1994 Legislative Session: 3rd Session, 35th Parliament
FIRST READING
The following electronic version is for informational purposes only.
The printed version remains the official version.
HONOURABLE ELIZABETH CULL
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 1 (1) of the Mineral Tax Act, S.B.C. 1989, c. 55, is amended
(a) by repealing the definition of "fiscal year",
(b) by adding the following definitions:
"fiscal year of the mine" means, in respect of a mine, the period, not exceeding 12 months, for which the accounts of the mine have been or are ordinarily made up but, in the absence of a chosen period, the fiscal year of the mine shall be the calendar year;
"fiscal year of the operator" means, in respect of an operator, the period, not exceeding 12 months, for which the accounts of the operator have been or are ordinarily made up but, in the absence of a chosen period, the fiscal year of the operator shall be the calendar year; , and
(c) in the definition of "investment allowance rate" by striking out "for each month of the fiscal year of the operator, multiplied by 1.25 and by the number of days in the current fiscal year" and substituting "for each month of the fiscal year of the mine or the fiscal year of the operator, as the context requires, multiplied by 1.25 and by the number of days in the applicable fiscal year".
2 Section 2 is amended
(a) in subsection (1) by striking out "shall, for each fiscal year, pay a tax for each mine, other than a coal mine, of which he is an operator," and substituting "shall, for each mine of which that person is an operator, pay a tax in respect of each fiscal year of the mine",
(b) in subsection (1) (a) and (b) by striking out "fiscal year" wherever it appears and substituting "fiscal year of the mine",
(c) by repealing subsection (1) (a) (iii) and substituting the following:
(iii) the amount determined under paragraph (b); , and
(d) in subsection (2) (a) by striking out "preceding year" and substituting "preceding fiscal year of the mine".
3 Section 3 is amended
(a) by striking out ", other than a coal mine,",
(b) except in paragraph (c) by adding "of the mine" after "fiscal year" wherever it appears, and
(c) by repealing paragraph (c) and substituting the following:
(c) the amount calculated under section 2 (1) (b) for the fiscal year of the mine, provided that the tax payable under section 2 for the mine in respect of that fiscal year of the mine is paid .
4 The following section is added:
3.1 (1)The tax payable for a coal mine in respect of the fiscal year of the mine in which March 23, 1994 falls shall be determined in accordance with section 2 (1) and, for that purpose,
(a) the reference in section 2 (1) (a) to 13% shall be read as a reference to the percentage obtained by adding
(i) the proportion of 17.5% that the number of days in the fiscal year of the mine to and including March 22, 1994 bears to 365, and
(ii) the proportion of 13% that the number of days in the fiscal year of the mine after March 22, 1994 bears to 365, and
(b) the reference in section 2 (1) (b) to 2% shall be read as a reference to the percentage obtained by adding
(i) the proportion of 7.5% that the number of days in the fiscal year of the mine to and including March 22, 1994 bears to 365, and
(ii) the proportion of 2% that the number of days in the fiscal year of the mine after March 22, 1994 bears to 365.
(2) The balance in the cumulative tax credit account of an operator of a mine shall be determined in accordance with section 3 and, for that purpose, a reference in section 3 to 13% shall be read as a reference to the percentage determined under subsection (1) (a).
5 Sections 4 and 5 are repealed.
6 Section 6 (2) is amended
(a) by repealing paragraphs (a) and (b) and substituting the following:
(a) the operator of a mine is actively engaged in reclamation during the fiscal year of the mine, and
(b) at the end of the current fiscal year of the mine, there are no funds, relating to reclamation of the mine that has been performed before the end of the current fiscal year of the mine, that have not been received or are not receivable from the reclamation fund, and
(b) in paragraphs (c) and (d) by adding "of the mine" after "fiscal year".
7 Section 9 (1) and (2) is amended by adding "of the mine" after "fiscal year" wherever it appears.
8 Section 10 is amended
(a) by adding "of the mine" after "fiscal year" wherever it appears, and
(b) in subsection (1) by adding the following paragraph:
(b.1) the operator's proportionate share of the prescribed allowance for new mines, .
9 The following section is added:
10.1 (1) The exploration account of an operator at the end of a fiscal year of the operator means the amount, if any, by which the aggregate of
(a) the amount of the exploration account of the operator at the end of the immediately preceding fiscal year of the operator,
(b) the amount of exploration costs as defined by regulation incurred by the operator in the fiscal year of the operator, and
(c) the amount of exploration investment allowance for the fiscal year of the operator determined under subsection (2) exceeds the aggregate of
(d) grants, subsidies and other forms of assistance that may reasonably be regarded as being with respect to exploration costs as that term is defined in the regulations and that, in that fiscal year of the operator,
(i) the operator received,
(ii) the operator became entitled to receive, or
(iii) the operator expected or ought to have expected would be received after that fiscal year,
(e) actual or deemed proceeds of dispositions of assets in that fiscal year of the operator, the costs of which assets have been included in the exploration account in any fiscal year of the operator, and
(f) amounts allocated by the operator to a mine in that fiscal year of the operator in the amount and manner prescribed.
(2) The exploration investment allowance shall be the investment allowance rate for the fiscal year of the operator multiplied by the average of
(a) the amount of the exploration account of the operator at the end of the immediately preceding fiscal year of the operator, and
(b) the amount, if any, by which the aggregate of the amounts determined under subsection (1) (a) and (b) exceeds the aggregate of amounts determined under subsection (1) (d) to (f).
10 Section 11 is amended
(a) in subsection (1) by striking out "For the first fiscal year to which this Act applies, an operator may include in the cumulative expenditure account for a mine" and substituting "An operator of a mine may, for the first fiscal year of the mine to which this Act applies, include in the cumulative expenditure account for the mine",
(b) in subsections (1) (a) and (3) by adding "of the mine" after "fiscal year" wherever it appears, and
(c) in subsection (3) by adding "of a mine" after "an operator".
11 Section 12 is amended
(a) by repealing subsection (1) and substituting the following:
(1) Each operator of a mine shall, on or before the last day of the sixth month following the end of the fiscal year of the mine, deliver to the commissioner for that fiscal year of the mine, a return for the mine in the prescribed form and containing the prescribed information. ,
(b) in subsections (2) and (6) by adding "of the mine" after "fiscal year" wherever it appears, and
(c) by adding the following subsection:
(7) Each operator shall, on or before the last day of the sixth month following the end of each fiscal year of the operator, deliver to the commissioner for that fiscal year of the operator, a return for the operator's exploration account in the prescribed form and containing the prescribed information.
12 Section 13 is repealed and the following substituted:
13 The operator of a mine shall, on or before the last day of the sixth month following the end of the fiscal year of the mine, pay to the commissioner the aggregate amount of tax and interest payable by the operator for the mine for that fiscal year of the mine, less the amount of any instalments paid by the operator under section 14 for the mine for that fiscal year of the mine.
13 Section 14 is amended
(a) by repealing subsection (1) and substituting the following:
(1) Each operator shall, for each mine of which that person is an operator, pay an instalment, on account of tax payable under this Act, for each month or part month of the current fiscal year of the mine, equal to the annual tax payable by the operator for the current fiscal year of the mine multiplied by the number of days in the particular month or part month and divided by the number of days in that fiscal year of the mine. , and
(b) in subsection (2) by adding "of the mine" after "fiscal year".
14 Section 17 is amended by striking out "12" and substituting "12 (1)".
15 Section 21 is amended
(a) in subsection (1) by striking out "an operator's return for a fiscal year," and substituting "the return filed by an operator of a mine for a fiscal year of the mine,",
(b) in subsection (4) by striking out "for a fiscal year",
(c) in subsection (4) (b) by adding "of the mine or the fiscal year of the operator" after "fiscal year",
(d) by repealing subsection (5) and substituting the following:
(5) The commissioner shall, on assessment or reassessment of an operator in respect of a return filed for a particular mine, issue a notice of assessment or reassessment to the operator, as the case may be, containing the following information:
(a) the name and address of the operator to whom the notice is directed;
(b) information sufficient to enable the mine to which the notice relates to be identified;
(c) the fiscal year of the mine to which the notice applies;
(d) the date of issue of the notice;
(e) the total amount of the taxes payable by the operator for the mine in respect of the particular fiscal year of the mine;
(f) the amount of interest and penalties payable by the operator in respect of the fiscal year of the mine;
(g) the total amount of instalments and taxes paid in respect of the fiscal year of the mine, including any interest and penalties paid;
(h) the total amount of the reclamation tax credit for the fiscal year of the mine;
(i) the total outstanding balance to be paid by the operator or refunded to the operator in respect of the fiscal year of the mine.
16 Section 22 (2) (a) is amended by adding "of the mine or the fiscal year of the operator" after "fiscal year".
17 Section 28 is amended
(a) by striking out "assets of the operator" and substituting "assets of the operator of a mine", and
(b) by striking out "fiscal year of the operator" and substituting "fiscal year of the mine".
18 Regulations that may be made under the Mineral Tax Act as a result of the enactment of this Act may, if made before March 23, 1995, be made retroactive to March 23, 1994 and a regulation made retroactive is deemed to have come into force on the date specified in the regulations.
19 This Act is deemed to have come into force on March 23, 1994 and is retroactive to the extent necessary to give it effect on and after that date.
SECTION 1: adds the concept of "fiscal year of the operator" to the Mineral Tax Act for the purpose of the operator's exploration account referred to in section 10.1 of that Act as enacted by this Bill.
SECTION 2:
(a) reduces the rate of tax payable in respect of coal mines to match the rate of tax payable in respect of other mines;
(b) and (d) are consequential to the amendments to section 1 of the Act;
(c) clarifies that the amounts referred to in section 2 (1) (a) (iii) and (b) of the Mineral Tax Act as amended by this Bill, are identical.
SECTION 3:
(a) provides that the calculation of the cumulative tax credit account for coal mines shall be the same as the calculation used for other mines;
(b) is consequential to the amendments to section 1 of the Act;
(c) specifies that the amount to be added to the cumulative tax credit account in respect of net current proceeds taxes is the amount calculated under section 2 (1) (b) of the Mineral Tax Act as amended by this Bill to the extent that it has been paid.
SECTION 4: provides the calculation of tax payable for a coal mine in respect of a taxation year beginning before March 23, 1994 and ending after March 22, 1994.
SECTION 5: is consequential to the amendments effected under sections 2 (a) and 3 (a) of this Bill.
SECTIONS 6 and 7: are consequential to the amendments to section 1(1) of the Act.
SECTION 8:
(a) is consequential to the amendments to section 1 of the Act;
(b) permits the allowance for new mines and mine expansions to be added to the cumulative expenditure account of a mine and permits the Lieutenant Governor in Council to prescribe how that new mine allowance is to be determined and calculated.
SECTION 9: creates and defines an exploration account for operators.
SECTION 10: is consequential to the amendments to section 1 of the Act.
SECTION 11:
(a) and (b) are consequential to the amendments to section 1 of the Act;
(c) requires an operator to deliver to the commissioner a return for the operator's exploration account.
SECTIONS 12 and 13:are consequential to the amendments to section 1 of the Act.
SECTION 14: clarifies that the penalty imposed under section 17 of the Mineral Tax Act for the failure to file a return relates only to a return referred to in section 12 (1) of that Act.
SECTIONS 15 to 17: are consequential to the amendments to section 1 of the Act.
SECTION 18: is self explanatory.
[ Return to: Legislative Assembly Home Page ]
Copyright © 2002: Queen's Printer, Victoria, British Columbia, Canada