BILL NO. 36

(aa) respecting fees, including prescribing fees and requiring the payment of fees;

(4) A regulation made pursuant to clause (aa) of subsection (1) may be made retroactive to the first day of April, 2003.

4 The criteria referred to in Section 3 for eligibility of a corporation or association for registration are

(a) in the case of a corporation, that the corporation has authorized capital consisting of at least one class of voting equity shares;

(b) that at least twenty-five per cent of salaries and wages are paid in the Province;

(c) that the business entity or affiliated corporations or associations have fewer than five hundred employees;

(d) that the corporation or association has assets calculated in the prescribed manner of less than twenty-five million dollars, including assets of its affiliated companies or associations;

(e) that the corporation or association has revenues of less than twenty-five million dollars, including revenues of its affiliated companies or associations;

(f) that all or substantially all of the fair market value of the property of the corporation or association is attributable to property used in an active business or shares of a corporation or association that would, if it made application pursuant to this Act, be an eligible business;

(g) in the case of an association, that the association undertakes or carries on business or operations in any activity prescribed by regulation;

(h) that the corporation or association is not a business incorporated for the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor;

(i) that none of the officers and directors of the corporation or association are officers or directors of any other corporation or association that is currently not in compliance with this Act or the regulations.

(ca) the eligible business relocates out of the Province unless it would otherwise continue to qualify for registration;

(cb) the eligible business sells assets whose original book value of purchase when deducted from the total book value of the assets of the eligible business impinges on the capital raised under this Act;

(3) Where an eligible business has repurchased shares in a transaction not permitted by this Act or the regulations, the eligible business shall withhold the amount of the credit and remit it along with details of the transaction to the Minister.

(4) Where an eligible business has repurchased shares in a transaction not permitted by this Act or the regulations in the event of a conversion of a registered retirement savings plan to a registered retirement investment fund or annuity, the eligible business shall withhold a monthly prorated amount of the credit and remit it to the Minister.

(b) in the case of a corporation, that the corporation has authorized capital consisting of at least one class of voting equity shares;

(1) Twenty per cent of the amount invested in eligible investments of a community economic-development corporation shall be guaranteed by the Province if the following conditions are met:

(a) annual reports as required under Section 20 are filed in a timely fashion;

(b) the investment requirements of the regulations are complied with; and

(c) the community economic-development corporation is in compliance with this Act and the regulations.

(3) A person who disposes of a share in respect of which a tax credit has been allowed after eight years from the date of purchase shall not receive a tax credit on a subsequent purchase of substantially the same shares.

(a) a labour-sponsored venture-capital corporation shall file annually and for eight years after its final sale of shares in the Province;

(b) a community economic-development corporation shall file annually and for four years after its final sale of shares under this Act; and

(c) any other entity registered pursuant to this Act shall file as requested by the Minister,

a return with the Minister setting out the information prescribed by the regulations.

(3) Where

(a) pursuant to the Operating Contract dated May 31, 1995, and approved by Order in Council 1995-420, the Operator under the Contract notifies the Corporation that an Operator Termination Event under the Contract has occurred; and

(b) in the opinion of the Governor in Council, a by-law made pursuant to the Municipal Government Act, whether the by-law is made before or after the coming into force of this subsection, affects the Operator with respect to the Contract,

the by-law does not apply to the Operator or a Casino Complex under the Contract to the extent that the Governor in Council determines.

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

19A (1) In this Section,

(a) "benefit year" means the 2003 calendar year;

(b) "eligible individual" means an individual other than a trust.

(2) An eligible individual is deemed to have made an overpayment on account of the tax payable by the individual under this Act for the taxation year ending in or at the same time as the benefit year if the following conditions are satisfied:

(a) the individual files a return of income, other than a return of income filed under paragraph 128(2)(e) of the Federal Act, for the taxation year ending on the last day of 2001, 2002 or 2003 no later than twelve months after the end of the respective taxation year;

(b) the Minister of Finance assesses an amount of tax payable under this Act on or before December 31st of the immediately following taxation year;

(c) the individual is resident in the Province as at May 1, 2003, if the eligibility determination is made in June 2003, and for eligibility determinations made in months subsequent to June 2003, the individual is resident in the Province at the beginning of that month; and

(d) the amount of tax payable by the individual for the taxation year, as determined on assessment or reassessment by the Minister of Finance, is equal to or greater than $1.00.

(3) Subject to subsection (4), the amount of the deemed overpayment for the benefit year is $155 and that overpayment is deemed to have an effective date that is the day of the month in which the individual's eligibility is determined.

(4) An individual who filed a return of income for the 2001, 2002 or 2003 calendar year is not entitled to the deemed overpayment referred to in subsection (3) if

(a) for the 2001 taxation year a return was filed and assessed for any taxation year pursuant to subsection 70(1) of the Federal Act before January 1, 2003;

(b) for the 2002 taxation year a return was filed and assessed for any taxation year pursuant to subsection 70(1) of the Federal Act before January 1, 2004; or

(c) for the 2003 taxation year a return was filed and assessed for any taxation year pursuant to subsection 70(1) of the Federal Act before January 1, 2005.

(5) An individual who would be eligible for a refund with respect to a return of income filed and assessed for either the 2001, 2002 or 2003 taxation year but who has since died and for whom a return of income pursuant to subsection 70(1) of the Federal Act has not been filed or assessed is deemed to be resident in the Province as at May 1, 2003.

(6) The Minister of Finance shall determine, without an application by an individual, whether the individual is an eligible individual for the benefit year.

(7) After making a determination under subsection (6), the Minister of Finance shall pay a refund to the individual in the amount of the deemed overpayment.

(8) The Minister of Finance shall not pay a refund under this Section after January 15, 2005.

(9) Where an individual receives a refund under this Section to which the individual is not entitled, the individual shall repay the amount to the Minister of Finance.

(10) No amount is repayable under subsection (9) if the individual's entitlement to a refund or the amount of the individual's refund is reduced by reason of an assessment or reassessment of tax issued

(a) with respect to the 2001 taxation year, after December 31, 2002;

(b) with respect to the 2002 taxation year, after December 31, 2003; or

(c) with respect to the 2003 taxation year, after December 31, 2004.

(11) An amount payable under subsection (9), that has not been paid to the Minister of Finance,

(a) constitutes a debt to Her Majesty in right of the Province and may be recovered by way of deduction or set-off or may be recovered in any court of competent jurisdiction in proceedings commenced at any time or by any other manner provided by this Act; and

(b) is deemed for the purpose of Sections 81 to 106 to be tax payable under this Act.

(12) For the purpose of section 164 of the Federal Act as it applies for the purpose of this Act, a refund paid under this Section is deemed to be a refund of tax under this Act.

(13) Notwithstanding subsection (12), no interest is payable on the amount of a refund under this Section or on an amount repayable under subsection (9).

(14) An individual is not entitled to the deemed overpayment pursuant to this Section where the Minister has made an assessment pursuant to subsection 152(7) of the Federal Act.

(15) A decision of the Minister of Finance pursuant to this Section is final and not subject to appeal.

(16) For greater certainty, a taxpayer is only entitled to one payment pursuant to subsection (3).

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

(a) the amount, if any, by which any non-business-income tax paid by the individual for the year to the government of such other country exceeds

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

is of

(2) For the purpose of subsection (1) and clause 43(b), the non-business-income tax paid by a taxpayer to the government of a country other than Canada in respect of the taxpayer's income for a taxation year is the non-business-income tax paid by the taxpayer to the government of that country in respect of that year as determined under the definition "non-business-income tax" in subsection 126(7) of the Federal Act.

(3) For the purpose of this Section and Section 43,

(a) the government of a country other than Canada includes the government of a state, province or other political subdivision of that country;

(b) where a taxpayer's income for a taxation year is in whole or in part from sources in more than one country other than Canada, subsection 34(1) and Section 43 shall be read as providing for separate deductions in respect of each of the countries other than Canada; and

(c) if any income from a source in a particular country would be tax-exempt income but for the fact that a portion of the income is subject to an income or profits tax imposed by the government of a country other than Canada, the portion is deemed to be income from a separate source in the particular country.

(4) For the purpose of this Section and Section 43, the definitions of "qualifying incomes", "qualifying losses" and "tax-exempt income" in subsection 126(7) of the Federal Act apply.

(b) $15,000.

(15) Subsections (11) to (13) and (16) to (19) do not apply to a corporation or a partnership, in this subsection referred to as the "transferor", that disposes of a property to another person or a partnership, in this subsection and subsections (16) to (19), referred to as the "purchaser", that does not deal at arm's length with the transferor, if the purchaser acquired the property in circumstances described under subsection 127(33) of the Federal Act.

(16) Where, at any particular time in a taxation year and after March 31, 2002, a purchaser, other than a partnership, converts to commercial use, or disposes of without having previously converted to commercial use, a property

(a) that was acquired by the purchaser in circumstances described in subsection (15) or that is another property that incorporates a property acquired in such circumstances; and

(b) that was first acquired, or that incorporates a property that was first acquired, by a corporation, in this subsection referred to as the "original user", with which the purchaser did not deal at arm's length at the time at which the purchaser acquired the property, in the original user's taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user's four preceding taxation years or fiscal periods,

there shall be added to the purchaser's tax otherwise payable under this Part for the year the lesser of

(c) the amount included, in respect of the property, in the research and development tax credit of the original user; and

(d) the amount determined by applying the percentage that was applied in computing the research and development tax credit referred to in clause (c) by the corporation that was the original user, to

(17) Where, at any particular time in a taxation year and after March 31, 2002, a purchaser, other than a partnership, converts to commercial use, or disposes of without having previously converted to commercial use, a property

(a) that was acquired by the purchaser in circumstances described in subsection (15) or that is another property that incorporates a property acquired in such circumstances; and

(b) that was first acquired, or that incorporates a property that was first acquired, by a partnership, in this subsection referred to as the "original user", with which the purchaser did not deal at arm's length at the time at which the purchaser acquired the property, in the original user's taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user's four preceding taxation years or fiscal periods,

there shall be added to the purchaser's tax otherwise payable under this Part for the year the lesser of

(c) the amount that can reasonably be considered to have been included in respect of the property in computing the research and development tax credit under subsection (8) in respect of all the corporations that were members of the original user; and

(d) the amount determined by applying the percentage that was applied in computing the research and development tax credit referred to in clause (c), times the proportion of that research and development tax credit that was utilized by the corporations that were members of the original user was of the total research and development tax credit calculated as if the original user was a corporation, to

(18) Where, at any particular time in a taxation year and after March 31, 2002, a purchaser is a partnership that converts to commercial use, or disposes of without having previously converted to commercial use, a property

(a) that was acquired by the purchaser in circumstances described in subsection (15) or that is another property that incorporates a property acquired in such circumstances; and

(b) that was first acquired, or that incorporates a property that was first acquired, by a corporation, in this subsection referred to as the "original user", with which the purchaser did not deal at arm's length at the time at which the purchaser acquired the property, in the original user's taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user's four preceding taxation years or fiscal periods,

there shall be added to the tax otherwise payable under this Part for the year, for each member of the partnership that is the purchaser, the portion that may reasonably be considered to be the partner's share of the lesser of

(c) the amount included, in respect of the property, in the research and development tax credit of the original user; and

(d) the amount determined by applying the percentage that was applied in computing the research and development tax credit referred to in clause (c) to

(19) Where, at any particular time in a taxation year and after March 31, 2002, a purchaser is a partnership that converts to commercial use, or disposes of without having previously converted to commercial use, a property

(a) that was acquired by the purchaser in circumstances described in subsection (15) or that is another property that incorporates a property acquired in such circumstances; and

(b) that was first acquired, or that incorporates a property that was first acquired, by a partnership, in this subsection referred to as the "original user", with which the purchaser did not deal at arm's length at the time at which the purchaser acquired the property, in the original user's taxation year or fiscal period that includes the particular time, on the assumption that the original user had such a taxation year or fiscal period, or in any of the original user's four preceding taxation years or fiscal periods,

there shall be added to the tax otherwise payable under this Part for the year, for each member of the partnership that is the purchaser, the portion that may reasonably considered to be the partner's share of the lesser of

(c) the amount that can reasonably be considered to have been included in respect of the property in computing the research and development tax credit under subsection (8) in respect of all the corporations that were members of the original user; and

(d) the amount determined by applying the percentage that was applied in computing the research and development tax credit referred to in clause (c), times the proportion of that research and development tax credit that was utilized by the corporations that were members of the original user was of the total research and development tax credit calculated as if the original user was a corporation, to

17K The Public Service Commission may provide such direction as it considers appropriate to the Workers' Compensation Board of Nova Scotia respecting

(a) collective bargaining by the Board; and

(b) the setting of general compensation levels for non-bargaining unit employees of the Board.

(1) A consumer or purchaser who contravenes Part I of this Act is liable, on summary conviction, to the penalties provided for a category G offence in the Summary Proceedings Act or to imprisonment for a term not exceeding ninety days for a first offence or a term not exceeding one year for a second or subsequent offence, or to both fine and imprisonment.

(2) An agent, wholesaler or vendor who contravenes Part I of this Act is liable, on summary conviction, to

(a) the penalties provided for a category J offence in the Summary Proceedings Act or to imprisonment for a term not exceeding six months for a first offence or a term not exceeding one year for a second or subsequent offence, or to both fine and imprisonment; and

(b) a fine equal to two times the amount of tax that should have been collected, remitted or paid, as determined pursuant to this Act.

(2A) A person who sells gasoline or diesel oil to a vendor or a purchaser without holding the permit required for the sale under the regulations is liable, on summary conviction, to

(a) the penalties provided for a category J offence in the Summary Proceedings Act or to imprisonment for a term not exceeding one year, or to both fine and imprisonment; and

(b) a fine equal to two times the amount of tax that should have been collected, remitted or paid, as determined pursuant to this Act.

(j) where an enactment makes an offence punishable as a category J offence, a judge shall impose a fine of not less than one thousand five hundred dollars for the first offence, not less than two thousand five hundred dollars for the second offence and not less than five thousand dollars for the third or a subsequent offence.