Additional payments. 5. An agreement may provide that, in addition to any other amount payable thereunder, there will be paid to the Government of a Province that was a party to a wartime tax 1942-43, c. 13. agreement entered into under The Dominion-Provincial Taxation Agreement Act, 1942, which wartime tax agreement terminated prior to the thirty-first day of March, nineteen hundred and forty-seven, additional payments in respect of the period beginning on the day following the termination of the wartime. tax agreement and ending on the said thirty-first day of March, in an aggregate amount not exceeding the proportion of the guaranteed minimum annual amount for that Province fixed herein that is the same as the proportion that the number of months between the date of termination of the wartime tax agreement and the said thirty-first day of March, is of twelve. Agreement respecting collection of corporation and income taxes by employees of Canada. Collection on account of both in R.S., c. 97. CORPORATION INCOME TAX COLLECTION AGREEMENTS 6. (1) Notwithstanding anything contained in the Income War Tax Act, the Minister of National Revenue may with the approval of the Governor in Council, on behalf of the Government of Canada, enter into an agreement on such terms and conditions as may be agreed upon, with a Minister of the Crown in the Government of a Province that has entered into an agreement under subsection one of section three, to provide for the collection by officers and employees of Canada, without charge to the Government of the Province, of corporation income taxes mentioned in paragraph (b) of subsection two of section three of this Act levied by the Government of the Province. (2) An agreement entered into under this section may provide that a payment collected by officers and employees of certain ratio. Canada from a corporation on account of tax on income of the corporation of any taxation year in respect of which it is liable to tax under the Income War Tax Act and under legislation enacted by the Government of a Province as provided by an agreement entered into under subsection one of section three of this Act, either on account of tax under the said Act or on account of tax under the said legislation, shall as between the Government of Canada and the Government of the Province be deemed to be paid on account of both of the said taxes in the ratio which the tax finally assessed therefor under the said Act bears to the tax finally assessed therefor under the said legislation, irrespective of whether the corporation appropriated the payment to either tax in whole or in part. Payments (3) Any amounts collected by officers and employees of to provinces. Canada pursuant to this section under legislation enacted by the Government of the Province, shall be paid to the Government of the Province on whose behalf the moneys were collected at such times and under such terms and conditions as may be agreed upon. SHARE OF INCOME TAX ON SPECIFIED CORPORATIONS 7. (1) Subject to the provisions of this section, the Minis- Payments ter of Finance may, at such time or times as he may determine, respecting pay to the Government of each Province, amounts hereinafter on specified specified, in respect of income tax collected from corporations corporations. whose main business is the distribution to or generation for distribution to the public of electrical energy, gas or steam in respect of income of the corporations derived from the said distribution or generation in the province to which payment is made during the whole or any part of the period commencing on the first day of January, nineteen hundred and forty-seven, and ending on the thirty-first day of December, nineteen hundred and fifty-one. (2) The amount that may be paid by the Minister of Limitation. Finance under this section in respect of income tax collected on income of any taxation year of a corporation shall not exceed the amount remaining after deducting from such amount as is determined by the Minister of National Revenue to be onehalf of the said tax collected on that part of the said income that was derived from distribution to or generation for distribution to the public of electrical energy, gas or steam in the Province to which payment is made, the following amounts: (a) the amount by which any royalties and rentals of a (b) the amount of any other royalties and rentals paid (c) the amount of all taxes and fees paid by the corporation to the Government of the Province or to a municipality in the Province during the said taxation year that in the opinion of the Minister of National Revenue are attributable to the distribution to or generation for distribution to the public by the corporation of electrical energy, gas or steam, and of all taxes or fees imposed on the use or consumption of electrical energy, gas or steam collected by the corporation during the taxation year on behalf of the said Government or of a municipality which in the opinion of the said Minister are not part of a sales tax of general application: Provided that there shall not be required to be de- Proviso. ducted under this paragraph any amount in respect of (i) taxes on net income or gross revenues or Discretion of Minister. Certain distribution and generation not included. Proportion ate amounts payable. or a municipality in accordance with the terms of an agreement entered into under section three of this Act between the Government of the Province and the Government of Canada, or(2) (ii) any other taxes or fees (not including taxes on net income or gross revenues or receipts of the corporation or on use or consumption aforesaid collected as aforesaid) that may be levied by a province or municipality under the terms of any agreement entered into under the said section three between the Government of any Province and the Government of Canada. (3) The Minister of National Revenue may, for the purposes of this section, determine whether the main business of a corporation is the distribution to or generation for distribution to the public of electrical energy, gas or steam and the proportion of the income of corporation in any taxation year that is derived from such distribution or generation in any Province. (4) For the purposes of this section distribution to or generation for distribution to the public by a corporation of electrical energy, gas or steam does not include distribution or generation for distribution to, (a) another corporation controlled by the first mentioned corporation; (b) another corporation that controls the first mentioned corporation; or (c) another corporation that is controlled by persons who control the first mentioned corporation. (3) (5) Where part only of a taxation year of a corporation falls within the period mentioned in this section, the amount payable in respect of that part of the taxation year shall be that proportion of the amount that might be payable for the whole of the taxation year computed in accordance with the preceding subsections of this section, that the number of days in the said part of the taxation year is of the number of days in the taxation year. (6) For the purposes of this section, a person is deemed to control a corporation if he owns more than fifty per centum of the shares of the corporation that have full voting rights in all circumstances. (4) (2) Amended by c. 19 of the statutes of 1949, infra. (3) Repealed and new by c. 19 of the statutes of 1949, infra. (4) Section seven was further amended by adding thereto subsections seven to eleven. See c. 19 of the Statutes of 1949 which follows. APPROPRIATION charge upon Consolidated 8. (1) The amount payable to the Government of any Amount Province pursuant to an agreement or that may be payable payable a under section seven of this Act, shall be a charge upon the Consolidated Revenue Fund of Canada and may be paid out of Revenue any unappropriated moneys forming part thereof at such time Fund. and in such manner as may be set out in the agreement or otherwise as the Minister of Finance may determine. (2) Any payment made under the authority of section five Payments of this Act shall be accounted for and charged as an expenditure under during the fiscal year ending on the thirty-first day of March, nineteen hundred and forty-seven. section 5. 1947, c. 58. Certain THE DOMINION-PROVINCIAL AMENDMENT ACT(1) 13 GEORGE VI, 1949, CHAPTER 19 An Act to amend The Dominion-Provincial Tax Rental [Assented to 10th December, 1949.] HIS MAJESTY, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. (1) Subparagraph (i) of paragraph (c) of subsection two of section seven of The Dominion-Provincial Tax Rental Agreements Act, 1947, chapter fifty-eight of the statutes of 1947, is amended by adding thereto the following: "if the Government of the Province has not entered into such an agreement, that portion of the taxes on net income of the corporation levied by the Province that does not exceed the amount that would have been paid if the rate at which the taxes were levied were the rate that might, under the terms of any such agreement, be levied on the net income of the corporation, or" (2) Subsection four of section seven of the said Act is repealed and the following substituted therefor: "(4) For the purposes of this section distribution to or distribution generation for distribution to the public by a corporation of electrical energy, gas or steam does not include distribution or not included. generation for distribution to, and generation (a) another corporation controlled by the first mentioned corporation; (b) another corporation that controls the first mentioned corporation; or (c) another corporation that is controlled by persons who control the first mentioned corporation (1) Section 7 of the main Act, which is the only section amended by the present Act, provides for payment to the government of a province of half of the income tax collected under the Income War Tax Act or the Income Tax Act on income derived by a corporation from the distribution to or generation for distribution to the public of electrical energy, gas or steam in the Province where this is the main business of a corporation. Provision is made for the deduction from the payment to the province of certain provincial taxes imposed on such corporations. |