BILL NO. 46

(as amended)

1st Session, 58th General Assembly
Nova Scotia
49 Elizabeth II, 2000

Government Bill

Financial Measures (2000) Act

CHAPTER 4 OF THE ACTS OF 2000

The Honourable Neil J. LeBlanc
Minister of Finance

First Reading: April 18, 2000

Second Reading: May 16, 2000

Third Reading: June 8, 2000 (WITH COMMITTEE AMENDMENTS)

Royal Assent: June 8, 2000

An Act Respecting
Certain Financial Measures

Be it enacted by the Governor and Assembly as follows:

1 This Act may be cited as the Financial Measures (2000) Act.

PART I

ALCOHOL AND GAMING AUTHORITY

2 (1) The appointments of the Chair, Vice-chair and all other members of the Alcohol and Gaming Authority are revoked effective April 12, 2000.

(2) No further appointments of a Chair, Vice-chair or other members of the Authority may be made.

3 (1) Notwithstanding any enactment, all contracts, agreements and orders relating to or fixing the amount of compensation, remuneration, fees, entitlements or benefits, including pension benefits, to the Chair, Vice-chair or other members of the Alcohol and Gaming Authority, are null and void on or after April 12, 2000.

(2) Notwithstanding the Interpretation Act and any other enactment or any contract, agreement or order, the Chair, Vice-chair and other members of the Authority have no right to compensation for the loss of their offices or the emoluments of those offices and no compensation, remuneration or fees shall be paid to any of them on or after April 12, 2000.

(3) Notwithstanding subsections (1) and (2), the Chair is entitled to such compensation as management and excluded employees with the same length of service and the same termination date are entitled to under regulations made pursuant to the Civil Service Act from time to time.

(4) Notwithstanding subsections (1), (2) and (3), the Chair is entitled to such superannuation allowance as is provided for pursuant to the Public Service Superannuation Act.

(5) For the purpose of determining the entitlements referred to in subsections (3) and (4), the date of termination of the Chair's employment is April 12, 2000.

PART II

ASSESSMENT ACT

4 Subsections 43A(4) to (6) of Chapter 23 of the Revised Statutes, 1989, the Assessment Act, are repealed and the following subsection substituted:

(4) A municipality may, by resolution, provide that machinery and equipment is not taxable property.

PART III

CORRECTIONS ACT

5 Subparagraph 27(7) of Schedule A of Chapter 103 of the Revised Statutes, 1989, the Corrections Act, is repealed and the following subparagraph substituted:

(7) The Union shall pay the fees and expenses of the member appointed to the arbitration board by or on behalf of the Union, the Employer shall pay the fees and expenses of the member appointed to the arbitration board by or on behalf of the Employer, and the Union and the Employer shall each pay one half of the fees of, and expenses incurred by, the chairman of the arbitration board.

6 Subparagraph 31(7) of Schedule A of Chapter 103 is repealed and the following subparagraphs substituted:

(7) The Union and the Employer shall each pay one half of the fees of, and the expenses incurred by, a single adjudicator.

(8) The Union shall pay the fees and expenses of the member appointed to the adjudication board by the Union, the Employer shall pay the fees and expenses of the member appointed to the adjudication board by the Employer and the Union, and the Employer shall each pay one half of the fees of, and expenses incurred by, the chairman of the adjudication board.

(9) A copy of the decision shall be filed with the Minister of Labour by the single adjudicator or by the chairman of the adjudication board, as the case may be.

PART IV

EMERGENCY "911" ACT

7 Subsection 14(1) of Chapter 4 of the Acts of 1992, the Emergency "911" Act, is amended by adding immediately after clause (e) the following clause:

(ea) respecting any matter necessary or advisable for the establishment of fees to recover costs for any services or materials provided in the course of the administration of this Act or the regulations;

PART V

EQUITY TAX CREDIT ACT

8 Section 2 of Chapter 3 of the Acts of 1993, the Equity Tax Credit Act, as amended by Chapter 2 of the Acts of 1995 and Chapter 3 of the Acts of 1997, is further amended by

(a) striking out "in the case of a corporation or a community economic-development corporation" in the first and second lines of subclause (h)(i) and substituting "in the case of a community economic-development corporation, fully paid, newly issued voting common shares of the community economic-development corporation issued on or before the thirty-first day of December, 2003, and, in the case of any other corporation"; and

(b) striking out clause (j) and substituting the following clause:

(j) "replacement share" means a share issued as part of a specified issue where the purchaser has, at any time between the thirtieth day of September, 1993, and, in the case of a community economic-development corporation, the thirty-first day of December, 2003, and, in any other case, the thirty-first day of December 2001, disposed of a share of any class of the eligible business;

9 Clause 6(1)(a) of Chapter 3 is repealed and the following clauses substituted:

(a) where the eligible business is a community economic-development corporation, the eligible business has issued shares of the same or substantially the same class as the shares issued as part of the specified issue, at any time after the thirtieth day of September, 1993, and before the thirty-first day of December, 2003, to an individual for an unreasonably low cost per right to vote such that the eligible investor is unable to exercise any real influence in the management of the corporation;

(aa) where the eligible business is a business other than a community economic-development corporation, the eligible business has issued shares of the same or substantially the same class as the shares issued as part of the specified issue, at any time after the thirtieth day of September, 1993, and before the thirty-first day of December, 2001, to an individual for an unreasonably low cost per right to vote such that the eligible investor is unable to exercise any real influence in the management of the corporation;

10 Section 7 of Chapter 3, as amended by Chapter 2 of the Acts of 1995, is further amended by striking out "13A" in the third line and substituting "37".

11 (1) Subsection 8(1) of Chapter 3, as amended by Chapter 2 of the Acts of 1995, is further amended by striking out "13A" in the sixth line and substituting "37".

(2) Subclause 8(3)(b)(i) of Chapter 3 is amended by striking out "13A" in the fourth line and substituting "37".

12 Subsection 13A(2) of Chapter 3 is repealed and the following subsection substituted:

(2) The Governor in Council may make regulations prescribing the method of guaranteeing eligible investments, prescribing eligible geographic areas of the Province in which a guarantee may be given, including the terms and conditions pursuant to which the Minister may exempt from or include areas of the Province in a prescribed eligible geographic area and determining the duration of any guarantee given.

13 (1) Subsection 18(1) of Chapter 3, as amended by Chapter 5 of the Acts of 1996, is further amended by striking out "13B" in the sixth line and substituting "38".

(2) Subclause 18(3)(b)(i) of Chapter 3 is amended by striking out "13B" in the fourth line and substituting "38".

PART VI

EXPENDITURE CONTROL ACT

14 Chapter 4 of the Acts of 1993, the Expenditure Control Act, is repealed.

PART VII

HALIFAX-DARTMOUTH PORT DEVELOPMENT

COMMISSION ACT

15 Clause 2(b) of Chapter 193 of the Revised Statutes, 1989, the Halifax-Dartmouth Port Development Commission Act, is repealed and the following clause substituted:

(b) "Minister" means the Minister of Economic Development;

16 Subsection 6(5) of Chapter 193 is repealed.

17 Section 7 of Chapter 193 is repealed and the following Section substituted:

7 (1) The Commission shall provide the Minister with a proposed budget for its 2000-2001 fiscal year, which proposed budget shall set out the expenditures the Commission estimates will be necessary in order to effect a wind up of the operations of the Commission and the transfer of such assets and liabilities of the Commission as is necessary to effect the wind up.

(2) The Minister may approve the budget of the Commission as described in subsection (1).

(3) Where the Minister has approved the budget, the Province and the Halifax Regional Municipality shall contribute to the Commission the total budget approved by the Minister in the same proportion to each other as in previous fiscal years.

(4) Any deficit or surplus in the contributions required for the winding up of the Commission shall be shared by the Province and the Halifax Regional Municipality in the same proportions as provided in subsection (3).

18 Chapter 193 is repealed.

19 Notwithstanding the Interpretation Act and any other enactment or any contract, agreement or order, the chairman and other members of the Halifax-Dartmouth Port Development Commission have no right to compensation for the loss of their offices or the emoluments of those offices and no compensation, remuneration or fees shall be paid to any of them after the revocation of their appointments.

PART VIII

HOME OWNERSHIP SAVINGS PLAN

(NOVA SCOTIA) ACT

20 Subsection 18(4) of Chapter 6 of the Acts of 1989, the Home Ownership Savings Plan (Nova Scotia) Act, is repealed and the following subsection substituted:

(4) Except to the extent that it is at variance with anything contained in this Act, subsection (1) of Section 99 of the Income Tax Act applies with the necessary modifications for the purpose of this Act.

PART IX

INCOME TAX ACT

Technical Amendments to December 31, 1999

21 (1) Subsection 2(1) of Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, is repealed and the following subsection substituted:

(1) In this Act,

(a) "agreeing province" means a province of Canada that has entered into an agreement with the Government of Canada under which the Government of Canada will collect taxes payable under that province's income tax statute and will make payments to that province in respect of the taxes so collected;

(b) "collection agreement" means the agreement referred to in subsection (1) of Section 52;

(c) "Commissioner of Customs and Revenue" means the Commissioner of Customs and Revenue appointed under section 25 of the Canada Customs and Revenue Agency Act (Canada);

(d) "court" means the Supreme Court of Nova Scotia;

(e) "Department of Finance" means

(i) when no collection agreement is in effect, the Department of Finance of the Province, and

(ii) when a collection agreement is in effect,

(A) in relation to the remittance of an amount as or on account of tax payable under this Act, the Receiver General of Canada, and

(B) in relation to any other matter, the Canada Customs and Revenue Agency;

(f) "deputy head" means

(i) when no collection agreement is in effect, the Deputy Minister of Finance of the Province or permanent head of that portion of the public service of the Province administered by the Minister of Finance, or

(ii) when a collection agreement is in effect, the Commissioner of Customs and Revenue;

(g) "Federal Act" means the Income Tax Act (Canada), as amended from time to time;

(h) "Federal Regulations" means the regulations, as amended from time to time, made pursuant to the Federal Act;

(i) "income tax statute" means, with reference to an agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act;

(j) "Minister" means the Minister of National Revenue for Canada, but in any provision of the Federal Act that applies for the purpose of this Act, a reference to the Minister shall be read and construed for the purpose of this Act as a reference to the Minister of Finance;

(k) "Minister of Finance" means

(i) when no collection agreement is in effect, the Minister of Finance of the Province, and

(ii) when a collection agreement is in effect,

(A) in relation to the remittance of an amount as or on account of tax payable under this Act, the Receiver General of Canada, and

(B) in relation to any other matter, the Minister of National Revenue for Canada;

(l) "permanent establishment", where used for a purpose under this Act, has the same meaning as that assigned for that purpose, or the purpose that is most similar to that purpose, in the Federal Act or the Federal Regulations;

(m) "prescribed" means

(i) in the case of a form, the information to be given on a form or the manner of filing a form, authorized by the Minister or the Minister of Finance of the Province,

(ii) in the case of the manner of making or filing an election, authorized by the Minister or the Minister of Finance of the Province,

(iii) in the case where the word "prescribed" is mentioned in a provision of the Federal Act that applies for the purpose of this Act otherwise than in respect of a case to which subclauses (i) or (ii) apply, what is prescribed, within the meaning assigned by subsection 248(1) of the Federal Act in the Federal Regulations under that provision, and

(iv) in any other case where the word is mentioned in this Act, prescribed by regulations;

(n) "Receiver General of Canada" means the Receiver General of Canada, but in any provision of the Federal Act that applies for the purpose of this Act, a reference to the Receiver General of Canada shall be read and construed for the purpose of this Act as a reference to the Minister of Finance;

(o) "registrar" means prothonotary;

(p) "regulations" means a regulation made by the Governor in Council under this Act;

(q) "taxation year" of a person means the period determined under the Federal Act as the person's taxation year.

(2) Subsection 2(4) of Chapter 217 is repealed and the following subsection substituted:

(4) For the purpose of this Act, except where they are at variance with the definitions contained in this Section, the definitions and interpretations contained in, or made by regulations under, the Federal Act apply.

(3) Section 2 of Chapter 217 is further amended by adding immediately after subsection (6) the following subsection:

(6A) Subsections 104(1) and (2) of the Federal Act apply for the purpose of this Act.

(4) Subsection 2(7) of Chapter 217 is repealed and the following subsection substituted:

(7) Subsection 248(11) of the Federal Act applies for the purpose of this Act.

(5) Clause 2(8)(ga) of Chapter 217, as enacted by Chapter 5 of the Acts of 1999 (Second Session), is amended by adding "under" immediately before "this" in the last line.

(6) The table immediately following subsection 2(8) of Chapter 217 is amended by

(a) striking out "Department of National Revenue" and substituting "Canada Customs and Revenue Agency"; and

(b) striking out "Deputy Minister of National Revenue for Taxation" and substituting "Commissioner of Customs and Revenue".

22 Chapter 217 is further amended by adding immediately after Section 2 the following Section:

2A (1) In this Section,

(a) "federal amendment" means an amendment to a federal provision;

(b) "federal application rule" means a provision, in this clause referred to as "the provision" of an Act of the Parliament of Canada that makes a federal provision, a federal amendment or the repeal of a federal provision or federal amendment apply

(i) in respect of specified taxation years,

(ii) in respect of specified fiscal periods,

(iii) before or after a specified time,

(iv) in respect of transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods, or

(v) in respect of such other criteria as may be set out in the provision;

(2) Where a federal application rule governs the application of the federal provision or federal amendment, for the purpose of applying the federal provision or federal amendment for the purpose of this Act, the federal provision or federal amendment shall be applied in accordance with the federal application rule as though the Legislature had enacted that federal application rule to govern the application of the federal provision or federal amendment for the purpose of this Act.

(3) Where a federal provision or a federal amendment comes into force, or is deemed to come into force, at a particular time, and no federal application rule governs its application, the federal provision or federal amendment, as the case may be, is deemed, for the purpose of applying it for the purpose of this Act, to come into force at that particular time.

(4) Where a federal provision is repealed and another provision is not substituted for it, the federal provision ceases to apply for the purpose of this Act

(a) if the repeal is governed by a federal application rule, in accordance with that federal application rule; or

(b) if the repeal is not governed by a federal application rule, at the time the repeal comes into force or is deemed to come into force.

(5) For the purpose of this Act, where a particular federal provision is replaced by another federal provision or is repealed and another federal provision is substituted for it, the other federal provision is deemed to be a continuation of the particular federal provision and the replacing or the repeal and substitution, as the case may be, is deemed to be an amendment to the particular federal provision.

23 (1) Subsection 4(1) of Chapter 217 is amended by

(a) striking out clause (a) and substituting the following clause:

(a) "income earned in the taxation year in the Province" means income earned in the year in the Province as determined in accordance with Federal Regulations made for the purpose of the definition "income earned in the year in a province" in subsection 120(4) of the Federal Act;

and

(b) striking out clause (d) and substituting the following clause:

(d) "tax payable under the Federal Act" by an individual in respect of a taxation year means the amount determined under the definition "tax otherwise payable under this Part" in subsection 120(4) of the Federal Act in respect of the individual for a year.

(2) Subsection 4(4) of Chapter 217 is repealed.

(3) Subsection 4(6) of Chapter 217 is repealed.

(4) Subsections 4(8) and (9) of Chapter 217 are repealed and the following subsections substituted:

(8) For the purpose of subsection (7) and clause (b) of Section 8, 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 determined under the definition "non-business-income tax" in subsection 126(7) of the Federal Act.

(9) For the purpose of subsection (7), "tax payable" and "tax otherwise payable" by a taxpayer for a taxation year mean the amount that would, but for section 127.4 of the Federal Act, be the tax otherwise payable under this Act by the taxpayer for the taxation year.

24 Section 4A of Chapter 217 is repealed and the following Section substituted:

4A In addition to the income tax payable by an individual for the taxation year computed in accordance with Section 4, every individual shall pay a personal income surtax in respect of the 1990 and subsequent taxation years equal to 10% of the amount, if any, by which the tax computed pursuant to Section 4 for the taxation year exceeds ten thousand dollars, before any deductions authorized pursuant to subsection (7) of Section 4 or Sections 4B, 10, 11, 12 and 13A.

25 Subsection 4B(3) of Chapter 217 is repealed.

26 Section 5 of Chapter 217 is repealed and the following Section substituted:

5 (1) The tax payable by a corporation pursuant to this Act for a taxation year is 16% of the corporation's taxable income earned in the year in the Province.

(2) Notwithstanding subsection (1), if in a taxation year a corporation is eligible for a deduction under subsection 125(1) of the Federal Act, the tax payable by that corporation under this Act for that taxation year is equal to the amount determined by the formula

(A�B�C/D) + (E�(C_(B�C/D)))

where

(a) A is 5%;

(b) B is the least of the amounts determined pursuant to paragraphs 125(1)(a), (b) and (c) of the Federal Act in respect of the corporation for the taxation year;

(d) D is the corporation's taxable income earned in the year in a province; and

(e) E is 16%.

(3) For the purpose of this Section and Sections 7 and 8,

(a) "taxable income earned in the year in the Province of a corporation" means its taxable income earned in the year in the Province as determined in accordance with Federal Regulations made for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the Federal Act; and

(b) "taxable income earned in the year in a province" is the amount determined for the corporation for the taxation year for the purpose of the definition "taxable income earned in the year in a province" in subsection 124(4) of the Federal Act.

27 (1) Clause 6(1)(c) of Chapter 217 is repealed and the following clause substituted:

(c) "research and development tax credit" of a corporation at the end of a taxation year for expenditures made in a taxation year ending after December 31, 1993, means the amount that is the aggregate of

(i) an amount equal to 15% of the aggregate of all amounts each of which is an eligible expenditure made by it in the year, computed without reference to subsection 13(7.1) of the Federal Act, and

(ii) an amount equal to the aggregate of all amounts each of which is an amount required by subsection (3) or (5) to be included in computing its research and development tax credit at the end of the year;

(2) Subsection 6(2A) of Chapter 217 is repealed and the following subsection substituted:

(2A) The amount by which the research and development tax credit referred to in clause (c) of subsection (1) to which a corporation is entitled exceeds the corporation's tax payable pursuant to this Act for the taxation year, calculated without reference to this Section, may be applied by the Minister of Finance to pay any

(a) tax, interest or penalty owing by the corporation for that or any prior taxation year pursuant to this Act, the income statute of any agreeing province or the Federal Act;

(b) contribution, penalty or interest owing by the corporation for that or any prior taxation year as a result of payments required from the corporation pursuant to the Canada Pension Plan Act (Canada);

(c) premium, interest or penalty owing by the corporation for that or any prior taxation year pursuant to the Employment Insurance Act (Canada),

and the part of the amount not so applied shall be paid to the corporation.

(3) Subsection 6(4A) of Chapter 217 is repealed.

(4) Subsection 6(7) of Chapter 217 is repealed and the following subsection substituted:

(7) Where after 1983

(a) a subsidiary, within the meaning of subsection 88(1) of the Federal Act, is wound up and subsection 88(1) of the Federal Act applies to the winding-up; and

(b) the subsidiary had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year,

for the purpose of applying this Section, the parent, within the meaning of subsection 88(1) of the Federal Act, is deemed to be the same corporation as, and a continuation of, the subsidiary.

28 (1) Subsections 7(1) and (2) of Chapter 217 are repealed and the following subsection substituted:

(1) In this Section, "active business" has the meaning assigned to the expression "active business carried on by a corporation" in subsection 125(7) of the Federal Act.

(2) Subsections 7(4) and (5) of Chapter 217 are repealed and the following subsections substituted:

(4) There may be deducted from the tax otherwise payable pursuant to this Part for the first, second and third taxation years of a corporation or an association, as defined in the Co-operative Associations Act that was incorporated after the twenty-fourth day of April, 1992, pursuant to the laws of the Province, another province of Canada or Canada or by a special Act of the Legislature an amount equal to the applicable percentage referred to in the description of A in the formula in subsection (2) of Section 5 of the amount determined pursuant to subsection (5) for the taxation year, if the corporation is eligible to claim, with respect to the taxation year, a deduction pursuant to subsection 125(1) of the Federal Act.

(5) For the purpose of subsection (4), the amount determined pursuant to this subsection for a taxation year is that proportion of the least of the amounts determined pursuant to paragraphs 125(1)(a), (b) and (c) of the Federal Act for the taxation year, that is taxable income earned in the year in the Province is of its taxable income earned in the year in a province.

(3) Subsection 7(6) of Chapter 217 is amended by striking out "Notwithstanding subsection (4), a corporation is not eligible for a deduction pursuant to subsection (4) for the taxation year if it, or any predecessor corporation thereof within the meaning of section 87 of the Federal Act" in the first, second, third and fourth lines and substituting "Notwithstanding subsection (4), a corporation is not eligible for a deduction pursuant to subsection (4) for a taxation year if it, or any predecessor corporation thereof, within the meaning of section 87 of the Federal Act".

29 Clauses 8(a) and (b) of Chapter 217 are repealed and the following clauses substituted:

(a) 16% of the product of

(i) the foreign investment income of the corporation for the year from sources in the country, and

(ii) that proportion that the corporation's taxable income earned in the year in the Province is of the corporation's taxable income earned in the year; and

(b) that proportion of the amount by which such part of any non-business income tax paid by the corporation for the year to the government of a country other than Canada, except any such tax or part thereof that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of the foreign affiliate of the corporation, exceeds the amount of the deduction claimed by the corporation under subsection 126(1) of the Federal Act that the corporation's taxable income earned in the year in the Province is of the corporation's taxable income earned in the year in a province.

30 Clause 9(1)(b) of Chapter 217 is repealed and the following clause substituted:

(b) the percentage referred to in paragraph (b) of the description of A in the formula in the definition "refundable capital gains tax on hand" in subsection 131(6) of the Federal Act.

31 Subsection 10(3) of Chapter 217 is repealed.

32 Clause 11(1)(f) of Chapter 217 is repealed and the following clause substituted:

(f) "tax otherwise payable" means the amount that would be the tax otherwise payable by an eligible investor pursuant to this Act, including any tax payable for the year pursuant to subsection (7).

33 (1) Subsection 12(1) of Chapter 217 is amended by

(a) adding "(Nova Scotia)" immediately after "Plan" in the fourth line of clause (d);

(b) adding "(Nova Scotia)" immediately after "Plan" in the fifth line of clause (f);

(d) striking out "120.1," in the fourth line of clause (h).

(2) Subsections 12(2) and (3) of Chapter 217 are repealed and the following subsections substituted:

(2) For the purpose of this Section, the qualifying adjusted income of an individual for a taxation year is the aggregate of the income for the taxation year of

(a) the individual; and

(b) the individual's spouse if the individual was married at the end of the taxation year and resided with the spouse at the end of the taxation year.

(3) Subject to subsection (4), every individual resident in the Province on the thirty-first day of December in a taxation year may deduct from tax otherwise payable pursuant to this Act in respect of the taxation year the amount, if any, equal to the product of

(a) the aggregate of

(i) the lesser of two thousand dollars and the total of all qualifying contributions made by the individual in the taxation year to a Nova Scotia Home Ownership Savings Plan of which the individual is the planholder, and

(ii) where the individual is married at the end of the taxation year and resided on the thirty-first day of December in the taxation year with the individual's spouse, the lesser of two thousand dollars and the total of all qualifying contributions made by the spouse in the taxation year to a Nova Scotia Home Ownership Savings Plan of which the spouse is the planholder;

and

(b) the prescribed percentage.

(3) Clause 12(5)(c) of Chapter 217 is amended by striking out "Unemployment" in the third line and substituting "Employment".

34 Clause 13 of Chapter 217 is repealed.

35 Clause 13A(1)(b) of Chapter 217 is repealed and the following clause substituted:

(b) "tax otherwise payable" means the amount that would, but for this Section, be the tax otherwise payable pursuant to this Act.

36 Clause 13B(1)(b) of Chapter 217 is repealed and the following clause substituted:

(b) "tax otherwise payable" means the amount that would, but for this Section, be the tax otherwise payable pursuant to this Act.

37 Clause 13E(3)(c) of Chapter 217, as enacted by Chapter 2 of the Acts of 1995, is amended by striking out "Unemployment" in the last line and substituting "Employment".

38 (1) Clause 13G(1)(b) of Chapter 217 is repealed and the following clause substituted:

(b) "manufacturing or processing" has the meaning assigned by the definition "manufacturing or processing" in subsection 125.1(3) of the Federal Act and includes qualified activities as defined by Federal Regulations made for the purpose of subsection 125.1(3) of the Federal Act;

(2) Subsection 13G(3) of Chapter 217, as enacted by Chapter 3 of the Acts of 1997, is amended by

(a) striking out "taxpayer" in the third line and substituting "corporation"; and

(b) striking out "(1)(i)" in the fourth line and substituting "(1)(aa)(i)".

(3) Subsection 13G(4) of Chapter 217, as enacted by Chapter 3 of the Acts of 1997, is amended by

(a) striking out "taxpayer" in the third line and substituting "corporation"; and

(b) striking out "(1)(i)" in the fifth line and substituting "(1)(aa)(i)".

(4) Subsection 13G(5) of Chapter 217, as enacted by Chapter 3 of the Acts of 1997, is amended by

(a) striking out "taxpayer" in the fourth line and substituting "corporation"; and

(b) striking out "(1)(i)" in the fifth line and substituting "(1)(aa)(i)".

(5) Subsection 13G(7) of Chapter 217, as enacted by Chapter 3 of the Acts of 1997, is amended by striking out "clause" in the seventh line and substituting "paragraph".

39 Section 14 of Chapter 217 is repealed and the following Section substituted:

14 No tax is payable under this Act by a person for a period when

(a) no tax is payable under Part I of the Federal Act for the period on the person's taxable income because of subsection 149(1) of the Federal Act; or

(b) that person was a non-resident-owned investment corporation.

40 Sections 15 to 18 of Chapter 217 are repealed and the following Sections substituted:

15 Subsection 70(7), except the portion thereof that is after paragraph (a) thereof, sections 150, 150.1 and 151 and subsections 152(1) to (3.1) and (4) to (9), 153(1) to (3) and 156.1(4) of the Federal Act apply for the purpose of this Act.

16 When a collection agreement is in effect, notwithstanding that the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, if the tax payable under Part I of the Federal Act by the taxpayer for the year is reassessed, the Minister shall reassess, make additional assessments or assess tax, interest or penalties, as the circumstances require.

17 Subject to subsection (2) of Section 18, every individual whose chief source of income is farming or fishing shall, on or before December 31st in the year, pay to the Minister of Finance in respect of the taxation year

(a) where the individual makes the payment required under subsection 155(1) of the Federal Act on the basis of paragraph (a) of that subsection, two thirds of the amount estimated by the individual under section 151 of the Federal Act, as it applies for the purpose of this Act, to be the tax payable under this Act by the individual for the taxation year; and

(b) in any other case, two thirds of the tax payable under this Act by the individual for the immediately preceding taxation year.

18 (1) Subject to subsection (2), in respect of each taxation year every individual, other than one to whom Section 17 applies for the year, shall pay to the Minister of Finance on or before March 15th, June 15th, September 15th and December 15th in the year

(a) where the individual makes the payment required under subsection 156(1) of the Federal Act on the basis of paragraph (a) of that subsection, one quarter of the amount estimated by the individual under section 151 of the Federal Act as it applies for the purpose of this Act, to be the tax payable under this Act by the individual for the year; and

(b) in any other case, one quarter of the tax payable under this Act by the individual for the immediately preceding year.

(2) Where, because of subsection 156.1(2) or (3) of the Federal Act, no instalment is required to be made under section 155 or 156 of the Federal Act by an individual for a particular taxation year, the requirements for payment of instalments under Section 17 and subsection (1) do not apply to the individual for that year.

41 Section 20 of Chapter 217 is repealed and the following Section substituted:

20 Subsections 70(2) and 104(2), paragraph 104(23)(e), sections 158, 159 and 160, subsections 160.1(1), (3) and (4), sections 160.2 and 160.3 and subsections 161(1) to (7), (9) and (11) of the Federal Act apply for the purpose of this Act.

42 Section 22 of Chapter 217 is repealed and the following Section substituted:

22 (1) Where an individual is deemed under subsection 161(4) of the Federal Act to be liable, in respect of tax payable under Part I of the Federal Act for a taxation year, to pay a part or instalment computed by reference to an amount described in paragraph 161(4)(a), (b) or (c) of the Federal Act, notwithstanding subsection 161(4) of the Federal Act, as it applies for the purpose of this Act, the individual is deemed for the purpose of subsection 161(2) of the Federal Act as it applies for the purpose of this Act, to be liable to pay, in respect of tax payable under this Act for the year, a part or instalment computed by reference to the same paragraph, as it applies for the purpose of this Act.

(2) Where an individual is deemed under subsection 161(4.01) of the Federal Act to be liable, in respect of tax payable under Part I of the Federal Act for a taxation year, to pay a part or instalment computed by reference to an amount described in paragraph 161(4.01)(a), (b), (c) or (d) of the Federal Act, notwithstanding subsection 161(4.01) of the Federal Act, as it applies for the purpose of this Act, the individual is deemed for the purpose of subsection 161(2) of the Federal Act as it applies for the purpose of this Act, to be liable to pay in respect of tax payable under this Act for the year, a part or instalment computed by reference to the same paragraph, as it applies for the purpose of this Act.

43 Subsection 23(2) of Chapter 217 is repealed.

44 Subsection 24(2) of Chapter 217 is repealed.

45 Subsections 28(1) and (2) of Chapter 217 are repealed and the following subsections substituted:

(1) Section 169 of the Federal Act applies for the purpose of this Act.

(2) An appeal from an assessment under this Act may be taken in respect of any question relating

(a) in the case of an individual, to the determination of

(i) the individual's residence for the purpose of this Act,

(ii) the individual's income earned in the taxation year in the Province as defined in clause (a) of subsection (1) of Section 4,

(iii) the amount of tax payable for a taxation year based on the tax payable under the Federal Act for that year as defined in clause (d) of subsection (1) of Section 4, or

(iv) any credit against, or deduction from, tax payable by the individual under this Act as provided for in this Act; and

(b) in the case of a corporation, to the determination of

(i) its taxable income earned in the year in the Province as defined in subsection (3) of Section 5, or

(ii) the amount of tax payable for a taxation year based on the taxable income of the corporation for that year,

but no appeal from an assessment lies in respect of the computation of the tax payable under the Federal Act as defined in clause (d) of subsection (1) of Section 4 or of the taxable income of a corporation.

46 Section 31 of Chapter 217 is repealed and the following Section substituted:

31 Sections 166, 167, 171, 179 and 179.1 of the Federal Act apply for the purpose of this Act.

47 Subsection 36(1) of Chapter 217 is repealed and the following subsection substituted:

(1) Subsection 223(1), except paragraphs (b), (c) and (d), and subsections 223(2) to (4) of the Federal Act apply for the purpose of this Act.

48 Chapter 217 is further amended by adding immediately after Section 37 the following Sections:

37A Section 224.2 of the Federal Act applies for the purpose of this Act.

37B Section 224.3 of the Federal Act applies for the purpose of this Act.

49 Section 38 of Chapter 217 is repealed and the following Section substituted:

38 Sections 225, 225.1 and 225.2 of the Federal Act apply for the purpose of this Act.

50 Section 40 of Chapter 217 is repealed and the following Section substituted:

40 (1) Subsections 227(1) to (5.2), (8), (8.2) to (9), (9.2) and (9.4) to (13) of the Federal Act apply for the purpose of this Act.

(2) The Minister may assess

(a) any person for any amount that has been deducted or withheld by that person pursuant to this Act or a regulation or pursuant to a provision of the Federal Act or of the Federal Regulations that applies for the purpose of this Act; and

(b) any person for any amount payable by that person pursuant to subsection 224(4) or (4.1) or section 227.1 or 235 of the Federal Act as they apply for the purpose of this Act, or Section 44,

and, where the Minister sends a notice of assessment to that person, Sections 15 and 20 to 32 are applicable with such modifications as the circumstances require.

(3) Notwithstanding anything contained in this Act or any enactment, the penalty for failure to remit an amount required to be remitted by a person on or before the day prescribed in the Federal Regulations made for the purpose of subsection 153(1), as both those regulations and that subsection apply for the purpose of this Act, shall, unless the person required to remit the amount has, knowingly or under circumstances that amount to gross negligence, delayed in remitting the amount or has, knowingly or under circumstances that amount to gross negligence, remitted an amount less than the amount required to be remitted, apply only to the amount by which the total of all amounts so required to be remitted on or before that day exceeds five hundred dollars.

51 Section 42 of Chapter 217 is repealed and the following Section substituted:

42 Section 230 of the Federal Act applies for the purpose of this Act.

52 Section 46 of Chapter 217 is repealed and the following Section substituted:

46 Subsections 239(1) and (1.1) of the Federal Act apply for the purpose of this Act.

53 Subsection 48(2) of Chapter 217 is repealed and the following subsection substituted:

(2) Subsection (1) does not apply to the communication of information between

(a) the Minister of National Revenue for Canada and the Minister of Finance of the Province; or

(b) the Minister of Finance of the Province or the Minister of National Revenue for Canada, acting on behalf of the Province, and the provincial treasurer, provincial secretary-treasurer or minister of finance of the government of

(i) an agreeing province, or

(ii) a non-agreeing province, as defined in clause (c) of subsection (1) of Section 56, to which an adjusting payment may be made under subsection (2) of Section 56.

54 (1) Subsection 51(1) of Chapter 217 is repealed and the following subsection substituted:

(1) Subsections 244(1) to (5), (7) to (11), (13) to (18) and (20) to (22) of the Federal Act apply for the purpose of this Act.

(2) Subsection 51(6) of Chapter 217 is repealed and the following subsection substituted:

(6) Where a collection agreement is entered into, any document or certificate that is executed or issued by the Minister, the Commissioner of Customs and Revenue or an official of the Canada Customs and Revenue Agency on behalf or in place of the Minister of Finance, the Minister's deputy or an officer of the Department, is deemed for the purposes of this Act, to be executed or issued by the Minister of Finance, the Minister's deputy or an officer of the Department, as the case may be.

55 Chapter 217 is further amended by adding immediately after Section 51 the following Section:

51A Sections 245 and 246 of the Federal Act apply for the purpose of this Act.

56 (1) Subsection 52(2) of Chapter 217 is amended by adding "for the Province" immediately after "Finance" in the first line.

(2) Subsections 52(3) and (4) of Chapter 217 are repealed and the following subsections substituted:

(3) Without in any way limiting the Tax Collection Agreement (1961) Act, when a collection agreement is in effect, the Minister of National Revenue for Canada on behalf of the Minister of Finance for the Province may employ all the powers, perform all the duties and exercise any discretion that the Minister of Finance or the deputy head has under this Act, including the discretion to refuse to permit the production in judicial or other proceedings in the Province of any document that is not, in the opinion of the Minister of National Revenue for Canada, in the interests of public policy to produce.

(4) Without in any way limiting the Tax Collection Agreement (1961) Act, when a collection agreement is in effect, the Commissioner of Customs and Revenue may

(a) employ all the powers, perform the duties and exercise any discretion that the Minister has under subsection (3) or otherwise under this Act; and

(b) designate officers of the Canada Customs and Revenue Agency to carry out such functions, duties and powers as are similar to those that are exercised by them on behalf of the Commissioner of Customs and Revenue under the Federal Act.

57 Subsection 53(1) of Chapter 217 is amended by

(a) striking out "any" in the second line and substituting "a";

(b) adding "of Finance" immediately after "Minister" in the second line; and

58 Subsection 55(2) of Chapter 217 is amended by striking out "Section 26 applies" in the sixth and seventh lines and substituting "the provisions of the Federal Act that apply for the purpose of this Act because of Section 26 apply".

59 (1) Subsection 56(3) of Chapter 217 is repealed and the following subsection substituted:

(3) When a collection agreement is in effect, an adjusting payment that may be made pursuant to subsection (2) may be made by the Government of Canada, where it has agreed to act on the direction of the Province, as communicated by the Minister of Finance for the Province to the Minister of National Revenue for Canada.

(2) Subsection 56(5) of Chapter 217 is amended by adding "to a non-agreeing province" immediately after "made" in the first line.

(3) Subsection 56(6) of Chapter 217 is repealed and the following subsection substituted:

(6) Where an adjusting payment to a non-agreeing province is to be made under this Section for a taxation year, an individual resident in the Province on the last day of the taxation year is not required to remit any amount on account of income tax payable, or that might have been payable, by the individual under this Act for the taxation year to the extent of the amount deducted or withheld on account of the individual's income tax for that year under the law of that non-agreeing province.

(4) Subsection 56(7) of Chapter 217 is amended by striking out "Section 26 applies" in the eighth and ninth lines and substituting "the provisions of the Federal Act that apply for the purpose of this Act because of Section 26 apply".

(5) Subsection 56(8) of Chapter 217 is amended by striking out "Section 15" in the second last and last lines and substituting "subsection 153(1) of the Federal Act, as it applies for the purpose of this Act,".

60 (1) Subsection 2(1) of Chapter 217, except for clauses (c), (e) and (f), as enacted by subsection 21(1), subsections 21(2) to (5), Sections 22 and 25, subsection 5(1) of Chapter 217, as enacted by Section 26, subsections 27(1), (3) and (4), the repeal of subsection 7(2) of Chapter 217 by subsection 28(1), subsection 7(4) of Chapter 217, as enacted by subsection 28(2), subsection 28(3), subsections 33(1) and (2), Section 34, subsection 38(1), Sections 39 to 51, Sections 53 to 55, subsection 56(1), subsection 52(3) of Chapter 217, as enacted by subsection 56(2) and Sections 57 to 59 apply to the 1999 and subsequent taxation years.

(2) Subsections 23(2), (3) and (4) and Sections 31, 32, 35 and 36 apply to the 1998 and subsequent taxation years.

(3) Section 24 applies to the 1994 and subsequent taxation years.

PART IX

INCOME TAX ACT

Provincial Income Tax Effective January 1, 2000

61 All the Sections and headings immediately following Section 1 of Chapter 217 are repealed and the following headings and Sections substituted:

PART I - INTERPRETATION AND EXEMPTIONS

2 (1) In this Act,

(b) "collection agreement" means the agreement referred to in subsection 101(1), as amended in accordance with subsection 101(2), or the new collection agreement referred to in subsection 101(2), as amended in accordance with subsection 101(2);

(c) "Commissioner of Customs and Revenue" means the Commissioner of Customs and Revenue, appointed under section 25 of the Canada Customs and Revenue Agency Act (Canada);

(d) "Court" means the Supreme Court of Nova Scotia;

(e) "Department of Finance" means

(i) when no collection agreement is in effect, the Department of Finance of the Province, and

(ii) when a collection agreement is in effect,

(A) in relation to the remittance of an amount as or on account of tax payable under this Act, the Receiver General of Canada, and

(B) in relation to any other matter, the Canada Customs and Revenue Agency;

(f) "deputy head" means

(ii) when a collection agreement is in effect, the Commissioner of Customs and Revenue;

(g) "Federal Act" means the Income Tax Act (Canada);

(h) "Federal ITAR" means the Income Tax Application Rules (Canada);

(i) "Federal Regulations" means the regulations, as amended from time to time, made pursuant to the Federal Act;

(j) "income tax statute" means, with reference to an agreeing province, the law of that province that imposes a tax similar to the tax imposed under this Act;

(k) "Minister" means the Minister of National Revenue for Canada, but in any provision of the Federal Act that applies for the purposes of this Act, a reference to the Minister shall be read and construed for the purposes of this Act as a reference to the Minister of Finance;

(l) "Minister of Finance" means

(i) when no collection agreement is in effect, the Minister of Finance of the Province, and

(ii) when a collection agreement is in effect,

(A) in relation to the remittance of an amount as or on account of tax payable under this Act, the Receiver General of Canada, and

(B) in relation to any other matter, the Minister of National Revenue for Canada;

(m) "permanent establishment", where used for a purpose under this Act, has the same meaning as that assigned for that purpose, or the purpose that is most similar to that purpose, in the Federal Act or the Federal Regulations;

(n) "prescribed" means

(i) in the case of a form, the information to be given on a form or the manner of filing a form, authorized by the Minister or the Minister of Finance of the Province,

(ii) in the case of the manner of making or filing an election, authorized by the Minister or the Minister of Finance of the Province,

(iii) in the case where the word "prescribed" is mentioned in a provision of the Federal Act that applies for the purposes of this Act otherwise than in respect of a case to which subclauses (i) or (ii) apply, what is prescribed, within the meaning assigned by subsection 248(1) of the Federal Act, in the Federal Regulations under that provision, and

(iv) in any other case where the word is mentioned in this Act, prescribed by regulations;

(o) "Receiver General of Canada" means the Receiver General of Canada, but in any provision of the Federal Act that applies for the purposes of this Act, a reference to the Receiver General of Canada shall be read and construed for the purposes of this Act as a reference to the Minister of Finance;

(p) "registrar" means prothonotary;

(q) "regulations" means a regulation made by the Governor in Council under this Act;

(r) "taxation year" of a person means the period determined under the Federal Act as the person's taxation year.

(2) The expression "last day of the taxation year" shall, in the case of an individual who resided in Canada at any time in the taxation year but ceased to reside in Canada before the last day thereof, be deemed to be a reference to the last day in the taxation year on which the individual resided in Canada.

(3) The tax payable by a taxpayer under this Act or under Part I of the Federal Act means the tax payable by the taxpayer as fixed by assessment or reassessment subject to variation on objection or on appeal, if any, in accordance with this Act, or Part I of the Federal Act, as the case may be.

(4) For the purposes of this Act, except where they are at variance with the definitions contained in this Section, the definitions and interpretations contained in, or made by regulations under, the Federal Act apply.

(5) In any case of doubt, the provisions of this Act shall be applied and interpreted in a manner consistent with similar provisions of the Federal Act.

(6) Any reference in any enactment other than this Act to Chapter 3 of the Acts of 1961, the Individual and Corporation Income Tax Act, shall be read and construed as a reference to this Act.

(7) Subsections 104 (1) and (2) of the Federal Act apply for the purposes of this Act.

(8) Subsection 248(11) of the Federal Act applies for the purposes of this Act.

(9) Section 257 of the Federal Act applies for the purposes of this Act.

(10) Where a provision, in this subsection referred to as "that section", of the Federal Act or the Federal Regulations is made applicable for the purpose of this Act, that section, as amended from time to time, applies with such modifications as the circumstances require for the purpose of this Act as though it had been enacted as a provision of this Act, and in applying that section for the purpose of this Act, in addition to any other modifications required by the circumstances,

(a) a reference in that section to tax pursuant to Part I of the Federal Act shall be read as a reference to tax pursuant to this Act;

(b) except for the purpose of Part III of this Act, where that section contains a reference to tax pursuant to any of Parts I.1 to XIV of the Federal Act, that section shall be read without reference therein to tax pursuant to any of those Parts and without reference to any portion of that section that applies only to or in respect of tax pursuant to any of those Parts;

(c) a reference in that section to a particular provision of the Federal Act that is the same as, or similar to, a provision of this Act shall be read as a reference to the provision of this Act;

(d) any reference in that section to a particular provision of the Federal Act that applies for the purpose of this Act shall be read as a reference to the particular provision as it applies for the purpose of this Act;

(e) except for the purpose of Part III of this Act, where that section contains a reference to any of Parts I.1 to XIV of the Federal Act or to a provision in any of those Parts, that section shall be read without reference therein to that Part or without reference to that provision, as the case may be, and without reference to any portion of that section that applies only because of the application of any of those Parts or the application of a provision in any of those Parts;

(f) where that section contains a reference to the Bankruptcy and Insolvency Act (Canada), that section shall be read without reference therein to the Bankruptcy and Insolvency Act (Canada);

(g) subject to clause (h), any reference in that section to the Federal Regulations shall be read as including a reference to this Act or a regulation made under this Act;

(h) a reference in that section to the words "under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act" shall be read as a reference to "under this Act";

(i) any reference in that section to the Federal Act or the Federal Regulations shall be read as including a reference to this Act or a regulation made under this Act;

(j) any reference in that section to a word or expression set out in the left-hand column of the following Table shall be read as a reference to the word or expression set out opposite thereto in the right-hand column of the following Table:

TABLE

Her Majesty Her Majesty in right

of the Province

Canada Nova Scotia

Criminal Code Summary Proceedings Act

Receiver General Minister of Finance

Canada Customs and Department of Finance

Revenue Agency

Commissioner of Customs Deputy Head

and Revenue

Deputy Attorney General Deputy Attorney General

of Canada of Nova Scotia

Tax Court of Canada Supreme Court of Nova Scotia

Tax Court of Canada Act Judicature Act

Federal Court of Canada Supreme Court of Nova Scotia

Federal Court Act Judicature Act

Registrar of the Tax Court Prothonotary of the

of Canada Supreme Court of Nova Scotia

Registry of the Federal Office of the Supreme Court

Court of Nova Scotia

3 (1) In this Section,

(a) "federal amendment" means an amendment to a federal provision;

(b) "federal application rule" means a provision, in this clause referred to as "the provision", of an Act of the Parliament of Canada that makes a federal provision, a federal amendment or the repeal of a federal provision or federal amendment apply

(i) in respect of specified taxation years,

(ii) in respect of specified fiscal periods,

(iii) before or after a specified time,

(iv) in respect of transactions or events that occur before or after a specified time or in specified taxation years or specified fiscal periods, or

(v) in respect of such other criteria as may be set out in the provision; and

(2) Where a federal application rule governs the application of a federal provision or federal amendment, for the purpose of applying the federal provision or federal amendment for the purposes of this Act, the federal provision or federal amendment shall be applied in accordance with the federal application rule as though the Legislature had enacted that federal application rule to govern the application of the federal provision or federal amendment for the purposes of this Act.

(3) Where a federal provision or a federal amendment comes into force, or is deemed to come into force, at a particular time, and no federal application rule governs its application, the federal provision or federal amendment, as the case may be, is deemed, for the purpose of applying it for the purposes of this Act, to come into force at that particular time.

(4) Where a federal provision is repealed and another provision is not substituted therefor, the federal provision ceases to apply for the purposes of this Act

(a) if the repeal is governed by a federal application rule, in accordance with that federal application rule; and

(b) if the repeal is not governed by a federal application rule, at the time the repeal comes into force or is deemed to come into force.

(5) For the purposes of this Act, where a particular federal provision is replaced by another federal provision, or is repealed and another federal provision is substituted therefor, the other federal provision is deemed to be a continuation of the particular federal provision and the replacing or the repeal and substitution, as the case may be, is deemed to be an amendment to the particular federal provision.

4 No tax is payable under this Act by a person for a period when

(a) no tax is payable under Part I of the Federal Act for the period on the person's taxable income because of subsection 149(1) of the Federal Act; or

(b) that person was a non-resident-owned investment corporation.

PART II - INCOME TAX

DIVISION A - LIABILITY FOR TAX

5 An income tax shall be paid as hereinafter required for each taxation year by every individual

(a) who was resident in the Province on the last day of the taxation year; or

(b) who, not being resident in the Province on the last day of the taxation year, had income earned in the taxation year in the Province, as defined in clause 7(c).

6 An income tax shall be paid as hereinafter required for each taxation year by every corporation that maintained a permanent establishment in the Province at any time in the year.

DIVISION B - COMPUTATION OF TAX FOR INDIVIDUALS

Subdivision a - Computation of Tax

7 In this Division,

(a) "appropriate percentage" for a taxation year means the lowest percentage referred to in Section 8 that is applicable in determining tax payable under this Part for the year;

(b) "highest percentage" for a taxation year means the highest percentage referred to in Section 8 that is applicable in determining tax payable under this Part for the year;

(c) "income earned in the taxation year in the Province" means income earned in the year in the Province as determined in accordance with Federal Regulations made for the purposes of the definition "income earned in the year in a province" in subsection 120(4) of the Federal Act;

(d) "income earned in the taxation year outside the Province" means income for the year minus income earned in the taxation year in the Province;

(e) "income for the year" means

(i) in the case of an individual resident in Canada during only part of the taxation year in respect of whom section 114 of the Federal Act applies or in the case of an individual not resident in Canada at any time in the taxation year, the individual's income for the year as computed under subsection 120(3) of the Federal Act, and

(ii) in the case of any other individual, the individual's income for the year as determined in accordance with, and for the purposes of, the Federal Act;

(f) "provincial percentage" for a taxation year means 57.5%;

(g) "tax payable under the Federal Act" by an individual in respect of a taxation year means the amount determined under the definition "tax otherwise payable under this Part" in subsection 120(4) of the Federal Act in respect of the individual for the year.

8 The tax payable under this Part for a taxation year by an individual on the individual's taxable income or taxable income earned in Canada, as the case may be, in this Division referred to as the "amount taxable", for the 2000 and subsequent taxation years is

(a) 9.77% of the amount taxable if the amount taxable does not exceed $29,590;

(b) $2,891 plus 14.95% of the amount by which the amount taxable exceeds $29,590 if the amount taxable exceeds $29,590 and does not exceed $59,180; and

Subdivision b - Adjustments to Tax

9 There shall be added in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula

A � B

where

A is the provincial percentage; and

B is the total of

(a) the amount added under section 120.3 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year;

(b) the amount added under section 120.31 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year; and

(c) the amount added under section 40 of the Federal ITAR for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year.

Subdivision c - Tax Credits, Rebates and Other Deductions

10 (1) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula

A � B

where

A is the appropriate percentage for the year; and

B is the total of

(a) in the case of an individual who at any time in the year is a married person who supports the individual's spouse and is not living separate and apart from the spouse by reason of a breakdown of their marriage, an amount equal to the total of

(i) $7,231, and

(ii) the amount determined by the formula

$6,140 - (C - $614)

where

C is the greater of $614 and the income of the individual's spouse for the year or, where the individual and the individual's spouse are living separate and apart at the end of the year because of a breakdown of their marriage, the spouse's income for the year while married and not so separated;

(b) in the case of an individual who does not claim a deduction for the year because of clause (a) and who, at any time in the year,

(i) is an unmarried person or a married person who neither supported nor lived with the married person's spouse and is not supported by the spouse, and

(ii) whether alone or jointly with one or more other persons, maintains a self-contained domestic establishment, in which the individual lives, and actually supports in that establishment a person who, at that time, is

(A) except in the case of a child of the individual, resident in Canada,

(B) wholly dependent for support on the individual, or the individual and the other person or persons, as the case may be,

(D) except in the case of a parent or grandparent of the individual, either under eighteen years of age or so dependent by reason of mental or physical infirmity,

an amount equal to the total of

(iii) $7,231, and

(iv) the amount determined by the formula

$6,140 - (D - $614)

where

D is the greater of $614 and the dependent person's income for the year;

(d) in the case of an individual who, at any time in the year alone or jointly with one or more persons, maintains a self-contained domestic establishment that is the ordinary place of residence of the individual and of a particular person

(i) who has attained the age of eighteen years before that time,

(ii) who is

(A) the individual's child or grandchild, or

(B) resident in Canada and is the parent, grandparent, brother, sister, aunt, uncle, nephew or niece of the individual or of the individual's spouse, and

(iii) who is

(A) the individual's parent or grandparent and has attained the age of sixty-five years before that time, or

(B) dependent on the individual because of the particular person's mental or physical infirmity,

the amount determined by the formula

$14,047 - E

where

E is the greater of $11,661 and the particular person's income for the year;

(e) for each dependant of the individual for the year who

(i) attained the age of eighteen years before the end of the year, and

(ii) was dependent on the individual because of mental or physical infirmity,

the amount determined by the formula

$7,231 - F

where

F is the greater of $4,845 and the dependant's income for the year; and

(f) in the case of an individual entitled to a deduction in respect of a person because of clause (b) and who would also be entitled, but for paragraph 118(4)(c) of the Federal Act, as that provision applies to this Act, to a deduction because of clause (d) or (e) in respect of the person, the amount by which the amount that would be determined under clause (d) or (e), as the case may be, exceeds the amount determined under clause (b) in respect of the person.

(2) For the purpose of computing the tax payable under this Part for a taxation year by an individual who, before the end of the year, has attained the age of sixty-five years, there may be deducted the amount determined by the formula

A � ($3,531 - B)

where

A is the appropriate percentage for the year; and

B is 15% of the amount, if any, by which the individual's income for the year would exceed $26,284 if no amount were included in respect of a gain from a disposition of property to which section 79 of the Federal Act applies in computing that income.

(3) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted an amount determined by the formula

A � B

where

A is the appropriate percentage for the year; and

B is the lesser of $1,000 and

(a) where the individual has attained the age of sixty-five years before the end of the year, the pension income received by the individual in the year; and

(b) where the individual has not attained the age of sixty-five years before the end of the year, the qualified pension income received by the individual in the year.

(4) Subsections 118(4), (5) and (6) of the Federal Act apply to subsection (1) and subsections 118(7) and (8) of the Federal Act apply to subsection (3).

11 For the purpose of computing the tax payable under this Part by an individual for a taxation year, if the individual is entitled to a deduction under subsection 118.1(3) of the Federal Act for the year, there may be deducted such amount as the individual claims not exceeding the amount determined by the formula

(A � B) + [C � (D - B)]

where

A is the appropriate percentage for the year;

B is the lesser of $200 and the amount determined for D;

C is the highest percentage; and

D is the amount determined for D in the formula in subsection 118.1(3) of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the year.

12 For the purpose of computing the tax payable under this Part by an individual for a taxation year, if the individual is entitled to a deduction under subsection 118.2(1) of the Federal Act for the year, there may be deducted an amount determined by the formula

A � (B - C) - D

where

A is the appropriate percentage for the year;

B is the amount determined for B in the formula in subsection 118.2(1) of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the year;

C is the lesser of $1,637 and 3% of the individual's income for the year; and

D is 39.1% of the total of all amounts each of which is the amount, if any, by which

(a) the income for the year of a person, other than the individual and the individual's spouse, in respect of whom an amount is included in computing the individual's deduction under this Section for the year,

exceeds

(b) the amount used under clause (c) of the description of B in subsection 10(1) for the year.

13 (1) Where an individual is entitled to deduct an amount pursuant to subsection 118.3(1) of the Federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the Federal Act, for the purposes of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula

A � (B+C)

where

A is the appropriate percentage for the year;

B is $4,293; and

C is

(a) where the individual has not attained eighteen years of age before the end of the year, the amount determined by the formula

$2,941 - (D - $2,000)

where

D is the total of the amounts paid in the year for the care and supervision of the individual and included in computing a deduction under sections 63, 64 and 118.2 of the Federal Act; and

(b) in any other case, nil.

(2) Sections 118.3 and 118.4 of the Federal Act apply for the purposes of this Act, except that subsection (1) of this Section applies instead of subsection 118.3(1) of the Federal Act.

14 Section 118.5 of the Federal Act applies for the purposes of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purposes of this Division, for the purposes of this Act.

15 (1) Where an individual is entitled to deduct an amount pursuant to subsection 118.6(2) of the Federal Act for the purpose of computing the individual's tax payable for a taxation year under Part I of the Federal Act, for the purposes of computing the tax payable under this Part by the individual for the taxation year, there may be deducted an amount determined by the formula

A � B

where

A is the appropriate percentage for the year; and

B is the total of the products obtained when

(a) $200 is multiplied by the number of months in the year during which the individual is enrolled in a qualifying educational program as a full-time student at a designated educational institution; and

(b) $60 is multiplied by the number of months in the year, other than months described in clause (a), each of which is a month during which the individual is enrolled at a designated educational institution in a specified educational program that provides that each student in the program spend not less than twelve hours in the month on courses in the program.

(2) Section 118.6 of the Federal Act applies for the purposes of this Act, except that subsection (1) of this Section applies instead of subsection 118.6(2) of the Federal Act.

16 (1) Section 118.61 of the Federal Act applies for the purposes of this Act.

(2) Notwithstanding subsection (1), for the purpose of section 118.61 of the Federal Act, as that section applies for the purposes of this Act, an individual's unused tuition and education tax credits at the end of the 1999 taxation year shall be the amount equal to the provincial percentage of the individual's unused tuition and education tax credits at the end of the 1999 taxation year as determined pursuant to section 118.61 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year.

(3) Notwithstanding subsection (1) but subject to subsection (2), for the purpose of section 118.61 of the Federal Act, as that section applies for the purposes of this Act, where an individual did not reside in the Province on the last day of the taxation year for the preceding taxation year, the individual's unused tuition and education tax credits at the end of the preceding taxation year shall be equal to the lesser of

(a) the amount equal to the provincial percentage of the individual's unused tuition and education tax credits at the end of the preceding taxation year as determined pursuant to section 118.61 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year; and

(b) the amount equal to the individual's unused tuition and education tax credits at the end of the preceding taxation year as determined pursuant to a Section, that is similar to section 118.61 of the Federal Act, of an income tax statute, or similar enactment, of the province, if any, in which the individual resided on the last day of the taxation year for the preceding taxation year.

17 For the purpose of computing the tax payable under this Part by an individual for a taxation year, if the individual is entitled to a deduction under section 118.62 of the Federal Act for the year, there may be deducted an amount determined by the formula

A � B

where

A is the appropriate percentage for the year; and

B is the amount determined for B in the formula in section 118.62 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the year.

18 Section 118.7 of the Federal Act applies for the purposes of this Act, except that any reference to "appropriate percentage" in that section is to be read as a reference to "appropriate percentage", as that term is defined for the purposes of this Division, for the purposes of this Act.

19 (1) Sections 118.8 and 118.81 of the Federal Act apply for the purposes of this Act, except that the reference to $850, or to the amount that it is amended to read, in subparagraph (ii) of the description of A in paragraph 118.81(a) of the Federal Act shall be read as a reference to $489 for the purposes of this Act.

(2) Section 118.9 of the Federal Act applies for the purposes of this Act.

(3) Notwithstanding subsections (1) and (2), for the purpose of section 118.81 of the Federal Act, as that section applies for the purposes of this Act, where a person did not reside in the Province on the last day of the taxation year, the tuition and education tax credits transferred for the taxation year by the person to an individual shall be equal to the lesser of

(a) the amount equal to the provincial percentage of the amount determined in respect of the person for the taxation year pursuant to section 118.61 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year;

(b) the amount determined in respect of the person for the taxation year as determined pursuant to a Section, that is similar to section 118.61 of the Federal Act, of an income tax statute, or similar enactment, of the province, if any, in which the person resided on the last day of the taxation year; and

(c) the amount determined in respect of the person for paragraph 118.81(b) of the Federal Act, as that section applies for the purposes of this Act, for the taxation year.

(4) Notwithstanding subsections (1) and (2), for the purpose of section 118.8 of the Federal Act, as that section applies for the purposes of this Act, where in a taxation year an individual's spouse did not reside in the Province on the last day of the taxation year,

(a) the amount for B in the formula in section 118.8 of the Federal Act, as that section applies for the purpose of this Act, for the individual for the taxation year shall be equal to the lesser of

(i) the amount equal to the provincial percentage of the amount determined for B in the formula in section 118.8 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year, and

(ii) the amount that would be determined for the individual for B in the formula in a Section, that is similar to section 118.8 of the Federal Act, of an income tax statute, or similar enactment, of the province, if any, in which the individual's spouse resided on the last day of the taxation year if the individual resided in that province on the last day of the taxation year; and

(b) the amount for C in the formula in section 118.8 of the Federal Act, as that section applies for the purpose of this Act, for the individual for the taxation year shall be equal to the lesser of

(i) the amount equal to the provincial percentage of the amount determined for C in the formula in section 118.8 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act for the taxation year, and

(ii) the amount that would be determined for the individual for C in the formula in a Section, that is similar to section 118.8 of the Federal Act, of an income tax statute, or similar enactment, of the province, if any, in which the individual's spouse resided on the last day of the taxation year if the individual resided in that province on the last day of the taxation year.

20 There may be deducted in computing an individual's tax payable under this Part for a taxation year the amount determined by the formula

A � B

where

A is the provincial percentage; and

B is the amount that the individual may deduct for the taxation year under section 120.2 of the Federal Act for the purpose of computing the individual's tax payable under Part I of the Federal Act.

21 Section 121 of the Federal Act applies for the purposes of this Act, except that the reference to "2/3", or to the amount that it is amended to read, in that section of the Federal Act shall be read as a reference to 38.5% for the purposes of this Act.

22 For the purposes of computing tax payable under this Part by an individual for a taxation year, there may be deducted an amount equal to the provincial percentage of the amount that the individual may deduct under section 122.3 of the Federal Act for that taxation year.

Subdivision d - Restrictions on Credits

and Other Rules

23 Section 118.91 of the Federal Act applies for the purposes of this Act.

24 Section 118.92 of the Federal Act applies for the purposes of this Act.

25 Section 118.93 of the Federal Act applies for the purposes of this Act.

26 Section 118.94 of the Federal Act applies for the purposes of this Act.

27 Section 118.95 of the Federal Act applies for the purposes of this Act.

28 Section 122 of the Federal Act applies for the purposes of this Act, except that the reference to "29%", or to the amount that it is amended to read, in subsection 122(1) of the Federal Act shall be read, for the purposes of this Act, as a reference to the "highest percentage".

29 Subsection 128(2) of the Federal Act applies for the purposes of this Act.

Subdivision e - Other Taxes Payable

30 Section 120.4 of the Federal Act applies for the purposes of this Act, except that the reference to "29%", or to the amount that it is amended to read, in subsection 120.4(2) of the Federal Act shall be read, for the purposes of this Act, as a reference to the "highest percentage".

31 If an individual is required to pay tax under section 127.5 of the Federal Act in respect of a taxation year, there shall be added to the individual's tax payable under this Part for the taxation year an amount determined by the formula

A � B

where

A is the provincial percentage; and

B is the individual's additional tax for the taxation year determined pursuant to subsection 120.2(3) of the Federal Act.

Subdivision f - Multi-jurisdictional and

Non-resident Individuals

32 Notwithstanding subdivisions a to e, the tax payable under subdivisions a to e for a taxation year by an individual

(a) who resided in the Province on the last day of the taxation year but had income earned in the taxation year outside the Province; or

(b) who did not reside in the Province on the last day of the taxation year but had income earned in the taxation year in the Province,

shall be the amount determined by the formula

A � B

where

A is the tax otherwise payable by the individual under subdivisions a to e;

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

C is the individual's income for the year.

Subdivision g - Surtax

33 In addition to the income tax payable, computed in accordance with subdivisions a to f, by an individual for a taxation year, every individual shall pay a personal income surtax in respect of the taxation year equal to 10% of the amount, if any, by which the tax computed pursuant to subdivisions a to f for the taxation year exceeds $10,000.

Subdivision h - Foreign Tax Deduction

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 the aggregate of all amounts, each of which is an amount claimed by the individual as a deduction for that year pursuant to subsection 126(1) or subsection 180.1(1.1) of the Federal Act; and

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

(i) the aggregate of the taxpayer's incomes from sources in that country, excluding any portion thereof that was deductible by the individual for the year under subparagraph 110(1)(f)(i) of the Federal Act or in respect of which an amount was deductible by the individual pursuant to section 110.6 of the Federal Act

(A) for that year, if section 114 of the Federal Act is not applicable, or

(B) if section 114 of the Federal Act is applicable, for the period or periods in the year referred to in paragraph (a) thereof,

on the assumption that

(D) no amount was deducted under subsection 91(5) of the Federal Act in computing the individual's income for the year, and

(E) the individual's income from employment in that country was not from a source in that country to the extent of the lesser of the amounts determined in respect thereof under paragraph (c) and (d) of subsection (1) of section 122.3 of the Federal Act for the year,

is of

(ii) the taxpayer's income earned in the Province

(A) in the year, if section 114 of the Federal Act is not applicable, or

(B) if section 114 of the Federal Act is applicable, in the period or periods of the year referred to in paragraph (a) thereof,

minus any amounts deducted by the individual pursuant to section 110.6 or paragraph 111(1)(b) of the Federal Act or deductible by the individual pursuant to paragraph 110(1)(d), (d.1), (d.3), (f) or (j) or section 112 of the Federal Act for the year or in respect of such period or periods, as the case may be.

(2) For the purposes 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 subsection (1), "tax payable" and "tax otherwise payable" by a taxpayer for a taxation year mean the amount that would, but for section 127.4 of the Federal Act, be the tax otherwise payable under this Act by the taxpayer for the taxation year.

Subdivision i - Low Income Tax Reduction

35 (1) In this Section,

(a) "adjusted income" means adjusted income within the meaning of section 122.5 of the Federal Act;

(b) "eligible individual" for a taxation year means an individual who is an eligible individual within the meaning of section 122.5 of the Federal Act and who is resident in the Province on December 31st of that year;

(d) "qualified relation" means qualified relation within the meaning of section 122.5 of the Federal Act.

(2) Subject to subsection (3), 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

(i) the individual's adjusted income for the year,

exceeds

ii) $15,000,

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

(3) Notwithstanding subsection (2), where an individual is a qualified relation of another individual for a taxation year, only one of those individuals may apply under subsection (2) for the year.

(4) The Governor in Council may make regulations adjusting annually the dollar amounts set out in subsection (2).

Subdivision j - Nova Scotia

Home Ownership Savings Plan

Tax Credit

36 (1) In this Section,

(a) "housing unit" includes any premises that an individual ordinarily occupies and inhabits as the individual's residence in the taxation year but does not include premises that are part of a chronic care facility or other similar institution that is prescribed, or that are part of any charitable institution, home for special care, home for the aged, public nursing home or private nursing home;

(b) "income" of a person for a taxation year means the amount equal to the sum of the person's taxable income for the taxation year and all amounts deducted pursuant to Division C of Part I of the Federal Act in determining such taxable income, less any amounts added pursuant to Division C of Part I of the Federal Act in determining such taxable income;

(i) a corporation,

(ii) a trust or estate referred to in subdivision k of Division B of Part I of the Federal Act, or

(iii) a person who died in the taxation year or a person who is, on December 31st in the taxation year,

(A) except for the purpose of subsection (3), under the age of nineteen years and residing in the principal residence of another person who is making a deduction from tax, or whose spouse is making a deduction from tax, pursuant to paragraph 118(1)(b) of the Federal Act for the taxation year in respect of the person,

(B) a person referred to in paragraph 149(1)(a) or (b) of the Federal Act,

(C) a person, or a member of the family of the person, who is on active military service as a member of the armed forces of a country other than Canada and is not a Canadian citizen, or

(D) a person who, by virtue of an agreement, convention or tax treaty entered into by Canada and another country, is not required to pay tax pursuant to the Federal Act with respect to the taxation year;

(d) "Nova Scotia Home Ownership Savings Plan" means a Nova Scotia Home Ownership Savings Plan pursuant to the Home Ownership Savings Plan (Nova Scotia) Act;

(e) "principal residence", in respect of an individual, means a housing unit in the Province that was occupied by the individual during the taxation year as the individual's primary place of residence and that is designated by the individual in the prescribed manner as the individual's principal residence for the taxation year;

(f) "qualifying contribution" made by an individual to a Nova Scotia Home Ownership Savings Plan means a contribution that is a qualifying contribution pursuant to the Home Ownership Savings Plan (Nova Scotia) Act and in respect of which a receipt in the prescribed form has been issued by the depositary of the plan and has been filed by the individual with the Minister of Finance;

(g) "tax payable" and "tax otherwise payable" mean the amount of tax that would be payable pursuant to this Act if the tax were calculated without reference to sections 121 and 122.3 of the Federal Act, as they apply for the purposes of this Act, and this Section.

(2) For the purpose of this Section, the qualifying adjusted income of an individual for a taxation year is the aggregate of the income for the taxation year of

(a) the individual; and

(b) the individual's spouse if the individual was married at the end of the taxation year and resided with the spouse at the end of the taxation year.

(3) Subject to subsection (5), every individual resident in the Province on December 31st in a taxation year may deduct from tax otherwise payable pursuant to this Act in respect of the taxation year the amount, if any, equal to the product of

(a) the aggregate of

(i) the lesser of $2,000 and the total of all qualifying contributions made by the individual in the taxation year to a Nova Scotia Home Ownership Savings Plan of which the individual is the planholder, and

(ii) where the individual is married at the end of the taxation year and resided on December 31st in the taxation year with their spouse, the lesser of $2,000 and the total of all qualifying contributions made by the spouse in the taxation year to a Nova Scotia Home Ownership Savings Plan of which the spouse is the planholder; and

(b) the prescribed percentage.

(4) Notwithstanding clause (3)(a), a reference in that clause to a taxation year includes the period up to sixty days following the end of the taxation year.

(5) Where, on December 31st in a taxation year, an individual is married and resides with their spouse, any deduction from tax of an amount by either or both of them pursuant to subsection (3) for the taxation year that would have been permitted but for this subsection shall be made by only one of them and shall include all amounts that would otherwise have been deductible from tax pursuant to subsection (3) by either of them.

(6) The amount by which the deduction to which an individual is entitled pursuant to this Section exceeds the individual's tax payable pursuant to this Act for the taxation year calculated without reference to this Section may be applied by the Minister of Finance to pay any

(a) tax, interest or penalty owing by the individual for that or any prior taxation year pursuant to this Act, the income statute of any agreeing province or the Federal Act;

(b) contribution, penalty or interest owing by the individual for that or any prior taxation year as a result of payments required from the individual pursuant to the Canada Pension Plan Act (Canada);

(c) premium, interest or penalty owing by the individual for that or any prior taxation year pursuant to the Employment Insurance Act (Canada),

and the part of the amount not so applied shall be paid to the individual.

(7) For the purpose of this Section,

(a) where an individual or someone on the individual's behalf is entitled to file returns pursuant to the Federal Act in respect of the individual's income for more than one taxation year ending in the same calendar year, the deduction to which the individual may be entitled pursuant to this Section may be claimed only with respect to that taxation year that ends on or next before the last day of the calendar year;

(b) no deduction pursuant to this Section may be claimed in a return

(i) filed pursuant to an election made pursuant to the provisions of subsection 70(2), subsection 104(23) or subsection 150(4) of the Federal Act, or

(ii) filed on behalf of an individual by a trustee in bankruptcy pursuant to the provisions of paragraph 128(2)(e) or (h) of the Federal Act.

(8) Where an individual makes a claim to the Minister of Finance not more than three years after the end of the taxation year to which the claim relates that the individual is entitled to a deduction or an additional deduction pursuant to this Section for a taxation year in excess of the amount of any deduction pursuant to this Section previously allowed to the individual for the taxation year, the Minister of Finance may allow the deduction or additional deduction claimed by the individual if the Minister of Finance is satisfied that the individual is entitled to the deduction or additional deduction pursuant to this Section for the taxation year, and the Minister of Finance shall apply the amount of any deduction or additional deduction in the manner described in subsection (6).

Subdivision k - Equity Tax Credits

37 (1) In this Section,

(a) "equity tax credit" means a credit in respect of a tax-credit certificate issued to a taxpayer pursuant to subsection 8(2) of the Equity Tax Credit Act;

(b) "tax otherwise payable" means the amount that would, but for this Section, be the tax otherwise payable pursuant to this Act.

(2) Where, in respect of a taxation year, a taxpayer has been issued a tax-credit certificate pursuant to subsection 8(2) of the Equity Tax Credit Act, there shall be deducted from the tax otherwise payable by that taxpayer pursuant to this Part in respect of that taxation year the lesser of

(a) the aggregate of the equity tax credit and any amount referred to in clauses (5)(c) or (d); or

(b) $9,000.

(3) A taxpayer who is entitled to a deduction pursuant to this Section shall file, with the taxpayer's annual return for any taxation year in respect of which a deduction is claimed pursuant to this Section, a copy of the tax-credit certificate.

(4) A taxpayer is not entitled to a deduction pursuant to this Section unless the taxpayer files a return within three years after the end of the taxation year to which the deduction pertains.

(5) Where a taxpayer

(a) has been issued a tax-credit certificate pursuant to subsection 8(2) of the Equity Tax Credit Act; and

(b) the amount of the equity tax credit exceeds the amount of tax payable by that taxpayer for the taxation year,

the taxpayer may

(c) carry back and deduct any unused balance of the equity tax credit from tax otherwise payable by the taxpayer in any one or more of the taxpayer's three previous taxation years; or

(d) carry forward and deduct any unused balance of the equity tax credit from tax otherwise payable by the taxpayer in any one or more of the taxpayer's seven subsequent taxation years.

38 (1) In this Section,

(a) "labour-sponsored venture-capital tax credit" means a credit in respect of a tax-credit certificate issued to a taxpayer pursuant to subsection 18(2) of the Equity Tax Credit Act;

(b) "tax otherwise payable" means the amount that would, but for this Section, be the tax otherwise payable pursuant to this Act.

(2) Where, in respect of a taxation year, a taxpayer has been issued a tax-credit certificate pursuant to subsection 18(2) of the Equity Tax Credit Act, there shall be deducted from the tax otherwise payable by that taxpayer pursuant to this Part in respect of that taxation year the lesser of

(a) the labour-sponsored venture-capital tax credit; or

(b) five hundred and twenty-five dollars.

(4) A taxpayer is not entitled to a deduction pursuant to this Section unless the taxpayer files a return

(a) within three years after the end of the taxation year to which the deduction pertains for eligible shares purchased on or before April 25, 1996; or

(b) within seven years after the end of the taxation year to which the deduction pertains for eligible shares purchased after April 25, 1996.

Subdivision l - Capital Gains Refund to Mutual Fund Trust

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

(a) the percentage obtained by multiplying the provincial percentage for the year times the percentage referred to in paragraph 117(2)(c) of the Federal Act for the year,

is of

(b) the percentage referred to in subparagraph 132(4)(b)(i) of the Federal Act for the year.

(2) For the purpose of computing the capital gains refund under subsection (1) for a trust in respect of a taxation year, where the trust had income earned in the taxation year outside the Province, the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (1), that the trust's income earned in the taxation year in the Province is of its income for the year.

(3) Instead of making a refund that might otherwise be made under subsection (1), the Minister may, where the trust is liable or about to become liable to make any payment under this Act, apply the amount that would otherwise be refunded to that other liability and notify the trust of that action.

DIVISION C - COMPUTATION OF TAX FOR CORPORATIONS

Subdivision a - Computation of Tax

40 (1) The tax payable by a corporation under this Part for a taxation year is 16% of the corporation's taxable income earned in the year in the Province.

(2) Notwithstanding subsection (1), if in a taxation year a corporation is eligible for a deduction under subsection 125(1) of the Federal Act, the tax payable by that corporation under this Part for that taxation year is equal to the amount determined by the formula

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

where

A is 5%;

B is the least of the amounts determined pursuant to paragraphs 125(1)(a), (b) and (c) of the Federal Act in respect of the corporation for the taxation year;

C is the corporation's taxable income earned in the year in the Province;

D is the corporation's taxable income earned in the year in a province; and

E is 16%.

(3) For the purposes of this Division,

(a) "taxable income earned in the year in the Province" of a corporation means its taxable income earned in the year in the Province as determined in accordance with Federal Regulations made for the purposes of the definition "taxable income earned in the year in a province" in subsection 124(4) of the Federal Act; and

(b) "taxable income earned in the year in a province" is the amount determined for the corporation for the taxation year for the purposes of the definition "taxable income earned in the year in a province" in subsection 124(4) of the Federal Act.

Subdivision b - Research and Development Tax Credit

41 (1) In this Section,

(a) "eligible expenditure" means an expenditure made after 1983 by a corporation with a permanent establishment in the Province in respect of scientific research to be carried out in the Province that is a qualified expenditure under subsection 127(9) of the Federal Act,

(i) without reference to paragraphs (d) and (h) of subsection 127(9) of the Federal Act after December 31, 1999, and before April 11, 2000, and

(ii) without reference to paragraph (d) of subsection 127(9) of the Federal Act after April 10, 2000;

(b) "research and development tax credit" of a corporation at the end of a taxation year for expenditures made in a taxation year ending on or before December 31, 1993, means the amount, if any, by which the aggregate of

(i) an amount equal to 10% of the aggregate of all amounts each of which is an eligible expenditure made by it in the year, computed without reference to subsection 13(7.1) of the Federal Act,

(ii) an amount equal to 10% of the aggregate of all amounts each of which is an eligible expenditure made by it in any of the seven taxation years immediately preceding or the three taxation years immediately following that year, computed without reference to subsection 13(7.1) of the Federal Act,

(iii) an amount equal to the aggregate of all amounts each of which is an amount required by subsection (6) or (8) to be included in computing its research and development tax credit at the end of the year, and

(iv) the aggregate of all amounts each of which is an amount required by subsection (6) or (8) to be included in computing its research and development tax credit at the end of any of the seven taxation years immediately preceding or the three taxation years immediately following that year,

exceeds the aggregate of all amounts each of which is that portion of the amount deducted under subsection (2) from the tax otherwise payable under this Act by the corporation for a preceding taxation year that is in respect of an expenditure made in the year or in the seven taxation years immediately preceding or the two taxation years immediately following the year;

(c) "research and development tax credit" of a corporation at the end of a taxation year for expenditures made in a taxation year ending after December 31, 1993, means the amount which is the aggregate of

(i) an amount equal to 15% of the aggregate of all amounts each of which is an eligible expenditure made by it in the year, computed without reference to subsection 13(7.1) of the Federal Act, and

(ii) an amount equal to the aggregate of all amounts each of which is an amount required by subsection (6) or (8) to be included in computing its research and development tax credit at the end of the year.

(2) A corporation may deduct from the tax otherwise payable under this Act for a taxation year an amount not exceeding the lesser of

(a) its research and development tax credit at the end of the year; and

(b) its tax otherwise payable by it under this Act for the year.

(3) The amount by which the research and development tax credit referred to in clause (1)(c) to which a corporation is entitled exceeds the corporation's tax payable pursuant to this Act for the taxation year, calculated without reference to this Section, may be applied by the Minister of Finance to pay any

(a) tax, interest or penalty owing by the corporation for that or any prior taxation year pursuant to this Act, the income statute of any agreeing province or the Federal Act;

(c) premium, interest or penalty owing by the corporation for that or any prior taxation year pursuant to the Employment Insurance Act (Canada),

and the part of the amount not so applied shall be paid to the corporation.

(4) For greater certainty, a corporation referred to in subsection (3) does not include a corporation that is exempt from tax pursuant to section 149 of the Federal Act.

(5) There is deemed to have been paid on account of tax payable under the Federal Act by a taxpayer, other than a taxpayer exempt from tax, for a taxation year, where the taxpayer is an individual, on the individual's balance due date for the year and, where the taxpayer is a corporation, on the day referred to in paragraph 157(1)(b) of the Federal Act on or before which the remainder of the taxes payable under this Part for the year by the taxpayer would be required to be paid if such a remainder were payable, the amount, if any, by which

(a) the taxpayer's tax credit calculated under subsection (1) for the year,

exceeds

(b) the amount deducted, pursuant to subsection (2), in computing the taxpayer's tax payable under this Part for the year.

(6) Where in a particular taxation year of a corporation which is a beneficiary under a trust, an amount would, if the trust were a corporation, be, by virtue of subclause (1)(b)(i) or (iii) or subclause (1)(c)(ii), included in computing the research and development tax credit of the trust for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all the circumstances including the terms and conditions of the trust, reasonably be considered to be the corporation's share thereof shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.

(7) A corporation may renounce the research and development tax credit in respect of qualified expenditures incurred during the year on or before the time on or before which the corporation is required to file its return of income for the year pursuant to section 150 of the Federal Act and, where the corporation so renounces entitlement to that credit, the corporation shall be deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving that credit.

(8) Where in a particular taxation year of a corporation that is a member of a partnership, an amount would, if the partnership were a corporation, be, by virtue of subclause (1)(b)(i) or (iii) or subclause (1)(c)(ii), included in computing the research and development tax credit of the partnership for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share thereof shall be included in computing the research and development tax credit of the corporation at the end of that particular taxation year.

(9) Where after 1983 two or more corporations amalgamate within the meaning of subsection 87(1) of the Federal Act and one or more of the corporations had a research and development tax credit for any taxation year any portion of which was not deducted by it in computing its tax otherwise payable under this Act for any taxation year, for the purposes of determining the research and development tax credit of the new corporation for any taxation year preceding any taxation year of the new corporation, the new corporation shall be deemed to be the same corporation as and a continuation of each such predecessor corporation.

(10) Where after 1983

(a) a subsidiary, within the meaning of subsection 88(1) of the Federal Act, is wound up and subsection 88(1) of the Federal Act applies to the winding-up; and

for the purposes of applying this Section, the parent, within the meaning of subsection 88(1) of the Federal Act, shall be deemed to be the same corporation as, and a continuation of, the subsidiary.

Subdivision c - Nova Scotia Corporate Tax Holiday

42 (1) In this Section, "active business" has the meaning assigned to the expression "active business carried on by a corporation" in subsection 125(7) of the Federal Act.

(2) In this Section, "Minister" means the Minister of Finance unless the administration of this Section has been separately assigned to another member of the Executive Council in which case it means that other member to whom for the time being the administration of this Section is assigned.

(3) The Minister may delegate to an employee of the Department of Finance any duty or responsibility assigned to the Minister pursuant to this Section.

(4) There may be deducted from the tax otherwise payable pursuant to this Part, for the first, second and third taxation years of a corporation or an association, as defined in the Co-operative Associations Act, that was incorporated after April 24, 1992, pursuant to the laws of the Province, another province of Canada or Canada or by a special Act of the Legislature, an amount equal to the applicable percentage referred to in the description of A in the formula in subsection 40(2) of the amount determined pursuant to subsection (5) for the taxation year, if the corporation is eligible to claim, with respect to the taxation year, a deduction pursuant to subsection 125(1) of the Federal Act.

(5) For the purposes of subsection (4), the amount determined pursuant to this subsection for a taxation year is that proportion of the least of the amounts determined pursuant to paragraphs 125(1)(a), (b) and (c) of the Federal Act for the taxation year, that

(a) its taxable income earned in the year in the Province,

is of

(b) its taxable income earned in the year in a province.

(6) Notwithstanding subsection (4), a corporation is not eligible for a deduction pursuant to subsection (4) for a taxation year if it, or any predecessor corporation thereof, within the meaning of section 87 of the Federal Act, at any time since the date of its incorporation

(a) was associated with any other corporation within the meaning of section 256 of the Federal Act, unless the Minister has waived this restriction with respect to such association with the other corporation;

(b) carried on an active business by reason of being a member of a partnership, where any other member of the partnership was not eligible for a deduction pursuant to subsection (4) for the taxation year;

(c) was a beneficiary of a trust, where any other beneficiary of the trust was not eligible for a deduction pursuant to subsection (4) for the taxation year;

(d) carried on an active business by reason of being a co-venturer in a joint venture, where any other co-venturer in the joint venture was not eligible for a deduction pursuant to subsection (4) for the taxation year;

(e) has carried on an active business by reason of having acquired, by purchase or otherwise, or leased property from another corporation, hereinafter referred to as the "vendor", in respect of which it, any of its shareholders, or any persons related to it or its shareholders, beneficially owned at any time, directly or indirectly, more than 10% of the issued shares of any class of the capital stock of the vendor; or

(f) has carried on an active business by reason of having acquired, by purchase or otherwise, or leased property from a sole proprietorship or partnership, hereinafter referred to as the "vendor", in respect of which it, any of its shareholders, or any persons related to it or its shareholders beneficially owned the vendor.

(7) Notwithstanding subsection (4), a corporation is not eligible for a deduction pursuant to subsection (4) for the taxation year if, prior to incorporation, the same or substantially the same business activity was carried on as a sole proprietorship, partnership or corporation, whether registered as such or not.

(8) Notwithstanding subsection (7), if the same or substantially the same business activity was carried on as a sole proprietorship or partnership, whether registered as such or not, for a period of ninety days or less prior to the date of incorporation, the corporation may apply to the Minister for a certificate of eligibility.

(9) A corporation shall not be entitled to a deduction pursuant to subsection (4) for the taxation year if, as a result of a transaction or an event, or a series of transactions or events, property of a business has been transferred, or has been deemed to have been transferred, either directly or indirectly, to the corporation, and it is reasonable for the Minister to believe that one of the principal purposes of the transfer or deemed transfer is to enable the corporation to claim a deduction from tax pursuant to subsection (4) that it could not otherwise claim.

(10) A corporation is not entitled to a deduction pursuant to subsection (4) for the taxation year if, as a result of a disposition, a deemed disposition or a series of dispositions of shares of any corporation, it is reasonable for the Minister to believe that one of the principal purposes of the disposition or deemed disposition is to enable the corporation to claim a deduction from tax pursuant to subsection (4) that it could not otherwise claim.

(11) For greater certainty, this Section does not apply to a business incorporated for the professional practice of an accountant, dentist, lawyer, medical doctor, veterinarian or chiropractor.

(12) To be eligible for a tax deduction pursuant to this Section, a corporation shall apply to the Minister for a certificate of eligibility which the corporation shall file with its income tax return.

(13) A corporation incorporated pursuant to the laws of a province or Canada is not entitled to the deduction pursuant to this Section unless at least 25% of the wages and salaries paid by the corporation in the taxation year are paid to employees who are resident in the Province and the corporation's head office is located in the Province.

Subdivision d - Foreign Tax Deduction

43 Where the income for a taxation year of a corporation that maintained a permanent establishment in the Province at any time in the taxation year includes income described in subparagraph 126(1)(b)(i) of the Federal Act from sources in a country other than Canada, in this Section referred to as "foreign investment income", and where the corporation has claimed a deduction under subsection 126(1) of the Federal Act in respect of the foreign investment income, the corporation may deduct from the tax for the year otherwise payable under this Act an amount equal to the lesser of

(a) 16% of the product of

(i) the foreign investment income of the corporation for the year from sources in the country, and

(ii) that proportion that the corporation's taxable income earned in the year in the Province is of the corporation's taxable income earned in the year; and

(b) that proportion of the amount by which such part of any non-business-income tax paid by the corporation for the year to the government of a country other than Canada, except any such tax or part thereof that may reasonably be regarded as having been paid in respect of income from a share of the capital stock of a foreign affiliate of the corporation, exceeds the amount of the deduction claimed by the corporation under subsection 126(1) of the Federal Act that

(i) the corporation's taxable income earned in the year in the Province,

is of

(ii) the corporation's taxable income earned in the year in a province.

Subdivision e - Capital Gains Refund to Mutual Fund Corporation

44 (1) Where an amount is to be refunded to a corporation in respect of a taxation year, pursuant to section 131 of the Federal Act, the Minister shall, subject to subsection (2), at such time and in such manner as is provided in that section, refund to the corporation an amount, in this Section referred to as its "capital gains refund" for the year, equal to that proportion of the amount of the refund for the year calculated under subsection 131(2) of the Federal Act that

(a) the percentage referred to in subsection 40(1) for the year,

is of

(b) the percentage referred to in paragraph (b) of the description of A in the formula in the definition "refundable capital gains tax on hand" in subsection 131(6) of the Federal Act.

(2) For the purpose of computing the capital gains refund under subsection (1) for a corporation in respect of a taxation year, where

(a) the corporation's taxable income earned in the year in the Province,

is less than

(b) the corporation's taxable income for the year,

the refund shall be that proportion of the capital gains refund for the year, otherwise determined under subsection (1), that the amount determined under clause (a) is of the amount determined under clause (b).

(3) Subsection 131(3) of the Federal Act applies for the purpose of this Act.

Subdivision f - ISO9000 Certification

45 (1) In this Section, "eligible expenditure" means an expenditure made after 1993 and before January 1, 2001, by a corporation with a permanent establishment in the Province with respect to audit, training and documentation expenses necessary for the corporation to become ISO9000 certified.

(2) A corporation that has made eligible expenditures in a taxation year may apply to the Minister of Finance, at the time and in the manner prescribed by the Minister of Finance, for a tax credit equal to 25% of the lesser of

(a) the amount of eligible expenditures made in the taxation year; and

(b) $150,000.

(3) Where the Minister is satisfied that a corporation is entitled to a tax credit pursuant to this Section, the Minister shall, at the time and in the manner prescribed by the Minister, issue a tax credit certificate to the corporation.

(4) Where a corporation files with its return of income for a taxation year a tax credit certificate issued by the Minister of Finance pursuant to subsection (3), the corporation may deduct from the tax otherwise payable by the corporation under this Act the amount of the tax credit indicated on the tax credit certificate.

(5) The Governor in Council may make regulations

(a) prescribing forms for the purpose of this Section;

(b) governing any matter that may be prescribed pursuant to this Section;

(c) requiring a corporation to supply information or documents respecting any matter required in assessing compliance with this Section;

(d) respecting those expenditures that qualify as eligible expenditures for the purpose of this Section;

(e) defining any word used but not defined in this Section;

(f) to carry out effectively the intent and purpose of this Section.

Subdivision g - Prospectus Filing Expenses

46 (1) In this Section, "eligible expenditure" means an expenditure made after 1994 and before 2000 by a corporation with a permanent establishment in the Province with respect to audit, legal and printing expenses necessary for the corporation to file a prospectus pursuant to the Securities Act or a stock exchange as prescribed by regulation.

(a) the amount of eligible expenditures made in the taxation year; or

(b) $100,000.

(5) Where a corporation

(a) has been issued a tax certificate pursuant to this Section; and

(b) the amount of the tax credit exceeds the amount of tax payable by the corporation for the taxation year,

the corporation may carry forward and deduct any unused balance of the tax credit from tax otherwise payable by the corporation in any one or more of the corporation's seven subsequent taxation years.

(6) The Governor in Council may make regulations

(a) prescribing forms for the purpose of this Section;

(b) governing any matter that may be prescribed pursuant to this Section;

(c) requiring a corporation to supply information or documents respecting any matter required in assessing compliance with this Section;

(d) respecting those expenditures that qualify as eligible expenditures for the purpose of this Section;

(e) respecting those corporations that are eligible for the tax credit pursuant to this Section;

(f) defining any word or expression used but not defined in this Section;

(g) to carry out effectively the intent and purpose of this Section.

Subdivision h - Film Industry Tax Credit

47 (1) A corporation producing an eligible film in the Province may apply in the manner prescribed by the Minister of Finance for a film industry tax credit.

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

(a) the sum of

(i) 32.5% of the eligible salaries paid after December 31, 1999, and before April 11, 2000, to residents of the Province,

(ii) for film production activity undertaken in an eligible geographic area of the Province as prescribed by regulation, 35% of the eligible salaries paid after April 10, 2000, and before 2003 to residents of the Province, and

(iii) for film production activity undertaken in the Province otherwise than in an eligible geographic area, 30% of the eligible salaries paid after April 10, 2000, and before 2003 to residents of the Province; or

(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 subclause (a)(ii) or 15% in the case of subclause (a)(iii).

(3) The amount by which the tax credit referred to in subsection (2) exceeds the corporation's tax payable for the taxation year calculated without reference to this Section may be applied by the Minister of Finance to pay

(a) any tax, interest or penalty owing by the corporation for that or any prior taxation year pursuant to this Act, the income statute of any agreeing province or the Federal Act;

(b) any contribution, penalty or interest by the corporation for that or any prior taxation year as a result of payments required from the corporation pursuant to the Canada Pension Plan Act (Canada);

(c) any premium, interest or penalty owing by the corporation for that or any prior taxation year pursuant to the Employment Insurance Act (Canada),

and the part of the amount not so applied shall be paid to the corporation.

(4) The Governor in Council may make regulations

(a) prescribing forms for the purpose of this Section;

(b) governing any matter that may be prescribed pursuant to this Section;

(c) requiring a corporation to supply information or documents respecting any matter required in assessing compliance with this Section;

(d) respecting those corporations that are eligible for the tax credit pursuant to this Section;

(e) prescribing the criteria for determining when an expenditure has occurred in an eligible geographic area;

(f) prescribing eligible geographic areas of the Province;

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

(h) to carry out effectively the intent and purpose of this Section.

Subdivision i - ISO14000 Certification

48 (1) In this Section, "eligible expenditure" means an expenditure made after 1995 and before January 1, 2001, by a corporation with a permanent establishment in the Province with respect to audit, training and documentation expenses necessary for the corporation to become ISO14000 certified.

(a) the amount of eligible expenditures made in the taxation year; and

(b) $150,000.

(5) The Governor in Council may make regulations

(a) prescribing forms for the purpose of this Section;

(b) governing any matter that may be prescribed pursuant to this Section;

(c) requiring a corporation to supply information or documents respecting any matter required in assessing compliance with this Section;

(d) respecting those expenditures that qualify as eligible expenditures for the purpose of this Section;

(e) defining any word or expression used but not defined in this Section;

(f) respecting any matter or thing the Governor in Council considers necessary or advisable to carry out effectively the intent and purpose of this Section.

Subdivision j - Manufacturing And

Processing Investment Tax Credit

49 (1) In this Section,

(a) "capital cost" to the corporation has the meaning assigned by paragraph 127(11.1)(b) and (d) of the Federal Act and, for greater certainty, for the purpose of this subsection, "government assistance" as described in paragraph 127(11.1)(b) and (d) of the Federal Act does not include the investment tax credit determined under this Section;

(b) "investment tax credit" of a corporation at the end of a taxation year means the amount, if any, by which the total of

(i) an amount equal to

(B) 15% of the total of all amounts each of which is the capital cost to the corporation of a qualified property acquired by it after December 31, 2000, but before January 1, 2003,

determined without reference to subsection 13(7.1) of the Federal Act,

(ii) an amount equal to

(A) where a qualified property is acquired before January 1, 2001, 30% of the total of all amounts each of which is the capital cost to the corporation of the qualified property acquired by it in any of the seven taxation years immediately preceding or the three taxation years immediately following the year of acquisition, and

(B) where a qualified property is acquired after December 31, 2000, and before January 1, 2003, 15% of the total of all amounts each of which is the capital cost to the corporation of the qualified property acquired by it in any of the seven taxation years immediately preceding or the three taxation years immediately following the year of acquisition,

determined without reference to subsection 13(7.1) of the Federal Act,

(iii) an amount equal to the total of all amounts each of which is an amount required by subsection (3), (4) or (5) to be added in computing its investment tax credit at the end of the year, and

(iv) the total of all amounts each of which is an amount required by subsection (3), (4) or (5) to be added in computing its investment tax credit at the end of any of the seven taxation years immediately preceding or the three taxation years immediately following the year,

exceeds

(v) the total of all amounts each of which is that portion of the amount deducted pursuant to subsection (2) from the tax otherwise payable under this Act by the corporation for a preceding taxation year that is in respect of property acquired in the year or in the seven taxation years immediately preceding or the two taxation years immediately following the year;

(c) "manufacturing or processing" has the meaning assigned by the definition "manufacturing or processing" in subsection 125.1(3) of the Federal Act and includes qualified activities as defined by Federal Regulations made for the purpose of subsection 125.1(3) of the Federal Act;

(d) "qualified property" of a corporation means property acquired by the corporation after December 31, 1996, and before January 1, 2003, that is qualified property within the meaning assigned by the definition under subsections 127(9) and (11) of the Federal Act, that has not been used, or acquired for use or lease, for any purpose whatever before it was acquired by the corporation and that is

(i) to be used by the corporation in the Province primarily for the purpose of manufacturing or processing of goods for sale or lease, or

(ii) to be leased by the corporation to a lessee, other than a person exempt from tax under section 149 of the Federal Act, who can reasonably be expected to use the property in the Province primarily for the purpose of manufacturing or processing of goods for sale or lease,

but subclause (ii) does not apply in respect of property that is machinery and equipment unless the property is leased by the corporation in the ordinary course of carrying on a business in the Province and the principal business of the corporation is manufacturing property that it sells or leases.

(2) There may be deducted from the tax otherwise payable pursuant to this Act by a corporation for a taxation year an amount not exceeding the lesser of

(a) the corporation's investment tax credit at the end of the year; and

(b) the tax otherwise payable by the corporation pursuant to this Act for the year.

(3) Where, in a particular taxation year of a corporation that is a beneficiary under a trust, an amount would, if the trust were a corporation, be determined in respect of the trust under subclause (1)(b)(i) or (iii) for its taxation year ending in that particular taxation year, the portion of that amount that may, having regard to all circumstances, including the terms and conditions of the trust, reasonably be considered to be the corporation's share thereof is the amount required to be added in computing the investment tax credit of the corporation at the end of that particular taxation year.

(4) Where, in a particular taxation year of a corporation that is a member of a partnership, an amount would, if the partnership were a corporation, be determined in respect of the partnership under subclause (1)(b)(i) or (iii) for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share thereof is the amount required to be added in computing the investment tax credit of the corporation at the end of that particular taxation year.

(5) Where, in a particular taxation year of a corporation that is a member of a limited partnership, an amount would, if the limited partnership were a corporation, be determined in respect of the limited partnership under subclause (l)(b)(i) or (iii) for its taxation year ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share thereof, determined with reference to subsection 127(8.1) of the Federal Act, is the amount required to be added in computing the investment tax credit of the corporation at the end of that particular taxation year.

(6) Where, after December 31, 1996, there has been an amalgamation within the meaning of subsection 87(1) of the Federal Act and one or more of the predecessor corporations had an investment tax credit for any taxation year any portion of which was not deducted by the predecessor corporation in computing its tax otherwise payable under this Act for any taxation year, for the purpose of computing the new corporation's investment tax credit at the end of any taxation year, the new corporation is deemed to be the same corporation as, and a continuation of, each such predecessor corporation.

(7) Where, after December 31, 1996, there has been a winding-up to which subsection 88(1) of the Federal Act applies and the subsidiary had an investment tax credit for any taxation year any portion of which was not deducted by the subsidiary in computing its tax otherwise payable under this Act for any taxation year, and with reference to paragraph 88(1)(e.3) of the Federal Act, for the purpose of computing the parent's investment tax credit at the end of any particular taxation year ending after the subsidiary was wound up, the parent is deemed to be the same corporation as, and a continuation of, the subsidiary.

(8) Subsections 127(9.1) and (9.2) and paragraph (m) of the definition of "investment tax credit" of subsection 127(9) of the Federal Act apply for the purpose of this Section.

(9) The corporation may renounce the investment tax credit in respect of qualified property acquired during the year in whole or in part on or before the time on or before which the corporation is required to file its return of income for the year pursuant to section 150 of the Federal Act and, where the corporation so renounces entitlement to that portion of the credit, the corporation is deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the credit or that part of the credit.

(10) The Governor in Council may make regulations respecting the capital costs of a qualified property primarily incurred on or before December 31, 2000, which may be deducted pursuant to this Section.

DIVISION D - DEDUCTIONS AVAILABLE TO ALL TAXPAYERS

Political Contributions

50 (1) In this Section,

(a) "candidate" means a person who has been officially nominated as a candidate pursuant to the Elections Act;

(b) "donations in kind" means any property other than money given or provided to or for the benefit of a recognized party or a candidate without compensation from the recognized party or candidate, and includes services of an employee of the taxpayer provided to a recognized party or a candidate without compensation from the recognized party or candidate;

(2) In respect of the aggregate amount of contributions, other than donations in kind, made by a taxpayer to candidates and recognized parties during the taxation year, that taxpayer may deduct from the amount of tax which that taxpayer would otherwise be required to pay under this Act an amount equal to

(a) 75% of the aggregate amount contributed if the aggregate amount contributed does not exceed $100;

(b) $75 plus 50% of the amount by which the aggregate amount contributed exceeds $100 but does not exceed $550; or

(i) $300 plus 33 1/3% of the amount by which the aggregate amount contributed exceeds $550, and

(ii) $500,

or the amount of the tax payable, whichever is the lesser.

(3) Payment of each amount that is included in the aggregate amount of contributions in respect of which a deduction is claimed under subsection (2) shall be proved by filing with the Minister receipts containing prescribed information, signed by the official agent of the recognized party or the official agent of the candidate, as the case may be.

(4) Where a person was, at the end of a taxation year of a partnership, a member of the partnership, that person's share of any amount contributed by the partnership in that taxation year that would, if the partnership were a person, be a contribution referred to in subsection (2), shall, for the purposes of subsection (2), be deemed to be a contribution by the taxpayer in the taxpayer's taxation year in which the taxation year of the partnership ended.

DIVISION E - RETURNS, ASSESSMENTS,

PAYMENT AND APPEALS

51 Subsection 70(7), except the portion thereof that is after paragraph (a) thereof, sections 150, 150.1 and 151 and subsections 152(1) to (3.1) and (4) to (9), 153(1) to (3) and 156.1(4) of the Federal Act apply for the purposes of this Act.

52 When a collection agreement is in effect, notwithstanding that the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, if the tax payable under Part I of the Federal Act by the taxpayer for the year is reassessed, the Minister shall reassess, make additional assessments or assess tax, interest or penalties as the circumstances require.

53 Section 155 of the Federal Act applies for the purpose of this Act.

54 (1) Section 156 of the Federal Act applies for the purpose of this Act.

(2) Where, because of subsection 156.1(2) or (3) of the Federal Act, no instalment is required to be made under section 155 or 156 of the Federal Act by an individual for a particular taxation year, the requirements for payment of instalments under Section 53 and subsection (1) do not apply to the individual for that year.

55 (1) Subsections 157(1), (2), (2.1) and (4) of the Federal Act apply for the purpose of this Act.

(2) Where a collection agreement is in effect, a corporation that pays amounts in respect of a taxation year computed pursuant to subparagraphs 157(1)(a)(i), (ii) or (iii) of the Federal Act and that is required to make payments pursuant to subsection 157(1) of the Federal Act, as it applies for the purpose of this Act, shall pay amounts in respect of the year computed pursuant to the same subparagraph as it applies for the purpose of this Act.

56 Subsection 70(2), paragraphs 104(23)(d) and (e), sections 158, 159 and 160, subsections 160.1(1), (3) and (4), sections 160.2 and 160.3, and subsections 161(1) to (7), (9) and (11) of the Federal Act apply for the purpose of this Act.

57 In applying subsection 160.1(1) of the Federal Act for the purpose of this Act, "refund" includes a refund that arises by reason of the provision of this Act

(a) that allows a taxpayer to deduct an amount from the tax payable pursuant to this Act; or

(b) that deems an amount to have been paid by a taxpayer as or on account of the tax payable pursuant to this Act by the taxpayer.

58 (1) Where an individual is deemed under subsection 161(4) of the Federal Act to be liable, in respect of tax payable under Part I of the Federal Act for a taxation year, to pay a part or instalment computed by reference to an amount described in paragraph 161(4)(a), (b) or (c) of the Federal Act, notwithstanding subsection 161(4) of the Federal Act, as it applies for the purposes of this Act, the individual is deemed for the purposes of subsection 161(2) of the Federal Act, as it applies for the purposes of this Act, to be liable to pay, in respect of tax payable under this Act for the year, a part or instalment computed by reference to the same paragraph, as it applies for the purposes of this Act.

(2) Where an individual is deemed under subsection 161(4.01) of the Federal Act to be liable, in respect of tax payable under Part I of the Federal Act for a taxation year, to pay a part or instalment computed by reference to an amount described in paragraph 161(4.01)(a), (b), (c) or (d) of the Federal Act, notwithstanding subsection 161(4.01) of the Federal Act, as it applies for the purposes of this Act, the individual is deemed for the purposes of subsection 161(2) of the Federal Act, as it applies for the purposes of this Act, to be liable to pay, in respect of tax payable under this Act for the year, a part or instalment computed by reference to the same paragraph, as it applies for the purposes of this Act.

59 Subsections 162(1) to (3), (5), (7) and (11) and section 235 of the Federal Act apply for the purpose of this Act.

60 Subsection 163(1), subsection 163(2) as it would apply without the references to subsection 120(2) of the Federal Act therein, and subsections 163(2.1), (3) and (4) of the Federal Act apply for the purpose of this Act.

61 Section 163.1 of the Federal Act applies for the purpose of this Act.

62 (1) Subsections 164(1) to (1.31) and (1.5), (2) and (3) to (7) of the Federal Act apply for the purpose of this Act.

(2) Where a collection agreement is in effect and by reason of a decision referred to in subsection 164(4.1) of the Federal Act a repayment of tax, interest or penalties pursuant to that Act for a taxation year is made to a taxpayer or any security accepted pursuant to that Act for such tax, interest or penalties is surrendered to the taxpayer, subsection 164(4.1) of the Federal Act, as it applies for the purpose of this Act, applies to any overpayment of tax, interest or penalties pursuant to this Act for the year that arises by reason of the decision.

63 Sections 165, 166.1 and 166.2 of the Federal Act apply for the purpose of this Act.

DIVISION F - APPEALS TO THE SUPREME COURT

OF NOVA SCOTIA

64 (1) Section 169 of the Federal Act applies for the purpose of this Act.

(2) An appeal from an assessment under this Act may be taken in respect of any question relating,

(a) in the case of an individual, to the determination of

(i) the individual's residence for the purposes of this Act,

(ii) the individual's income earned in the taxation year in the Province, as defined in clause 7(c), and the individual's income for the year, as defined in clause 7(e),

(iii) the amount of tax payable for a taxation year to the extent that tax payable is based on the tax payable under the Federal Act for that year, as defined in clause 7(g), and the amount of tax payable for a taxation year to the extent that tax payable is based on the individual's taxable income under the Federal Act for that year, or

(iv) any credit against, or deduction from, tax payable by the individual under this Act as provided for in this Act; and

(b) in the case of a corporation, to the determination of

(i) its taxable income earned in the year in the Province, as defined in subsection 40(3), or

(ii) the amount of tax payable for a taxation year based on the taxable income of the corporation for that year,

but no appeal from an assessment lies in respect of the computation of the tax payable under the Federal Act, as defined in clause 7(g), of the taxable income of an individual or of the taxable income of a corporation.

(3) An appeal to the Court shall be instituted by serving upon the Minister of Finance a notice of appeal in duplicate in prescribed form and by filing a copy thereof with the registrar of the Court or the local registrar of the Court for the county or district in which the taxpayer resides.

(4) A notice of appeal shall be served upon the Minister of Finance by being sent by registered mail addressed to the deputy head.

(5) The taxpayer appealing shall set out in the notice of appeal a statement of the allegations of fact, the statutory provisions and the reasons that the taxpayer intends to submit in support of the taxpayer's appeal.

(6) The taxpayer appealing shall pay to the registrar of the Court a fee of fifteen dollars upon the filing of the copy of the notice of appeal with the registrar.

65 (1) The Minister of Finance shall, within sixty days from the day the notice of appeal is received, or within such further time as the Court or a judge thereof may either before or after the expiration of that time allow, serve on the appellant and file in the Court a reply to the notice of appeal admitting or denying the facts alleged and containing a statement of such further allegations of fact and of such statutory provisions and reasons as the Minister of Finance intends to rely on.

(2) The Court or a judge may, in the Court's or the judge's discretion, strike out a notice of appeal or any part thereof for failure to comply with subsection 64(5) and may permit an amendment to be made to a notice of appeal or a new notice of appeal to be substituted for the one struck out.

(3) The Court or a judge may, in the Court's or the judge's discretion,

(a) strike out any part of a reply for failure to comply with this Section or permit the amendment of a reply; and

(b) strike out a reply for failure to comply with this Section and order a new reply to be filed within a time to be fixed by the order.

(4) Where a notice of appeal is struck out for failure to comply with subsection 64(5) and a new notice of appeal is not filed as and when permitted by the Court or a judge, the Court or a judge thereof may, in the Court's or the judge's discretion, dispose of the appeal by dismissing it.

(5) Where a reply is not filed as required by this Section or is struck out under this Section and a new reply is not filed as ordered by the Court or a judge within the time ordered, the Court may dispose of the appeal ex parte or after a hearing on the basis that the allegations of fact contained in the notice of appeal are true.

66 (1) Upon the filing of the material referred to in Sections 64 and 65, the matter is deemed to be an action in the Court and, unless the Court otherwise orders, ready for hearing.

(2) Any fact or statutory provision not set out in the notice of appeal or reply may be pleaded or referred to in such manner and upon such terms as the Court may direct.

67 Sections 166, 167, 171, 179 and 179.1 of the Federal Act apply for the purpose of this Act.

68 Except as provided in regulations prescribed by the Governor in Council, the practice and procedure of the Court apply to every matter deemed to be an action under Section 66 and every judgment and order given or made in every such action may be enforced in the same manner and by the like process as a judgment or order given or made in an action commenced in the Court.

PART III - TAX ON LARGE CORPORATIONS

69 In this Part,

(a) "financial institution", in respect of a taxation year, means a corporation that at any time in the year is

(i) a bank as defined in the Bank Act (Canada) or a credit union, or

(ii) authorized under the laws of Canada, the Province or a province to carry on the business of offering its services as a trustee to the public;

(b) "long-term debt" has the same meaning as in subsection 181(1) of the Federal Act;

70 Subsections 181(3) and (4) of the Federal Act apply for the purpose of this Part.

71 (1) Every corporation 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, 0.5% of the taxable capital employed in the Province for the year as determined under subsection (2); or

(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, 0.25% of the taxable capital employed in the Province for the year as determined under subsection (2).

(2) The taxable capital employed in the Province by a corporation for a taxation year is equal to

(a) where the corporation has no permanent establishment situated outside the Province, the difference between its taxable capital for the year under subsection (4) and its capital deduction for the year under Section 72; or

(b) where the corporation has a permanent establishment situated outside the Province, that proportion determined under subsection (3) of the difference between its taxable capital for the year under subsection (4) and its capital deduction for the year under Section 72.

(3) The proportion referred to in clause (2)(b) shall be determined in accordance with sections 400 to 413 of the Federal Regulations.

(4) Taxable capital for the year means

(a) in the case of a resident corporation, the taxable capital in accordance with section 181.2 of the Federal Act;

(b) in the case of a non-resident corporation, the taxable capital employed in Canada in accordance with section 181.4 of the Federal Act; or

(c) in the case of a corporation that is defined as a financial institution under the Federal Act but not under this Part, the taxable capital in accordance with section 181.3 of the Federal Act.

(5) Where a taxation year of a corporation is less than fifty-one weeks, the amount determined under subsection (1) for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year is of three hundred and sixty-five.

(6) Where a taxation year of a corporation begins before April 1, 1997, and ends after March 31, 1997, the tax otherwise payable under this Section for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year after March 31, 1997, is of the number of days in the taxation year.

(7) Where a taxation year of a corporation begins before April 1, 2002, and ends after March 31, 2002, the tax otherwise payable under this Section for the year in respect of the corporation shall be reduced to that proportion of that amount that the number of days in the year prior to April 1, 2002, is of the number of days in the taxation year.

72 (1) The capital deduction of a corporation for a taxation year is

(a) where the corporation's taxable capital employed in Canada for the year, as determined under subsection 71(4), is less than ten million dollars, five million dollars unless the corporation was related to another corporation in the year, in which case, subject to subsection (4), its capital deduction for the year is nil; or

(b) in any other case, nil.

(2) A corporation that is related to any other corporation in a taxation year of the corporation ending in a calendar year may file with the Minister in the prescribed form an agreement on behalf of the related group of which the corporation is a member under which an amount that does not exceed five million dollars is allocated among all corporations that are members of the related group for each taxation year of each such corporation ending in the calendar year and whose combined taxable capital employed in Canada as defined in subsection 71(4) is less than ten million dollars and at a time when it was a member of the related group.

(3) The Minister may request a corporation that is related to any other corporation at the end of a taxation year to file with the Minister an agreement referred to in subsection (2) and, if the corporation does not file such an agreement within thirty days after the request, the Minister may allocate an amount among the members of the related group of which the corporation is a member for the year not exceeding five million dollars.

(4) Subsections 181.5(4) to (7) of the Federal Act apply mutatis mutandis for the purpose of this Part.

(5) In this Section, a corporation is "related" to another corporation or is a member of a "related group" within the meaning assigned to those expressions by section 251 of the Federal Act.

(6) In this Section, one corporation is "associated" with another in a taxation year within the meaning assigned to that word by section 256 of the Federal Act.

73 No tax is payable under this Part for a taxation year by a corporation included in subsection 181.1(3) of the Federal Act or by a corporation that is a financial institution.

74 Every corporation that is liable to pay tax under this Part for a taxation year shall file with the Minister not later than the day on or before which the corporation is required by Section 51 to file its return of income, a return of capital for the year in the prescribed form containing an estimate of the tax payable under this Part by it for the year.

75 Sections 152, 158 and 159, subsection 161(11), sections 162 to 167 and division J of Part I of the Federal Act apply to this Part.

76 The Governor in Council may make regulations that are deemed necessary or advisable to carry out effectively the intent and purpose of this Part.

77 This Part applies to taxation years ending after March 31, 1997, and for taxation years beginning before April 1, 2002.

78 Notwithstanding anything contained in this Act, the amount of tax payable pursuant to this Part shall not be reduced by any tax credit provided under this Act.

PART IV - ADMINISTRATION AND ENFORCEMENT

Administration

79 Sections 220, 221.1, 224, 225.1 and 225.2 of the Federal Act apply for the purpose of this Act.

80 (1) The Governor in Council may make regulations

(a) prescribing anything that, by this Act, is to be prescribed or is to be determined or regulated by regulation;

(b) defining the Nova Scotia Child Benefit Program;

(d) prescribing anything necessary or advisable to enable Her Majesty in right of Canada to administer, on behalf of Her Majesty in right of the Province, the Nova Scotia Child Benefit Program;

(e) providing in any case of doubt the circumstances in which, and the extent to which, the Federal Regulations apply;

(f) generally to carry out the purposes and the provisions of this Act.

(2) Except to the extent that they are inconsistent with any regulations made under subsection (1) or are expressed by any regulation made under subsection (1) to be inapplicable, the Federal Regulations made under subsection 221(1) of the Federal Act apply mutatis mutandis for the purposes of this Act with respect to all matters enumerated in that subsection.

(3) No regulation made under this Act or under the Federal Act where it is applicable mutatis mutandis has effect for the purposes of this Act until it has been published in the Royal Gazette or the Canada Gazette, as the case may be, but, when so published, a regulation shall, if it so provides, be effective with reference to a period before it was published.

(4) Regulations made under this Act are regulations within the meaning of the Regulations Act.

Enforcement

81 Section 222 of the Federal Act applies for the purpose of this Act.

82 (1) Subsection 223(1), except paragraphs (b), (b.1), (c) and (d) thereof, and subsections 223(2) to (4) of the Federal Act apply for the purpose of this Act.

(2) Where a collection agreement is in effect, subsection (1) does not apply, but the Minister may proceed pursuant to section 223 of the Federal Act for the purpose of collecting any amount payable pursuant to this Act by a taxpayer.

83 The Minister of Finance may issue a warrant directed to the sheriff of any county or district in which any property of the taxpayer is located or situate, for the amount of the tax, interest and penalty, or any of them, owing by the taxpayer, together with interest thereon from the date of the issue of the warrant and the costs, expenses and poundage of the sheriff, and such warrant shall have the same force and effect as an execution order issued out of the Court.

84 Section 224.2 of the Federal Act applies for the purpose of this Act.

85 Section 224.3 of the Federal Act applies for the purposes of this Act.

86 Section 225 of the Federal Act applies for the purpose of this Act.

87 Section 226 of the Federal Act applies for the purpose of this Act.

88 (1) Subsections 227(1) to (5.2), (8), (8.2) to (9), (9.2), and (9.4) to (13) of the Federal Act apply for the purpose of this Act.

(2) The Minister may assess

(b) any person for any amount payable by that person pursuant to subsection 224(4) or (4.1), section 227.1 or 235 of the Federal Act, as they apply for the purpose of this Act, or Section 92,

and, where the Minister sends a notice of assessment to that person, Sections 51 and 56 to 68 are applicable with such modifications as the circumstances require.

(3) Notwithstanding any other provision of this Act or any other enactment, the penalty for failure to remit an amount required to be remitted by a person on or before the day prescribed in the Federal Regulations made for the purposes of subsection 153(1) of the Federal Act, as both those regulations and that subsection apply for the purposes of this Act, shall, unless the person required to remit the amount has, knowingly or under circumstances that amount to gross negligence, delayed in remitting the amount or has, knowingly or under circumstances that amount to gross negligence, remitted an amount less than the amount required to be remitted, apply only to the amount by which the total of all amounts so required to be remitted on or before that day exceeds five hundred dollars.

89 Section 227.1 of the Federal Act applies for the purpose of this Act.

90 Section 230 of the Federal Act applies for the purpose of this Act.

91 (1) Sections 231 to 231.5 of the Federal Act apply for the purpose of this Act.

(2) Sections 232, 233 and 236 of the Federal Act apply for the purpose of this Act.

92 (1) Every person who fails to comply with a regulation made under paragraph 221(1)(d) or (e) of the Federal Act as it applies by virtue of subsection 80(2) is liable in respect of each failure to so comply to a penalty of ten dollars a day for each day of default but not exceeding in all two thousand five hundred dollars.

(2) Every person who fails to comply with a regulation made under Section 80 or incorporated by reference by virtue of subsection (2) thereof is liable to a penalty of ten dollars a day for each day of default but not exceeding in all two thousand five hundred dollars.

Offences

93 (1) Every person who fails to file a return as and when required by or pursuant to this Act or a regulation, or by or pursuant to a provision of the Federal Act or of the Federal Regulations as the provision applies for the purpose of this Act, or who fails to comply with any of subsections 153(1), 227(5) and 230(3), (4) and (6) and sections 231 to 231.5 and 232 of the Federal Act, as it applies for the purpose of this Act, or with an order made pursuant to subsection (2), is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to

(a) a fine of not less than one thousand dollars and not more than twenty-five thousand dollars; or

(b) both the fine referred to in clause (a) and imprisonment for a term not exceeding twelve months.

(2) Subsection 238(2) of the Federal Act applies for the purpose of this Act.

(3) Where a person is convicted pursuant to this Section for failure to comply with a provision of this Act or a regulation or a provision of the Federal Act or of the Federal Regulations that applies, for the purpose of this Act, that person is not liable to a penalty pursuant to subsection 227(8), (8.5), (9) or (9.5) of the Federal Act, as those subsections apply for the purpose of this Act, or pursuant to Section 59 or 92 for the same failure unless that person was assessed for that penalty or that penalty was demanded from that person before the information or complaint giving rise to the conviction was laid or made.

94 Subsections 239(1) and (1.1) of the Federal Act apply for the purpose of this Act.

95 Where a collection agreement is entered into and proceedings under section 238 or 239 of the Federal Act are taken against any person, the Minister may take or refrain from any action against such person contemplated by Section 93 or 94, as the case may be.

96 (1) Every person who, while employed in the administration of this Act,

(a) knowingly communicates or knowingly allows to be communicated to any person not legally entitled thereto any information obtained by or on behalf of the Minister for the purpose of this Act;

(b) knowingly allows any person not legally entitled thereto to inspect or to have access to any book, record, writing, return or other document obtained by or on behalf of the Minister for the purpose of this Act; or

(c) knowingly uses, other than in the course of that person's duties in connection with the administration or enforcement of this Act, any information obtained by or on behalf of the Minister for the purpose of this Act,

is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding twelve months or to both a fine and imprisonment.

(2) Subsection (1) does not apply to the communication of information between

(a) the Minister of National Revenue for Canada and the Minister of Finance of the Province; or

(i) an agreeing province, or

(ii) a non-agreeing province, as defined in clause 105(1)(c), to which an adjusting payment may be made under subsection 105(2).

97 Section 242 of the Federal Act applies for the purpose of this Act.

98 Section 243 of the Federal Act applies for the purpose of this Act.

Procedure and Evidence

99 (1) Subsections 244(1) to (5), (7) to (11), (13) to (18), and (20) to (22) of the Federal Act apply for the purpose of this Act.

(2) Judicial notice shall be taken of

(a) all orders or regulations made under this Act; and

(b) a collection agreement entered into under this Act or any agreement for the collection by Canada of the tax imposed under the income tax statute of an agreeing province,

without such orders, regulations or agreements being specially pleaded or proven.

(3) For the purpose of this Act, anything sent by first-class mail or its equivalent is deemed to have been received by the person to whom it is sent on the day that it was mailed except that a remittance of an amount deducted or withheld as required by this Act or a regulation or by a provision of the Federal Act or of the Federal Regulations, that applies for the purpose of this Act, as it applies for the purpose of this Act, is deemed to have been remitted on the day it is received by the Minister of Finance.

(4) A document purporting to be a collection agreement entered into under this Act or an agreement with Canada for the collection of tax imposed under the income tax statute of an agreeing province that is

(a) published in the Canada Gazette; or

(b) certified as such by or on behalf of

(i) the Minister of Finance, or

(ii) the provincial treasurer, the provincial secretary-treasurer or the minister of finance of the appropriate agreeing province,

shall be received as prima facie evidence of the contents thereof.

(5) Every certificate by the Minister of Finance as to

(a) a taxpayer's tax payable under the Federal Act, as defined in clause 7(g);

(b) a taxpayer's income for the year, as defined in clause 7(e); or

is prima facie evidence that a taxpayer's tax payable under the Federal Act, a taxpayer's income for the year or the taxable income of a corporation, as the case may be, is in the amount set out therein.

(6) Where a collection agreement is entered into, any document or certificate that is executed or issued by the Minister, the Commissioner of Customs and Revenue, or an official of the Canada Customs and Revenue Agency on behalf or in place of the Minister of Finance, the Minister of Finance's deputy or an officer of the Minister of Finance's Department, is deemed, for all purposes of this Act, to be executed or issued by the Minister or Finance, the Minister of Finance's deputy or an officer of the Minister of Finance's Department, as the case may be.

(7) Where no collection agreement is entered into, a reference in this Section to the Royal Canadian Mounted Police shall be construed as a reference to the police force carrying out the duties of a provincial police in the Province.

100 Sections 245 and 246 of the Federal Act apply for the purposes of this Act.

PART V - COLLECTION OF TAX

Subdivision a - Collection Agreement

101 (1) The Collection Agreement entered into between the Government of Canada and the Government of the Province on December 29, 1961, is ratified and confirmed, and any reference in the said Collection Agreement to Chapter 3 of the Acts of 1961, the Individual and Corporation Income Tax Act, shall be read and construed as a reference to this Act.

(2) The Minister of Finance for the Province may, on behalf of the Government of the Province,

(a) enter into an agreement amending the terms and conditions of the Collection Agreement referred to in subsection (1);

(b) enter into a new collection agreement; or

(3) Without in any way limiting Chapter 10 of the Acts of 1961, the Tax Collection Agreement (1961) Act, when a collection agreement is in effect, the Minister of National Revenue for Canada on behalf of the Minister of Finance for the Province may employ all the powers, perform all the duties, and exercise any discretion that the Minister of Finance or the deputy head has under this Act, including the discretion to refuse to permit the production in judicial or other proceedings in the Province of any document that is not, in the opinion of the Minister of National Revenue for Canada, in the interests of public policy to produce.

(4) Without in any way limiting Chapter 10 of the Acts of 1961, the Tax Collection Agreement (1961) Act, when a collection agreement is in effect, the Commissioner of Customs and Revenue may

(a) employ all the powers, perform the duties and exercise any discretion that the Minister has under subsection (3) or otherwise under this Act; and

Payments on Account

102 (1) A collection agreement may provide that where a payment is received by the Minister of Finance on account of tax payable by a taxpayer for a taxation year under this Act, the Federal Act or an income tax statute of another agreeing province, or under any two or more of such Acts or statutes, the payment so received may be applied by the Minister towards the tax payable by the taxpayer under any such Act or statute in such manner as may be specified in the agreement, notwithstanding that the taxpayer directed that the payment be applied in any other manner or made no direction as to its application.

(2) Any payment or part thereof applied by the Minister in accordance with a collection agreement towards the tax payable by a taxpayer for a taxation year under this Act

(a) relieves the taxpayer of liability to pay such tax to the extent of the payment or part thereof so applied; and

(b) is deemed to have been applied in accordance with a direction made by the taxpayer.

Deductions at Source

103 Where a collection agreement is in effect and an amount is remitted to the Minister pursuant to subsection 153(1) of the Federal Act, as it applies for the purpose of this Act, on account of the tax of an individual who is resident on the last day of the taxation year in another agreeing province

(a) no action lies for recovery of such amount by that individual; and

(b) the amount may not be applied in discharge of any liability of that individual under this Act.

104 (1) Where a collection agreement is entered into, an individual resident in the Province on the last day of the taxation year is not required to remit any amount on account of tax payable by the individual under this Act for the taxation year to the extent of the amount deducted or withheld on account of the individual's tax for that year under the income tax statute of another agreeing province.

(2) Where the total amount deducted or withheld on account of tax payable under this Act and under the income tax statute of another agreeing province by an individual resident in the Province on the last day of the taxation year to whom subsection (1) applies exceeds the tax payable by the individual under this Act for that year, the provisions of the Federal Act that apply for the purposes of this Act because of Section 62 apply in respect of such individual as though the excess were an overpayment under this Act.

Subdivision b - Non-agreeing Provinces

105 (1) In this Section,

(a) "adjusting payment" means a payment, calculated in accordance with this Section, made by or on the direction of the Province to a non-agreeing province;

(b) "amount deducted or withheld" does not include any refund made in respect of that amount;

(2) Where, in respect of a taxation year a non-agreeing province is authorized to make a payment to the Province that, in the opinion of the Minister of Finance corresponds to an adjusting payment, the Governor in Council may authorize the Minister of Finance to make an adjusting payment to that non-agreeing province and enter into any agreement that may be necessary to carry out the purposes of this Section.

(4) The adjusting payment to be made under this Section shall be in an amount that is equal to the aggregate of the amounts deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purpose of this Act, in respect of the tax payable for a taxation year by individuals who

(a) file returns under the Federal Act;

(b) are taxable thereunder in respect of that year; and

(5) Where an adjusting payment is to be made to a non-agreeing province and there has been an amount deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purpose of this Act, on account of the tax for a taxation year of an individual who is taxable under the Federal Act in respect of that year and who is resident on the last day of that taxation year in the non-agreeing province,

(a) no action lies for the recovery of such amount by that individual; and

(b) the amount may not be applied in discharge of any liability of that individual under this Act.

(7) Where an adjusting payment to a non-agreeing province is to be made under this Section for a taxation year and the total amount deducted or withheld on account of the tax payable under this Act and on account of the income tax payable under the law of the non-agreeing province by an individual resident in the Province on the last day of the taxation year to whom subsection (6) applies exceeds the tax payable by the individual under this Act for that year, the provisions of the Federal Act that apply for the purposes of this Act because of Section 62 apply in respect of such individual as though the excess were an overpayment under this Act.

(8) Where a collection agreement is entered into and the Government of Canada has agreed in respect of a taxation year to carry out the direction of the Province and to make an adjusting payment on behalf of the Province, the adjusting payment

(a) shall be made out of any money that has been collected on account of tax under this Act for any taxation year; and

(b) shall be the amount calculated by the Minister to be the amount required to be paid under subsection (4),

and the payment thereof discharges any obligation the Government of Canada may have with respect to the payment to the Province of any amount deducted or withheld under subsection 153(1) of the Federal Act, as it applies for the purpose of this Act, to which subsection (5) applies.

Subdivision c - Reciprocal Enforcement of Judgments

106 The Governor in Council may make regulations to enable the enforcement of judgments in respect of taxes in agreeing provinces to be enforced in the Province.

PART VI - OFFSHORE AREA

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

(2) No tax is payable under this Act for a taxation year by a corporation in respect of the taxable income earned by the corporation in the year in the offshore area until the Legislature otherwise determines.

PART X

PROBATE ACT

62 (1) Section 9A of Chapter 359 of the Revised Statutes, 1989, the Probate Act, as enacted by Chapter 1 of the Acts of 1999 (Second Session), is amended by renumbering subsection (1) as (1A) and adding immediately before subsection (1A) the following subsection:

(1) This Section applies only with respect to estates of deceased persons in which the grant of probate or letters of administration was made on or after October 1, 1982 and before the coming into force of Section 9B.

(2) Subsection 9A(1A) of Chapter 359, as enacted by Chapter 1 of the Acts of 1999 (Second Session) and renumbered by subsection (1), is further amended by striking out "estate" in the eighth line and substituting "executor or administrator of the estate from the assets of the estate".

(3) Subsection 9A(2) of Chapter 359, as enacted by Chapter 1 of the Acts of 1999 (Second Session), is amended by striking out "estate" in the first line and substituting "executor or administrator".

(4) Subsection 9A(3) of Chapter 359, as enacted by Chapter 1 of the Acts of 1999 (Second Session), is amended by striking out "estate" in the twelfth line and substituting "executor or administrator of the estate from the assets of the estate".

(5) Subsection 9A(4) of Chapter 359, as enacted by Chapter 1 of the Acts of 1999 (Second Session), is amended by striking out "estate" in the third line and substituting "executor or administrator of the estate from the assets of the estate".

63 Chapter 359 is further amended by adding immediately after Section 9A the following Sections:

9B (1) This Section applies only with respect to estates of deceased persons in which the grant of probate or letters of administration is made on or after the coming into force of this Section.

(2) Upon the granting of any letters of probate or administration of the estate of a deceased person, including letters of administration with the will annexed, letters of probate or administration de bonis non, temporary letters, letters of administration pendente lite or ad colligenda bona, ancillary letters and resealing, the following tax is payable by the executor or administrator of the estate from the assets of the estate to the registrar of the court that makes the grant:

(a) in estates not exceeding $10,000, $70;

(b) in estates exceeding $10,000 but not exceeding $25,000, $150;

(d) in estates exceeding $50,000 but not exceeding $100,000, $700;

(e) in estates exceeding $100,000 but not exceeding $150,000, $700 plus an additional $12 for every $1,000 or fraction thereof in excess of $100,000;

(f) in estates exceeding $150,000 but not exceeding $200,000, $700 plus an additional $12 for each $1000 or fraction thereof in excess of $150,000;

(g) in estates exceeding $200,000, $700 plus an additional $12 for each $1000 or fraction thereof in excess of $200,000.

(3) Where, after the grant of any letters of probate or administration of the estate of a deceased person, including letters of administration with the will annexed, letters of probate or administration de bonis non, temporary letters, letters of administration pendente lite or ad colligenda, ancillary letters or resealing, any document, including any inventory that is, pursuant to this Act, filed with the registrar of the court that made the grant discloses that the value of the property of the deceased person at the time of the death of the deceased person exceeds the value of the estate given in the application for the grant, the value of the estate for the purpose of calculating the tax payable to the registrar is increased by an amount equal to the amount of the excess and the additional tax is payable by the executor or administrator of the deceased person out of the assets of the estate to the registrar of the court when the document is filed.

(4) Where the executor or administrator of an estate pays the tax imposed by this Section, the registrar of the court may provide the following services or documents:

(a) the services or documents referred to in subsection 9A(2);

(b) the examination by the court of a final account of the estate of a deceased person, together with receipts and vouchers in support thereof;

(d) the subscribing of the affidavit in verification of the account;

(e) the filing with the court of the account, affidavits of service and the publication of the citation and all other necessary papers and documents;

(f) the issue of all decrees, including the decree passing the final accounts and the decree allowing distribution.

(5) The taxes collected pursuant to this Section shall be paid over to the Minister of Justice and Attorney General for the use of the Province.

9C The Minister of Finance may commence proceedings to recover any tax payable under Section 9A or 9B that has not been paid.

9D (1) The Governor in Council may make regulations

(a) providing for the refund of overpayment of the taxes imposed by Section 9A or 9B and prescribing the manner in which an application for a refund shall be made;

(b) prescribing procedures to be followed and information or evidence to be given in an application for a grant of probate or letters of administration in order to establish the value of the estate;

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

(2) The exercise by the Governor in Council of the authority contained in subsection (1) is regulations within the meaning of the Regulations Act.

64 Section 4 of Chapter 1 of the Acts of 1999 (Second Session), An Act to Amend Chapter 104 of the Revised Statutes, 1989, the Costs and Fees Act and Chapter 359 of the Revised Statute, 1989, the Probate Act, is amended by striking out "estate" in the second line and substituting " executor or administrator of the estate from the assets of the estate".

PART XI

PROVINCIAL FINANCE ACT

65 Chapter 365 of the Revised Statutes, 1989, the Provincial Finance Act, is amended by adding immediately after Section 15 the following Section:

16 (1) In this Section, "government business enterprise" and "government service organization" mean those entities listed in the Schedule to this Act and any additional entities designated pursuant to Section 80.

(2) A member of the Executive Council responsible for a government business enterprise or a government service organization shall submit to the Minister, in each year, financial statements for the government business enterprise or government service organization on or before June 30th next following the end of the fiscal year for which the statements were prepared.

(3) A government business enterprise or government service organization shall receive approval from the Minister for the implementation of any financial management system to be used in the ongoing financial management or operation of the government business enterprise or government service organization.

(4) The Minister may prescribe the fiscal year and the financial accounting policies and procedures for a government business enterprise or a government service organization.

66 Chapter 365 is further amended by adding immediately preceding Section 44 the following Section:

43 (1) The Minister may, in writing, delegate to any employee of the Department of Finance any duty, act or function that the Minister is required or permitted to do pursuant to Section 35, 47, 48, 51, 54 or 62C.

(2) An authorization given pursuant to subsection (1) may be general or applicable to a particular case and may specify an employee by the employee's name or by the employee's office or title.

(3) Where an authorization is made pursuant to this Section, the authorization applies to every person holding the office or appointed to that title or office while the employee holds that title or office.

(4) An act or thing done or document or instrument executed or signed pursuant to an authorization given pursuant to this Section has the same effect as if the act or thing were done or the document or instrument were executed or signed by the Minister.

67 Section 51 of Chapter 365 is amended by

(a) striking out "Governor in Council" in the fourth and fifth lines and substituting "Minister"; and

(b) adding "and, where the Minister so provides, the Minister may redeem in advance of maturity, purchase, pay, refund or renew the whole or any part of the issue of securities" immediately after "thereof" in the last line.

68 Section 52A of Chapter 365 is repealed and the following Section substituted:

52A Until the amount of the public debt of the Province represented by securities or obligations in currencies other than Canada is twenty per cent or less of the total public debt of the Province,

(a) no financial transaction or series of financial transactions directly affecting the public debt of the Province shall be completed that increases the percentage of the public debt of the Province represented by securities or obligations in currencies other than Canada; and

(b) where a security or obligation issued by the Province for a term greater than one year represented in a currency other than Canada becomes due and must be refinanced, no financial transaction or series of financial transactions for the purpose of such refinancing shall be completed unless the transaction or transactions results in the elimination of foreign currency exposure with respect to the debt represented by the security.

69 Subsection 59(4) of Chapter of 365 is repealed.

70 Chapter 365 is further amended by adding immediately after Section 59 the following Sections:

59A In Sections 59B to 59D,

(a) "financial obligation" means a financial transaction the total liability for which is not included in an appropriation and, for greater certainty but without restricting the generality of the foregoing, includes a guarantee, a performance dividend, the capital expenditure made in respect of a lease, a tangible capital asset, a payroll rebate program or a contingent liability;

(b) "financial transaction" means a transaction that creates a financial liability for the Province, a government business enterprise or a government service organization and, for greater certainty but without limiting the generality of the foregoing, includes a loan, a line of credit, a bond, a debenture, a note, a lease or other security;

(c) "government business enterprise" and "government service organization" mean those entities listed in the Schedule to this Act and any additional entities designated pursuant to Section 80.

59B (1) Notwithstanding any enactment or power or authority that authorizes the entering into of a financial transaction, directly or indirectly, by or on behalf of the Province, a department, a government business enterprise or a government service organization, the Governor in Council may make regulations

(a) requiring that a department, government service organization or government business enterprise obtain the prior approval of the Governor in Council with respect to a financial transaction or a class or classes of financial transactions;

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

(2) The exercise by the Governor in Council of the authority contained in subsection (1) is regulations within the meaning of the Regulations Act.

(3) Where, pursuant to subsection (1) or any enactment, a department, government business enterprise or government service organization requires the approval of the Governor in Council with respect to a financial transaction, the Governor in Council may, prior to considering the request for the approval, refer the request to the Minister for a report with respect to the proposed financial transaction.

(4) Where a report is requested pursuant to subsection (3), the Minister shall provide a report with respect to the following:

(a) whether the cost of the proposed financial transaction is within the limits prescribed for the department, government business enterprise or government service organization for the fiscal year;

(b) the effect of the proposed financial transaction on the financial statements of the Province for the current or a future fiscal year;

(c) whether the terms and conditions of the proposed financial transaction are reasonable and prudent for the purpose of avoiding undue risk of loss or obtaining a reasonable return;

(d) such other information as considered appropriate by the Governor in Council or the Minister.

59C (1) Notwithstanding any enactment or power or authority that authorizes the entering into of a financial obligation, directly or indirectly, by or on behalf of the Province, a department, government business enterprise or government service organization, the person authorized or empowered to enter into a financial obligation or to recommend to the Governor in Council the entering into of a financial obligation shall, instead of entering into the financial obligation or making a recommendation to the Governor in Council, forward the recommendation to the Minister setting out the terms and conditions of, the reasons for, and the request for an authorization for the financial obligation and, upon receipt of such recommendation, the Minister shall forward the recommendation to the Governor in Council with a report on the following:

(a) whether the cost of the proposed financial obligation is within the limits prescribed for financial obligations for the department, the government business enterprise or government service organization for the fiscal year;

(b) the effect of the proposed financial obligation on the financial statements of the Province for the current or a future fiscal year;

(c) whether the terms and conditions of the proposed financial obligation are reasonable and prudent for the purpose of avoiding undue risk of loss or obtaining a reasonable return;

(d) such other information as considered appropriate by the Governor in Council or the Minister.

(2) The Governor in Council may authorize the Minister to enter into a financial transaction referred to in subsection (1) or may authorize the person to enter into such financial transaction.

(3) The Governor in Council may make regulations

(a) respecting the information required to accompany a request for authorization;

(b) exempting a program, a department, a government service organization, a government business enterprise, a financial obligation or a class or classes of financial obligations from the application of this Section;

(c) respecting terms and conditions upon which a program, a department, a government service organization, a government business enterprise, a financial obligation or a class or classes of financial obligation may be exempted from the application of this Section;

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

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

59D (1) Subject to subsection (2), where a department proposes to implement a program or service that the department has not provided in a previous year or for which no appropriation has been made in a previous year, the department shall not implement the program or service unless the department is able to implement the program or service from the total of the funds appropriated for the department for the fiscal year in which the program or service is to be implemented.

(2) The Governor in Council may approve the implementation of the program or service referred to in subsection (1) where

(a) the program or service can be provided within the limits of the total appropriations for the Government for the fiscal year in which the program or service is to be implemented; or

(b) the program or services is required as a result of a natural disaster or other disaster as provided by this Act.

71 (1) Chapter 365 is further amended by adding immediately after Section 73 the following headings, Sections and Schedule:

PART IX

GOVERNMENT ACCOUNTABILITY

74 In this Act,

(a) "deficit" means the amount in a fiscal year by which the total of

(i) net program expenses and net debt servicing costs for the fiscal year as defined in the budgetary summary of the annual Estimates of the Province for that fiscal year,

(ii) consolidation adjustments for government service organizations in that fiscal year, and

(iii) net income or losses for government business enterprises in that fiscal year,

exceed ordinary revenue for the fiscal year as defined in the budgetary summary of the annual Estimates of the Province for that fiscal year;

(b) "fiscal period" means a period of four consecutive fiscal years, with the first four-year fiscal period commencing on April 1, 2000, and each successive four-year fiscal period commencing on April 1st next following the first year of the previous fiscal period;

(c) "government business enterprise" and "government service organization" means those entities listed in the Schedule to this Act and any additional entities designated pursuant to Section 80;

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

(e) "surplus" means the amount by which revenues in a fiscal year exceed the total of

(i) net program expenses and net debt servicing costs for the fiscal year,

(ii) consolidation adjustments for government services organizations in that fiscal year, and

(iii) net income or losses for government business enterprises in that fiscal year.

75 Where an amount is expended in excess of an appropriation referred to in the Appropriations Act, the Minister responsible for expenditures made pursuant to the appropriation shall table in the House of Assembly or, if the House is not sitting, file with the Clerk of the House of Assembly a report setting out the amount of the over-spending and the reasons the expenses were required to be made.

76 In each fiscal year of the Province, commencing with the 2002-2003 fiscal year, the Minister shall not table a budget in the House of Assembly that estimates a deficit for the Province for the fiscal year to which the budget relates.

77 Where the Minister determines that a deficit has occurred, the Minister shall

(a) table, in the House of Assembly or, if the House is not sitting, file with the Clerk of the House of Assembly a report setting out the amount of the deficit and the reasons why it occurred; and

(b) introduce a resolution in the House of Assembly respecting the deficit.

78 (1) Subject to subsection (2), a deficit in a fiscal year shall be recovered no later than the end of the fiscal year next following the year in which the deficit occurred.

(2) Where a deficit occurs in a fiscal year as a result of

(a) an expenditure required in the fiscal year because of a natural or other disaster in the Province that could not have been anticipated and that affects the Province or a region of the Province in a manner that is of urgent public concern;

(b) losses associated with a sale, dissolution, closure or other restructuring of a government service organization or government business enterprise that are not anticipated to have a similar financial impact on future fiscal years; or

(c) an expense incurred with respect to debt servicing costs that exceeds the amount budgeted for debt servicing costs for the fiscal year,

the deficit is not required to be recovered.

79 Notwithstanding any enactment, power or authority, a government service organization or a government business enterprise shall not exceed the net results as set out in its budget without first obtaining the written authorization of the Minister responsible for the government service organization or government business enterprise.

80 (1) The Governor in Council may make regulations designating as a government business enterprise or a government service organization for the purpose of this Act a board, commission, foundation, agency, tribunal, association or other body of persons, whether incorporated or unincorporated,

(a) one or more of the members of which or the members of the board of management or board of directors of which

(i) are appointed by an Act of the Legislature, by order of the Governor in Council or by a Minister,

(ii) if not so appointed, in the discharge of their duties are public officers or servants of the Crown, or

(iii) if not so appointed, for the proper discharge of their duties are, directly or indirectly, responsible to the Crown;

(b) that performs functions pursuant to an enactment;

(d) a controlling interest in the share capital of which is owned by Her Majesty in right of the Province or any of Her Majesty's agencies.

(2) The Governor in Council may make regulations to revoke or rescind a designation made pursuant to subsection (1) or to remove a government business enterprise or a government service organization from the Schedule to this Act.

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

81 (1) The Government shall pursue its policy objectives in accordance with the principles of responsible fiscal management specified in subsection (2).

(2) The principles of responsible fiscal management include

(a) achieving and maintaining Crown debt at prudent levels so as to provide a buffer against factors that may impact adversely on the level of total Crown debt in the future;

(b) achieving and maintaining levels of Crown net worth that provide a buffer against factors that may impact adversely on the Crown's net worth in the future;

(d) pursuing policies that are consistent with achieving a reasonable degree of predictability about the level and stability of tax rates, programs and services for future years; and

(e) adopting and implementing a fiscal decision-making system that is rational, fair, efficient, credible, transparent and accountable.

82 (1) The Minister shall prepare a consolidated fiscal plan for the Government for each fiscal period.

(2) The Minister shall table a consolidated fiscal plan at the time the Minister tables the estimates for a fiscal year in the House of Assembly.

(3) A consolidated fiscal plan shall include

(a) fiscal projections for the four-year period referred to in the consolidated fiscal plan;

(b) the major economic assumptions the Minister made in preparing the plan, including the effect changes in the assumptions may have on the finances of the Government in the fiscal period to which the plan relates;

(c) a summary of the Government's business plan for the first year of the fiscal period, as well as such portions of the business plans for the first year of the fiscal period of a department, government business enterprise or government service organization as the Minister considers appropriate; and

(d) such other information as the Minister considers appropriate.

83 (1) The Minister shall prepare a report for each fiscal year in a form and at the time determined by the Minister.

(2) A report prepared pursuant to subsection (1) shall include

(a) information that shows outcomes against the business plan information for that fiscal year; and

(b) any other information the Minister considers appropriate.

(3) Reports prepared pursuant to subsection (1) shall be submitted to the House of Assembly not later than December 31st next following the end of the fiscal year reported on and, if the House is not sitting, the Minister shall file the report with the Clerk of the House.

84 (1) The Governor in Council may make regulations

(a) defining any word or expression used but not defined in this Act;

(b) deemed necessary or advisable to carry out effectively the intent and purpose of this Act.

(2) The exercise by the Governor in Council of the authority contained in subsection (1) is regulations within the meaning of the Regulations Act.

SCHEDULE

Government Service Organizations

Annapolis Valley Regional School Board

Art Gallery of Nova Scotia

Bedford Waterfront Development Corporation

Cape Breton Healthcare Complex

Cape Breton Victoria Regional School Board

Central Regional Health Board

Check Inns Limited

Chignecto-Central Regional School Board

Collège de l'Acadie

Conseil Scolaire Acadien Provincial

Eastern Regional Health Board

Fisheries and Aquaculture Development Fund

Halifax Regional School Board

Industrial Expansion Fund

Insured Prescription Drug Plan Trust Fund

Izaak Walton Killam-Grace Health Centre

Law Reform Commission

Northern Regional Health Board

Nova Scotia Arts Council

Nova Scotia Business Development Corporation

Nova Scotia Community College

Nova Scotia Crop & Livestock Insurance Commission

Nova Scotia Farm Loan Board

Nova Scotia Film Development Corporation

Nova Scotia Freedom of Information and Protection of Privacy Office

Nova Scotia Gaming Foundation

Nova Scotia Harness Racing Incorporated

Nova Scotia Hospital

Nova Scotia Housing Development Corporation

Nova Scotia Housing Development Fund

Nova Scotia Innovation Corporation

Nova Scotia Legal Aid Commission

Nova Scotia Municipal Finance Corporation

Nova Scotia Police Commission

Nova Scotia Power Finance Corporation

Nova Scotia Primary Forests Products Marketing Board

Nova Scotia Utility and Review Board

Novaco Limited

Provincial Community Pastures Board

Provincial Drug Distribution Program

Public Archives

Queen Elizabeth II Health Sciences Centre

Resource Recovery Fund Board Incorporated

Rockingham Terminal Incorporated

Sherbrooke Restoration Commission

Southwest Regional School Board

Strait Regional School Board

Sydney Environmental Resources Limited

Tidal Power Limited

Trade Centre Limited

Upper Clements Family Theme Park Limited

Waterfront Development Corporation

Western Regional Health Board

Government Business Enterprises

Halifax-Dartmouth Bridge Commission

Highway 104 Western Alignment Corporation

Nova Scotia Gaming Corporation

Nova Scotia Liquor Commission

Nova Scotia Resources Limited

Sydney Steel Corporation

(2) For greater certainty, Sections 76 to 78 of Chapter 365, as enacted by subsection (1), apply to the 2002-2003 and subsequent fiscal years of the Province.

PART XII

SENIOR CITIZENS' FINANCIAL AID ACT

72 Clause 18(b) of Chapter 419 of the Revised Statutes, 1989, the Senior Citizens' Financial Aid Act, is repealed.

PART XIII

STOCK SAVINGS PLAN ACT

73 Chapter 445 of the Revised Statutes, 1989, the Stock Savings Plan Act, is repealed.

PART XIV

SUMMARY PROCEEDINGS ACT

74 Section 4A of Chapter 450 of the Revised Statutes, 1989, the Summary Proceedings Act, is repealed and the following Section substituted:

4A Upon conviction following a hearing, the defendant shall pay a charge of one hundred dollars, except where the conviction is for a parking infraction, as defined in subsection (1) of Section 8A, in which case the defendant shall pay a charge of twenty dollars.

75 (1) Subsection 8(6) of Chapter 450 is amended by adding "and a charge of one hundred dollars or twenty dollars for a parking infraction as defined in subsection (1) of Section 8A" immediately after "offence" in the third line.

(2) Clause 8(15)(a) of Chapter 450, as amended by Chapter 18 of the Acts of 1994-95, is further amended by

(a) adding "and a charge of one hundred dollars or twenty dollars for a parking infraction as defined in subsection (1) of Section 8A" immediately after "offence" in the fifth line; and

(b) adding "and a charge of one hundred dollars or twenty dollars for a parking infraction as defined in subsection (1) of Section 8A" immediately after "penalty" in the last line.

(3) Subsection 8(17) of Chapter 450 is amended by adding "and the charge" immediately after "penalty" in the second line.

76 Subsection 8A(7) of Chapter 450, as enacted by Chapter 18 of the Acts of 1994-95, is amended by adding "except that the one hundred dollar charge referred to in that Section shall be read as twenty dollars" immediately after "Section" in the second and third lines.

77 Subsection 9(5) of Chapter 450 is amended by adding "which shall include a charge of one hundred dollars or twenty dollars for a parking infraction as defined in subsection (1) of Section 8A" immediately after "provides" in the second line.

PART XV

TEACHERS' COLLECTIVE BARGAINING ACT

78 Subsection 19(9) of Chapter 460 of the Revised Statutes, 1989, the Teachers' Collective Bargaining Act, is repealed and the following subsection substituted:

(9) The school board shall pay the fees and expenses of the member appointed to the arbitration board by or on behalf of the school board, the Union shall pay the fees and expenses of the member appointed to the arbitration board by or on behalf of the Union, and the school board and the Union shall each pay one half of the fees of, and expenses incurred by, the chairman of the arbitration board.

79 (1) Subsection 26(2) of Chapter 460 is amended by striking out "(9)" in the third line and substituting "(8)".

(2) Section 26 of Chapter 460 is further amended by adding immediately after subsection (2) the following subsection:

(3) The Union shall pay the fees and expenses of the member appointed to the arbitration board by the Union, the Minister of Education shall pay the fees and expenses of the member appointed to the arbitration board by the Minister of Education, and the Union and the Minister of Education shall each pay one half of the fees of, and expenses incurred by, the chairman of the arbitration board.

80 Sections 57 and 58 of Chapter 460 are repealed and the following Section substituted:

57 Each of the parties before a conciliation board shall pay the fees and expenses of the member appointed to the conciliation board by or on behalf of that party and each of the parties shall pay one half of the fees of, and expenses incurred by, the chairman of the conciliation board.

PART XVI

TRADE UNION ACT

81 Subsections 43(2) to (4) of Chapter 475 of the Revised Statutes, 1989, the Trade Union Act, are repealed and the following subsections substituted:

(2) The employer or the employers' organization and the trade union that are parties to the arbitration shall each pay one half of the fees of, and the expenses incurred by, an arbitrator referred to in subsection (1).

(3) Where the arbitration is conducted by an arbitration board referred to in subsection (1), the employer or the employers' organization shall pay the fees and expenses of the member appointed to the arbitration board by the employer or the employers' organization, the trade union shall pay the fees and expenses of the member appointed to the arbitration board by the trade union and the employer or employers' organization and the trade union shall each pay one half of the fees of, and the expenses incurred by, the chairman of the arbitration board.

(4) Where an arbitrator or an arbitration board renders a decision in respect of a dispute or difference, the arbitrator or the chairman of the arbitration board, as the case may be, shall transmit a copy of the written decision to the Minister and to the parties at the same time.

82 Sections 74 and 75 of Chapter 475 are repealed and the following Sections substituted:

(2) The chairman and the other members of an industrial inquiry commission shall be paid such remuneration as the Minister determines along with actual and reasonable travelling and living expenses for each day a member of the commission is absent from the member's place of residence in connection with the work of the commission.

(3) All expenses of an industrial inquiry commission shall be allowed and paid upon the presentation of an account, approved by the chairman of the commission.

(4) The remuneration referred to in subsections (1) and (2) and the expenses referred to in subsection (3) shall be paid by the Minister.

75 Each of the parties before a conciliation board shall pay the fees and expenses of the member appointed to the conciliation board by that party and each of the parties shall pay one half of the fees and expenses of the chairman of the conciliation board.

83 Subsection 106(7) of Chapter 475 is repealed and the following subsection substituted:

(7) Each of the parties to a conciliation pursuant to this Section shall pay the fees and expenses of the member appointed to the Construction Industry Conciliation Board by that party and each of the parties shall pay one half of the fees and expenses of the chairman of the Board.

84 Subsections 107(9) and (10) of Chapter 475 are repealed and the following subsections substituted:

(9) An arbitrator appointed pursuant to this Section who renders a decision in respect of a dispute or difference shall transmit a copy of the written decision to the Minister and to the parties at the same time.

(10) The employer or the employers' organization and the trade union that are parties to the collective agreement shall each pay one half of the fees of, and the expenses incurred by, an arbitrator appointed pursuant to this Section.

PART XVII

VENTURE CORPORATIONS ACT

85 (1) Subsection 25(1) of Chapter 488 of the Revised Statutes, 1989, the Venture Corporations Act, is amended by striking out "42 and subsection (1) of Section 43" in the first line and substituting "90 and subsection (1) of Section 91".

(2) Subsection 25(2) of Chapter 488 is amended by striking out "42 and subsection (1) of Section 43" in the first line and substituting "90 and subsection (1) of Section 91".

PART XVIII

VICTIMS' RIGHTS AND SERVICES ACT

86 Clause 11A(1)(h) of Chapter 14 of the Acts of 1989, the Victims' Rights and Services Act, is repealed.

87 Sections 11C and 11G of Chapter 14 are repealed.

88 Subsection 11H(2) of Chapter 14 is repealed.

89 Sections 11I and 11J of Chapter 14 are repealed.

90 (1) Subsection 11L(1) of Chapter 14, as enacted by Chapter 36 of the Acts of 1992, is amended by striking out "or a person whose award is varied pursuant to Section 11J" in the second and third lines.

(2) Subsection 11L(3) of Chapter 14 is repealed.

91 Section 11Q of Chapter 14 is repealed.

92 Subsection 14(1) of Chapter 14, as amended by Chapter 36 of the Acts of 1992, is further amended by

(a) adding "authority, jurisdiction," immediately before "quorum" in the second line of clause (ci); and

(b) adding immediately after clause (ck) the following clauses:

(cl) prescribing any item or class of expense, loss, damages or maintenance for which compensation may be awarded by the Director;

(cm) respecting interim payments;

PART XIX

WORKERS' COMPENSATION ACT

93 Section 269(1) of Chapter 10 of the Acts of 1994-95, the Workers' Compensation Act, is repealed and the following subsection substituted:

(1) The budget of the Program, as approved by the Governor in Council, shall be paid out of the Accident Fund.

PART XX

EFFECTIVE DATES

94 Sections 2 and 3 have effect on and after April 12, 2000.

95 Section 4 has effect on and after April 1, 2000.

96 Section 18 comes into force on such day as the Governor in Council orders and declares by proclamation.

97 (1) Subsections 38(2), (3), (4) and (5) have effect on and after November 23, 1999.

(2) Clauses 2(1)(c), (e) and (f) of Chapter 217, as enacted by subsection 21(1), subsection 21(6) and subsection 52(4) of Chapter 217, as enacted by subsection 56(2) have effect on and after November 1, 1999.

(3) Section 52 has effect on and after June 18, 1998.

(4) Subsection 27(2), subsection 33(3) and Section 37 have effect on and after June 30, 1996.

(5) Subsection 23(1), subsections 5(2) and (3) of Chapter 217, as enacted by Section 26, subsection 28(1), subsection 7(5) of Chapter 217, as enacted by subsection 28(2) and Sections 29 and 30 have effect on and after March 1, 1994.

98 Section 61 has effect on and after January 1, 2000.

99 Section 62 has effect on and after October 28, 1999.

100 Section 73 has effect on and after January 1, 2000.

This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2000 Crown in right of Nova Scotia. Created June 9, 2000. Send comments to legc.office@gov.ns.ca.

BILL NO. 46

(as amended)

Financial Measures (2000) Act

An Act Respecting Certain Financial Measures

An Act Respecting
Certain Financial Measures