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


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


Certified correct as passed Third Reading on the 2nd day of June, 1993
Ian D. Izard, Law Clerk.


HONOURABLE GLEN CLARK
MINISTER OF FINANCE AND
CORPORATE RELATIONS

BILL 8 -- 1993

SOCIAL SERVICE 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:

 
PART 1 -- RETROACTIVE TAXES

1 The amendments to the Social Service Tax Act, R.S.B.C. 1979, c. 388, made by sections 2, 6, 10 and 12 to 14 of the Social Service Tax Amendment Act, 1992, S.B.C. 1992, c. 22, are repealed and sections 2 to 7 of this Act are substituted for their effect.

2 Section 1 (1) of the Social Service Tax Act is amended

(a) by adding the following definition:

"legal services" means

(a) services that come within the meaning of the practice of law under the Legal Profession Act, and

(b) services described in section 15 of the Notaries Act, but does not include services provided by a person to that person's employer in the course of employment; ,

(b) by repealing the definition of "purchaser" and substituting the following:

"purchaser" means

(a) a person who acquires tangible personal property at a sale in the Province

(i) for the person's own consumption or use,

(ii) for consumption or use by another person at the expense of the person acquiring the property, or

(iii) on behalf of or as agent for a principal, if the property is for consumption or use by the principal or by another person at the expense of that principal,

(b) a promotional distributor that does not come within paragraph (a), to the extent that the purchase price of the tangible personal property provided by way of promotional distribution exceeds the amount of the payment specifically made for it by the person to whom that property is provided, and

(c) a person who agrees to pay or is otherwise obliged to pay consideration for legal services

(i) provided to the person for the person's own benefit or use,

(ii) provided to another recipient for that recipient's benefit or use at the person's expense, or

(iii) provided to the person on behalf of or as agent for a principal, if the legal services are for the benefit or use of the principal or another person at the expense of that principal; , and

(c) by repealing the definition of ' "sale price" or "purchase price" ' and substituting the following:

"purchase price" means a price in money, and also the value of services rendered, the actual value of the tangible personal property exchanged, acquired or repossessed, and other consideration accepted by the seller or person from whom the property passes as price or on account of the price of the tangible personal property covered by the sale and, in addition,

(a) the charges for installation of the tangible personal property sold, and for interest, finance, service, customs, excise and transportation in relation to the tangible personal property, whether or not such charges are shown separately on the invoice or in the seller's books,

(b) if the tangible personal property is purchased, manufactured, processed or otherwise acquired outside the Province and subsequently brought or sent into or received in the Province for use or consumption in the Province, the costs and expenses of and to the user for materials, labour and other manufacturing and processing costs and expenses, and for service, customs, excise, transportation and other costs and expenses incurred by the user before the use of the property in the Province, and

(c) in relation to legal services,

(i) the fees and charges, other than those prescribed as excluded, and

(ii) the prescribed disbursements that are billed or otherwise charged to a purchaser for or in relation to the legal services;

"sale price" means purchase price; .

3 The following sections are added:

Retroactive taxes on the provision of legal services in British Columbia

2.01 (1) This section applies to legal services provided in British Columbia after May 31, 1992 for which the purchase price is paid by or billed or otherwise charged to the purchaser before February 26, 1993.

(2) If the purchaser or recipient of legal services referred to in subsection (1) resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services shall be paid to Her Majesty in right of the Province by the purchaser at the rate of 6% of the purchase price.

(3) A purchaser who would otherwise be liable to pay tax under subsection (2) is exempt from that tax if the legal services do not relate to British Columbia.

(4) For the purposes of subsection (3), legal services relate to British Columbia if they involve any of the following:

(a) real property situated in British Columbia;

(b) tangible personal property, within the meaning of paragraph (a) of the definition of tangible personal property, that is ordinarily situated within British Columbia or that is to be delivered in British Columbia, or the contemplation of either of these circumstances;

(c) the ownership, possession or use in British Columbia of property other than that referred to in paragraphs (a) and (b), or the right to use such property in British Columbia, or the contemplation of any of these;

(d) a court or administrative proceeding in British Columbia or a possible such proceeding;

(e) the incorporation or contemplated incorporation of a corporation under the Company Act or the Society Act, or the registration or contemplated registration of a corporation as an extraprovincial company under the Company Act or as an extraprovincial society under the Society Act;

(f) a matter that involves the interpretation or application of an enactment as defined in the Interpretation Act or a former or proposed such enactment;

(g) a matter that involves the interpretation or application of an enactment, or a former or proposed enactment, of a jurisdiction other than British Columbia, if the matter is in relation to

(i) a physical or legal presence in British Columbia or a contemplated such presence,

(ii) an activity in British Columbia or a contemplated such activity, or

(iii) a transaction in British Columbia or a contemplated such transaction;

(h) a matter that involves the analysis or application of any law other than that referred to in paragraphs (f) and (g), if the matter is in relation to

(i) a physical or legal presence in British Columbia or a contemplated such presence,

(ii) an activity in British Columbia or a contemplated such activity, or

(iii) a transaction in British Columbia or a contemplated such transaction;

(i) a contract or covenant, or a contemplated contract or covenant, that is in relation to

(i) a physical or legal presence in British Columbia or a contemplated such presence,

(ii) an activity in British Columbia or a contemplated such activity, or

(iii) a transaction in British Columbia or a contemplated such transaction;

(j) any other matter intended for the benefit or use in British Columbia of the purchaser or recipient.

(5) If

(a) the purchaser or recipient of the legal services referred to in subsection (1) resides, ordinarily resides or carries on business outside British Columbia as well as in British Columbia, and

(b) part of the legal services relates to a jurisdiction other than British Columbia in the same manner as legal services relate to British Columbia within the meaning of subsection (4), the purchaser is exempt from tax under subsection (2) in relation to that portion of the purchase price which is for legal services that relate to the other jurisdiction.

(6) If neither the purchaser nor the recipient of legal services referred to in subsection (1) resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services shall be paid to Her Majesty in right of the Province by the purchaser at the rate of 6% of the purchase price if the legal services relate to one or more of the following:

(a) real property situated in British Columbia;

(b) tangible personal property, within the meaning of paragraph (a) of the definition of tangible personal property, that is ordinarily situated within British Columbia or that is to be delivered in British Columbia;

(c) a court or administrative proceeding in British Columbia;

(d) the incorporation of a corporation under the Company Act or the Society Act, or the registration of a corporation as an extraprovincial company under the Company Act or as an extraprovincial society under the Society Act.

(7) The tax under subsection (2) or (6) shall be paid before July 1, 1993.

(8) If there is more than one purchaser of legal services in relation to which subsection (2) or (6) applies, each purchaser is jointly and severally liable for the tax imposed by the applicable subsection.

(9) For the purposes of this section, a person shall be deemed to be carrying on business in British Columbia if an employee or other representative of the person carries on activities in British Columbia on that person's behalf for the purpose of promoting the sale or use of the person's products or services.

(10) If the person providing legal services does so as a partner in a partnership or as an employee of an individual, partnership or corporation, a reference in this Act to that person shall be deemed to be a reference to the individual, partnership or corporation.

(11) For the purposes of applying the other provisions of this Act in relation to a tax imposed by this section,

(a) the receiving of legal services for consideration is deemed to be a purchase, and

(b) the provision of legal services for consideration is deemed to be a sale of tangible personal property at a retail sale, except that sections 2 and 39 (1.2) do not apply to a purchase or sale of legal services.

(12) The commissioner may, in accordance with the regulations, refund from the consolidated revenue fund to a collector the portion of the amount sent by the collector to the commissioner in respect of taxes payable under this section that the purchaser has failed to pay to the collector.

(13) No tax is payable under this section in relation to legal services provided to an individual to the extent that the purchase price for the services is paid by the Legal Services Society, or by a funded agency within the meaning of the Legal Services Society Act, for the purposes of section 3 of that Act.

Retroactive tax on purchaser of legal services provided outside British Columbia

2.011 (1) This section applies to legal services provided outside British Columbia after May 31, 1992 for which the purchase price is paid by or billed or otherwise charged to the purchaser before February 26, 1993.

(2) A person who

(a) resides, ordinarily resides or carries on business in British Columbia, and

(b) is the purchaser of legal services referred to in subsection (1) that involve any of the matters referred to in section 2.01 (4) (a) to (j) shall pay a tax to Her Majesty in right of the Province in respect of the legal services, with the tax calculated as 6% of the purchase price of the legal services.

(3) If

(a) the person referred to in subsection (2) resides, ordinarily resides or carries on business outside British Columbia as well as in British Columbia, and

(b) part of the legal services referred to in subsection (1) relates to a jurisdiction other than British Columbia in the same manner as legal services relate to British Columbia within the meaning of section 2.01 (4), the person is exempt from tax under subsection (2) in relation to that portion of the purchase price which is for legal services that relate to the other jurisdiction.

(4) The tax under subsection (2) shall be paid before July 1, 1993.

(5) As an exception to subsection (4), if the person providing the legal services does not collect the tax under subsection (2), the purchaser shall pay the tax by delivering it to the commissioner by July 15, 1993.

(6) Section 2.01 (8) to (13) applies in relation to the tax under subsection (2).

4 Section 7 is amended

(a) in subsection (1) by striking out "Subject to sections 2 (3.1)" and substituting "Subject to subsection (3) and sections 2 (3.1)", and

(b) by adding the following subsection:

(3) A collector of tax imposed under section 2.01 or 2.011, whether the purchase price is payable in cash, on terms, by instalments or otherwise, shall use the collector's best efforts to collect the tax, and the tax collected shall be remitted to the commissioner by July 15, 1993 if it is collected before July 1, 1993 and by the 15th day of the month following the month in which the tax was collected if it is collected on or after July 1, 1993.

5 Section 33 (1.1) is amended by striking out "section 2, 2.1, 2.2, 2.4, 3, 5.1, 7, 9, 10, 17, 28 or 29," and substituting "section 2, 2.01, 2.011, 2.1, 2.2, 2.4, 3, 5.1, 7, 9, 10, 17, 28 or 29,".

6 Section 37 (2) is amended

(a) by striking out "may make regulations" and substituting "may make regulations doing one or more of the following:",

(b) in paragraph (c.1) by striking out "sections 2, 2.1 and 2.2," and substituting "sections 2, 2.01, 2.011, 2.1 and 2.2,",

(c) by adding the following paragraph:

(e.1) in relation to legal services,

(i) prescribing specified fees and charges in relation to legal services as excluded from the purchase price of the legal services,

(ii) prescribing specified disbursements in relation to legal services as disbursements to be included in the purchase price of the legal services,

(iii) prescribing exemptions from tax under section 2.01 or 2.011 in relation to specified legal services, subject to such terms and conditions as the Lieutenant Governor in Council specifies, and

(iv) prescribing exemptions from tax under section 2.01 or 2.011 in relation to legal services provided to one or more persons or classes of persons, subject to such terms and conditions as the Lieutenant Governor in Council specifies; , and

(d) by striking out "and" at the end of paragraph (j) and by adding the following paragraphs:

(l) in relation to a record

(i) that is in the possession of a lawyer and that is about to be inspected, audited or examined under this Act or about to be seized under a warrant in relation to an offence under this Act, and

(ii) for which the lawyer at that time makes a claim of solicitor client privilege for a named client of the lawyer in relation to the record, establishing procedures for allowing the record to be retained or seized and to be held in a secure manner until the claim of solicitor client privilege is waived by the client or until the claim is determined, or the record is otherwise dealt with, on application to the Supreme Court in accordance with the regulations;

(l.1) establishing a right to apply to the Supreme Court to resolve a claim of solicitor client privilege regarding a record retained or seized under paragraph (l) and establishing how the court is to deal with such an application.

Transitional: retroactive regulations

7 A regulation under the Social Service Tax Act in respect of legal services made before June 1, 1994 may be made retroactive to any date after May 31, 1992 and, if made retroactive, shall be deemed to have come into force on the date specified in the regulation.

8 The amendment made by section 11 of the Social Service Tax Amendment Act, 1992, S.B.C. 1992, c. 22, and section 16 of that Act are repealed.

Transitional: retroactive tax

9 (1) Subject to subsection (2), if the purchase price of legal services relates to legal services provided in part on or before May 31, 1992 and in part after that date, sections 2.01 and 2.011 of the Social Service Tax Act, as enacted by section 3 of this Act, apply only to that part of the purchase price which relates to the legal services provided after May 31, 1992.

(2) If a purchase price referred to in subsection (1) is payable under a contingent fee agreement, being an agreement under which the consideration for the providing of legal services is contingent, in whole or in part, on the successful disposition of the matter in respect of which the services are provided, the portion of the purchase price that represents the legal services provided after May 31, 1992 shall be as determined in accordance with the following formula, unless the commissioner is satisfied that the purchase price should be otherwise apportioned:

TP =

PP x T1


T2

where

TP = the portion of the purchase price deemed to be related to legal services provided after May 31, 1992;

PP = the purchase price of the legal services payable by way of contingent fee;

T1 = the number of days between May 31, 1992 and the date on which the tax under section 2.01 or 2.011 is imposed;

T2 = the number of days between the date on which the person providing the legal services began to provide those services and the date on which the tax under section 2.01 or 2.011 is imposed.

(3) A decision of the commissioner under subsection (2) may be appealed in accordance with sections 13 and 14 of the Social Service Tax Act.

(4) A person is exempt from tax that would otherwise be payable under section 2.01 or 2.011 of the Social Service Tax Act in respect of legal services provided under a written contract entered into before March 27, 1992 that set, at the time the contract was entered into, a specific total fee amount for those legal services.

(5) Money that is paid to Her Majesty as taxes under the Social Service Tax Act in respect of legal services for which the purchase price was paid by or billed or otherwise charged to the purchaser before February 26, 1993, with the intention of complying with section 2.01 of that Act as enacted by the Social Service Tax Amendment Act, 1992, shall be deemed to have been paid in respect of tax under section 2.01 or 2.011, as applicable, of the Social Service Tax Act as these sections were enacted by the Social Service Tax Amendment Act (No. 2), 1993.

Validation of regulations

10 (1) B.C. Regs. 221/92, 334/92 and 420/92, which purported to be enacted under section 37 (2) (e.1) of the Social Service Tax Act, as enacted by section 13 of the Social Service Tax Amendment Act, 1992, shall be deemed to be validly enacted regulations under section 37 (2) (e.1) of the Social Service Tax Act, as enacted by section 6 of this Act.

(2) This section is retroactive to the extent necessary to give force and effect to its intent.

 
Consequential Amendments

11 The amendments made by sections 14, 19 and 20 of the Taxation Statutes Amendment Act, 1992, S.B.C. 1992, c. 68, are repealed and the amendments made by sections 12, 13 and 14 of this Act are substituted for their effect.

12 Section 7 of the Social Service Tax Act, R.S.B.C. 1979, c. 388, is amended

(a) in subsection (1) by striking out "Subject to subsection (3) and sections 2 (3.1)" and substituting "Subject to subsections (1.1) and (3) and sections 2 (3.1)", and

(b) by adding the following subsection:

(1.1) The tax imposed by section 2.02, whether the purchase price is payable in cash, on terms, by instalments or otherwise, shall be collected at the time that the purchase price is paid or payable, whichever is earlier, and shall be remitted to the commissioner at the prescribed times and in the prescribed manner.

13 Section 33 (1.1) is amended by striking out "section 2, 2.01, 2.011, 2.1, 2.2, 2.4, 3, 5.1, 7, 9, 10, 17, 28 or 29" and substituting "section 2, 2.01, 2.011, 2.02, 2.1, 2.2, 2.4, 3, 5.1, 7, 9, 10, 17, 28 or 29".

14 Section 37 (2) (c.1) is amended by striking out "sections 2, 2.01, 2.011, 2.1 and 2.2," and substituting "sections 2, 2.01, 2.011, 2.02, 2.1 and 2.2,".

 
PART 2 -- NEW TAXES

15 Section 1 (1) of the Social Service Tax Act, R.S.B.C. 1979, c. 388, is amended by repealing the definition of "legal services" and substituting the following:

"legal services" means

(a) services that come within the meaning of the practice of law under the Legal Profession Act,

(b) services described in section 15 of the Notaries Act, and

(c) legally related services prescribed as legal services, but does not include services provided by a person to that person's employer in the course of employment; .

16 The following sections are added:

Taxes on the provision of legal services in British Columbia

2.012 (1) This section applies to legal services provided after March 31, 1993.

(2) If the purchaser or recipient of legal services provided in British Columbia resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services shall be paid to Her Majesty in right of the Province by the purchaser at the rate of 7% of the purchase price.

(3) If neither the purchaser nor the recipient of legal services provided in British Columbia resides, ordinarily resides or carries on business in British Columbia, a tax on the provision of the legal services shall be paid to Her Majesty in right of the Province by the purchaser at the rate of 7% of the purchase price if the legal services are in relation to one or more of the following:

(a) real property situated in British Columbia;

(b) tangible personal property, within the meaning of paragraph (a) of the definition of tangible personal property, that is ordinarily situated within British Columbia or that is to be delivered in British Columbia, or the contemplation of either of these;

(c) the ownership, possession or use in British Columbia of property other than that referred to in paragraphs (a) and (b), or the right to use such property in British Columbia, or the contemplation of any of these;

(d) a court or administrative proceeding in British Columbia or a possible such proceeding;

(e) the incorporation or contemplated incorporation of a corporation under the Company Act or the Society Act, or the registration or contemplated registration of a corporation as an extraprovincial company under the Company Act or as an extraprovincial society under the Society Act;

(f) any other matter that relates to British Columbia and is prescribed as being included for the purposes of this section.

(4) The tax under subsection (2) or (3) shall be paid by the date on which the purchase price of the legal services is paid or payable, whichever is earlier.

(5) The purchase price for legal services shall be deemed to be payable when it is billed or otherwise charged to the purchaser.

(6) As an exception to subsection (4), if the person providing the legal services is not obliged to and does not collect the tax under subsection (2) or (3), the purchaser shall pay the tax by delivering it to the commissioner by the 15th day of the month following the month in which the tax is otherwise required to be paid by subsection (4).

(7) If there is more than one purchaser of legal services in relation to which subsection (2) or (3) applies, each purchaser is jointly and severally liable for the tax imposed by the applicable subsection.

(8) For the purposes of this section, a person shall be deemed to be carrying on business in British Columbia if an employee or other representative of the person carries on activities in British Columbia on that person's behalf for the purpose of promoting the sale or use of the person's products or services.

(9) If the person providing legal services does so as a partner in a partnership or as an employee of an individual, partnership or corporation, a reference in this Act to that person shall be deemed to be a reference to the individual, partnership or corporation.

(10) For the purposes of applying the other provisions of this Act in relation to a tax imposed by this section,

(a) the receiving of legal services for consideration is deemed to be a purchase, and

(b) the provision of legal services for consideration is deemed to be a sale of tangible personal property at a retail sale, except that section 2 does not apply to a purchase of legal services.

(11) No tax is payable under this section in relation to legal services provided to an individual to the extent that the purchase price for the services is paid by the Legal Services Society, or by a funded agency within the meaning of the Legal Services Society Act, for the purposes of section 3 of that Act.

Tax on purchaser of legal services provided outside British Columbia

2.013 (1) This section applies to legal services provided after March 31, 1993.

(2) A person who

(a) resides, ordinarily resides or carries on business in British Columbia, and

(b) is the purchaser of legal services provided outside British Columbia that relate to British Columbia shall pay a tax to Her Majesty in right of the Province in respect of the legal services, with the tax calculated as 7% of the purchase price of the legal services.

(3) For the purposes of subsection (2), legal services relate to British Columbia if they relate to any of the following:

(a) a matter referred to in section 2.012 (3) (a) to (f);

(b) a matter that involves the interpretation or application of an enactment as defined in the Interpretation Act or a former or proposed such enactment;

(c) a matter that involves the interpretation or application of an enactment, or a former or proposed enactment, of a jurisdiction other than British Columbia, if the matter is in relation to

(i) a physical or legal presence in British Columbia or a contemplated such presence,

(ii) an activity in British Columbia or a contemplated such activity, or

(iii) a transaction in British Columbia or a contemplated such transaction;

(d) a matter that involves the analysis or application of any law other than that referred to in paragraphs (b) and (c), if the matter is in relation to

(i) a physical or legal presence in British Columbia or a contemplated such presence,

(ii) an activity in British Columbia or a contemplated such activity, or

(iii) a transaction in British Columbia or a contemplated such transaction;

(e) a contract or covenant, or a contemplated contract or covenant, that is in relation to

(i) a physical or legal presence in British Columbia or a contemplated such presence,

(ii) an activity in British Columbia or a contemplated such activity, or

(iii) a transaction in British Columbia or a contemplated such transaction.

(4) If

(a) the person referred to in subsection (2) resides, ordinarily resides or carries on business outside British Columbia as well as in British Columbia, and

(b) part of the legal services referred to in subsection (2) relates to a jurisdiction other than British Columbia in the same manner as legal services relate to British Columbia within the meaning of subsection (3), the person is exempt from tax under subsection (2) in relation to that portion of the purchase price which is for legal services that relate to the other jurisdiction.

(5) For the purposes of subsection (4), the person shall

(a) make a reasonable estimate, subject to the regulations, of that portion of the purchase price which relates to legal services referred to in subsection (4) (b),

(b) make and retain a record of the estimate and the basis on which it is made, and

(c) if the person who provided the legal services is required by this Act to collect the tax payable, provide a copy of the record to that person.

(6) Section 2.012 (4) to (11) applies in relation to the tax under subsection (2).

17 Section 7 is repealed and the following substituted:

Time when tax is to be collected and remitted

7 (1) Subject to subsections (2) and (3) and sections 2 (3.1) and (4) to (4.014) and 2.3, tax imposed under this Act in relation to a purchase price, whether the purchase price is payable in cash, on terms, by instalments or otherwise, shall be collected at the time of sale on the whole amount of the purchase price.

(2) A collector of tax imposed under section 2.01 or 2.011, whether the purchase price is payable in cash, on terms, by instalments or otherwise, shall use the collector's best efforts to collect the tax, and the tax collected shall be remitted to the commissioner by July 15, 1993 if it is collected before July 1, 1993 and by the 15th day of the month following the month in which the tax was collected if it is collected on or after July 1, 1993.

(3) A tax imposed under section 2.012, 2.013 or 2.02, whether the purchase price is payable in cash, on terms, by instalments or otherwise, shall be collected at the time the purchase price is paid or payable, whichever is earlier.

(4) In the case of legal services referred to in section 2.013 (4) (b), unless the person required by this Act to collect tax under that section has reason to believe that an estimate made under subsection (5) of that section in relation to the legal services is not reasonable, the obligation of that person to collect and remit the tax shall be considered to be met if the person collects and remits the amount of tax payable in accordance with the estimate.

(5) Subject to sections 2.1 (2) and 2.2 (2), tax imposed under this Act in relation to a lease price shall be collected at the time each payment of the lease price is paid.

(6) A levy under section 2.4, whether the purchase price is payable in cash, on terms, by instalments or otherwise, shall be collected at the time of sale.

(7) Amounts to be collected under this Act shall, when collected, be remitted to the commissioner at the prescribed times and in the prescribed manner.

18 Section 23 is amended

(a) by adding "or legal services" after "sell or lease tangible personal property", and

(b) by adding the following paragraph:

(c) legal services in relation to which tax is payable under section 2.012 or 2.013.

19 Section 27 (3) is repealed and the following substituted:

(3) Where it appears that an amount of tax should have been but was not collected, the commissioner shall impose a penalty, which forms part of the lien provided for in section 18, against the person who should have collected the tax, consisting of both

(a) the amount of tax that should have been collected, and

(b) interest at a rate prescribed by the Lieutenant Governor in Council.

20 Section 33 (1.1) is amended by striking out "section 2, 2.01, 2.011," and substituting "section 2, 2.01, 2.011, 2.012, 2.013,".

21 Section 37 (2) is amended

(a) in paragraph (c.1) by striking out "sections 2, 2.01, 2.011," and substituting "sections 2, 2.01, 2.011, 2.012, 2.013,", and

(b) by repealing paragraph (e.1) and substituting the following:

(e.1) in relation to legal services,

(i) prescribing specified fees and charges in relation to legal services as excluded from the purchase price of the legal services,

(ii) prescribing specified disbursements in relation to legal services as disbursements to be included in the purchase price of the legal services,

(iii) prescribing legally related services as legal services,

(iv) prescribing matters that relate to British Columbia as matters in relation to which tax is to be paid under section 2.012 (3),

(v) prescribing restrictions, conditions or requirements in relation to estimates under section 2.013 (5),

(vi) prescribing exemptions from tax under section 2.01, 2.011, 2.012 or 2.013 in relation to specified legal services, subject to such terms and conditions as the Lieutenant Governor in Council specifies, and

(vii) prescribing exemptions from tax under section 2.01, 2.011, 2.012 or 2.013 in relation to legal services provided to one or more persons or classes of persons, subject to such terms and conditions as the Lieutenant Governor in Council specifies; .

22 Section 39 (1.2) is repealed and the following substituted:

(1.2) The commissioner may, in accordance with the regulations, refund from the consolidated revenue fund to a collector the portion of the amount sent by the collector to the commissioner in respect of taxes payable under this Act that the person required to pay under this Act has failed to pay to the collector.

(1.21) Any money received by a collector in respect of a sale or lease in relation to which tax is payable under this Act, up to the full amount of the tax owing, shall be deemed to be payment of the tax owing by the purchaser or lessee under this Act.

Transitional: new tax

23 (1) Subject to subsection (2), if the purchase price of legal services relates to legal services provided in part on or before March 31, 1993 and in part after that date, sections 2.012 and 2.013 of the Social Service Tax Act, as enacted by section 16 of this Act, apply only to that part of the purchase price which relates to the legal services provided after March 31, 1993.

(2) If a purchase price referred to in subsection (1) is payable under a contingent fee agreement, being an agreement under which the consideration for the providing of legal services is contingent, in whole or in part, on the successful disposition of the matter in respect of which the services are provided, the portion of the purchase price that represents the legal services provided after March 31, 1993 shall be as determined in accordance with the following formula, unless the commissioner is satisfied that the purchase price should be otherwise apportioned:

TP =

PP x T1


T2

where

TP = the portion of the purchase price deemed to be related to legal services provided after March 31, 1993;

PP = the purchase price of the legal services payable by way of contingent fee;

T1 = the number of days between March 31, 1993 and the date on which the tax under section 2.012 or 2.013 is imposed;

T2 = the number of days between the date on which the person providing the legal services began to provide those services and the date on which the tax under section 2.012 or 2.013 is imposed.

(3) A decision of the commissioner under subsection (2) may be appealed in accordance with sections 13 and 14 of the Social Service Tax Act.

Commencement

24 (1) Sections 1 to 8 shall be deemed to have come into force on June 1, 1992 and are retroactive to the extent necessary to give them effect on and after that date, and the enactments repealed by section 8 cease to have effect at the beginning of the day on June 1, 1992.

(2) Sections 11 to 14 shall be deemed to have come into force on June 22, 1992 and are retroactive to the extent necessary to give them effect on and after that date.

(3) Sections 15 to 23 shall be deemed to have come into force on April 1, 1993 and are retroactive to the extent necessary to give them effect on and after that date.


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