1992 Legislative Session: 1st Session, 35th Parliament
FIRST READING
The following electronic version is for informational purposes only.
The printed version remains the official version.
MINISTER OF FINANCE AND
CORPORATE RELATIONS
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 Section 3 (5) (f) of the Income Tax Act, R.S.B.C. 1979, c. 190, is repealed and the following substituted:
(f) 51.5% for the 1987 to 1991 taxation years;
(g) 52% for the 1992 taxation year;
(h) 52.5% for the 1993 and subsequent taxation years.
2 Section 3.1 (3) is repealed and the following substituted:
(3) This section applies with respect to the 1991 taxation year.
3 The following section is added:
3.4 (1) The tax otherwise payable after applying sections 3 and 8 for a taxation year by an individual to whom section 3 (1) or (2) applies shall be increased by an amount equal to
(a) for the 1992 taxation year
(i) 10% of the amount by which that tax exceeds $5 300, and
(ii) 10% of the amount by which that tax exceeds $9 000 before the tax payable under subparagraph (i) is added, and
(b) for the 1993 and subsequent taxation years
(i) 20% of the amount by which that tax exceeds $5 300, and
(ii) 10% of the amount by which that tax exceeds $9 000 before the tax payable under subparagraph (i) is added.
(2) An individual who claims an amount with respect to a dependent spouse or other dependant under section 118 (1) (a), (b) or (d) (i) or (ii) of the federal Act may deduct from the amount of the increase in tax referred to in subsection (1) the lesser of
(a) the amount of the increase referred to in that subsection, or
(b) an amount equal to $50 for each dependant in respect of whom a claim was made.
4 Section 4.1 is repealed.
5 Section 4.2 is amended
(a) in subsection (4) by striking out "1995" and substituting "1996",
(b) in subsections (6) and (6.3) by striking out "section 122.4 (3) (d)" and substituting "section 122.5 (3) (f) (i)",
(c) in subsection (6.1) by striking out "and 1991" and substituting ", 1991 and 1992", and
(d) by repealing subsection (7) and substituting the following:
(7) The renter's tax reduction for the taxation years 1993 to 1996 is the amount computed under subsections (6.1) to (6.3) and reduced by:
(a) 20% of that amount for the 1993 taxation year;
(b) 40% of that amount for the 1994 taxation year;
(c) 60% of that amount for the 1995 taxation year;
(d) 80% of that amount for the 1996 taxation year.
6 Section 5 is amended
(a) by repealing subsection (1) and substituting the following:
(1) The tax payable by a corporation under this Act
(a) for the 1988, 1989 and 1990 taxation years is 14%,
(b) for the 1991 taxation year is 15%, and
(c) for the 1992 and subsequent taxation years is 16%
of the corporation's taxable income earned in the year in British Columbia. , and
(b) by repealing subsection (3.1) and substituting the following:
(3.1) The reference to 16% in subsection (3) (a) shall be deemed to be
(a) 14% for the 1988, 1989 and 1990 taxation years, and
(b) 15% for the 1991 taxation year.
7 Section 7 is amended
(a) in subsections (1), (2) and (3) by striking out "9%" wherever it appears and substituting "10%", and
(b) by repealing subsection (2.1) and substituting the following:
(2.1) The reference to 16% in subsections (1) (b) and (2) (b) shall be deemed to be
(a) 14% for the 1988, 1989 and 1990 taxation years, and
(b) 15% for the 1991 taxation year.
8 Sections 7.2 and 8.2 are repealed.
9 The following section is added:
8.72 A corporation shall calculate its tax payable for its taxation year beginning in 1991 and ending in 1992 as follows:
(a) by treating that taxation year as 2 notional taxation years, the first ending on December 31, 1991 and the second commencing on January 1, 1992;
(b) by apportioning the amount taxable between the 2 notional taxation years proportionally according to the number of days in each;
(c) by calculating
(i) tax on the first notional taxation year in accordance with the tax applicable before January 1, 1992, and
(ii) tax on the second notional taxation year in accordance with the tax applicable after December 31, 1991;
(d) by adding the amount determined under paragraph (c) (i) to the amount determined under paragraph (c) (ii), and that amount is the tax payable in respect of that taxation year.
10 Section 65 is repealed.
11 (1) This Act, other than section 5 (b), shall be deemed to have come into force on January 1, 1992 and is retroactive to the extent necessary to give it effect on and after that date.
(2) Section 5 (b) shall be deemed to have come into force on January 1, 1991 and is retroactive to the extent necessary to give it effect on and after that date.
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