BILL NO. 7

1st Session, 58th General Assembly
Nova Scotia
48 Elizabeth II, 1999

Government Bill

Financial Measures (1999) Act

The Honourable Neil J. LeBlanc
Minister of Finance

First Reading: October 20, 1999

(Explanatory Notes)

Second Reading: November 1, 1999

Third Reading: November 9, 1999 (WITH COMMITTEE AMENDMENTS)

Clause 1 sets out the short title of the Act.

Clause 2 provides that the Expenditure Control Act does not apply to the 1998-99 and 1999-2000 fiscal years of the Province.

Clause 3 removes a reference in the Financial Measures (1998) Act to a date that results in the manufacturing and processing investment tax credit being ineffective until after 1997. The intent was to make the amended renunciation clause effective from the date of the inception of the tax credit.

Clause 4 makes changes to the Income Tax Act requested by Revenue Canada to harmonize the Act with changes to the Income Tax Act (Canada).

Clause 5 extends the film industry tax credit for a period of one year.

Clause 6 makes changes in the manufacturing and processing investment tax credit necessary for consistency with federal legislation.

Clause 7 makes changes to the Income Tax Act requested by Revenue Canada to harmonize the Act with changes to the Income Tax Act (Canada).

Clause 8 eliminates the requirement in the Provincial Finance Act that 50% of net gas royalties be paid into the Public Debt Retirement Fund.

Be it enacted by the Governor and Assembly as follows:

1 This Act may be cited as the Financial Measures (1999) Act.

PART I

EXPENDITURE CONTROL ACT

2 Chapter 4 of the Acts of 1993, the Expenditure Control Act, is amended by adding immediately after Section 13 the following Section:

14 Notwithstanding Section 11, this Part does not apply to the 1998-99 and 1999-2000 fiscal years of the Province.

PART II

FINANCIAL MEASURES (1998) ACT

3 (1) Subsection 6(3) of Chapter 13 of the Acts of 1998, the Financial Measures (1998) Act, is repealed.

(2) Subsection (1) has effect on and after December 3, 1998.

PART III

INCOME TAX ACT

4 Clause 2(8)(g) of Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, is repealed and the following clauses substituted:

(g) subject to clause (ga), 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;

(ga) 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 this Act;

5 Clause 13E(2)(a) of Chapter 217, as enacted by Chapter 2 of the Acts of 1995 and amended by Chapter 13 of the Acts of 1998, is further amended by striking out "2000" in the second line and substituting "2001".

6 (1) Subsection 13G(1) of Chapter 217, as enacted by Chapter 3 of the Acts of 1997 and amended by Chapter 13 of the Acts of 1998, is further amended by

(a) relettering clause (a) as (aa) and adding immediately preceding clause (a) the following clause:

(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 subsection 13G(1), "government assistance" as described in paragraph 127(11.1)(b) and (d) of the Federal Act shall not include the investment tax credit determined under this Section;

and

(b) striking out "127(9), (11) and (11.1)" in the sixth and seventh lines of clause (c) and substituting "127(9) and (11)".

(2) Subsection 13G(8) of Chapter 217 is repealed and the following subsection substituted:

(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.

7 (1) Section 16 of Chapter 217 is repealed and the following Section substituted:

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

(2) Section 16 of Chapter 217, as enacted by subsection (1), is applicable after April 27, 1989, other than in respect to a taxation year of a taxpayer for which a notice of an original assessment under Chapter 217 in respect of the taxpayer for the year, or a notification that no tax is payable by the taxpayer for the year, was mailed on or before April 27, 1986.

PART IV

PROVINCIAL FINANCE ACT

8 Section 60B of Chapter 365 of the Revised Statutes, 1989, the Provincial Finance Act, is repealed.