1994 Legislative Session: 3rd 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 3rd day of May, 1994
Ian D. Izard, Law Clerk.


HONOURABLE ELIZABETH CULL
MINISTER OF FINANCE AND
CORPORATE RELATIONS

BILL 19 -- 1994

TAXATION STATUTES AMENDMENT ACT, 1994

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

 
Home Owner Grant Act

1 Sections 2 (2.2), 3 (3.2), 3.1 (3.2) and 3.2 (3.2) of the Home Owner Grant Act, S.B.C. 1980, c. 18, are amended by striking out "$400 000" wherever it appears and substituting "$450 000".

 
Hotel Room Tax Act

2 Section 6.1 of the Hotel Room Tax Act, R.S.B.C. 1979, c. 183, is repealed and the following substituted:

Deduction for bad debts

6.1 (1) The director may, in accordance with the regulations, refund from the consolidated revenue fund to an operator who sells accommodation a portion, determined in the prescribed manner, of the amount sent by the operator to the director in respect of taxes payable on that sale under this Act.

(2) The director may provide a refund under subsection (1) if

(a) the operator, in accordance with this Act, remits the tax required under this Act to be levied and collected for the sale referred to in subsection (1),

(b) the purchaser subsequently fails to pay to the operator the full amount of the consideration and tax payable on that sale, and

(c) the operator writes off as unrealizable or uncollectable the amount owing by the purchaser.

(3) An operator may, in the prescribed manner, deduct the amount of the refund payable to the operator under this section from the amount of taxes that the operator is required to remit under this Act.

(4) If an operator who has obtained a refund under subsection (1) or made a deduction under subsection (3) recovers some or all of the amount referred to in subsection (2) (c) with respect to which the refund was paid or the deduction was made, the operator shall add an amount, determined in the prescribed manner, to the tax to be paid or remitted by the operator under this Act with respect to the reporting period in which the recovery was made.

3 Section 11 (1) is amended

(a) in paragraph (a) by adding "6.1," after "2.1 (4),", and

(b) by striking out "60 days after receiving notice" and substituting "90 days after the date on the notice".

4 Section 12 (3) is amended by striking out "60 days" and substituting "90 days".

5 Section 16 (1.1) is amended by striking out "Where an operator" and substituting "Notwithstanding section 6.1, where an operator".

 
Income Tax Act

6 Section 8 (1) (b) (i) of the Income Tax Act, R.S.B.C. 1979, c. 190, is amended by striking out ", the Mineral Tax Act".

7 The following section is added:

1994-95 straddle provision

8.41 A taxpayer who has a taxation year that begins before January 1, 1995 and ends after December 31, 1994 and who pays tax under the Mineral Tax Act in respect of that taxation year shall, in calculating the tax payable for that taxation year, deduct only the proportion of the tax paid under the Mineral Tax Act in respect of that taxation year that the number of days in that taxation year that fall in 1995 bears to the total number of days in that taxation year.

 
Motor Fuel Tax Act

8 Section 6 (1) of the Motor Fuel Tax Act, S.B.C. 1985, c. 76, is repealed and the following substituted:

(1) A person who is a purchaser of jet fuel shall pay to the government, at the time of purchase, tax on the fuel at the lesser of

(a) the rate of 5 per litre, and

(b) the rate of tax that, under the regulations, applies to the person in the circumstances under which the obligation to pay arose.

9 Section 16 is repealed and the following substituted:

Refund or deduction for bad debts

16 (1) The director may, in accordance with the regulations, refund from the consolidated revenue fund to a collector, wholesale dealer or retail dealer who sells fuel a portion, determined in the prescribed manner, of the amount sent to the director in respect of taxes payable on that sale under this Act.

(2) The director may provide a refund under subsection (1) if

(a) the collector, wholesale dealer or retail dealer, in accordance with this Act, remits the tax required under this Act to be levied and collected for the sale referred to in subsection (1),

(b) the person purchasing the fuel subsequently fails to pay to the collector, wholesale dealer or retail dealer the full amount of the consideration and tax payable on that sale, and

(c) the collector, wholesale dealer or retail dealer writes off as unrealizable or uncollectable the amount owing by the person purchasing the fuel.

(3) A collector may, in the prescribed manner, deduct the amount of the refund payable to the collector under this section from the amount of taxes that the collector is required to remit under this Act.

(4) If a collector who has obtained a refund under subsection (1) or made a deduction under subsection (3) recovers some or all of the amount referred to in subsection (2) (c) with respect to which the refund was paid or the deduction was made, the collector shall add an amount, determined in the prescribed manner, to the tax to be paid or remitted by the collector under this Act with respect to the reporting period in which the recovery was made.

(5) If a wholesale dealer or retail dealer who is not a collector and who has obtained a refund under subsection (1) recovers some or all of the amount referred to in subsection (2) (c) with respect to which the refund was paid, the wholesale dealer or retail dealer shall, promptly after that recovery, pay to the government an amount determined in the prescribed manner.

10 Section 18 (1) is amended by striking out "$300" and substituting "$400".

11 Section 27 is amended by renumbering the section as section 27 (1) and by adding the following subsection:

(2) Notwithstanding section 16, any money received by a collector, wholesale dealer or retail dealer in respect of a sale of fuel, up to the full amount of the taxes owing, shall be deemed to be payment of the taxes owing by the purchaser under this Act.

12 Section 39 (2) is amended by striking out "60 days" and substituting "90 days".

13 Section 40 (3) is amended by striking out "60 days" and substituting "90 days".

14 Section 60 (1) is amended by adding the following paragraph:

(h.1) for the purposes of section 6 (1) (b), with power to set different rates of tax for different classes of persons, .

 
Social Service Tax Act

15 The Social Service Tax Act, R.S.B.C. 1979, c. 388, is amended

(a) by striking out "$30 000" wherever it appears and substituting "$32 000",

(b) by striking out "$31 000" wherever it appears and substituting "$33 000", and

(c) by striking out "$32 000" wherever it appears and substituting "$34 000".

16 Section 1 (1) is amended

(a) in the definition of "purchase price" by repealing paragraph (a) (i) and substituting the following:

(i) those of the following charges, whether or not those charges are shown separately on the invoice recording the sale or in the seller's books, that are incurred at or before the time that title to the tangible personal property covered by the sale passes under that sale:

(A) transportation and installation of the tangible personal property sold;

(B) interest, finance, service, customs and excise charges in relation to the tangible personal property sold; , and

(b) in paragraph (a) of the definition of "use" by striking out "at a retail sale".

17 Section 2 is amended

(a) in subsection (1.7) by striking out "subsections (1.9) and (9.2)" and substituting "subsection (1.9)",

(b) by repealing subsections (3.3) to (3.33), and

(c) by repealing subsections (9) to (9.3) and substituting the following:

(9) If tangible personal property, on which the purchaser has previously paid the applicable tax, is accepted at the time of sale by the seller on account of the price of the property sold, the purchaser shall pay a tax at the rate of

(a) 7% of the difference between the purchase price of the property sold and the credit allowed for the tangible personal property accepted on account of the purchase price in trade, or

(b) if the property sold is a passenger vehicle,

(i) 7% of that difference if the purchase price of the property sold is less than $32 000,

(ii) 8% of that difference if the purchase price of the property sold is $32 000 or more but less than $33 000,

(iii) 9% of that difference if the purchase price of the property sold is $33 000 or more but less than $34 000, or

(iv) 10% of that difference if the purchase price of the property sold is $34 000 or more.

18 Section 2.1 (1) is amended by striking out "to whom section 2 (3.3) does not apply".

19 Section 3 is amended by adding the following subsection:

(2.2) The commissioner may cancel or suspend a registration certificate granted under this section to a person who does not hold, or refuse to grant a registration certificate to a person who does not hold, the provincial and municipal registrations, licences and permits that that person is required by the regulations to hold in order to be eligible for a certificate.

20 Section 4 (1) is amended by adding the following paragraph:

(z.991) tangible personal property, other than aircraft or aircraft parts, purchased or leased by a commercial airline for consumption or use by its passengers, or by the airline in serving its passengers, during its interprovincial or international flights.

21 Section 13 (1) is amended

(a) in paragraph (d) by striking out "(3.33), (9.2),",

(b) in paragraph (d) by striking out "39 (1) or 39.1 (3)" and substituting "3 (2.2), 39, 39.1 (3) or 39.2", and

(c) by striking out "60 days after receiving notice" and substituting "90 days after the date on the notice".

22 Section 14 (3) is amended by striking out "60 days" and substituting "90 days".

23 Section 39 is amended

(a) by repealing subsections (1.2) and (1.3) to (1.5),

(b) in subsection (1.21) by striking out "Any money received" and substituting "Notwithstanding section 39.2, any money received", and

(c) by adding the following subsections:

(6) On application by a purchaser who purchased tangible personal property in the Province for a business use and who paid tax under section 2 (1) on that purchase, the commissioner shall refund to the purchaser out of the consolidated revenue fund the tax paid on the purchase if

(a) the tangible personal property

(i) is shipped out of the Province for use out of the Province, or

(ii) in the case of promotional distribution material, is shipped out of the Province in bulk to a recipient for the recipient's own use or consumption out of the Province, and

(b) no use whatsoever was made of the tangible personal property while it was in the Province other than to store it in and to ship it out of the Province.

(7) On application by a purchaser who purchased tangible personal property in the Province and who paid tax under section 2 (1) on that purchase, the commissioner shall refund to the purchaser out of the consolidated revenue fund the tax paid on the purchase if

(a) the purchaser is a manufacturer of portable buildings within the meaning of the regulations,

(b) the tangible personal property was processed, fabricated or manufactured into, attached to or incorporated into a portable building within the meaning of the regulations, and

(c) the portable building referred to in paragraph (b) is shipped by the manufacturer for delivery and use outside the Province.

24 The following section is added:

Deduction for bad debts

39.2 (1)The commissioner may, in accordance with the regulations, refund from the consolidated revenue fund to a collector who sells or leases tangible personal property a portion, determined in the prescribed manner, of the amount sent by the collector to the commissioner in respect of taxes payable on that transaction under this Act.

(2) The commissioner may provide a refund under subsection (1) if

(a) the collector, in accordance with this Act, remits the tax required under this Act to be levied and collected for the transaction referred to in subsection (1),

(b) the purchaser or lessee subsequently fails to pay to the collector the full amount of the consideration and tax payable on that transaction, and

(c) the collector writes off as unrealizable or uncollectable the amount owing by the purchaser or lessee.

(3) A collector may, in the prescribed manner, deduct the amount of the refund payable to the collector under this section from the amount of taxes that the collector is required to remit under this Act.

(4) If a collector who has obtained a refund under subsection (1) or made a deduction under subsection (3) recovers some or all of the amount referred to in subsection (2) (c) with respect to which the refund was paid or the deduction was made, the collector shall add an amount, determined in the prescribed manner, to the tax to be paid or remitted by the collector under this Act with respect to the reporting period in which the recovery was made.

 
Tobacco Tax Act

25 Section 2 of the Tobacco Tax Act, R.S.B.C. 1979, c. 404, is amended by adding the following subsection:

(8) Notwithstanding section 8.01, any money received by a dealer in respect of a sale of tobacco, up to the full amount of the taxes owing, shall be deemed to be payment of the taxes owing by the consumer under this Act.

26 The following section is added:

Deduction for bad debts

8.01 (1) The director may, in accordance with the regulations, refund from the consolidated revenue fund to a dealer who sells tobacco a portion, determined in the prescribed manner, of the amount sent to the director in respect of taxes payable on that sale under this Act.

(2) The director may provide a refund under subsection (1) if

(a) the dealer, in accordance with this Act, remits the tax required under this Act to be levied and collected for the sale referred to in subsection (1),

(b) the purchaser subsequently fails to pay to the dealer the full amount of the consideration and tax payable on that sale, and

(c) the dealer writes off as unrealizable or uncollectable the amount owing by the purchaser.

(3) A collector may, in the prescribed manner, deduct the amount of the refund payable to the collector under this section from the amount of taxes that the collector is required to remit under this Act.

(4) If a collector who has obtained a refund under subsection (1) or made a deduction under subsection (3) recovers some or all of the amount referred to in subsection (2) (c) with respect to which the refund was paid or the deduction was made, the collector shall add an amount, determined in the prescribed manner, to the tax to be paid or remitted by the collector under this Act with respect to the reporting period in which the recovery was made.

(5) If a dealer who is not a collector and who has obtained a refund under subsection (1) recovers some or all of the amount referred to in subsection (2) (c) with respect to which the refund was paid, the dealer shall, promptly after that recovery, pay to the government an amount determined in the prescribed manner.

27 Section 10 (1) is amended

(a) in paragraph (d) by adding "8.01," after "5.1 (3),", and

(b) by striking out "60 days after receipt of notice" and substituting "90 days after the date on the notice".

28 Section 11 (3) is amended by striking out "60 days" and substituting "90 days".

Transitional -- regulation

29 Regulations that may be made under the Hotel Room 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 regulation.

Transitional -- regulation

30 Regulations that may be made under the Motor Fuel 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 regulation.

Transitional -- regulation

31 Regulations that may be made under the Social Service 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 regulation.

Transitional -- regulation

32 Regulations that may be made under the Tobacco 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 regulation.

Commencement

33 (1) Section 1 is deemed to have come into force on January 1, 1994 and is retroactive to the extent necessary to give it effect on and after that date.

(2) Sections 6 and 7 come into force on January 1, 1995.

(3) Section 10 is deemed to have come into force on August 1, 1993 and is retroactive to the extent necessary to give it effect on and after that date.

(4) Sections 2 to 5, 8, 9 and 11 to 32 are deemed to have come into force on March 23, 1994 and are retroactive to the extent necessary to give them effect on and after that date.


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