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Payments in Lieu of Taxes Act (R.S.C., 1985, c. M-13)

Act current to 2019-11-19 and last amended on 2019-07-15. Previous Versions

Calculation of Payments (continued)

Marginal note:Deductions

 In determining the amount of a payment under paragraph 3(1)(b), there may be deducted an amount that, in the opinion of the Minister, does not exceed reasonable expenditures incurred or expected to be incurred by Her Majesty in right of Canada to provide federal property with the service or work to which the frontage or area tax is related.

  • R.S., 1985, c. M-13, s. 8
  • 2000, c. 8, s. 9

Regulations

Marginal note:Regulations by Governor in Council

  •  (1) The Governor in Council may make regulations for carrying out the purposes and provisions of this Act and, without restricting the generality of the foregoing, may make regulations

    • (a) adding to or deleting from Schedule I any corporation established by or under an Act of Parliament or performing a function on behalf of the Government of Canada that is included in Schedule III and prescribing the real property or immovables of that corporation that are to be included in Schedule I;

    • (b) prescribing criteria for the purposes of paragraph (b) of the definition other attribute in subsection 2(1);

    • (c) adding to or deleting from Schedule II any structure, work, machinery or equipment to be excluded from the definition federal property under subsection 2(3);

    • (d) [Repealed, 2000, c. 8, s. 10]

    • (e) prescribing the real property and immovables referred to in paragraph 2(3)(h) that are to be included in the definition federal property in subsection 2(1);

    • (f) respecting any payment that may be made in lieu of a real property tax or a frontage or area tax by any corporation included in Schedule III or IV and, without limiting the generality of the foregoing, providing that any payment that may be made shall be determined on a basis at least equivalent to that provided in this Act;

    • (g) respecting any payment that may be made in lieu of a business occupancy tax by every corporation included in Schedule IV;

    • (g.1) providing that, in respect of a taxation year starting on or after January 1, 2000, subsections 3(1.1) and (1.2) and paragraph 3.1(b) apply to corporations included in Schedule III or IV, with any modifications that the circumstances require, in respect of payments in lieu of a real property tax and a frontage or area tax and, in the case of a corporation included in Schedule IV, payments in lieu of a business occupancy tax;

    • (g.2) providing that section 11.1 applies to corporations included in Schedule III or IV, with any modifications that the circumstances require; and

    • (h) adding to or deleting from Schedule III or IV any corporation established by or under an Act of Parliament or performing a function on behalf of the Government of Canada.

  • Marginal note:Proposed regulations to be published

    (2) Subject to subsection (3), a copy of each regulation that the Governor in Council proposes to make under subsection (1) shall be published in the Canada Gazette and a reasonable opportunity shall be afforded to interested persons to make representations to the Minister with respect thereto.

  • Marginal note:Single publication required

    (3) No proposed regulation need be published more than once under subsection (2) whether or not it is altered or amended after that publication as a result of representations made by interested persons as provided in that subsection.

  • R.S., 1985, c. M-13, s. 9
  • 2000, c. 8, s. 10

Marginal note:Regulations by Minister

 The Minister may make regulations

  • (a) establishing a form of application for a payment under this Act;

  • (b) respecting the making of an interim payment in respect of a payment under this Act; and

  • (c) respecting the recovery of any overpayments made to a taxing authority, including recovery by way of set-off against other payments under this Act to the taxing authority.

  • R.S., 1985, c. M-13, s. 10
  • 2000, c. 8, s. 11

Payments by Crown Corporations

Marginal note:Regulations to be complied with in making grants

  •  (1) Notwithstanding any other Act of Parliament or any regulations made thereunder,

    • (a) every corporation included in Schedule III or IV shall, if it is exempt from real property tax, comply with any regulations made under paragraph 9(1)(f) respecting any payment that it may make in lieu of a real property tax or a frontage or area tax; and

    • (b) every corporation included in Schedule IV shall, if it is exempt from business occupancy tax, comply with any regulations made under paragraph 9(1)(g) respecting any payment that it may make in lieu of a business occupancy tax.

  • Definition of wholly owned

    (2) For the purposes of Schedules III and IV, a corporation is wholly owned if all the shares, membership interests or other evidences of interest in the corporation to which are attached votes that may be cast to elect directors of the corporation are held, directly or indirectly, other than by way of security, by, on behalf of, or for the benefit of one of the corporations included in those Schedules.

  • R.S., 1985, c. M-13, s. 11
  • 2000, c. 8, s. 13

Advisory Panel

Marginal note:Appointment of members

  •  (1) The Governor in Council shall appoint an advisory panel of at least two members from each province and territory with relevant knowledge or experience to hold office during good behaviour for a term not exceeding three years, which term may be renewed for one or more further terms. The Governor in Council shall name one of the members as Chairperson.

  • Marginal note:Removal

    (1.1) A member appointed under subsection (1) may be removed for cause by the Governor in Council.

  • Marginal note:Mandate

    (2) The advisory panel shall give advice to the Minister in the event that a taxing authority disagrees with the property value, property dimension or effective rate applicable to any federal property, or claims that a payment should be supplemented under subsection 3(1.1).

  • Marginal note:Duties of Chairperson

    (3) The Chairperson shall supervise and direct the operation and functioning of the advisory panel.

  • Marginal note:Establishment of divisions

    (4) The Chairperson may establish divisions of the advisory panel, and all or any of the powers, duties and functions of the panel may be exercised or performed by all or any of those divisions.

  • Marginal note:Payments to members

    (5) Each member of the advisory panel is entitled to be paid, unless the member is employed in the federal public administration,

    • (a) remuneration in an amount fixed by the Governor in Council for each day or part of a day that the member is performing duties under this Act; and

    • (b) reasonable travel and other expenses incurred in the course of their duties under this Act while absent from their ordinary place of residence.

  • 2000, c. 8, s. 14
  • 2003, c. 22, s. 224(E)

General

Marginal note:Agreements respecting leased properties

 The Minister may enter into an agreement with the government of a province respecting the making of payments under this Act on any real property or immovable situated in the province that is prescribed under paragraph 9(1)(e) to be federal property.

  • R.S., 1985, c. M-13, s. 12
  • 2000, c. 8, s. 15

Marginal note:Community pasture payment

 Notwithstanding anything in this Act, federal property that, under an agreement with a province, is used as a community pasture may be excluded from the calculation of a payment in lieu of a real property tax if, with respect to that property, an alternative means of making a payment to a taxing authority in lieu of a real property tax is in effect.

  • R.S., 1985, c. M-13, s. 13
  • 2000, c. 8, s. 15

Marginal note:Newly acquired property

 Notwithstanding anything in this Act, when Her Majesty in right of Canada acquires taxable property, no payment shall be made under this Act in respect of that property for any part of the taxation year during which it was acquired.

  • R.S., 1985, c. M-13, s. 14
  • 2000, c. 8, s. 15

Marginal note:No right conferred

 No right to a payment is conferred by this Act.

  • R.S., 1985, c. M-13, s. 15
  • 2000, c. 8, s. 15

Marginal note:Phase-in of payments in lieu

 Notwithstanding anything in this Act or any regulation made under this Act, a payment in lieu of a real property tax that may be made under this Act in respect of any real property or immovable managed or held by a port authority mentioned in subsection 10(1) or 12(2) of the Canada Marine Act shall not exceed the following:

  • (a) for a taxation year beginning in 1999, 25 per cent of the payment that may, but for this section, be made under this Act;

  • (b) for a taxation year beginning in 2000, 50 per cent of the payment that may, but for this section, be made under this Act; and

  • (c) for a taxation year beginning in 2001, 75 per cent of the payment that may, but for this section, be made under this Act.

  • 1998, c. 10, s. 182.1
  • 2000, c. 8, s. 16
 
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