BILL NO. 158

(as passed, with amendments)

1st Session, 60th General Assembly
Nova Scotia
56 Elizabeth II, 2007



Government Bill



Financial Measures (2007) Act

CHAPTER 9 OF THE ACTS OF 2007



The Honourable Michael G. Baker, Q.C.
Minister of Finance



First Reading: March 28, 2007 (LINK TO BILL AS INTRODUCED)

Second Reading: April 3, 2007

Third Reading: April 13, 2007 (WITH COMMITTEE AMENDMENTS)

Royal Assent: April 13, 2007

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 (2007) Act.

PART I

ASSESSMENT ACT

2 Clause 2(tc) of Chapter 23 of the Revised Statutes, 1989, the Assessment Act, as enacted by Chapter 9 of the Acts of 2005, is amended by striking out "consecutive" in the third line.

3 Subsection 14A(6) of Chapter 23, as enacted by Chapter 9 of the Acts of 2005, is amended by striking out "consecutive" in the ninth line.

PART II

COMPANIES ACT

4 (1) Subsection 5(2) of Chapter 81 of the Revised Statutes, 1989, the Companies Act, as enacted by Chapter 5 of the Acts of 2002 and amended by Chapter 3 of the Acts of 2004, is further amended by striking out "four" in the second line and substituting "one".

(2) Subsection 5(3) of Chapter 81, as enacted by Chapter 5 of the Acts of 2002 and amended by Chapter 3 of the Acts of 2004, is further amended by striking out "four" in the second line and substituting "one".

PART III

CORPORATIONS REGISTRATION ACT

5 Subsection 5(4) of Chapter 101 of the Revised Statutes, 1989, the Corporations Registration Act, is repealed and the following subsections substituted:

6 (1) Section 12 of Chapter 101, as amended by Chapter 5 of the Acts of 2002 and Chapter 3 of the Acts of 2004, is further amended by adding immediately after subsection (1) the following subsection:

(2) Subsection 12(2) of Chapter 101, as amended by Chapter 3 of the Acts of 2004, is further amended by striking out "thirty dollars" in the third line and substituting "thirty-two dollars and four cents".

(3) Subsection 12(2A) of Chapter 101, as enacted by Chapter 3 of the Acts of 2004, is amended by striking out "ninety-five dollars" in the second line and substituting "one hundred and one dollars and forty-six cents".

(4) Subsection 12(2B) of Chapter 101, as enacted by Chapter 3 of the Acts of 2004, is amended by striking out "two hundred and twenty dollars" in the second and third lines and substituting "two hundred and thirty-four dollars and ninety-six cents".

(5) Subsection 12(2C) of Chapter 101, as enacted by Chapter 3 of the Acts of 2004, is amended by striking out "two hundred and seventy dollars" in the second and third lines and substituting "two hundred and eighty-eight dollars and thirty-six cents".

(6) Subsection 12(3A) of Chapter 101, as enacted by Chapter 5 of the Acts of 2002 and amended by Chapter 3 of the Acts of 2004, is further amended by striking out "two thousand" in the third line and substituting "two thousand seven hundred and fifty".

(7) Subsection 12(7) of Chapter 101, as amended by Chapter 3 of the Acts of 2004, is further amended by striking out "seventy dollars" in the second last and last lines and substituting "eighty-eight dollars and thirty-six cents".

(8) Subsection 12(8) of Chapter 101, as amended by Chapter 3 of the Acts of 2004, is further amended by striking out "thirty dollars" in the fourth line and substituting "fifty-nine dollars and twenty-four cents".

PART IV

EQUITY TAX CREDIT ACT

7 Clause 20(b) of Chapter 3 of the Acts of 1993, the Equity Tax Credit Act, is repealed and the following clause substituted:

PART V

FREEDOM OF INFORMATION AND
PROTECTION OF PRIVACY ACT

8 Section 11 of Chapter 5 of the Acts of 1993, the Freedom of Information and Protection of Privacy Act, as amended by Chapter 5 of the Acts of 2002, is further amended by adding immediately after subsection (2) the following subsection:

9 Subsections 32(4) to (6) of Chapter 5 are repealed.

PART VI

HOME OWNERSHIP SAVINGS PLAN (NOVA SCOTIA) ACT

10 Chapter 6 of the Acts of 1989, the Home Ownership Savings Plan (Nova Scotia) Act, is repealed.

PART VII

HOMES FOR SPECIAL CARE ACT

11 Chapter 203 of the Revised Statutes, 1989, the Homes for Special Care Act, is amended by adding immediately after Section 18, the following Section:

12 Subsection 19(1) of Chapter 203 is amended by adding immediately after clause (h), the following clause:

PART VIII

INCOME TAX ACT

13 Subsections 10(5) to (8) of Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, are repealed and the following subsections substituted:

14 (1) Clause 17A(1)(e) of Chapter 217, as enacted by Chapter 2 of the Acts of 2006, is amended by striking out "in which a qualified individual graduates from an eligible program" in the second and third lines.

(2) Section 17A of Chapter 217, as enacted by Chapter 2 of the Acts of 2006, is further amended by adding immediately after subsection (6) the following subsections:

15 Section 21 of Chapter 217 is repealed and the following Section substituted:

16 Sections 23 to 29 of Chapter 217 are repealed and the following Sections substituted:

17 The description of A in Section 32A of Chapter 217 is repealed and the following substituted:

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

(2) Subsection 35(4) of Chapter 217 is repealed and the following subsection substituted:

19 The heading immediately preceding Section 36 and Section 36 of Chapter 217 are repealed and the following heading and Section substituted:

36 (1) In this Section,

(a) "approved institution" means

(b) "eligible taxation year" means the year an individual graduates from an approved institution and the two taxation years immediately following;

(c) "program of studies" means a program of studies as defined by the Canada Financial Assistance Regulations;

(d) "proof of graduation" means

(2) Subject to subsection (3), an individual may deduct from tax otherwise payable pursuant to this Act in an eligible taxation year

(a) an amount not exceeding the aggregate amount of $1,000 if the individual graduates from an approved institution in the year 2007; or

(b) an amount not exceeding the aggregate amount of $2,000 if the individual graduates from an approved institution after the year 2007.

(3) An individual may claim a deduction pursuant to this Section if the individual

(a) other than an individual that is a trust, was resident in the Province on December 31st of the taxation year, and includes an individual who died in the taxation year and was a resident of the Province on the day of death;

(b) provides proof of graduation from an approved institution for a taxation year after 2006; and

(c) files proof of graduation for the eligible taxation year with the individual's annual return for the taxation years in respect of which the deduction is claimed.

(4) An individual is not entitled to claim the deduction referred to in this Section if the individual completed a program of studies at an approved institution since 2006 and has previously received the deduction under this Section or Section 17A.

(5) No amount may be deducted pursuant to this Section on a separate return of income filed pursuant to subsection 70(2) or 150(4), paragraph 104(23)(d) or paragraph 128(2)(e) of the Federal Act.

(6) For the purpose of computing an individual's deduction under this Section for a taxation year that ends in a calendar year in which the individual becomes bankrupt, the total of the amounts deductible for all taxation years of the individual in the calendar year under this Section cannot exceed the amount that would have been deductible under this Section with respect to the calendar year if the individual had not become bankrupt.

(7) The Governor in Council may make regulations

(a) respecting criteria or requirements for a program of studies at a post-secondary level at an approved institution;

(b) designating approved institutions;

(c) respecting such other requirements for documentation as proof of graduation;

(d) defining, expanding or restricting the meaning of any word or expression used but not defined in this Section;

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

(8) A regulation made pursuant to this Section may be made retroactive to a day not earlier than January 1, 2007.

20 (1) Clauses 38(2)(a) and (b) of Chapter 217 are repealed and the following clauses substituted:

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

(b) either

(2) Section 38 of Chapter 217 is further amended by adding immediately after subsection (5) the following subsections:

(6) The Governor in Council may make regulations prescribing dates for the purpose of this Section.

(7) The exercise by the Governor in Council of the authority contained in subsection (6) is regulations within the meaning of the Regulations Act.

21 Chapter 217 is further amended by adding immediately after Section 38 the following heading and Section:

22 (1) Subsection 42(2) of Chapter 217 is repealed and the following subsection substituted:

(2) Subsection 42(3) of Chapter 217, as enacted by Chapter 4 of the Acts of 2000, is amended by adding "for the Province" immediately after "Finance" in the second line.

23 (1) Subsection 47(1) of Chapter 217, as enacted by Chapter 4 of the Acts of 2000, is amended by striking out "by the Minister of Finance" in the third line.

(2) Subsection 47(2) of Chapter 217, as amended by Chapter 2 of the Acts of 2006, is further amended by

(a) striking out "to residents of the Province" in the last lines of paragraphs (a)(ii)(B) and (C) and (iii)(B);

(b) striking out subclause (a)(iv) and substituting the following subclause:

and

(c) striking out "or" in the fourth line of clause (b) and substituting "and".

(3) Clause 47(2A)(b) of Chapter 217 is repealed and the following clause substituted:

(4) Subsection 47(3) of Chapter 217, as enacted by Chapter 4 of the Acts of 2000, is amended by striking out "subsection (2)" in the second line and substituting "subsections (2) and (2A)".

24 Chapter 217 is further amended by adding immediately after Section 47 the following heading and Section:

47A (1) In this Section,

(a) "eligible corporation" means a corporation, as defined by the regulations, that satisfies the conditions prescribed by the regulations;

(b) "eligible expenditure" means the amount determined under the rules prescribed by the regulations;

(c) "eligible product" means, in respect of a product developed by an eligible corporation, a product

(d) "eligible product developed by an eligible corporation" means a product developed and completed in accordance with the conditions specified in the regulations;

(e) "qualifying expenditure" means the amount determined under the rules prescribed by the regulations;

(f) "total expenditure" means the amount determined under the rules prescribed by the regulations.

(2) A corporation that is an eligible corporation in the taxation year and complies with the requirements of this Section may deduct from tax otherwise payable in the taxation year by the corporation an amount equal to the lesser of

(a) the sum of

or

(b) the sum of

(3) In order to be eligible to deduct or claim an amount in respect of a deduction under this Section for a taxation year, an eligible corporation shall apply in the manner prescribed by regulation to

(a) the Minister of Finance of the Province, or a person designated by the Minister of Finance of the Province, for certification of its eligible products for the purpose of this Section; and

(b) the Minister of Finance of the Province, or a person designated by the Minister of Finance of the Province, for certification of the amount of the qualifying expenditure and the amount of the eligible corporation's tax credit under this Section applicable to the eligible product.

(4) Where the Minister of Finance of the Province, or a person designated by the Minister of Finance of the Province, allows a deduction pursuant to this Section to an eligible corporation for a taxation year, a certificate shall be issued to the eligible corporation for the taxation year, certifying in respect of each eligible product the estimated amount of the corporation's tax credit under this Section applicable to the product.

(5) In order to deduct or claim an amount under this Section for a taxation year, an eligible corporation shall deliver to the Minister with its return for the taxation year the certificate for the taxation year that is issued under subsection (4).

(6) This Section applies with respect to expenditures by an eligible corporation incurred after December 31, 2007, or such earlier date as the Governor in Council may order by regulation, and before January 1, 2013, that are included as eligible expenditures or total expenditures for an eligible product.

(7) 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 to

(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.

(8) A corporation that has claimed and is eligible for a tax credit under this Section for a taxation year is deemed to have paid, at the time referred to in paragraph 157(1)(b) of the Federal Act, as that paragraph relates to that taxation year, the amount of that credit on account of its tax payable under this Act.

(9) The Governor in Council may make regulations

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

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

(c) prescribing the criteria for determining when an expenditure has been incurred in an eligible geographic area;

(d) prescribing eligible geographic areas of the Province;

(e) designating the date for expenditures for the purpose of subsection (6);

(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.

(10) A regulation made pursuant to this Section may be made retroactive to a date not earlier than January 1, 2007.

25 Subsection 71(1) of Chapter 217, as enacted by Chapter 6 of the Acts of 2005 and amended by Chapter 2 of the Acts of 2006, is further amended by

(a) striking out "years" in the second lines of subclauses (a)(ii) to (ix) and substituting in each case "year"; and

(b) striking out "years" in the second lines of subclauses (b)(vii) to (ix) and substituting in each case "year".

26 Section 77 of Chapter 217, as enacted by Chapter 4 of the Acts of 2000 and amended by Chapter 5 of the Acts of 2002, Chapter 4 of the Acts of 2003, Chapter 6 of the Acts of 2005 and Chapter 2 of the Acts of 2006, is further amended by striking out "June 30" in the last line and substituting "July 1".

27 (1) Clauses 78A(1)(a) and (b) of Chapter 217 are repealed and the following clauses substituted:

(a) "eligible property" means property of Class 43.1 and Class 43.2 of Schedule II of the Federal Regulations,

(b) "energy tax credit" of a corporation at the end of the taxation year for expenditures made in a taxation year ending on or after July 1, 2006, means the amount, if any, by which the aggregate of

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 Part 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 the year.

(2) Subsections 78A(2) to (4) of Chapter 217 are repealed and the following subsections substituted:

PART IX

LIQUOR CONTROL ACT

28 Chapter 260 of the Revised Statutes, 1989, the Liquor Control Act, is amended by adding immediately after Section 50 the following Section:

PART X

MEMBERS AND PUBLIC EMPLOYEES DISCLOSURE ACT

29 Subclause 21A(1)(a)(ii) of Chapter 4 of the Acts of 1991, the Members and Public Employees Disclosure Act, as enacted by Chapter 1 of the Acts of 2007, is amended by striking out "received at least fifteen per cent of the votes cast" in the third and fourth lines and substituting "was registered pursuant to Section 177A of the Elections Act on January 1, 2007".

PART XI

MOTOR VEHICLE ACT

30 Subsection 68(1) of Chapter 293 of the Revised Statutes, 1989, the Motor Vehicle Act, is amended by striking out "one hundred dollars" in the fourth line and substituting "one hundred and six dollars and eighty cents".

PART XII

MUNICIPAL GOVERNMENT ACT

31 Section 471 of Chapter 18 of the Acts of 1998, the Municipal Government Act, as amended by Chapter 9 of the Acts of 2003, is further amended by adding immediately after subsection (2) the following subsection:

32 Subsections 487(4) to (6) of Chapter 18 are repealed.

PART XIII

PAYMENT INTO COURT ACT

33 Section 4 of Chapter 338 of the Revised Statutes, 1989, the Payment into Court Act, as amended by Chapter 3 of the Acts of 2004, is further amended by striking out "thirty-three" in the sixth line and substituting "sixty-nine".

PART XIV

PERSONAL PROPERTY SECURITY ACT

34 Subsection 44A(1) of Chapter 13 of the Acts of 1995-96, the Personal Property Security Act, as enacted by Chapter 3 of the Acts of 2004, is amended by

(a) striking out "$21.30" in the fifth line of clause (a) and substituting "$22.75";

(b) striking out "$7.45" in the seventh line of clause (a) and substituting "$7.96";

(c) striking out "$500.00" in the fourth line of clause (b) and substituting "$534.00";

(d) striking out "$7.45" in the fifth line of clause (c) and substituting "$7.96";

(e) striking out "$500.00" in the fourth line of clause (d) and substituting "$534.00";

(f) striking out "$10.00" in clause (e) and substituting "$10.68"; and

(g) striking out "$500.00" in the second line of clause (f) and substituting "$534.00".

PART XV

PROBATE ACT

35 Subsection 87(2) of Chapter 31 of the Acts of 2000, the Probate Act, as amended by Chapter 5 of the Acts of 2001, Chapter 5 of the Acts of 2002 and Chapter 3 of the Acts of 2004, is further amended by

(a) striking out "70" in clause (a) and substituting "74.76";

(b) striking out "176" in the second line of clause (b) and substituting "187.97";

(c) striking out "293" in the second line of clause (c) and substituting "312.92";

(d) striking out "820" in the second line of clause (d) and substituting "875.76";

(e) striking out "820" in the first line of clause (e) and substituting "875.76"; and

(f) striking out "$13.85" in the second line of clause (e) and substituting "14.79".

PART XVI

PUBLIC SERVICE SUPERANNUATION ACT

36 Subsection 9(1) of Chapter 377 of the Revised Statutes, 1989, the Public Service Superannuation Act, as amended by Chapter 3 of the Acts of 2004, is further amended by

(a) striking out "six" in the first line of clause (a) and substituting "seven";

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

and

(c) striking out "eight" in the first line of clause (c) and substituting "nine and six-tenths".

PART XVII

REVENUE ACT

37 Subsection 34(1) of Chapter 17 of the Acts of 1994-95, the Revenue Act, as amended by Chapter 21 of the Acts of 1996, Chapter 3 of the Acts of 1997, Chapter 13 of the Acts of 1998, Chapter 5 of the Acts of 1999 (2nd Session), Chapter 3 of the Acts of 2001, Chapter 48 of the Acts of 2001, Chapter 5 of the Acts of 2002, Chapter 4 of the Acts of 2003 and Chapter 3 of the Acts of 2004, is further amended by

(a) striking out "fifteen" in the first line of clause (a) and substituting "sixteen";

(b) striking out "fourteen" in the first line of clause (b) and substituting "fifteen";

(c) striking out "fifteen" in the first line of clause (c) and substituting "sixteen"; and

(d) striking out "six" in the first line of clause (e) and substituting "seven".

PART XVIII

SALES TAX ACT

38 (1) Subsection 13(1) of Chapter 31 of the Acts of 1996, the Sales Tax Act, as amended by Chapter 2 of the Acts of 2006, is further amended by

(a) adding immediately after clause (d) the following clause:

and

(b) adding "or (da)" immediately after "(d)" in the last line of clause (fa).

(2) Section 13 of Chapter 31, as amended by Chapter 2 of the Acts of 2006, is further amended by adding immediately after subsection (3) the following subsections:

39 Section 13A of Chapter 31 is repealed and the following Section substituted:

PART XIX

SECURITIES ACT

40 Chapter 418 of the Revised Statutes, 1989, the Securities Act, is amended by adding immediately after Section 150C the following Section:

PART XX

TRUST AND LOAN COMPANIES ACT

41 Section 16A of Chapter 7 of the Acts of 1991, the Trust and Loan Companies Act, is repealed and the following Section substituted:

PART XXI

WIND TURBINE FACILITIES MUNICIPAL TAXATION ACT

42 Subsection 2(2) of Chapter 22 of the Acts of 2006, the Wind Turbine Facilities Municipal Taxation Act, is amended by striking out "September" in the second line and substituting "March".

43 Section 10 of Chapter 22 is repealed and the following Section substituted:

PART XXII

EFFECTIVE DATES

44 (1) This Act, except Sections 4 to 7, 13 to 19, 21, 23, 25 to 27, 29, 30, 33 to 37, 39 and 41 to 43, come into force on such day as the Governor in Council orders and declares by proclamation.

(2) Section 17, subsection 18(2) and Section 23 have effect on and after January 1, 2005, upon the Governor in Council so ordering and declaring by proclamation.

(3) Sections 14 and 15 and subsection 18(1) have effect on and after January 1, 2006, upon the Governor in Council so ordering and declaring by proclamation.

(4) Sections 7, 13 and 25 to 27 have effect on and after July 1, 2006, upon the Governor in Council so ordering and declaring by proclamation.

(5) Section 39 has effect on and after December 1, 2006, upon the Governor in Council so ordering and declaring by proclamation.

(6) Sections 16, 19, 21 and 29 have effect on and after January 1, 2007, upon the Governor in Council so ordering and declaring by proclamation.

(7) Sections 42 and 43 have effect on and after January 12, 2007, upon the Governor in Council so ordering and declaring by proclamation.

(8) Section 37 has effect on and after March 24, 2007, upon the Governor in Council so ordering and declaring by proclamation.

(9) Sections 4 to 6, 33 to 36 and 41 have effect on and after April 1, 2007, upon the Governor in Council so ordering and declaring by proclamation.

(10) Section 30 has effect on and after June 1, 2007, upon the Governor in Council so ordering and declaring by proclamation.


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