CHAPTER 17 An Act to provide for the collection of a Tax from persons selling grain for Future Delivery [Assented to April 27th, 1923] IS MAJESTY, by and with the advice and consent of the 1. This Act may be cited as "The Grain Futures Taxation Title. Act." 2. In this Act, unless the context otherwise requires, the Definitions. expression: (a) "grain" means wheat, oats, barley, rye or flax seed; (b) "minister" means the Municipal Commissioner or such other member of the executive council as may be designated by the Lieutenant-Governor-in-Council as minister hereunder; (c) "agreement of sale" or "agreement to sell" includes options, calls in "puts and calls," offers, indemnities and privileges; (d) "exchange" includes each and every agency, board of trade, bourse, auction place, or other meeting place, whether under shelter or in the open, at which grain and other products or merchandise are publicly bought, sold, bid for, offered or exchanged, for future delivery or contracts for such future delivery are made, either between members of such exchange or between members and non-members, patrons and the public; and includes places at which there is only one manager or firm who controls all the sales and purchases at that particular place or where no actual delivery of the grain or other products or merchandise is contemplated, and all incorporated and unincorporated associations of individuals, partnerships and corporations engaged in the business of publicly selling, buying, or exchanging grain or other products or merchandise for future delivery; (e) "at an exchange" means near to or in close proximity to or in the immediate vicinity of an exchange, as well as on the floor of an exchange; (f) "person" includes individuals, associations, partnerships and corporations; and, when construing and enforcing the provisions of this Act, the act, omission or failure of any agent or other person acting for or employed by any association, partnership or corporation within the scope of his employment or office shall in every case be deemed also the act, omission or failure of such association, partnership or corporation as well as of that person. The tax. Exemptions. Tax declared direct. How payable. Returns. 3. Upon every contract of sale of grain for future delivery made at, on or in any exchange, or similar institution or place of business in Manitoba, except as hereinafter provided, the seller or his broker or agent shall pay to His Majesty for the public use of the province a tax computed upon the gross quantities of grain sold or agreed to be sold, as follows: Upon every thousand bushels of flaxseed, twelve cents; upon every thousand bushels of wheat, six cents; upon every thousand bushels of oats, barley or rye, three cents. 4. No such tax shall be payable in any case in which: (b) either party to the contract is the owner or tenant of the land upon which the grain is to be grown, or (c) the sales are cash sales of grain or other products or merchandise which in good faith are actually intended for immediate or deferred delivery (such transactions for the purposes of this Act to be evidenced by the actual transfer of the tickets, storage or warehouse receipts, bills of lading or lake shippers' clearance receipts, or other documents of title for grain transferring actual ownership from the vendor to the purchaser in exchange for the price at the maturity of the contract) or (d) the sales are "transfer" or "scratch sales" or "pass-outs," provided that the purchase and sale are made at the same exchange, on the same day, at the same price, and for the account of the same person, or (e) the sales are made by a broker on account of a principal, and the name of the principal is not disclosed to the buyer, provided the principal sells to the broker the same quantity and the same grade and kind of grain at the same price, on the same day, on the same exchange, the only tax in this case being the tax payable by the principal. 5. The tax imposed by this Act shall be a direct tax upon the person actually entering into the contract of sale, whether such person is the principal in the contract or is acting only in the capacity of a broker or agent for some other person and is imposed solely in order to supplement the revenues of this province. 6. (1) The tax hereby imposed shall be payable in cash by the seller, his broker or agent, in each case, and every person liable to pay such tax shall send to the minister, not later than the tenth day of each month, a return showing the particulars of all sales made by him during the preceding calendar month in respect of which any tax is imposed upon him by this Act, accompanied by payment of the total amount of all such taxes. (2) Such return shall be verified by oath or statutory declaration and shall be in such form as may be prescribed by the Lieutenant-Governor-in-Council in regulations made under this Act and completed to the satisfaction of the minister. 7. The onus of proof that any transaction, regarding which the Onus. minister is in doubt, is a cash transaction within the terms of section 4 hereof, and therefore exempt from taxation under this Act, shall be upon the seller, his broker or agent, and in all such cases evidence satisfactory to the minister shall be produced to him, and failing the production of such evidence the seller shall be required to pay the tax as on a sale for future delivery. of exchanges. 8. No provisions, by-laws, rules or customs of any exchange or Customs, etc., similar institution or place of business which are inconsistent or in conflict with any provision of this Act, or with any rules or regulations made by the Lieutenant-Governor-in-Council under this Act, and no collateral or additional agreement, verbal or written, respecting the subject matter of such contract or the settlement or fulfilment thereof which is inconsistent or in conflict with any provision of this Act or of such regulations shall exempt any person from the payment of the tax hereby imposed. of dealers. 9. Every person in Manitoba who engages in the business of Registration making contracts for future delivery of grain, or has a place of business where he acts as agent or broker for making such contracts, shall register his name and place of business with the minister and shall keep such records as the minister may direct to be kept, in which shall be recorded the details and terms of all such contracts entered into by or on behalf of such person, including the names of the parties to all such contracts, and any assignments or transfers thereof, and the manner in which such contracts were fulfilled, discharged or terminated, such records to include copies of the clearing sheets furnished to the clearing house, if any, of which such person is a member. Such records shall be preserved for a period of three years from the dates of such transactions, or for a longer period if the minister so directs, and shall at all times be open to the inspection of the minister or any officer authorized by him in that behalf. failure to keep records. 10. Every person who fails to properly register or keep and Penalty for preserve the records required by the preceding section or to register or make the returns as herein provided, or who fails to pay the tax payable by him when due, shall pay, in addition to such tax, a penalty equal to fifty per cent of the tax due from him. He shall also be guilty of an offence against this Act and liable to the penalties prescribed under section 13 of this Act. His Majesty may also recover such tax and penalty with costs by action in any court of competent jurisdiction. 11. For the purpose of ascertaining whether the tax imposed Inspection. by this Act has been paid, the minister may authorize, in writing, an officer of his department to examine the books, records and papers of any company, firm or person engaged in transactions taxable under this Act, and any such company, firm or person refusing to allow such examination to be made shall be liable to the penalty provided for in section 13 hereof, but the person making such examination shall not disclose any information acquired by him except to the minister. Rules and regulations. Officials. Penaltygeneral. 12. (1) The Lieutenant-Governor-in-Council may make such rules and regulations as may be deemed necessary for the collection of the tax imposed by this Act and otherwise to enforce its provisions, and for requiring all persons coming within the provisions of this Act to keep such records and accounts and to make such returns verified under oath or otherwise as will fully and correctly disclose all transactions in respect of which any tax is imposed by this Act. (2) The Lieutenant-Governor-in-Council may appoint and fix the remuneration of agents and officers to make inspections of books and records of any broker or trader and to collect the tax and otherwise to enforce the provisions of this Act. (3) Any such rules and regulations when published in The Manitoba Gazette shall have the same force and effect as if incorporated in this Act. 13. Every person liable for the payment of any tax imposed by this Act who fails to pay or evades or attempts to evade the payment of such tax and every person who fails to observe any of the requirements of this Act or otherwise violates any of its provisions or any rule or regulation made in pursuance hereof, or any requirements of the minister pursuant to the authority hereof, shall be guilty of an offence punishable upon summary conviction and liable to a fine of not less than two hundred dollars or more than one thousand dollars, and in the case of a natural person, may, in addition, be punished by imprisonment for not less than ten days and not more than one month. 14. This Act shall come into force on the day it is assented to. |