Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (S.C. 1988, c. 28)

Imposition of Insurance Premiums Tax

Marginal note:Insurance premiums tax in offshore area

• 213 (1) There shall be imposed, levied and collected under this Part in respect of the insurance premiums received by any company with respect to property that is situated in the offshore area at the time the insurance premiums become payable, in accordance with subsection (3), the taxes, interest, penalties and other sums that would be imposed, levied and collected under the Insurance Premiums Tax Act if the property were situated in the Province.

• Marginal note:Exception

  (2) Despite subsection (1), if taxes are imposed in respect of any matter under the Insurance Premiums Tax Act and taxes would, but for this subsection, be imposed under subsection (1) in respect of that matter, no taxes shall be imposed under subsection (1) in respect of that matter.

• Marginal note:Application of Nova Scotia legislation

  (3) Subject to this Act and the regulations made under it, the Insurance Premiums Tax Act and the regulations referred to in subsection (3.1) apply, with any modifications that the circumstances require, for the purposes of this Part and, without limiting the generality of the foregoing,

  • (a) a reference in that Act to the Province is to be read as a reference to the offshore area; and

  • (b) a reference in that Act to the Minister of Consumer Affairs is to be read as a reference to the Minister of Finance.

• Marginal note:Nova Scotia regulations

  (3.1) The following regulations apply for the purposes of subsection (3):

  • (a) any regulations made under the Insurance Premiums Tax Act; and

  • (b) any regulations made under an Act that was replaced by the Insurance Premiums Tax Act, to the extent that those regulations remain in force in accordance with the laws of the Province and are not inconsistent with the Insurance Premiums Tax Act.

• Definition of company

  (4) In this section, company has the meaning assigned by the definition insurance company in section 2 of the Insurance Premiums Tax Act.

Tax Administration Agreement

Marginal note:Power to collect

• 214 (1) Subject to subsection 217(1), where a tax administration agreement is entered into pursuant to subsection (3), taxes, interest, penalties and other sums payable under section 212 or 213 may be collected and administered and refunds in respect thereof may be granted by the Government of the Province on behalf of the Government of Canada in accordance with the terms and conditions of the agreement, as amended from time to time pursuant to subsection (4).

• Marginal note:Negotiation of tax administration agreement

  (2) The Minister of Finance shall, on the request of the Government of the Province, negotiate with the Minister of Finance of the Province a tax administration agreement with respect to the taxes, interest, penalties and other sums imposed under sections 212 and 213.

• Marginal note:Tax administration agreement

  (3) On completion of the negotiation of a tax administration agreement pursuant to subsection (2), the Minister of Finance, with the approval of the Governor in Council, shall, on behalf of the Government of Canada, enter into a tax administration agreement with the Government of the Province pursuant to which the Government of the Province shall, on behalf of the Government of Canada, collect and administer the taxes, interest, penalties and other sums payable under sections 212 and 213 and, without limiting the generality of the foregoing, grant refunds or make other payments in respect of those taxes, interest, penalties and other sums in accordance with the terms and conditions set out in the agreement.

• Marginal note:Amendments to the agreement

  (4) The Minister of Finance, with the approval of the Governor in Council, may, on behalf of the Government of Canada, enter into an agreement amending the terms and conditions of any tax administration agreement entered into pursuant to subsection (3).

• Marginal note:No further liability

  (5) A tax administration agreement may provide that, where any payment is received by the Government of the Province on account of any taxes, interest, penalties or other sums payable by a person under

  • (a) section 212 or 213, or

  • (b) both

    • (i) section 212 or 213, and

    • (ii) the Consumption Tax Acts or the Insurance Premiums Tax Act,

  the payment so received may be applied by the Government of the Province towards the taxes, interest, penalties or other sums payable by the person under any such provision or Act in such manner as is specified in the agreement, notwithstanding that the person directed that the payment be applied in any other manner or made no direction as to its application.

• Marginal note:Idem

  (6) Any payment or part thereof applied by the Government of the Province in accordance with a tax administration agreement towards the taxes, interest, penalties or other sums payable by a person under section 212 or 213

  • (a) relieves that person of liability to pay such taxes, interest, penalties or other sums to the extent of the payment or part thereof so applied; and

  • (b) shall be deemed to have been applied in accordance with a direction made by that person.

• Marginal note:Proof of provision of tax administration agreement

  (7) A document purporting to be an agreement entered into pursuant to subsection (3) or (4) that is

  • (a) published in the Canada Gazette, or

  • (b) certified as such by, or on behalf of, the Receiver General, the Deputy Receiver General or the Minister of Finance

  is, in the absence of evidence to the contrary, evidence of the contents thereof and is admissible in evidence without proof of the signature or official character of the person purporting to have certified it.

Marginal note:Transfer of powers and duties

• 215 (1) Where a tax administration agreement is entered into, the Provincial Minister, on behalf of, or as agent for, the Minister of Finance, is hereby authorized to perform all the duties and to exercise all the powers and any discretion that the Minister of Finance or the Deputy Minister of Finance has under section 212 or 213.

• Marginal note:Transfer of powers and duties

  (2) If a tax administration agreement is entered into,

  • (a) the Provincial Tax Commissioner of the Province may

    • (i) perform the duties and exercise any power or discretion that the Minister of Finance of the Province has under subsection (1) or otherwise under this Part in relation to the Consumption Tax Acts, and

    • (ii) designate personnel of the Department of Finance of the Province to carry out any functions, perform any duties and exercise any powers that are similar to those that are carried out, exercised or performed by them on behalf of that Minister under the Consumption Tax Acts; and

  • (b) the Minister of Finance of the Province or any other Minister of the Crown in right of the Province that may be designated by the Provincial Government for the purpose may

    • (i) perform the duties and exercise any power or discretion that the Minister of Finance of the Province has under subsection (1) or otherwise under this Part in relation to the Insurance Premiums Tax Act, and

    • (ii) designate personnel of the Department of Finance of the Province, or any other department of the Province for which that Minister is responsible, to carry out any functions, perform any duties and exercise any powers that are similar to those that are carried out, exercised or performed by them on behalf of that Minister under the Insurance Premiums Tax Act.

Imposition of Corporate Income Taxes

Marginal note:Imposition of corporate income tax in offshore area

• 216 (1) There shall be imposed, levied and collected under this Part in respect of the taxable income earned by, and the taxable capital of, a corporation in a taxation year in the offshore area, in accordance with subsection (3), the taxes, interest, penalties and other sums that would be imposed, levied and collected under the Nova Scotia Income Tax Act in respect of that taxable income and that taxable capital if the offshore area were in the Province.

• Marginal note:Exception

  (2) Despite subsection (1), if taxes are imposed under the Nova Scotia Income Tax Act in respect of the taxable income earned by, or the taxable capital of, a corporation in a taxation year in the Province and taxes would, in the absence of this subsection, be imposed under subsection (1) in respect of that taxable income or that taxable capital, no taxes shall be imposed under subsection (1) in respect of that taxable income or that taxable capital.

• Marginal note:Application of Nova Scotia Income Tax Act

  (3) Subject to this Act and the regulations made under it, the Nova Scotia Income Tax Act and any regulations referred to in subsection (3.1) apply, with any modifications that the circumstances require, for the purposes of this Part and, without limiting the generality of the foregoing,

  • (a) a reference in that Act to Her Majesty in right of the Province is to be read as a reference to Her Majesty in right of Canada;

  • (b) a reference in that Act to the Province is to be read as a reference to the offshore area; and

  • (c) a reference in that Act to the “Minister of Finance” is to be read as a reference to

    • (i) in relation to the remittance of any amount as or on account of tax payable under that Act, the Receiver General for Canada, and

    • (ii) in relation to any other matter, the Minister of National Revenue for Canada.

• Marginal note:Nova Scotia regulations

  (3.1) The following regulations apply for the purposes of subsection (3):

  • (a) any regulations made under the Nova Scotia Income Tax Act; and

  • (b) any regulations made under an Act that was replaced by the Nova Scotia Income Tax Act, to the extent that those regulations remain in force in accordance with the laws of the Province and are not inconsistent with the Nova Scotia Income Tax Act.

• Marginal note:Determination of taxable income earned in offshore area

  (4) For the purposes of this section, the taxable income of a corporation earned in a taxation year in the offshore area or in the Province shall be determined in accordance with rules prescribed by regulations for the purposes of the definition taxable income earned in the year in a province in subsection 124(4) of the Income Tax Act, and “taxable capital” means taxable capital employed in Canada determined in accordance with Part I.3 of that Act.

Marginal note:Remittance to Receiver General

• 217 (1) All taxes, interest, penalties or other sums payable under section 212, 213 or 216 are payable and shall be remitted to the Receiver General.

• Marginal note:Consolidated Revenue Fund

  (2) On the collection or receipt of any taxes, interest, penalties or other sums by the Government of the Province pursuant to this Part, the taxes, interest, penalties or other sums shall be deposited as soon as practicable to the credit of the Receiver General and paid into the Consolidated Revenue Fund in the manner prescribed by the Treasury Board under the Financial Administration Act.

• Marginal note:Collection of excess sums

  (3) Every person who knowingly collects or receives any sum of money as taxes under this Part in circumstances where the sum is not payable shall forthwith

  • (a) refund the sum to the person from whom the taxes were collected; or

  • (b) if the person referred to in paragraph (a) is not known or readily ascertainable, pay the sum to the Receiver General.

Liability and Collection of Tax

Marginal note:Debts due to Her Majesty

218 All taxes, interest, penalties or other sums payable under section 212, 213 or 216 are debts due to Her Majesty in right of Canada and are recoverable as such from the person required to pay the taxes, interest, penalties or other sums in any court of competent jurisdiction or in any other manner provided by the laws made applicable by this Part.

Revenue Account

Marginal note:Revenue Account

• 219 (1) There shall be established in the accounts of Canada a specified purpose account to be known as the Nova Scotia Offshore Revenue Account.

• Marginal note:Payment

  (2) The Federal Minister shall, at the times and in the manner prescribed,

  • (a) credit the Revenue Account with

    • (i) where the Government of the Province has agreed to collect and is collecting in accordance with a tax administration agreement entered into pursuant to section 214, on behalf of the Government of Canada, taxes, interest, penalties and other sums payable under sections 212 and 213, an amount equal to the aggregate of the amounts on account of taxes, interest, penalties and other sums collected pursuant to those sections during any fiscal year, after taking into account any refunds, remissions or other payments that are applicable in respect of such taxes, interest, penalties and other sums,

    • (ii) an amount equal to the aggregate of the amounts assessed or reassessed in respect of any fiscal year on account of taxes imposed pursuant to section 216, after taking into account any credits, reductions, deductions, rebates, surtaxes and remissions that are applicable in respect of such taxes,

    • (iii) where the Government of the Province and the Board have entered into an agreement pursuant to section 100 and the Board is collecting, in accordance with the agreement, on behalf of the Government of Canada, royalties payable under section 99, an amount equal to the aggregate of such royalties that have been collected during any fiscal year,

    • (iv) an amount equal to the aggregate of any amounts, other than those referred to in subparagraph (iii), received and not required to be returned during any fiscal year under Part II or Part III or any regulations made thereunder, and

    • (v) an amount equal to the aggregate of the amounts that would have been payable to Her Majesty in right of Nova Scotia pursuant to section 67 of the Canada-Nova Scotia Oil and Gas Agreement Act, chapter 29 of the Statutes of Canada, 1984, as it read immediately prior to the day on which this section comes into force, if that section had not been repealed, on account of amounts referred to in paragraphs (e) and (f) of the definition offshore revenue in subsection 63(1) of that Act if such amounts had not been transferred to the Nova Scotia Offshore Oil and Gas Resource Revenue Fund established by section 66 of that Act prior to that day or if such amounts had been so transferred prior to that day, they had not been paid to Her Majesty in right of the Province prior to that day; and

  • (b) pay to Her Majesty in right of the Province, at the time and in the manner prescribed, any amount credited to the Revenue Account pursuant to paragraph (a).

• Marginal note:Excess recoverable

  (3) Where, pursuant to subsection (2), Her Majesty in right of the Province has received any amount in excess of the amount to which it is entitled, the Federal Minister may recover as a debt due to Her Majesty in right of Canada an amount equal to such excess from any moneys that may be or may become payable to Her Majesty in right of the Province pursuant to subsection (2) or under any other Act of Parliament.

Jurisdiction of Courts

Marginal note:Jurisdiction of courts

• 220 (1) Every court in the Province has jurisdiction in respect of matters arising in the offshore area under this Part or Division VI of Part II or under any laws made applicable by this Part or that Division to the offshore area, to the same extent as the court has jurisdiction in respect of matters arising within its ordinary territorial division.

• Marginal note:Presumption

  (2) For the purposes of subsection (1), the offshore area shall be deemed to be within the territorial limits of Halifax District.

• Marginal note:Saving

  (3) Nothing in this section limits the jurisdiction that a court may exercise apart from this section.

• Definition of court

  (4) In this section, court includes a judge thereof and any provincial court judge or justice.