AI-assisted research summary: This Order gives remission to certain taxpayers for excess tax paid or payable on an exempt amount.
Exempt Foreign Income Tax Remission Order, 1991, M.R. 162/91 The Financial Administration Act , C.C.S.M. c. F55 Regulation 162/91 Registered July 22, 1991 bilingual version (HTML) Definitions 1(1) For the purposes of this remission order, "Act" means The Income Tax Act of Manitoba; («  Loi  ») "exempt amount" means an amount exempt under the federal Act from income tax in Canada by virtue of a provision contained in a tax convention with another country that has the force of law in Canada; (« somme exonérée ») "excess tax" means tax calculated in accordance with the rules outlined in section 4; (« excédent d'impôt ») "federal Act" means the Income Tax Act of Canada; (« loi fédérale ») "tax convention" means an international bilateral Agreement, Convention or Treaty for the avoidance of double taxation entered into by the Government of Canada and the government of another country; (« accord fiscal ») "taxpayer" means any person who has received and reported on a return of income filed for federal and Manitoba Income Tax purposes an exempt amount on which tax has been paid or assessed. (« contribuable ») 1(2) Words and terms not defined in subsection (1) have the meaning given to them under the Act. Application 2 This Order applies to the 1991 taxation year. Remission granted 3 Remission is hereby granted to a taxpayer who has received and reported an exempt amount, which has been subject to tax by virtue of section 4 of the Act in an amount equal to the excess tax paid or payable. Calculation of excess tax 4(1) For the purposes of this Order, where an exempt amount has been included in the taxpayer's net income for the purposes of section 4 of the Act and for which a deduction under sub-paragraph 110(1)⁠(f)⁠(i) of the federal Act is allowed in calculating taxable income, the following rules apply: (a) determine the tax payable under the Act and subtract the Manitoba Tax Reduction, if any, calculated including the exempt amount as part of net income; (b) determine the tax that would be payable under the Act and the Manitoba Tax Reduction, if any, with the exempt amount excluded from the taxpayer's net income; and (c) subtract the amount determined under clause (b) from the amount determined under clause (a). 4(2) The amount determined under clause (1)⁠(c), if greater than nil, is the excess tax.