RSNL1990 CHAPTER S-28 - STOCK SAVINGS TAX CREDIT ACT

RSNL1990 CHAPTER S-28 STOCK SAVINGS TAX CREDIT ACT Amended: 2004 c36 s43; 2006 c40 s21; 2013 c16 s25 CHAPTER S-28 AN ACT RESPECTING STOCK SAVINGS PLAN TAX CREDITS Analysis PART I SHORT TITLE AND INTERPRETATION 1. Short title 2. Interpretation 3. Association PART II DETERMINING ELIGIBILITY FOR TAX CREDIT 4. Stock savings plan 5. Eligible security 6. Eligible issuers 7. Returns 8. Assets of applicants 9. Refusal 10. Request for information 11. Revocation PART III CALCULATING THE TAX CREDIT 12. Deduction of credit 13. Stock savings tax credit balance 14. Payment on disposition 15. Certain dispositions 16. Transfers between plans 17. Requirements for claiming tax credit 18. Carry forward, etc. PART IV ADMINISTRATION, APPEALS AND ENFORCEMENT 19. Recapture 20. Recovery 21. Demand 22. Notice of objection 23. Determination of question 24. Service 25. Retention of records 26. Inspectors 27. Investigations 28. Power to search and seize 29. Offence PART V REGULATIONS 30. Regulations PART I SHORT TITLE AND INTERPRETATION Short title 1. This Act may be cited as the Stock Savings Tax Credit Act. 1988 c14 s1 Back to Top Interpretation 2. (1) In this Act (a) "acquisition cost amount" means, with respect to each eligible security that has been contributed to a stock savings plan (i) where the security is contributed to a stock savings plan of an investor immediately on its being withdrawn from another stock savings plan of the same investor, an amount equal to the disposition cost amount of that security, and (ii) in other cases, an amount equal to the product obtained when the cost amount of the eligible security is multiplied by the eligible percentage applicable to the eligible security on the date it was acquired by the investor; (b) "authorized dealer" means a person who is registered as a broker under the Securities Act; (c) "certificate of eligibility" means a certificate of eligibility issued under section 6; (d) "common share" means a share of the capital stock of a corporation (i) the holder of which is not precluded on the reduction or redemption of the corporation's capital stock from participating in the assets of the corporation beyond the amount paid up on the share plus a fixed premium and a defined rate of dividend, and (ii) that carries a number of voting rights in the corporation that issued it, in all circumstances and regardless of the number of shares held, that is not less than the number attached to another share of the capital stock of the corporation; (e) "cost amount" means, with respect to an eligible security issued under a certificate of eligibility, (i) where the eligible security is issued for a consideration consisting only of money, the amount of money paid by the investor for the eligible security, including applicable underwriter's fees paid by the investor for the eligible security but not including (A) a brokerage or custody fee or similar charge, or (B) an amount paid to acquire a warrant that evidenced the right to acquire the eligible security, or (ii) where the eligible security is issued for a consideration consisting only of property or past service or partly of money and partly of property or past service, an amount not exceeding the amount by which the total of (A) the amount of money paid by the investor for the eligible security, as determined in accordance with subparagraph (i), and (B) the fair market value of the property or past service in consideration for which the eligible security was issued, exceeds the fair market value of consideration issued or granted by the eligible issuer other than an eligible security or a warrant that evidences the right to acquire an eligible security; (f) "department" means the Department of Finance; (g) "disposition cost amount" means (i) for each eligible security of the same type and class of an eligible issuer that (A) has a different acquisition cost amount from other eligible securities of the same type and class of the eligible issuer, and (B) is contributed to a stock savings plan, the amount determined in accordance with a reasonable method adopted by the investor and applied consistently to eligible securities of that type and class withdrawn from that stock savings plan, and (ii) for each eligible security, other than one described in subparagraph (i), contributed to a stock savings plan, its acquisition cost amount; (h) "eligible corporation" means a corporation to which a certificate of eligibility is issued; (i) "eligible issuer" means an eligible corporation; (j) "eligible percentage" applicable to an eligible share is (i) 10% where the eligible corporation issuing the eligible share is classified as a senior corporation on the certificate of eligibility that applies to the eligible share, (ii) 20% where the eligible corporation issuing the eligible share is classified as a mature corporation on the certificate of eligibility that applies to the eligible share, (iii) 30% where the eligible corporation issuing the eligible share is classified as an expanding corporation on the certificate of eligibility that applies to the eligible share, (iv) 30% where the eligible corporation issuing the eligible share is classified as an emerging corporation on the certificate of eligibility that applies to the eligible share; (k) "eligible security" means a share of the capital stock of a corporation described in section 5; (l) "emerging corporation" means an eligible corporation the shares of which are (i) held by 25 or more shareholders at arms length, (ii) publicly traded, and (iii) not listed on a stock exchange; (m) "expanding corporation" means an eligible corporation shares of which are listed on a stock exchange where in its last taxation year ending before the date of the certificate of eligibility the total revenue and assets of the corporation are less than $25,000,000; (n) "Federal Act" means the Income Tax Act ( Canada ); (o) "investor" means a natural person, including a trustee, executor, administrator or other legal representative of a natural person, who (i) lived in the province on the last day of the taxation year, and (ii) during the taxation year or a preceding taxation year, purchased eligible securities and contributed them to a stock savings plan; (p) "issuer" means a corporation; (q) "mature corporation" means an eligible corporation shares of which are listed on a stock exchange where in its last taxation year ending before the date of the certificate of eligibility the total revenue and assets of the corporation exceeds $25,000,000 and provided that the assets do not exceed $300,000,000; (r) "minister" means the minister appointed under the Executive Council Act to administer this Act; (s) "preferred share" means a share of a corporation that is not a share described in subparagraph (d)(i); (t) "securities" means a share of the capital stock of a corporation; (u) "senior corporation" means an eligible corporation shares of which are listed on a stock exchange where in its last taxation year ending before the date of the certificate of eligibility the total assets of the corporation are not less than $300,000,000 but not more than $500,000,000; (v) "specified securities issue" means a primary distribution to the public of shares or warrants and shares made in accordance with the Securities Act; (w) "stock savings plan" means an arrangement described in section 4; (x) "stock savings tax credit" means a deduction from tax otherwise payable in accordance with section 10 of the Income Tax Act; (y) "tax otherwise payable" means the amount that would be the tax otherwise payable by an investor under the Income Tax Act calculated without an addition or deduction being made under section 120.1 of the Federal Act and including a tax payable for the year under the Income Tax Act; (z) "underwriter" means an underwriter as defined under the Securities Act; and (aa) "warrant" means a right to sign for a share of a corporation. (2) For the purposes of this Act, except where they are at variance with the definitions and interpretations contained in this Act or the regulations, the definitions and interpretations contained in or made by the Federal Act or the Income Tax Act apply. (3) For the purposes of this Act, the assets of a corporation for a taxation year are the total of (a) the assets of the corporation at the end of that taxation year as shown in the audited financial statements for that taxation year less the sum of (i) the appraisal surplus of the assets, and (ii) the amount by which the intangible assets exceed the expenditure made with respect to the intangible assets; and (b) where the corporation is a member of a partnership at the end of that taxation year, the amount by which the proportionate share of the assets of the partnership at the end of the partnership's last financial period, ending on or before the end of that taxation year, to which the corporation would be entitled if the partnership were dissolved exceeds the corporation's partnership interest at the end of the partnership's financial period ending on or before the end of that taxation year. 1988 c14 s2; 2006 c40 s21 Back to Top Association 3. (1) For the purposes of this Act, 1 corporation is associated with another in a taxation year where in the year it is associated with the other within the meaning of the Federal Act. (2) Where with respect to 2 or more corporations the minister is satisfied (a) that the separate existence of those corporations was not solely for the purpose of carrying out the business of those corporations in the most effective manner; and (b) that 1 of the main reasons for the separate existence of the corporations is to qualify 1 or more of the corporations as an eligible corporation where it would not otherwise be an eligible corporation, the 2 or more corporations shall be, where the minister directs, considered to be associated with each other for the purposes of section 8. 1988 c14 s3 PART II DETERMINING ELIGIBILITY FOR TAX CREDIT Back to Top Stock savings plan 4. (1) A "stock savings plan" means an arrangement, other than a retirement savings plan, between an authorized dealer and an investor under which the dealer holds those eligible securities that the investor (a) owns; and (b) has designated for the purpose of entitling the investor to a stock savings tax credit for a taxation year. (2) An authorized dealer shall hold a security in a stock savings plan for an investor only where (a) the security is an eligible security; and (b) the investor is the 1st purchaser, other than an authorized dealer acting as agent or underwriter, of the security. (3) Before February 1 in a year, an authorized dealer who held eligible securities in a stock savings plan for an investor during the preceding year shall file with the department a statement of investment in the prescribed form with respect to each stock savings plan held by the authorized dealer. 1988 c14 s4 Back to Top Eligible security 5. (1) A security is an eligible security where (a) it is (i) a common share that cannot, under the conditions attaching to its issuing, be purchased or redeemed by the corporation that issued it or by another corporation, or (ii) a preferred share that is convertible into a common share, subject to those conditions that may be prescribed; (b) it is (i) listed and posted for trading on a Canadian Stock Exchange within 90 days of the date of its issue, or (ii) part of an unlisted securities issue where the 1st security of that issue is signed for within 90 days after the date of the certificate of eligibility is issued with respect to that issue; (c) it is paid for by the investor; (d) it is issued by an eligible issuer as part of the specified securities issue with respect to which a certificate of eligibility is issued and the certificate of eligibility was not revoked at the time the security is acquired by an investor; (e) the eligible issuer that issues it gives notice in the prospectus filed with respect to the specified securities issue, or, where no prospectus is required, gives notice in the prescribed form to potential investors stating (i) that a certificate of eligibility has been issued to the eligible issuer with respect to the specified securities issue, and (ii) the date of the certificate of eligibility; (f) it is acquired by an eligible investor and placed in a stock savings plan of the eligible investor before January 1, 1996 under the specified securities issue; and (g) the share certificate is (i) remitted directly to the authorized dealer by (A) the eligible issuer, or (B) an authorized dealer who certifies that the certificate was held, without interruption from its issue, by an authorized dealer acting as an agent or underwriter, or (ii) issued and registered by the eligible issuer in the name of an authorized dealer or of a person designated by an authorized dealer. (2) Notwithstanding subsection (1), a security is not an eligible security where (a) it entitles the holder of the share to (i) a tax credit under the Venture Capital Act, (ii) a tax credit under section 127.2 or 127.3 of the Federal Act; (b) it is acquired by the investor under an agreement described in subparagraph 66.1(6)(a)(v), subparagraph 66.2(5)(a)(v) or subparagraph 66.4(5)(a)(iii) of the Federal Act; (c) it is acquired by the investor as a stock dividend; (d) it is acquired by the investor under an agreement or arrangement between the issuer and (i) its employees, (ii) the employees of a corporation with which it is associated, or (iii) a trustee acting on behalf of the employees of the corporation or a corporation with which it is associated; or (e) it is acquired by the investor under a plan that is made available by the issuer to every holder of a class of its securities that permits the holder to direct that dividends paid with respect to issued securities of the issuer be applied to the purchase from the issuer of securities of the issuer. (3) Notwithstanding subsection (1), where (a) an eligible security is issued as part of a specified securities issue for which a certificate of eligibility is issued; and (b) the certificate of eligibility is not valid because the 1st security in the specified securities issue is signed for more than 90 days after the date of the certificate of eligibility, the security shall be considered never to have been an eligible security. (4) A security of a corporation acquired by an investor shall not be an eligible security where the corporation received a loan under the venture capital program administered by Enterprise Newfoundland and Labrador Corporation as a result of the investor's acquisition of the security. (5) Notwithstanding subsection (1), a security is an eligible security where it is acquired after December 31, 1995 and meets the conditions otherwise prescribed in this Act or the regulations. (6) Except as otherwise prescribed, the minister shall refuse to issue a certificate of eligibility to a corporation where the total value of the eligible securities of that corporation referred to in that certificate of eligibility and previous certificates of eligibility issued to that corporation exceeds $10,000,000. (7) Where, in the minister's opinion, the number of eligible securities approved under certificates of eligibility under this Act will be sufficient to take up the prescribed amount of money that is payable by way of grant or foregone by way of stock savings tax credit under section 12, the minister may, subject to the approval of the Lieutenant-Governor in Council, by order, suspend (a) the further issuing of certificates of eligibility; or (b) the payment of grants and the allowance of stock savings tax credits, under this Act for a period of time that the minister may specify in the order. (8) An order made under subsection (7) does not operate (a) to prevent the minister from making a grant or credit where the eligible securities were fully paid for and beneficially owned by the investor before the making of the order; or (b) to prevent the carrying forward of a stock savings tax credit under section 18. 1988 c14 s5 Back to Top Eligible issuers 6. (1) The minister may issue a certificate of eligibility to an issuer where (a) the issuer applies in the prescribed form not more than 7 years after November 10, 1988; (b) the issuer is not engaged in a prescribed activity on the date of the certificate; (c) none of the securities in the specified securities issue to which the certificate of eligibility is to apply have been signed for on or before the date of the certificate of eligibility; (d) the minister is satisfied that the securities in the specified securities issue will, when issued, meet the requirements of paragraphs 5(1)(a), (b) and (e) and are not securities described in subsection 5(2); and (e) in the case of a corporation (i) the corporation is incorporated in Canada , (ii) the corporation has a permanent establishment in the province on the date of the certificate of eligibility, (iii) the total of the wages and salaries paid in the last taxation year of the corporation that ends before the date of the certificate of eligibility to employees of its permanent establishment in the province is not less than 25% of wages and salaries paid in the year by the corporation, (iv) not more than 50% of the assets of the corporation for the last taxation year of the corporation that ends before the date of the certificate of eligibility consists of (A) debentures, (B) bonds, (C) guaranteed investment certificates, (D) loans, (E) units of a mutual trust fund, (F) units representing, or subscription rights or purchasing rights to units representing, an undivided interest in a project or property other than an asset used or held in the course of a business carried on by the corporation, (G) cash on hand or on deposit other than, in the case of a corporation that was incorporated in the last 6 months preceding the date of the certificate of eligibility, the cash contributed by the shareholders, and (H) shares, other than voting shares representing at least 20% of the votes of the voting shares of a corporation that meets the requirements of paragraph (b) and subparagraphs (e)(i) to (v), and (v) the total assets of the corporation as determined under section 8 for the last taxation year of the corporation that ends before the date of the certificate of eligibility are not more than $500,000,000. (2) For the purposes of subparagraphs (1)(e)(iii) and (iv), where an issuer does not have a taxation year ending before the date of the certificate of eligibility, the taxation year of the issuer shall be considered to end on the day before the date of the certificate of eligibility. (3) The minister may refuse to issue a certificate of eligibility where he or she is of the opinion that the issuer or its officers, directors, shareholders, trustees or managers is conducting its, his or her business and affairs in a manner that is contrary to the spirit and intent of this Act. (4) The minister may set as the date of the certificate of eligibility a date after the minister receives the application from the issuer. (5) Before the minister issues the certificate of eligibility the minister may require an issuer that applies for a certificate of eligibility to provide the minister with information that the minister considers relevant within a time the minister requests. (6) A certificate of eligibility is valid only where the 1st security in the specified security issue to which it applies is signed for not more than 90 days after the date of the certificate of eligibility. 1988 c14 s6 Back to Top Returns 7. Not more than 90 days after the 1st anniversary of the date of the certificate of eligibility, an eligible issuer shall file with the department a return in the prescribed form. 1988 c14 s7 Back to Top Assets of applicants 8. (1) For the purposes of subparagraph 6(1)(e)(v), if subsections (2) and (3) of this section do not apply to an applicant for a certificate of eligibility, the total assets of the applicant for the last taxation year of the applicant ending before the date of the certificate of eligibility are the assets of the applicant for that taxation year. (2) For the purposes of subparagraph 6(1)(e)(v), where the applicant for a certificate of eligibility is associated with another corporation during the last taxation year of the applicant ending before the date of the certificate of eligibility, the total assets of the applicant for that taxation year are the amount, if any, by which the sum of (a) the assets of the applicant for that taxation year; and (b) the total of the assets of the associated corporations for their last taxation years ending on or before the end of the last taxation year of the applicant, exceeds the sum of (c) the investments the corporations own in each other; and (d) the balance of accounts between the corporations. (3) For the purposes of subparagraph 6(1)(e)(v), where the applicant for a certificate of eligibility is a new corporation formed by the amalgamation of 2 or more predecessor corporations and the applicant does not have a taxation year ending before the date of the certificate of eligibility, the total assets of the applicant are the sum of the assets of each predecessor corporation for its last taxation year. (4) For the purposes of subsection (2), where (a) an applicant for a certificate of eligibility is associated with another corporation during the last taxation year of the applicant ending before the date of the certificate of eligibility; (b) the other corporation is a new corporation formed by the amalgamation of 2 or more predecessor corporations; and (c) the other corporation does not have a taxation year ending on or before the end of the last taxation year of the applicant that ends before the date of the certificate of eligibility, the assets of the other corporation are the sum of the assets of each predecessor corporation for its last taxation year. (5) For the purposes of subsections (3) and (4), where a predecessor corporation is associated with other corporations during the last taxation year of the predecessor corporation, the assets of the predecessor corporation for that taxation year are the amount by which the sums of (a) the assets of the predecessor corporation for that taxation year; and (b) the total of the assets of the associated corporations for their last taxation years ending on or before the end of the last taxation year of the predecessor corporation, exceeds the sum of (c) the investments the corporations own in each other; and (d) the balance of accounts between the corporations. (6) For the purposes of this section, where an applicant for a certificate of eligibility does not have a taxation year ending before the date of the certificate of eligibility and subsection (3) does not apply to the applicant, the taxation year of the applicant is considered to end on the day before the date of the certificate of eligibility. (7) Notwithstanding subsections (2) to (5), the assets of a corporation are to be included only once in the determination of the total assets of an applicant for a taxation year. 1988 c14 s8 Back to Top Refusal 9. (1) Where the minister refuses to issue a certificate of eligibility to an applicant, the minister shall notify the applicant of the refusal, together with written reasons for it. (2) Where the minister has not issued a certificate of eligibility to an applicant within 90 days after the date on which the applicant delivered an application for a certificate of eligibility to the minister, the minister is considered to have refused to issue the certificate. 1988 c14 s9 Back to Top Request for information 10. An eligible issuer shall, on request by the minister, file with the minister, within a reasonable time stipulated in the request, information that the minister considers relevant and that is specified in the request. 1988 c14 s10 Back to Top Revocation 11. (1) The minister may revoke a certificate of eligibility where the minister determines within 7 years after the date of the certificate of eligibility that (a) the issuer to which the certificate of eligibility is issued did not meet the requirements of subsection 6(1); (b) 1 or more securities in the specified securities issue to which the certificate of eligibility applies were signed for on or before the date of the certificate; or (c) the securities in the specified securities issue when issued did not meet the requirements of paragraph 5(1)(a), (b) or (e) or were securities described in subsection 5(2). (2) The minister may revoke a certificate of eligibility where the minister is satisfied within 7 years after the date of the certificate of eligibility that an otherwise eligible security in the specified securities issue to which the certificate of eligibility applies (a) is issued by the eligible corporation in those circumstances that its holder is unable to exercise real influence over the management of the corporation because the specified securities issue of which it is part is preceded or followed by the issue of shares by which voting rights are procurable at an unreasonably lower cost per right to vote; or (b) is a common share carrying (i) a profit-sharing right, or (ii) a right to participate in case of dissolution, which is restricted when compared to that attached to common shares of another class. (3) Where the minister revokes a certificate of eligibility, the minister shall notify the issuer in writing before the effective date of the revocation. (4) The effective date of the revocation of a certificate of eligibility is the day after the date on which the notice of revocation is published in the Gazette. 1988 c14 s11 PART III CALCULATING THE TAX CREDIT Back to Top Deduction of credit 12. (1) For the 1988 and subsequent taxation years, an investor may apply for and the minister may allow a stock savings tax credit for a taxation year in an amount not exceeding the least of (a) an amount equal to the least of (i) the total of amounts, each of which is the acquisition cost amount of an eligible security, other than (A) a security that is an eligible security under subsection 5(5), or (B) an eligible security of an eligible corporation acquired by an investor who was not dealing at arms length with the eligible corporation during the 12 months preceding the date the investor acquired the eligible security, that is acquired by the investor during the taxation year and contributed to the investor's stock savings plans in the same year, (ii) the amount by which (A) the stock savings plan tax credit balance of the investor at the end of that taxation year, exceeds (B) the amount determined under subparagraph 14(1)(b)(i), and (iii) $3,000; and (b) the unused stock savings plan tax credit of the investor at the end of the immediately preceding taxation year. (2) The unused stock savings plan tax credit of an eligible investor at the end of a taxation year is the amount by which the total of (a) the unused stock savings plan tax credit at the end of the immediately preceding taxation year; and (b) the amount determined under paragraph (1)(a) for the taxation year, exceeds the amount deducted by the investor under subsection (1) for the taxation year. (3) The unused stock savings plan tax credit of an individual who is not living in the province on the last day of a taxation year shall be considered to be nil. (4) Notwithstanding subsection (1), where the minister has received a statement of investment with respect to each stock savings plan related to an investor under subsection 4(3) and is satisfied that the investor has complied with this Act and the regulations, the minister may allow the investor a stock savings tax credit and, where the minister allows the stock savings tax credit, shall provide the investor with a completed stock savings tax credit form certified by the minister. 1988 c14 s12 Back to Top Stock savings tax credit balance 13. The stock savings plan tax credit balance of an investor at the end of a taxation year is the amount by which the total of (a) the stock savings plan tax credit balance of the investor at the end of the immediately preceding taxation year; and (b) the amount determined under subparagraph 12(1)(a)(i) if it is read without clause (A) for the taxation year, exceeds (c) the total of the disposition cost amounts of the eligible securities previously contributed to the stock savings plans of the investor that are disposed of by the investor during the taxation year. 1988 c14 s13 Back to Top Payment on disposition 14. (1) Where in a taxation year an investor disposes of eligible securities from a stock savings plan, the investor shall pay to the minister an amount of tax equal to the lesser of (a) the total of the disposition cost amounts of the eligible securities previously contributed to the investor's stock savings plans that are disposed of by the investor during the taxation year; and (b) the amount by which (i) the total of the amount of the stock savings tax credit determined under section 12 for the immediately preceding 2 taxation years exceeds the amount determined under this section for the immediately preceding taxation year, exceeds (ii) the stock savings plan tax credit balance at the end of the taxation year. (2) The minister may require an authorized dealer in the manner prescribed to withhold a portion of the proceeds of disposition of eligible securities equal to the amount of tax payable under subsection (1) or other amount owing to the Crown under this Act. 1988 c14 s14 Back to Top Certain dispositions 15. (1) For the purposes of this Act, where at any time, in this section referred to as the "particular time", an investor (a) disposes of an eligible security, in this section referred to as the "old security", that had previously been contributed to a stock savings plan at a time before the particular time (i) as a consequence of the death of the investor, or (ii) under a transaction described in section 51, 85.1, 86 or 87 of the Federal Act in respect of an eligible security, and (A) the investor receives no consideration for the old security other than securities of the same or another corporation, in this subsection referred to as the "new security", and (B) the requirements of paragraph 5(1)(g) are met with respect to the new security; or (b) is considered by section 50 of the Federal Act to have disposed of an eligible security that had previously been contributed to a stock savings plan at a time before the particular time, the following rules apply: (c) the investor shall be considered for the purposes of this Act not to have disposed of the old security from the stock savings plan at the particular time; (d) in the case of a disposition to which subparagraph (a)(ii) applies (i) each new security shall be considered to be an eligible security that was included in the stock savings plan of the investor at the same time as the old security, and (ii) the disposition cost amount of each new security is an amount equal to the quotient obtained when the disposition cost amount of the old security determined immediately before the particular time is divided by the number of new securities issued for each old security. (2) For the purposes of this Act, an investor is considered to have disposed of an eligible security from a stock savings plan in a taxation year where in that year the investor removes the security certificate evidencing the eligible security from the custody of an authorized dealer with whom the investor has a stock savings plan. 1988 c14 s15 Back to Top Transfers between plans 16. (1) Where an eligible security is withdrawn from a stock savings plan of an investor and included in another stock savings plan of the same investor, the authorized dealer who holds the 1st stock savings plan shall remit the certificate evidencing the security directly to the authorized dealer who holds the 2nd stock savings plan. (2) Where an eligible security is withdrawn from 1 stock savings plan of an investor and included in another stock savings plan of the same investor in the taxation year in which the security is acquired by the investor, the acquisition cost amount of that security for that taxation year for the purposes of subparagraph 12(1)(a)(i) and paragraph 13(b) is the acquisition cost amount determined when paragraph 2(1)(a) is read without subparagraph 2(1)(a)(i). 1988 c14 s16 Back to Top Requirements for claiming tax credit 17. (1) Notwithstanding subsection 12(1), an investor who is allowed a stock savings tax credit under this Act is entitled, in accordance with those procedures that may be set by the minister, to apply the stock savings tax credit as a deduction from tax otherwise payable for the taxation year under section 10 of the Income Tax Act. (2) Notwithstanding subsection (1), where an investor claims a stock savings plan tax credit for a taxation year under section 10 of the Income Tax Act, the investor's annual return required under the Income Tax Act for the taxation year shall be accompanied by the completed stock savings tax credit form certified by the minister and provided to the investor under subsection 12(4). 1988 c14 s17 Back to Top Carry forward, etc. 18. (1) Where an investor (a) has been allowed a stock savings plan tax credit under this Act for a taxation year; and (b) the amount of the stock savings plan tax credit allowed exceeds the amount of tax payable by that investor for that taxation year, the investor may carry forward and deduct an unused balance of the stock savings tax credit from tax otherwise payable by the investor in 1 or more of the investors 7 subsequent taxation years. (2) Where a stock savings plan tax credit has been allowed under this Part and (a) an unused balance of the stock savings tax credit remains after the expiry of the last taxation year in which the stock savings plan tax credit may be deducted under subsection (1); or (b) where the investor has died, the investor is entitled to apply to the minister for a grant equal to the amount of the unused balance of the stock savings plan tax credit and the minister may pay a grant in that amount. 1988 c14 s18 PART IV ADMINISTRATION, APPEALS AND ENFORCEMENT Back to Top Recapture 19. Where the minister revokes a certificate of eligibility, the issuer to which the certificate was issued shall pay to the minister (a) an amount equal to 50% of the total of the cost amount of the securities issued before the effective date of revocation by the issuer under the specified securities issue with respect to which the certificate of eligibility was issued; and (b) interest on the amount determined under paragraph (a) at the prescribed rate and calculated from January 1 of the year following the year in which the date of the revoked certificate of eligibility occurs to the day of payment. 1988 c14 s19 Back to Top Recovery 20. (1) Where (a) an amount is payable to the minister by an issuer under section 19; or (b) an individual obtains a grant or tax credit under this Act on the basis of information that is false or misleading or of an application that contains a false or misleading statement or is required to pay an amount to the minister under section 14, the amount of that payment, grant or tax credit is a debt due to the Crown and may be recovered (c) by deducting that amount from grants or tax credits under the Income Tax Act for which an individual is eligible; or (d) by filing a certificate of the minister certifying the amount of the payment, grant or tax credit, together with interest at the prescribed rate to the date of the certificate, with the Trial Division. (2) A certificate filed under paragraph (1)(d) has the same force as if it were a judgment obtained in the Trial Division for the recovery of a debt in the amount specified in the certificate, together with reasonable costs and charges with respect to its filing. 1988 c14 s20; 2013 c16 s25 Back to Top Demand 21. Where an amount is payable to the Crown or is considered to be payable to the Crown under this Act, the minister may, by written notice of demand to the person or issuer by whom that payment is owing or claimed to be owing, demand payment immediately or within that number of days that are specified in the demand and, where the payment is not made as demanded, the minister may recover and collect the amount of that payment by the remedies or procedures provided for in this Act or by other means allowed by law. 1988 c14 s21 Back to Top Notice of objection 22. (1) Where an issuer objects to (a) the refusal of the minister under section 9 to issue a certificate of eligibility to it; or (b) the revocation of a certificate of eligibility issued to it, it may serve on the minister a notice of objection in the prescribed form setting out the reasons for the objection and the relevant facts not more than 30 days after (c) the date that the issuer received notice of the refusal; (d) the date of the refusal under subsection 9(2); or (e) the effective date of the revocation. (2) The minister may accept a notice of objection notwithstanding that it was not served in the manner required by section 24. (3) On receipt of a notice of objection, the minister shall reconsider the matters objected to and may (a) issue, refuse to issue or restore a certificate of eligibility; or (b) confirm the revocation of the certificate of eligibility. (4) The minister shall notify the issuer making the objection of his or her decision under subsection (3). 1988 c14 s22 Back to Top Determination of question 23. Where the issuer objects to a decision of the minister under subsection 22(3) and the objection is based on a dispute involving (a) the interpretation of this Act or the regulations; (b) an issue of law in which no facts are in dispute; or (c) the proper inference to be drawn from facts that are not in dispute, the issuer may, within 60 days after the minister notifies the issuer of his or her decision under section 22, appeal to a judge of the Trial Division to have the issue in dispute determined. 1988 c14 s23 Back to Top Service 24. (1) A notice, document or return required to be served under this Act or the regulations is to be served personally or mailed by registered mail to the last known address of the person being served. (2) The minister may extend the time for filing a notice, document or return under this Act. 1988 c14 s24 Back to Top Retention of records 25. (1) An authorized dealer who holds securities under a stock savings plan and an eligible issuer shall (a) keep books and records relating to a transaction or other information that may affect the status or eligibility of an individual, security, securities issue or issuer under this Act; and (b) forward to the minister for the purpose of inspection, examination or audit, records or extracts from those records at the time and in the manner that the minister considers appropriate. (2) Books and records mentioned in subsection (1) are to be kept in the form and are to contain the information that may be required by the minister. (3) The minister may specify that a person required to keep books and records under this section maintain those books and records in the province unless other suitable arrangements are made with the minister. (4) The books and records mentioned in subsection (1) are to be kept until (a) 7 years after the end of the last taxation year to which the books and records relate; or (b) the final disposition is made of an objection, appeal or other proceedings under this Act to which the books and records may be relevant, whichever is the later. (5) A person who (a) is required to keep books and records under this section; and (b) fails or refuses to (i) keep those books or records, or (ii) forward those books or records or extracts from those books or records when required by the minister to do so, is guilty of an offence. 1988 c14 s25 Back to Top Inspectors 26. The minister may appoint or designate those inspectors, officers and other persons that the minister considers necessary for the proper carrying out of this Act and the regulations. 1988 c14 s26 Back to Top Investigations 27. For the purposes of enforcing and administering this Act and the regulations, an inspector appointed or designated under section 26, may, at reasonable times, enter into the premises or place of business of an investor, authorized dealer or other person, or in premises or places where a corporation or business is carried on, property is kept, or anything is done in connection with an investor, authorized dealer, a corporation or business or books or records are, or should be, kept under this Act and may (a) audit or examine the books and records and an account, voucher, letter, telegram or other document that relates or may relate to the information that is or should be in the books or records; (b) require an investor, authorized dealer or other person on the premises in the place to give the inspector reasonable help with his or her audit or examination and to answer questions relating to the audit or examination, orally, in writing, on oath or affirmation or by statutory declaration; (c) for the purposes of paragraph (b), require a person mentioned in that paragraph to attend at the premises or place with him or her; and (d) where, during the course of an audit or examination, the minister or inspector believes on reasonable grounds that there has been a violation of this Act or the regulations, the minister or inspector may with a warrant issued under section 28, seize and take away, in the case of an inspector with the written permission of the minister, the records, books, accounts, vouchers, letters, telegrams and other documents that may be required in a court proceeding. 1988 c14 s27 Back to Top Power to search and seize 28. (1) A Provincial Court judge who is satisfied by information upon oath or affirmation that there are reasonable grounds for believing that there has been a contravention of this Act or the regulations or that there is on the premises or place where a corporation or business is carried on anything that there are reasonable grounds to believe will give evidence with respect to an offence under this Act or the regulations, may issue a warrant authorizing an investigator named in the warrant, subject to conditions that may be specified in the warrant, (a) to enter and search those premises or place; (b) to make those inquiries and copies of records, books, accounts, vouchers, letters, telegrams and other documents that are considered necessary; and (c) to take away books or records for the purpose of making copies of them, which books and records shall be returned immediately after copies are made. (2) The owner or person in charge of the premises or place referred to in this section and a person found there shall give an investigator reasonable help to enable the inspector to carry out his or her duties and functions under this section and shall provide information which the investigator may reasonably require. 1988 c14 s28; 2004 c36 s43 Back to Top Offence 29. (1) A person who (a) communicates information obtained under this Act by a person while employed in the administration of this Act to a person not legally entitled to that information, or allows a person to inspect or have access to a written statement provided under this Act; (b) makes or helps in making a statement in a document required by or for the purposes of this Act or the regulations that (i) at the time and in the light of the circumstances under which it was made, is false or misleading in respect of a material fact, or (ii) omits to state a material fact the omission of which makes the statement false or misleading; (c) who contravenes a provision of this Act for which a penalty is not otherwise provided, is guilty of an offence and liable on summary conviction to a fine in the case of a person other than a corporation, of not less than $200 nor more than $2,000 or, in the case of a corporation, of not less than $1,000 nor more than $20,000. (2) Paragraph (1)(a) does not apply to the communication of information (a) to employees of the department or other persons designated by the minister for the purpose of evaluating and formulating tax policy; and (b) to the Registrar of Securities or his or her employees in order to help in the administration of this Act or the regulations. (3) A person who (a) makes or participates in, assents to or acquiesces in making false or deceptive statements in a return, application, certificate, statement or answer filed or made as required under this Act or the regulations; (b) destroys, alters, mutilates, conceals or otherwise disposes of the records or books of account of an issuer; or (c) conspires with a person to commit an offence described in paragraph (a) or (b), in order to help an issuer to obtain a certificate of eligibility to which it is not entitled is guilty of an offence and is liable on summary conviction to a fine not exceeding an amount equal to 50% of the gross proceeds of the specified securities issue with respect to which the certificate of eligibility was issued. (4) An issuer that wilfully attempts to obtain or wilfully obtains a certificate of eligibility to which it is not entitled is guilty of an offence and liable on summary conviction to a fine not exceeding an amount equal to (a) where no certificate is issued, 50% of the gross proceeds of the specified securities issue with respect to which the certificate was sought; or (b) where a certificate is issued, 50% of the gross proceeds of the specified securities issue in respect of which the certificate was issued. (5) Where an issuer is guilty of an offence under this Act, an officer, trustee, director or agent who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is guilty of the offence and liable to the punishment provided for the offence, whether or not the issuer has been prosecuted or convicted. (6) For the purpose of this section, the gross proceeds of a specified securities issue is an amount equal to the total of the maximum subscription prices according to the prospectus or notice mentioned in paragraph 5(1)(e) for the maximum number of securities that may be issued by the issuer according to the specified securities issue. 1988 c14 s29 PART V REGULATIONS Back to Top Regulations 30. (1) The Lieutenant-Governor in Council may make regulations (a) defining, extending or restricting the meaning of a word or expression used in this Act or the regulations and not otherwise defined; (b) prescribing forms for the purposes of this Act; (c) prescribing preferred shares for the purposes of paragraph 5(1)(a) and, for that purpose, the Lieutenant-Governor in Council may establish different classes of preferred shares; (d) prescribing conditions for securities for the purposes of subsection 5(5); (e) prescribing activities that issuers are not to engage in in order to obtain certificates of eligibility; (f) prescribing conditions where the minister may issue a certificate of eligibility to a corporation that exceeds the amount referred to in subsection 5(6); (g) prescribing rates of interest for the purposes of section 19; (h) prescribing the calculation of the amount of a grant for the purposes of this Act; (i) prescribing other matters required to be prescribed by this Act; and (j) generally, to give effect to the purpose of this Act. (2) Notwithstanding the Statutes and Subordinate Legislation Act, regulations made under this Act may be made retroactive to a day not earlier than November 10, 1988. 1988 c14 s30