1993 Legislative Session: 2nd Session, 35th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


HONOURABLE GLEN CLARK
MINISTER OF FINANCE AND
CORPORATE RELATIONS

BILL 13 -- 1993

INCOME TAX AMENDMENT ACT (No. 2), 1993

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 (1) of the Income Tax Act, R.S.B.C. 1979, c. 190, is amended

(a) by repealing the definitions of "amount", "assessment", "business", "corporation", "employed", "employee", "employer", "fiscal period", "permanent establishment", "person", "taxable income", "taxation year" and "taxpayer" and substituting the following:

"amount" has the same meaning as in the federal Act;

"assessment" has the same meaning as in the federal Act;

"business" has the same meaning as in the federal Act;

"corporation" has the same meaning as in the federal Act;

"employed" has the same meaning as in the federal Act;

"employee" has the same meaning as in the federal Act;

"employer" has the same meaning as in the federal Act;

"fiscal period" has the same meaning as in the federal Act;

"permanent establishment" has the same meaning as in the federal Act;

"person", or any word or expression descriptive of a person, has the same meaning as in the federal Act;

"taxable income" has the same meaning as in the federal Act;

"taxation year" has the same meaning as in section 249 (1) of the federal Act and, in the case of an estate or trust arising on death, has the same meaning as in section 104 (23) of that Act;

"taxpayer" has the same meaning as in the federal Act. , and

(b) by adding the following definitions:

"balance-due day" has the same meaning as in the federal Act;

"prescribed" has the same meaning as in the federal Act; .

2 Section 1 (6) is repealed and the following substituted:

(6) Section 248 (11) of the federal Act applies for the purposes of this Act to the extent that that provision applies to sections 161 (1), (2) and (11), 164 (3) to (4) and 227 (8.3) and (9.2) of the federal Act.

3 Section 1 (7) (g) is repealed and the following substituted:

(g) subject to paragraph (g.1), a reference in that section to the federal Act or the federal regulations shall be read as including a reference to this Act or a regulation made under this Act,

(g.1) a reference in that section to the words "under this Act or under an Act of a province with which the Minister of Finance has entered into an agreement for the collection of taxes payable to the province under that Act" shall be read as a reference to this Act, and .

4 The table in section 1 (7) (h) is amended by adding the following items:

Column 1

Column 2

Criminal Code

Offence Act

Department of National Revenue 

Ministry of the Provincial minister

5 Section 10 is amended

(a) by renumbering the section as section 10 (1), and

(b) by adding the following subsection:

(2) No tax is payable under this Act by the Vancouver International Airport Authority corporation.

6 Sections 12 and 13 are repealed and the following substituted:

Application of federal provisions -- returns
of income, assessments of tax and
withholding of tax

12 Sections 150, 151, 152 (1) and (2) to (8) and 153 (1) to (3) of the federal Act apply for the purposes of this Act.

Reassessment and amended return

13 (1) Where a collection agreement is in effect, notwithstanding that the normal reassessment period for a taxpayer in respect of a taxation year has elapsed, if the tax payable under Part I of the federal Act by the taxpayer for the year is reassessed, the Provincial minister shall reassess or make additional assessments or assess tax, interest or penalties, as the circumstances require.

(2) Where a taxpayer has filed the return required by section 12 for a taxation year and, within one year from the day on or before which the taxpayer was required by section 12 to file the return for that year, has amended the return by filing with the Provincial minister a form specified by the Provincial minister claiming a deduction from income under section 111 of the federal Act in respect of non-capital losses, net capital losses or restricted farm losses sustained in the taxation year immediately following that year, the Provincial minister shall reassess the taxpayer's tax for the year.

7 Section 16 (1) is repealed and the following substituted:

(1) Subject to section 17 (3), every individual whose chief source of income is farming or fishing, other than an individual to whom section 153 (2) of the federal Act applies for the purposes of this Act, shall pay to the Provincial minister in respect of each taxation year,

(a) on or before December 31 in the year, 2/3 of

(i) the amount estimated by the individual under section 151 of the federal Act, as it applies for the purposes of this Act, to be the tax payable under this Act by the individual for the year, or

(ii) the tax payable under this Act by the individual for the immediately preceding taxation year, and

(b) on or before the individual's balance-due day for the year, the remainder of the individual's tax as estimated under section 151 of the federal Act, as it applies for the purposes of this Act.

8 Section 17 is amended

(a) by repealing subsection (1) and substituting the following:

(1) Subject to subsection (3), every individual, other than an individual to whom section 153 (2) of the federal Act applies for the purposes of this Act or to whom section 16 of this Act applies, shall pay to the Provincial minister in respect of each taxation year,

(a) on or before March 15, June 15, September 15 and December 15 in the year, an amount equal to 1/4 of

(i) the amount estimated by the individual under section 151 of the federal Act to be the tax payable under this Act by the individual for the year, or

(ii) the tax payable under this Act by the individual for the immediately preceding taxation year, and

(b) on or before the balance-due day in respect of the individual for the year, the remainder of the individual's tax as estimated under section 151 of the federal Act, as it applies for the purposes of this Act. , and

(b) by repealing subsection (3) and substituting the following:

(3) Where no federal instalments are required under section 156.1 of the federal Act for a particular taxation year, the requirements for payment by instalments under section 16 of this Act and this section are not applicable and the individual shall pay to the Provincial minister, on or before the individual's balance-due day for the particular year, the individual's tax as estimated under section 151 of the federal Act, as it applies for the purposes of this Act, for the particular year.

9 Section 19 is repealed and the following substituted:

Application of federal provisions -- returns, payments and interest

19 Sections 70 (2), 104 (2) and (23) (e), 158 to 160, 160.1 (1), 160.2, 160.3 and 161 (1) to (7), (9) and (11) of the federal Act apply for the purposes of this Act.

10 Sections 22 to 23.1 are repealed and the following substituted:

Application of federal provisions -failure to file return or corporate return
and failure to provide information

22 (1) Sections 162 (1) to (3), (5), (7) and (11) and 235 of the federal Act apply for the purposes of this Act.

(2) Where a collection agreement is in effect, the Provincial minister may refrain from levying or may reduce a penalty provided for in this section if the person who is liable to the penalty is required to pay a penalty under section 162 of the federal Act in respect of the same failure.

Application of federal provisions -- failure to report income, false statement
or omission and burden of proof on appeal

23 (1) Section 163 (1) and (2) (a) of the federal Act, as they would apply without the references to section 120 (2) of the federal Act, and section 163 (2.1), (3) and (4) of the federal Act apply for the purposes of this Act.

(2) Where a collection agreement is in effect, the Provincial minister may refrain from levying or may reduce a penalty provided for in this section if the person who is liable to the penalty is required to pay a penalty under section 163 of the federal Act in respect of the same failure or the same false statement or omission, as the case may be.

Application of federal provisions -- penalty for late or deficient instalments

23.1 Section 163.1 of the federal Act applies for the purposes of this Act.

11 Section 24 (1) is repealed and the following substituted:

(1) Section 164 (1) to (1.31) and (1.5) to (7) of the federal Act applies for the purposes of this Act.

12 Section 25 is repealed and the following substituted:

Application of federal provisions -objections to assessments and extension of time

25 Sections 165, 166.1 and 166.2 of the federal Act apply for the purposes of this Act.

13 Section 26 (1) is repealed and the following substituted:

(1) Section 169 of the federal Act applies for the purposes of this Act.

14 Section 29 is repealed and the following substituted:

Application of federal provisions -irregularities, extension of time and private hearings

29 Sections 166, 167 and 179 of the federal Act apply for the purposes of this Act.

15 Section 32 is repealed and the following substituted:

Application of federal provisions -- administration, interest, garnishment
and proceedings to collect

32 Sections 220, 221.1, 224, 225.1 and 225.2 of the federal Act apply for the purposes of this Act.

16 Sections 34 and 35 are repealed and the following substituted:

Application of federal provisions -- debts to Her Majesty

34 Section 222 of the federal Act applies for the purposes of this Act.

Application of federal provisions -- certificates

35 (1) Section 223 (2) to (4) of the federal Act applies for the purposes of this Act.

(2) Where a collection agreement is in effect, subsection (1) does not apply, but the Provincial minister may proceed under section 223 of the federal Act for the purpose of collecting any amount payable under this Act by a taxpayer.

17 Sections 37.1 to 40.1 are repealed and the following substituted:

Application of federal provisions -- acquisition of debtor's property

37.1 Section 224.2 of the federal Act applies for the purposes of this Act.

Application of federal provisions -- payment of money seized from tax debtor

37.2 Section 224.3 of the federal Act applies for the purposes of this Act.

Application of federal provisions -- seizure of goods

38 Section 225 of the federal Act applies for the purposes of this Act.

Application of federal provisions -- taxpayer leaving Canada or defaulting

39 Section 226 of the federal Act applies for the purposes of this Act.

Application of federal provisions -- withholding taxes

40 (1) Section 227 (1) to (5), (8), (8.2) to (9), (9.2), (9.4), (9.5) and (11) to (13) of the federal Act applies for the purposes of this Act.

(2) The Provincial minister may assess

(a) any person for any amount that has been deducted or withheld by that person under this Act or a regulation or under a provision of the federal Act or of the federal regulations that applies for the purposes of this Act, and

(b) any person for any amount payable by that person under section 224 (4) or (4.1), 227 (8), (8.3) to (9), (9.2), (9.4) or (9.5), 227.1 or 235 of the federal Act, as they apply for the purposes of this Act, or under section 45 of this Act,

and, where the Provincial minister sends a notice of assessment to that person, sections 12 and 19 to 30 are applicable.

Application of federal provisions -- liability of directors

40.1 Section 227.1 of the federal Act applies for the purposes of this Act.

18 Section 47 (2) is repealed and the following substituted:

(2) Section 238 (2) of the federal Act applies for the purposes of this Act.

19 Section 48 is repealed and the following substituted:

Application of federal provisions -- further offences

48 Section 239 (1) of the federal Act applies for the purposes of this Act.

20 Sections 51 and 52 are repealed and the following substituted:

Application of federal provisions -- liability of officer or agent of corporation

51 Section 242 of the federal Act applies for the purposes of this Act.

Application of federal provisions -restriction on power of court

52 Section 243 of the federal Act applies for the purposes of this Act.

21 Section 53 is amended

(a) by repealing subsections (1) to (10), (12), (13), (14), (15) and (17) and substituting the following:

(1) Section 244 (1) to (5), (7) to (11), (13) to (17) and (20) of the federal Act applies for the purposes of this Act. , and

(b) by renumbering subsections (11), (13.1), (16), (18), (19) and (20) as subsections (2), (3), (4), (5), (6) and (7) respectively.

22 Section 59 (4) is amended

(a) by repealing subsection (4) and substituting the following:

(4) The adjusting payment to be made under this section shall be an amount that equals the aggregate of the amounts deducted or withheld under section 153 (1) of the federal Act, as it applies for the purposes of this Act, in respect of the tax payable for a taxation year by individuals who file returns under the federal Act, are taxable under that Act for that year and are resident on the last day of that year in the non-agreeing province to which the adjusting payment is to be made. , and

(b) in subsection (8) by striking out everything after paragraph (b) and substituting the following:

and that payment discharges any obligation the government of Canada may have to pay British Columbia for any amount deducted or withheld under section 153 (1) of the federal Act, as it applies for the purposes of this Act, to which subsection (5) of this section applies.

23 Section 60 is repealed and the following substituted:

Enforcement of judgments

60 Notwithstanding the Court Order Enforcement Act, where a collection agreement is entered into, a judgment of a superior court of an agreeing province under that province's income tax statute, including any certificate registered in that superior court in a manner similar to that provided in section 223 (3) of the federal Act, as it applies for the purposes of this Act, may be enforced in the manner provided in section 223 of the federal Act, as it applies for the purposes of this Act, by registering a copy of the judgment or certificate, certified by the registrar of the proper superior court, and the registered judgment or certificate shall, for the purposes of this Act, be deemed to be a judgment of the Supreme Court.

Commencement

24 (1) The amendment made by section 1 (b) adding the definition of "balance-due day" applies after December 31, 1989 and is retroactive to the extent necessary to give it that effect.

(2) The amendment made by section 1 (b) to the definition of "prescribed" applies on and after December 17, 1991 and is retroactive to the extent necessary to give it that effect on and after that date.

(3) Section 2 shall be deemed to have come into force on January 1, 1987, and interest computed in respect of a period ending before that day shall be computed on and after that day, except that the reference to section 164 (3.2) of the federal Act in section 1 (6) of the Income Tax Act, as enacted by section 2 of this Act, applies with respect to refunds for the 1985 and subsequent tax years, and this section is retroactive to the extent necessary to give it that effect.

(4) Section 5 shall be deemed to have come into force on January 1, 1992 and is retroactive to the extent necessary to give it that effect on and after that date.

(5) The references to section 152 (3.1) of the federal Act in section 12 of the Income Tax Act, as enacted by section 6 of this Act, and section 13 (1) of the Income Tax Act, as enacted by section 6 of this Act, apply after April 27, 1989, other than with respect to a taxation year of a taxpayer for which a notice of an original assessment under the Income Tax Act in respect of the taxpayer for the year, or a notification that no tax is payable by the taxpayer for the year, was mailed on or before April 27, 1986, and are retroactive to the extent necessary to give them that effect.

(6) The reference to section 152 (4.2) of the federal Act in section 12 of the Income Tax Act, as enacted by section 6 of this Act, applies with respect to assessments made in respect of the 1985 and subsequent taxation years and is retroactive to the extent necessary to give it that effect.

(7) Sections 7 and 8 apply in respect of the 1990 and subsequent taxation years and are retroactive to the extent necessary to give them that effect.

(8) Section 9 applies to the 1988 and subsequent taxation years and is retroactive to the extent necessary to give it that effect.

(9) The references to sections 162 (5) and 235 of the federal Act in section 22 (1) of the Income Tax Act, as enacted by section 10 of this Act, apply on and after December 17, 1991 and are retroactive to the extent necessary to give them that effect.

(10) The reference to section 162 (11) of the federal Act in section 22 (1) of the Income Tax Act, as enacted by section 10 of this Act, applies with respect to amounts referred to in section 161 (7) (a) of the federal Act in respect of subsequent taxation years referred to in that provision ending after July 13, 1990, and is retroactive to the extent necessary to give it that effect.

(11) The reference to section 163 (4) of the federal Act in section 23 (1) of the Income Tax Act, as enacted by section 10 of this Act, applies with respect to amounts referred to in section 163 (4) of the federal Act in respect of subsequent taxation years ending after July 13, 1990, and is retroactive to the extent necessary to give it that effect.

(12) Section 11 applies with respect to refunds for the 1985 and subsequent taxation years and is retroactive to the extent necessary to give it that effect.

(13) Section 12 applies to applications filed after the day that is 30 days after December 17, 1991 and is retroactive to the extent necessary to give it that effect.

(14) Section 15 applies with respect to enactments assented to or promulgated after 1989 and shall be deemed to have come into force on January 1, 1990 and is retroactive to the extent necessary to give it that effect on and after that date.

(15) The references to section 226 of the federal Act in section 39 of the Income Tax Act, and to section 235 of the federal Act in section 40 (2) (b) of the Income Tax Act, as enacted by section 17 of this Act, apply on and after December 17, 1991 and are retroactive to the extent necessary to give them that effect on and after that date.

(16) The reference to section 244 (14), (16) and (20) of the federal Act in section 53 (1) of the Income Tax Act, as enacted by section 21 of this Act, applies on and after December 17, 1991 and is retroactive to the extent necessary to giveit that effect on and after that date.

(17) Section 22 shall be deemed to have come into force on July 17, 1989 and is retroactive to the extent necessary to give it effect on and after that date.

 
Explanatory Notes

SECTION 1:

(a) changes these definitions to follow those of the federal Income Tax Act;

(b) adds new definitions to parallel the federal Income Tax Act.

SECTION 2: makes the British Columbia Act rely on the federal provision regarding compound interest in relation to the listed sections.

SECTION 3: adds new interpretation rules regarding the application of the federal Income Tax Act provisions to this Act.

SECTION 4: Consequential to the amendments to section 53 of the Act.

SECTION 5: provides an income tax exemption for the corporation that operates the Vancouver International Airport, retroactive to the start of the 1992 taxation year.

SECTION 6:

SECTION 7: Consequential to amendments to the federal Income Tax Act regarding the term "balance-due day".

SECTION 8: Consequential to amendments to the federal Income Tax Act regarding the term "balance-due day".

SECTION 9: removes the reference to section 161 (3) of the federal Income Tax Act, which has been repealed.

SECTION 10: harmonizes these provisions with the federal Income Tax Act.

SECTION 11: adds references to new provisions of the federal Income Tax Act.

SECTION 12: adds references to new provisions of the federal Income Tax Act.

SECTION 13: harmonizes this provision regarding taxpayer appeals with the federal Income Tax Act.

SECTION 14: removes references to repealed provisions of the federal Income Tax Act.

SECTION 15: adds references to new provisions of the federal Income Tax Act.

SECTION 16: harmonizes these provisions with the federal Income Tax Act.

SECTION 17: harmonizes these provisions with the federal Income Tax Act.

SECTION 18: harmonizes this provision regarding offences with the federal Income Tax Act.

SECTION 19: harmonizes this provision regarding penalties for offences with the federal Income Tax Act.

SECTION 20: harmonizes these provisions with the federal Income Tax Act.

SECTION 21: harmonizes this provision regarding procedures on prosecutions for offence under the Act with those under the federal Income Tax Act.

SECTION 22: changes references to the federal Income Tax Act as a consequence of the 1989 repeal of section 15 of the British Columbia Income Tax Act.

SECTION 23: Consequential to the repeal of section 35 of the Act regarding the filing of certificates.

SECTION 24: makes the various provisions of the Act come into force in parallel with the applicable federal Income Tax Act provisions.


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