Bill 39 - An Act Respecting the New Brunswick Income Tax Act and the Small Business Investor Tax Credit Act

BILL 39

An Act Respecting the New Brunswick Income Tax Act and the Small Business Investor Tax Credit Act

His Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

New Brunswick Income Tax Act

1 Section 61.1 of the New Brunswick Income Tax Act, chapter N-6.001 of the Acts of New Brunswick, 2000, is amended

(a) in subsection (2)

( i) in subparagraph (a)(i) by striking out “20(6) or (7)” and substituting “20(6), (6.1), (7) or (7.1)”;

( ii) in paragraph (b)

( A) by repealing subparagraph (i) and substituting the following:

( i) if the eligible investor is an individual,

( A)  $125,000, if the tax credit is being claimed under subsection 20(6) of the Small Business Investor Tax Credit Act,

( B)  $500,000, if the tax credit is being claimed under subsection 20(6.1) of the Small Business Investor Tax Credit Act, or

( C) $500,000, if a tax credit is being claimed under both subsection 20(6) and subsection 20(6.1) of the Small Business Investor Tax Credit Act, or

( B) by repealing subparagraph (ii) and substituting the following:

( ii) if the eligible investor is a corporation or a trust,

( A)  $125,000, if the tax credit is being claimed under subsection 20(7) of the Small Business Investor Tax Credit Act,

( B)  $250,000, if the tax credit is being claimed under subsection 20(7.1) of the Small Business Investor Tax Credit Act, or

( C)  $250,000, if a tax credit is being claimed under both subsection 20(7) and subsection 20(7.1) of the Small Business Investor Tax Credit Act.

(b) in subsection (3) of the French version by striking out “réclamée” and substituting “demandée”.

Small Business Investor Tax Credit Act

2( 1) The heading “INTERPRETATION” preceding section 1 of the Small Business Investor Tax Credit Act, chapter 112 of the Revised Statutes, 2016, is repealed and the following is substituted:

DEFINITIONS AND INTERPRETATION

2( 2) Section 1 of the Act is amended

(a) by repealing the definition “eligible share” and substituting the following:

“eligible share” means (action admissible)

(a) a share of the capital stock of a corporation registered under section 6 or 14 that is newly issued as part of a specified issue, but does not include a replacement share, and

(b) an investment share of a cooperative registered under section 14 that is newly issued as part of a specified issue and that is not eligible for a tax credit allowed under the authority of the federal Act or a deduction from income under the authority of that Act other than a deduction referred to in subsection 146(5) of that Act, but does not include a replacement share,

and includes a convertible debenture if the convertible debenture is newly issued as part of a specified issue, but does not include a replacement share.

(b) by repealing the definition “Minister” and substituting the following:

“Minister” means the Minister of Finance and Treasury Board and includes the Commissioner and any person designated by the Minister of Finance and Treasury Board to act on the Commissioner’s or the Minister of Finance and Treasury Board’s behalf. (ministre)

( i) in paragraph (a) by striking out “a share issued” and “disposed of a share of any class of shares” and substituting “a share or a convertible debenture issued” and “disposed of a share or convertible debenture of any class of shares or convertible debentures”, respectively;

( ii) in paragraph (b) by striking out “a share issued” and “disposed of a share of any class of shares” and substituting “a share or a convertible debenture issued” and “disposed of a share or convertible debenture of any class of shares or convertible debentures”, respectively;

(d) in the definition “specified issue” by striking out “issue of shares” and substituting “issue of shares or convertible debentures”;

(e) by adding in alphabetical order the following:

“Commissioner” means the Provincial Tax Commissioner appointed under the Revenue Administration Act and includes any person designated by the Provincial Tax Commissioner or the Minister of Finance and Treasury Board to act on the Provincial Tax Commissioner’s behalf. (commissaire)

“convertible debenture” (débenture convertible) means a financial instrument issued by an eligible business that functions initially as a loan but may be converted by the holder into shares of the eligible business.

“Deputy Minister” means the Deputy Minister of Finance and Treasury Board and includes any person designated by the Deputy Minister of Finance and Treasury Board to act on the Deputy Minister of Finance and Treasury Board’s behalf. (sous-ministre)

“NAICS” means the North American Industry Classification System maintained for Canada by Statistics Canada, as amended from time to time. (SCIAN)

“strategic sector” means any sector, subsector, industry group, industry or Canadian industry encompassing economic activities that is represented by a code assigned by NAICS and prescribed by regulation. (secteur stratégique)

2( 3) The Act is amended by adding after section 1 the following:

Convertible debentures

1.1( 1) In this section, “holding period” means the period of four years after the convertible debenture was issued as part of a specified issue.

1.1( 2) Nothing in this Act or the regulations prohibits the conversion of convertible debentures during the holding period.

1.1( 3) Paragraphs 10(1)(f) and (g) and sections 29, 30 and 31 apply with the necessary modifications to shares resulting from the conversion of a convertible debenture issued as part of a specified issue.

1.1( 4) For the purposes of subsection (3) and for greater certainty, the four-year period referred to in paragraphs 10(1)(f) and (g) and sections 29 and 31 is the period referred to in subsection (1).

2( 4) Section 3 of the Act is amended by striking out “does not include a share” and substituting “does not include a share or convertible debenture”.

2( 5) The heading “Shares of qualifying trust deemed to be those of eligible investor” preceding section 4 of the Act is repealed and the following is substituted:

Shares or convertible debentures of qualifying trust deemed to be those of eligible investor

2( 6) Section 4 of the Act is amended by striking out “subsections 20(1) and (6)” and “shares” substituting “subsections 20(1), (6) and (6.1)” and “shares or convertible debentures”, respectively.

2( 7) Section 5 of the Act is amended

(a) in subsection (1) in the portion preceding paragraph (a) by striking out “a specified issue of shares” and substituting “a specified issue of shares or convertible debentures”;

(b) by adding after subsection (1) the following:

5( 1.1) Any corporation carrying on business in a strategic sector shall indicate in its application for registration the NAICS code assigned to that sector.

2( 8) Section 6 of the Act is amended

(a) in subsection (2)

( i) in paragraph (a) by striking out “or within the period of time permitted by the Minister” and substituting “or within 120 days following registration”;

( ii) in paragraph (b) by striking out “or within the period of time permitted by the Minister” and substituting “or within 120 days following registration”;

(b) by adding after subsection (2) the following:

6( 3) On a written application by a corporation, the Minister may in writing extend the period in paragraph (2)(a) or (b) one time only by up to 60 days.

2( 9) Section 7 of the Act is amended by adding after subsection (1) the following:

7( 1.1) The certificate of registration shall specify if the corporation intending to make a specified issue carries on business in a strategic sector or does not carry on business in a strategic sector.

2( 10) Paragraph 9(e) of the Act is amended by striking out “$40,000,000” and substituting “$50,000,000”.

2( 11) The Act is amended by adding after section 9 the following:

Criteria to be met by the registered corporation

9.1 A corporation registered under section 6 shall comply with the criteria set out in section 9, except for the criterion set out in paragraph 9(e), for four years after its registration.

2( 12) Section 10 of the Act is amended

(a) in subsection (1)

( i) in paragraph (d)

( A) in subparagraph (iv) by striking out “the number of shares subscribed” and substituting “the number of shares or convertible debentures subscribed”;

( B) in subparagraph (v) by striking out “the number of shares” and substituting “the number of shares or convertible debentures”;

( ii) in paragraph (e)

( A) in the portion preceding subparagraph (i) by striking out “shares to be issued” and substituting “shares or convertible debentures to be issued”;

( B) in subparagraph (ii) by striking out “will include the rights to receive dividends” and substituting “will include the rights, if any, to receive dividends”;

( C) in subparagraph (iii) by striking out “shareholder” and “shares” and substituting “shareholder or convertible debenture holder” and “shares or convertible debentures”, respectively;

(b) by adding after subsection (1) the following:

10( 1.1) With the approval in writing of the Minister, a corporation may amend its investment plan.

10( 1.2) In the case of an amendment to an investment plan, any reference to it in this Act is a reference to the amended investment plan.

2( 13) Section 11 of the Act is amended by striking out “class of shares” and substituting “class of shares or class of convertible debentures”.

2( 14) Section 12 of the Act is amended

(a) in paragraph (b) by striking out “shares” and substituting “shares or convertible debentures”;

(b) in paragraph (g) by striking out “issued shares” and substituting “issued shares or convertible debentures”;

2( 15) Section 13 of the Act is amended

(a) in subsection (1) in the portion preceding paragraph (a) by striking out “specified issue of shares” and substituting “specified issue of shares or convertible debentures”;

(b) by adding after subsection (1) the following:

13( 1.1) Any corporation or cooperative carrying on business in a strategic sector shall indicate in its application for registration the NAICS code assigned to that sector.

13( 1.2) With the approval in writing of the Minister, a corporation or cooperative may amend its community economic development plan.

13( 1.3) In the case of an amendment to a community economic development plan, any reference to it in this Act or the regulations is a reference to the amended community economic development plan.

13( 1.4) A corporation or cooperative that makes amendments to its constitution that affect eligibility for a tax credit under this Act shall deliver a copy of the new constitution to the Minister within 60 days after the amendments are made.

2( 16) Section 14 of the Act is amended

(a) in subsection (2)

( i) in paragraph (a) by striking out “or within the period of time permitted by the Minister” and substituting “or within 120 days following registration”;

( ii) in paragraph (b) by striking out “or within the period of time permitted by the Minister” and substituting “or within 120 days following registration”;

(b) by adding after subsection (2) the following:

14( 3) On a written application by a corporation or cooperative, the Minister may in writing extend the period in paragraph (2)(a) or (b) one time only by up to 60 days.

2( 17) Section 15 of the Act is amended by adding after subsection (1) the following:

15( 1.1) The certificate of registration shall specify if the corporation or cooperative intending to make a specified issue carries on business in a strategic sector or does not carry on business in a strategic sector.

2( 18) Section 17 of the Act is amended

(a) in clause (b)(i)(B) by striking out “corporations and shareholders” and substituting “corporations, shareholders and convertible debenture holders”;

(b) in paragraph (f) by striking out “$40,000,000” and substituting “$50,000,000”;

(c) in subparagraph (g)(ii) by striking out “shares of another corporation” and substituting “shares or convertible debentures of another corporation”.

2( 19) Section 19 of the Act is amended by striking out “Sections 11 and 12 and sections 20 to 46” and substituting “Sections 11 and 12 and sections 20 to 46, excluding sections 26.1 and 45.1 to 45.8,”.

2( 20) Section 20 of the Act is amended

(a) in subsection (1) of the French version by striking out “que ce dernier réclame” and substituting “que ce dernier demande”;

(b) in subsection (2) of the French version by striking out “que ce dernier réclame” and substituting “que ce dernier demande”;

20( 6) Subject to subsection (6.2), if an eligible investor is an individual, the amount of the tax credit referred to in subsection (1) that may be claimed each year by the eligible investor is equal to 50% of all amounts the total of which does not exceed $250,000, paid during the time period referred to in subsection (1) by the eligible investor or by a qualifying trust of the eligible investor to a corporation registered under this Act, which does not carry on business in a strategic sector, in consideration for eligible shares issued by the corporation as part of its specified issue.

(d) by adding after subsection (6) the following:

20( 6.1) Subject to subsection (6.2), if an eligible investor is an individual, the amount of the tax credit referred to in subsection (1) that may be claimed each year by the eligible investor is equal to 50% of all amounts the total of which does not exceed $1,000,000, paid during the time period referred to in subsection (1) by the eligible investor or by a qualifying trust of the eligible investor to a corporation registered under this Act, which carries on business in a strategic sector, in consideration for eligible shares issued by the corporation as part of its specified issue.

20( 6.2) An eligible investor who is an individual may claim a tax credit under both subsection (6) and subsection (6.1) provided that the amount of money invested during the time period referred to in subsection (1) by the eligible investor, and in respect of which tax credit certificates may be issued under this Act, does not exceed, in total, $1,000,000.

(e) by repealing subsection (7) and substituting the following:

20( 7) Subject to subsection (7.2), if an eligible investor is a corporation or a trust, the amount of the tax credit referred to in subsection (2) that may be claimed each taxation year by the eligible investor is equal to 25% of all amounts the total of which does not exceed $500,000, paid during the taxation year referred to in subsection (2) by the eligible investor to a corporation registered under this Act, which does not carry on business in a strategic sector, in consideration for eligible shares issued by the corporation registered under this Act as part of its specified issue.

(f) by adding after subsection (7) the following:

20( 7.1) Subject to subsection (7.2), if an eligible investor is a corporation or a trust, the amount of the tax credit referred to in subsection (2) that may be claimed each taxation year by the eligible investor is equal to 25% of all amounts the total of which does not exceed $1,000,000, paid during the taxation year referred to in subsection (2) by the eligible investor to a corporation registered under this Act, which carries on business in a strategic sector, in consideration for eligible shares issued by the corporation registered under this Act as part of its specified issue.

20( 7.2) An eligible investor that is a corporation or trust may claim a tax credit under both subsection (7) and subsection (7.1) provided that the amount of money invested during the taxation period referred to in subsection (2) by the eligible investor, and in respect of which tax credit certificates may be issued under this Act, does not exceed, in total, $1,000,000.

2( 21) Section 22 of the Act is amended

(a) in subsection (1) of the French version by striking out “il peut être réclamé” and substituting “celui-ci peut être demandé”;

(b) by repealing paragraph (2)(e) and substituting the following:

(e) the aggregate of all entitlements in respect of the eligible investor for all tax credit certificates applied for in a year or a taxation year, as the case may be, does not exceed

( i)  $125,000, if the eligible investor is an individual who is claiming the tax credit under subsection 20(6),

( ii) $500,000, if the eligible investor is an individual who is claiming the tax credit under subsection 20(6.1),

( iii) $500,000, if the eligible investor is an individual who is claiming a tax credit under both subsection 20(6) and subsection 20(6.1),

( iv) $125,000, if the eligible investor is a corporation or trust that is claiming the tax credit under subsection 20(7),

( v)  $250,000, if the eligible investor is a corporation or trust that is claiming the tax credit under subsection 20(7.1), or

( vi) $250,000, if the eligible investor is a corporation or trust that is claiming a tax credit under both subsection 20(7) and subsection 20(7.1), and

2( 22) Section 26 of the Act is repealed and the following is substituted:

Recovery of tax credit on receivership or bankruptcy

26( 1) Subject to subsection (2), if a corporation registered under this Act is in receivership or in bankruptcy within the four-year period immediately following the issuance of its eligible shares, the corporation shall immediately pay to the Minister an amount of money equal to the percentage, calculated by the following formula, of the total amount of all tax credits for which tax credit certificates were issued or may be issued under this Act in respect of all eligible shares of the corporation that were issued as part of its specified issue within that period of time:

(48 - n) / 48

where

n is the number of months that the eligible shares were held.

26( 2) Instead of recovering the amount provided for in subsection (1) from the corporation, the Minister may recover from each eligible investor named in the investment plan of that corporation the amount equal to the lesser of the following amounts:

(a) the total amount of all tax credits in respect of which tax credit certificates have been issued to the eligible investor under this Act and that have been used by that eligible investor; and

(b) the amount corresponding to the product obtained by multiplying the total amount of all tax credits in respect of which tax credit certificates have been issued to all eligible investors named in the corporation’s investment plan by the percentage calculated using the following formula:

(48 - n) / 48

where

n is the number of months that the eligible shares were held.

2( 23) The Act is amended by adding after section 26 the following:

Status as a private company

26.1 If, within the four-year period immediately following the issuance of its eligible shares, a corporation registered under section 6 ceases to be a private company that meets the requirements prescribed by regulation, the corporation shall immediately pay to the Minister an amount of money equal to the percentage, calculated by the following formula, of the total amount of all tax credits for which tax credit certificates were issued or may be issued under this Act in respect of all eligible shares of the corporation that were issued as part of its specified issue within that period of time:

(48 - n) / 48

where

n is the number of months that the eligible shares were held and is deemed to be zero if the number of months is less than 24 months.

2( 24) Subsection 29(2) of the Act is repealed and the following is substituted:

29( 2) If a corporation registered under this Act redeems, acquires or cancels an eligible share in respect of which a tax credit certificate was issued under this Act before the expiry of the holding period, other than when permitted by regulation, the person who was the shareholder or convertible debenture holder, as the case may be, immediately before the redemption, acquisition or cancellation shall pay to the Minister an amount equal to the tax credit allowed in respect of the eligible share, or a lesser amount if prescribed by regulation.

2( 25) Section 30 of the Act is repealed and the following is substituted:

Withholding and remittance of tax credit

30( 1) If a corporation registered under this Act redeems, acquires or cancels an eligible share in respect of which a tax credit certificate was issued and, as a consequence, an amount is payable under subsection 29(2) by the person who was the shareholder or convertible debenture holder, as the case may be, immediately before the redemption, acquisition or cancellation, the corporation shall

(a) withhold the amount payable under subsection 29(2) from the amount otherwise payable to the shareholder or convertible debenture holder on the redemption, acquisition or cancellation,

(b) send the amount payable under subsection 29(2) to the Minister on behalf of the shareholder or convertible debenture holder within 30 days after the redemption, acquisition or cancellation, and

30( 2) If a corporation registered under this Act fails to withhold the amount referred to in paragraph (1)(a) from an amount paid to a shareholder or convertible debenture holder, the corporation is liable to pay on behalf of the shareholder or convertible debenture holder, as the case may be, the amount the corporation failed to withhold, and is entitled to recover that amount from the shareholder or convertible debenture holder.

2( 26) The heading “Disposal of share” preceding section 31 of the Act is repealed and the following is substituted:

Disposal of eligible share

2( 27) Section 31 of the Act repealed and the following is substituted:

31 If a tax credit has been allowed in respect of an eligible share and a person disposes of the eligible share within the four-year period after the date it was purchased, the person shall repay to the Minister

(a) an amount equal to the tax credit received in respect of the eligible share, including interest on the amount if prescribed by regulation, or

(b) a lesser amount determined in accordance with the regulations in the circumstances prescribed by regulation.

2( 28) Paragraph 40(1)(b) of the Act is amended by striking out “shareholder of a corporation” and substituting “shareholder of or convertible debenture holder of a corporation”.

2( 29) The Act is amended by adding after section 45 the following:

Administrative penalties

45.1( 1) If the Commissioner believes, on reasonable grounds, that an eligible business has violated or failed to comply with a provision of this Act that is listed in Column 1 of Schedule B, the Commissioner may issue a notice of non-compliance to the eligible business.

45.1( 2) The Commissioner shall serve a notice of non-compliance on the eligible business

(a) by registered mail to the eligible business’s latest known address, or

(b) in the manner in which personal service may be made under the Rules of Court.

45.1( 3) Service by registered mail is deemed to have been effected five days after the date the notice of non-compliance is deposited in the mail.

45.1( 4) The notice of non-compliance shall contain the following information:

(a) the name of the eligible business that has violated or failed to comply with a provision listed in Column 1 of Schedule B;

(b) the provision listed in Column 1 of Schedule B and the date on which the violation or failure to comply occurred;

(d) information with respect to the right to make written submissions as provided for in section 45.2.

45.1( 5) A notice of non-compliance shall not be served more than one year after the Commissioner first had knowledge of the violation or failure to comply.

45.1( 6) An eligible business that is the subject of a notice of non-compliance shall comply with the provisions mentioned in the notice within 15 days after being served with the notice.

Submissions

45.2( 1) An eligible business that is the subject of a notice of non-compliance and that objects to the notice may submit written submissions to the Commissioner on the form provided by the Commissioner within 15 days after being served with the notice.

45.2( 2) Within 30 days after receiving the written submissions, the Commissioner shall

(a) issue a notice indicating that the Commissioner is satisfied of the following:

( i) an error or omission exists with regard to the issuance of the notice of non-compliance;

( ii) an extenuating circumstance beyond the control of the eligible business exists and prevented compliance with the provision listed in Column 1 of Schedule B; or

( iii) due diligence was exercised by the eligible business to attempt to prevent the violation or failure to comply with the provision listed in Column 1 of Schedule B,

(b) issue a notice extending the time period referred to in subsection 45.1(6), or

Administrative penalty and offence

45.3( 1) An eligible business subject to an administrative penalty shall not be charged with an offence in respect of the same incident that gave rise to the administrative penalty.

45.3( 2) An eligible business charged with an offence shall not be subject to an administrative penalty in respect of the same incident that gave rise to the charge.

Notice of administrative penalty

45.4( 1) In addition to the case referred to in paragraph 45.2(2)(c), the Commissioner shall impose an administrative penalty by issuing a notice of administrative penalty

(a) if the eligible business does not comply with any provision mentioned in the notice of non-compliance within the time period referred to in subsection 45.1(6) or extended under paragraph 45.2(2)(b), or

(b) if the eligible business does not submit written submissions within the time period referred to in subsection 45.2(1).

45.4( 2) The Commissioner shall serve a notice of administrative penalty on the eligible business

(a) by registered mail to the eligible business’s latest known address, or

(b) in the manner in which personal service may be made under the Rules of Court.

45.4( 3) Service by registered mail is deemed to have been effected five days after the date the notice of administrative penalty is deposited in the mail.

45.4( 4) The notice of administrative penalty shall include the following information:

(a) the name of the eligible business required to pay the administrative penalty;

(b) the provision listed in Column 1 of Schedule B and the date on which the violation or failure to comply occurred;

(d) when and how the administrative penalty shall be paid; and

(e) information with respect to the right for a review of the Commissioner’s decision as provided for in section 45.5.

45.4( 5) A notice of administrative penalty shall not be served more than one year after the Commissioner first had knowledge of the violation or failure to comply.

Review of administrative penalty

45.5( 1) An eligible business that is the subject of a notice of administrative penalty may request that the Minister review the Commissioner’s decision to issue the notice by applying to the Minister on the form provided by the Minister within 15 days after being served with the notice.

45.5( 2) After receiving a request for a review under subsection (1), the Minister shall conduct the review of the decision by holding a hearing to consider the matter as soon as the circumstances permit.

45.5( 3) The Minister shall not make a determination with respect to a review unless the Minister has given the eligible business that is the subject of the notice of administrative penalty an opportunity to make representations in writing or orally.

45.5( 4) Following the Minister’s review, the Minister may uphold, vary or rescind the decision of the Commissioner.

45.5( 5) The eligible business that is the subject of the notice of administrative penalty may appeal the decision of the Minister to The Court of King’s Bench of New Brunswick.

Payment of administrative penalty

45.6( 1) If an eligible business that is the subject of a notice of administrative penalty does not apply for a review under section 45.5, the eligible business shall pay the administrative penalty set out in the notice within 15 days after being served with the notice.

45.6( 2) If an eligible business that is the subject of a notice of administrative penalty applies for a review under section 45.5 and the Minister confirms or varies the Commissioner’s decision, the eligible business shall pay the administrative penalty within 15 days after the Minister makes the decision.

45.6( 3) The administrative penalty shall be payable to the Minister.

45.6( 4) For the purposes of this Act only, an eligible business that pays an administrative penalty is deemed to have violated or failed to comply with the provision listed in Column 1 of Schedule B in respect of which the payment of the administrative penalty was made.

Amount of the administrative penalty

45.7 The amount of an administrative penalty is as follows:

(a) for a first violation or failure to comply with the provision listed in Column 1 of Schedule B, the minimum amount listed beside it in Column 2 of Schedule B;

(b) for a second violation or failure to comply with the provision listed in Column 1 of Schedule B, an amount equal to twice the minimum amount listed beside it in Column 2 of Schedule B; and

(c) for a third or subsequent violation or failure to comply with the provision listed in Column 1 of Schedule B, the maximum amount listed beside it in Column 2 of Schedule B.

Failure to pay administrative penalty

45.8 If an eligible business that is required to pay an administrative penalty under subsection 45.6(1) or (2) fails to do so, the Minister may revoke the registration of the eligible business under paragraph 23(1)(a).

2( 30) The Act is amended by adding after section 46 the following:

Notice of objection

46.1( 1) In this section, “decision” means

(a) a decision to refuse to register or to revoke the registration of a corporation or cooperative,

(b) a decision to recover an amount from an eligible investor,

(d) a decision to impose a penalty on a corporation or cooperative registered under section 14 that has failed to meet the investment requirements prescribed by regulation, or

(e) a decision to issue a certificate stating an amount that is due and payable, including interest, if any.

46.1( 2) An eligible investor, corporation or cooperative affected by a decision may, personally or by a solicitor, within 30 days after service of the decision, serve on the Commissioner a notice of objection in duplicate in the form provided by the Minister setting out the reasons for the objection and all relevant facts.

46.1( 3) A notice of objection under this section is sufficiently served if delivered to the office of the Commissioner or sent by ordinary or registered mail addressed to the Commissioner.

46.1( 4) On receipt of a notice of objection, the Commissioner shall within 60 days consider the decision and vacate, confirm or vary the decision, and the Commissioner shall notify the person affected by personal service or by ordinary or registered mail.

Appeal to Minister

46.2( 1) If the eligible investor, corporation or cooperative is dissatisfied with the decision of the Commissioner under subsection 46.1(4), the eligible investor, corporation or cooperative may, within 30 days after receiving notice of the decision, appeal from the decision to the Minister.

46.2( 2) An eligible investor, a corporation or a cooperative may institute an appeal to the Minister by sending to the Minister and Commissioner by ordinary or registered mail, or by delivery to the offices of both, a notice of appeal in the form provided by the Minister.

46.2( 3) The notice of appeal shall set out the grounds of the appeal and the facts relative to the appeal and be accompanied by any supporting documentation or other pertinent information.

46.2( 4) Within 30 days after receipt of the notice of appeal, the Commissioner shall submit a written response to the Minister and provide a copy of the response to the appellant.

46.2( 5) Subject to the regulations, the Minister may conduct the appeal on the basis of the notice of appeal, the supporting documentation and other pertinent information referred to in subsection (3) and the Commissioner’s written submission, or the Minister may hold an oral hearing if the Minister considers that the holding of an oral hearing is necessary in order to act in a procedurally fair manner.

46.2( 6) Within 30 days after the receipt of the Commissioner’s written submission, the Minister shall fix the date for considering the appeal and give notice to the Commissioner and the appellant of the method by which the appeal will be conducted.

46.2( 7) In the case of an oral hearing, the Minister shall specify the date, time and location of the hearing in the notice referred to in subsection (6).

46.2( 8) The Minister may affirm, vary or reverse the decision of the Commissioner, and the Minister, having made the Minister’s decision, shall give the appellant written notice of the decision by personal service or by ordinary or registered mail.

Appeal to The Court of King’s Bench of New Brunswick

46.3( 1) If the appellant is dissatisfied with the decision of the Minister under subsection 46.2(8), the appellant may, within 30 days after the date of service or mailing of notice of the Minister’s decision, appeal from the decision to The Court of King’s Bench of New Brunswick.

46.3( 2) The appeal shall be commenced by serving on the Minister a notice of appeal in writing setting out the grounds of appeal and stating shortly the facts relative to the appeal.

Procedures of The Court of King’s Bench of New Brunswick

46.4 For the purposes of section 46.3, sections 15 to 19 of the Revenue Administration Act apply with the necessary modifications.

Appeal to Court of Appeal

46.5 A decision of The Court of King’s Bench of New Brunswick may be appealed to the Court of Appeal on any point of law raised on the hearing of the appeal, and the rules governing appeals to that Court from a decision of The Court of King’s Bench of New Brunswick apply to appeals under this section.

Requirement to keep records

46.6 An eligible investor, a corporation or a cooperative that serves a notice of objection shall keep all records relating to the matter of the objection until the objection is disposed of and any appeal is disposed of or the time for initiating any such appeal has expired.

Effect of appeal

46.7 Neither the giving of a notice of appeal by any person nor any delay in the hearing of an appeal shall in any way affect the due date or interest or any liability for payment provided under this Act in respect of any amounts due to the Crown in right of the Province that are the subject matter of the appeal, but in the event of the liability to pay an amount due being set aside or the amount due being reduced on appeal, the Minister shall refund the amount or excess amount that has been paid to the Crown in right of the Province and any additional interest paid on the amount.

2( 31) The heading “Administration of Act” preceding section 47 of the Act is repealed and the following is substituted:

Administration of the Act and designations

2( 32) Section 47 of the Act is repealed and the following is substituted:

47( 1) The Minister is responsible for the administration of this Act.

47( 2) The Minister may designate one or more persons to act on the Commissioner’s behalf or the Minister’s behalf for the purposes of this Act.

47( 3) The Commissioner shall act under the instructions of the Minister, has general supervision over all matters relating to this Act and shall perform all duties that are assigned to the Commissioner by this Act, the Lieutenant-Governor in Council or the Minister.

47( 4) The Commissioner may designate one or more persons to act on the Commissioner’s behalf for the purposes of this Act.

47( 5) The Commissioner may, in the course of the Commissioner’s employment, issue certificates and execute or receive all other documents, affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act.

47( 6) The Deputy Minister may exercise the authority of the Commissioner under this Act.

47( 7) The Deputy Minister may designate one or more persons to act on the Deputy Minister’s behalf for the purposes of this Act.

2( 33) Subsection 48(1) of the Act is amended

(a) by adding after paragraph (c) the following:

(c.1) prescribing codes for the purposes of the definition “strategic sector” in section 1;

(b) by adding after paragraph (i) the following:

(i.1) governing the practice and procedure on appeals to the Minister;

2( 34) The Act is amended by adding the attached Schedule B after Schedule A.

TRANSITIONAL PROVISIONS AND COMMENCEMENT

Transitional provisions

3( 1) Section 9.1 of the Small Business Investor Tax Credit Act, as enacted by subsection 2(11) of this Act, applies only to a corporation registered under section 6 of the Small Business Investor Tax Credit Act after the commencement of this section.

3( 2) Section 26.1 of the Small Business Investor Tax Credit Act, as enacted by subsection 2(23) of this Act, applies only to a corporation registered under section 6 of the Small Business Investor Tax Credit Act after the commencement of this section.

3( 3) Section 46.1 of the Small Business Investor Tax Credit Act, as enacted by subsection 2(30) of this Act, does not apply to a decision made before the commencement of this section.

Commencement

4( 1) This Act, other than subsections 2(8) and (11), paragraphs 2(12)(b) and (15)(c), subsections 2(16), (19), (22), (23), (29), (30), (31) and (32), paragraph 2(33)(b), subsection 2(34) and section 3, is deemed to have come into force on March 17, 2026.

4( 2) Subsections 2(8) and (11), paragraphs 2(12)(b) and (15)(c), subsections 2(16), (19), (22), (23), (29), (30), (31) and (32), paragraph 2(33)(b), subsection 2(34) and section 3 of this Act come into force on a day or days to be fixed by proclamation.

SCHEDULE B

Column 1		Column 2
Provision		Minimum and maximum amounts of the administrative penalty
	32(1) ...............		$240 –  $10,200
	33(1) ...............		$240 –  $10,200
	42...............		$240 –  $10,200
	43(1) ...............		$240 –  $10,200
	43(2) ...............		$240 –  $10,200
	44(1)(a) ...............		$240 –  $10,200
	44(1)(b) ...............		$240 –  $10,200
	44(1)(c) ...............		$240 –  $10,200
	44(4) ...............		$140 –  $640