regulations as the Governor in
Council deems necessary or advisable.

              (2)  Without restricting the generality of subsection (1), the Governor in Council
may make regulations

                   (a)  exempting any consumer or purchaser or class of consumers or
              purchasers from payment of the tax pursuant to this Part or any portion thereof and
              prescribing the methods by which any such consumer or purchaser or class of
              consumers or purchasers may obtain such exemption;

                   (b)  providing for the marking or dyeing of gasoline, diesel oil, furnace oil
              or stove oil, or all of them, and regulating or prohibiting, or both, the dealing with,
              possession, handling, sale, purchase, use and consumption of gasoline, diesel oil,
              furnace oil or stove oil so marked or dyed;

                   (c)  prohibiting the sale, purchase, use, consumption, transportation,
              delivery, storage, manufacture or importation of gasoline or diesel oil or any class,
              type or grade of gasoline or diesel oil without a permit;

                   (d)  defining any word or expression used but not defined in this Part;

                   (e)  respecting any matter the Governor in Council deems necessary or
              advisable to carry out effectively the intent and purpose of this Part.

              (3)  The exercise by the Governor in Council of the authority contained in this
Section is regulations within the meaning of the Regulations Act.


                           PART II

                     HEALTH SERVICES TAX

         13   In this Part,

              (a)  "computer software" means packaged or pre-written computer software that
         is designed for general application, including the right to use the software, and includes
         modifications to the software and modifications of the software, whether the software is
         delivered by electronic, disk, tape or other means, but does not include

                   (i)  modifications to or of software solely to meet the requirements of a
              person if

                        (A)  the purchase price or lease price, as applicable, of the
                   modifications is separate from that of the unmodified software, and

                        (B)  the purchase price or lease price of the modifications is greater
                   than the purchase price or lease price, as applicable, of the software in its
                   unmodified form,

                   (ii) software modified solely to meet the requirements of a person if

                        (A)  the purchase price or lease price as applicable is for the
                   software as modified, and

                        (B)  the purchase price or lease price is greater than double what it
                   would have been in its unmodified form, or

                   (iii)     custom software, being

                        (A)  software developed solely to meet the requirements of a person,
                   and

                        (B)  modifications to software referred to in subclause (i) when
                   performed for the person for whom the software was originally developed,

         unless the software is a copy of software referred to in subclause (i), (ii) or (iii), or the
         right to use such software, that is sold or leased to someone other than the person from
         whom the software was originally modified or developed;

              (b)  "consumption" or "use" includes the provision by way of promotional
         distribution of any tangible personal property and the incorporation into any structure,
         building or fixture of tangible personal property including those manufactured by the
         consumer or further processed or otherwise improved by the consumer;

              (c)  "graphic design" includes, but is not limited to,

                   (i)  layout,

                   (ii) artwork,

                   (iii)     illustration,

                   (iv) type setting,

                   (v)  drawing, and

                   (vi) design;

              (d)  "inspector" means a person appointed as an inspector pursuant to this Part;

              (e)  "lease" includes a contract for possession and profit of tangible personal
         property for consideration whether the consideration is expressed as rental, licence fee,
         royalty or other consideration, but does not include a conditional sales contract;

              (f)  "manufacture or production" means the transformation or conversion of raw
         or prepared material into a different state or form from that in which it originally existed
         as raw or prepared material, but does not include production or processing;

              (g)  "municipality" means a municipality as defined in the Municipal Affairs Act;

              (h)  "non-renewable resource" means any naturally occurring inorganic
         substance, and includes coal, bituminous shales and other stratified deposits from which
         oil can be extracted by destructive distillation and includes petroleum;

              (i)  "offshore area" means Sable Island and the submarine area of the Province
         that is between the inner limits and the outer limits described in Schedule I, as amended
         from time to time, of the Canada-Nova Scotia Offshore Petroleum Resources Accord
         Implementation (Nova Scotia) Act;

              (j)  "petroleum" means, in addition to its ordinary meaning, any mineral oil or
         relative hydrocarbon and any natural gas, including coal gas, existing in its natural
         condition in strata;

              (k)  "production or processing" means exploration for, extraction of, or
         transformation or conversion of any non-renewable resource to the extent and in the
         manner determined by the regulations;

              (l)  "promotional distribution" means the provision by any person to others of any
         tangible personal property that is, in the opinion of the Minister, provided for any one or
         more of the following:

                   (i)  to describe or to promote or encourage the purchase, consumption or
              use of any tangible personal property,

                   (ii) to furnish to any person any directory, listing or compilation of
              persons, places, prices, services, commodities, places of business or users of any
              service, or

                   (iii)     for any function, use or purpose prescribed by regulation to be
              promotional distribution;

              (m)  "promotional distributor" means any person who is a resident of, or carries
         on business in, the Province and who, by way of promotional distribution, provides or
         causes to be provided to any person in the Province any tangible personal property the
         fair value of which is not specifically charged to, and required to be paid by, the person
         to whom such tangible personal property is provided;

              (n)  "purchaser" means any person who acquires tangible personal property at
         a sale

                   (i)  for the person's own consumption or use,

                   (ii) for the consumption or use of other persons at that person's expense,

                   (iii)     on behalf of or agent for a principal who desires such property for
              consumption or use by such principal or other persons at the principal's expense,

         and includes a user and a promotional distributor to the extent that the fair value of any
         tangible personal property provided by way of promotional distribution exceeds any
         payments specifically made by the person to whom such property is so provided;

              (o)  "repair services" means the installation, adjustment, repair, restoration,
         reconditioning, refinishing or maintenance of tangible personal property that is taxable
         pursuant to this Part and includes any contract for installation, adjustment, repair,
         restoration, reconditioning, refinishing or maintenance of such tangible personal property,
         but does not include

                   (i)  the installation of tangible personal property that becomes real
              property,

                   (ii) motor vehicle towing or emergency battery boosting,

                   (iii)     diagnosis, a safety inspection or an estimate when no installation,
              adjustment, repair, restoration, reconditioning, refinishing or maintenance is done
              at the same time,

                   (iv) the installation, adjustment, repair, restoration, reconditioning,
              refinishing or maintenance of tangible personal property for resale or lease by a
              vendor holding a registration certificate,

                   (v)  repair services rendered to a person's own tangible personal property
              by that person or that person's employees,

                   (vi) repair services exempted by the regulations,

                   (vii)     repair services with respect to tangible personal property for which a
              rebate of tax is provided pursuant to this Part or the regulations;

              (p)  "retail sale" means a sale to a purchaser for the purpose of consumption or
         use and not for resale;

              (q)  "sale" includes

                   (i)  a conditional sale,

                   (ii) hire purchase,

                   (iii)     a sale on credit or where the price is payable by instalments,

                   (iv) an exchange,

                   (v)  barter,

                   (vi) a lease,

                   (vii)     a rental,

                   (viii)    any contract whereby at a price or other consideration a person
              delivers to another tangible personal property,

                   (ix) the provision by way of promotional distribution of any tangible
              personal property, and

                   (x)  a transfer of title or possession, conditional or otherwise;

              (r)  "sale in bulk" means a sale

                   (i)  outside of the usual course of business,

                   (ii) of substantially an entire stock, or

                   (iii)     of an interest in a business;

              (s)  "sale price" or "purchase price" or "fair value" includes a price in money
         and also the value of services rendered, the actual value of the thing exchanged and other
         considerations accepted by the seller or person for whom the property passes as price or
         on account of the price of the thing covered by the contract, sale or exchange, and
         includes

                   (i)  customs, excise and sales tax imposed by or pursuant to an enactment
              of the Parliament of Canada,

                   (ii) a tax imposed pursuant to Part III,

                   (iii)     charges for transportation, unless the total charges for transportation
              of the thing sold relate solely to transportation within the Province and are shown
              separately on the invoice or in the contract with the purchaser,

                   (iv) in relation to a telecommunication service, the total consideration paid
              by the purchaser for the provision of the service and for each period in respect of
              which an invoice for or in relation to the service is issued and includes, but is not
              limited to,

                        (A)  sign-up charges,

                        (B)  access charges,

                        (C)  air time charges,

                        (D)  usage charges,

                        (E)  services charges,

                        (F)  in the case of a dedicated telecommunication service, all charges
                   for telecommunications provided as part of the service,

                        (G)  in the case of any other telecommunication service, all such
                   charges in respect of each telecommunication that meets at least two of the
                   following criteria:

                             (I)  the telecommunication originates in the Province,

                             (II) the telecommunication is received in the Province,

                             (III)     the charge for the telecommunication is invoiced with
                        respect to a transmitter that is ordinarily located in the Province,

                        (H)  electronic access to information,

                        (I)  electronic storage of information,

                        (J)  provision of electronic connections to information or
                   communication services, but not including services provided by a person or
                   their employees using that person's equipment, and

                   (v)  the value of tangible personal property manufactured, processed or
              produced by a person and consumed by that person as determined in accordance
              with rules prescribed in the regulations;

              (t)  "sign" includes, but is not limited to, a board or notice bearing any
         information, advertising, warning, commands or identification, but does not include signs
         that form part of the framework of a building;

              (u)  "tangible personal property" means personal property that is the subject of
         ownership not coming under the denomination of real estate and that can be seen,
         weighed, measured, felt or touched or is in any way perceptible to the senses and includes,
         but is not limited to,

                   (i)  electricity,

                   (ii) telecommunications services,

                   (iii)     transient accommodation,

                   (iv) repair services,

                   (v)  computer software,

                   (vi) signs,

                   (vii)     any property referred to in Schedule II of the regulations made
              pursuant to the Income Tax Act (Canada) as prescribed, and

                   (viii)    a graphic design service when used to produce other tangible personal
              property;

              (v)  "tax" means a tax imposed pursuant to this Part and includes all penalties
         and interest that are, may be or may have been added to a tax pursuant to this Part, and
         deposits made or required to be made on account of tax liability pursuant to this Part;

              (w)  "telecommunication service" means a message, music or sound transmitted
         by means of electronic waves or by any means whatsoever in the form of words, writing,
         images, sound, music symbols or other indications, and includes, but is not limited to,

                   (i)  the provision of telecommunications originating and terminating within
              the Province,

                   (ii) the provision of telecommunications originating within and terminating
              outside the Province or originating outside the Province and terminating within the
              Province, where the charges for the facilities are charged to and payable by a
              person residing in the Province,

                   (iii)     local telephone service,

                   (iv) long distance telephone service, and

                   (v)  other services as prescribed by regulation;

              (x)  "transfer of possession", "lease" or "rental" includes any transactions held
         by the Commissioner to be in lieu of a transfer of title, exchange or barter;

              (y)  "transient accommodation" means the provision of lodging in hotels, motels,
         hostels, apartment houses, lodging houses, boarding houses, clubs and other similar
         accommodation, whether or not a membership is required for the lodging, but does not
         include

                   (i)  lodging let for a continuous period of thirty days or more,

                   (ii) lodging in a lodging house, rooming house or boarding house if such
              house has accommodation for fewer than four tenants,

                   (iii)     lodging supplied to students, patients, residents or employees in
              educational institutions, hospitals, nursing homes or homes for the aged,

                   (iv) lodging supplied by religious or charitable organizations at summer
              camps and similar places,

                   (v)  tent or trailer sites supplied by a camp or trailer park,

                   (vi) lodging where the charge for the lodging is twenty dollars or less per
              day, or

                   (vii)     rooms situated in a hotel or other lodging place that do not contain
              beds and that are used for displaying merchandise or holding meetings, dinners,
              receptions or entertainments;

              (z)  "user" or "consumer" means any person who utilizes any tangible personal
         property for that person's own consumption or use, or for the consumption or use of other
         persons at that person's expense, or on behalf of, or as the agent for, a principal who
         desires to acquire such property for the consumption or use by such principal or other
         persons at the principal's expense and includes any person who consumes tangible
         personal property acquired by that person for resale, or who consumes tangible personal
         property manufactured, processed or purchased by that person;

              (aa) "vendor" means any person who, in the ordinary course of that person's
         business, sells tangible personal property to a purchaser at a retail sale.


         14   This Part does not apply to the offshore area, except in respect of

              (a)  tangible personal property purchased on

                   (i)  a regularly scheduled ferry for use by the general public, or

                   (ii) vessels engaged in the transportation of persons for profit or with a
              view to profit,

         where the voyage originates or terminates inside the Province, or during a temporary
         stopover in the Province by a ferry or vessel that originates or terminates its voyage
         outside of the Province;

              (b)  tangible personal property purchased on docks, wharfs or other structures
         that are permanently attached to land

                   (i)  above the low water mark of the Province, and

                   (ii) outside the offshore area; or

              (c)  tangible personal property purchased for use in respect of submarine mines
         or mine workings accessible from outside the offshore area.


         15   (1)  Every purchaser shall pay to Her Majesty a tax at the rate of

                   (a)  three per cent of the purchase price of electricity; and

                   (b)  eleven per cent of the purchase price of all other tangible personal
              property purchased other than that referred to in clause (a).

              (2)  For the purpose of this Part, every user and consumer is deemed to have
purchased the tangible personal property from a vendor at a sale in the Province, and such
property is deemed to have passed at the sale.

              (3)  Subject to subsection (4), where tangible personal property has been
purchased, whether before or after May 29, 1987, and at the time of the purchase is exempt from
the tax imposed pursuant to this Part or is taxed at a lower rate of tax than that imposed
pursuant to clause (1)(b) and the tangible personal property is subsequently put to a taxable use
within four years of the purchase, the purchaser shall pay

                   (a)  the tax at the rate then in force, in accordance with the use to which the
              property is put, on the fair value of the property at the time of the change of use,

less

                   (b)  the tax, if any, paid by that purchaser pursuant to this Part in respect
              of that property.

              (4)  Where the Commissioner deems fit, the Commissioner may determine the fair
value of any tangible personal property for the purpose of taxation pursuant to this Part.

              (5)  The Commissioner shall give notice, in writing, of the determination made
pursuant to subsection (4) to the owner of the tangible personal property either by mail or
personal service.

              (6)  Notwithstanding Section 21, where a used vehicle, as defined in the
regulations, is the subject of a sale between individuals who are not vendors of used vehicles who
sell used vehicles, as defined in the regulations, in the ordinary course of their business within
the Province, the purchase price on which tax is required to be paid pursuant to this Part is the
purchase price determined by the valuation system prescribed by regulation.

              (7)  Every operator of a commercial flea market who leases or rents or otherwise
provides a table, selling space or other facility to a person for the purpose of conducting sales
of tangible personal property subject to tax under this Part at the flea market shall collect and
remit to the Minister an amount equal to fifty per cent of the fee charged for each table, selling
space or other facility, at the time and in the manner prescribed by regulation.


         16   Where a person sells any tangible personal property at a retail sale to a person who
alleges that that person is not purchasing it for consumption or use, the person who sells the
tangible personal property shall nevertheless require such person to pay the tax, but such
payment shall be refunded by the Minister on receipt of satisfactory evidence that the tax was
wrongly paid.


         17   (1)  Where a purchaser considers that the purchaser has wrongly paid tax
pursuant to this Part, the purchaser may, within four years of the date of purchase, apply to the
Commissioner for a refund of the tax paid.

              (2)  A purchaser is not entitled to a refund of tax wrongly paid except in
accordance with subsection (1).

              (3)  This Section applies to a purchaser whether the tax was paid before or after
the coming into force of this Section.

              (4)  Nothing in this Section affects the rights acquired by a purchaser from a
judgment or order of a court given or made in litigation or proceedings commenced before June
3, 1992.


         18   (1)  Every person who

                   (a)  brings tangible personal property into the Province; or

                   (b)  receives delivery in the Province of tangible personal property acquired
              by that person for value

                        (i)  for the person's own consumption or use in the Province, or

                        (ii) on behalf of, or as agent for, a principal who desires to acquire
                   such property for the consumption or use in the Province by the principal or
                   other persons at the principal's expense,

shall immediately

                   (c)  report the matter in writing to the Commissioner;

                   (d)  supply to the Commissioner the invoice and all other pertinent
              information as required by the Commissioner in respect of the consumption or use
              of such property; and

                   (e)  pay to Her Majesty the same tax in respect of the consumption or use
              of such property as would have been payable if the property had been purchased at
              a retail sale in the Province.

              (2)  Where the tangible personal property referred to in subsection (1) is of the
same class and kind that is, in the opinion of the Minister, available in the Province, there is no
entitlement to the benefit provided by Section 21.


         19   (1)  Where the Commissioner deems fit, the Commissioner may make a valuation
of any tangible personal property that passes at any sale, and thereupon the sale price for the
purpose of taxation under this Part shall be as determined by the Commissioner.

              (2)  The Commissioner shall give notice, in writing, of the Commissioner's
valuation to the seller and purchaser, either by mail or personal service.


         20   The tax imposed by this Part shall be calculated separately on every purchase, and
shall be computed to the nearest cent, and one-half cent shall be counted as one cent, but where,
on the same occasion or as part of one transaction, several items of tangible personal property
are purchased, the total of the purchases is deemed one purchase for the purpose of this Part,
except that where on the same occasion or as part of one transaction more than one bottle or can
of liquor is purchased from The Nova Scotia Liquor Commission the tax imposed by this Part
shall be calculated separately on the purchase price of each bottle or can of liquor.


         21   Where tangible personal property located in the Province is accepted in trade from
the purchaser at the time of sale by a vendor on account of the price of the tangible personal
property sold and the tax, if applicable, has been paid on such tangible personal property
accepted in trade, the purchaser shall pay the tax on the difference between the purchase price
of the property sold and the credit allowed for the tangible personal property accepted in trade
on account of the purchase price.


         22   Subject to the regulations, no vendor shall sell any tangible personal property in the
Province at a retail sale unless the vendor has been granted, upon application in the form
prescribed by the Commissioner, a registration certificate to act as a collector and such
certificate is in force at the time of sale.


         23   (1)  A person in another province of Canada shall not advertise for sale tangible
personal property in the Province by means of a telecommunication service unless that person
has been granted on that person's application, in the form required by the Commissioner, a
registration certificate pursuant to this Part and the certificate is in force at the time of
advertising.

              (2)  The registration certificate referred to in subsection (1) shall be issued by the
Commissioner and the certificate is not transferable.

              (3)  The registrant shall forward a copy of the certificate to each person who
operates in the Province a telecommunication service on which the registrant advertises.

              (4)  Where the Commissioner considers that there is a significant risk that an
applicant for registration may not collect or remit taxes pursuant to this Part, the Commissioner
may, as a condition of registration, require the applicant to deposit a bond by way of cash or
other security and, where the Commissioner requires that a bond be deposited, Section 82
applies.

              (5)  The Commissioner may cancel or suspend a registration certificate granted
to a person pursuant to this Section or refuse to grant a registration certificate to a person who

                   (a)  has committed an offence contrary to this Part or the regulations;

                   (b)  has failed to include or remit, when required, tax imposed pursuant to
              this Part; or

                   (c)  has failed to post the security required pursuant to Section 82.

              (6)  A registrant is deemed to be an agent for the Minister and as such shall
collect and remit the tax imposed pursuant to Section 15 in respect of tangible personal property
that the registrant sends into the Province.

              (7)  A registrant is deemed to be a vendor for the purpose of applying the
provisions of this Act and the regulations respecting the administration and enforcement of this
Act and the collection and remission of taxes pursuant to this Act.

              (8)  A person who operates a television or cable television service shall not carry
advertising, as referred to in subsection (1), of a person required to be registered pursuant to
this Section unless that person is registered and the operator has a copy of a registration
certificate that is in force during the time of advertising.

              (9)  A person who violates this Section is guilty of an offence and is liable, on
summary conviction, to a fine of not less than ten thousand dollars and not more than one
hundred thousand dollars and, in default of payment, to imprisonment for a term not exceeding
two years and, in addition, is liable to pay the amount of the tax that is owing including any
arrears, penalties and interest.


         24   (1)  In this Section, "non-resident contractor" does not include a company that
has been incorporated pursuant to the laws of the Province for a period of at least twelve months
prior to the signing date of the contract.

              (2)  Where a non-resident contractor enters into a contract with a person pursuant
to which, or in the carrying out of which, tangible personal property will be consumed or used
in the Province, the non-resident contractor shall deposit with the Minister a sum equivalent to
five per cent of the total amount to be paid under the contract, or shall furnish the Minister with
a guarantee bond satisfactory to the Commissioner in a sum equivalent to five per cent of such
total amount, to require payment of the tax payable in respect of tangible personal property
consumed or used pursuant to or in the carrying out of the contract and shall obtain a
certificate, in duplicate, from the Commissioner that the requirements of this subsection have
been met.

              (3)  Any person dealing with a non-resident contractor without first obtaining the
duplicate copy of the certificate from the Commissioner as required pursuant to subsection (2)
shall deduct five per cent of all amounts payable to the non-resident contractor and pay that
amount over to the Minister on behalf of or as agent for the non-resident contractor, or shall
furnish the Minister with a guarantee bond satisfactory to the Commissioner in a sum equivalent
to five per cent of such total amount to secure payment of the tax payable in respect of tangible
personal property consumed or used pursuant to or in the carrying out of the contract.

              (4)  A person who deals with a non-resident contractor and who fails to comply
with subsection (3) is personally liable for payment of all amounts not paid over to the Minister
as required by subsection (3) or such other amount as is established to the satisfaction of the
Commissioner to be the tax imposed by this Part in respect of tangible personal property
consumed or used pursuant to or in the carrying out of the contract.


         25   (1)  The following classes of tangible personal property are exempt from the tax
imposed by this Part:

                   (a)  food and food products for human consumption off the premises where
              purchased other than candies and similar confections, soft drinks, snack foods and
              prepared meals;

                   (b)  gasoline, coal, coke, fuel oil, natural and propane gas, and firewood
              for all purposes;

                   (c)  kerosene used for domestic purposes;

                   (d)  farm implements, farm machinery, horse-drawn vehicles, farm tractors,
              and parts for the same, live animals, live birds, live fish, disinfectants, insecticides,
              binder twine, metal wire, or netting for fences, and harnesses for horses, materials
              and equipment required for irrigation purposes and drainage tile, when purchased
              by a farmer for farm use;

                   (e)  boats, fishing nets and other apparatus ordinarily utilized in catching
              fish, when purchased by a commercial fisherman for use in the fishing trade;

                   (f)  tangible personal property purchased by a volunteer fire department,
              where the purchase is made on a purchase order bearing the certificate of an
              official of the fire department that the property is being purchased for the sole use
              of and with the funds of the fire department and is not being purchased for resale;

                   (g)  smoke detection and carbon monoxide detection equipment;

                   (h)  portable fire extinguishers and repairs thereto;

                   (i)  generators purchased for use in the logging industry where power is
              not available from a public utility;

                   (j)  natural water, including ice and steam, natural soil, sand, gravel and
              unfinished stone;

                   (k)  artificial limbs, orthopaedic appliances, equipment designed solely for
              the use of the physically challenged, hearing aids, dentures, dental and optical
              appliances when purchased pursuant to a prescription of a dentist, optometrist or
              medical practitioner, toothpaste, baby's needs, and personal hygiene supplies;

                   (l)  medicaments, whether purchased for use or consumption for humans
              or animals;

                   (m)  tangible personal property consumed or used in the production or
              processing of non-renewable resources;

                   (n)  transient accommodation purchased by a person attending a
              convention of twenty-five or more registered participants;

                   (o)  tangible personal property and parts thereof that are to be used or that
              are used in the manufacture or production of goods for sale;

                   (p)  tangible personal property purchased by manufacturers, producers or
              processors of goods, or such other persons engaged in other commercial activities
              as are designated by the Minister, for use by them in the detection, measurement,
              prevention, treatment, reduction or removal of pollutants to water, soil or air;

                   (q)  materials consumed or expended in the manufacture or production of
              goods for sale;

                   (r)  goods purchased for the purpose of being processed, fabricated or
              manufactured into, or incorporated into, goods for the purpose of sale;

                   (s)  goods purchased for the purpose of becoming attached to the goods
              referred to in clause (r) during the processing, fabrication or manufacture of goods
              for the purpose of sale;

                   (t)  machinery and equipment, and parts thereof, that are to be used or that
              are used in research and development;

                   (u)  fodder, grain, mill and other agricultural feeds, seeds, shrubs, plants,
              fertilizers, fungicides, soil and soil conditioners and weed control chemicals, when
              purchased by a farmer for farm use;

                   (v)  fruit and vegetable producing plants;

                   (w)  goods to be shipped by the seller for delivery outside the Province and
              ship stores delivered to a commercial vessel or boat that normally operates in
              extra-territorial waters;

                   (x)  vessels of more than five hundred tonnes gross, and repairs to such
              vessels;

                   (y)  vessels that do not exceed five hundred tonnes gross and that are
              operated for commercial purposes, as defined by the regulations, and repairs to
              such vessels;

                   (z)  tangible personal property purchased at a purchase price of twenty-five
              cents or less;

                   (aa) prepared meals when purchased at a purchase price of two dollars or
              less;

                   (ab) newspapers, however purchased, magazines and periodicals when
              purchased by subscription for delivery by mail;

                   (ac) tangible personal property purchased by Her Majesty in right of the
              Province, The Nova Scotia Liquor Commission or any other agency of the Province
              designated by the Minister;

                   (ad) tangible personal property purchased for a hospital as defined in the
              Hospitals Act if such property is purchased in good faith for the exclusive use of the
              hospital and not for resale;

                   (ae) tangible personal property purchased by a municipality or an agency
              thereof

                        (i)  if the purchase is made on a purchase order bearing the
                   certificate of an official of the municipality or agency thereof certifying that
                   the goods are for the sole use of the municipality or agency, are being
                   purchased with funds of the municipality or the agency and are not for resale,
                   or

                        (ii) generating or distributing electrical energy and purchased by
                   that municipality or agency for the better operation, administration,
                   generation or distribution by that municipality or agency of electrical energy;

                   (af) aircraft, normally engaged in foreign or interprovincial public carriage
              of passengers or freight for gain, and repairs thereto;

                   (ag) school textbooks;

                   (ah) funeral caskets for the interment of human remains;

                   (ai) school supplies;

                   (aj) clothing and repairs thereto when purchased at a purchase price of one
              hundred dollars or less per article unless otherwise provided by the regulations;

                   (ak) footwear and repairs thereto when purchased at a purchase price of
              one hundred dollars or less per pair unless otherwise provided by the regulations;

                   (al) books that are printed and bound, and that are solely for educational,
              technical, cultural or literary purposes, but not including directories, price lists,
              timetables, rate books, catalogues, periodic reports, fashion books, albums,
              magazines, periodicals, books for writing or drawing upon, or any books of the
              same general classes;

                   (am) settler's effects as defined in the regulations;

                   (an) electricity produced or manufactured from excess material and energy
              of an industrial process where the electricity is utilized by a corporation operating
              the process or a corporation that is, according to the regulations, related to it, for
              its own consumption or use, and machinery used to produce or manufacture such
              electricity;

                   (ao) safety equipment as defined by the regulations;

                   (ap) telecommunication and telephone services as prescribed by the
              regulations;

                   (aq) tobacco and tobacco products; and

                   (ar) tangible personal property purchased by ambassadors and consuls.

              (2)  For the purpose of clause (ae), and without restricting the generality of
subclauses (ae)(i) and (ii), the Minister may declare any organization to be an agency of a
municipality that out of funds obtained by assessment, contribution or fundraising enterprises
performs a function that a municipality has power to assess for or perform.

              (3)  A person in the Province to whom any tangible personal property is provided
by way of promotional distribution is, with respect to the consumption or use of that tangible
personal property, exempt from the tax imposed by this Part on the amount by which the fair
value of the property exceeds any payment that is made by the person solely and specifically for
the receipt by the person of the tangible personal property so provided and that is not referable
to the purchase, consumption or use by the person of any other property, right or service.


         26   No person who sells tangible personal property shall advertise or hold out or state
to the public or to any purchaser or user, directly or indirectly, that the tax or any part thereof
imposed pursuant to this Part will be assumed or absorbed by that person or that it will not be
considered as an element in the price to the purchaser or user or, if added, that it or any part
thereof will be refunded.


         27   (1)  For the purpose of carrying into effect this Part according to its true intent
and of supplying any deficiency therein, and for the purpose of relaxing the strictness of the law
relative to the incidence or the collection of the tax thereunder, in cases where, without
relaxation, great public inconvenience or great hardship or injustice to persons or individuals
could not be avoided, the Governor in Council may make such regulations as are considered
necessary or advisable.

              (2)  Without limiting the generality of subsection (1), the Governor in Council may
make regulations

                   (a)  to determine the extent and manner that exploration for, extraction of,
              or transformation or conversion of any non-renewable resource is production or
              processing;

                   (b)  providing for relaxing the strictness of the Part in cases involving the
              purchase of tangible personal property at sales conducted by religious or charitable
              organizations;

                   (c)  prescribing criteria for the purpose of exemptions pursuant to
              subsection 25(1);

                   (d)  prescribing the time and manner in which an operator of a commercial
              flea market shall remit to the Minister the amounts required pursuant to this Part;

                   (e)  prescribing telecommunication services that are exempt from the tax
              imposed by this Part;

                   (f)  prescribing a method for determining the purchase price of a used
              vehicle as defined in the regulations;

                   (g)  defining any word or expression used but not defined in this Part;

                   (h)  respecting any matter deemed necessary or advisable to carry out
              effectively the intent and purpose of this Part.

              (3)  The exercise by the Governor in Council of the authority contained in this
Section is regulations within the meaning of the Regulations Act.


         28   (1)  Subject to subsection (2), the Minister shall concurrently furnish the Minister
of National Revenue for Canada and the Minister of Finance for Canada with a copy of every
regulation proposed to be made pursuant to Section 27 on the recommendation of the Minister
at least thirty days before the regulation is made unless the Minister and the Minister of National
Revenue for Canada or the Minister and the Minister of Finance for Canada, as the case may
be, otherwise agree.

              (2)  Where a copy of a proposed regulation has been furnished in accordance with
subsection (1) and it is proposed to make the regulation with amendments from the version so
furnished, that subsection does not apply in respect of the proposed regulation as so amended,
but the Minister shall furnish the Minister of National Revenue for Canada or the Minister of
Finance for Canada, or both, as the case may be, with a copy of the proposed regulation as
amended, unless the Minister and the Minister of National Revenue for Canada or the Minister
and the Minister of Finance for Canada, as the case may be, otherwise agree.


         29   Clause 13(i) and Sections 14 and 28 cease to have effect on such day as the
Governor in Council orders and declares by proclamation.


         30   The proceeds of any tax levied pursuant to this Part shall be used to defray the costs
of providing, operating and maintaining hospitals, hospital facilities, hospital services, nurses'
homes, medical services and related health services.


         31   (1)  The Health Services Reserve Account is continued.

              (2)  The Minister may, from time to time and in any fiscal year, pay into the
Health Services Reserve Account out of the Consolidated Fund of the Province such sum or sums
as the Minister deems necessary to establish a reserve for the purpose of

                   (a)  providing the cost of the insured services under the Health Services and
              Insurance Act;

                   (b)  hospital equipment and construction grants; and

                   (c)  the cost of the administration of this Part,

and may, for those purposes, pay out of the Health Services Reserve Account such sum or sums
as may be necessary to achieve those purposes and may, in addition thereto,

                   (d)  make loans to hospitals in such amount and upon such terms and
              conditions as are approved from time to time by the Governor in Council;

                   (e)  defray the cost of purchasing or acquiring control of a hospital as
              defined by the Hospitals Act;

                   (f)  invest any money in the Health Services Reserve Account in securities
              authorized for the investment of trust funds, and from time to time sell any such
              securities and purchase other securities authorized for the investment of trust funds,
              or pay the proceeds of the sale of any such securities into the Health Services
              Reserve Account.


                           PART III

                         TOBACCO TAX

         32   In this Part,

              (a)  "consumer" means a person who purchases tobacco from a vendor at a retail
         sale

                   (i)  for that person's own consumption or for the consumption of other
              persons at that person's expense, or

                   (ii) as agent for a principal who desires to acquire tobacco for
              consumption by the principal or other persons at the expense of the principal;

              (b)  "offshore area" means Sable Island and the submarine area of the Province
         that is between the inner limits and the outer limits described in Schedule I, as amended
         from time to time, of the Canada-Nova Scotia Offshore Petroleum Resources Accord
         Implementation (Nova Scotia) Act;

              (c)  "permit" means, unless the context otherwise requires, a wholesale vendor's
         permit or a retail vendor's permit issued pursuant to this Part;
         (d)    "retail sale" means a sale to a consumer for purposes of consumption and not for
resale;

            (e) "retail vendor" means a person who sells tobacco in the Province to a
         consumer at a retail sale, whether or not that vendor holds a retail vendor's permit;

            (f) "sale price", "purchase price" or "fair value" includes a price in money and
         also the value of services rendered, the actual value of the thing exchanged and other
         considerations accepted by the seller or person from whom the property passes as price
         or on account of the price of the thing covered by the contract, sale or exchange, and
         includes

                (i) customs duties, excise and sales tax imposed by or pursuant to an
            enactment of the Parliament of Canada, and

                (ii)    charges for transportation, unless the total charges for transportation
            of the thing sold relate solely to transportation within the Province and are shown
            separately on the invoice or in the contract with the purchaser;

            (g) "tax" means a tax imposed pursuant to this Part and includes all penalties
         and interest that are, may be or may have been added to a tax pursuant to this Part and
         includes deposits made or required to be made on account of tax liability under this Part;

            (h) "tobacco" means tobacco in any form, whether consumed by smoking, by
         chewing or as snuff;

            (i) "vendor" means a retail vendor or a wholesale vendor;

            (j) "wholesale vendor" means a person who sells tobacco in the Province for the
         purpose of resale.


         33 This Part does not apply to the offshore area, except in respect of

            (a) tobacco purchased on

                (i) a regularly scheduled ferry for use by the general public, or

                (ii)    vessels engaged in the transportation of persons for profit or with a
            view to profit,

         where the voyage originates or terminates inside the Province, or during a temporary
         stopover in the Province by a ferry or vessel that originates or terminates its voyage
         outside of the Province;

            (b) tobacco purchased on docks, wharfs or other structures that are permanently
         attached to land

                (i) above the low-water mark of the Province, and

                (ii)    outside the offshore area; or

            (c) tobacco purchased for use in respect of submarine mines or mine workings
         accessible from outside the offshore area.


         34 (1) Every consumer shall pay to Her Majesty a tax at the rate of

                (a) four and ninety-four one hundreds cents per cigarette for tobacco
            purchased in the form of a cigarette;

                (b) three and eighty-nine one hundreds cents per gram of tobacco for fine-cut tobacco;

                (c) six and twenty-three one hundreds cents per gram of tobacco for
            tobacco in the form of pre-proportioned tobacco sticks;

                (d) sixty-six per cent of the manufacturer's or importer's suggested retail
            selling price of tobacco in the form of cigars; and

                (e) three and sixty-two one hundreds cents per gram of tobacco in any
            other form.

            (2) For the purpose of this Part, every consumer of tobacco is deemed to have
purchased the tobacco from a vendor at a retail sale in the Province and the tobacco is deemed
to have passed at the sale.


         35 Every person who

            (a) brings tobacco into the Province;

            (b) receives delivery in the Province of tobacco acquired by that person for value

                (i) for that person's own consumption in the Province, or for the
            consumption in the Province of other persons at that person's expense, or

                (ii)    on behalf of, or as agent for, a principal who desires to acquire the
            tobacco for consumption in the Province by such principal or other persons at the
            principal's expense,

shall immediately

            (c) report the matter in writing to the Commissioner;

            (d) supply to the Commissioner the invoice and all other pertinent information
         as required by the Commissioner in respect of the consumption of the tobacco; and

            (e) pay to Her Majesty the same tax in respect of the consumption of the tobacco
         as would have been payable if the tobacco had been purchased at a retail sale in the
         Province.


         36 (1) Where the Commissioner deems fit, the Commissioner may make a valuation
of tobacco that passes at any sale, and thereupon the sale price for the purpose of taxation
pursuant to this Part is as determined by the Commissioner.

            (2) The Commissioner shall give notice in writing of a valuation pursuant to
subsection (1) to the seller and purchaser, either by mail or by personal service.


         37 No person shall sell or agree to sell tobacco to a consumer at a retail sale, by any
means, including vending machines, unless the person has been granted, upon application in the
manner prescribed by the Commissioner, a retail vendor's permit issued pursuant to this Part
and such permit is in force at the time of the sale.


         38 The Commissioner may issue a wholesale vendor's permit upon application to the
Commissioner by a person in the manner and form prescribed by the Commissioner.


         39 (1) No person shall be in possession of tobacco

                (a) on which tax has not been paid;

                (b) not bearing a prescribed mark; or

                (c) not purchased from a retail vendor who holds a valid retail vendor's
            permit, where the person in possession is a consumer.

            (2) No retail vendor shall be in possession of tobacco other than tobacco
purchased by the retail vendor from a wholesale vendor who, at the time of purchase, held a
wholesale vendor's permit that was issued pursuant to this Part and that, at the time of purchase,
was in force.

            (3) No person shall distribute, sell, barter or offer for sale or as a gift tobacco
except as permitted by this Part or the regulations.


         40 No person shall transport tobacco unless, at the time the tobacco is being
transported, that person is in possession of a bill of lading, waybill or other document showing
the origin and destination of the tobacco.


         41 No person who sells tobacco shall advertise or hold out or state to the public or to
any purchaser, directly or indirectly, that the tax or any part of the tax imposed pursuant to this
Part will be assumed or absorbed by that person or that it will not be considered as an element
in the price to the purchaser or, if added, that it or any part thereof will be refunded.


         42 The judge of a court trying a prosecution for a contravention of this Part may, in
the absence of proof to the contrary, infer that the substance in question is tobacco by the
substance's appearance, packaging or odour and from the fact that a witness describes the
substance as tobacco.


         43 (1) For the purpose of carrying into effect this Part according to its true intent
and of supplying any deficiency therein and for the purpose of relaxing the strictness of the law
relative to the incidence or the collection of the tax thereunder, in cases where, without
relaxation, great public inconvenience or great hardship or injustice to persons or individuals
could not be avoided, the Governor in Council may make such regulations as are considered
necessary or advisable.

            (2) Without limiting the generality of subsection (1), the Governor in Council may
make regulations

                (a) requiring tobacco sold in the Province to be marked in the manner
            prescribed by the regulations and providing for the stamping or otherwise marking
            of tobacco or the packages in which tobacco is sold;

                (b) governing the acquisition, transportation, storage, possession and sale
            of marked and unmarked tobacco by vendors;

                (c) defining any word or expression used but not defined in this Part;

                (d) respecting any matter deemed necessary or advisable to carry out
            effectively the intent and purpose of this Part.

            (3) A regulation made pursuant to subsection (2) may, if it so provides, be
retroactive in its operation to a date not earlier than May 6, 1989.

            (4) The exercise by the Governor in Council of the authority contained in this
Section is regulations within the meaning of the Regulations Act.


         44 (1) Subject to subsection (2), the Minister shall concurrently furnish the Minister
of National Revenue for Canada and the Minister of Finance for Canada with a copy of every
regulation proposed to be made pursuant to Section 43 on the recommendation of the Minister
at least thirty days before the regulation is made unless the Minister and the Minister of National
Revenue for Canada or the Minister and the Minister of Finance for Canada, as the case may
be, otherwise agree.

            (2) Where a copy of a proposed regulation has been furnished in accordance with
subsection (1) and it is proposed to make the regulation with amendments from the version so
furnished, that subsection does not apply in respect of the proposed regulation as so amended,
but the Minister shall furnish the Minister of National Revenue for Canada or the Minister of
Finance for Canada, or both, as the case may be, with a copy of the proposed regulation as so
amended, unless the Minister and the Minister of National Revenue for Canada or the Minister
and the Minister of Finance for Canada, as the case may be, otherwise agree.


         45 Clause 32(b), Section 33 and Section 44 cease to have effect on such day as the
Governor in Council orders and declares by proclamation.


         46 The proceeds of any tax levied pursuant to this Part shall be paid into the
Consolidated Fund of the Province.


                           PART IV

                        ADMINISTRATION

         47 The purpose of this Part is to facilitate the administration of Parts I, II and III of this
Act in an efficient and uniform manner.


         48 In this Part,

            (a) "auditor" means a person appointed as an auditor pursuant to this Act;

            (b) "certificate" means a certificate or permit issued pursuant to this Act or the
         regulations;

            (c) "consumer" means a consumer as defined in Part I, II or III of this Act and
         is applicable as the case may be;

            (d) "inspector" means an inspector appointed pursuant to this Act;

            (e) "offshore area" means Sable Island and the submarine area of the Province
         that is between the inner limits and the outer limits described in Schedule I, as amended
         from time to time, of the Canada-Nova Scotia Offshore Petroleum Resources Accord
         Implementation (Nova Scotia)Act;

            (f) "purchaser" means any person who acquires revenue property at a sale

                (i) for the person's own consumption or use,

                (ii)    for the consumption or use of other persons at the purchaser's expense,
            or

                (iii)   on behalf of or as agent for a principal who desires to acquire such
            property for personal consumption or use or for other persons at the principal's
            expense,

         and includes a consumer and a promotional distributor, as defined in Part II of this Act,
         to the extent that the fair value of any revenue property provided by way of promotional
         distribution exceeds any payments specifically made for the property by the person to
         whom such property is so provided;

            (g) "revenue property" means

                (i) gasoline and diesel oil as defined in Part I of this Act,

                (ii)    tangible personal property as defined in Part II of this Act,

                (iii)   tobacco as defined in Part III of this Act;

            (h) "sale" includes

                (i) a conditional sale,

                (ii)    hire purchase,

                (iii)   a sale on credit or where the price is payable by installments,

                (iv)    an exchange,

                (v) barter,

                (vi)    a lease,

                (vii)   a rental,

                (viii)  any contract whereby at a price or other consideration a person
            delivers to another revenue property,

                (ix)    the provision by way of promotional distribution of any revenue
            property, and

                (x) a transfer of title or possession, conditional or otherwise;

            (i) "sale in bulk" means a sale

                (i) outside of the usual course of business,

                (ii)    of substantially an entire stock, or

                (iii)   of an interest in a business;

            (j) "sale price" or "purchase price" or "fair value" includes a price in money
         and also the value of services rendered, the actual value of the thing exchanged and other
         considerations accepted by the seller or person from whom the property passes as price
         or on account of the price of the thing covered by the contract, sale or exchange, and
         includes

                (i) customs, excise and sales tax imposed by or pursuant to an enactment
            of the Parliament of Canada,

                (ii)    a tax imposed pursuant to this Act,

                (iii)   charges for transportation, unless the total charges for transportation
            of the thing sold relate to solely to transportation within the Province and are shown
            separately on the invoice or in the contract with the purchaser,

                (iv)    in relation to a telecommunication service, the total consideration paid
            by the purchaser for the provision of the service and for each period in respect of
            which an invoice for or in relation to the service is issued and, without restricting
            the generality of the foregoing, includes

                    (A) sign-up charges,

                    (B) access charges,

                    (C) air time charges,

                    (D) usage charges,

                    (E) service charges,

                    (F) in the case of a dedicated telecommunication service, all charges
                for telecommunications provided as part of the service,

                    (G) in the case of any other telecommunication service, all such
                charges in respect of each telecommunication that meets at least two of the
                following criteria:

                        (I) the telecommunication originates in the Province,

                        (II)    the telecommunication is received in the Province,

                        (III)   the charge for the telecommunication is invoiced with
                    respect to a transmitter that is ordinarily located in the Province,

                    (H) electronic access to information,

                    (I) electronic storage of information,

                    (J) provision of electronic connections to information or com-
                munication services, but not including services provided by a person or the
                person's employees using that person's equipment, and

                (v) the value of tangible personal property, manufactured, processed or
            produced by a person and consumed by the person, as determined in accordance
            with rules prescribed in the regulations;

            (k) "tax" means a tax imposed pursuant to this Act, whether before or after the
         coming into force of this Act, and includes all penalties and interest that are, may be or
         may have been added to a tax pursuant to this Act, and deposits made or required to be
         made on account of tax liability under this Act;

            (l) "taxpayer" means a person required by this Act to pay a tax;

            (m) "transfer of possession" means transfer of possession as defined in Part II of
         this Act.


         49 The Minister may require administrative fees, user fees or other similar fees to be
paid as prescribed.


         50 This Part does not apply to the offshore area except in respect of

            (a) revenue property purchased on

                (i) a regularly scheduled ferry for use by the general public, or

                (ii)    vessels engaged in the transportation of persons for profit or with a
            view to profit,

         where the voyage originates or terminates inside the Province, or during a temporary
         stopover in the Province by a ferry or vessel that originates or terminates its voyage
         outside of the Province; or

            (b) revenue property purchased on docks, wharves or other structures that are
         permanently attached to land,

                (i) above the low-water mark of the Province, and

                (ii)    outside the offshore area;

            (c) revenue property purchased for use in respect of submarine mines or mine
         workings accessible from outside the offshore area.


                          LIABILITY

         51 (1) A taxpayer is liable for a tax until it is paid.

            (2) The Commissioner may, from time to time and at such intervals as the
Commissioner considers reasonable, assess and reassess any tax payable under this Act by any
taxpayer and may vacate or vary any assessment or reassessment and, thereupon, the tax so
determined is due and payable by the taxpayer.

            (3) Where a taxpayer fails to

                (a) pay a tax; or

                (b) substantiate a payment by records of the taxpayer,

the Commissioner may estimate the tax and such estimated amount is deemed to be the amount
of tax due and payable by the taxpayer.

            (4) The Commissioner, or any person appointed by the Commissioner, may make
or cause to be made an audit of the books of account, records, documents and papers of a
taxpayer.

            (5) In the discretion of the Commissioner, or any person appointed by the
Commissioner, any or all books of account, records, documents and papers of a taxpayer may
be audited and an assessment levied pursuant to Section 78.

            (6) A taxpayer shall make the taxpayer's books of account, records, documents
and papers available to the Commissioner, or a person designated by the Commissioner, for the
purpose of allowing an audit to be made pursuant to this Section.

            (7) In the discretion of the Commissioner, a tax may be determined pursuant to
subsection (2) and an amount of tax may be estimated pursuant to subsection (3) by an audit
conducted pursuant to this Section.

            (8) The Commissioner shall, by personal service or by mail, give to the taxpayer
at the taxpayer's last known address a notice of assessment, in the form prescribed, setting out
the amount determined pursuant to subsection (2) or estimated pursuant to subsection (3), and
in the case of a taxpayer having more than one address, one of which is in the Province, such
notice may be sent to the taxpayer's address in the Province.

            (9) Liability to assessment is not affected by an incorrect or incomplete
assessment or by the fact that no assessment was made.

            (10)    An assessment made shall, subject to being varied or vacated on
reconsideration or appeal and subject to a reassessment, be valid and binding notwithstanding
any error, defect or omission in the assessment or any proceeding under this Act relating to the
assessment.

            (11)    This Section applies notwithstanding Parts I, II and III of this Act.


         52 (1) Where the Commissioner deems fit, the Commissioner may make a valuation
of revenue property that is the subject of a sale, and thereupon the sale price for the purpose of
taxation pursuant to this Act is as determined by the Commissioner.

            (2) The Commissioner shall give notice in writing of a valuation pursuant to
subsection (1) to the seller and purchaser, either by personal service or by mail.


                          COLLECTION

         53 (1) All taxes collected by a collector under this Act shall be collected and remitted
to the Minister at such time and in such manner as may be required by the regulations.

            (2) In the event of failure on the part of a collector to collect a tax, the collector
shall immediately notify the Commissioner.


         54 (1) A collector shall be paid such allowance or commission as is prescribed for
the services provided by a collector in collecting and remitting a tax.

            (2) A collector may, as and when authorized by the Commissioner, deduct any
commission to which the collector may be entitled from the amount to be remitted by the collector
to the Minister.

            (3) No person accepting an allowance or commission pursuant to this Section is
ineligible as a candidate for election to or as a member of the House of Assembly.


         55 Every collector shall obtain all certificates required by the regulations.


         56 (1) The tax imposed by this Act, whether the price is payable in cash, on terms,
by instalments or otherwise, shall be collected and remitted to the Minister at the times and in
the manner prescribed by the regulations.

            (2) Without restricting the generality of subsection (1), the regulations referred
to in that subsection may provide for the Commissioner to enter into agreements with persons
respecting the collection of tax and the remitting of tax to the Minister by those persons, or their
agents, as agents of Her Majesty.

            (3) No person is ineligible as a member of the House of Assembly by reason only
of being a party to or receiving an allowance under an agreement made pursuant to subsection
(2).

            (4) A person who is required to collect and remit tax pursuant to subsection (1)
is deemed for those purposes to be an agent of the Minister and is deemed to be a collector for
the purpose of this Act.


         57 (1) Where a collector fails to collect a tax under this Act or to make a return or
remittance as required under this Act or the regulations, or if the collector's returns are not
substantiated by the collector's records, the Commissioner may make an estimate of

                (a) the amount of tax collected by the collector;

                (b) the amount of tax that should have been collected by the collector,

and such estimated amount is deemed to be the amount of tax collected by the collector that the
collector has not remitted.

            (2) In the discretion of the Commissioner, any or all of an amount of tax may be
estimated pursuant to subsection (1) by an assessment pursuant to Section 80.

            (3) The Commissioner shall, by personal service or mail, send a notice of
assessment in the form and manner prescribed by the Commissioner to the collector, the
collector's heirs, executors, successors or assigns, or to the custodian or trustee in bankruptcy
of the assets of the collector's estate setting out the amount estimated pursuant to subsection (1).

            (4) Proof that notice pursuant to subsection (3) has been given constitutes prima
facie proof that the amount stated in the notice is due and owing, and the onus of proving
otherwise rests on the person who sold the revenue property.


         58 (1) Every collector shall keep such records in the form and at the location
prescribed by the regulations and, when required to do so by the Commissioner pursuant to the
regulations, shall pay into and maintain in a separate trust account all amounts of tax collected
by the collector pursuant to this Act and establish and maintain a separate trust account and use
that trust account for no other purpose, and any failure to do so constitutes an offence.

            (2) In a prosecution brought against a collector for a violation of subsection (1),
a certificate signed by the Commissioner stating that the collector failed to keep such records
and to make and file such returns in the form prescribed by the regulations, or failed to pay into
and maintain in a separate account taxes collected by that collector or failed to establish a
separate trust account as required pursuant to subsection (1), shall be received in evidence
without proof of the signature or of the official character of the person appearing to have signed
the same and is prima facie proof of the matters contained in the certificate.

            (3) Every person who, in the opinion of the Commissioner, is a wholesaler,
manufacturer, importer or jobber shall, at the direction of the Commissioner, keep such records
and forward to the Commissioner such copies or extracts from those records at such time and
in such manner as the Commissioner requires.


         59 (1) Every person who collects any tax under this Act is deemed to hold the tax in
trust for payment to Her Majesty in the manner and at the time provided for under the
regulations, whether or not the tax has in fact been kept separate and apart by that person, and
the tax shall, until paid, form a lien and charge on the entire assets of the person's estate, and
the lien is deemed to be a mortgage or secured debenture and, subject to the Labour Standards
Code, is payable in priority to all other liens, charges or mortgages in respect of those assets.

            (2) Every mortgagee, judgment creditor or other person having a lien, charge or
encumbrance on property which is subject to a lien created pursuant to subsection (1), may, at
any time, pay to the Minister the amount of the lien and add the amount so paid to the mortgage,
judgment or other security, and has in respect thereto the same rights, remedies and privileges
against the property as that person has by virtue of or under the security held by that person,
and may also sue for and recover in any action or proceeding for debt the amount so paid,
together with interest on the amount, against the person primarily liable to pay that amount.


                     OBJECTION AND APPEAL

         60 (1) Where

                (a) a taxpayer disputes liability for the amount assessed against the
            taxpayer; or

                (b) a collector disputes liability for the amount assessed against the
            collector,

the taxpayer or collector, as the case may be, may personally or by a solicitor or agent, within
sixty days from the date of service or mailing of a notice of assessment, serve on the
Commissioner a notice of objection in duplicate setting out the reasons for the objection and all
relevant facts.

            (2) A notice of objection pursuant to subsection (1) shall be delivered to the office
of the Commissioner or sent by mail and addressed to the Commissioner.

            (3) Upon receipt of the notice of objection, the Commissioner shall, within sixty
days, reconsider the matter and vacate, confirm or vary the estimate, valuation or assessment,
and the Commissioner shall notify the person of the Commissioner's decision by mail.


         61 (1) Where a person who served or caused to be served a notice of objection
pursuant to Section 60 is dissatisfied with the decision of the Commissioner pursuant to
subsection 60(3), the person may, within thirty days of receipt of the decision, appeal to the Nova
Scotia Utility and Review Board.

            (2) An appeal pursuant to subsection (1) shall be taken by

                (a) filing a notice of appeal, in the form prescribed by the regulations, with
            the Clerk of the Nova Scotia Utility and Review Board; and

                (b) giving a copy of the notice to the Minister and the Commissioner,

within thirty days of the receipt of the decision to which the appeal relates.

            (3) The  Nova Scotia Utility and Review Board shall hear an appeal within sixty
days after the notice of appeal is filed with the Clerk of the Board.

            (4) The appellant and the Minister may appear at a hearing held by the Nova
Scotia Utility and Review Board pursuant to this Section, either personally or by counsel, and
may adduce evidence, cross-examine witnesses and make representations to the Board.

            (5) After a hearing held pursuant to this Section, the Nova Scotia Utility and
Review Board shall consider the matter and, within sixty days of the hearing, affirm, vary or
reverse the decision of the Commissioner and forthwith give the appellant and the Minister
written notice of the decision of the Board by mail or by personal service.


         62 An estimate made by the Commissioner pursuant to Section 78 shall not be varied
or disallowed due to an irregularity, informality, omission or error on the part of any person in
the observing of any directory provision up to the date of the giving of the notice of the estimate.


         63 The giving of a notice of objection or a notice of appeal by any person, or any delay
in the hearing of the appeal, does not in any way affect the due date, interest or penalties or any
liability for payment provided under this Act in respect of any taxes due and payable or that have
been, or should have been, collected on behalf of Her Majesty that are the subject-matter of the
appeal or in any way delay the collection of the taxes.


         64 Where the estimate of the Commissioner is set aside or reduced by the
Commissioner or on appeal, the Minister shall refund the amount or excess amount of taxes
which have been paid or collected on behalf of Her Majesty and of any additional interest or
penalty imposed and paid on those taxes together with interest on the amount refunded at a rate
and calculated in a manner prescribed by the regulations.


         65 A taxpayer remains liable for the tax imposed pursuant to this Act until the tax has
been collected and, in the event of failure on the part of the person selling revenue property to
collect the tax, the seller shall immediately notify the Commissioner, and the taxpayer may be
sued for the tax in any court of competent jurisdiction.


                       RECOVERY OF TAX

         66 (1) The amount of any taxes that are due and payable pursuant to this Act that
have been collected on behalf of Her Majesty constitute a debt due to Her Majesty and may be
recovered by action in any court as a debt due to Her Majesty, and the court may make an order
as to the costs of such action in favour of or against Her Majesty.

            (2) An action for the recovery of tax shall be brought by the Minister of Justice
on behalf of Her Majesty and shall be tried without a jury and the burden of proving that the tax
is not due or was not collected is on the person against whom the action is brought.

            (3) Where default is made in the payment of any taxes that are due and payable
pursuant to this Act that have been collected on behalf of Her Majesty, or any part thereof, the
Commissioner may issue a certificate stating the amount so due, the amount of taxes remaining
unpaid, including interest and penalties, and the name of the person by whom it is payable, and
may file the certificate with a prothonotary of the Supreme Court of Nova Scotia and, when so
filed, the certificate has the same force and effect and all proceedings may be taken on the
certificate as if the certificate were a judgment of the Supreme Court for the recovery of a debt
of the amount stated in the certificate against the person named in the certificate.


         67 (1) Where a corporation fails to remit an amount of tax as required pursuant to
this Act, the directors of the corporation at the time the corporation was required to remit the
amount are jointly and severally liable, together with the corporation, to pay that amount and
any interest thereon or penalties relating thereto.

            (2) A director of a corporation is not liable pursuant to subsection (1) unless

                (a) a certificate for the amount of the corporation's liability referred to in
            subsection (1) has been registered in the Supreme Court of Nova Scotia and
            execution for that amount has been returned unsatisfied, in whole or in part;

                (b) the corporation has commenced liquidation or dissolution proceedings
            or has been dissolved and a claim for the amount of the corporation's liability
            referred to in subsection (1) has been proved within six months after the earlier of
            the date of commencement of the proceedings and the date of dissolution; or

                (c) the corporation has made an assignment or a receiving order has been
            made against the corporation under the Bankruptcy Act and a  claim for the amount
            of the corporation's liability referred to in subsection (1) has been proved within six
            months after the date of the assignment or receiving order.

            (3) A director of a corporation is not liable for a failure under subsection (1)
where the director exercised the degree of care, diligence and skill to prevent the failure that a
reasonably prudent person would have exercised in comparable circumstances.

            (4) The Commissioner may assess any person for any amount payable by that
person pursuant to this Section.

            (5) An assessment pursuant to subsection (4) of any amount payable by a person
who is a director of a corporation shall not be made more than two years after that person last
ceased to be a director of the corporation.

            (6) Where an execution referred to in clause (2)(a) has been issued, the amount
recoverable from a director is the amount remaining unsatisfied after execution.

            (7) Where a director of a corporation pays an amount in respect of the
corporation's liability referred to in subsection (1) that is proved in liquidation, dissolution or
bankruptcy proceedings, the director is entitled to any preference that Her Majesty would have
been entitled to had the amount not been so paid and, where a certificate that relates to the
amount has been registered, the director is entitled to an assignment of the certificate to the
extent of the director's payment, which assignment the Commissioner is empowered to make.

            (8) A director who satisfies a claim pursuant to this Section is entitled to
contribution from the other directors who were liable for the claim.


         68 (1) Where the Commissioner has knowledge or believes on reasonable grounds
that a person is or will be, within ninety days, liable to make a payment to another person who
is liable to pay or remit an amount pursuant to this Act, in this Section referred to as the "tax
debtor", the Commissioner may, by a letter served personally or by mail, require the person to
pay forthwith, where the moneys are immediately payable, and in any other case, as and when
the moneys become payable, the moneys otherwise payable to the tax debtor, in whole or in part,
to the Minister on account of the tax debtor's liability under this Act.

            (2) Without limiting the generality of subsection (1), where the Commissioner has
knowledge or believes on reasonable grounds that within ninety days

                (a) a bank, credit union, trust company or other similar person, in this
            Section referred as the "institution", will loan or advance moneys to, or make
            payment on behalf of, or make a payment in respect of a negotiable instrument
            issued by a tax debtor who is indebted to the institution and who has granted
            security in respect of the indebtedness; or

                (b) a person, other than an institution, will loan or advance moneys to, or
            make a payment on behalf of, a tax debtor who the Commissioner knows or believes
            on reasonable grounds

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

                    (ii)    where that person is a corporation, is not dealing at arms length
                with that person,

the Commissioner may, by a letter served personally or by mail, require the institution or person,
as the case may be, to pay, in whole or in part, to the Minister on account of the tax debtor's
liability under this Act the moneys that would otherwise be so loaned, advanced or paid, and any
moneys so paid to the Minister are deemed to have been loaned, advanced or paid, as the case
may be, to the tax debtor.

            (3) Notwithstanding any enactment, where the Commissioner has knowledge or
believes on reasonable grounds that a particular person is or will become, within ninety days,
liable to make a payment to

                (a) a tax debtor; or

                (b) a secured creditor who has a right to receive the payment that, but for
            a security interest in favour of the secured creditor, would be payable to the tax
            debtor,

the Commissioner may, by a letter served personally or  by mail, require the particular person
to pay forthwith where the moneys are immediately payable, and in any other case, as and when
the moneys become payable, the moneys otherwise payable to the tax debtor or the secured
creditor, in whole or in part, to the Minister on account of the tax debtor's liability and, on
receipt of that letter by the particular person, the amount of those moneys that is required by that
letter to be paid to the Minister  become the property of Her Majesty, notwithstanding any
security interest in those moneys, and shall be paid to the Minister in priority to any such
security interest.

            (4) In subsection (3),

                (a) "secured creditor" means a particular person who has a security
            interest in the property of another person or who acts for or on behalf of the
            particular person with respect to the security interest, and includes a trustee
            appointed under a trust deed relating to a security interest, a receiver or receiver-manager appointed by a secured creditor or by a court on the application of a
            secured creditor, a sequestrator and any other person performing a similar
            function;

                (b) "security interest" means any interest in property that secures payment
            or performance of an obligation, and includes an interest created by or arising out
            of a debenture, mortgage, hypothec, lien, pledge, charge, deemed or actual trust,
            assignment or encumbrance of any kind whatever, however or whenever arising,
            created, deemed to arise or otherwise provided for.

            (5) A receipt issued by the Commissioner for moneys paid as required pursuant
to this Section is a good and sufficient discharge of the original liability to the extent of the
payment.

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

            (7) Every person who fails to comply with a requirement under subsection (1),
(3) or (6) is liable to pay to Her Majesty an amount equal to the amount that the person was
required under subsection (1), (3) or (6), as the case may be, to pay to the Minister.

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

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

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

            (9) The Commissioner may assess any person for any amount payable pursuant
to this Section by the person to the Minister.

            (10)    An assessment of an amount payable pursuant to this Section by a person to
the Minister shall not be made more than four years after the letter from the Commissioner
requiring the payment is served on the person.

            (11)    Where an amount that would otherwise have been payable to or on behalf of
the tax debtor is paid by a person to the Minister pursuant to a letter from the Commissioner
served on the person pursuant to this Section or pursuant to an assessment under subsection (9),
the person is deemed, for all purposes, to have paid the amount to or on behalf of the tax debtor.


         69 Where a person is indebted to Her Majesty pursuant to Sections 68 to 72, the
Commissioner may require the retention by way of deduction or set-off of such amount as the
Commissioner may specify out of any amount that may be or become payable to that person by
Her Majesty.


         70 For the purpose of collecting debts owed by a person to Her Majesty pursuant to
Sections 68 to 72, the Commissioner may purchase or otherwise acquire any interest in the
person's property that the Commissioner is given a right to acquire in legal proceedings or
under a court order or that is offered for sale or redemption, and may dispose of any interest
so acquired in such manner as the Commissioner considers reasonable.


         71 (1) Where the Commissioner has knowledge or believes on reasonable grounds
that a person is holding moneys that were seized by a peace officer, in the course of
administering or enforcing the criminal law of Canada, from another person who is liable to
make a payment under this Act, in this Section referred to as the "tax debtor", and that are
restorable to the tax debtor, the Commissioner may, by a letter served personally or by mail,
require that person to turn over the moneys otherwise restorable to the tax debtor, in whole or
in part, to the Minister on account of the tax debtor's liability under this Act.

            (2) A receipt issued by the Commissioner for moneys turned over as required
pursuant to this Section is a good and sufficient discharge of the requirement to restore the
moneys to the tax debtor to the extent of the amount so turned over.


         72 (1) Where a person fails to pay an amount as required pursuant to this Act, the
Commissioner may give thirty days' notice to the person by mail addressed to that person's last
known address of the Commissioner's intention to direct that the person's goods and chattels
be seized and sold, and, if the person fails to make the payment before the expiration of the thirty
days, the Commissioner may issue a certificate of the failure and direct that the person's goods
and chattels be seized.

            (2) Property seized pursuant to subsection (1) shall be kept for ten days at the
expense and risk of the owner and, if the owner does not pay the amount due together with all
expenses within the ten days, the property seized shall be sold by public auction.

            (3) Except in the case of perishable goods, notice of a sale referred to in
subsection (2) setting out the time and place of the sale, together with a general description of
the property to be sold, shall, at a reasonable time before the goods are sold, be published at
least once in one or more newspapers of general local circulation.

            (4) Any surplus resulting from a sale referred to in subsection (2), after deduction
of the amount owing and all expenses, shall be paid or returned to the owner of the property
seized.

            (5) Such goods and chattels of any person in default as would be exempt from
seizure under a writ of execution issued  by the  Supreme Court of Nova Scotia are exempt from
seizure pursuant to this Section.


         73 In addition to any penalties provided in this Act or the regulations, the
Commissioner may apply to a judge of the Supreme Court of Nova Scotia for an injunction
against any collector who, having been found guilty of an offence against this Act or the
regulations, continues to sell revenue property without holding a valid registration certificate
issued pursuant to this Act or the regulations or who has breached any agreement made
pursuant to the regulations ordering the collector to cease selling such revenue property, until
the collector has fulfilled the collector's obligations under this Act or the regulations and has
paid the costs of the application.


         74 The powers conferred by this Act for the recovery of taxes or money collected as
taxes, by action and by filing a certificate, may be exercised separately or concurrently, or
cumulatively, and the liability of the person for the payment of any tax pursuant to this Act or the
liability to remit taxes collected is not affected in any way by the fact that a fine or penalty has
been imposed on or paid by the person in respect of any contravention of this Act.


                     PENALTY AND INTEREST

         75 (1) Where the Commissioner is satisfied that a person failed to remit or pay any
tax as required by this Act or the regulations, the Commissioner may assess against the person
a penalty equal to five per cent of the amount not remitted or paid.

            (2) In addition to the penalty referred to in subsection (1), the Commissioner may

                (a) where the Commissioner is satisfied that a person wilfully failed to
            remit tax collected as required by this Act or the regulations, assess against the
            person a penalty of not less than twenty-five per cent and not more than one
            hundred per cent of the amount not remitted;

                (b) where the Commissioner is satisfied that a person evaded the payment
            of tax by wilfully making a false or deceptive statement or by wilful default or fraud,
            assess against the person a penalty equal to twenty-five per cent of the amount
            evaded; or

                (c) where a person fails to maintain records as prescribed by the
            regulations, assess a penalty of twenty-five per cent of the amount of tax due and
            payable.

            (3) The Commissioner may, at any time,

                (a) whether or not the Commissioner has assessed a penalty pursuant to
            subsection (1) or (2); and

                (b) in respect of any period during which tax under this Act or the
            regulations ought to have been remitted or paid,

assess on the amount of taxes not remitted or paid as required under this Act or the regulations,
interest at a rate prescribed by the Governor in Council.

            (4) The penalty and interest under this Section form part of the amount of tax due
or accruing due provided for in Section 59.

            (5) The Commissioner may, where the Commissioner deems fit, vary an
assessment made pursuant to subsection (1) or (2) within a period of sixty days from the date
of the original assessment.

            (6) Penalties or interest collected pursuant to this Section shall be paid to the
Minister.


                     AUDIT AND INSPECTION

         76 In Sections 77 to 81,

            (a) "auditor" means an auditor appointed pursuant to this Act and includes a
         member of the Royal Canadian Mounted Police and a member of a municipal police force
         within the meaning of regulations made pursuant to the Police Act;

         (b)    "documents" includes money, securities and, whether computerized or not, books,
records, letters, telegrams, vouchers, invoices, accounts and statements, including financial
statements;

            (c) "dwelling house" means the whole or any part of a building or structure that
         is kept or occupied as a permanent or temporary residence and includes

                (i) a building that is on the same parcel of land and that is connected to
            it by a doorway or by a covered and enclosed passageway, and

                (ii)    a unit that is designed to be mobile and to be used as a permanent or
            temporary residence and is being used as a permanent or temporary residence.


         77 An identification card purporting to be signed by the Commissioner, or a person
authorized by the Commissioner to issue identification cards for auditors, is prima facie proof
that the person named on the card is an auditor within the meaning of this Act without any proof
of appointment or signature.


         78 (1) An auditor, or any person appointed by the Commissioner, may, from time
to time, and at all reasonable times, enter the business premises occupied by any person,
collector or consumer, or the premises where revenue property or records are kept to determine
whether this Act and the regulations are being and have been complied with, or to inspect, audit
and examine books of account, records or documents, or to ascertain the quantities of revenue
property purchased, on hand, sold or used by the person, collector or consumer, and whether
the tax collected or payable by that person has been remitted to the Minister, and the person
occupying or in charge of the premises shall answer all questions pertaining to these matters and
shall produce such books of account, records or documents as may be required.

            (2) Where it appears from the inspection, audit or examination of the books of
account, records or documents that this Act or the regulations have not been complied with, the
person making the inspection, audit or examination shall calculate the amount of tax collected
or that should have been collected on the sale of revenue property and the tax due on purchase
or consumption for own use in such manner and form and by such procedure as the
Commissioner deems adequate and expedient, and the Commissioner shall assess the person for
the amount of the tax so calculated and the person may appeal the amount of the assessment
pursuant to Section 60.

            (3) Where a person fails to substantiate the person's liabilities and obligations
under this Act and the regulations by records kept by the person, the Commissioner, or a person
designated by the Commissioner, may estimate the unpaid tax and such estimation is deemed to
be the amount of tax due and payable by the person.

            (4) For the purpose of subsection (3), the Commissioner may assess a penalty of
twenty-five per cent of the amount of tax due and payable by the person in addition to any other
penalty.

            (5) Notwithstanding subsection (10), in the discretion of the Commissioner or a
person appointed by the Commissioner, any or all of the books of account, records or documents
of any person may be audited for such a period or periods of time as the Commissioner, or a
person designated by the Commissioner, approves, whether such approval for the period or
periods of time is given before or after the audit, and the results of the audit may be applied over
the audit period or any part of the audit period.

            (6) A person shall make the person's books of account, records or documents
available to the Commissioner, or a person designated by the Commissioner, for the purpose of
allowing an estimate to be made pursuant to subsection (3).

            (7) Liability to assessment is not affected by an incorrect or incomplete
assessment or by the fact that no assessment has been made.

            (8) The Commissioner may give notice in writing, by personal service or by mail,
to the person setting out the amount determined or estimated pursuant to this Section, and in the
case of a person having more than one address, one of which is in the Province, the notice may
be sent to the address in the Province.

            (9) The Commissioner may, where the Commissioner deems fit, vary an
assessment made pursuant to this Section within sixty days from the date of the original
assessment, and such varied assessment is deemed to be an assessment made pursuant to this
Section.

            (10)    In making an assessment pursuant to this Section, the Commissioner shall not
consider a period or periods of time greater than four years prior to the date of commencement
of the inspection, audit or examination of the books of account, records or documents, unless the
Commissioner deems the person did not exercise the degree of care, diligence and skill to
prevent an offence that a reasonably prudent person would exercise in comparable
circumstances, or if there is evidence that the person has committed fraud, and the results may
be applied over the period or any part of the period.


         79 (1) Where an auditor, or person appointed by the Commissioner, believes on
reasonable grounds that a person is contravening or has contravened this Act, the auditor, or
person appointed by the Commissioner, may apply to a judge of the Provincial Court or a justice
of the peace for a warrant pursuant to subsection (2).

            (2) Where, on an application pursuant to subsection (1), a judge of the Provincial
Court or a justice of the peace is, by information on oath, satisfied that there are reasonable
grounds for believing that this Act is being contravened, the judge or justice of the peace may
issue a warrant authorizing an auditor or person appointed by the Commissioner to do one or
more of the following things:

                (a) enter any dwelling house, business premises, motor vehicle, aircraft,
            ship or boat, cargo container or receptacle, search therein for revenue property in
            respect of which the tax has not been paid and seize the revenue property;

                (b) make such inquiries as the auditor or person appointed by the
            commissioner considers necessary;

                (c) make copies or abstracts of any documents that may afford evidence
            of a contravention of this Act;

                (d) take away any documents for the purpose of making copies, as long as
            the copies are returned forthwith to the person from whom the documents were
            taken.

            (3) The owner or person in charge of the dwelling house, business premises,
motor vehicle, aircraft, ship or boat, cargo container or receptacle and every person found
therein shall give the auditor or person appointed by the Commissioner all reasonable assistance
to enable the auditor or person to carry out duties and functions pursuant to this Section, and
shall furnish such information as the auditor, or person appointed by the Commissioner, may
reasonably require, and every person who fails to do so is guilty of an offence.

            (4) Notwithstanding subsection (1), an auditor, or person appointed by the
Commissioner, may exercise the power of search referred to in subsection (2) without a warrant
if the conditions for obtaining the warrant exist but by reason of exigent circumstances it is not
practical to obtain a warrant.

            (5) For the purpose of subsection (4), exigent circumstances include
circumstances in which the delay necessary to obtain the warrant would result in danger to
human life or the loss or destruction of evidence.


         80 (1) Where, upon a search of a motor vehicle, aircraft, ship or boat, cargo
container or receptacle pursuant to Section 79, revenue property is found in respect of which it
is reasonable to believe an offence against this Act or the regulations has been committed, the
motor vehicle, aircraft, ship or boat, cargo container or receptacle may be detained by an
auditor, or a person appointed by the Commissioner, until the tax or any penalty or interest
imposed pursuant to this Act are paid or security satisfactory to the Minister is given for the
payment of the tax, penalty or interest or sold pursuant to subsection (2).

            (2) A motor vehicle, aircraft, ship or boat, cargo container or receptacle detained
pursuant to subsection (1) may be sold after the expiration of thirty days from the date of the
detention to pay the tax and penalty and any expenses incurred in the detention and sale unless,
within that period of thirty days, payment is made of the taxes and penalty imposed pursuant to
this Act or the regulations, or security satisfactory to the Minister is given.


         81 (1) Where a person who does not hold a valid certificate has possession or
control of revenue property in respect of which the tax has not been paid, or the revenue
property is transported or stored by or for that person or any other person, an auditor, or
person appointed by the Commissioner, may seize, hold and, subject to the regulations, dispose
of the revenue property.

            (2) Where a person transports revenue property and that person is not in
possession of a bill of lading, waybill or other document showing the origin and destination of
the revenue property during such transportation, that person is guilty of an offence.


                           SECURITY

         82 (1) The Commissioner may require an agent, sub-agent, collector or applicant
for a registration certificate to deposit with the Minister a bond by way of cash or other security
in such amount as may be determined by the Commissioner, which shall not in any case be
greater than an amount equal to six times the amount of the tax estimated by the Commissioner
to be the amount normally collected by the applicant or collector each month in compliance with
this Act or the regulations.

            (2) The estimate of the Commissioner pursuant to subsection (1) is final and
conclusive for the purpose of a bond or other security under this Section.

            (3) Where a person who deposited a bond or other security with the Minister
pursuant to subsection (1) fails to collect or remit tax imposed pursuant to this Act, the
Commissioner may, by giving written notice to the person by mail or personal service, apply the
bond or other security, in whole or in part, to the amount that should have been collected,
remitted or paid by the person as the amount due to Her Majesty as of the date of the notice.


                       CONFIDENTIALITY

         83 Notwithstanding the Freedom of Information and Protection of Privacy Act, a person
who has custody or control over information or records pursuant to this Act may disclose the
information or records

            (a) in the course of administering or enforcing this Act or the regulations;

            (b) in the course of administering an enactment of the Province or the Parliament
         of Canada or of another province respecting the imposition of taxation;

            (c) in court proceedings relating to this Act, any other enactment of the Province
         or of the Parliament of Canada or of another province respecting the imposition of
         taxation;

            (d) under an agreement that

                (i) is between the Government of the Province and the Government of
            Canada and the government of another province of Canada,

                (ii)    relates to the administration or enforcement of an enactment of the
            Province, the Parliament of Canada or another province of Canada respecting the
            imposition of taxation, and

                (iii)   provides for the disclosure of information and records to, and the
            exchange of similar information and records with, the Government of Canada or
            the government of another province of Canada; or

            (e) for the purpose of compilation of statistical information by the Government
         of the Province or the Government of Canada.


                        TAX AVOIDANCE

         84 (1) In this Section,

                (a) "tax benefit" means a reduction, avoidance or referral of tax or other
            amount payable pursuant to this Act or an increase in a refund of tax, rebate of tax
            or other amount pursuant to this Act;

                (b) "tax consequences" to a person means the amount of tax payable or
            refundable to the person pursuant to this Act or any other Act that is relevant for
            the purpose of computing that amount;

                (c) "transaction" includes an arrangement or event.

            (2) Where a transaction is an avoidance transaction, the tax consequences to a
person shall be determined as 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) An avoidance transaction means any transaction

                (a) that, but for this Section, would result, directly or indirectly, in a tax
            benefit; or

                (b) that is part of a series of transactions, which series, but for this Section,
            would result, directly or indirectly, in a tax benefit,

unless the transaction may reasonably be considered to have been undertaken or arranged
primarily for bona fide purposes other than to obtain the tax benefit.

            (4) For greater certainty, subsection (2) does not apply in respect of a transaction
where it may reasonably be considered that the transaction would not result, directly or
indirectly, in a misuse of the provisions of this Act, or in an abuse having regard to the
provisions of this Act, other than this Section, read as a whole.

            (5) Without restricting the generality of subsection (2),

                (a) any deduction in computing tax or net tax payable may be allowed or
            disallowed, in whole or in part;

                (b) any deduction or a part thereof 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 as 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.

            (6) Where, with respect to a transaction, a notice of assessment, reassessment or
additional assessment involving the application of subsection (2) with respect to the transaction
has been sent to a person, any person, other than a person to whom a notice has been sent, shall
be entitled, within sixty days after the day of mailing of the notice, to request in writing that the
Commissioner make an assessment, a reassessment or an additional assessment, applying
subsection (2) with respect to that transaction.

            (7) Notwithstanding anything contained in this Act, the tax consequences to any
person following the application of this Section shall only be determined through a notice of
assessment, reassessment or additional assessment involving the application of this Section.

            (8) On receipt of a request by a person pursuant to subsection (6), the
Commissioner shall, within sixty days, consider the request and assess, reassess or make an
additional assessment with respect to the person, except that an assessment, reassessment or an
additional assessment may be made pursuant to this subsection only to the extent that it may
reasonably be regarded as relating to the transaction referred to in subsection (6).

            (9) A person who enters into a transaction that is an avoidance transaction is
guilty of an offence.


                    OFFENCE AND PENALTIES

         85 A person contravening this Act or the regulations is guilty of an offence against this
Act, and every violation in connection with a separate sale or transaction is a separate offence.


         86 (1) Where a corporation commits an offence under this Act, any officer, director,
employee or agent of that corporation who directed, authorized, assented to, acquiesced in or
participated in the commission of the offence is a party to and commits the offence and, on
conviction, is liable to the punishment provided for the offence whether or not the corporation
has been prosecuted or convicted.

            (2) Nothing in subsection (1) relieves the corporation that committed an offence
under this Act from liability for the offence.

            (3) In construing and enforcing this Act, the act, omission, neglect or failure of
an officer, director, employee or agent of a corporation, acting within the scope of that person's
employment or instructions, is the act, omission, neglect or failure of the corporation.


         87 (1) A person who contravenes Part I of this Act is liable to

                (a) in the case of a corporation, a penalty of not more than ten thousand
            dollars; or

                (b) in the case of a person who is not a corporation, a penalty of not more
            than one thousand dollars and, in default of payment, to imprisonment for a term
            not exceeding six months.

            (2) Where a person is convicted for a contravention of Part I of this Act and a
previous conviction for a contravention of that Part is established, the person convicted may, in
addition to the pecuniary penalty, be imprisoned for a term of not more than six months.

            (3) Where a court or judge convicts a person of a contravention of Part I of this
Act, the court or judge shall forthwith make a report of the conviction to the Commissioner who
shall report the conviction to the Registrar of Motor Vehicles in the case of a person who holds
a drivers licence, vehicle permit or certificate of registration issued pursuant to the Motor
Vehicle Act.

            (4) Upon receipt of a report of the conviction of a person who holds a driver's
licence, vehicle permit or certificate of registration issued pursuant to the Motor Vehicle Act, the
Registrar of Motor Vehicles shall suspend the licence, permit or certificate of registration of the
vehicle in respect of which the violation was committed for a period of thirty days for a first
conviction, ninety days for a second conviction and six months for any subsequent conviction.

            (5) Upon receipt of a report of the conviction of a person who has been issued
a permit of any kind pursuant to Part I of this Act, the Commissioner shall suspend any such
permit in so far as it relates to premises, facilities, vehicles or an activity in relation to which the
violation occurred for a period of sixty days for a first conviction, six months for a second
conviction and one year for any subsequent conviction.

            (6) Upon receipt of a report of the conviction of a person who does not hold a
permit pursuant to Part I of this Act as required, the offender shall not have the right to obtain
any such permit for a period of sixty days after the date of the first conviction, six months after
the date of a second conviction or one year for any subsequent conviction.


         88 (1) In this Section, "tangible personal property" means tangible personal property
as defined in Part II of this Act.

            (2) Subject to subsection (3), a person who contravenes Part II of this Act is
liable, on summary conviction, to a fine of not less than five thousand dollars and not more than
twenty thousand dollars and, in default of payment, to imprisonment for a term of not less than
three months and not more than twelve months and, in addition, shall be ordered by the judge
to pay the amount of the tax that is owing including any arrears, penalties and interest on or
before such date as is fixed by the judge.

            (3) A person who fails to collect the tax imposed by Part II of this Act is liable,
on summary conviction, to a fine equal to two times the amount of the tax including any arrears,
penalties and interest that should have been collected, as determined pursuant to this Act, and,
in addition, to a penalty of not less than five thousand dollars and not more than twenty thousand
dollars and, in default of payment, to imprisonment for a term of not less than six months and
not more than twelve months.

            (4) The Commissioner shall determine the amount of the tax referred to in
subsection (3) from such information as is available to the Commissioner, and shall issue a
certificate as to the amount and, except where the Commissioner deems there has been deliberate
evasion of Part II of this Act, the Commissioner shall not consider a period of greater than four
years in determining the amount of tax.


         89 (1) A person who contravenes Part III of this Act is liable, on summary
conviction, to a fine of not less than ten thousand dollars and not more than fifty thousand
dollars and, in default of payment, to imprisonment for a term not exceeding one year except
that, where that person is a manufacturer of tobacco, a wholesale vendor or employee of a
manufacturer of tobacco or a wholesale vendor, that person is liable to a fine of not less than
ten thousand dollars and not more than one hundred thousand dollars and, in default of
payment, to imprisonment for a term not exceeding two years and in any event, in addition, shall
be ordered by the judge to pay the amount of the tax that is owing, including any arrears,
penalties and interest on or before such date as is fixed by the judge.

            (2) A person who fails to collect the tax imposed by Part III of this Act is liable,
on summary conviction, to a fine equal to the amount of the tax, including any arrears, penalties
and interest, that should have been collected, as determined pursuant to this Act, and, in
addition, to a penalty of not less than twenty-five hundred dollars and not more than twenty-five
thousand dollars and, in default of payment, to imprisonment for a term not exceeding one year.


         90 (1) A person who makes a false statement that is in contravention of this Act or
the regulations is guilty of an offence against this Act or the regulations.

            (2) Any information or complaint in respect of an offence under this Act or the
regulations may be for one or more than one offence, and no information, complaint, warrant,
conviction or other proceedings in a prosecution under this Act or the regulations is
objectionable or insufficient by reason of the fact that it relates to two or more offences.

            (3) In any prosecution pursuant to this Act, a certificate signed or purporting to
be signed by the Commissioner stating the amount of tax that should have been collected is
evidence and prima facie proof of the amount of the tax that should have been collected and of
the authority of the person giving or making the certificate without any proof of appointment or
signature.

            (4) An information or complaint in respect of an offence contrary to this Act or
the regulations shall be laid or made within six years of the time when the matter of the
information or complaint arose except that, in the case of fraud, no limitation applies.

            (5) Where a collector is described as a partnership on the application form, the
application form is prima facie proof that the persons named in the application are partners
registered as such pursuant to this Act or the regulations and the return form is prima facie
proof that the partnership collected the tax.

            (6) Nothing contained in this Section, nor the enforcement of any penalty under
this Section, shall suspend or affect any remedy for the recovery of any tax or amount payable
pursuant to this Act or the regulations.

            (7) Penalties collected pursuant to this Act shall be paid to the Minister.


         91 Sections 85 to 90 apply notwithstanding the Remission of Penalties Act.


                         REGULATIONS

         92 (1) For the purpose of carrying into effect the provisions of this Act according to
their true intent and of supplying any deficiency therein, and for the purpose of relaxing the
strictness of the law relative to the incidence or the collection of the tax thereunder, in cases
where, without relaxation, great public inconvenience or great hardship or injustice to persons
or individuals could not be avoided, the Governor in Council may make such regulations as are
considered necessary or advisable.

            (2) Without limiting the generality of the subsection (1), the Governor in Council
may make regulations

                (a) prescribing the forms to be used for the purpose of this Act or the
            regulations;

                (b) prescribing the form and manner of records to be kept for the purpose
            of this Act or the regulations;

                (c) prescribing the method of collection and remittance of tax pursuant to
            this Act and any condition or requirement affecting the collection and remittance of
            tax;

                (d) determining the remuneration and conditions of remuneration to be
            paid for collecting and remitting tax to the Minister pursuant to this Act;

                (e) determining the rate or rates of interest and the manner of calculating
            interest for the purpose of this Act;

                (f) respecting the terms and conditions of certificates required pursuant
            to this Act;

                (g) respecting the manner in which a person whose certificate is cancelled
            pursuant to this Act may dispose of any stock of tobacco that the person may own;

                (h) providing a rebate to a retailer who sells to a retail purchaser who is
            exempt from tax on tobacco on which the retailer has paid the tax, prescribing the
            terms and conditions under which such rebates may be made and prescribing the
            records and material to be furnished upon an application for a rebate;

                (i) providing for the rebate of the tax, in whole or in part, to

                    (i) religious or charitable organizations in respect of goods
                purchased by such organization that enter into capital investment,

                    (ii)     the governing body of a  hospital, nurses' home, school or
                university in respect of goods purchased by such governing body that enter
                directly into and become part of the construction of a hospital, nurses' home,
                school or university building,

                    (iii)    students in full-time attendance at a university, trade school
                within the meaning of the Trade Schools Regulation Act or community college
                in the Province in respect of computers to be used by the students in pursuing
                their education,

                    (iv)     persons who are visually impaired, hearing impaired or
                physically challenged in respect of computers to be used by those persons,

                    (v) other purchasers in exceptional circumstances as determined by
                the Commissioner,

            and prescribing the terms and conditions under which rebates may be made;

                (j) providing for the rebate of the tax to a person in respect of a passenger
            vehicle, a truck having a load capacity not exceeding three quarters of a ton or a
            van where that person

                    (i) is subject to a physiological defect or deficiency which deprives
                that person of the use of both of the person's limbs,

                    (ii)     has a valid motor vehicle drivers licence, and

                    (iii)    primarily uses the vehicle for the person's personal trans-
                portation,

            and prescribing the terms and conditions under which rebates may be made;

                (k) providing for the rebate of the tax paid in respect of a passenger
            vehicle, a truck having a load capacity not exceeding three quarters of a ton or a
            van where the vehicle is equipped with a device used primarily to enable
            wheelchairs to enter or leave the vehicle, and defining the nature of such
            circumstances and prescribing the terms and conditions under which rebates may
            be made;

                (l) providing for the rebate of the tax, in whole or in part, to an
            organization or governing body mentioned in clause (i) or to a municipality if the
            organization, governing body or municipality entered into a lump-sum contract and
            pursuant to that contract the contractor paid tax on goods that, if purchased by the
            organization or governing body, might be subject to rebate under clause (i), or if
            purchased by a municipality would not have been taxable;

                (m) providing for the rebate of the tax to a first-time home buyer in respect
            of building materials used in the construction of the home to a maximum of three
            thousand dollars for homes constructed after October 1, 1993, and prior to April
            1, 1996;

                (n) refunding to any consumer or purchaser or class of consumers or
            purchasers the tax, or any portion of the tax, and prescribing the method or
            methods by which any such consumer or purchaser or class of consumers or
            purchasers may obtain a refund;

                (o) providing for administrative fees, user fees or other similar fees;

                (p) providing for the proration of exemptions pursuant to Part II of this
            Act;

                (q) defining any word or expression used but not defined in this Part;

                (r) deemed necessary to carry out effectively the intent and purpose of this
            Part.

            (3) The exercise by the Governor in Council of the authority contained in this
Section is regulations within the meaning of the Regulations Act.


                            PART V

                        MISCELLANEOUS

         93 (1) Every permit, licence, approval, designation or certificate given, made or
issued pursuant to one or more of the Acts listed in Section 96 that is subsisting and in force on
the coming into force of this Act, is deemed to have been given, made or issued pursuant to this
Act and continues in force until varied, cancelled, suspended or appealed in accordance with this
Act.

            (2) Where a right of appeal existed in one or more of the Acts listed in Section 96
and an appeal arises after the coming into force of this Act, the appeal provisions in this Act
apply.


         94 Subsection 12(1) of Chapter 198 of the Revised Statutes, 1989, the Health Services
Tax Act, as amended by Chapter 10 of the Acts of 1990, Chapter 15 of the Acts of 1992, Chapter
25 of the Acts of 1993, Chapter 9 of the Acts of 1994 and Chapter 2 of the Acts of 1995, is
further amended by striking out the period at the end of clause (ao) and substituting a semicolon
and adding the following clause:

            (ap)    tobacco and tobacco products.


         95 Subsection 5(1) of Chapter 470 of the Revised Statutes, 1989, the Tobacco Tax Act,
is repealed and the following subsection substituted:

            (1) Every consumer shall pay to Her Majesty in right of the Province a tax at the
         rate of

                (a) four and ninety-four one hundreds cents per cigarette for tobacco
            purchased in the form of a cigarette;

                (b) three and eighty-nine one hundreds cents per gram of tobacco for fine-cut tobacco;

                (c) six and twenty-three one hundreds cents per gram of tobacco for
            tobacco in the form of pre-proportioned tobacco sticks;

                (d) sixty-six per cent of the manufacturer's or importer's suggested retail
            selling price of tobacco in the form of cigars; and

                (e) three and sixty-two one hundreds cents per gram of tobacco in any
            other form.


         96 (1) Chapter 183 of the Revised Statutes, 1989, the Gasoline and Diesel Oil Tax
Act, is repealed.

            (2) Chapter 198 of the Revised Statutes, 1989, the Health Services Tax Act, is
repealed.

            (3) Chapter 470 of the Revised Statutes, 1989, the Tobacco Tax Act, is repealed.


         97 (1) Sections 94 and 95 have effect on and after November 6, 1995.

            (2) This Act, except Sections 94 and 95 and this Section, comes into force on such
day as the Governor in Council orders and declares by proclamation.