Logging Tax Act (Chapter 258)

LO ( ,GING TAX CHA i JTER 2.58 The Logging Tax Act I. In t h is Ad, l nte rp re tatm u (a) " logg ing ope ra t ions " includes t he sa le of s tan d ing tim ber , the sal e of the ri.rht to cu t st a nd ing t im ber, t he sale of logs, th e deliver y of logs to a sawm ill, pul p or pa per plant or ot her place f,x process ing or manufacturing, th e delivery of logs to a ca rr ier for export , th e exp ort u.'logs, t he acquisition of sta.id ing timber , t he acquisi ti on of the r ight to cut stand in., timber; the cutting of logs from stand ing timber , the acqu isit ion of logs, the im-por t of logs, and th e transportat ion of logs, or an y com bm ation of suc h operations; (b) " M inister " means t he Minister of Revenue; (c) " taxa t ion year" means the calendar year or, where th e fiscal year of the taxpayer does not coincid e wit h th e ca lendar year, the fiscal year end ing within th e ca lendar year ; (d) "taxpayer " means a u individual, partnership, assoc ia- t ion, sy nd icate or corporat ion that engages in logging operat ions in Ontario, and includes the heirs, executors, administrators, trustees and agents, as the case may be, of any of them ; (e) " T re asurer " means th e Treasurer of Ontario and Minis ter of Economics. R .S .O. 1960 , c. 224 , s. 1, amended. 2.- (1) Every taxpayer shall for every taxationyear pay a tax Tax of 10 per cent on the income in excess of $10,000 that he der ives during suc h year from logging operat ions. R.S.O . 1960, c. 224 , s.2 ( I) ; 1962-63, c. 77, s. 1 (1) . (2) There may bededucted Irom the tax oth erwise payable by Ded uc tio n d hi . for a taxati I from taxa taxpayer un er t IS sec t ion 0 ,' a taxauon year an-amount equa to 10 per cent of that port ion of his income from loggin g operations in excess of $10,000 that is earned in the taxat ion year outside Ontario . R.S.O. 1960 , c. 224, s. 2 (2) ; 1962-63, C. 77, S. 1 (2) . (:3) The amount of income tl .at shall be deemed to be earned Allocation id () . f . 0 h I f of incomeOUtSI e ntario or a taxation YCJJ' IS t e tota 0 , (a ) t ha t proportion of the difference between the income 1 C ha p. 2.')8 LOG GING TA X Operations by sa me taxpayer Affiliated corporauo ns Interpre ta tio n (h~ r \ v cd ~r()rn logging operations ly the taxpu.... er Ior the tax:\! ion year a nd t he total of, (:; ~ he difference be tween t he urnoun t for which t. lu uixpaycr sold sta nd ing tim I er dur ing t he l.axa t ion vea r and t he cos t of acqu ixiton then -of' , and (ii) '.he diff erence bet ween the nmount for which the taxpayer sold the right tc cu t s ta nd ing t im ber d ur ing the taxation year and the cos t of ucqu isition t hereof, that, t he quantity of logs cut or acquired by the taxpayer outside Ontario isof the total c ua nt ity of logs cut or acquiredby the taxpayer during ~, he taxation year ; and (b) t he d ifference between the amount for which the tax payer so ld stand ing timber s itua ted outside Ontar io during t he taxation yea r and t:1e cos t of acquisition thereof; and (c) t he difference between the amount for which the tax payer so ld the right to cu t st and ing timber situa ted outsi de Ontario during the taxation year and the cos t of acq u isit ion thereof. R.S.O. 1961) , c. 224 , s . 2 (3). (4) For the nurposes of determining liability to taxation under this Act, all logging operations owned, leas ed, worked or operated by the same taxpayer, or the income fro m which accrues to th e same taxpayer . shall be deemed to be and be dealt with as one and t he same logg ing ope ra tion and no t as separate logging opera tions. (.'j ) Where logging operations are car ri -d on by two or more affiliated or assoc ia ted corpora t ions tha, are under th e sa me ge neral control, or where the income of sur- h corporations accru es for the benefit of su bst a nt ially the same s hareholders, the income deri ved from t he logging operations by each of such corpora t ions shall be determined in accordance with se-it ions 3 and 4, and the incomes thereof, after having been so determined, shall be com bined and dealt with for th e purpose of sec t ion 2 3S though they were th e income of one and t he sa rr e taxpayer . 1 96~-63 , c. 77 , s . I (3) . 3. In this Act, " income derived from logging operat ions" means the net profit or gain of the taxpay-er during the taxation yea r determined by deducting from the va'u e of the logs disposed of, the total cos t to him of , (a ) the acqu isition of standing tim be r: (b) the acquisition of the right to cu: standing timber; (c) cu tting logs from standing t imber; (d ) t he acqu isition of logs ; 2 LOGGING TAX Chap. 25.'1 (e) the import of lc.zs: and (f) the transportauon of logs, but excluding from such to tal cost any amount withdrawn by any individual or any member of a partnership, syndicate or associa tion as salary or other romuneration if such individual, partner ship, syndicate or association is a taxpayer. R.S.O. !H60, c. 224, s.3. 4. In this Act, "value of logs disposed of" means, Interpre tation (a) in the case of the sale of standing timber, the amount for which the taxpayer sold it; (b) in the case of the sale of the right to cut standing timber, the amount fer which the taxpayer sold such right whether on a scumpage, royalty or other basis used in calculating such amount; (c) in the case of the sale of logs, the amount for which the taxpayer sold them; (d) in the C3..'>e of t.ie delivery of logs to a sawmill, pulp or paper plant or place for processing logs operated by the taxpayer when-in the logs are processed or manufac tured into a product, the difference between, (i) the sale value of such product, and the total of, (ii) the cost of such processing or manufacturing, in cluding capital cost allowances with respect to machinery. equipment, plant, buildings, works and improvements used therein and all charges relating to such orocessing or manufacturing except amounts withdrawn by any individual or any member of a partnership, syndicate or association as salary w other remuneration if such individual or partnership, syndicate or association is a taxpay er and except taxes payable under this Act, that would be deductible in computing the income of the taxpayer from such processing or manufacturing under Divisions A and B of Part 111 of The R S 0 1970 Corporations Tax Act and the regulations made c. '9i' . thereunder if those Divisions were applicable to the taxpayer, and (iii) an amount by way of return of capital employed by the taxpayer in processing or manufacturing logs equal to 8 per cent of the original cost to him of the depreciable assets used by him in such processing or manufacturing, including machinery, equipment, plant, buildings, works and improvements, but such amount shall not be less than 35 per cent or 3 Chap. 2IiH L()(;<i I N<i TAX I!.SO. 1970, ('.91 Inadequate considera tion Idem Idem more than fir> pr-r cent of an r-rnount ('qllal to the oj;frerf'nce between the income 'Ierived by him from ail sources, measured in accorr ance with Divisions A and B of Part III of The Corpirations Tax Act but before the deduction under ':lat Act of any tax payable under this Act, and thr- total of, (1\) the returns received by him by way of divi dends, interest or other Eke payments from stocks, shares, debentures, loans or other like investments, and (B) the net profit, if any, derived by him from and attributable in accordance with sound ac counting principles to the carrying on of any business or derived from and so attributable to any source other than logging operations and the processing or manufacvuring of logs, and (C) the net profit, if any, derived by him under clauses a, band c, and, whether such processing or manufacturing is within or outside Ontario, (iv) the cost of transportation of the logs from the point of delivery to a carrier to the point of deli very to the sawmill, pulp or paper plant or other place used for the processing or manufacturing of the logs. R.S.O. 1960, c. 224, s. 4; 1962~n, c. 77, s. 2. 5.-( 1) Where a taxpayer purchases anything from a person with whom he is not dealing at arm's length a; a price in excess of the fair market value, the fair market value tiereof shall, for the purpose of computing the income of the taxpayer under sections 3 and 4, be deemed to have been paid or to be payable therefor. (2) Where a taxpayer sells anything to a person with whom he is not dealing at arm's length at a price less than the fair market value, the fair market value thereof shall, 'or the purpose of computing the income of the taxpayer under »ections 3 and 4, be deemed to have been received or to be receivaile therefor, (3) Where a taxpayer pays or agrees to pay to a person with whom he is not dealing at arm's length as prico, royalty, rental or other payment for use or reproduction of any property an amount computed at a rate higher than that at which s.rnilar payments by other persons in the same kind of business are computed, an amount computed at the rate at which similar 1-ayrnents are made by such other persons shall, for the purpose of com pu ting the income of the taxpayer under sections 3 and 4. be deemed to have been the amount that is paid or is payable tht', efor. 4 L()(; (; I:'W '1'.\ X ( :hap,25H (4 ) Whore a tuxp..yer is an incorporuted compuny and directly ldem or indirectly dis tr ibite« to its shareholders an ., of its property either on winding 1I) , or otherwise, for 110 eous.derntion or for a considerut.ion below thl' fair market value, rf t hr: sale thereof at t1w fair market val .re would have increased tlH' income of the taxpayer under sec ions :l and 4, it shall he d' :f:nH'd , for the purpose of deterrnir. ing such income, to hnve soid tlw property during the taxation year and to have received therefor the fair market value thereof. (.5 ) For the purpose of this section, Arm '. length (a) a corpora t ion and a person or one of several persons by whom it is d irect ly or indirectly controlled ; (b) corporatioi s controlled directly or indirectly by the sa me perso.i; or (c) persons connected by blood relationship, marriage or adoption, shall , without extending the meaning of the expression " to deal with each other at arm's length", be deemed not to deal with each other at arm's length . R .S.O. 1960, c. 224 , s. 5. 6.-( 1) A return of the income of each taxpayer for each Return taxation year shall, without notice or demand therefor, be filed with the Minister co ntaining such information as is required, . (a) in the case of a corporation, by or on behalf thereof, withirisix months from the end of the taxation year ; (b) in the case of a person who has died without making the return, by .iis legal representatives , within six months from the day of death ; (c) in the case oi an estate or trust, within ninety days from the end of tne taxation year; (d ) in the case .J! any other taxpayer, on or before the 30th day of April in the next year, by that taxpayer or, if he is unable for a ny reason to file the return, by his guardian, committee or other legal representative; or (e) in the case where no person described by clause a, b, c or Ii has filed .he return, by such person as is required by notice in writing from the Minister to file the return, within sur a reasonable time as the notice speci fies . R .S.O. 1960, c. 224, s. 6 (1) , amended. (2) Every person, whether or not he is liable to pay tax under Demandfor t.his Act for a taxation year and whether or not he has filed a return return under subsec t ion I, shall upon receipt at any time of a demand therefor in writing from the Minister, file for t hwit h with the (VI inister a return of his income for that year, containing such information as is required , R.S.O. 1960, c. 224, s. 0 (2) , amended. 5 Chap.2.'iX LOGGING TAX Dearh of a partner or proprietor Exte""ion Estimate of tax A1tMee8men t of tax Notice of assesement Liability for tax not affected Re-. ment, etc. Minister not bound by return (;~) I':very trustee in bunkruptcy, assigne», liquidator, rer-eivur. trustee or cornrn it.tee :tnd cvcrv agent or ot.l.er person adm iuistr-r ing; rnunaginr; wil'ding lip, cont.rnlling or »t.hr-rwise dl'aling with the proper ty, 'lIl1:iilH'SS, l'1:itatl' or income of .: taxpaver who has not. filed a n-Lurr, '(II' a t.uxut.ion year 11..<; required by thi1:i sl'dio!l shall file a ret.urn of t'w .ncorue of such taxpayer :"01' that year. (4) Where a taxpayer who is a part.ner in or who is a proprietor of a business ('ngaged in logging operations in Ontario died after the close of a taxation year bu t before the end of the calendar year in which the taxation year closed, a seoarate return of the taxpayer's income after the close of the tax.vt.ion year to the time of death shall be filed and the tax payable under this Act shall be paid thereon as if that income were tl~(' income of another taxpayer. R.S.O. 1960, c. 224, s. 6 (3, 4). (,') The Minister may at any time extend the time for making a return under this Act. R.S.O. 1960,c. 224. s. 6 (5), amended. 7. Every taxpayer required by section f, to file a return shall estimate in the return the amount of tax payable. R.S.O. 1960, 1'.224, s. 7. 8.-( 1) The Minister shall, with all due despatch, examine each return and assess the tax for the taxation year and the interest and penalties, if any, payable. (2) After examination of a return, the Minister shall send a notice of assessment to the person by whom the return was filed. (3) Liability for tax under this Act is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made. (4) The Minister, may, at any time, assess tax, interest or penalties and may, (a) at any time, if the taxpayer or pe-son filing the return has made any misrepresentation or committed any fraud in filing the return or supplying information under this Act; and (b) within six years from the day of an original assessment in any other CMe, reassess or make additional assessments. (5) The Minister is not bound by a return or information supplied by or on behalf of a taxpayer and, in making an assessment, may, notwithstanding a return or information so supplied or if no return has been filed, as less the tax payable under this Act. 6 LOGGING TAX (Ii) An assessment shall, subject to being varied or vacated on Errors, appeal under this Act and subject to reassessment, be deemed to etc. be valid and binding notwithstanding any error, defect or omis sion therein or in any proceeding under this Act relating there to. R.1'l.O. 1960, c. 2~4, S. 8, amended. 9.-( 1) The taxes imposed by this Act shall be deemed to be Tam, due Oil the last day of the taxation year of the taxpayer for which :et<) such taxes are imposed. (2) Every taxpayer on which a tax is imposed by this Act shall Dates of pay, payment (a) not later than the close of the taxation year in respect of which the ta.\ is payable, an amount equal to one-half of the tax as estimated by him for the last preceding taxation yea' or for the taxation year in respect of which the tax is ;layable, at the rate applicable for such last-mentioned taxation year; (6) not later than the fifteenth day of the third month following tl.e month in which the taxation year in respect of which the tax. is payable closed, an amount equal to the balance of the tax as so estimated; and (c) at the time of making the return under subsection 10f section 6, the balance, if any, of the tax payable as estimated by the taxpayer in the return. (:3) Where the amount paid on account of tax payable by a Interest on taxpayer for a taxation 'year before the expiration of the time unpaid tax allowed for filing his return under section 6 is less than the amount of tax payable for the taxation year, the taxpayer liable to pay the tax shall pay interest on the difference between those two amounts from the expiration of the time for filing the return to the date of payment at the rate of 6 per cent per annum. (4) Where a taxpayer being required by subsection 2 to pay a Idem part or instalment of tax has failed to pay all or any part thereof as required, the taxpayer, in addition to the interest payable under subsection 3, shall pay interest on the amount he failed to pay at 6 per cent per annum from the day on or before which he was required to make the payment to the day of payment or the beginning of the period in respect of which he became liable to pay interest thereon under subsection 3, whichever is earlier. (.'i) For the purposes of subsection 4, the taxpayer shall be Idem deemed to have been liable to pay a part or instalment under subsection 2 cornpute.l by reference to the tax payable for, (a) the last preceding taxation year; or (6) the taxation year in respect of which the tax is payable, whichever is lesser. 7 Chap.25R LOGGING TAX Limitation on interest Penalty for default Idem PaymenlAl on behalf of otllel'll Certificate before di& tribution Liability Refundo (6) No interest under this section upon the amount by which the unpaid tax exceeds the amount estimated under section 7 is payable in respect of the period beginning twenty months after the day fixed by section 6 for filing the return with respect to which the taxes are payable or twenty months after the return was in fact filed, whichever W3.'i later, and ending thirty days from the date of the mailing of the notice of the original assessment for the taxation year. R.S.O. 1960, c. 224, s. 9. 18.-(1) When a taxpayer is in default in complying with subsection 1 of section 6, he is liable to a penalty of, (a) an amount equal to.') per cent of the tax that was unpaid when the return was required to be filed, if the tax payable by him for the taxation year that was unpaid at that time was less than $10,000; and (b) $500, if at the time the return was required to be filed, tax payable by him for the taxation year of $10,000 or more was unpaid. (2) When a taxpayer fails to complete the information re quired on the return under subsection 1of section 6, he is liable to a penalty of 1 per cent of the tax payable by him, but in no such case shall the penalty be less than $1 or more than $20. R.S.O. 1960, c. 224, s, 10. 11.-(1) Every person required by section 6 to file a return for a taxpayer for a taxation year shall, within thirty days from the date of mailing of the notice of assessment, pay all taxes, penalties and interest payable by or in respect of that taxpayer to the extent that he has or had, at any time since the taxation year, in his possession or control, property belonging to that taxpayer or his estate and shall thereupon be deemed to have made that payment on behalf of the taxpayer. R.S.O. 1960, c. 224, s. 11 (1). (2) Every assignee, liquidator, administrator, executor and other like person, other than a trustee in bankruptcy, before distributing any property under his control, shall obtain a certificate from the Minister certifying that there are not out standing any taxes, interest or penalties that have been assessed under this Act and are chargeable against or payable ou t of the property. R.S.O. 1960, c.224, s. 11 (2), amended. (3) Distribution of property without a certificate required by subsection 2 renders the person required to obtain the certificate personally liable for the unpaid taxes, interest and penal ties. R.S.O. 1960, c. 224, s. 11 (3). 12.-(1) The Minister may, upon mailing the notice of assess ment, refund, without application therefor, any overpayment made on account of the tax and he shall make such refund after 8 LOGO I NG TAX Chap. 2.')8 mailing the notice of assessment if application in writing is made therefor by the taxpayer within twelve months from the date the overpayment was made or the day on which the notice of assessment was sent. (2) Instead of making a refund that might otherwise be made Application d hi . h \1' . h h . I' bl to otherun er t IS section, t e . mister may, were t e taxpayer IS ia e t....... or about to become liable to make another payment under this Act, apply the amount of the overpayment to that other liability and notify the taxpayer of that action. R.S.O. 1960, c. 224, s. 12 (1, 2), amended. (3) Where an amount of $50 or more in respect of an overpay-Intel't18t ment is refunded or applied on other liability under this section, ~~yO;;:~t interest shall be paid or applied for the period commencing, (a) six months from the day when the overpayment arose; (b) on the day on or before which the return in respect of which the tax was paid was required to be filed; or (c) on the day that the return was in fact filed, whichever was later, and ending with the day of refunding or application aforesaid at the rate of 3 per cent per annum. (4) For the purpose of this section, "overpayment" means the Interpre aggregate of all amounts paid on account of tax minus all amounts tatson payable under this Act or an amount so paid when no amount is so payable. R.S.O. 1960, c. 224, s. 12 (3, 4). 13.-(1) Every taxpayer shall keep records and books of account at his place of business or at such other place as is designated by the Minister, in such form and containing such information as will enable the taxes payable under this Act to be determined. (2) Where a taxpayer has failed to keep adequate records and books of account for the purposes of this Act, the Minister may require him to keep such records and books of account as he specifies and the taxpayer shall thereafter keep records and books of account as so required. (3) Every taxpayer required by this section to keep records and books of account shall, until written permission for their disposal is obtained from the Minister, retain every such record or book of account and every account or voucher necessary to verify the information in any such record or book. R.S.O. 1960, c. 224, s. 13, amended. Records and books Idem Idem 14.-(1) Any person thereunto authorized by the Minister for Investi any purpose related to the administration or enforcement of this gauon Act may, at all reasonable times, enter into any premises or place where any business is carried on or any property is kept or 9 Chap. 258 LOGGING TAX Demand for information, etc. Inquiry Copies anything is done in connection with any business or any hooks or records are, Of should be, kept pursuant til this Act, and (IL) aut! it Of exam ine ttw hooks and records and uny ac count, voucher, letter, telegram or other document that relates or may relate to the information that is or should he in the books or records or the amount of tax payable under this Act; (b) examine property described by an inventory or any property, process or matter, an examination of which may, in his opinion, assist him in determining the accuracy of an inventory or in ascertaining the informa tion that is or should be in the books or records or the amount of any tax payable under this Act; (c) require the taxpayer or manager of the property or business being examined and any other person on the premises or place to give him all reasonable assistance with his audit or examination and to answer all proper questions relating to the audit or examination either orally or, if he so requires, in writing on oath or by statutory declaration and, for that purpose, require the taxpayer or other person to attend at the premises or place with him; and (d) if during the course of an audit or examination it appears to him that there has been a contravention of this Act, seize and take away any of the books, records, accounts, vouchers, letters, telegrams and other documents and retain them until they are produced in any court proceedings. (2) The Minister may, for the purposes related to the adminis tration or enforcement of this Act, by registered mail or by demand served personally, require from any person, (a) any information or additional information, including a return qr a supplementary return; or (b) production or production on oath of any books, letters, accounls, invoices, financial or other statements or other documents, within such times as are stipulated therein. (3) The Minister may authorize any person to make such inquiry as the Minister considers necessary with reference' to anything relating to the administration or enforcement of this Act. (4) Where any book, record or other document has been seized, examined or produced under this section, the person by whom it is seized or examined or to whom it is produced or any officer of the Department of Revenue may make or cause to be made one or 10 LOCGING TAX Chap.2Sg more copies thereof and the cocument purporting to be certified by the Minister or a person rl.ereunto authorized by the Minister to be a copy made pursuan t to this section is admissible in evidence and has the same probative force as the original document would have if it had been proven in the ordinary way. R.S.O. 1960, c. 224, s. 14 (1-4), amended. (5) No person shall hinder or molest or interfere with any person doing anything that he is authorized by or pursuant to this section to do or prevent or attempt to prevent any person doing any such thing. and, notwithstanding any other law to the contrary, every person shall do everything he is required by or pursuant to this section to do. (6) For the purpose of an inquiry under subsection 3, the person authorized to make the inquiry has all the powers that' may be conferred upon a commissioner appointed under The Public Inquiries Act. R.S.O. 1960, c. 224, s. 14 (5, 6). 15.-( 1) Any taxpayer who objects to an assessment under this Act may, within sixty days from the date of the mailing of the notice of assessment, by himself or by his solicitor, serve a notice of appeal on the Minister. Compliance Powers R.B.O. 1970, c.379 Notice of appeal (2) The notice of appeal shall be served by sending it by Service registered mail addressed to the Minister. R.S.O. 1960, c. 224, s. 16 (1, 2), amended, (3) The notice of appeal shall follow Form 1 to this Act, as Form of d I h I notice of closely as may be an shall set out clear y t e reasons for appea appeal and all facts relative thereto. R.S.O. 1960, c. 224, s. 16 (3). 16. Upon receipt of the notice of appeal, the Minister shall duly consider it, affirm or amend the assessment appealed against, and notify the appellant of his decision by registered mail. R.S.O. 1960, c. 224, s. 17, amended. 17.-(1) If the appellant, after receipt of the decision, is dissatisfied therewith, he may, within sixty days from the date of the mailing of the decision, send to the Minister by registered mail a notice of dissatisfaction. R.S.O. 1960, c. 224, s, 18 (1), amended. (2) The notice of dissatisfaction shall follow Form 2 to this Act as closely as may be and shall state that the appellant desires that his appeal be set down for trial. (3) The appellant shall forward with the notice of dissatisfac tion a final statement of such further facts, statutory provisions and reasons that he intends to submit to the court in support of the appeal as were not included in the notice of appeal, or in the 11 Decision of the Minister Notice of diMati& Isction Form of not.iee of dissatis Isction Statement with notice L ()( ;( ;I NG T .\X Proceeding!! voided Decillion upon rece ip t of s tatement of facts , Co py of documents to be filed M"u,er d...-med acvron alte rna ti ve, a recapitu la tion of a ll facts, statutory provisions a nd reasons included in the noti ce of appea l, toget her with such fur t her facts , prov isions and reasons as t he appe llant int ends to 8 U hrn it Lo t hr-court in su ppor t of the ap pea l. H. .S.n. 1!)liO, e. 224, s . IX (2,:n . 18.- ( 1) The appellant shall t hereupon giv e secur ity in the sum of $400 or such other sum as t he Minister requires for the costs of the appea l in a form sa t isfac tory to t he Min ist er, but in lieu of ot her secur ity th e appellant may pay into court the sum of $200 or such other sum as the Minister requires, in which case the . ap pellant shall, when paying such sum in, state the purpose for which it is pa id in and sha ll forthwith serve a notice on the M inis ter specifying the fact and pur pose of the payment. R.S.O. 1960, c. 224, s. 19 (1), am ended. (2) Cnless such security is furnished by t he appella nt within thirty days after th e mailing of th e notice of dissatisfaction, the appeal and all proceed ings thereunder are void. R.S.O. 1960, c. 224, s. 19 (2). lB. Upon receip t of the notice of d issatisfaction and statement of facts, the Minister shall send by reg istered mai l to the a ppella nt a reply admitting or denying the facts alleged and confirmi ng or amendi ng the assessment or any amended, additional or subse quent assessment. R.S.O. 1960, c. 224, s . 20, amended. 20.-(1) Within sixty days from the date of th e mail ing of the reply, th e Minister sha ll cause to be tr ansm it ted to th e Registrar of th e Supreme Court or the local retl;istrar of the court for the county or dis tri ct in which th e appella nt has his office or transacts bu sinesss, to be filed in th e court, copies of, (a ) t he return of the appellan t , if any, for the taxation year under review ; , (b) t he not ice of assess ment appealed ; (c) t he not ice of appeal ; (d ) t he decision ; (e) t he notice of dissatisfaction ; (j) t he reply ; and «(I) all other documents and papers relative to the assess ment under appeal. R.S. O. 1960, c. 224, s, 21 (1 ), amended , (2) T he matter sh all t hereu pon be deemed to be an act ion in t he court and shall beset down for tria ' for thwith by the Registrar or local registrar, as the case ma y be, and thereaf ter shall be proceeded with .in t he same manner :IS an act ion comme nced in the court, but th e court or a judge may at an y t ime before th e 12 L.,(WING TAX commencement of the trial make such other order relating to the delivery of pleadings ll.'l is considered proper. (;}) The practice and procedure of the Supreme Court, includ- Sllpr~me . h . h f I d I . i d " Courtmg tertII: I, 0 appea an L ie practice an: proce uro reiatmg to pr8t:ti<:pto appeals, apply to every such action. and every judgment and govern order !!;ivcn or made in every such action may be enforced in the same manner and by the like process as a judgment or order given or made in an action commenced in the court. R.S.O. WoO, c. 224, s. 21 (2, ;}). 21. All subsequent proceedings shall be entitled: In re The Loqqinq Tax .tlcl and the appeal of . . . . . . . . . . . . . of in Province of . the Title of cause and notice and copies of all :'urther proceedings shall be served on the 1'.'1 inister. RB.O. 1960, c. 224, s. 22, amended. 22.-( 1) After an appeal has been set down for trial, any fact Conditional or statutory provision not sot out in the notice of appeal or notice ~fei~iJ~~ of dissatisfaction may be pleaded or referred to in such manner and upon such terms as the court or a judge thereof di rects. R.S.O. 1960, c. 224, s. 23 (1). (2) The court may refer the matter back to the Minister for Matter may further consideration. R.S.O. 1960, c. 224, s. 23 (2), amended. I;':.,~f::,rred Minister 23. Subject to this Act, the Supreme Court has exclusive Jurisdictjon jurisdiction to hear and determine all questions that arise in of court connection with any assessment made under this Act, and in delivering judgment may make any order as to the payment of any tax, interest or penalty or as to costs as to the court seems right and proper. R.S.O. 1960, c. 224, s, 24. 24. An assessment shall .10t be varied or disallowed because of Irregulari any irregularity, informalitv, omission or error on the part of any ties person in the observation of any directory provision up to the date of the issue of the notice of assessment. R.S.O. 1960, c. 224, s. 25. 25. Any such proceedings before the Supreme Court here- Proceedings under shall be held in camera upon request made to the court by In ca"""", any party to the proceedings. R.S.O. 1960, c. 224, s. 26. 26. If a notice of appealis not served or a notice of dissatisfac- Right of tion is not mailed within the cime limited therefor, the right of the b~..:J taxpayer assessed to appeal ceases and the assessment is valid and binding notwithstanding any error, defect or omission therein or in any proceedings required by this Act. R.S.O. 1960, c. 224, s.27. 13 Chap.25H LOGGING TAX Debts to Her M"Jl'"ty Warraut of exeou ',ion Idem Idem Priority of tlU CompromiM 27. All taxes, interest, penalties, costs and other amounts payable under ~hi.'i Act are debts due tc Her Majesty in right of Ontario and are recoverable 3,..., such in any court of competent jurisdiction or in any other manner provided by this Act. R.S.O. WHO, c. 22·" s. 2K 28. Where an amount payable under this Act has not been paid, the Minister may, upon the expiration of thirty days from the default, issue a warrant and may direct it to the sheriff of any county or district in which any property of the taxpayer is located or situated, for the amount of the tax, interest and penalty, or any of them, owing by the taxpayer to the Treasurer, together with interest thereon from the date of the issue of the warrant and the costs, expenses and poundage of the sheriff, and such warrant has the same force and effect as a writ of execution issued out of the Supreme Court. R.S.O. 1960, c. 224, s. 29, amended. 29.-(1) When the Minister has knowledge or suspects that any person is or is about to become indebted or liable to make any payment toa taxpayer liable to make a payment under this Act, he may, by registered letter, require him to pay the moneys otherwise payable to that taxpayer in whole or in part to the Treasurer on account of the lialbility under this Act. (2) The receipt of the Treasurer for moneys paid as required under this section is a good and sufficient discharge of the original lialbility to the extent of the payment. (3) Every person who has discharged any liability to a taxpay er liable to make a payment under this Act without complying with a requirement under this section is liable to pay to Her Majesty in right of Ontario an amount equal to the liability discharged or the amount that he was required under this section to pay to the Treasurer, whichever is lesser. R.S.O. 1960, c. 224, s. 30, amended. 30. All taxes, interest, penalties, costs and other amounts payable under this Act are a first lien and charge upon the property in Ontario of the taxpayer liable to pay such taxes, interest, penalties, costs and other amounts. R.S.O. 1960, c. 224, s. 31. 31. If any doubt or dispute arises as to the liability of any taxpayer to pay a tax or any part of a tax demanded under this Act, or, if owing to special circumstances, it is considered inequitable to demand payment of the whole amount imposed under this Act, the Minister may accept such amount as he considers proper, and if the tax demanded has been paid under protest, he may refund the amount pad or any part thereof. H..S.O. 19lj(" ':. 224, s. :32, amended. 14 LOGGING TAX Chap. 2,')8 32.-( I) Every pers.n who has failed to file a return or any Offen""" information as and whe. required by or under this Act is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of $25 for each day of default. (2) Every person who has contravened section 13 or 14 is guilty Idem of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of not less than $200 and not more than $10,000 H to imprisonment for a term of not more than six months, or to both. (3) Every person, Idem (a) who has mado, or participated in, assented to or ac quiesced in the making of false or deceptive statements in a return, certificate, statement or answer filed or made as required by or under this Act; (b) who has, to evs.de payment of a tax imposed by this Act, destroyed, altered, mutilated, secreted or otherwise disposed of the records or books of account of a taxpay er; (c) who has made, or assented to or acquiesced in the making of false or deceptive entries in records or books of account of a taxpayer; (d) who has failed, or assented to or acquiesced in the failure, to enter a material particular in records or books of account of a taxpayer; (e) who has wilfully, in any manner, evaded or attempted to evade compliance with this Act or payment of taxes imposed by this Act; or (f) who has conspired with any person to commit any offence under clauses a to e, is guilty of an offence and, in addition to any penalty otherwise provided, on summary conviction is liable to a fine of not less than $25 and not more than $10,000 or to imprisonment for a term of not more than two years, or to both. R.S.a. 1960, c. 224, s. 33. 33.-( 1) Every person who, while employed in the service of Communi Her Majesty, has communicated or allowed to be communicated i~i~~~~ion to a person not legally entitled thereto any information obtained under this Act, or has allowed any such person to inspect or have access to any written statement furnished under this Act, is guilty of an offence and liable on summary conviction to a fine of not more than $200. R.S.O. 1960, c. 224, s. 34. (2) Notwithstanding e.ubsect.ion 1, the Minister may, Exception (a) communicate or allow to be communicated information obtained under this Act; or 15 Chap. 2.58 LOGGING TAX Declara t ion! Infonnation Two or more offences Limitation of proseeu t ion I!).~..;.I. c. 51 (Can .) Proof of serviee by nlt\il (b) allow inspection of or access to any written statem en t Iumished under this Ad, to an y person employed by the G overnment of Canada or an y prov inr-r- of Canudu, provided that .he inforrnut.ion and written stal,(~IlIf'ntsohtailwd by slJ(:h go vern lTlI:nt for tlH' purpost' of any Ad t ha t imposes u tax an ! communicated or furnished Oil a reciprocal basis to the Minister, and provided that the informa tion and wri tten statements will not he used for any purpose other than the administration or enforcement of a federal or provincial law that provides for the imposition of a tax . 1965, c. 6.5, s. 1, amended. 34. Declarations or affidavits in connection with returns under this Act may be taken before any person having authority to administer an oath, or before any person specially authorized for that purpose by the Lieutenant Govern or in Cou ncil, but a person so specially authorized shall not charge a fee therefor. R .S.O. 1960, c. 224, s. 35. 35.-(1 ) An information under this Act may be laid or made by anyofficer of the Department of Revenue or by any person thereunto authorized by the Minister and, where an information purports to have been laid under this Act, it shall be deemed to have been laid by a person thereunto authorized by the Minister and shall not be called in question for lack of authority of the informant except by the Minister or by [lome person acting for him . It .S.O. 1960, c. 224, s,. 36 (1) , amended. (2) An information in respect of an offence under this Act may be for one or more than one offence and no information, warrant, convict ion or other proceeding in a prosecution under this Act is objectionable or insufficient by reason of the fact that it relates to two or more offences. R . E~.O . 1960, (~ . 224, s. 36 (2). (3) An information under Part XXIV of the Criminal -Code (Canada) in respect of an offence und er this Act may be laid on or befor e a day five years from the time when the matter of the information arose or within one year from the day on which evidence, sufficient in th e opinion 0 : the Minister to justify a pros ecution for the offence, ca me to his knowledge, and his cert ifica te as to the day on which such evi dence ca me to his knowledge is conc lusive evidence thereof. (4) Whereby t his Act provision is made for sending by mail a request. for information, notice or dornand, an affidavit of an officer of the Department of Revenue sworn before a commission er or other person authorized to take affidavits, setting out that he has charge of the appropriate records, that he has knowledge of the Incts in the particular case, t hat such a request, notice or demand was sent by registered letter on a named day to the 16 LOOGINI. TAX Chap, 2,jS person to whom it was addressec., indicating such address, and that he identifies as exhibits r.ttached to the affidavit the post-office certificate of registration of the letter or a true copy of the relevant portion thereof and a true copy of the request, notice or demand, shall be received as prima facie evidence of the sending of the request, notice or demand. (.')) Where by this Act a person is required to make a return, statement, answer or certificate, an affidavit of an officer of the Department of Revenue, sworn before a commissioner or other person authorized to take affidavits, setting out that he has charge of the appropriate records and that after a careful examination and search of the records, he has been unable to find in a given case that the return, statement, answer or certificate, as the case may be, has been made by such person, shall be received as prima facie evidence that in SUC,l case that person did not make the return, statement, answer or certificate, as the case may be. (6) Where by this Act a person is required to make a return, statement, answer or certificate, an affidavit of an officer of the Department of Revenue, sworn before a commissioner or other person authorized to take affidavits, setting out that he has charge of the appropriate records and that, after careful examina tion of such records, he has found that the return, statement, answer or certificate was filed or made on a particular day, shall be received as prima facie evidence that it was filed or made on that day. (7) An affidavit of an officer of the Department of Revenue, sworn before a commissioner or other person authorized to take' affidavits, setting out that he has charge of the appropriate records and that a document annexed thereto is a document or a true copy of a document made by or on behalf of the Minister or some person exercising the powers of the Minister or by or on behalf of the taxpayer, shall be received as prima facie evidence of t.he nature and contents of the document and is admissible in evidence and has the' same probative force as the originai document would have if it had been proven in the ordinary way. (8) An affidavit of an officer of the Department of Revenue, sworn before a commissioner or other person authorized to take affidavits, setting out that he nas charge of the' appropriate records and has knowledge of the practice of the Department and that an examination of the records shows that a notice of assessment for a particular taxation year was mailed to a taxpayer on a particular day pursuant to this Act and that, after careful «xarnination and search of the records, he has been unable to find that a notice of appeal from the assessment or a notice of objection to the decision of the Minister was received within the time allowed therefor, shall be receiver, as prima facie evidence of the statements contained therein. 17 Proof of failure to comply Proof of time of com pi isnee Proof of documents Proof of no appeal Chap. 258 LOGGING TAX ' Presump tion Effect (9) Where evidence is offered under this section by an affidavit from which it appears that the person making the affidavit is an officer of the Department of Revenue, it is not necessary to prove his signature or that he is such an officer nor is it necessary to prove the signa ture or official character of the person before whom the affidavit was sworn . R.H.O. 1960, c. 224, s . :W (:l-!)), am ended. 36. This Act is effective with respect to the taxation years of taxpayers ending in 1949 and subsequent taxation years. R .S.O. 1960, c. 224, s. 37. 18 I,OGGING TAX FORM I (Section 16 (3) ) NOTICE OF ApPEAL In re The Legging Tax Act and Chap.25S (Narne of taxpayer) of the. Province of. ...... of. (Address) ............... in the Appellant Notice of Appeal is hereby given from the assessment bearing date the. .dayof. 19. .• wherein a tax of $. . W8B levied in respect of income from logging operations in Ontario for the taxation of the year 19. Then follow with: I. Full statement of facts. 2. Full statement of reason for appeal. Dated this. ... day of. ,19 (Signature of Appellant) R.S.O. 1960, c. 224, Form 1. FORM 2 (Section 18 (H) ) NOTICE OF DI88ATI8FACTION In re The Logging Tax Act and the appeal of. (Name oftax'fJ''lyer) of the .... of . (Address) . .. in the Province of. I desire my appeal to be set down for trial. Dated this .. day of. .19. (Signature) R.S.O. 1960, c. 224, Form 2. 19