2000 Legislative Session: 4th Session, 36th Parliament
FIRST READING
The following electronic version is for informational
purposes only.
The printed version remains the official version.
HONOURABLE PAUL RAMSEY
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 follow:
Corporation Capital Tax Act
1 Section 2 (7) (b) of the Corporation Capital Tax Act, R.S.B.C. 1996, c. 73, is repealed and the following substituted:
(b) that is nonresident .
2 Section 5 is amended by adding the following subsection:
(5) Subsections (2) and (3) do not apply to a corporation that is eligible for a deduction under section 12 (1).
3 Section 11 (1) (c) is repealed and the following substituted:
(c) the carrying value of the corporation's investment in any partnership referred to in paragraph (b) if, for that taxation year, the corporation included within "total assets" for the purposes of this section, the proportionate share, as computed under section 16 (2), of the aggregate of the carrying values of the partnership assets on the partnership's balance sheet.
4 Section 19 (13) is repealed and the following substituted:
(13) Interest chargeable or creditable under this Act must be calculated at the rate and in the manner prescribed, and different rates of interest may be prescribed for different purposes.
Financial Administration Act
5 Section 17 of the Financial Administration Act, R.S.B.C. 1996, c. 138, is amended by adding the following subsection:
(3) Without limiting section 4, the Treasury Board may make regulations and issue directives establishing policies and practices respecting the making of allowances for doubtful accounts.
6 Section 21 is amended
(a) in subsection (2) by adding "17, 18," after "section 14 (2), 16,", and
(b) by adding the following subsection:
(4) An authorization or direction under any Act to make a payment out of the consolidated revenue fund is deemed to include the authority to make an expenditure.
Hotel Room Tax Act
7 The Hotel Room Tax Act, R.S.B.C. 1996, c. 207, is amended by adding the following section:
8.1 If a person collects an amount as if it were a tax imposed under this Act, the person must remit the amount collected to the director at the same time and in the same manner as tax collected under this Act.
8 The following section is added:
16.1 (1) For any purpose related to the administration or enforcement of this Act or the regulations, the director or a person authorized by the director may, by demand notice, require from any person
(a) a return,
(b) any information or additional information,
(c) the production of any records, or
(d) a written statement.
(2) A demand notice under subsection (1)
(a) must be delivered to the person by personal service, registered mail, electronic mail or fax,
(b) must specify a reasonable time by which the person must comply with the demand notice, and
(c) in relation to a requirement under subsection (1) (d), may require the written statement to be made by way of affidavit or statutory declaration.
(3) A person to whom a demand notice is delivered under this section must comply with the notice within the time specified in the notice.
(4) Under this Act, an affidavit by the director, or the authorized person referred to in subsection (1), in which are stated the facts necessary to establish
(a) compliance by the director or authorized person with this section, or
(b) default by a person on whom a demand was made under this section
must be admitted as evidence in any court and is proof, in the absence of evidence to the contrary, of the facts stated.
9 Section 17 (3.1) and (7) is amended by striking out "interest at the rate prescribed by the Lieutenant Governor in Council" and substituting "interest calculated at the rate and in the manner prescribed".
10 Section 23 (1) is amended by adding "or if a person collects an amount as if it were a tax under this Act," after "If a person collects an amount of tax under this Act,".
11 Section 25 is repealed and the following substituted:
25 (1) Before taking proceedings for the recovery of an amount owing under this Act, the director must give to the person who owes the amount notice of the director's intention to enforce payment.
(2) Failure to give notice under subsection (1) does not affect the validity of proceedings taken for the recovery of an amount owing under this Act.
12 Section 32 (2) is amended by striking out "interest at a rate prescribed by the Lieutenant Governor in Council" and substituting "interest calculated at the rate and in the manner prescribed".
13 Section 36 (1) is amended by adding the following paragraphs:
(c.1) refuses to cooperate with an inspection, audit or examination, including producing records or books of account, or hinders or molests or interferes with an inspection, audit or examination, or prevents or attempts to prevent a person from carrying out an inspection, audit or examination under this Act,
(c.2) willfully, in any manner, fails to comply with this Act or the regulations, .
14 Section 38 (1) is repealed.
15 Section 43 is amended
(a) in subsection (2) by adding the following paragraph:
(k) prescribing interest rates and the manner of calculating interest for the purposes of this Act. , and
(b) by repealing subsection (4).
Income Tax Act
16 Section 1 of the Income Tax Act, R.S.B.C. 1996, c. 215, is amended
(a) in subsection (1) in paragraph (b) of the definition of "deputy head" by striking out "Deputy Minister of National Revenue for Taxation;" and substituting "Commissioner of Customs and Revenue;",
(b) in subsection (1) in the definition of "minister" by striking out "Minister of National Revenue for Canada," and substituting "Minister of National Revenue,", and
(c) in the table following subsection (7) by striking out "Deputy Minister of National Revenue for Taxation" and substituting "Commissioner of Customs and Revenue" and by striking out "Department of National Revenue" and substituting "Canada Customs and Revenue Agency".
17 Section 16 is amended by striking out "5.5%" wherever it appears and substituting "4.75%".
18 Section 25.1 (1) is amended
(a) in the definition of "excluded expense" by adding the following paragraph:
(f.1) personal or living expenses of the taxpayer, other than travel expenses incurred by the taxpayer while away from home in the course of carrying on the activity described in paragraph (c) of the definition of "qualified mining exploration expense", ,
(b) by adding the following definition:
"personal or living expenses" means personal or living expenses within the meaning of section 248 (1) of the federal Act; ,
(c) by repealing the definition of "qualified mining exploration expense" and substituting the following:
"qualified mining exploration expense" of a taxpayer means any expense, other than an excluded expense, that is incurred
(a) by the taxpayer,
(b) after July 31, 1998 and before August 1, 2003,
(c) for the purpose of determining the existence, location, extent or quality of a mineral resource in British Columbia, including any expense incurred in the course of
(i) prospecting,
(ii) carrying out geological, geophysical or geochemical surveys,
(iii) drilling by rotary, diamond, percussion or other methods, or
(iv) trenching, digging test pits and preliminary sampling, and
(d) in respect of goods or services acquired by the taxpayer that are all or substantially all provided in British Columbia,
to the extent that the expense is reasonable in the circumstances and is not an expense in relation to which a tax credit under this section has been claimed by another person. , and
(d) by adding the following subsection:
(9) Without limiting any provision of this or any other enactment, the Provincial minister and the minister responsible for the administration of the Ministry of Energy, Mines and Petroleum Resources Act may
(a) collect any information that is relevant to an application for a tax credit being claimed or already claimed under this section, and
(b) share with each other, in accordance with an information-sharing agreement under section 65, any information that is relevant to an application for a tax credit being claimed or already claimed under this section.
19 Section 64 (3) is amended by striking out "agreement" and substituting "agreement or arrangement".
20 Section 65 (1) is amended by striking out "includes a data-matching agreement," and substituting "includes an arrangement and a data-matching agreement or arrangement,".
21 Section 68 (6) is amended by striking out "Deputy Minister of the Department of National Revenue for Taxation" and substituting "Commissioner of Customs and Revenue" and by striking out "Department of National Revenue" and substituting "Canada Customs and Revenue Agency".
22 Section 69 (4) is amended by striking out "Deputy Minister of National Revenue for Taxation of Canada" and substituting "Commissioner of Customs and Revenue" and by striking out "department" and substituting "agency".
23 Section 79 (1) is amended
(a) in paragraph (a) (ii) of the definition of "BC labour expenditure" by striking out "by the corporation" and substituting "in respect of the production",
(b) in paragraph (b) (ii) of the definition of "BC labour expenditure" by striking out "to the corporation" and substituting "in respect of the production", and
(c) in the definition of "TPC" in paragraph (b) of the definition of "qualified BC labour expenditure" by striking out "incurred by the corporation in producing the production" and substituting "paid or payable, in producing the production, by one or more of the owners of the copyright in the production".
24 The following sections are added:
102.1 (1) This section applies to a qualifying corporation if
(a) the corporation acquired a particular property and the cost of the property was a BC qualified expenditure of the corporation in a taxation year,
(b) the cost of the property is an amount that was included in computing the corporation's tax credit under this Part, and
(c) after March 31, 2000 and within 10 taxation years of the acquisition described in paragraph (a), the corporation converts to commercial use, or disposes of without having previously converted to commercial use, that property or another property that incorporates that property.
(2) The qualifying corporation must add to its tax otherwise payable for the taxation year in which the conversion or disposition described in subsection (1) (c) occurs the lesser of the following:
(a) the amount included in the corporation's tax credit under this Part in respect of the property;
(b) an amount equal to
(i) if that property or the property that incorporates that property is disposed of to a person who deals at arm's length with the corporation, the proceeds of disposition of that property multiplied by the percentage applied in computing the tax credit referred to in subsection (1) (b), or
(ii) in any other case, the fair market value at the time of conversion or disposition of that property or the property that incorporates that property multiplied by the percentage applied in computing the tax credit referred to in subsection (1) (b).
(3) The cost of the property under subsection (1) (a) and (b)
(a) must not exceed the amount paid by the corporation to acquire that property from a transferor, and
(b) must not include any amounts paid by the corporation to maintain, modify or transform that property.
102.2 Sections 102.1 and 102.3 do not apply to a qualifying corporation (in this section, the "transferor") that disposes of a property to a qualifying corporation (in this section and section 102.3, the "purchaser") that does not deal at arm's length with the transferor, if the purchaser acquired the property in circumstances where the cost of the property to the purchaser would have been an expenditure of the purchaser described in section 37 (8) (a) (ii) (A) (III) or (B) (III) of the federal Act but for section 2902 (b) (iii) of the federal regulations.
102.3 (1) This section applies to a purchaser if, at any particular time in a taxation year and after March 31, 2000, the purchaser converts to commercial use, or disposes of without having previously converted to commercial use, a property
(a) that
(i) was acquired by the purchaser in circumstances described in section 102.2, or
(ii) incorporates other property acquired by the purchaser in those circumstances, and
(b) that was first acquired, or that incorporates other property that was first acquired, by a corporation (in this section, the "original user") in the original user's taxation year that includes the particular time, assuming that the original user had such a taxation year, or in any of the original user's 10 preceding taxation years.
(2) The purchaser must add to its tax otherwise payable for the taxation year the lesser of the following:
(a) the amount included in the original user's tax credit under this Part in respect of the property;
(b) an amount equal to
(i) if that property or the property that incorporates that property is disposed of to a person who deals at arm's length with the corporation, the proceeds of disposition of that property multiplied by the percentage applied by the original user in computing its tax credit under this Part, or
(ii) in any other case, the fair market value at the time of conversion or disposition of that property or the property that incorporates that property multiplied by the percentage applied by the original user in computing its tax credit under this Part.
Insurance Premium Tax Act
25 Section 7 (5) of the Insurance Premium Tax Act, R.S.B.C. 1996, c. 232, is repealed and the following substituted:
(5) Interest is payable under subsections (3) and (4) and must be calculated at the rate and in the manner prescribed by the Lieutenant Governor in Council.
26 Section 11 (2) is amended by striking out "at the rate" and substituting "calculated at the rate and in the manner".
27 Section 15 (1) is amended by adding "and pay interest on the amount of the refund, calculated at the rate and in the manner prescribed," after "the amount overpaid to the taxpayer".
Liquor Control and Licensing Act
28 Sections 82 and 83 of the Liquor Control and Licensing Act, R.S.B.C. 1996, c. 267, are repealed.
Logging Tax Act
29 Section 15 (6) of the Logging Tax Act, R.S.B.C. 1996, c. 277, is amended by striking out "at a rate" and substituting "at the rate and calculated in the manner".
30 Section 21 (1) is amended by adding "and pay interest on the amount of the refund, at the rate and calculated in the manner prescribed," after "the amount overpaid to the taxpayer".
31 Section 39 (1.1) is amended by striking out "set out in subsection (1) of this section" and substituting "set out in subsection (2) of this section".
Motor Fuel Tax Act
32 Section 1 of the Motor Fuel Tax Act, R.S.B.C. 1996, c. 317, is amended
(a) by adding the following definition:
"alternative motor fuel" means alternative motor fuel as defined in the regulations; ,
(b) in the definition of "gasoline" by adding "alternative motor fuel," after "alcohol based fuel,",
(c) by repealing the definitions of "marine bunker fuel" and "marine diesel fuel" and substituting the following:
"marine bunker fuel" means
(a) bunker oil, or
(b) a combination of fuels including bunker oil
that is used in a ship as fuel for an internal combustion engine, but does not include marine diesel fuel;
"marine diesel fuel" means
(a) diesel fuel, or
(b) a combination of fuels including diesel fuel
that is used in a ship as fuel for an internal combustion engine, and has a viscosity of
(c) lower than 10 centistokes when measured at a temperature of 50°C, or
(d) 10 centistokes or higher when measured at a temperature of 50°C, but is sold as diesel fuel; , and
(d) in the definition of "motive fuel" by adding "alternative motor fuel or" after "does not include".
33 Section 3.1 is amended
(a) in subsection (1) by striking out "Subject to subsection (2), alcohol" and substituting "Alcohol", and
(b) by repealing subsection (2).
34 Section 4 (1) (a) and (b) is repealed and the following substituted:
(a) outside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the gasoline at the rate of 6.50¢ per litre,
(b) inside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the gasoline at the rate of 10.50¢ per litre less the applicable rate of tax payable at the time of purchase under paragraph (c), and .
35 Section 9 is repealed and the following substituted:
9 (1) In this section, "marketable gas" means gas that is available for sale for direct consumption as a domestic, commercial or industrial fuel or as an industrial raw material, or is delivered to a storage facility, whether it occurs naturally or results from processing natural gas.
(2) A person who
(a) is a purchaser of natural gas, or
(b) uses natural gas on which tax is not otherwise payable under this section
must pay to the government
(c) at the time of purchase, or
(d) in the case of a person described in paragraph (b), on or before the 15th day of the month following the month in which the natural gas is used,
a tax as established under subsections (3) and (4).
(3) Natural gas used or purchased for use in a stationary internal combustion engine that compresses natural gas is subject to tax as follows:
(a) if the compressor is located outside the processing plant and is used to move marketable gas from the gas processing plant to market or in or is out of storage facilities, the tax is an amount equal to 1.9¢ on every 810.32 litres, at standard reference conditions, of natural gas used;
(b) if the compressor is located within a gas processing plant and is used to compress marketable gas, the tax is an amount equal to 1.1¢ on every 810.32 litres, at standard reference conditions, of natural gas used;
(c) if the compressor is located at a well head, along the pipeline between the well head and a processing plant, or within a gas processing plant and is used to compress gas that is not marketable gas, the natural gas used to operate the compressor is
(i) effective April 1, 2000, subject to tax in an amount equal to 1.1¢ on every 810.32 litres, at standard reference conditions, on natural gas used,
(ii) effective April 1, 2001, subject to tax in an amount equal to 0.55¢ on every 810.32 litres, at standard reference conditions, of natural gas used, and
(iii) effective April 1, 2002, exempt from tax;
(d) effective April 1, 2000, natural gas is exempt from tax when used or purchased for use in compressors that are
(i) used to transmit waste gas, composed primarily of hydrogen sulphide and carbon dioxide, within a gas processing plant or from a gas processing plant to a well, or
(ii) are located at a well head and used to inject waste gas into a depleted well for permanent disposal.
(4) Natural gas used or purchased for use in a stationary internal combustion engine that pumps oil is
(a) subject to a tax equal to 1.1¢ on every 810.32 litres, at standard reference conditions, on natural gas used in pumps located at the well head or within the oil processing plant, and
(b) subject to a tax equal to 1.9¢ on every 810.32 litres, at standard reference conditions, on natural gas used in pumps located along pipelines that move the oil from the well head to the oil processing plant, from the oil processing plant to market, or in or out of storage facilities.
(5) Natural gas that is not purchased but is used in a stationary internal combustion engine other than as described in subsections (3) and (4) is subject to a tax equal to 1.1¢ on every 810.32 litres, at standard reference conditions, of natural gas.
(6) Natural gas that is purchased for use in a stationary internal combustion engine other than as described in subsections (3) and (4) is subject to tax at 7% of the purchase price of the natural gas.
36 Section 10 (1) (a) and (b) is repealed and the following substituted:
(a) outside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the fuel at the rate of 7.0¢ per litre,
(b) inside the Greater Vancouver transportation service region must pay to the government, at the time of purchase, tax on the fuel at the rate of 11.0¢ per litre less the applicable rate of tax payable at the time of purchase under paragraph (c), and .
37 The following section is added:
10.1 (1) A purchaser of an alternative motor fuel must pay to the government, at the time of purchase, tax on the fuel at the rate set out in the regulations.
(2) A licensed carrier who uses in British Columbia alternative motor fuel on which tax is not otherwise payable under subsection (1) must pay to the government, on or before the last day of the calendar month following the end of the calendar quarter in which the fuel was used, tax on that fuel at the rate established under the regulations.
(3) A person who uses in British Columbia alternative motor fuel on which tax is not otherwise payable under this section must pay to the government, on or before the 20th day of the month following the month in which the fuel is used, tax on that fuel at the rate established under the regulations.
(4) A rate established under the regulations for the purposes of this section must not exceed the rate set out in section 4 (1) (a).
38 Section 13 is amended by striking out "3¢" wherever it appears and substituting "3.25¢".
39 Section 30 is amended
(a) by repealing subsections (1) and (2) and substituting the following:
(1) The director may, without advance notice to a collector, suspend the collector's appointment for a period of up to 30 days if
(a) the director is satisfied that the collector knowingly gave false information on an application for the appointment, or
(b) the collector refuses or neglects to comply with
(i) a provision of this Act or the regulations,
(ii) a provision of the agreement referred to in section 28 (1) (b), or
(iii) a condition specified by the director under section 29 (2) or 32 (2).
(1.1) If the director suspends an appointment of a collector under subsection (1), the director must, as soon as reasonably possible,
(a) advise the person of the reasons for the suspension, and
(b) provide the person with an opportunity to show the director why the suspension should be lifted.
(2) Subject to this section, the director may, by notice delivered to a collector, cancel the collector's appointment if
(a) the director is satisfied that the collector knowingly gave false information on an application for the appointment, or
(b) the collector refuses or neglects to comply with
(i) a provision of this Act or the regulations,
(ii) a provision of the agreement referred to in section 28 (1) (b), or
(iii) a condition specified by the director under section 29 (2) or 32 (2).
(2.1) Before cancelling an appointment under subsection (2), the director must give the collector
(a) notice of the reasons for the proposed cancellation, and
(b) an opportunity to show the director why the appointment should not be cancelled. , and
(b) in subsection (4) by striking out "A cancellation" and substituting "A suspension or cancellation".
40 The following section is added:
35.1 (1) If a person collects an amount as if it were a tax imposed under this Act, the person must remit the amount collected to the director at the same time and in the same manner as tax collected under this Act.
(2) A person who collects an amount of tax under this Act, or collects an amount as if it were tax under this Act, is deemed to hold the amount in trust for the government and for the payment of the amount to the government in the manner and at the time required under this Act and the regulations.
(3) Until an amount of tax and an amount collected as if it were tax referred to in subsection (2) are paid, the unpaid amount forms a lien and charge on the entire assets of the person who collected it, or the person's estate in the hands of any trustee, and has priority over all other claims of any person.
41 Section 43 (1) is amended
(a) by striking out ", collected" in both places, and
(b) by adding "other" before "information available".
42 Section 43 (2.1) is amended by striking out "interest at the rate prescribed by the Lieutenant Governor in Council" and substituting "interest calculated at the rate and in the manner prescribed".
43 Section 44 is repealed and the following substituted:
44 (1) If it appears from an inspection, audit or examination or from other information available to the director that an amount of tax imposed under this Act should have been but was not collected, the director must impose on the person who should have collected the tax a penalty equal to the amount of the tax that should have been collected, plus interest calculated at the rate and in the manner prescribed.
(2) If it appears from an inspection, audit or examination or from other information available to the director that an amount of security imposed under this Act should have been but was not paid, the director must impose on the person who should have paid that amount of security a penalty equal to the amount of security that should have been paid, plus interest calculated at the rate and in the manner prescribed.
(3) If a person is assessed a penalty under subsection (2), that person must not be assessed under subsection (1) in respect of the motor fuel that gave rise to the assessment under subsection (2).
(4) A person who has paid an amount imposed under subsection (1) or (2) may, in a court of competent jurisdiction, sue the person who was liable to pay the tax in order to recover the amount imposed under subsection (1), and any amount recovered in the action may be retained by the plaintiff as compensation for the amount paid under subsection (1).
44 Section 49 is repealed and the following substituted:
49 (1) A justice, who is satisfied by information on oath that there are reasonable grounds to believe that section 14 (3) or 15 is not being complied with, may at any time issue a warrant, under the justice's signature, authorizing a peace officer, named in the warrant, to enter and to search any premises or motor vehicle in order to inspect and take samples of the contents of a tank or container, including the fuel supply tank of a motor vehicle.
(2) If a peace officer has reasonable grounds to believe that
(a) section 14 (3) or 15 is not being complied with, and
(b) it is impracticable to obtain a warrant,
the peace officer may, without a warrant,
(c) stop a motor vehicle for the purpose of conducting an inspection under paragraph (d), and
(d) inspect and take samples of the contents of a tank or container, including the fuel supply tank of a motor vehicle.
(3) A person must not
(a) hinder, molest or interfere with a peace officer doing anything that the peace officer is authorized to do under this section, or
(b) prevent or attempt to prevent a peace officer from doing anything that the peace officer is authorized to do under this section.
45 Section 53 (3) is repealed and the following substituted:
(3) If a person, who has deposited a bond under subsection (1), fails to collect, remit or pay tax or pay security in accordance with this Act, the director, after giving written notice to the person who is bonded, may apply all or part of the bond to the amount that should have been collected, remitted or paid by the person, and to the interest due on that amount under this Act.
46 Section 58 is repealed and the following substituted:
58 (1) Before taking proceedings for the recovery of an amount owing under this Act, the director must give to the person who owes the amount notice of the director's intention to enforce payment.
(2) Failure to give notice under subsection (1) does not affect the validity of proceedings taken for the recovery of an amount owing under this Act.
47 The heading to Part 10 is repealed and the following substituted:
Part 10 -- General .
48 The following section is added in Part 10:
63.1 (1) For any purpose related to the administration or enforcement of this Act or the regulations, the director or a person authorized by the director may, by demand notice, require from any person
(a) a return,
(b) any information or additional information,
(c) the production of any records, or
(d) a written statement.
(2) A demand notice under subsection (1)
(a) must be delivered to the person by personal service, registered mail, electronic mail or fax,
(b) must specify a reasonable time by which the person must comply with the demand notice, and
(c) in relation to a requirement under subsection (1) (d), may require the written statement to be made by way of affidavit or statutory declaration.
(3) A person to whom a demand notice is delivered under this section must comply with the notice within the time specified in the notice.
(4) Under this Act, an affidavit by the director, or the authorized person referred to in subsection (1), in which are stated the facts necessary to establish
(a) compliance by the director or authorized person with this section, or
(b) default by a person on whom a demand was made under this section
must be admitted as evidence in any court and is proof, in the absence of evidence to the contrary, of the facts stated.
49 Section 64 is amended
(a) by repealing subsections (1) and (2), and
(b) in subsection (4) by adding the following paragraph:
(c.1) refuses to cooperate with an inspection, audit or examination, including producing records or books of account, or hinders or molests or interferes with an inspection, audit or examination, or prevents or attempts to prevent a person from carrying out an inspection, audit or examination under this Act; .
50 Section 71 is amended
(a) in subsection (2) by adding the following paragraphs:
(o.1) defining alternative motor fuels by naming the fuel or by reference to environmental benefits, market share or other criteria set out in the regulations;
(o.2) subject to section 10.1 (4), prescribing the rate of tax on alternative motor fuels, which may be different for different types of fuel or different uses of fuel;
(o.3) exempting fuel or classes of fuel from tax;
(y) prescribing interest rates and the manner of calculating interest for the purposes of this Act. , and
(b) by repealing subsection (3).
Petroleum and Natural Gas Act
51 Section 3 of the Petroleum and Natural Gas Act, R.S.B.C. 1996, c. 361, is amended by renumbering the section as section 3 (1) and by adding the following subsections:
(2) The minister on behalf of the government may enter into one or more agreements with the BC Transportation Financing Authority governing projects, to be undertaken and carried out by the authority for the construction, reconstruction, rehabilitation, repair or improvement of highways as defined in the Highway Act, that the minister considers will facilitate exploration, development or production of petroleum or natural gas, or both.
(3) The BC Transportation Financing Authority must submit to the Minister of Finance and Corporate Relations under section 54 of the Financial Administration Act, as necessary from time to time, requests to borrow for the purpose of funding the projects referred to in subsection (2) of this section, within the limits imposed under subsection (4).
(4) The amount borrowed by the BC Transportation Financing Authority for the projects referred to in subsection (2) must not exceed
(a) $103 million in the aggregate, or
(b) $22 million in any fiscal year of the government.
(5) Subsections (2) to (4) and this subsection are repealed on March 31, 2005.
Property Transfer Tax Act
52 The Property Transfer Tax Act, R.S.B.C. 1996, c. 378, is amended by adding the following section:
1.2 (1) In this section:
"interest of the previous holder" means the interest of the previous holder referred to in the definition of "previous holder";
"new holder" means the person who, through a taxable transaction, acquires an interest in land
(a) as beneficiary, if the interest is held in trust, or
(b) as transferee, if paragraph (a) does not apply;
"previous holder" means a person who, immediately before the registration of a taxable transaction, held an interest
(a) as beneficiary, if the interest was held in trust, or
(b) as legal and beneficial owner, if paragraph (a) does not apply,
in the same land to which the taxable transaction relates;
"related person" means a person who is
(a) a related individual, or
(b) a related person within the meaning of section 251 of the Income Tax Act (Canada).
(2) Subject to section 1.1 and subsection (3) of this section, this section applies in relation to a taxable transaction if
(a) the previous holder and the new holder are the same person or are related persons, and
(b) the interest of the previous holder was not registered in the land title office or, when that interest was registered, tax under this Act was not payable.
(3) This section does not apply if the interest of the previous holder
(a) was registered before March 23, 1987, or
(b) was a registered interest in the estate in fee simple as a joint tenant or a tenant in common.
(4) For the purposes of determining the fair market value of an estate in fee simple in relation to a taxable transaction to which this section applies, the fair market value is deemed to be the fair market value of the estate in fee simple determined in accordance with paragraph (a) of the definition of "fair market value", but as if the fee simple were not subject to the interest of the previous holder.
Social Service Tax Act
53 Section 1 of the Social Service Tax Act, R.S.B.C. 1996, c. 431, is amended
(a) by repealing the definition of "fixture" and substituting the following:
"fixture" means machinery, equipment or apparatus that is
(a) a fixture at common law, and
(b) used directly in the manufacture, production, processing, storage, handling, packaging, display, transportation, transmission or distribution of tangible personal property or in the provision of a service; ,
(b) by adding the following definitions:
"magazines" means printed and bound publications in a magazine format
(a) that are issued at regular intervals each year by professional bodies, trade or industrial organizations, commercial publishing firms or non-profit corporations, and
(b) where at least 10% of the content, determined in accordance with the regulations and in accordance with section 72 (2), is composed of technical, literary, editorial or pictorial content, other than advertising and promotional content,
but does not include a prescribed type of publication;
"newspapers" means printed and unbound publications in a newspaper format
(a) that are published at regular intervals each year, and
(b) where at least 25% of the content, determined in accordance with the regulations and in accordance with section 72 (2), is composed of editorials, news and articles of local or common interest, other than advertising and promotional content,
but does not include a prescribed type of publication or advertising material known as flyers, or advertising circulars, even if the flyers or advertising circulars are sold or given away as part of the newspaper;
"periodicals" means printed and bound publications in a periodical format
(a) that are issued at regular intervals each year by professional bodies, trade or industrial organizations, commercial publishing firms or non-profit corporations, and
(b) where at least 10% of the content, determined in accordance with the regulations, and in accordance with section 72 (2), is composed of technical, literary, editorial or pictorial content, other than advertising and promotional content,
but does not include a prescribed type of publication; ,
(c) in the definition of "purchase price" by adding the following paragraph:
(f) in relation to tangible personal property or a taxable service that is sold for a single price with tangible personal property or services that, under this Act, are not subject to tax or are exempt from tax, means the total consideration that is accepted by the seller for all the tangible personal property or services sold for the single price; ,
(d) in paragraph (a) of the definition of "software" by striking out "modifications to or of software solely" and substituting "modifications that involve changes to the source code of software and that are made solely",
(e) in paragraph (b) of the definition of "software" by striking out "software modified solely" and substituting "software that is modified in a manner that involves changes to the source code, and that is modified solely",
(f) by repealing the definition of "tangible personal property" and substituting the following:
"tangible personal property" means
(a) personal property that can be seen, weighed, measured, felt or touched, or that is in any other way perceptible to the senses, and includes natural or manufactured gas,
(b) software,
(c) electricity, and
(d) fixtures, other than prescribed types of fixtures; ,
(g) in paragraph (b) of the definition of "tax" by adding "(1.1)," after "93 (1),", and
(h) in the definition of "use" by striking out "and" at the end of paragraph (d), by adding "and" at the end of paragraph (e) and by adding the following paragraph:
(e.1) the consumption, employment or utilization of tangible personal property by a business in the course of delivering a service, .
54 The following section is added:
3.1 (1) For any purpose related to the administration or enforcement of this Act or the regulations, the commissioner or a person authorized by the commissioner may, by demand notice, require from any person
(a) a return,
(b) any information or additional information,
(c) the production of any records, or
(d) a written statement.
(2) A demand notice under subsection (1)
(a) must be delivered to the person by personal service, registered mail, electronic mail or fax,
(b) must specify a reasonable time by which the person must comply with the demand notice, and
(c) in relation to a requirement under subsection (1) (d), may require the written statement to be made by way of affidavit or statutory declaration.
(3) A person to whom a demand notice is delivered under this section must comply with the notice within the time specified in the notice.
(4) Under this Act, an affidavit by the commissioner, or the authorized person referred to in subsection (1), in which are stated the facts necessary to establish
(a) compliance by the commissioner or authorized person with this section, or
(b) default by a person on whom a demand was made under this section
must be admitted as evidence in any court and is proof, in the absence of evidence to the contrary, of the facts stated.
55 Section 11 is amended by adding the following subsection:
(2.1) For the purposes of subsection (1) (b), a person is deemed to use tangible personal property in the course of the person's business if
(a) the property is used
(i) by another person at the first person's expense,
(ii) by another person for whom the first person acts as agent, or
(iii) by another person at the expense of a principal for whom the first person acts as agent, and
(b) the use by the other person referred to in paragraph (a) is intended to assist the business of the first person referred to in that paragraph.
56 Section 16 is amended
(a) in subsection (1) (b) by adding at the beginning "before or after the time the person acquires an interest in real property, or a right referred to in paragraph (c),",
(b) by repealing subsection (1) (c) and substituting the following:
(c) the person
(i) owns, or leases for a total of at least 12 months within an 18 month period, real property in British Columbia,
(ii) owns, or leases for a total of at least 12 months within an 18 month period, one or more sites in British Columbia at which a boat may be moored,
(iii) has acquired a right to moor or otherwise situate a boat at one or more sites in British Columbia, which right or rights are in effect for a total of at least 12 months within an 18 month period,
(iv) leases for a total of at least 12 months within an 18 month period, one or more sites in British Columbia at which a recreational vehicle may be parked or otherwise situated, or
(v) has acquired a right to park or otherwise situate a recreational vehicle at one or more sites in British Columbia, which right or rights are in effect for a total of at least 12 months within an 18 month period, and ,
(c) in subsection (1) (d) by striking out "for the 12 month period" and substituting "for a total of at least 12 months within an 18 month period", and
(d) in subsection (2) by adding "as soon as the conditions for payment of the tax have been satisfied" after "must".
57 Section 19 is amended by adding the following subsection:
(3) If prescribed tangible personal property becomes subject to tax under section 16, the purchase price of the property is deemed to be the greater of the following amounts:
(a) the depreciated value, as determined in accordance with the regulations, of the prescribed tangible personal property at the time it is brought, sent or delivered into British Columbia;
(b) 50% of the purchase price of the prescribed tangible personal property.
58 Section 21 is amended by adding the following subsection:
(1.1) For the purposes of subsection (1) (b), a person is deemed to use tangible personal property in the course of the person's business if
(a) the property is used
(i) by another person at the first person's expense,
(ii) by another person for whom the first person acts as agent, or
(iii) by another person at the expense of a principal for whom the first person acts as agent, and
(b) the use by the other person referred to in paragraph (a) is intended to assist the business of the first person referred to in that paragraph.
59 Section 28 is amended
(a) in the definition of "acquisition date" by striking out "or" at the end of paragraph (a), by adding ", or" at the end of paragraph (b) and by adding the following paragraph:
(c) in the case of a vehicle that is a gift, the date the recipient of the gift receives possession of the vehicle; ,
(b) in the definition of "acquisition year" by striking out "or" at the end of paragraph (a), by adding ", or" at the end of paragraph (b) and by adding the following paragraph:
(c) in the case of a vehicle that is a gift, the date the recipient of the gift receives possession of the vehicle; ,
(c) by adding the following definitions:
"market value" means the price at which the legal and beneficial interest in a vehicle would, if unencumbered, be conveyed by a willing seller, acting in good faith, to a willing buyer, acting in good faith, in an arm's length retail sale in an open market;
"service vehicle" means a vehicle that carries equipment or repair or replacement parts for servicing tangible personal property or real property in British Columbia, and includes a vehicle that services oil and natural gas wells or pipelines; ,
(d) by repealing the definition of "vehicle" and substituting the following:
"vehicle" does not include a trailer, pick-up truck or service vehicle; , and
(e) by repealing the definition of "vehicle taxable value" and substituting the following:
"vehicle taxable value" means, in respect of a vehicle
(a) that is purchased for market value, the purchase price of the vehicle,
(b) that is a leased vehicle, the greater of the purchase price of the vehicle, as described in the lease agreement, and the market value of the vehicle, or
(c) that is acquired for less than market value, the market value of the vehicle,
and includes any capital expenditure made to the vehicle within 30 days after the vehicle's acquisition date.
60 The following section is added:
69.1 Subject to the regulations, tangible personal property or taxable services otherwise subject to tax under this Act are exempt if the tangible personal property or taxable services
(a) are sold for a single price with tangible personal property or services that, under this Act, are not subject to tax or are exempt from tax, and
(b) have a value that is 10% or less of the value of all the tangible personal property or services sold for the single price.
61 Section 72 is amended
(a) by repealing paragraph (b) and substituting the following:
(b) magazines, periodicals, newspapers, employee newsletters, employee magazines and student yearbooks; , and
(b) by renumbering the section as section 72 (1) and by adding the following subsection:
(2) If a publication is sold or given away with another publication, a determination of whether one or both publications qualify for an exemption under subsection (1) (b) must be based on the content of each publication considered separately.
62 Section 75 (e) is repealed and the following substituted:
(e) trailers acquired to be used and used only with multijurisdictional vehicles for interjurisdictional commercial purposes; .
63 Section 76 is amended
(a) in subsection (1) (b) by striking out "subject to subsection (2)," and substituting "subject to subsections (2) and (5),",
(b) in subsection (1) by adding the following paragraphs:
(c.1) subject to subsections (3) and (4), tangible personal property that is used in the course of providing a taxable service to other tangible personal property and that remains part of, or attached to, the other tangible personal property after the service has been provided;
(j) software acquired for the purpose of being incorporated into other software for retail sale where, under the terms of the licence governing the use of the acquired software, the acquired software can only be used for the purpose of being incorporated into other software for retail sale. ,
(c) in subsection (3) by adding ", (c.1)" after "subsection (1) (c)",
(d) in subsection (4) by striking out "The exemption under subsection (1) (c) does not apply" and substituting "The exemptions under subsection (1) (c) and (c.1) do not apply", and
(e) by adding the following subsection:
(5) The exemption under subsection (1) (b) does not apply to a substance used as a catalyst or direct agent if
(a) the substance is not used directly in the transformation or manufacture of a product or the contact between the substance and the material being transformed or manufactured into a product is inconsequential to the transformation or manufacture of the product, or
(b) the substance is added to a tailings or settling pond.
64 Section 92 is amended
(a) by adding the following subsection:
(1.1) A person who is required to collect tax under section 93 must not cause tangible personal property to be delivered into British Columbia unless
(a) he or she has been granted, on application in the form required by the commissioner, a registration certificate under the authority of this Act, and
(b) the certificate is in force at the time he or she causes the tangible personal property to be delivered into British Columbia. , and
(b) by repealing subsection (2) and substituting the following:
(2) A registration certificate
(a) must be issued by the commissioner,
(b) is not transferable, and
(c) in the case of a certificate issued under subsection (1), must be kept at the principal place of business of the vendor or lessor in British Columbia.
65 Section 93 is amended by adding the following subsection:
(1.1) Every person who is located outside of British Columbia and who, in the ordinary course of business,
(a) solicits persons in British Columbia for orders to purchase tangible personal property, by advertising or any other means,
(b) accepts orders to purchase tangible personal property, if the orders to purchase originate from locations in British Columbia,
(c) sells tangible personal property to a person in British Columbia
(i) for that person's own consumption or use,
(ii) for the 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 the consumption or use by the principal or by another person at the expense of the principal, and
(d) causes the tangible personal property described in paragraph (c) to be delivered into British Columbia
is deemed to be an agent for the minister, and as an agent must levy and collect the tax from the person on whom it is imposed by this Act.
66 Section 96 is amended
(a) in subsection (1) by striking out "Subject to subsections (2) and (3)" and substituting "Subject to subsections (1.1), (2) and (3)",
(b) by adding the following subsection:
(1.1) A person who is required to collect tax under section 93 (1.1) must collect the tax at or before the time the tangible personal property is received in British Columbia. , and
(c) by repealing subsection (6) and substituting the following:
(6) If a person collects an amount of tax under this Act or collects an amount as if it were a tax imposed under this Act, the person must remit the amount collected to the commissioner at the same time and in the same manner as tax collected under this Act.
67 Section 102 is repealed and the following substituted:
102 If a person collects an amount of tax under this Act or collects an amount as if it were tax under this Act,
(a) the person is deemed to hold the amount in trust for the government and for the payment of the amount to the government in the manner and at the time required under this Act and the regulations, and
(b) the amount collected is deemed to be held separate from and does not form a part of the person's money, assets or estate, whether or not the amount collected has in fact been kept separate and apart from either the person's own money or the assets of the estate of the person who collected the amount.
68 Section 105 is repealed and the following substituted:
105 (1) Before taking proceedings for the recovery of an amount owing under this Act, the commissioner must give to the person who owes the amount notice of the commissioner's intention to enforce payment.
(2) Failure to give notice under subsection (1) does not affect the validity of proceedings taken for the recovery of an amount owing under this Act.
69 Section 108 (1) is amended by adding "or (1.1)" after "section 93 (1)".
70 Section 115 (4.1) and (5) is amended by striking out "interest at a rate prescribed by the Lieutenant Governor in Council" and substituting "interest calculated at the rate and in the manner prescribed".
71 Section 117 (2) is amended by striking out "interest, at a rate prescribed by the Lieutenant Governor in Council" and substituting "interest calculated at the rate and in the manner prescribed".
72 Section 123 is amended
(a) by repealing subsections (1) and (2), and
(b) in subsection (3) by adding the following paragraph:
(d.1) refuses to cooperate with an inspection, audit or examination, including producing records or books of account, or hinders or molests or interferes with an inspection, audit or examination, or prevents or attempts to prevent a person from carrying out an inspection, audit or examination under this Act; .
73 Section 128 (3) is repealed.
74 Section 138 is amended
(a) in subsection (1) by adding the following paragraphs:
(l) prescribing interest rates and the manner of calculating interest for the purposes of this Act;
(m) determining, for the purposes of the definitions of "magazines", "newspapers" and "periodicals",
(i) the content of a publication that is to be included as technical, literary, editorial or pictorial content,
(ii) the content of a publication that is to be included as advertising or promotional content,
(iii) the content of a publication that is to be included as editorials, news and articles of local or common interest, and
(iv) the rules for calculating the percentage content of a publication;
(n) prescribing types of fixtures that are not included in the meaning of tangible personal property, as defined in section 1;
(o) prescribing types of publications that are not included in the meaning of magazines, periodicals and newspapers, as defined in section 1;
(p) prescribing conditions or limitations for the purpose of section 69.1. , and
(b) in subsection (2) by adding "and (3)" after "section 19 (1)".
Taxation (Rural Area) Act
75 Section 11 (3) of the Taxation (Rural Area) Act, R.S.B.C. 1996, c. 448, is amended by striking out "at a rate" and substituting "calculated at the rate and in the manner".
Tobacco Tax Act
76 Section 2 of the Tobacco Tax Act, R.S.B.C. 1996, c. 452, is amended by adding the following subsection:
(12) If a person collects an amount as if it were a tax imposed under this Act, the person must remit the amount collected to the director at the same time and in the same manner as tax collected under this Act.
77 Section 6 (4) is repealed and the following substituted:
(4) The director may require the applicant for a dealer's permit, as a condition of granting the permit, to deposit a bond by way of cash or other security.
78 The following section is added:
12.1 (1) For any purpose related to the administration or enforcement of this Act or the regulations, the director or a person authorized by the director may, by demand notice, require from any person
(a) a return,
(b) any information or additional information,
(c) the production of any records, or
(d) a written statement.
(2) A demand notice under subsection (1)
(a) must be delivered to the person by personal service, registered mail, electronic mail or fax,
(b) must specify a reasonable time by which the person must comply with the demand notice, and
(c) in relation to a requirement under subsection (1) (d), may require the written statement to be made by way of affidavit or statutory declaration.
(3) A person to whom a demand notice is delivered under this section must comply with the notice within the time specified in the notice.
(4) Under this Act, an affidavit by the director, or the authorized person referred to in subsection (1), in which are stated the facts necessary to establish
(a) compliance by the director or authorized person with this section, or
(b) default by a person on whom a demand was made under this section
must be admitted as evidence in any court and is proof, in the absence of evidence to the contrary, of the facts stated.
79 Section 22 is amended
(a) in subsection (2) by adding "plus interest calculated at the rate and in the manner prescribed" after "amount of tax payable",
(b) in subsection (2.1) by striking out "interest at the rate prescribed by the Lieutenant Governor in Council" and substituting "interest calculated at the rate and in the manner prescribed",
(c) in subsection (2.2) by adding ", plus interest calculated at the rate and in the manner prescribed" after "in British Columbia", and
(d) in subsections (5) and (5.1) by striking out "interest at a rate prescribed by the Lieutenant Governor in Council" and substituting "interest calculated at the rate and in the manner prescribed".
80 Section 23 (1) (f) is amended by adding "12 (4)," after "11 (3),".
81 Section 28 is repealed and the following substituted:
28 (1) A person who collects an amount of tax, or an amount as if it were tax under this Act, is deemed to hold the amount in trust for the government and for the payment of the amount to the government in the manner and at the time required under this Act and the regulations.
(2) Until an amount of tax or an amount collected as if it were tax referred to in subsection (1) is paid, the unpaid amount forms a lien and charge on the entire assets of the person who collected it, or the person's estate in the hands of any trustee, and has priority over all other claims of any person.
82 Section 29 is repealed and the following substituted:
29 (1) Before taking proceedings for the recovery of an amount owing under this Act, the director must give to the person who owes the amount notice of the director's intention to enforce payment.
(2) Failure to give notice under subsection (1) does not affect the validity of proceedings taken for the recovery of an amount owing under this Act.
83 Section 35 (2) is amended by striking out "interest at a rate prescribed by the Lieutenant Governor in Council" and substituting "interest calculated at the rate and in the manner prescribed".
84 Section 37 is amended
(a) by repealing subsection (1) and substituting the following:
(1) The director may require a dealer to deposit with the director a bond by way of cash or other security satisfactory to the director. ,
(b) by repealing subsection (3) and substituting the following:
(3) If a dealer, who has deposited a bond under subsection (1), fails to collect or remit tax or pay security in accordance with this Act, the director, after giving written notice to the dealer, may apply all or part of the bond to the amount that should have been collected, remitted or paid by the dealer and to the interest due on that amount under this Act. , and
(c) by adding the following subsection:
(4) If there is a change in circumstances after a bond is provided under subsection (1) or section 6 (4), the director may vary the amount of the bond required, to a maximum of 6 times the estimated tax that would normally be collected under this Act by the dealer each month.
85 Section 39 is amended
(a) in subsection (1) by striking out "2, 4, 6, 10, 11 (1), 21 (3), (6) or (7),",
(b) in subsection (4) by adding the following paragraph:
(d.1) refuses to cooperate with an inspection, audit or examination, including producing records or books of account, or hinders or molests or interferes with an inspection, audit or examination, or prevents or attempts to prevent a person from carrying out an inspection, audit or examination under this Act; , and
(c) in subsection (7) (a) and (b) by striking out "50 cartons of cigarettes" in both places and substituting "10 000 grams of tobacco".
86 Section 40 is amended
(a) by repealing subsection (3) and substituting the following:
(3) In a prosecution under section 39 (7) and for the purposes of sections 47 and 48, the possession or keeping of more than 1 000 grams of tobacco, by a person other than a dealer who is authorized to sell tobacco by a dealer's permit or by regulation is, in the absence of evidence to the contrary, prima facie evidence that the person unlawfully possesses or keeps tobacco, or possesses or keeps tobacco for an unlawful purpose. , and
(b) by adding the following subsection:
(4) In a prosecution under section 39 (7) and for the purposes of sections 47 and 48, the possession or keeping of more than 1 000 grams of tobacco that does not bear the prescribed mark or stamp, is, in the absence of evidence to the contrary, prima facie evidence that the person unlawfully possesses or keeps tobacco, or possesses or keeps tobacco for an unlawful purpose.
87 Section 44 (2) is amended
(a) by repealing paragraphs (j) and (k) substituting the following:
(j) prescribing limits on the quantity of tobacco that may be sold to or purchased by a person at a single retail sale or at retail sales during a specified period, including the power to establish different limits for different circumstances, different types of tobacco or different dealers, consumers, or classes of dealers and consumers;
(k) establishing a marking system for identifying tobacco that is to be sold to persons who are required to pay tax under this Act and identifying tobacco that is to be sold to persons whose purchase of tobacco is exempt from tax, and establishing circumstances, in relation to the marking system, under which a person may possess, purchase, sell, transport or store tobacco; , and
(b) by adding the following paragraphs:
(o) prescribing interest rates and the manner of calculating interest for the purposes of this Act;
(p) establishing circumstances in which sections 40 (4), 51 (2) and 54 (8) (a) do not apply to a prescribed category of persons.
88 Sections 47 and 48 are repealed and the following substituted:
47 If a peace officer has reasonable grounds to believe that it is impracticable to obtain a search warrant, and that
(a) tobacco is unlawfully possessed or kept, or possessed or kept for an unlawful purpose, or
(b) there are records or any other thing that will provide evidence related to tobacco that is unlawfully possessed or kept, or possessed or kept for an unlawful purpose,
the peace officer may, without a search warrant,
(c) enter and search in any place or premises, other than a residence, for tobacco, records or any other thing referred to in paragraph (b), and
(d) stop a vehicle, vessel or aircraft, and search for tobacco, records or any other thing referred to in paragraph (b).
48 (1) For the purposes of this section, "premises" includes a residence.
(2) A justice who is satisfied, by information on oath, that there are reasonable grounds to believe that tobacco is
(a) unlawfully possessed or kept in a premises, vehicle, vessel or aircraft, or at any other place, or
(b) possessed or kept in a premises, vehicle, vessel or aircraft, or at any other place, for an unlawful purpose,
may, at any time, issue a warrant under the justice's signature, authorizing a peace officer named in it to enter and search the premises, vehicle, vessel, aircraft or place for the tobacco and to seize and remove the tobacco and any packaging found there.
(3) A justice who is satisfied, by information on oath, that there are reasonable grounds to believe that records or other things
(a) will provide evidence of the unlawful possession or keeping of tobacco, or the possession or keeping of tobacco for an unlawful purpose, and
(b) are possessed or kept in a premises, vehicle, vessel or aircraft, or at any other place,
may, at any time, issue a warrant under the justice's signature, authorizing a peace officer named in it to enter and search the premises, vehicle, vessel, aircraft or place for the records or other things and to seize and remove the records and other things found there.
89 Section 49 (1) is repealed and the following substituted:
(1) If a peace officer stops and searches a vehicle, vessel or aircraft, or enters and searches a premises or any other place under section 47 or 48, the person in charge of the vehicle, vessel or aircraft or the owner or occupant of the premises or other place must give the peace officer all reasonable assistance in connection with the stoppage, entry or search.
(1.1) A person must not
(a) hinder, molest or interfere with a peace officer doing anything that the peace officer is authorized to do under this Act, or
(b) prevent or attempt to prevent a peace officer from doing anything that the peace officer is authorized to do under this Act.
90 Section 50 (1) is repealed and the following substituted:
(1) If in conducting or attempting to conduct a search under section 47 or 48, a peace officer finds
(a) tobacco that, in the peace officer's opinion, is unlawfully possessed or kept, or kept or possessed for an unlawful purpose, contrary to this Act or the regulations, or
(b) records or other things that in the peace officer's opinion will provide evidence of an offence against this Act or the regulations,
the peace officer may immediately seize and remove the tobacco, records or other things referred to in paragraph (a) or (b).
91 Section 51 (3) is amended by striking out "5 cartons of cigarettes" and substituting "1 000 grams of tobacco".
92 Section 52 (1) is amended by striking out "section 50," and substituting "section 48 or 50,".
93 Section 53 (1) and (2) is repealed and the following substituted:
(1) Anything detained under section 52, other than a thing that may be subject to forfeiture under section 54, must not be detained for a period longer than 1 year from the date of its seizure unless, before the expiration of that period,
(a) proceedings have been commenced in respect of the thing,
(b) the owner of the thing agrees to its continued detention, or
(c) a justice is satisfied that the continued detention of the thing seized is warranted for a specified period, subject to any other conditions as the justice considers appropriate, and so orders.
(2) More than one order may be made under subsection (1) (c) with respect to anything that is detained under section 52.
94 Section 54 is amended
(a) by repealing subsection (4) and substituting the following:
(4) Subject to section 55 (2), tobacco and any packaging in which it was kept that were seized under section 48 or 50 (1), and any money or security held under subsection (3) of this section, are forfeited to the government, if a conviction is obtained for an offence referred to in section 39 (7) or (9) in relation to the tobacco. , and
(b) in subsections (5) and (11) by striking out "under section 50 (1)" and substituting "under section 48 or 50 (1)".
95 Section 58 (3) is amended by striking out "5 cartons of cigarettes" and substituting "1 000 grams of tobacco".
Waste Management Act
96 Section 57 of the Waste Management Act, R.S.B.C. 1996, c. 482, is amended
(a) in subsection (2) by adding the following paragraph:
(w) respecting the rebate of fees or charges under this Act or the regulations to foster expenditures in or contributions towards projects or purposes that the Lieutenant Governor in Council considers to be in the interest of the environment. ,
(b) in subsection (7) by striking out "charges and" and substituting "charges, different bases for rebate, and", and
(c) by adding the following subsection:
(7.1) If authorized by a regulation under subsection (2) (w), the minister may pay money out of the Sustainable Environment Fund continued under the Sustainable Environment Fund Act for the issuance of any rebate authorized under the regulation.
British Columbia Ferry Corporation Debt Extinguishment
97 (1) In this section:
"corporation" means the British Columbia Ferry Corporation;
"prescribed debt obligations" means the prescribed debt obligations owed to the government by the corporation as the result of loans made by the government to the corporation before March 31, 2000.
(2) The prescribed debt obligations are extinguished.
(3) Any securities evidencing the prescribed debt obligations are cancelled.
(4) Ownership of all assets in the sinking funds established for the repayment of the prescribed debt obligations is transferred to the government.
(5) All obligations under interest rate exchange agreements or currency exchange agreements entered into between the corporation and the government in relation to the prescribed debt obligations are extinguished.
(6) Subject to subsection (7), the Lieutenant Governor in Council may make regulations prescribing debt obligations for the purpose of this section.
(7) The prescribed debt obligations may not exceed $1 080 million after
(a) adding any unamortized premiums in relation to those debt obligations,
(b) subtracting any unamortized discounts in relation to those debt obligations, and
(c) subtracting the value of the sinking funds established for repayment of those debt obligations.
(8) Regulations that may be made under subsection (6) may be made retroactive to March 31, 2000, and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.
(9) No appropriation other than this section is required to authorize the extinguishment of the obligations under this section.
Hydro Rate Freeze
98 Despite the Utilities Commission Act, the rates and rate schedules that were in effect on December 10, 1997 and that are prescribed by B.C. Reg. 190/98 are the only lawful, enforceable and collectable rates that the British Columbia Hydro and Power Authority may collect, charge or enforce from December 10, 1997 to September 30, 2001 for the services to which those rates apply.
Transitional and Commencement
99 Regulations that may be made under the Corporation Capital Tax Act, the Hotel Room Tax Act, the Insurance Premium Tax Act, the Logging Tax Act, the Motor Fuel Tax Act, the Social Service Tax Act, the Taxation (Rural Area) Act or the Tobacco Tax Act as a result of the enactment of this Act may, if made before October 1, 2000, be made retroactive to April 1, 2000 and a regulation made retroactive is deemed to have come into force on the date specified in the regulation.
Transitional Provisions -- Canada Customs and Revenue Agency Act
100 In an enactment, every reference to the Department of National Revenue or to the Minister or Deputy Minister of National Revenue, or any person under their authority, is to be read, unless the context otherwise requires, as a reference to the Agency, the Minister, the Commissioner or an employee of the Agency, as the case may be, as those terms are defined in the Canada Customs and Revenue Agency Act.
101 In a document issued by the government or by a public officer under an enactment, every reference to the Department of National Revenue or to the Minister or Deputy Minister of National Revenue, or any person under their authority, is to be read, unless the context otherwise requires, as a reference to the Agency, the Minister, the Commissioner or an employee of the Agency, as the case may be, as those terms are defined in the Canada Customs and Revenue Agency Act.
102 (1) Sections 1 to 4, 7, 9 to 15, 23 to 25, 28, 29, 31 to 46, 49 to 51, 53, 55 to 77, 79 to 95 and 99 are deemed to have come into force on April 1, 2000 and are retroactive to the extent necessary to give them effect on and after that date.
(2) Section 52 is deemed to have come into force on March 28, 2000 and is retroactive to the extent necessary to give it effect on and after that date.
(3) Sections 16, 21, 22, 100 and 101 are deemed to have come into force on November 1, 1999 and are retroactive to the extent necessary to give them effect on and after that date.
(4) Section 17 comes into force on July 1, 2000.
(5) Sections 5, 6, 97 and 98 are deemed to have come into force on March 31, 2000 and are retroactive to the extent necessary to give them effect on and after that date.
(6) Sections 27 and 30 come into force by regulation of the Lieutenant Governor in Council.
Explanatory Notes
Corporation Capital Tax Act
SECTION 1: [Corporation Capital Tax Act, repeals and replaces section 2 (7) (b)] clarifies that, for the purposes of the Corporation Capital Tax Act, a nonresident corporation within the meaning of that Act is deemed to have a permanent establishment on, or a right or interest in, land it owns in Canada.
SECTION 2: [Corporation Capital Tax Act, adds section 5 (5)] prevents a corporation that commences having, or ceases to have, a permanent establishment in British Columbia during a taxation year from claiming, for that taxation year, a tax deduction under both section 5 and section 12 of the Corporation Capital Tax Act.
SECTION 3: [Corporation Capital Tax Act, repeals and replaces section 11 (1) (c)] clarifies that a corporation is not entitled to exclude, from the calculation of total assets, the carrying value of the corporation's interest in a partnership unless the corporation has included within that total assets amount its proportionate share of the aggregate of the carrying values of the partnership assets on the partnership's balance sheet.
SECTION 4: [Corporation Capital Tax Act, repeals and replaces section 19 (13)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
Financial Administration Act
SECTION 5: [Financial Administration Act, adds section 17 (3)] allows Treasury Board to establish policies respecting allowances for doubtful accounts.
SECTION 6: [Financial Administration Act, amends section 21]
Hotel Room Tax Act
SECTION 7: [Hotel Room Tax Act, enacts section 8.1] requires a person who collects an amount of hotel room tax in error to remit the amount to the director as if it were tax collected under this Act.
SECTION 8: [Hotel Room Tax Act, enacts section 16.1] authorizes the director or a delegate to demand information required for the purpose of administering or enforcing the Act.
SECTION 9: [Hotel Room Tax Act, amends section 17 (3.1) and (7)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
SECTION 10: [Hotel Room Tax Act, amends section 23 (1)] deems a person who collects an amount as hotel room tax, whether properly or in error, to hold the amount in trust for the government, and deems the funds to be held separate and apart from the person's other money.
SECTION 11: [Hotel Room Tax Act, re-enacts section 25] simplifies the section and provides that it applies to proceedings for the recovery of all amounts owing under the Act.
SECTION 12: [Hotel Room Tax Act, amends section 32 (2)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
SECTION 13: [Hotel Room Tax Act, amends section 36 (1)] adds offences for refusing to cooperate with an inspection, audit or examination and willfully failing to comply with the Act or regulations.
SECTION 14: [Hotel Room Tax Act, repeals section 38 (1)] rationalizes the offence provisions under the Act.
SECTION 15: [Hotel Room Tax Act, amends section 43] authorizes regulations prescribing interest rates and the manner of calculating interest and repeals subsection (4) consequential to the amendment to section 38 of the Act.
Income Tax Act
SECTION 16: [Income Tax Act, amends section 1] substitutes the new names to accord with changes to the Income Tax Act (Canada).
SECTION 17: [Income Tax Act, amends section 16] reduces the small business tax rate, effective July 1, 2000.
SECTION 18: [Income Tax Act, amends section 25.1]
SECTION 19: [Income Tax Act, amends section 64 (3)] is consequential to the amendment to section 25.1 of the Income Tax Act.
SECTION 20: [Income Tax Act, amends section 65 (1)] clarifies the authority for the Minister of Finance and Corporate Relations to enter into a memorandum of understanding respecting information sharing with another government ministry.
SECTION 21: [Income Tax Act, amends section 68 (6)] substitutes the new names to accord with changes to the Income Tax Act (Canada).
SECTION 22: [Income Tax Act, amends section 69 (4)] substitutes the new names to accord with changes to the Income Tax Act (Canada).
SECTION 23: [Income Tax Act, amends section 79 (1)] clarifies that the reference to salary or wages or to remuneration in the definition of "BC labour expenditure" in section 79 of the Income Tax Act means all applicable salary or wages or remuneration paid by the referenced corporation in respect of the production, and that the reference to costs in the definition of "TPC" found in the definition of "qualified BC labour expenditure" in section 79 of the Income Tax Act means all applicable costs paid in respect of the production by all of the owners of the copyright in the production.
SECTION 24: [Income Tax Act, enacts sections 102.1 to 102.3]
Insurance Premium Tax Act
SECTION 25: [Insurance Premium Tax Act, repeals and replaces section 7 (5)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
SECTION 26: [Insurance Premium Tax Act, amends section 11 (2)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
SECTION 27: [Insurance Premium Tax Act, amends section 15 (1)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
Liquor Control and Licensing Act
SECTION 28: [Liquor Control and Licensing Act, repeals sections 82 and 83] repeals sections so that the Financial Administration Act will apply to money received under the Liquor Control and Licensing Act.
Logging Tax Act
SECTION 29: [Logging Tax Act, amends section 15 (6)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
SECTION 30: [Logging Tax Act, amends section 21 (1)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
SECTION 31: [Logging Tax Act, amends section 39 (1.1)] corrects a cross reference.
Motor Fuel Tax Act
SECTION 32: [Motor Fuel Tax Act, amends section 1]
SECTION 33: [Motor Fuel Tax Act, amends section 3.1] repeals the exemption for alcohol based fuel and compressed natural gas, which will be dealt with under the regulations.
SECTION 34: [Motor Fuel Tax Act, repeals and replaces section 4 (1) (a) and (b)] reduces the tax on gasoline paid to the Province effective April 1, 2000, consequential to the amendment to section 13 of the Motor Fuel Tax Act.
SECTION 35: [Motor Fuel Tax Act, re-enacts section 9] phases out the tax for natural gas used or purchased for use in stationary internal combustion engines for the purpose of extracting and transporting non-marketable natural gas from a well to a gas processing plant or within a processing plant and provides an exemption where the natural gas is used to operate compressors for injecting of waste (sour) gas into depleted wells for disposal.
SECTION 36: [Motor Fuel Tax Act, repeals and replaces section 10 (1) (a) and (b)] reduces the tax on motive fuel paid to the Province effective April 1, 2000, consequential to the amendment to section 13 of the Motor Fuel Tax Act.
SECTION 37: [Motor Fuel Tax Act, enacts section 10.1] provides for a new tax scheme respecting the taxation of alternative motor fuels.
SECTION 38: [Motor Fuel Tax Act, amends section 13] increases the tax for transportation infrastructure construction effective April 1, 2000.
SECTION 39: [Motor Fuel Tax Act, amends section 30] allows the director to suspend a collector's appointment for up to 30 days. Currently, the director only has authority to cancel a collector's appointment.
SECTION 40: [Motor Fuel Tax Act, enacts section 35.1] requires a person who collects motor fuel tax in error, to remit the amount to the director as if it were tax collected under this Act. Also this provision deems a person who collects motor fuel tax, or an amount as if it were motor fuel tax, to hold the amount in trust for the government and apart from the person's other money.
SECTION 41: [Motor Fuel Tax Act, amends section 43 (1)] deletes "collected" from section 43 (1) as the reference is unnecessary. Currently, in this section, the director is permitted to assess taxes that have not been "paid, collected or remitted".
SECTION 42: [Motor Fuel Tax Act, amends section 43 (2.1)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
SECTION 43: [Motor Fuel Tax Act, re-enacts section 44] clarifies that if a penalty is imposed under the Act for failure to pay tax or security, the penalty will include interest on the unpaid amount.
SECTION 44: [Motor Fuel Tax Act, re-enacts section 49] repeals and replaces section 49 to require a warrant, unless it is impracticable to get such a warrant, when a peace officer needs to conduct a search. A warrant is presently not required to conduct a search of a fuel tank.
SECTION 45: [Motor Fuel Tax Act, repeals and replaces section 53 (3)] authorizes the director to realize on a bond for unpaid security and interest, as well as for unpaid tax and interest.
SECTION 46: [Motor Fuel Tax Act, re-enacts section 58] simplifies the section and provides that it applies to proceedings for the recovery of all amounts owing under the Act.
SECTION 47: [Motor Fuel Tax Act, re-enacts Part heading] is consequential to the proposed section 63.1 of the Act.
SECTION 48: [Motor Fuel Tax Act, enacts section 63.1] authorizes the director or a delegate to demand information required for the purpose of administering or enforcing the Act.
SECTION 49: [Motor Fuel Tax Act, amends section 64] rationalizes offence provisions under the Act.
SECTION 50: [Motor Fuel Tax Act, amends section 71] adds regulation making powers respecting alternative motor fuels and repeals subsection (3) consequential to the amendment to section 64 of the Act.
Petroleum and Natural Gas Act
SECTION 51: [Petroleum and Natural Gas Act, amends section 3] during the period ending March 31, 2005,
Property Transfer Tax Act
SECTION 52: [Property Transfer Tax Act, enacts section 1.2] directs how the value of a transaction subject to tax under the Act is to be determined in cases where the person to whom the property interest is being transferred, or a person related to that person, already held an interest in the property.
Social Service Tax Act
SECTION 53: [Social Service Tax Act, amends section 1]
SECTION 54: [Social Service Tax Act, enacts section 3.1] authorizes the commissioner or a delegate to demand information required for the purpose of administering or enforcing the Act.
SECTION 55: [Social Service Tax Act, adds section 11 (2.1)] deems that a person is using tangible personal property in the course of his or her business, when the property is used by another person, at the first person's expense, or under certain agency relationships.
SECTION 56: [Social Service Tax Act, amends section 16]
(a) that the 12 month period referred to in this section need not be a continuous 12 month period, but only 12 months in an 18 month period,
(b) that a recreational vehicle parked at more than one site in British Columbia will still be subject to tax, and
(c) that tax must be paid on meeting all the conditions set out in section 16 (1).
SECTION 57: [Social Service Tax Act, adds section 19 (3)] establishes the purchase price, where tangible personal property is subject to tax under section 16.
SECTION 58: [Social Service Tax Act, adds section 21 (1.1)] parallels the amendment to section 11 in respect of leased property.
SECTION 59: [Social Service Tax Act, amends section 28] amends various definitions including
(a) adding definitions of "market value" and "service vehicle",
(b) amending "vehicle taxable value" to establish that the taxable value will be the fair market value of a vehicle that is gifted or purchased for a price that is less than its market value, and
(c) excluding pick-up trucks and service vehicles, as defined, from the definition of "vehicle".
SECTION 60: [Social Service Tax Act, enacts section 69.1] exempts tangible personal property or taxable services that are sold with non-taxable tangible personal property or services that are not taxable for one price, if the taxable tangible personal property or taxable services are equal to 10% or less of the total value of the goods or services sold together.
SECTION 61: [Social Service Tax Act, amends section 72]
(a) clarifies that employee newsletters, employee magazines, periodicals and student yearbooks are exempt from tax, and
(b) requires that publications sold together as one unit must be examined separately to determine each publication's eligibility for tax exemption.
SECTION 62: [Social Service Tax Act, repeals and replaces section 75 (e)] clarifies that the exemption for trailers applies only where the trailers are used with multijurisdictional vehicles for extraprovincial transport.
SECTION 63: [Social Service Tax Act, amends section 76]
(a) exempts the following from taxation under the Act:
(i) software that is acquired for the purpose of being incorporated into other software for retail sale;
(ii) tangible personal property used to provide a taxable service to other tangible personal property, and that remains a part of that other tangible personal property, and
(b) limits the exemption for catalysts and direct agents.
SECTION 64: [Social Service Tax Act, amends section 92] establishes registration requirements for sellers located outside of the Province if they are required to collect tax under section 93 of the Social Service Tax Act.
SECTION 65: [Social Service Tax Act, adds section 93 (1.1)] imposes an obligation on out of Province sellers to collect tax under the Social Service Tax Act, if the out of Province sellers
(a) solicit business in British Columbia,
(b) accept purchase orders from persons in British Columbia, and
(c) deliver goods into British Columbia as a result of those purchase orders.
SECTION 66: [Social Service Tax Act, amends section 96] requires out of Province sellers to collect tax at the time the property is received in the Province. Also requires that a person who in error collects an amount as if it were social service tax must remit that amount to the commissioner.
SECTION 67: [Social Service Tax Act, re-enacts section 102] deems that an amount collected in error by a person as if it were social service tax, is held in trust for the government separate and apart from his or her own money and other funds.
SECTION 68: [Social Service Tax Act, re-enacts section 105] simplifies the section and provides that it applies to proceedings for the recovery of all amounts owing under the Act.
SECTION 69: [Social Service Tax Act, amends section 108 (1)] amends the definition of "taxpayer" to include the person described in the new section 93 (1.1).
SECTION 70: [Social Service Tax Act, amends section 115 (4.1) and (5)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
SECTION 71: [Social Service Tax Act, amends section 117 (2)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
SECTION 72: [Social Service Tax Act, amends section 123] rationalizes offence provisions under the Act.
SECTION 73: [Social Service Tax Act, repeals section 128 (3)] is consequential to amendments to section 123 of the Act.
SECTION 74: [Social Service Tax Act, amends section 138]
Taxation (Rural Area) Act
SECTION 75: [Taxation (Rural Area) Act, amends section 11 (3)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
Tobacco Tax Act
SECTION 76: [Tobacco Tax Act, adds section 2 (12)] requires that a person who in error collects an amount as if it were tobacco tax must remit that amount to a director or the minister.
SECTION 77: [Tobacco Tax Act, repeals and replaces section 6 (4)] permits the director to require that any applicant for a dealer's permit deposit security.
SECTION 78: [Tobacco Tax Act, enacts section 12.1] authorizes the director or a delegate to demand information required for the purpose of administering or enforcing the Act.
SECTION 79: [Tobacco Tax Act, amends section 22] establishes that the penalty imposed includes interest on the amount payable.
SECTION 80: [Tobacco Tax Act, amends section 23 (1) (f)] gives the right of appeal to a person disputing a refund under section 12 (4).
SECTION 81: [Tobacco Tax Act, re-enacts section 28] establishes that a person who in error collects an amount as if it were a tax under this Act is deemed to hold that amount in trust for the government, and if that amount is not paid to the government, there is a charge on the person's assets equal to the unpaid amount.
SECTION 82: [Tobacco Tax Act, re-enacts section 29] simplifies the section and provides that it applies to proceedings for the recovery of all amounts owing under the Act.
SECTION 83: [Tobacco Tax Act, amends section 35 (2)] provides that interest must be calculated in the manner prescribed by the Lieutenant Governor in Council.
SECTION 84: [Tobacco Tax Act, amends section 37] permits the director to require a dealer to post a bond even if the dealer has complied with the Act. The director can realize on a bond for unpaid security and interest as well as for unpaid tax. Where the dealer experiences a change in circumstances, the director is entitled to vary the amount of the bond.
SECTION 85: [Tobacco Tax Act, amends section 39]
(a) rationalizes the offence provisions under the Act;
(b) changes "50 cartons of cigarettes" to "10 000 grams of tobacco".
SECTION 86: [Tobacco Tax Act, amends section 40] changes 5 cartons of cigarettes to 1 000 grams of tobacco in section 40 (3) and adds a new provision stating that if a person keeps more than 1 000 grams of tobacco that is unmarked, it is prima facie evidence that the person is keeping the tobacco for an unlawful purpose.
SECTION 87: [Tobacco Tax Act, amends section 44 (2)]
SECTION 88: [Tobacco Tax Act, re-enacts sections 47 and 48] expands the search and seizure powers to include anything that will provide evidence of an offence against the Act.
SECTION 89: [Tobacco Tax Act, amends section 49] simplifies and clarifies existing wording of section 49 (1).
SECTION 90: [Tobacco Tax Act, repeals and replaces section 50 (1)] expands the seizure powers to permit seizure of records or other things that will provide evidence of an offence against the Act.
SECTION 91: [Tobacco Tax Act, amends section 51 (3)] changes 5 cartons of cigarettes to 1 000 grams of tobacco.
SECTION 92: [Tobacco Tax Act, amends section 52 (1)] adds a reference to section 48, as that section authorizes seizures of tobacco, records and other things.
SECTION 93: [Tobacco Tax Act, repeals and replaces section 53 (1) and (2)] extends the amount of time that something seized under section 52 may be detained.
SECTION 94: [Tobacco Tax Act, amends section 54] amends section 54 to refer to seizures made under section 48.
SECTION 95: [Tobacco Tax Act, amends section 58 (3)] changes the reference in section 58 (3) from "5 cartons of cigarettes" to "1 000 grams of tobacco".
Waste Management Act
SECTION 96: [Waste Management Act, amends section 57] provides authority to make regulations respecting rebate of fees or charges under the Waste Management Act to foster expenditures in environmentally advisable projects or purposes.
British Columbia Ferry Corporation Debt Extinguishment
SECTION 97: [Extinguishment of debt] extinguishes the debt owed to the government by the British Columbia Ferry Corporation.
Hydro Rate Freeze
SECTION 98: [Hydro rate freeze] extends the freeze on hydro rates until September 30, 2001.
SECTION 99: [Transitional -- regulation making power] allows regulations to be made retroactive to April 1, 2000.
SECTION 100: [Transitional -- references in enactments of British Columbia] provides for references in enactments of British Columbia to be read as references to the new terms in the Canada Customs and Revenue Agency Act.
SECTION 101: [Transitional -- references in documents issued by government of British Columbia] provides for references in documents issued by the government of British Columbia to be read as references to the new terms in the Canada Customs and Revenue Agency Act.
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