BILL NO. 177

(4) The financial year of every agricultural society shall end on the thirty-first day of October in each year unless otherwise prescribed by by-law.

(iv) in any other case, the issue of shares, as defined in subclause (i) of clause (h), to the number of eligible investors, prescribed by regulation, specified in the application for registration of the corporation to an eligible investor at any time between the date of registration and the date of expiration of the certificate of registration.

(1) The Minister may, at any time after a certificate of registration has been issued,

(a) monetarily penalize a labour-sponsored venture-capital corporation;

(b) charge a refundable penalty to a labour-sponsored venture-capital corporation;

(c) restrict the sales of a labour-sponsored venture-capital corporation for such time and on such conditions as the Minister determines; or

(d) revoke the certificate of registration of a labour-sponsored venture-capital corporation,

if, in the opinion of the Minister, the registered labour-sponsored venture-capital corporation has not complied with this Act or the regulations or the spirit and intent of this Act and the regulations, or has caused any transaction or event prescribed by regulation to occur.

(1A) The Governor in Council may determine the maximum penalties that may be imposed pursuant to clause (a) or (b) of subsection (1).

25 The Minister may extend, with or without conditions, the date of expiration of the certificate of registration of a specified issue or the time limits for meeting the investment requirements of the regulations and may grant an extension notwithstanding that the time limit to be extended has expired.

12A (1) For the purpose of computing the tax payable under this Part for a taxation year by an individual there may be deducted in respect of each child of the individual who has not attained the age of eighteen years before the end of the year an amount determined by the formula

A x B

where

A is the appropriate percentage for the year;

B is the lesser of

(a) $150; and

(b) the total of all amounts paid by the individual or by the individual's spouse or common-law partner, for the registration of the child in a designated sport or recreational activity.

(2) Where more than one individual is entitled to a deduction under subsection (1) in respect of the same child,

(a) the total of all amounts so deductible for the year shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that child if that individual were the only individual entitled to deduct an amount for the year because of that subsection for the child; and

(b) if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.

(3) The extended meaning of "child" in subsection 252(1) of the Federal Act applies for the purpose of this Section.

(4) The Governor in Council may make regulations designating sport or recreational activities for the purpose of this Section.

(3) Notwithstanding subsection (1) and (2), for the purpose of computing the tax payable under this Part for a taxation year by an individual who is entitled to a deduction under subsection 118.3(2) of the Federal Act for the taxation year in respect of a person referred to in that subsection there may be deducted the amount, if any, by which

(a) the amount deductible under subsection (1) in computing that person's tax payable under this Part for the taxation year, or that would be so deductible if the person were liable under Section 5 to pay tax for the taxation year,

exceeds

(b) the amount of that person's tax payable under this Part for the taxation year if the person were liable under Section 5 to pay tax for the taxation year, computed before any deductions under this Division other than deductions referred to in Sections 10 and 18.

16 (1) For the purpose of computing an individual's tax payable under this Part for a taxation year, there may be deducted the lesser of

(a) the individual's unused tuition and education credits at the end of the preceding taxation year; and

(b) the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this Section and any of Sections 10, 12A, 13 and 18.

(2) An individual's unused tuition and education tax credits at the end of a taxation year is the amount determined by the formula

A + (B - C) - (D + E)

where

A is the individual's unused tuition and education credits at the end of the preceding taxation year;

B is the total of all amounts each of which may be deducted under Sections 14 and 15 in computing the individual's tax payable under this Part for the year;

C is the lesser of the value of B and the amount that would be the individual's tax payable under this Part for the year if no amount were deductible under this Part, other than an amount deductible under this Section and any of Sections 10, 12A, 13 and 18;

D is the amount that the individual may deduct under subsection (1) for the year; and

E is the tuition and education tax credits transferred for the year by the individual to the individual's spouse, common-law partner, parent or grandparent.

(3) For the purpose of determining the amount that may be deducted under subsection (1) for a taxation year that begins after 2003 by an individual who was not resident in the Province on the last day of the preceding taxation year, the individual's unused tuition and education tax credits at the end of the preceding taxation year is equal to the amount that would be the individual's unused tuition and education tax credits at the end of the preceding taxation year as determined under section 118.61 of the Federal Act if the percentage applied under sections 118.5 and 118.6 of the Federal Act had been the appropriate percentage for the year instead of the appropriate percentage as defined in the Federal Act.

(4) For the purpose of subsection (3), the amounts mentioned in that subsection may be used only to the extent that they have not been used in claiming a credit pursuant to section 118.5, 118.6 or 118.61 of the Federal Act, or in determining credits transferred pursuant to section 118.81 of the Federal Act, for any taxation year.

(5) For the purpose of determining the amount that may be deducted under subsection (1) for a taxation year that begins after 2003, the unused tuition and education tax credits of an individual who resided in the Province at the end of the 2003 taxation year is equal to 8.79 / 9.77 of the amount that would be the individual's unused tuition and education tax credits at the end of the 2003 taxation year if this Section were read without reference to this subsection.

19 (1) For the purpose of computing the tax payable under this Part for a taxation year by an individual who, at any time in the year, is a married person or a person who is in a common-law partnership, other than an individual who, by reason of a breakdown of the individual's marriage or common-law partnership, is living separate and apart from the individual's spouse or common-law partner at the end of the year and for a period of ninety days commencing in the year, there may be deducted an amount determined by the formula

A + B - C

where

A is the tuition and education tax credits transferred for the year by the spouse or common-law partner to the individual;

B is the total of all amounts each of which is deductible under subsections 10(2) and (3) and Section 13 in computing the spouse's or common-law partner's tax payable under this Part for the year, or that would be so deductible if the spouse or common-law partner were liable under Section 5 to pay tax for the year; and

C is the amount, if any, by which

(a) the amount that would be the spouse's or common-law partner's tax payable under this Part for the year, or that would be so payable if the spouse or common-law partner were liable under Section 5 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under clause 10(1)(c) and Sections 12A, 16 and 18,

exceeds

(b) the lesser of

(2) Where for a taxation year a parent or grandparent of an individual, other than an individual in respect of whom the individual's spouse of common-law partner deducts an amount for the year under clause 10(1)(a) or subsection 19(1) of this Act, section 118 or 118.8 of the Federal Act or similar provisions of an income tax statute of another province of Canada, is the only person designated in writing by the individual for the year for the purpose of this subsection, and no other person is designated for the year for the purpose of section 118.9 of the Federal Act, or similar provision of an income tax statute of another province of Canada, there may be deducted in computing the tax payable under this Part for the year by the parent or grandparent, as the case may be, the tuition and education tax credits transferred for the year by the individual to the parent or grandparent, as the case may be.

(3) In this Section, the tuition and education tax credits transferred for a tuition year by a person to an individual is the lesser of

(a) the amount determined by the formula

A - B

where

A is the lesser of

B is the amount that would be the person's tax payable under this Part for the year, or that would be so payable if the person were liable under Section 5 to pay tax for the year, if no amount were deductible under this Part, other than an amount deductible under Sections 10, 12A, 13, 16 and 18; and

(b) the amount for the year that the person designates in writing for the purpose of subsection (1) or (2).

21 For the purpose of computing the tax payable under this Part for a taxation year by an individual who was resident in the Province on the last day of the taxation year, there may be deducted an amount equal to 38.5% of any amount required by paragraph 82(1)(b) of the Federal Act to be included in computing the individual's income for the year.

32A Where an individual resided in the Province on the last day of a taxation year but had income earned in the taxation year outside the Province, the individual may deduct from the amount of tax otherwise payable for the taxation year as determined under Section 32 an amount determined by the formula

A x B / C

where

A is the total of all amounts each of which is deductible under subsection 10(3) and Sections 21 or 22 by the individual for the taxation year;

B is the individual's income earned in the taxation year outside the Province; and

C is the individual's income for the year.

35 (1) In this Section,

(a) "adjusted income" of an individual for a taxation year means the total of all amounts each of which would be the income for the year of

if no amount were included in respect of a gain from a disposition of property to which section 79 of the Federal Act applies in computing that income;

(b) "eligible individual" for a taxation year means an individual, other than a trust, who is resident in the Province on December 31st of that year, and is

(c) "qualified dependant" of an individual for a taxation year means a person who is

and who is not

(d) "qualified relation" of an individual for a taxation year means the person who, at the end of the year, is the individual's cohabiting spouse or common-law partner, within the meaning assigned by section 122.6 of the Federal Act.

(2) For the purpose of this Section, the income of a person who is non-resident at any time in a taxation year is deemed to be equal to the amount that would, if the person were resident in Canada throughout the year, be the person's income for the year.

(3) Notwithstanding subsection (1), a person is deemed not to be an eligible individual for a taxation year or a qualified relation or qualified dependant of an individual for a taxation year where the person

(a) is, at the end of the year, a person described in paragraph 149(1)(a) or (b) of the Federal Act; or

(b) is, at the end of the year, confined to a prison or similar institution and has been so confined for a period of, or periods the total of which in the year was more than, six months.

(4) Subject to subsection (5), where an eligible individual for a taxation year files with the individual's return of income under this Act for the year a prescribed form, containing prescribed information, the amount, if any, by which the total of

(a) $300;

(b) $300 for a person who is the qualified relation of the individual for the year;

(c) $300, where the individual has no qualified relation for the year and is entitled to deduct an amount for the year under subsection 118(1) of the Federal Act by reason of paragraph (b) thereof in respect of a qualified dependant of the individual for the year; and

(d) the product obtained when $165 is multiplied by the number of qualified dependants of the individual for the year, other than a qualified dependant in respect of whom an amount is included by reason of clause (c) in computing an amount deemed to be paid pursuant to this subsection for the year,

exceeds

(e) 5% of the amount, if any, by which

exceeds

may be deducted from tax otherwise payable under this Act for a taxation year.

(5) Notwithstanding subsection (4), where an individual is a qualified relation of another individual for a taxation year, only one of those individuals may apply under subsection (4) for the year.

(6) The Governor in Council may make regulations adjusting annually the dollar amounts set out in subsection (4).

(6) For greater certainty, subsection 9(2) of the Equity Tax Credit Act applies for the purpose of this Section.

(5) For greater certainty, subsection 18A(2) of the Equity Tax Credit Act applies for the purpose of this Section.

(1) Where an amount is to be refunded to a trust in respect of a taxation year pursuant to section 132 of the Federal Act, the Minister shall, subject to subsection (2), at such time and in such manner as is provided in that section, refund to the trust an amount, in this Section referred to as its "capital gains refund" for the year, equal to the amount obtained by multiplying the provincial percentage for the year times the amount of the refund for the year calculated under subsection 132(1) of the Federal Act.

(4) For the purpose of subsection (2), where a corporation is a member of a partnership, the amount determined pursuant to paragraph 125(1)(a) of the Federal Act, in relation to a corporation for each taxation year, shall be the amount that would be the corporation's specified partnership income within the meaning of subsection 125(7) of the Federal Act if the amounts expressed in dollars in the description of "M" in the definition of "specified partnership income" in that subsection were read as

(a) for the first amount, "$350,000" and, for the second amount, "$959" for the period commencing on April 1, 2005, and ending on March 31, 2006; and

(b) for the first amount, "$400,000" and, for the second amount, "$1,096" for the period commencing on April 1, 2006.

(5) The business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purpose of subsection (2) to be $350,000 for the period commencing on April 1, 2005.

(6) Notwithstanding subsection (5), the business limit otherwise determined under section 125 of the Federal Act shall be deemed for the purpose of subsection (2) to be $400,000 for the period commencing on April 1, 2006.

(20) A qualifying corporation that wishes to claim a tax credit under this Part in respect of a taxation year must file, with the return of income filed by the corporation under Section 51 for that taxation year, an application for the tax credit in the form, and containing the information, required by the Commissioner of Customs and Revenue.

(21) A qualifying corporation is not entitled to a tax credit under this Part in relation to its eligible expenditure in a taxation year unless, within eighteen months after the end of the taxation year, the corporation files the form containing the information required under subsection (20).

(2) Where the corporation meets the prescribed criteria, there may be deducted from tax otherwise payable by the corporation an amount equal to the lesser of

(a) the sum of

(b) 16.25% of the total production costs of the eligible film in the case of subclause (a)(i), 17.5% in the case of paragraph (a)(ii)(A), 20% in the case of paragraph (a)(ii)(B) or 15% in the case of subclause (a)(iii) incurred after April 10, 2000, and before January 1, 2005 and 17.5% after December 31, 2004, and before 2016.

(2A) A corporation may be eligible for an additional frequent filmer credit of 5% of the eligible salaries of an eligible film if

(a) the principal photography for the film commenced on or after January 1, 2005;

(b) the date of commencement of principal photography is preceded by the commencement of the principal photography for two other eligible films within the seven hundred and thirty days prior to the date referred to in clause (a);

(c) the principal photography is completed before 2016;

(d) the principal owner for each of the three films is the same person or group of persons; and

(e) the film satisfies the eligibility criteria prescribed by regulation.

(1) Every corporation, other than a corporation described in paragraphs (a) or (c) in the definition of "financial institution" in subsection 181(1) or subsection 181.1(3) of the Federal Act, that has a permanent establishment in the Province in a taxation year ending after March 31, 1997, shall pay a tax under this Part for the taxation year equal to

(a) where the aggregate of the corporation's taxable capital for the year, as determined under subsection (4), and the taxable capital for the year of all related corporations is less than ten million dollars

(b) where the aggregate of the corporation's taxable capital for the year, as determined under subsection (4), and the taxable capital for the year of all related corporations is ten million dollars or more

(2) Subsection 71(7) of Chapter 217, as enacted by Chapter 4 of the Acts of 2000 and amended by Chapter 5 of the Acts of 2002 and Chapter 4 of the Acts of 2003, is further amended by

(a) striking out "March 31, 2006" in the third line and substituting "June 30, 2009"; and

(b) striking out "April 1, 2006" in the sixth line and substituting "July 1, 2009".

80A (1) In this Section,

(a) "avoidance transaction" means a transaction

but does not include a transaction that may reasonably be considered

(b) "bona fide purposes" does not include transactions undertaken or arranged primarily for one or more of the following:

(c) "tax benefit" means

(d) "tax consequences" to a person means

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

(2) Where a transaction is an avoidance transaction, the tax consequences to a person must be determined in a manner that is reasonable in the circumstances in order to deny a tax benefit that, but for this Section, would result, directly or indirectly, from that transaction or from a series of transactions that includes that transaction.

(3) Without limiting subsection (2),

(a) any amount deducted in computing an amount referred to in the definition of "tax consequences" in subsection (1) may be allowed or disallowed in whole or in part;

(b) any deduction referred to in clause (a) or any other amount used in determining an amount payable or refundable under this Act may be allocated to any person;

(c) the nature of any payment or other amount may be recharacterized; and

(d) the tax effects that would otherwise result from the application of other provisions of this Act may be ignored,

62A (1) The Public Debt Management Fund is hereby established for the purchase or sale of securities of the Province by the Minister for the sound and efficient management of the public debt.

(2) The Governor in Council may from time to time, direct the Minister to

(a) pay into the Public Debt Management Fund such sum or sums as the Governor in Council may deem necessary;

(b) pay out of the Public Debt Management Fund such sum or sums as the Governor in Council deems necessary to pay or retire debentures, securities or other debt instruments of the Province.

(3) All extraordinary revenues that accrue to the Province in any fiscal year must be paid into the Public Debt Management Fund.

(4) In this Section, "extraordinary revenue" means revenue that is not typical for a government reporting entity, not included in the annual budget of the Province or would not normally be expected to become a typical revenue source and that is designated as extraordinary revenue by the Minister.

76A (1) The annual revenue, in an amount not to exceed that as set out for each year below, which would otherwise be recognized under generally accepted accounting principles with respect to the receipt of an offset payment in each year, as a result of an arrangement between the Government of Canada and the Province on offshore revenues, shall not be recognized for the purposes of Sections 76, 77 and 78:

(a) fiscal year 2005-2006 - fifty-seven million one hundred thousand dollars;

(b) fiscal year 2006-2007 - ninety-three million dollars;

(c) fiscal year 2007-2008 - one hundred eighty-nine million dollars;

(d) fiscal year 2008-2009 - two hundred seven million dollars;

(e) fiscal year 2009-2010 - one hundred fifty-one million dollars;

(f) fiscal year 2010-2011 - ninety-two million dollars.

(2) The annual revenue, in an amount equal to no more than eight hundred thirty million dollars less the sum of all annual revenues not recognized under subsection (1), which would be otherwise recognized in the fiscal year 2011-2012 under generally accepted accounting principles with respect to the receipt of an offset payment as a result of an arrangement between the Government of Canada and the Province on offshore revenues shall not be recognized for the purposes of Sections 76, 77 and 78 .