3rd Session, 61st General Assembly
60 Elizabeth II, 2011
Harold Theriault, Jr
First Reading: April 14, 2011
This Bill provides a Nova Scotia sound recording tax credit available to eligible sound recording companies for certain qualifying expenditures on eligible sound recordings by emerging Canadian artists or groups.
2 Chapter 217 of the Revised Statutes, 1989, the Income Tax Act, is amended by adding immediately after Section 47A the following heading and Section:
(2) A corporation that is an eligible sound recording company for a taxation year and complies with the requirements of this Section may deduct from its tax otherwise payable under this Part for a taxation year, an amount not exceeding the amount of its sound recording tax credit for the taxation year.
(3) A corporation referred to in subsection (2) that complies with the requirements of this Section may deduct from its tax otherwise payable for the year under Part III an amount not exceeding the amount by which its sound recording tax credit for the taxation year exceeds the maximum amount, if any, deductible by the corporation for the year under subsection (2).
(4) The amount of a corporation's sound recording tax credit for a taxation year is the sum of all amounts, each of which is in respect of an eligible Canadian sound recording in relation to which the corporation is an eligible sound recording company and each of which is equal to the lesser of
(a) twenty per cent of the qualifying expenditures incurred by the corporation after January 1, 2011, and before the end of the taxation year in respect of the eligible Canadian sound recording to the extent that the expenditures were not included in determining the amount of the corporation's available tax credit under this Section for a prior taxation year; and
(5) 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 subsection (4) 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 sound recording tax credit of the corporation at the end of that particular taxation year.
(7) In order to be eligible to deduct or claim an amount in respect of an sound recording tax credit under this Section in respect of a sound recording, a corporation shall apply to a person designated by the Minister of Communities, Culture and Heritage for certification that the sound recording is an eligible Canadian sound recording and that the corporation is an eligible sound recording company for the taxation year in relation to the eligible Canadian sound recording for the purpose of this Section.
(8) A corporation that applies for certification under this Section shall provide to the designated person the information the designated person specifies for the purpose of making the determinations required under subsection (7).
(9) Where the particular sound recording is an eligible Canadian sound recording for the purpose of this Section and the corporation is an eligible sound recording company for the taxation year in relation to the recording, the designated person shall issue to the corporation a certificate so certifying.
(10) 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 (9) or a certified copy thereof.
(a) an omission or incorrect statement was made and it is reasonable to believe that, if the omitted information had been disclosed or if the person designated had known that the statement was incorrect, the designated person would have found that the corporation was not an eligible sound recording company for the purpose of this Section or that the recording was not an eligible Canadian sound recording for the purpose of this Section;
(13) A corporation that has claimed and is eligible for a sound recording 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.
(14) The money required for the purpose of this Section must be paid out of money appropriated for that purpose by the Legislature and, for greater certainty, no deduction may be made pursuant to this Section until the money is appropriated by the Legislature.