Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act

Marginal note:Imposition of corporate income tax and capital 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 land portion of 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 thereunder, the Nova Scotia Income Tax Act and any regulations made thereunder apply, with such modifications as 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 shall be deemed to be a reference to Her Majesty in right of Canada;

  • (b) a reference in that Act to the Province of Nova Scotia or the Province shall be deemed to be a reference to the offshore area;

  • (c) a reference in that Act to the “Minister of Finance” shall be deemed to be 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 of Canada, and

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

  • (d) a reference in that Act to the “Minister of National Revenue” shall be deemed to be a reference to the Minister of National Revenue for Canada.

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

  (4) For the purpose 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 Part IV of the Income Tax Regulations as though the offshore area were a province and the Income Tax Act were read without reference to the definition province in subsection 124(4) of that Act, and taxable capital means taxable capital employed in Canada determined in accordance with Part I.3 of that Act.