Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act

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.