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BILL NO. 48





Government Bill




4th Session, 56th General Assembly
Nova Scotia




45 Elizabeth II, 1996

An Act to Implement the Comprehensive

Integrated Tax Co-ordination Agreement

Between the Government of Canada

and the Government of Nova Scotia





CHAPTER 31
ACTS OF 1996




The Honourable William Gillis
Minister of Finance




AS ASSENTED TO BY THE LIEUTENANT GOVERNOR
DECEMBER 20, 1996




Halifax
Printed by Queen s Printer for Nova Scotia







An Act to Implement the Comprehensive

Integrated Tax Co-ordination Agreement

Between the Government of Canada

and the Government of Nova Scotia





Be it enacted by the Governor and Assembly as follows:

1 This Act may be cited as the Sales Tax Act.

2 In this Act,

(a) "Agreement" means the Comprehensive Integrated Tax Co-ordination Agreement referred to in this Act, together with any amendments made pursuant to this Act;

(b) "Minister" means the Minister of Finance.

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

4 (1) Subject to Section 9, such persons as are necessary for the administration and enforcement of this Act and the regulations shall be appointed in accordance with the Civil Service Act.

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

PART I

AGREEMENT

5 (1) The Comprehensive Integrated Tax Co-ordination Agreement dated October 18, 1996, between the Minister on behalf of Her Majesty in right of the Province and the Minister of Finance for Canada on behalf of the Government of Canada is ratified and confirmed and, without limiting the generality of the foregoing, the Minister may make payments from the Consolidated Fund of the Province in accordance with the Agreement.

(2) The Minister on behalf of Her Majesty in right of the Province may from time to time enter into an agreement with the Minister of Finance for Canada on behalf of the Government of Canada amending the Agreement.

(3) Where

(a) under the Agreement the participating provinces propose a change in the rate of tax; or

(b) the Minister enters into an amending agreement pursuant to subsection (2),

the Minister shall introduce for the consideration of the House of Assembly a resolution respecting the change or the amending agreement, as the case may be, within ten days of its proposal or execution if the House is then sitting or, if it is not then sitting, within ten days after it next sits.

PART II

TAX-INCLUSIVE PRICING

6 (1) In this Part,

(a) "consumer", of property or a service, means a particular person who acquires in the Province property or a service for that person's personal consumption, use or enjoyment or the personal use, consumption or enjoyment of another person at that particular person's expense, but does not include a person who acquires the property or service for consumption, use or supply in the course of commercial activities or other activities in the course of which the particular person makes an exempt supply as defined in section 123 of the Excise Tax Act (Canada);

(b) "person" means an individual, partnership, corporation, trust or estate, or a body that is a society, union, club, association, commission or other organization of any kind;

(c) "property" means real or personal property that is movable or immovable, tangible or intangible, or corporeal or incorporeal and includes a right or interest of any kind, a share and a chose in action but does not include money;

(d) "service" means anything other than

(i) property,

(ii) money, and

(iii) anything that is supplied to an employer by a person who is or who agrees to become an officer or an employee of the employer in the course of or in relation to the office or employment of that person;

(e) "supplier", in respect of a supply, means the person making the supply;

(f) "supply" means, subject to subsections (2) and (3), the provision of property or a service, in any manner, including sale, transfer, barter, exchange, licence, rental, lease, gift or disposition; (g) "tax" means a tax imposed under Part IX of the Excise Tax Act (Canada).

(2) Where an agreement is entered into to provide property or a service,

(a) the entering into the agreement is a supply of the property or service made at the time the agreement is entered into; and

(b) the provision, if any, of property or a service under the agreement is part of the supply referred to in clause (a) and not a separate supply.

(3) Where, under an agreement entered into in respect of a debtor obligation, a person transfers property or an interest in property for the purpose of securing payment of the debt or performance of the obligation, the transfer shall not be considered to be a supply of a property or service and, where on payment of the debt or performance of the obligation the property or interest is retransferred, the retransfer of the property or interest shall not be considered to be a supply of property or service.

7 (1) Subject to the regulations, a supplier or other person who makes or offers to make a supply to a consumer of a property or service at a retail sale in the Province shall advertise, display, express or indicate a tax-included price for that supply that is the sum of the supplier's selling price and the tax payable for that supply.

(2) A receipt or invoice for a supply in the Province shall, in accordance with the regulations, indicate the amount of tax due or the rate of tax applicable to that supply separate from the supplier's selling price or tax-included price for that supply.

8 (1) A person who contravenes this Part is guilty of an offence and is liable on summary conviction to a fine of not less than one hundred dollars and not more than five thousand dollars and, in default of payment, to imprisonment for not more than thirty days.

(2) Every continuance for a day or a part of a day of a contravention of this Part constitutes a separate offence.

(3) In a prosecution for an offence under this Part, it is sufficient proof of the offence to establish that it was committed by an employee or an agent of the accused whether or not the employee or agent is identified or has been prosecuted for the offence, unless the accused establishes that due diligence was exercised to prevent its commission.

(4) In determining the punishment for an offence under this Part, the court may consider

(a) whether the offence was deliberate or inadvertent;

(b) the incompetence, negligence or lack of concern of the offender;

(c) the economic benefit accruing to the offender that but for the offence the offender would not have received;

(d) evidence from which the court may reasonably conclude that the offender has a history of non-compliance with this Part.

PART III

AGREEMENTS AND CONFIDENTIALITY

9 (1) The Minister, on behalf of Her Majesty in right of the Province, may enter into agreements with the Government of Canada respecting the administration and enforcement of this Act, or any part thereof, by the Government of Canada and respecting the exchange and sharing of information and technology necessary for the administration and enforcement of this Act.

(2) Any agreement made in accordance with the Agreement before the coming into force of this Act by the Minister respecting the matters referred to in subsection (1) is ratified and confirmed.

10 (1) The Minister may authorize the persons who may receive information, records or returns under this Act and the Minister shall not authorize a person to receive that information or those records or returns unless it is necessary to do so for the purpose of this Act.

(2) Notwithstanding the Freedom of Information and Protection of Privacy Act, a person who has custody or control over information, records or returns under this Act may disclose that information or those records or returns

(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 the course of administering or enforcing the Liquor Control Act;

(d) under an agreement that

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

(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, returns and records to and the exchange of similar information, returns and records with that other government; or

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

PART IV

TRANSITIONAL TAX

11 (1) Every purchaser shall pay to Her Majesty in right of the Province a tax at the rate of two per cent of the purchase price of motor vehicles and heavy equipment purchased on or after April 1, 1997, and on or before March 31, 1998.

(2) Every purchaser shall pay to Her Majesty in right of the Province a tax at the rate of one per cent of the purchase price of motor vehicles and heavy equipment purchased on or after April 1, 1998, and on or before March 31, 1999.

12 Parts II and IV of the Revenue Act apply mutatis mutandis to the tax imposed by this Part except that the purchase price does not include the tax imposed pursuant to Part IX of the Excise Tax Act (Canada).

PART V

GENERAL

13 (1) The Governor in Council may make regulations

(a) respecting the comprehensive integrated sales tax;

(b) suspending the application, in whole or in part, of Part II of the Revenue Act;

(c) suspending the imposition, in whole or in part, of the taxes imposed pursuant to the Theatres and Amusements Act;

(d) providing for a payment to a purchaser of an amount equal to the tax, in whole or in part, paid or payable pursuant to Part IX of the Excise Tax Act (Canada);

(e) respecting the manner, form and circumstances in which the price of property or services is to be advertised, displayed, expressed or indicated and, without limiting the generality of the foregoing,

(i) respecting circumstances in which the tax shall be indicated as an amount in addition to the advertised, displayed, expressed or indicated price of the property or service,

(ii) respecting the pricing of property and services by a supplier including pricing on price tags or stickers, packaging, bins, shelves, containers, displays and windows,

(iii) respecting the advertisement of a price for property and services in newspapers, magazines, catalogues, posters, flyers and other print material distributed or displayed in the Province,

(iv) respecting the advertisement of a price for property and services on a banner, sandwich board, billboard, electronic-display device or other similar device in the Province,

(v) respecting the advertisement of a price for property and services on radio and television and other forms of telecommunication where the broadcast of that advertisement originated and terminated in the Province,

(vi) respecting the manner in which pricing and tax are to be indicated on receipts and invoices provided to consumers in the Province,

(vii) respecting an oral or written offer made to a consumer with respect to a supply of property or services to a consumer in the Province,

(viii) respecting a contract being negotiated or made with respect to property or services to be supplied to a consumer in the Province,

(ix) respecting discount and other coupons distributed in the Province,

(x) exempting a supply of a property or service from the application of Part II;

(f) respecting the imposition and collection of a transitional tax on the sale of motor vehicles and heavy equipment;

(g) defining any word or expression used in this Act and not defined herein;

(h) respecting any matter necessary or advisable to carry out effectively the intent of this Act and the Agreement.

(2) A regulation made pursuant to this Act may be of general application or may apply to such class or classes of persons, such class or classes of goods or services and such class or classes of matters or things as the Governor in Council determines, and there may be different regulations with respect to different classes of persons, different classes of goods or services and different classes of matters or things.

(3) A regulation made pursuant to this Act may be retroactive to the extent necessary to implement the intent and purpose of this Act and the Agreement.

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

14 Chapter 17 of the Acts of 1995-96, the Revenue Act, is amended by adding immediately after Part II the following Part:

PART IIA

TAX ON MOTOR VEHICLES AND OTHER DESIGNATED TANGIBLE PERSONAL PROPERTY

31A This Part applies as determined by the regulations.

31B Every purchaser shall pay to Her Majesty in right of the Province a tax at the rate of fifteen per cent of the purchase price of motor vehicles and other designated tangible personal property where the purchase is not a taxable supply made by a registrant pursuant to Part IX of the Excise Tax Act (Canada).

31C (1) The Governor in Council may make regulations

(a) respecting the tax imposed by this Part including, without limiting the generality of the foregoing, the rebating of the tax;

(b) applying this Part and designating provisions of Part II of this Act as applying to this Part mutatis mutandis;

(c) designating tangible personal property for the purpose of this Part;

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

(e) respecting any matter necessary or advisable to carry out effectively the intent of this Part.

(2) The exercise of the authority contained in this Section is regulations within the meaning of the Regulations Act.

15 Section 47 of Chapter 17 is amended by adding ", IIA" immediately after "II" in the second line.

16 (1) This Act, except Part II, has effect on and after April 1, 1997.

(2) Part II of this Act comes into force on such day as the Governor in Council orders and declares by proclamation.